Capitalism (1948)

[Music] the not like him to be late you I wonder where he is oh hi Jim hi well look we still have a few minutes before we go on the air I'd like to tell you about the time that Elanor and I went down to oh let's save the talk can't we agree that capitalism is an economic system a system for the production and distribution of things we need and want I won't agree to that not until you say something about government too there has to be a legal basis for any economic system to operate well it's easy to see that you have different ideas of what capitalism is maybe we should talk about what it is not it is not a system of strict governmental control and planning in which a dictator board tells people what jobs they may hold and and what what goods they may produce and it's not a system of government ownership let me tell you about something it shows that the basis of the capitalistic system is private property it happened when Eleanor and I went down to get the things for the class Weenie Roast we went to Mr Brown store well that's what I mean Mr Brown really owns property all those store fixtures and the groceries in there and well the whole store it's his prop property and he can do almost anything with it that he likes we needed weenies Mr Brown had weenies it's as simple as that you might argue about his prices anyway Eleanor did but after all he has a right to earn something for the goods and services he supplies and he does Supply Services as well as Goods when we agreed to buy everything from him weenie buns marshmallows and charcoal he agreed to give us extra service deliver everything in his truck and since we didn't have enough cars he agreed to make another trip and take a lot of the kids out to the picnic and he could help us that way because the truck is his private property and he can do just about anything with it that he wants that's how a capitalistic system operates the people own property and use it to provide the goods and services that all of us need that's what I mean about government Mr Brown's very right to own property is guaranteed by our constitution yes but well bills missed the whole point to what happened at Mr Brown's store Mr Brown has property all right but that's not what he's interested in and he does help Supply us with things we want but that's not why he's in business he's in business to make money there's the basis of the capitalistic system the profit motive he may give service when he has to to make a profit well when I complain that his prices were too high he could see those profits going right out the window if we didn't buy from him so naturally he offered to help us out with his truck so he could make a sale and a profit and just think of all the others who made a profit on those weenies cattle Growers Meat Packers shippers Distributors they're all in business to make profit of course they make a profit and it's a good thing that's the incentive that makes capitalism work to give us more of the things that we need that's the incentive that other economic systems lack I think you've both missed the point it's competition that's why Mr Brown offered his truck he wanted to make sure you'd buy from him and not from a competitor and why was he free to make that offer freedom of contract you and Mr Brown entered into a contract an agreement you agreed to buy what you needed from him he agreed to let you use the truck in the same way he got the weenies by entering into into a contract with the wholesaler and he caught the truck by entering into a contract with someone else under a capitalistic system you're free to make almost any kind of a contract with anyone freedom of contract competition profit motive private property and what do they all add up to free enterprise well that's what capitalism is a system of free enterprise well now tell us what free enterprise means all right it means that you can go into business wherever and however you please anybody can go into any business any legal business that is but I still say you can't leave government out of the discussion government must at least guarantee the right of private property and freedom of contract in order that why please everybody we're on the air in a few seconds good afternoon this is Ray Bennett acting as moderator for the Western High School radio Forum our topic today what is capitalism we hear capitalism capitalistic system on every hand on the radio in newspapers magazines books in lectures and daily conversation but just what is capitalism to start our Forum we will present a few two candid interviews recorded remarks of Representative citizens of our town who were asked for their opinions about our capitalistic system capitalism well why should there be any question about it hasn't it given us the highest standard of living in the world we don't have free enterprise just bureaucratic red tape the government ought to keep its hands off business freedom of contract don't know about that we've got the union and seniority I make a living I should worry where's all this competition we've heard so much about you call these prices low well perhaps the regular I'm glad I can work for myself with capitalism you you take your choice it seems that capitalism means different things to different people let's hear now from our town Treasurer Mr John Howard we say we live in a capitalistic Society what does that mean well we can point to certain fundamental ideas which we say are part of a capitalistic system for example private property individuals or corporations May own land natural resources buildings of all kinds machinery and equipment for the production of goods facilities for the transportation of goods and the goods themselves in a capitalistic system these are usually private property another idea fundamental to capitalism is the profit motive for the sake of profit we cultivate the land we build great factories to produce Goods we sell for profit the goods thus produced we transport over large distances still for the sake of profit those who have savings often invest or lend them hoping for a share of profit and in so doing help to build the industrial might of the nation some other ideas are basic to capitalism competition freedom of contract free enterprise what do they mean could these rights exist without laws that Define and protect them do just these few things make up a capitalistic system or should something more be said perhaps your Forum would will have some of the answers there is more to be said Mr Howard a great deal more that's why we're holding this forum now it's up to you listen consider discuss this is your Forum what is capitalism [Music] oh