Do you own a refrigerator?

The next time you hear people complain about “capitalism,” ask them if they own or have access to a refrigerator. You might be tempted to ask if they have a smartphone. Don’t. Smartphones will soon be declared a “human right.” Also, do not mention “the Internet.” Most people who hate capitalism would be triggered to learn that the foundation of the Internet was the Advanced Research Projects Agency Network. ARPANET was funded by the US Department of Defense.

Now, do you understand why you should only mention refrigerators? In 1913, refrigerators for home use were invented by Fred Wolf Jr., but he was more interested in building racing cars. William C. Durant, who-founded the car manufacturer General Motors, started the Frigidaire company to mass-produce refrigerators in 1918.

In 1919, the Frigidaire was the first self-contained refrigerator. It cost $775 or over $12,000 in 2021 equivalent. Based on the average US hourly wage in 1919 at $0.43, it took the average American 225 days of work to afford a refrigerator. Today, it would take 57 hours to be able to afford this appliance.

The household refrigerator changed the world. In general, “Refrigeration brought distant production centers together. It broke barriers of climates and seasons. It became an industry itself.” The household refrigerator “allowed people to buy and store fresh food products in a safer environment. As a result, people were able to consume better foods such as fresh produce, eggs, and meats.”

After a television, the refrigerator is the most widely owned household appliance in the world. In Austria and Turkey, 97 percent of households have a ref. The US Census Bureau estimates the US poverty rate to be 13 percent. According to the latest government data, more than 92 percent of US homes own at least one refrigerator.

High-income urban dwellers, as expected, own this appliance more often. Affordability is the major issue in virtually all consumer spending. However, refrigerators are the first assets, after a television, that a typical low-income household acquires as its wealth increases. Furthermore, a comprehensive study of India, Brazil, and South Africa in 2017 showed that even cultural differences change refrigerator purchasing habits. In India, the ownership is higher in the Sikh community because they drink more milk.

Yet, across the globe in less-developed nations, the primary issue was the reliable availability of electricity and its cost as a factor for buying even the smallest, least expensive refrigerator. You can use your TV when the power comes back on, but your ref is useless if there is no electricity.

Refrigerator ownership is low in the Philippines (45 percent) and it has to do with more than appliance affordability. The National Electrification Administration says there are around 2,319,660 homes—10 percent of the total—that still have no access to electricity.

Capitalism is the private ownership of the means of production and their operation for profit. Socialism, in one form or another, espouses that the means of production and distribution are owned or regulated by the community through a government. One system supplies the refrigerator. The other supplies the electricity.