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Socialism vs Capitalism - Which system is better? - YouTube
Channel: Let's TEACH
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- [Narrator] Hey everybody,
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welcome to the Let's TEACH channel
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where we research interesting facts
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and share information
on just about any topic.
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In a previous video,
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I focused on explaining
what socialism's all about.
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You should check that video out.
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In this video I'll talk
about the difference
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between socialism and capitalism.
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Let's get started.
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Conversations today have
increasingly been dominated
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by the term socialism and capitalism,
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given the recent elections and
the COVID-19 global pandemic
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and other current events.
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The topic is certainly polarizing.
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However, there are a lot of people
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who don't really understand
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what these economic systems involve.
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So what are they really?
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What is capitalism?
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Capitalism means low intervention.
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Governments don't really get to decide
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what their industries produce,
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how to produce, when to
produce it, and the like.
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This means that the cost
of goods and services
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are determined by the
people and by market forces.
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If company X says that the
price of their products is Y
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then no one can tell them otherwise.
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In the simplest of terms
businesses are private
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owned by private individuals or companies,
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and not by the government.
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This type of economy breeds
entrepreneurship and innovation.
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If there's a gap in the market
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then people rush in to fill it.
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More than that though
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it's dictated by the law
of supply and demand.
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If consumers are demanding a certain item
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then companies will
increase their production
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to meet it which in turn
increases its price.
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Perhaps the most contentious thing
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about a capitalistic
economy is how unconcerned
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It is about equity.
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In fact, some even say that
it encourages inequality,
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arguing that this is essential
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to innovation and development.
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According to the 2019 index of
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Economic Freedom World Rankings,
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the current top 10 most
capitalist countries
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are the following.
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Number one is Hong Kong.
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Number two is Singapore.
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Three is New Zealand.
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Four is Switzerland.
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Number five is Australia.
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Number six is Ireland.
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Number seven is United Kingdom.
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Number eight is Canada.
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Number nine is United Arab Emirates.
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And coming in at number 10 is Taiwan.
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Increasingly the United
States ranks 12th on the list
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due to its massive government spending
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and overall poor fiscal health.
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Its tax burden is also
considered to be weak
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due to how it limits taxpayer freedom.
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However, its advantages
include strong freedom
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when it comes to labor,
business, and trade.
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So what is socialism?
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On the other hand, the
government plays a huge role
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in a socialist type of economy.
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They control or even own
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the majority of the country's resources
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which means that they get
to decide what is produced,
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how it's produced, and when it's produced.
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An approach that is often referred to as
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centralized planning.
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The government is also the
one who sets the prices
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of goods and services.
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Although this can sometimes lead
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to either extreme shortages
or extreme surpluses.
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Socialism is hinged on equality,
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which is why it redistributes resources
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to ensure that the and the poor
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both receive equal opportunities
as well as equal outcomes.
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The focus on equality is perceived by many
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to be the primary advantage of socialism.
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For them shared ownership of resources
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and the effect of social planning
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means a fair and more just society.
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However, its critics argue
that this actually leads
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to inefficiency since
people lack the motivation
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to innovate and to cut costs.
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They often referred to a
joke under Soviet Communism.
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They pretend to pay
us, we pretend to work.
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According to an article from The Balance
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the following four countries
proclaim themselves
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to be communists yet have
aspects of socialism.
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Cuba, Laos, China, and Vietnam.
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The last two in particular have
strong, free market economy
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despite their governments being controlled
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by their respective communist party.
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Well, what are your thoughts on the topic?
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Do you prefer one system over the other.
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Let's talk about it in the comments below.
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Don't forget to like the video
and subscribe to the channel.
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And remember what's
learned here, leaves here
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share something you learned about
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socialism versus capitalism with a friend.
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See you later.
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