Economic Systems Explained Simply

Hi there, this is Timothy love Mr. T from done my middle school and mcminnville Oregon. And today I'm going to explain the three most basic and the three most popular economic systems in the world today. Capitalism, communism, and socialism. I'm going to explain how capitalism is a lot like Easter, how communism is a lot like Halloween and how socialism is a lot like Christmas. So I'm going to oversimplify these, but I think the illustrations will stick. It's like this. Capitalism is a lot like when you were a little kid and grandma invited you over to her backyard and she's read Easter eggs all over the place. And you go, you go with your little basket, your little brother has his little basket, and you go run all around that backyard, and as you're looking for eggs, the harder you work, the more you get, the more successful you are. If you fail and you walk out of grandma's backyard without any eggs at all, then it's your own dang fold. You're responsible for yourself. And the harder you work, the more you get. The more places you search for eggs, the more eggs you're gonna get. And also your incentivized to be a little innovative and twist the truth a little bit. So if you bump into your little brother after you've just checked the bush for eggs and you tell your brother, hey, go check that Bush because maybe there's some eggs in there. You just lied to him, but that bought you more time to go find more eggs. So you're sort of incentivized to get ahead at whatever the cost. Capitalism, it's a lot like Easter. Communism is a lot like Halloween. On Halloween, you go out and mom drives in the minivan, you go to the rich neighborhood where they hand out that king sized candy bars and you bring your pillowcase and you load it full of candy and chocolate, not just like jolly rancher like fake strawberry ones, but like the real legit candy bars. And your little brother, he goes to like the apartment complex and he brings a ziploc baggie and he does get the jolly ranchers in the fake strawberry candies. Anyway, after hours of doing this, both of you guys come back to the minivan and mom says, what did you get? And she takes your pillowcase and she takes his ziploc baggie and she gives you ten pieces of candy and gives her brother ten pieces of candy and she takes all the rest for herself. Now your mom has done absolutely nothing to sit on her big fat butt the entire time in the minivan where you've been out slaving away, but she says, oh, well, it's a lot harder than you think to make sure you're safe and to take care of you. And so she ends up taking all of it for herself and her secret stash and you, despite how hard you work, end up with ten pieces, and your brother who did hardly anything ends up with ten pieces, and it's equal, but it's not very fair. In socialism, it's a lot like Christmas. Now, on Christmas, you don't buy gifts for yourself unless you're really bad at Christmas. Instead, in Christmas, other people buy gifts for you. You buy gifts for everybody else and because you care about long and dad and aunt Susie and uncle Ben, you go and buy gifts for all of them, and because they care about you, they buy gifts for you. So when you show up to that Christmas tree, their gifts for you. Not that you bought yourself, but from other people, because everybody's looking out for everyone else and taking care of everybody else, everybody ends up with gifts. Now the problem here is you might say, well, what if I don't buy a gift for uncle Ben? I only see him like once a year anyway, or what if, you know, mom and dad, they know I love them, Mother's Day, Father's Day. They're gonna remember that. I'm not gonna buy them a gift. You're still gonna get a gift, which is pretty great. Other than the fact that people are gonna start catching on pretty soon that they don't need to buy gifts for other people if they're not getting any themselves. So socialism really only works if everybody genuinely is looking out for everybody else's best interest. In socialism, it's a classless cashless society where everybody's just singing kumbaya on taking care of each other a lot like Christmas. Capitalism, like Easter, communism, like Halloween, and socialism, like Christmas. This has been Timothy love that done in middle school, and I hope you appreciated this.