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The Truth about the Rockefeller Oil Monopoly
WEBVTT Kind: captions Language: en
00:00:00.179 you mentioned before that oligopolies 00:00:02.21000:00:02.220 would not exist in a free market can you 00:00:04.24900:00:04.259 elaborate on this and how do you explain 00:00:05.80900:00:05.819 Rockefeller having 90 percent of the oil 00:00:07.63900:00:07.649 market at one point during the Gilded 00:00:09.62000:00:09.630 Age and there's another question here 00:00:11.58900:00:11.599 Iran did not admire Rockefeller as she 00:00:14.62900:00:14.639 said herself I don't remember that so 00:00:17.96000:00:17.970 he's just zero sunk to her in spite of 00:00:20.42000:00:20.430 all his achievement from hero to zero 00:00:22.40000:00:22.410 really I don't remember 00:00:25.04000:00:25.050 Iran saying that she done admire 00:00:26.57000:00:26.580 Rockefeller so I mean I suddenly admire 00:00:29.24000:00:29.250 Rockefeller and I don't believe 00:00:32.74900:00:32.759 Rockefeller had a which you're calling 00:00:37.01000:00:37.020 an oligopoly although technically what 00:00:39.44000:00:39.450 Rockefeller had technically based on I 00:00:42.11000:00:42.120 think still e economics he had a 00:00:44.20900:00:44.219 monopoly because 90 percent would define 00:00:45.95000:00:45.960 a monopoly but I don't believe that is a 00:00:48.44000:00:48.450 monopoly so I don't believe you define a 00:00:50.93000:00:50.940 monopoly based on the market share that 00:00:53.51000:00:53.520 you have I think monopolies and 00:00:56.52900:00:56.539 monopolies and oligopolies a defined 00:00:59.68900:00:59.699 based on whether they have government 00:01:01.04000:01:01.050 protection or not as long as they don't 00:01:03.52900:01:03.539 have government protection there's 00:01:05.32900:01:05.339 always competition always competition so 00:01:09.28900:01:09.299 for example we learn in economic 00:01:12.70000:01:12.710 textbooks that if you have a 90 percent 00:01:15.23000:01:15.240 share of a market then you're a 00:01:17.30000:01:17.310 monopolist and therefore what you do is 00:01:19.67000:01:19.680 you raise prices and lower quality 00:01:22.46000:01:22.470 because you have no competition so what 00:01:23.87000:01:23.880 the hell you you you raise prices above 00:01:27.46000:01:27.470 you know your marginal cost you you 00:01:29.84000:01:29.850 raise them as high as you can Sergi up 00:01:32.60000:01:32.610 to the point where you don't lose enough 00:01:34.37000:01:34.380 customers so you're maximizing your 00:01:35.92900:01:35.939 profit in that way I know Rockefeller 00:01:38.42000:01:38.430 didn't do that and you can go back and 00:01:41.24000:01:41.250 look at the evidence there's plenty of 00:01:42.56000:01:42.570 evidence and I highly highly recommend 00:01:44.38000:01:44.390 there's an essay that Alex Epstein wrote 00:01:47.53900:01:47.549 on Rockefeller just booked Alex Epstein 00:01:49.94000:01:49.950 and John the Rockefeller into Google 00:01:53.42000:01:53.430 search and you'll find it but also I 00:01:55.78900:01:55.799 would recommend the myth of the robber 00:01:58.85000:01:58.860 barons the myth of the robber barons 00:02:01.52000:02:01.530 which is a book by Robert I'm not sure 00:02:05.81000:02:05.820 if it's Robert it's Folsom by Folsom who 00:02:08.51000:02:08.520 that that you know describes what 00:02:11.96000:02:11.970 happened and if you look at the num 00:02:13.69900:02:13.709 Rockefeller decreased prices every 00:02:15.25900:02:15.269 single year and increased quality every 00:02:17.39000:02:17.400 single year while he had 90 plus percent 00:02:19.49000:02:19.500 of the oil refining capacity in the 00:02:21.67900:02:21.689 United States so he was they tell us a 00:02:25.58000:02:25.590 monopolist that didn't behave like a 00:02:26.95900:02:26.969 monopolist in my view he was a novelist 00:02:28.89900:02:28.909 he was in competition it's just a 00:02:32.72000:02:32.730 competition was unseen because the 00:02:35.36000:02:35.370 competition was the potential the 00:02:37.19000:02:37.200 potential of somebody to outmaneuver him 00:02:40.66000:02:40.670 to lower prices below his to create a 00:02:43.64000:02:43.650 product better than his and that was in 00:02:47.21000:02:47.220 a in the 1870s and at the time in the 00:02:50.05900:02:50.069 1870s he was producing or primarily 00:02:52.99000:02:53.000 primarily Burton Folsom boots and Folsom 00:02:56.47900:02:56.489 be you RTO and Folsom fos fol som that 00:03:01.78000:03:01.790 is I recommend all his books myth of the 00:03:05.05900:03:05.069 robber baron is the is is the best but 00:03:08.39000:03:08.400 they're all excellent everything he 00:03:09.83000:03:09.840 wrote is worth reading if you're 00:03:10.97000:03:10.980 interested in economic history anyway 00:03:13.83900:03:13.849 why did he do it cuz he knew there was 00:03:16.15900:03:16.169 competition and who competed him out of 00:03:18.19900:03:18.209 what he was producing well if you look 00:03:19.93900:03:19.949 at the 1870s and Rockefellers producing 00:03:22.09900:03:22.109 this this oil is refining oil and he's 00:03:25.00900:03:25.019 were finding oil into what it's a 00:03:27.31900:03:27.329 kerosene and what's the kerosene being 00:03:29.36000:03:29.370 used for lighting and who competed him 00:03:33.64900:03:33.659 out of the business of lighting Thomas 00:03:38.50900:03:38.519 Edison electricity now what bureaucrat 00:03:45.08000:03:45.090 what judge in a court what jury in a 00:03:49.61000:03:49.620 court would have predicted that would 00:03:52.28000:03:52.290 have predicted that while he was 00:03:54.08000:03:54.090 charging what he was charging for oil 00:03:55.64000:03:55.650 doing what he was doing lowering prices 00:03:57.64900:03:57.659 every year there was somebody who's 00:03:59.14900:03:59.159 gonna out-compete him in a completely 00:04:00.64900:04:00.659 different industry industry but I'll 00:04:02.47900:04:02.489 compete him out of their business and by 00:04:04.12900:04:04.139 the way by the time Rockefellers 00:04:06.92000:04:06.930 Standard Oil was broken up I think it 00:04:09.53000:04:09.540 was the 1920s he had gone from ninety 00:04:13.61000:04:13.620 percent to 25 percent or something in 00:04:17.12000:04:17.130 the 20s not because of government not 00:04:20.02900:04:20.039 because of antitrust not because he was 00:04:23.14900:04:23.159 broken up because he was only broken up 00:04:24.50000:04:24.510 in the 20s but because of competition 00:04:26.36000:04:26.370 and 00:04:27.51000:04:27.520 knew it so he had to be on his toes he 00:04:30.08900:04:30.099 had to keep fighting he had to keep 00:04:31.83000:04:31.840 innovating every I mean he was one of 00:04:33.68900:04:33.699 the most innovative entrepreneurs in all 00:04:35.33900:04:35.349 of human history 00:04:36.18000:04:36.190 he should be massively admired now maybe 00:04:40.92000:04:40.930 there's some reason not to admire him 00:04:42.48000:04:42.490 that it was his personal life I don't 00:04:43.80000:04:43.810 know but as a businessman he's one of 00:04:45.83900:04:45.849 the true greats one of the true greats 00:04:48.45000:04:48.460 didn't take Emmett subsidies didn't take 00:04:50.55000:04:50.560 cumin didn't it was not involved in 00:04:52.68000:04:52.690 trying to you know in cronyism and he 00:05:01.77000:05:01.780 was one of the Giants so what if he had 00:05:03.54000:05:03.550 90% my point is not that a business will 00:05:07.68000:05:07.690 not dominate an industry my point is 00:05:10.29000:05:10.300 that that domination is not bad just 00:05:12.27000:05:12.280 like Google today dominate search but 00:05:15.54000:05:15.550 how much does it charge you for that 00:05:16.71000:05:16.720 search zero and if you think it has a 00:05:21.80900:05:21.819 monopoly over internet advertising but 00:05:24.14900:05:24.159 that is too narrow does it have a 00:05:25.92000:05:25.930 monopoly over advertising over marketing 00:05:28.61900:05:28.629 no people have lots of choices when it 00:05:31.11000:05:31.120 has to marketing in advertising even on 00:05:32.96900:05:32.979 the internet but yes it has some 00:05:35.82000:05:35.830 ridiculous percentage of all that so I 00:05:44.01000:05:44.020 mean a liberal dose he'll have to give 00:05:46.05000:05:46.060 me a reference for where iron man says 00:05:47.51900:05:47.529 she doesn't she didn't like Rockefeller 00:05:49.58900:05:49.599 I don't remember that I'm not saying 00:05:51.57000:05:51.580 it's not true I just don't remember so 00:05:57.05000:05:57.060 that's my answer monopolies and I've 00:05:59.24900:05:59.259 done a number of videos on monopolies 00:06:00.74900:06:00.759 you might want to search your own book 00:06:02.51900:06:02.529 monopoly and you'll get generally if you 00:06:06.45000:06:06.460 have questions a lot of times if you 00:06:08.51900:06:08.529 just type my name in and the question 00:06:10.11000:06:10.120 I've already answered it for a lot of it 00:06:12.24000:06:12.250 right when you say the society has no 00:06:15.11000:06:15.120 responsibility here you see I think 00:06:18.52900:06:18.539 individuals have a responsibility to 00:06:21.05900:06:21.069 themselves is that it I don't like the 00:06:23.85000:06:23.860 word responsibility involved here right 00:06:26.12900:06:26.139 well what should we say that helped me 00:06:28.67000:06:28.680 do what I wish to do is that your point 00:06:31.76900:06:31.779 that the more you know do what I 00:06:34.63900:06:34.649 rationally sing is right according to 00:06:37.76900:06:37.779 the right more 00:06:39.76000:06:39.770 and help others if you can but not as a 00:06:43.77900:06:43.789 primary obligation and now in regard to 00:06:47.01900:06:47.029 society there is no such scene a society 00:06:49.86900:06:49.879 you know it's all of us now how can we 00:06:53.73900:06:53.749 have obligations which we didn't 00:06:56.23000:06:56.240 undertake see the parents of a child 00:06:59.86000:06:59.870 would have obligations for him up to a 00:07:02.98000:07:02.990 certain age since they brought brought 00:07:05.73900:07:05.749 him into the world but they can't do 00:07:07.80900:07:07.819 what is impossible to them so it doesn't 00:07:10.08900:07:10.099 mean that they can at any moment so the 00:07:13.98900:07:13.999 burden on the rest of us very society 00:07:16.83900:07:16.849 everybody's society and we can have 00:07:19.58900:07:19.599 unlearned obligations and I'm chosen 00:07:22.51000:07:22.520 obligations what in the island civil 00:07:27.18900:07:27.199 context would be appropriate 00:07:30.17900:07:30.189 societal measures to accommodate the 00:07:32.49900:07:32.509 ungifted there are all parents and a 00:07:35.43900:07:35.449 chance to give their parents to earn 00:07:37.68900:07:37.699 money if however their parents are poor 00:07:40.77900:07:40.789 and cannot assume it it's a big heavy 00:07:43.71900:07:43.729 burden 00:07:44.37900:07:44.389 they emit an appeal to private charity 00:07:47.29000:07:47.300 as it was always done before welfare 00:07:50.17000:07:50.180 state Chisolm in this country you want 00:07:52.05900:07:52.069 private charity as well for the gifted 00:07:53.99900:07:54.009 if necessary they're usually in a free 00:07:57.07000:07:57.080 society they will need it 00:07:59.17000:07:59.180 they'll make their own way just so you 00:08:01.14900:08:01.159 don't stop them but the private charity 00:08:06.76000:08:06.770 cannot be done by means of tax 00:08:09.07000:08:09.080 collection which means by for private 00:08:11.80000:08:11.810 charge is up to you and if it was 00:08:14.11000:08:14.120 recalled that is that says abdominal 00:08:16.98900:08:16.999 child who certainly cannot help it's 00:08:19.14900:08:19.159 perfectly alright to help him but not in 00:08:21.96900:08:21.979 the sacrifice of your own child you 00:08:25.14900:08:25.159 probably like to get rid of hgw then Oh 00:08:26.98000:08:26.990 sir 00:08:28.40900:08:28.419 almost said how much more than that I'd 00:08:32.19900:08:32.209 like to get it enough a lot of the 00:08:35.05000:08:35.060 government huh everything except the 00:08:37.36000:08:37.370 basic duties of the government which is 00:08:39.61000:08:39.620 police law courts and purchase you want 00:08:43.32900:08:43.339 less government 00:08:46.55000:08:46.560 you thought well everybody says that 00:08:49.68000:08:49.690 it's a little hard to put that into 00:08:51.00000:08:51.010 effect when we've got a company a 00:08:52.83000:08:52.840 country that has such a male 00:08:56.55000:08:56.560 distribution of wealth you'll give me 00:08:59.34000:08:59.350 that not to a few rich to many poor I 00:09:02.19000:09:02.200 will I will give you part of that 00:09:04.26000:09:04.270 because if there is about distribution 00:09:06.63000:09:06.640 it's to those who have political poo 00:09:09.45000:09:09.460 if some of your money is made with 00:09:11.34000:09:11.350 government help and that will pay 00:09:13.50000:09:13.510 favoritism then I grant you that is 00:09:16.50000:09:16.510 unfair and improper and unjust but if 00:09:19.71000:09:19.720 you made it yourself in free competition 00:09:21.87000:09:21.880 enough people want to pay you for your 00:09:24.12000:09:24.130 services or your brother so you should 00:09:27.51000:09:27.520 keep all of it why shouldn't you you 00:09:29.19000:09:29.200 made if the Middle Eastern countries 00:09:37.89000:09:37.900 want to charge hold us up for the oil at 00:09:39.99000:09:40.000 five dollars a barrel or a gallon 00:09:42.27000:09:42.280 because made $5 well that day ever be 00:09:44.43000:09:44.440 back they ought to be able to do it it's 00:09:46.17000:09:46.180 their oil is that your point no my point 00:09:48.99000:09:49.000 is we should not have permitted 00:09:51.47000:09:51.480 altruistically all those nations to 00:09:54.21000:09:54.220 nationalize what we built for them 00:09:57.64000:09:57.650 [Applause] 00:10:04.67000:10:04.680 as we are now moving towards complete 00:10:07.50000:10:07.510 collectivism or socialism a system under 00:10:11.94000:10:11.950 which everybody is enslaved to everybody 00:10:14.64000:10:14.650 and we are moving that way only because 00:10:17.19000:10:17.200 of our ultras morale yes but you say 00:10:19.77000:10:19.780 everybody is enslaved to everybody yet 00:10:22.44000:10:22.450 this came about democratically I and the 00:10:24.63000:10:24.640 free people in a free country voted for 00:10:27.33000:10:27.340 this kind of government wanted this kind 00:10:29.13000:10:29.140 of legislation do you object to the 00:10:31.59000:10:31.600 democratic process I object to the idea 00:10:35.03000:10:35.040 that people have the right to vote on 00:10:38.25000:10:38.260 everything they a traditional American 00:10:41.30000:10:41.310 system was a system based on the idea 00:10:44.76000:10:44.770 that majority will prevailed only in 00:10:47.46000:10:47.470 public or political affairs and that it 00:10:50.37000:10:50.380 was limited by inalienable individual 00:10:53.16000:10:53.170 rights therefore I do not believe that a 00:10:55.65000:10:55.660 majority can vote a man's life or 00:10:58.65000:10:58.660 property or freedom away from him and 00:11:02.19000:11:02.200 therefore I do not believe that if a 00:11:04.50000:11:04.510 majority votes on any issue that this 00:11:07.59000:11:07.600 makes the issue right it doesn't all 00:11:09.69000:11:09.700 right then how do we arrive at action 00:11:12.30000:11:12.310 how should we arrive at action by 00:11:15.36000:11:15.370 voluntary consent voluntary cooperation 00:11:17.52000:11:17.530 of freemen unforced initial the powers 00:11:20.70000:11:20.710 of government are strictly limited they 00:11:22.95000:11:22.960 will have no right to initiate force or 00:11:26.58000:11:26.590 compulsion against any citizen except a 00:11:30.27000:11:30.280 criminal those who have initiated first 00:11:33.33000:11:33.340 will be punished by force and that is 00:11:35.70000:11:35.710 the only proper function of government 00:11:37.07000:11:37.080 what we would not permit is the 00:11:39.45000:11:39.460 government to initiate force against 00:11:42.39000:11:42.400 people who have heard no one who have 00:11:45.03000:11:45.040 not forced anyone we would not give the 00:11:47.76000:11:47.770 government or the majority or any 00:11:49.56000:11:49.570 minority the right to take the life or 00:11:52.98000:11:52.990 the property of others that was the 00:11:54.99000:11:55.000 original American system when you say 00:11:57.08000:11:57.090 take the property of others I imagine 00:12:00.12000:12:00.130 that you're talking now about taxes Sam 00:12:02.28000:12:02.290 and you believe that there should be no 00:12:04.29000:12:04.300 right by the government to tax you 00:12:07.23000:12:07.240 believe that there should be no such 00:12:08.46000:12:08.470 thing as welfare legislation 00:12:10.76000:12:10.770 unemployment compensation 00:12:13.14000:12:13.150 regulation during times of stress 00:12:15.06000:12:15.070 certain kinds of rent controls and 00:12:17.40000:12:17.410 things like that that's right I'm 00:12:18.81000:12:18.820 opposed to all forms of control I am for 00:12:23.22000:12:23.230 an absolute let's say fair free 00:12:25.62000:12:25.630 unregulated economy let me put it 00:12:28.68000:12:28.690 briefly I'm for the separation of state 00:12:31.53000:12:31.540 and economics just as we had separation 00:12:34.14000:12:34.150 of state and church which led to 00:12:37.26000:12:37.270 peaceful coexistence among different 00:12:39.75000:12:39.760 religions after a period of religious 00:12:42.84000:12:42.850 wars so the same applies to economics if 00:12:45.99000:12:46.000 you separate the government from 00:12:47.76000:12:47.770 economics if you do not regulate 00:12:50.22000:12:50.230 production and trade you will have 00:12:52.59000:12:52.600 peaceful cooperation and harmony and 00:12:55.32000:12:55.330 justice among men
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