This is a good video about various voting mechanisms for handling voting between more than 2 choices.
The video is about voting, but to make things simple it discusses voting among people for a single ice cream flavor they all have to share. I don't think this video was meant to have any broader application beyond just highlighting basic paradoxes and strategies well-known in voting theory. To me, though, this video highlights the strong advantages of capitalism over socialism in at least three ways
- Forcing one-size-fits-all socialist and authoritarian solutions sucks vs. allowing individuals to make choices based on their personal preferences regardless of other preferences in the group. While the video discusses a variety of voting approaches for forcing everyone into a single choice, all of these result in a lot of folks who don't get their first preference. Obamacare is a great example, where product features have been standardized, essentially through a voting process (though indirectly) and huge numbers of people are unhappy.
- The video fails to discuss one shortcoming of simple yes/no voting, and that is degree of preference. In the real world, we both may prefer vanilla over chocolate, but your preference might be pretty close whereas I might be so allergic to chocolate that eating it will kill me. Socialist and authoritarian approaches don't have a solution for this, but market capitalism does, as prices signal not only our preference but our degree of preference as well. The real market for ice cream is a preference expression process orders of magnitude more sophisticated than voting.
- It is almost impossible for even an autocrat who legitimately wants to maximize well-being to do so, because the mass of individual preferences are impossible to encompass in any one mind. Towards the end of the video, it became harder and harder for a person to synthesize a best approach from the preference data, and this was just for 10 people. Imagine 300 million preferences.