We Are Capitalists

Robert Reich Knows Nothing About Economics

Economist Robert Reich, former labor secretary for President Clinton, recently posted a video called “Three Myths of the Economy”. In it, he attempts to debunk three “myths” about how our economy works, suggesting that acceptance of these myths leads to socio-economic injustice. Here are his claims and my rebuttals. (more…)

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Here’s Why Salads Cost More Than Burgers

Misleading Claim: “An unhealthy hamburger costs $1, but a healthy salad costs $5. Greedy capitalists are making our kids fat!”

Reality: Producers do not sell goods at arbitrary prices based on profitability or the desire to make people fat. In fact, prices are carefully calculated by consumer value/demand and external factors, such as subsidies. We can debunk this claim with thought experiments and an analysis of the U.S. farm price support programs. (more…)

Government Programs Perpetuate Racial Disparity

Pundits often claim that racial disparities in the United States are the result of racist capitalism and freer markets. While they are certainly correct in observing socioeconomic disparities, they often attribute said disparities to a lack of government intervention. But as we’ll demonstrate, from poverty and income to unemployment and education, many things have actually gotten worse for blacks since the interventions of the 1960s. “Racism” is a politically convenient excuse that undermines millions of people and seeks to absolve politicians from their failed programs. But as you’ll see, it has actually been government intervention that perpetuated these racial disparities, not free market capitalism. (more…)