John Papola has done it again. His video showing a Keynes v. Hayek rap contest was superb, and was followed by an equally enjoyable sequel featuring a boxing match between Keynes and Hayek.
Now he has a rap contest about capitalism and socialism featuring Ludwig von Mises and Karl Marx.
The video touches on three economic topics.
The obvious focus is the track record of capitalism vs. socialism. Given the wealth of evidence, that’s a slam-dunk victory for free markets.
But there are also two wonky issues referenced in the video.
- The socialist calculation debate – As I’ve repeatedly noted, genuine socialism involves government ownership, central planning, and price controls. Economists from the Austrian school, such as Mises, were the ones who explained that governments were incapable of having either the information or knowledge to make such a system work.
- The labor theory of value – Marxism is based on the strange notion that the value of a product is a function of the hours it took to produce. This overlooks the role of capital and entrepreneurship. Moreover, as explained in the video, value is subjective, determined by the preferences of consumers.
Let’s close with a nice compare-and-contrast image a reader sent to me.
