Super Bowl LVI - A Lesson on Capitalism Versus Socialism

On February 13, 2022, Super Bowl LVI highlighted the Los Angeles Rams versus the Cincinnati Bengals!

My son placed a fun-hearted bet with his grandpa! My son sided with the Rams, while grandpa took the Bengals. The Rams prevailed over the Bengals, 23-20. The good news for my son was that the Rams won the Super Bowl.  The bad news was that he lost the bet.  

How is that so? Enter the “spread.”

The Rams were favored, due to their home field advantage. So, why did grandpa take the Bengals? Well, to offset this advantage (for betting purposes), Las Vegas provided an incentive for bettors to side with the Bengals. The betting incentive was by awarding the Bengals with 4 additional points. It is kind of like the Bengals started the game with 4 points already on the scoreboard. This 4 point spread leveled the betting/playing field and made bettors indifferent to the eventual winning team. The Rams won the Super Bowl by a 23-20 score. But in the bet, grandpa took the Bengals plus the 4-point spread. That means grandpa won 24-23!  (Side note: The missed extra point by the Rams in the first half was a killer). In the end, my son lost and owed grandpa an ice cream cone!

There was also a valuable lesson here for my son to learn about the economic systems of capitalism versus socialism. In capitalism, there is often a winner and a loser, just like in the bet on the football game. The desire to win creates competition, motivation, and the incentive for hard work and rewards. Free market capitalism does an efficient job of allocating resources to their highest and best use, because the people (not the government) oversee the resources. People own private property and businesses, and they use their assets and resources to improve their own lives and the lives of the rest of the world.  

The United States has been the most generous nation in history, and Americans have donated more wealth and resources than any other country. According to the Charity Aid Foundation, from 2009-2018, the United States consistently ranked number one as the most generous country in the world. And in 2022, Americans were still towards the top as #3 most generous country¹. 

Capitalism also provides people with self-dignity and hope for a better future based on individual effort and merit. It does not mean you will always succeed, but risk and return are related. It is one principle that America was founded upon!  It is what makes America the greatest country on earth! Many people do not realize that the Pilgrims started out by attempting socialism. It failed miserably. Then they instituted the economic system of free market capitalism and they flourished!

Socialism is quite the opposite. There is no natural winner or loser. Everything and everyone are considered equal. There is little motivation to work. Ingenuity and creativity slowly die. There is little incentive for competition because there is no reward. Socialism is about makers and takers. Socialism is a system where the government steals the resources of the makers (typically through taxation) and redistributes those resources to the takers in the form of ‘free’ handouts. The government decides who ‘wins’ and who ‘loses.’  Socialism punishes success and instead rewards laziness, apathy, and victimhood. It takes the resources out of the hands of the people and places them into the hands of the government for the ultimate purpose of control.  

The socialist government creates a state of dependence whereby the people need the government for basic survival. This destroys people’s self-dignity and their hope for a brighter future. There has never been a successful recorded case of socialism. Consider Venezuela.

In closing, Super Bowl LVI taught my son a great lesson about betting, and he also learned a real-life example of how capitalism works and why it is superior to the destructive nature and abuses of socialism. And grandpa was reminded that Las Vegas does a good job of setting point spreads!

‍

‍

Citation:

¹World Food Program USA. (2023, November 24). Why Americans donate: What motivates people to give and what causes do they give to? World Food Program USA. https://www.wfpusa.org/articles/why-americans-donate-what-motivates-people-to-give-and-what-causes-do-they-give-to/

‍

‍

The foregoing content reflects the opinions of TwoTen Planning and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as financial, legal, tax, or investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. All investing involves risk, including the potential for loss of principal. There is no guarantee or assurance that diversification, strategies based on Nobel prize-winning research, or any investment plan or strategy will be successful. Consult an estate attorney or qualified tax professional for specific advice relating to those respective areas.