Capitalism Is Not the Enemy

Many people condemn capitalism as a system of greed and inequality. But in truth it is the greatest generator of wealth in human history. In episode 13, Brandon and Christine discuss why so many people hate capitalism, but why it is actually a beautiful, self-sustaining system that benefits everyone when done correctly.

Show Notes

• The market was up this morning, but violently pulled back this afternoon as California reported it is closing indoor restaurants, movie theaters, and bars (source).
• The S&P fell 0.9%, while the NASDAQ fell 2.1%.

08:10 – Weekly Stock Picks

• Analysts aren’t expecting a very positive earnings season.
• As such I didn’t really pick a specific earnings stock, though Johnson & Johnson (JNJ) is due to have earnings this Thursday, July 16, and is predicted to beat earnings.
• I also traded an iron condor on Delta Air Lines, Inc. (DAL), who is set to report earnings tomorrow (7/14).
• My options pick was on AMC Entertainment Holdings Inc - Class A (AMC), selling a $3 put and buying a $2 put for 8/21. I opened it at $0.22, though it closed the day at $0.27 so you may be able to get it at a better price.

16:35 – Capitalism Is Not the Enemy

• Many people hate capitalism because they see it as greedy.
• There’s a lot of divisiveness in the world right now, with people focusing on the difference between everyday workers and the rich, whom they perceive as taking advantage of them.
• This tends to lead to Marxism, which sees the wealthy as evil and the everyday worker as virtuous.
• Yet people fail to see where the foundation of our economic system has gotten us and the prosperity it has created.
• Just because someone is rich, it doesn’t mean they have any obligation to share their wealth with others. That is the core of capitalism.
• Capitalism creates value for all: for the business, for the customer, and for the shareholder.
• Of course this ideal doesn’t always work out, but in general, those businesses that can innovate and create greater value, will be the ones to thrive.
• Anyone can be the shareholder of a business: it’s not just for the wealthy.
• If you aren’t where you want to be financially, there’s no one to blame. You have to put in the work to create the financial results you want to create.
• The government isn’t here to create wealth for you: it’s here to give you the freedom to pursue wealth on your own merrits.
• If you want to create wealth for yourself, the best thing is just to start putting money in the market.

Resources Mentioned

Suicide of the West: How the Rebirth of Tribalism, Populism, Nationalism, and Identity Politics is Destroying American Democracy, by Jonah Goldberg

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