Alexandria Ocasio-Cortez Does Not Understand Capitalism or Socialism

Capitalism vs. Socialism presented by Andy Puzder

Economists agree: Alexandria Ocasio-Cortez does not understand socialism or capitalism. Decades after capitalism seemed to have triumphed over socialism, politicians are once again arguing about the merits and drawbacks of these opposing economic systems. Why are we still having this debate? Andy Puzder, former CEO of the parent company of Hardee's and Carl's Jr., explains the misconceptions that keep the debate alive.

Capitalism versus socialism. We can sum up each economic system in one line:

Capitalism is based on human greed. Socialism is based on human need.

Right?

No. Wrong.

So wrong, it's exactly backwards. And I'll prove it to you.

Been on Amazon lately? Each of the thousands of products Amazon offers represents the work of people who believe they have something you want or need. If they're right, they prosper. If they're wrong, they don't.

That's how the free market works. It encourages people to improve their lives by satisfying the needs of others. No one starts a business making a thing or providing a service for themselves. They start a business to make things or provide services for others.

I speak from personal experience.

When I was the CEO of the company that owns Carl's Jr. and Hardee's restaurant chains, we spent millions of dollars every year trying to determine what customers wanted. If our customers didn't like something, we changed it--and fast, because if we didn't, our competitors would (pun intended) eat us for lunch.

The consumer—that's you—has the ultimate power. In effect, you vote with every dollar you spend.

In a socialist economy, the government has the ultimate power. It decides what you get from a limited supply it decides should exist.

Instead of millions of people making millions of decisions about what they want, a few people—government elites—decide what people should have and how much they should pay for it. Not surprisingly, they always get it wrong. Have you ever noticed that late-stage socialist failures always run out of essential items like toilet paper?

Of course, this isn't a problem for those who have the right connections with the right people. Those chosen few get whatever they want. But everyone else is out of luck.