Capitalism vs. socialism: What does a real socialist system look like?

Channel: Fox Business
Published: 05/13/2019 12:28 PM

FBN's Jackie DeAngelis breaks down the differences between capitalism versus socialism. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. Headquartered in New York — the business capital of ...

And we want to look at the emerging theme going into 2020 for politicians and business leaders - capitalism versus socialism all week this week on fox business. We are taking a closer look at this debate and this morning we lay the groundwork explaining what a social system really looks like joining the conversation. This morning, the wall street journal's assistant, editorial page editor, james f ...
eeman and pwc partner, mitch, rochelle jackie deangelis, breaking it down for us. First though, jackie good morning great to see you guys, you too. So this is a conversation. That'S gon na be having the network all week and it's something we've been talking about the way i look at it is like this. 10Years ago a few said we were gon na. Have a socialist candidate on the platform. People would have looked at. You, like you, were literally absolutely crazy. Now, it's a serious part of the conversation and it's gaining momentum in terms of the dialogue, steve pearlstein, washington, post business columnist said this in his book. His book is called ken america.

Can america's capital doesn't survive a decade ago decade ago, quote 80 % of americans agreed with the statement that a free market economy is the best system. Today it's 60 percent lower than in china. One recent poll found that only 42 percent of millennials supported capitalism in another. A majority of millennials said they'd actually rather live ina socialist country than a capitalist one. I mean that's really astounding when you think about it and you turn back and say: do people really understand what it is that they're talking about here? The difference is, let's actually review them for the people watching at home, so capitalism versus socialism, private ownership versus government ownership, individual goals versus the collective goals right high competition, low competition, individual wealth versus wealth shared by all. I think one of the best examples is health care in this country, sort of the closest that we've even come to having the conversation implementing the reforms, people actually didn't get what they wanted. They ended up paying more. They ended up not beingable, to see the doctors that they were seeing previously. It had a tax on small business in terms of their costs rising as well. So, if you continue to so, you know to sort of change the system to implement these reforms. The question is, you can distribute the wealth that we have now, but can you keep the engine going to further push the ball forward further, take care of everybody in the american system and remember we have a big population. We one of the wealthiest countries in the world for the people that we support, but at the same time you have to keep that going and - and those are the themes that we're going todiscuss we're going to talk about innovation.

We'Re going to talk about the kind of developments that come out of this country, that the work that the corporation's here are doing, because they're incentivized to do it and really you know, lay it out so that the people that are on the side of the socialist System or do you want to see that kind of reform really understand what it is they're getting into it's an extreme case, but venezuela is a good example. It'S a great analysis. Jackie really really well done, and you know right now, you're seeing some capitalists who made all their money in the capitalist free enterprise system, writing, essays and and and andremarks about how capitalism needs to change james. So even those capitalists who enrich themselves over a twenty thirty year period are now questioning the very system that got them there. Yeah. It'S disturbing, i think part of it is that there's been a lot of misinformation of one on the inequality front. A lot of these measurements that say it's so horrible, it's growing it's worse than it's ever been. They don't consider after tax after government benefit levels of income, which is really what matters once the government is through redistributing wealth. What is the income level? And you look at those measures. They maybe haven't changed all that much over time. But look inequality is part. Ofwhat makes capitalism work if there's not a reward for doing more for innovating for creating the new invention.

You don't get those inventions you mentioned venezuela, i mean how many great inventions have come out of venezuela in the last day. By the way, i would even say i would even point that to europe how many great innovations have we seen coming out of europe? What italian company, what spanish company can you name that are in the top you know hundred or fifty in terms of innovators in in technology and biotech medical? You know we all should consider mitch is the fact that capitalism and the free enterprise system, particularly in the last couple of yearsas economic growth, has picked up, has lifted so many out of poverty. Yeah no question about it when you put capital at risk, no matter how small it is, you create wealth, perhaps if you're successful, but if you are successful, one of things you create is jobs, and i think the thing that's lost in a lot of this debate Is that putting capital at risk is the things that creates jobs and creates wealth, not just for the president, but the capital at risk, but for those who are employed and income inequality is something that's clearly debated, but i'm with james. You have to look at it on an after-tax basis and if we make themarginal tax rate 90 percent, we're gon na create more income, inequality, not less. I also think it's important to really explain what socialism is because a lot of the democratic hopefuls. While they say i'm, not a socialist, they are actually endorsing or supporting socialist programs yeah. I mean, i guess, if you want to look at the glass as half-full, i think it's nice that they feel compelled to call it medicare for all, because they know that still, i think, socialized medicine or single-payer health care or no choice. Health care is not going to be appealing to people so even though they're they get rid of medicare, they they feel like that brand has got to beused instead of saying a full on the socialist system, but the thing that nobody talks about is if we were To nationalize insurance and nationalize the healthcare system, what about all the jobs that are displaced? As a result you have about all the private insurers are now laying people off what do they become government employees, because 180 million americans get their insurance from private insurance companies? There'S an important topic:.

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