Last weekend, the Libertarian National Convention invited me to give a breakfast address entitled, “My Most Successful Way to Convert Students to Free-Market Capitalism.” The subject attracted a large crowd.
I told them that I’ve given a speech on campuses across the country with a title that attracts young socialists of all kinds: “What’s Better than Democratic Socialism?”
I lure them in because they wonder, “What could be better than Democratic Socialism?”
In my talk, I explain why socialism has failed time and time again due to lack of incentives. I prove it logically with sound economics — what I call “econologic,” based on the title of my textbook, “Economic Logic” (available at a substantial discount at www.skousenbooks.com).
After demonstrating the fatal flaw in socialism, I offer an alternative because you can’t get rid of a bad idea unless you can replace it with a good idea.
And that good idea is what I call “Democratic Capitalism,” through profit sharing and stock options to all employees. For instance, Microsoft gives stock options to employees and so far, over 15,000 ordinary workers there have become multi-millionaires. It’s what John Mackey calls the “stakeholder” philosophy of business.
By the end of my lecture, I’ve converted 90% of the young people to my way of thinking. It’s quite a remarkable experience.
Where to Find a Better Alternative to Socialism
My talk is summarized in simple, but powerful terms in my 15-page report, “Economics of Life Made Simple.”
Last year, Michael Shermer commissioned me to write a cover story, “Economics of Life Made Simple,” in honor of Adam Smith’s 300th birthday. It’s been a hit ever since, with hundreds of people buying multiple copies.
For example, David Berkovitz, who teaches business law and accounting, recently told me, “Mark, I always wanted to understand economics, so I read ‘Economics for Dummies,’ and still couldn’t understand it… until I read your essay, ‘Economics of Life Made Simple.’”
The next day, he wrote me the following burb: “Concise and clear, this essay is THE source for anyone seeking to understand this important topic. It should be required reading for everyone in the College.”
In this essay, I tried to answer fundamental questions about money and the economy, such as: What is the secret to our tremendous economic growth over the past 250 years?… Why are young people so attracted to socialism?… Why is inflation coming back?… Is capitalism inherently unstable?… What is the economists’ solution to global warming? It also includes a section on gross output (GO).
I’ve had so many requests for this article that I printed up 3,000 copies and sent them to friends and handed them out at various conferences. A professor at the University of the Bahamas bought 50 copies to hand out to his students. A coin dealer asked for 25 copies to hand out to his clients.
A highly successful lawyer from North Dakota attended FreedomFest and picked up a copy. He told a colleague, “This is the best brief in economics that I’ve ever read,” and made copies to send out to all his clients.
One Christian minister, Dallin H. Oaks, wrote, “I have just finished reading your ‘Economics of Life Made Simple.’ Marvelous! I have never read a better expression by a sophisticated professional who has written to the clear understanding of laymen. Congratulations! I hope this will be widely circulated. It is very important.”
A top official of the Bureau of Economic Analysis (BEA), which puts out the quarterly data on gross domestic product (GDP) and GO, was so impressed that he sent it to his youngest son, who is pursuing a degree in business analytics at the University of Tennessee.
A mother wrote me from Colorado, “I’m making copies for my boys to send to them in college.”
And I just got word today that Union Editorial, the prestigious book publisher in Spain, is translating it into Spanish. I plan to present a copy to President Milei.
You can read my essay online here.
