Peter Joseph is not as good of a communicator as he could be, his language can make a simple idea sound way more complex than it should be. Not to mention that being rude creates a huge barrier to understanding.
This post is my attempt to get the idea across with a practical example.
The free market perspective:
Let's say I have a cell phone factory, I have been suffering increased pressure from the Industry to cut down cost, so I've decided to automate the entire assembly line.
Each robot on my assembly line can do the job of 50 people, so for each robot added 50 people are fired.
The goal of my business is to make and sell phones for profit. The goal of my employees is to exchange their services for the means to acquire survival. If I don't automate the assembly line the company will fail and everyone will be fired, if I automate it everyone still gets fired but I get to keep the means for my own survival. Therefore profit is more important than empathy, the less empathy I have, more profitable my company will be, if I have the opportunity to dump toxic waste and not suffer the consequences, I will do it, such a thing gives me a huge competitive edge over companies who do proper waste disposal.
Now let's see it from the perspective of an assembly line worker. This guy was already working 18 hours a day and is borderline suicidal, the only thing keeping him going is drinking himself to sleep every night. He hates his job and hates himself for working there, he can't enact the anger he feels on his boss, so he beats up his children instead.
Now he has lost his job at the factory and killed himself. His children counted on him for survival but were barely making it while he was around, so in order to survive and enact the anger they feel at the father, they now become violent criminals.
Resource Based Economy, a transition Perspective:
I still have a cell phone factory, but I understand that the whole idea behind having a factory is to make cellphones available to people and not to make a profit for myself in the expense of others. I don't sell cellphones, I make them to last and give them away for free, I have no financial incentive in forcing my users to replace their phones every 3 months. I have a proper waste disposal system, don't have a marketing department (advertising related waste). My focus is in getting people what they need while wasting a minimal amount of resources, so when the assembly line gets fully automated and production increases 10 fold, I can tell my employees that they can leave and enjoy the newly available extra resources to assure their survival.
For the first time in these peoples lives, they have the time and the resources to do what makes them happy, their family lives are more fulfilled now than ever, they no longer feel the stress of the struggle for survival, the parents are no longer absent mythical figures, and they don't have to worry about criminality. People are not going to steal any cellphone from them, the factory has such a large efficiency rate that cellphones are now abundant. In the same way people today don't go around stealing sunshine and stealing air, there's no incentive for stealing phones.