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Welcome to Keith Knight. 
Don't tread on anyone in the 

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Libertarian Institute. 
This is a section from Why It's 

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OK to Mind Your Own Business. 
On many measures, right now is 

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the best time to be alive in 
human history. 

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Look back just 200 years and 94%
of the world's population was 

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living in extreme poverty, the 
inflation adjusted equivalent of

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less than $2.00 a day in 
purchasing power. 

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There was nothing remarkable 
about the human condition 

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addition 200 years ago. 
We had always been poor. 

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I got to say some of those 
cathedrals were absolutely 

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remarkable. 
What is remarkable is the human 

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condition now. 
Today, less than 10% of all 

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humans live in extreme poverty. 
Over the same period, the 

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literacy rate jumped from 12% to
86 percent. 43% of people died 

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before their 5th birthday in 
1820. 

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Now less than 4% do. 
Our world has improved so 

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drastically because in the past 
200 years we have enjoyed an 

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unprecedented explosion in 
economic growth. 

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If you're reading this book, you
might not agree, but you're 

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probably fabulously wealthy 
compared to almost every other 

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human who has ever lived. 
The news is not all good, of 

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course, and we don't intend or 
need to defend every part of the

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story that got us here. 1 
unfortunate feature of this 

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sudden emergence of affluence is
that some regions of the world 

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haven't developed as quickly as 
others and so have been left 

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behind. 
It is popular in some circles to

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blame this disparity, which 
scholars call the Great 

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Divergent, on colonialism or 
other forms of exploitation of 

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developing countries by rich 
Western ones. 

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But wealthy societies did not 
get rich by extracting their 

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wealth from elsewhere. 
Rather, they did so by becoming 

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more productive and thus 
creating more wealth. 

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I should look into the history 
of how this colonialism caused 

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poverty in 3rd world countries. 
I guess the theory is that 

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places like Africa had like 
airplanes and really big 

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buildings and they had cell 
phones and they had computers 

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and they had printers and they 
had air conditioning and they 

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had plumbing systems and really 
tall, beautiful buildings. 

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And then the Europeans went over
there, stole all that stuff, 

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brought it back to Europe and 
America and you're and Africa 

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has not rebuilt since. 
If it's just the natural 

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resources that were stolen, 
well, the lesson could be let's 

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stop violating the non 
aggression principle and apply 

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that to governments today. 
But if the claim is that the 

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natural resources were stolen, 
that doesn't explain how those 

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resources existed since The Big 
Bang occurred. 

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You actually need intellect and 
human capital. 

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If I gave you a barrel of oil in
the year 1700, you wouldn't know

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what to do with it. 
But with refinery methods, you 

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can get it to run a car and get 
people across the country. 

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So even the resource, the 
extraction doesn't address the 

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human capital. 
The division of Labor, the 

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importance of free trade, the 
importance of competition and 

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free market innovation book 
continues. 

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We emphasize this point because 
for purposes of seeing what good

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has been done and bringing us to
our contemporary condition, it 

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is important to understand that 
the rich did not simply take 

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what they have from the poor. 
The world economy is a positive 

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sum game, not a 0 sum game. 
The pie got bigger, much bigger 

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again. 
Did the poor have yachts and 

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mansions and then they were 
stolen or, well, their labor was

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exploited? 
As if there weren't people 

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engaged in slavery in the days 
of Hammurabi. 

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Hammurabi's code, the code of 
Urnamu, found thousands of years

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ago in ancient Mesopotamia, 
Labor exploitation and some 

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people confiscating wealth from 
others, has existed since the 

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beginning of time. 
But it's, you know, favoring 

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innovation, supporting free 
trade, respecting private 

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property, engaging in voluntary 
contracts. 

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That's actually how places like 
Singapore went from completely 

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impoverished when, you know, my 
mom was born. 

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And today, they're one of the 
wealthiest countries on the 

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planet per capita. 
Now, how has this process of 

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enrichment happened, and what 
does it have to do with meaning?

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Well, as economist Deirdre 
McCluskey writes, Once Upon a 

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time we were all poor. 
Then capitalism flourished, and 

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now, as a result, we're rich. 
Of course, capitalism is only 

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part of the story. 
A lot of other pieces of a 

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complex puzzle had to fit 
together just right for the 

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Industrial Revolution to happen 
and spark an explosion of a 

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economic growth. 
But capitalism is the element 

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that allows us to explain this 
example of how people can do a 

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lot of good without meaning 
well. 

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Very important lesson when you 
look at someone like Cornelius 

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Vanderbilt who drastically 
improved people's access to 

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steamship travel and travel by 
railroad. 

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People used to not be able to go
far distances, or the few people

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who could were kings and Queens.
But Vanderbilt drastically 

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lowered the price of steamship 
travel from 7 dollars to six 

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cents. 
Not because he was a nice guy, 

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but because he knew that he 
wanted to make more money so he 

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created a product that more 
people could buy. 

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Amazon does not only sell 
products to the 1%, they sell to

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the masses so they can make more
money, which gives the average 

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person access to more products 
and services they ever could 

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have imagined. 
Same with Sam Walton in creating

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Walmart. 
More job opportunities and more 

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products and services that 
people have access to. 

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Andrew Carnegie drastically 
lowered the cost of steel, not 

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because he was such a kind, 
virtuous person, because that's 

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where the money was. 
He had competitors. 

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He couldn't just charge a 
trillion dollars per ounce of 

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silver. 
John D Rockefeller drastically 

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lowered the cost of oil 
production and the ability for 

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people to work and exchange the 
dollars they earn at work for 

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oil, referred to by Marion TUPE 
as Time Price, this is a much 

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more effective way to measure an
economy's wealth as opposed to 

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gross domestic product. 
What TUPE does is he basically 

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says, let's look at the number 
of hours a person had to work to

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achieve access to one night at a
motel in 191019401990 and 2024. 

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How many hours of work did you 
have to do to access a movie? 

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When I was younger, movies were 
just something you would go to 

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at the theater. 
You'd have to save up and spend 

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two or three or four hours of 
Labor on watching a movie. 

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Now there's like 10 billion 
movies for free on YouTube. 

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You have access to more content 
at 0 cost, 0 monetary cost then 

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certainly better than anything 
the mass murdering government 

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provides. 
But capitalism is the element 

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that allows us to explain this 
example of how people can do a 

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lot of good without meaning 
well. 

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Steve Jobs is another example. 
Drastically increase people's 

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institutional power in their 
life, their ability to 

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communicate with other people 
across long distances, the 

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institution of private property,
the rule of law, a price system,

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and highly specialized division 
of Labor, and allowing people to

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freely trade, for example, all 
work together to create a 

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positive sum game in which the 
size of the pie of wealth 

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increases dramatically. 
We are not claiming that 

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capitalism is perfect, but it is
ingenious in this one respect. 

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It harnesses the human tendency 
to pursue our own self-interest 

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and not only renders it mostly 
harmless, but also directs it to

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promote the good of others. 
So when we think about the 

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concept of self-interest, if 
human beings are self 

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interested, well, giving them 
access to a government is not 

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going to change it. 
They're still self interested. 

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So what you'd want to focus on 
are the incentives people face 

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given all human beings are self 
interested. 

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For those who don't believe all 
humans are self interested. 

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Anyone who has watched 
television instead of gone out 

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and built houses for the 
homeless and fed the starving 

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people. 
Any time you engage in leisure 

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activities as opposed to helping
people in Malawi get food, well 

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that's because you're self 
interested. 

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You care more about yourself. 
All humans are self interested. 

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So given this inevitability, 
what set of systems or 

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incentives would we want to set 
up that make it so people can 

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harmoniously pursue their 
self-interest 'cause if there's 

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socialism, if you have any 
degree of state action in a 

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society, then I am able to 
increase the amount of resources

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I get by having the state issue 
taxes, issue regulations on my 

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behalf at the expense of you 
without your consent. 

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Under free markets, you can't 
get a penny out of my pocket or 

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a second of my time unless I 
voluntarily give it to you. 

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That's what the authors mean 
when they say they're harnessing

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the self-interest. 
They make it so they comple. 

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The self-interest actually 
complements one another. 

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And that's how wealth is created
through positive sum exchanges, 

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whereas the state creates 0 sum 
exchanges. 

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So imagine Northrop Grumman 
trying to get as rich as they 

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are if they had to voluntarily 
raise money. 

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How much money could Barack 
Obama have raised voluntarily 

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for his nice little invasion of 
Libya along with the Libyan 

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Islamic Fighting Group to take 
down Moammar Gaddafi? 

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Probably could not have raised 
that money voluntarily, but he 

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had access to a state which 
allowed him to pursue his 

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self-interest and the interest 
of his advisers at the expense 

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of everyone else. 
No one had the right to opt out 

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of funding this. 
You try opting out, the police 

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are going to put you in a cage 
and shoot you if you resist. 

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Socialism is anti collective, 
it's anti community. 

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Capitalism and free markets are 
pro cooperation, pro community 

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and pro harmonious relations 
with others. 

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As Adam Smith writes famously in
The Wealth of Nations, it is not

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from the benevolence of the 
butcher, the Brewer or the Baker

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that we expect our dinner, but 
from their regard to their own 

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interests. 
We address ourselves not to 

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their humanity but to their self
love and never talk to them of 

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our own necessities but of their
advantages. 

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So in other words, all the 
restaurants we have access to or

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not, because people said we got 
to build something, everyone has

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to get on the job training and 
we have to come to work because 

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Keith Knight needs to eat. 
All these people at every level 

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of the process for building 
restaurants, for building 

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supermarkets. 
They were engaged in mutually 

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beneficial voluntary exchanges 
while they were pursuing their 

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self-interest, which allowed me 
to access the products and 

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services that they developed. 
Under the capitalist system of 

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free exchange, we can be useful 
to others without caring about 

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them at all. 
Many of us do it every single 

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time we go to work, buy 
something from a store, pay our 

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mortgages, or perform any other 
economic transaction we enter 

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into voluntarily because it 
helps us achieve our ends. 

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This is a very good point 
because it's not just that the 

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free market libertarian position
is that it's the capitalists who

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create value and no one else 
does. 

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It's anyone engaging in mutually
beneficial voluntary exchanges. 

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So whether it's a take a cashier
who voluntarily has a job, the 

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reason that the company is 
giving this cashier a portion of

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the scarce money that they have 
and allowing them to represent 

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their store and, you know, 
develop the reputation for the 

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company is because they see him 
as a valuable asset to the 

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organization. 
If they don't like him, they can

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fire him. 
If he doesn't like them, they 

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can quit. 
So there's this sort of general 

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move towards pleasing people who
you're in these exchanges with, 

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whereas the state has no 
incentive to provide good 

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schools because you have to pay 
them. 

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This would be just like if a 
company got your money 

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involuntarily or voluntarily. 
Wouldn't make a difference. 

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Obviously it makes a huge 
difference because they're not 

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on their toes trying to please 
consumers. 

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That's why everything the state 
creates is absolute trash. 

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But when it comes to they 
conflate low status jobs with 

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not creating value. 
Cashiers create a hell of a lot 

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more value than any rich elitist
like James Clapper who advocates

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the Russiagate conspiracy 
theory, or any psychopath like 

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Ibram X Kendi, the absolute 
fraudster who believes in the 

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racism conspiracy theory. 
These people are far more 

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parasitic, and it has nothing to
do with the high status or low 

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status of someone's job. 
It has to do with whether or not

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they're engaged in mutually 
beneficial voluntary exchanges. 

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That's how you know it's 
beneficial if people, when given

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the choice, choose to interact 
with them. 

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That's why the left basically 
hates school choice, because 

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they know that no one's going to
voluntarily choose to fund or 

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attend their horrific schooling 
systems where they try to turn 

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boys and the girls for 12 years.
On the other side of these 

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transactions is another person 
doing the same thing who also 

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need not care about us. 
The vast majority of our free 

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exchanges result in both parties
walking away better off than 

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they were before. 
It may be impersonal and 

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sometimes even alienating. 
As opposed to the mass murdering

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government. 
Send us 40% of your income every

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April 15th. 
We'll put you in a cage if you 

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don't. 
And if you try to resist us, 

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we'll blow your head off in 
front of your kids. 

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Is that alienating? 
Is that joyful, as the Vice 

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President would like us to 
believe? 

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There's nothing more alienating 
than socialism, but the result 

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is an overall improvement in the
human condition that no other 

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form of economic organization 
can come close to equaling. 

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Capitalism has become unpopular 
in recent years. 

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The state monopolizes and 
coercively funds compulsory 

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education. 
K through 12, then start 

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subsidizing colleges. 
Yeah, In recent years, 

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generation after generation, if 
the Catholic Church was allowed 

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to coercively fund Catholic 
Church schools and they mandated

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attendance of all children aged 
5 to 18 to these Catholic 

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schools, saying we're going to 
put parents in jail for 

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00:15:30,800 --> 00:15:33,880
violating truancy laws if you 
don't send your kids to Catholic

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school church, Would you be 
like, there's been a decrease in

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00:15:37,080 --> 00:15:40,200
Protestantism recently, 
obviously. 

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What did you think? 
Capitalism has become unpopular 

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in recent years in a way that it
hasn't been in the West at any 

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other point in our lifetimes. 
We are aware that some of our 

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00:15:51,800 --> 00:15:55,280
readers will find this entire 
example example highly off 

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00:15:55,280 --> 00:15:57,840
putting, so let us make this 
point explicit. 

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We are not saying that 
everything people do in response

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00:16:00,840 --> 00:16:04,800
to the incentives a capitalist 
economy puts in front of them is

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kind or fair or pretty to look 
at. 

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On the contrary, it is often 
mean, heartless, and ugly. 

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But enough about Liz Cheney. 
But it is also the best way 

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humanity has discovered of 
allocating resources efficiently

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and using them to produce good 
outcomes. 

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And it works because it 
economizes on good intentions. 

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Thus, it turns out people can do
a lot of good without caring 

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00:16:34,880 --> 00:16:38,320
about it one bit. 
People don't have to mean well 

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if the system they live under 
appeals to their selfish nature 

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00:16:42,000 --> 00:16:46,720
to trick them into doing good. 
Anyway, thanks to everyone for 

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00:16:46,720 --> 00:16:48,920
watching Keith Knight Don't 
tread on anyone in the 

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00:16:48,920 --> 00:16:50,040
Libertarian Institute.
