00:01
So here we have this cute little story about students earn a grade, and then at the end of the semester, you get your grade, but you can give some of your grade to someone else if you wanted to.
00:09
So let's try to map this to these economic systems that have been proposed throughout history.
00:15
So the first is communism, which we would characterize as the joint ownership, and consequently the joint ownership, distribution, consumption of resources.
00:39
So everyone owns a part of the factory that makes stuff.
00:45
Everyone gets a say in how that stuff is distributed, and everyone gets a fairly equal share of what comes out, right? there's no individualality, right? the idea of communism is collectivism, a duality, only collectivism, right? it's people acting together, being treated as similar, even if they are different or want different things.
01:17
So this is clearly wrong because student gets own grade, right? in a communist classroom, you wouldn't expect that, right? you would expect the students would jointly receive the grades earned, and then perhaps the grades would be divided among the students equally according to some other rule.
01:35
The idea that you get your own grade is not really compatible with communism.
01:42
So let's strike that.
01:44
B, we have a mixed socialism.
01:50
So here, it's, you know, you you have markets plus, i would say, heavy redistributive taxation, right? as opposed to communism where the ownership is equally divided among individuals making up the society, mixed socialism sort of lets the market decide ownership, but then it takes the proceeds of that ownership and redistributes them via the tax system to achieve more equity.
02:24
Fair or just outcomes, right? so here you have no taxes, right? sort of the modern mixed socialist welfare state relies heavily on taxes.
02:37
So if you were going to transpose this to this classroom, you'd expect that the highest performing students would have a lot of their grades taken away and given to other students, right? but here there is no taxes or state -led distribution.
02:52
The distribution, redistribution here is purely voluntary, right? and that pure voluntary thing is not how it works, right? if you think that it's, you know, you probably, if you are listening to this, live in a mixed socialist economy...