Now no one disputes that all economic systems
reflect the intrinsic self-concern of human beings. But only capitalism creates a group
of people, known as entrepreneurs, who have no choice but to concern themselves with the
needs and desires of others.

These others are . . . their customers. Few economists, however, actually study the
behavior of these entrepreneurs, the creative leaders of capitalist businesses. If they
did, they would discover that entrepreneurs by the very nature of what they do must shun
greed.

First and foremost, responding to others is
the very opposite of greed. Second, greed, in the economic sphere, is
normally expressed as the immediate consumption of goods and services. I grab what I can without
regard for others. But entrepreneurs must

begin by saving, which is defined as forgoing
consumption to achieve long-term goals. Often it takes months, sometimes years to bring
a new product or service to market. Furthermore, entrepreneurs must collaborate
with others, building teams to achieve their aims.

In designing their goods and services,
they must -- once again -- focus not on their own needs but on the needs of others. This,
too, is the opposite of greed. So, what entrepreneurs do when they seek profit
is far more than self-interest.

Rather, profit is a measure of how well a company has served others. Under capitalism, a business prospers only if customers voluntarily trade for its
output. And it's only by improving its service to
others that a business can thrive and grow.

If the entrepreneur pursues his own interests
first and his customers' interests second, his business will fail. And sooner or later
an altruistic entrepreneur will surpass him. Capitalism at its essence, then, is a competition
of giving. Of course, self-interest is involved.

But the genius of capitalism, and only capitalism,
is that it channels self-interest into altruism. Entrepreneurs can only help themselves by
helping others. All those who have started a business, and
made great sacrifices to do so, know the drama

of that first day: does the world want what
I have to give? Whether it's an immigrant opening a beauty salon or Steve Jobs selling
an Apple Computer, success is far from guaranteed. In fact, it's just the opposite.
Those courageous souls, the entrepreneurs

who are the beating heart of capitalism, who
bring us the endless material benefits we enjoy  from ATM machines to life-saving medicines
-- should be held up for admiration, not torn down. Altruism is the very reason for capitalism's existence 

and why it remains the hope of civilization. I'm George Gilder for Prager University.

Why Capitalism Works | 5 Minute Video

PragerU creates free educational content promoting American values. Think better. Live better.


PragerU

All economic systems reflect human self-interest, but only capitalism fosters entrepreneurs who must prioritize customer needs.

Entrepreneurs, the creative leaders of capitalist businesses, must prioritize customer needs and desires, which is the opposite of greed.

Responding to others' needs is the opposite of greed, which involves immediate consumption.

Entrepreneurs must save and forgo consumption for long-term goals, often collaborating with others.

Entrepreneurs focus on others' needs, not their own, when designing goods and services.

Profit measures how well a company serves others; businesses prosper only through voluntary customer trade.

Businesses fail if entrepreneurs prioritize self-interest over customer needs; altruistic entrepreneurs succeed.

Capitalism channels self-interest into altruism; entrepreneurs help themselves by helping others.

Entrepreneurs face uncertainty and risk; success is not guaranteed.

Entrepreneurs should be admired for their contributions to society, from everyday items to life-saving advancements.

Altruism is the foundation of capitalism and its hope for civilization.

Why Capitalism Works | 5 Minute Video

Why Capitalism Works | 5 Minute Video

Scripts