What’s Wrong With Capitalism: ContraPoints Doesn’t Understand Consumer Demand Part 1

What’s Wrong With Capitalism: ContraPoints Doesn’t Understand Consumer Demand Part 1


So I was recently recommended to check out
a YouTuber called ContraPoints and their critique on capitalism. “When you look into the pools
of the 9/11 memorial at the world trade centre, you start to ask yourself questions: why is
the world bad?” I don’t think that ContraPoints acknowledges or understands the real world,
although they mean well and they have such good intentions and stuff like that, their
intentions have disastrous consequences. There just is no such thing as perfection. You’re
always going to have good and bad people in this world and so it’s the same with politics
and economics, there’s no such thing as this perfect system, you’ve always got corruption
and exploitation. So, it’s all about how you limit these problems, that’s what it’s down
to, it’s a question of: what system best works to limit these problems of things like exploitation,
of corruption, of crime, etc, etc. “What did all these people die for? For freedom I guess
and like, American values, but what are those values, what kind of freedom is it that we
have?” It’s kind of difficult to say in today’s standards because across the United States
everybody has their own view of the way things should be, you know, you’ve got a group of
people who believe in socialism and you’ve got a group of people who believe, you know,
in conservative values and then you’ve got those who believe in Libertarianism like myself.
It’s true to state that what America was founded off of was defending individual rights and
individual liberty and the reason being, you’ve got the constitution there as evidence; to
become the United States, what they fought for was basically the freedom from British
mercantilism. British mercantilism was basically an old type of corporatism. In other words,
you saw the Sugar Act of 1764; the Stamp Act of 1765; the Townshend Act a year later, which
was basically a replica of the Stamp Act and then in 1773 the British tried to impose the
famous Tea Tariff and these protectionist Tariffs is all part and parcel of this protectionist
anti-capitalist system, of course, mercantilism in Britain and so, this is what the American
people were fighting against, it was actually the American capitalist merchant class who
formed the Boston Tea Party to spark what was, of course, the American Revolutionary
War. “The 9/11 memorial shares the world trade centre site with the largest shopping mall
in Manhatten; there’s a Forever 21; an Under Armour; a Kate Spade and a pair of shoes that
I want, but they’re too expensive and my feet are too big and I’m too tall to wear high
heels anyway, ugh!” This particular individual does not understand about prices; does not
understand what profits are, most importantly, you’ll find that, you know, ContraPoints doesn’t
understand what capitalism is. Immediately into this person’s video they have touched
upon this shopping mall in New York, now New York is somewhere that we know is very expensive
and the United States of America today is strongly corporatist and I mean, the entire
private sector across the American economy is over regulated. “Just to put it into perspective,
we have $2 trillion in regulation every year and fraud and waste costs us another trillion
dollars.” “Well the regulation, I was talking to one business man who is so frustrated he
gave up one of his business proposals because he says it’s like trying to run through thick
walls of molasses, it’s the most frustrating thing in the world and coming out of the recession,
yes it was a bad recession, but you don’t come out of a recession by making it more
difficult to do businesses, we increase the regulations coming out of this recession.”
“I mean, there is no doubt about it and just take the IRS; 74,000 pages of regulation,
that’s 3 stories high.” The deregulation that was carried out under Ronald Reagan was so
minute on the grand scale of things that it barely even touched, you know, it was like
a drop in the water of the ocean, you know, that’s basically what it was like. Yes, he
did carry out some deregulation, it’s the same with this Donald Trump. Donald Trump
would have carried out deregulation but it’s nothing like as if to say: “Oh well, we’ve
moved somewhere from, you know, this extremely high government regulated economy to this,
you know, low level government regulated economy” because that just is not the case. What ContraPoints
is saying is that, you know, you’ve got this shopping mall, you’ve got all these big named
stores and this is the key point here, right? They’re these big named stores, big brand
names, right? ContraPoints questions why a pair of shoes in the window is too expensive.
That’s like me going to somewhere like Fraser’s on Buchanan Street in Glasgow, the type of
store that sells a £500 tie or a £400 belt or something, just ridiculous prices that
you kind of think to yourself: “who the hell would waste their money on such crap when
you can get the same thing cheaper for elsewhere?” That’s the point that this particular individual
has just missed out. No doubt the same pair of shoes somewhere else, although not brand
name, you could probably get just as good, if not better, a good pair of shoes without
the brand name in some store elsewhere in the city for far cheaper and for just better
value. But this is the other point because like I mentioned, the United States is sitting
under this massively corporatist system, right? It’s not a capitalist system. This particular
individual, ContraPoints, has more or less painted it black and white, as if to say:
“capitalism is corporatism.” No it’s not, it’s not even remotely the same thing, it’s
anti-capitalism and there is a strong difference between that of political entrepreneurs and
market entrepreneurs, for example, and I’ve gave out examples in the past of the difference
between your Edward Collins to that of your Cornelius Vanderbilt, or for example; the
difference between what the North Pacific Railroad company was like to that of someone
like James J. Hill. If you are against the free market system, you are not in favour
of a capitalist system, it really is as simple as that. It doesn’t matter if you come out
and say, you know, somewhere along the argument that: “Oh well, this will always happen or
that.” Well, at the end of the day then, you’re not in favour of a capitalist system because
the capitalist system is about individualism and I have pointed this out to you folk umpteen
times, the definition of individualism is so clear, it basically simply means; the separation
of the economy from government intervention where individuals are free to pursue their
own economic goals and paths and are free to go and choose what they wish to do; if
they wish to go and work in a collective group and work together or work in some business
working for some other company owner, that’s their free choice, or if they want to go and
start up their own private business, that’s their own free choice. So this is the point.
The other thing that I wish to address here is the fact that prices are signals and this
is another thing that ContraPoints, like I say, this person means well, they have all
these good intentions and stuff, but they don’t seem to understand, individuals like
this don’t seem to comprehend that prices are signals, they’re not obstacles to getting
things that you want. So, the higher price in the market can be a signal there in the
market to say: “here is where there is a shortage.” But it may not particularly be that, it might
be a case that, you know, let’s say those pair of shoes in the shop window were about
$400 or something like that and you’re kind of thinking to yourself: “Oh, it’s too expensive
for me,” but, you know, at the end of the day, the company gets away with charging that
price because, obviously they’re able to sell it to a specific market, that’s that businesses
own free choice. When you start up a private business, you have to think about your niche,
your niche, what’s your demographic, who are you going to sell to, right? It was that private
company’s owner, sorry, it was that private company owners choice over who their market
was going to be. That particular individual who runs that particular business obviously
aimed at a market that was higher priced, aimed at people who have money, so, for example;
a company like Fraser’s, right? Producing £400 belts, etc, this is obviously a company
that’s high end, that’s producing high priced items with this brand name, etc and selling
to the wealthier type of people, that was their niche in their market. You have to plan
out, you know, who are we producing for, are we producing for the elderly, are we producing
for the younger? There’s many issues regarding who your niche is going to be, but this is
it, who are you producing for? Is your business aimed at people who are rich, is it aimed
at people who might not be able to afford the same? You see, all of these things you
have to take into account. This particular individual has completely ignored the fact
that there’s so many hundreds of other stores out there that sell similar items for much
cheaper for a cheaper end of the market and aim at a different niche. The point being
here is the fact that this individual who runs the big end store, that’s their free
choice over what they wish to do, if they wish to out price the average consumer, that’s
their free choice. I can actually give you a prime example and I don’t care if people
slag me for it or not because I’m not one of these people who gives a damn about all
these brand names, oh, it has to be Levi’s or it’s all: “Oh it has to be such and such,
it has to be Fred such and such.” I don’t know all these brand names because I don’t
care, all that nonsense doesn’t mean anything to me, see if something looks good and I would
like to wear it and it cost about £10 I would still go out and buy it. There are companies
out there like that, Matalan is a company much like that, it sells some pretty decent
clothes for you know, a relatively far cheaper price that goes on sale. But here’s the other
thing you have to take into account, is the very fact that, see if a company does set
a higher price and let’s say the product is not selling, that forces the company to reduce
their costs. Another issue here is that, like I said, prices are signals and the higher
price can signify there’s a shortage. So what does that incentivise? It incentivises: a)
It might be a case where the consumer shops elsewhere so that they’re not overspending
on a particular, you know, item that is scarce, right, because resources are scarce, or, let’s
say for example the resource isn’t as scarce, it can incentivise the producer to produce
more in order to bring the price down and what you tend to find is that over time the
price drops and you even find that when you go from like summer and you move into the
autumn and then winter, the summer clothing begins to drop in price, this is, you know,
what happens, prices fluctuate in the marketplace. So, anyway, I could go on a whole tangent
about that because it’s complex and its not as simple as just someone staring at something
and saying: “Oh, they’re so greedy they just rammed up the price.” But like I said, this
particular individual is ignoring the many countless other options out there that has
actually benefited to people’s material standards of living.

22 Comments on "What’s Wrong With Capitalism: ContraPoints Doesn’t Understand Consumer Demand Part 1"


  1. Just note that Contrapoints is also in league with Bad Mouse Productions and Libertarian Socialist Rants.

    Reply

  2. Good video, but you should probably stop using the term “capitalism” and just use the term “free market” or “liberated Market”. Capitalism is a anti-concept.

    https://youtu.be/-QsbvE_0Kpc

    Reply

  3. All this commie nonsence along with hate speech etc is a sure sign of the national iq dropping, people dont understand basic concepts such as free speech. Im always trying to explain to people about overpriced goods just being a way to help relieve the better off of some of their money but most people just get envious and annoyed.

    Reply

  4. You've spent the first seven minutes of this video so far picking apart her tongue-in-cheek complaints about being too poor to afford expensive shoes…

    Reply

  5. Scotty M I am debating minimum wage supporters on the comments section of Vox’s min wage video. The arguments I hear are minimum wage adjusted for inflation works in other countries, Scandinavian countries have a de facto minimum of 20 an hour and are an example of Keynesian economics and the new Berkeley study on minimum wage in Chicago showed no negative effects. I have already dealt with most of these arguments but I can use some additional help.

    Reply

  6. Glad to see you back making videos. Always loved your content. It is reassuring that libertarian views and principles continue with those younger than myself.

    Reply

  7. The tax code is so massive, you could commit suicide by climbing on top of it and jumping down.

    Reply

  8. Can anyone recommend a book for explaining Capitalism and how to get a great understanding of it so I don't fall into falsehoods like Contrapoints?

    Reply

  9. I use to watch your videos when I was in high school, you look like you lost weight since then. You look handsome.

    Reply

  10. Capitalism killed the family in the USA and Europe
    https://www.patheos.com/blogs/cosmostheinlost/2015/07/09/chesterton-capitalism-killed-the-family/#comment-4519520871

    Reply

  11. Glad to see a response that doesn’t make personal attacks against the other person. Anyway, I think you may have misunderstood her point. The critique wasn’t that there are masses of expensive items in circulation, it was that capitalism, or as I think you say more specifically, corporatism, inevitably results in mass wealth inequality. It’s not a point about items being too expensive. It is that money is hoarded by a small group of people and allocated towards making more money. That’s what is “wrong” with capitalism.

    Reply

  12. I don't think Nataly is just such a dummy she doesnt understand there is no such thing as protection.

    Reply

  13. 3:25 i Guess it was More of a joke, specially by the whiny/diva persona she tends to give vibes of

    Reply

  14. Guy, I'd like you to come into contact with her actual ideas, and not just bumbling over everything she says.

    Reply

  15. Contra is relatively a good person, but she can be confused and somewhat arrogant at times, so please forgive her

    Reply

  16. Those three aren’t the only positions, you also have your ethnic nationalists, your Christian, and Muslim communities and groups that want The lgbt communist executed (The NIFB is a Baptist organization that advocates for the execution of the LGBT community and anyone who supports us, as well as Catholics), so the opinions go far from just those three political ideologies

    Reply

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