America's Economic Secret Sauce | Cash Course: Economics | PragerU Kids

before we start this episode here's a quick preview of what's coming ready to take charge of your finances and master The Art of Money Management cash course is your ultimate guide to financial literacy from personal budgeting to macroeconomics check out more episodes at prageru.com America from sea to shining sea life liberty and the pursuit of happiness the land of opportunity but it wasn't always like that after winning the American Revolution and becoming an independent nation the United States was broke yep it's true yet just about a century later it had become the wealthiest nation in the world surpassing the Great British Empire what how did this happen it happened because the founding principles made it different from other countries enabling an economic freedom unlike anywhere in the world throughout history and at the time of America's founding most wealth and economic power rested with Kings and Nobles Americans led by their founding fathers believe differently they designed a government and political structure that was different in many ways providing people the freedom to live out their own values in their families and their communities if I would like a one-way ticket to America please this boat is full come back in 2 weeks but why because there's no room all right these differences that allowed German immigrant Levi Strauss to patent his metal rivets and jeans and start the Levi jeans company and black businessman James sporton to become one of the wealthiest men in Philadelphia in the early 19th century stories like these are endless throughout American history as people all over the world sought to come to America leaving oppressive or restrictive societies for new opportunities in a Freer economic Market let's dive deeper into these principles that set America apart first the country was founded on judeo-christian values meaning the people believed God created all men equal and gave them their rights this included individual Freedom such as free speech and the right to own property the key difference here is that people were subject to their creator not a king or governing entity in many countries then and now people couldn't fight back when they face oppressive laws or circumstances governing authorities or Powers could imprison someone unjustly or seize their property without compensation because the people didn't have any rights everything including their livelihood land and possessions Belong To The King not my but the founders believe that the people's rights weren't given to them by a governing human authority but by a higher authority they're Creator this is exemplified in the First Amendment to the Constitution among others that protects people's right to petition the government when they've been wronged my poor cows second L America was set apart by its political structure at the time of America's founding Authority and Power in Old World Europe were concentrated in the hands of a royal family or landowning Nobles but in America political structure and Authority were divided between legislative judicial and executive branches of government and between federal and state governments this separation of powers meant each branch had specific powers granted by the Constitution which limited the government's Authority preventing it from becoming tyrannical these checks and balances ensured that everyone no matter their status had a way to make their voices and interests heard peasants protesting jees ready the stocks thirdly America was set apart in its social structure in Old World Europe people were divided by class most of the population was stuck at the bottom as peasants and they didn't have a way to move up the class ladder and improve their circumstances America wasn't going to be like that as a culture of individualism and freedom was woven into its fabric from the earliest of years this Spirit was cemented in the Constitution where it's explicitly written that no title or nobility shall be granted this social identity Drew new immigrants from all over the world leaving oppressive societies for one of individual freedom and opportunity no please not the tomatoes stop [Applause] stop with the freedom to think speak and pursue one's own interest there was an explosion of new ideas inventions and Innovations take for example Henry Ford who created the first affordable and mass-produced automobile the Model T he spent years pursuing his goals not because of any government edict but because he was free to be ambitious and Innovative and thanks to Ford's entrepreneurial Spirit the nation and the economy benefited from his ideas which revolutionized the manufacturing process for future companies empower the people to succeed our Empire will be ruined I tell you ruined in the American Market more people had access to Capital like land and resources which put success directly in the hands of the people achievement was not limited to class or governing Authority but dependent on individual Merit creativity and perseverance they well King I'm going to America where they appreciates my skins of cows not everyone will be Levi Strauss Henry Ford or James Borton in fact you're more likely to fail before you ever succeed the American free market system isn't a promise of success but a promise of opportunity but that opportunity isn't just about dollars and resources it's about the foundational principles and values that a nation's people carry in government in business and at home understanding those principles will allow us to preserve and appreciate the freedoms we've all come to enjoy and ensure that future Generations are guaranteed the same America I made it good to meet you hi flag for you sir oh thank you watch more at prer kids.com and parents don't forget to subscribe