This economic system called capitalism is very simple really.

First, it requires private property.

This skyscraper is private property, and this hoodie is private property too.

You know, before capitalism, if you were a common person you

didn't own anything. The state or the king or the Duke or the emir or the

emperor or the whoever owned all of the land and everything on it and much of the

time they owned you as well. The ability for a common person to have something

that belongs to him or her is an earth-shaking innovation historically.

And second capitalism needs a free market.

Individuals need to be able to buy and sell their private property, and these trades are voluntary.

It's this non-coercive voluntary ability to buy and sell in your own personal interest

that makes capitalism so morally superior to socialism, aristocracies,

dictatorships or anything else where someone else determines what's in your best interest.

Freedom and capitalism go hand in hand and you cannot have one existing without the other.

But the main reason capitalism is the bomb is because of one exceedingly simple idea.

Your work and your reward are tied together.

Capitalism works because it rewards and incentivizes us to do more work than we would otherwise have to.

Let's imagine a caveman. He and his clan live up in the mountains. They're hunters who eat meat.

And because they're hunters, they make incredible spears. They're straight and strong with razor-sharp flint spearheads and they're

covered in elaborate carvings for good magic. But they don't do much gathering up there so their

baskets kind of look like birds' nests. Now down in the valley is another tribe. They grow their

own food and go out every day to harvest it and

...