Capitalism vs Socialism – Patrick Bet-David

New Capitalism Series – In this first episode, Patrick Bet-David covers the voices and key points of Socialism, Communism and Capitalism, the forms of economy pendulum and the historic events and leaders that have ended up killing people. All of this leads us to the question, does Capitalism work?

Patrick wants this to spur a debate among you and the people you share this video with. You may think he is right or wrong but he wants you talking about it. His goal is to point out how entrepreneurship allows people to be less reliant on the government and corporations. Send your questions, thoughts, and comments to @patrickbetdavid.

Let’s look at the thinkers and leaders on either side of the debate between Socialism vs. Capitalism:

Capitalism-Heavy Weight Match Up_Heavy Weight Match Upv2






So, now we know who falls on what side, you are probably thinking what does all of this mean? Instead of looking at these things as different ISMS, look at it simply as numbers and control. Meaning on the socialist side there is a lot of force and on the capitalist side, there is a lot of choices.

The first question anyone has to answer when it comes down to these ISMS is this – How much of $100, that you just earned, are you willing to give to the government in exchange for certain services? Based on what percentage you are willing to pay, that’s the form of the economy that you believe in. It creates a peculium that looks like this:

  • 100% – Communism

    • The government gives everything to you. They make all your decisions and you spend your life going to work. No matter how many books you read, no matter how much you personally develop yourself, you’re not going to get paid because the government gives you a food, milk, a place to stay, transportation, all of that stuff.
  • 0% – Anarchy

    • No rules, no regulations, no laws. You’re not protected.
  • 10-35% – Capitalism

    • You give up that percentage of your income in exchange for government services. We’re talking security, which means a military, police, and the fire department. Other services include roads and education as well. You have some of those things taken care of with your tax dollars.
  • Past the tipping point of 50% tax – Socialism

    • Socialism can provide free food, free medicine, free education with tax dollars. Many of the policies Bernie Sanders abdicates for can be considered socialist.

You can apply this same model to not just taxes but also private property, regulation, speech. decision making, owning businesses, inheritance, and competition as well.

Private Property, Inheritance, or Owning a Business

Under Communism, there isn’t any ownership. Under Socialism, many services go through the state like healthcare and the banks, so the government owns more. Under Capitalism, ownership is allowed, and you can move freely.


Under Communism, there is too much it’s suffocating. Under Socialism, there is a lot that can slow down business. Under Capitalism, there has to be regulation to avoid Monopolies like what AT&T or Microsoft was.


Under Communism, a totalitarian government that can happen is able to shut down free speech like in China. Under Socialism & Capitalism, free speech exists, and the people do not suffer from the government cracking down. Under Anarchy, complete and total freedom of speech is permitted.

Decision Making

Under Communism, the government makes all the decisions for you. Under Socialism & Capitalism, you can make more decisions yourself in varying degrees. Under Anarchy, you are the only person that can tell you what to do.


Under Communism, there isn’t any competition because the state is the only provider. Under Socialism, competition is regulated and equal. Under Capitalism, competition is allowed to drive growth and innovation. We love competition, we just hate to lose.

Now that we looked at how the peculium can better provide context to each possible economy, there is an argument out there that posits that if only we could find the right leader, they could use all their power for good in a communist regime.

Unfortunately, history tells a different story. Enigmatic leaders people trusted and were given full control, end up committing genocide. While the Holocaust took 25,000,000 lives and events like the atomic bombing of Hiroshima took 700,000 those numbers pale in comparison to what has happened under Totalitarian Communist Regimes.

Under Communist Regimes, the Death Toll is Estimated Between
80,000,000 – 94,000,000 People

  • Mao Zedong of China

    • 45,000,000 – 75,000,000
  • Stalin of the USSR

    • 40,000,000 – 62,000,000 
  • Lenin of the USSR

    • 4,000,000
  • Pol Pot of Cambodia

    • 1,700,000 – 2,400,000
  • Ho Chi Minh of North Vietnam

    • 1,700,000
  • Kim Ill-Sung of North Korea

    • 1,600,000
  • Ethiopia

    • 1,700,000
  • Afghanistan

    • 1,500,000  

And it goes on and on when there is a Totalitarian Regime.

The point here for you to realize is the following, capitalism is simply a mathematical formula. So is communism, socialism, it’s all a math formula and when it comes down to the capitalism formula, it produces results. It’s that simple. Communism produces power and control over decision making. Socialism forces you to give up something you don’t want to give up. Capitalism says, listen, you give me 30 percent of your money. I’m going to, give you a military, safer roads, laws that protect you and all the other stuff we have in America today.

Next Steps: Go watch Milton Friedman’s interview with Phil Donahue. Read the books that the authors and thinkers wrote so you can decide for yourself. Download the PDF and think about what works for you.

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