'Giving' isn't always 'Helping'

Capitalism Is Socialism That Works

Capitalism gets a bad rap as a ruthless, dog-eat-dog system, but in reality, it’s the most effective way to create shared prosperity.

Unlike socialism, which focuses on redistributing wealth, capitalism multiplies it. Take Peter Thiel’s $500,000 investment in Mark Zuckerberg in 2004. At the time, Thiel was the wealthier of the two. But as Facebook scaled, Zuckerberg became exponentially richer than Thiel—while Thiel still walked away vastly wealthier than before. That’s the power of investment: it creates more wealth for everyone involved, rather than just shifting it around.

The Difference Between Helping and Hurting

The problem with socialism—and even well-intentioned charity—is that it often weakens the very people it’s trying to help. Giving someone a fish feeds them for a day, but teaching them to fish feeds them for a lifetime. Yet capitalism takes it further—it builds the fishing industry, funding boats, bait companies, and supply chains that allow entire communities to sustain themselves indefinitely.

On the other hand, if we contrast that with TOMS Shoes’ “Buy One, Give One” model. The idea was simple: for every pair of shoes sold, they donated a pair to someone in need. It sounded great—but in practice, it wiped out local shoemakers in many African and Latin American countries. By flooding the market with free shoes, TOMS put local businesses out of work, leaving communities more dependent rather than self-sufficient. What seemed like generosity actually eroded economic independence—because giving isn’t always helping.

Charity Without Investment Creates Dependence

This doesn’t just happen on a macro level; it happens in personal relationships too. Think about a family member who struggles with addiction or gambling. Giving them money doesn’t fix their problem—it fuels it. Paying off their debts or covering their rent doesn’t make them more responsible—it teaches them that someone else will always bail them out.

Real help isn’t a handout; it’s an investment in transformation. Just like an entrepreneur needs mentorship, capital, and a path to self-sufficiency, struggling individuals need accountability, discipline, and real stakes in their own success. Without personal responsibility, no amount of outside aid will create lasting change.

The True Social Good of Capitalism

This is why capitalism isn’t just about making money—it’s about creating opportunity. When you invest in a person, a business, or a system, you’re not just providing resources—you’re building capacity. You’re giving people the ability to create, grow, and become self-sufficient rather than remain dependent.

The beauty of capitalism is that it aligns incentives and scales effort. It doesn’t just redistribute fish—it builds a fishing economy. It’s socialism reimagined—not as a static transfer of wealth, but as a system where success fuels more success.

The more we understand this, the more we can use capitalism to empower rather than enable—to build instead of just give. And that’s what makes it the only system of shared wealth that truly works.