1 00:00:00,040 --> 00:00:04,640 Speaker 1: Welcome to another episode of financial Heresy, where we discuss 2 00:00:04,680 --> 00:00:06,640 Speaker 1: how money really works so that you can make more, 3 00:00:07,040 --> 00:00:10,719 Speaker 1: keep more, and give more. Today, my guest, I'm very 4 00:00:10,720 --> 00:00:13,720 Speaker 1: excited to have this conversation and share it with you 5 00:00:13,760 --> 00:00:18,200 Speaker 1: all because Pair Violent he is number one, a fantastic author. 6 00:00:18,280 --> 00:00:21,279 Speaker 1: He's able to break down these economic concepts in a 7 00:00:21,320 --> 00:00:27,000 Speaker 1: way that very almost everybody can understand. Um number two, 8 00:00:27,280 --> 00:00:30,479 Speaker 1: his perspective is from what I've been able to tell 9 00:00:31,120 --> 00:00:36,519 Speaker 1: UM completely on point. He follows the Austrian school of 10 00:00:36,640 --> 00:00:40,520 Speaker 1: economics and breaks down things that some of the great 11 00:00:40,520 --> 00:00:44,680 Speaker 1: thinkers of old have stated in less um he breaks 12 00:00:44,680 --> 00:00:46,560 Speaker 1: it down in a way that's much easier to understand 13 00:00:46,600 --> 00:00:50,519 Speaker 1: than some of the original thinkers. His one of his 14 00:00:50,560 --> 00:00:55,640 Speaker 1: books is The Scene, the Unseen and the Unrealized. Fantastic book. Today, 15 00:00:55,680 --> 00:00:58,800 Speaker 1: I have him on to discuss his concepts and topics 16 00:00:58,800 --> 00:01:01,480 Speaker 1: from his most recent book, which is available for free 17 00:01:02,120 --> 00:01:05,440 Speaker 1: UM and this one is called How to Think About 18 00:01:05,480 --> 00:01:09,039 Speaker 1: the Economy A Primer. So I'm very excited to have 19 00:01:09,200 --> 00:01:13,240 Speaker 1: Para Bilent on with you guys today to share this conversation. Para, 20 00:01:13,319 --> 00:01:15,840 Speaker 1: thank you so much for joining us. I'm very excited 21 00:01:15,840 --> 00:01:20,240 Speaker 1: to have this conversation because I believe firmly in what 22 00:01:20,400 --> 00:01:24,000 Speaker 1: you are doing and the way that you are doing it, because, um, 23 00:01:24,040 --> 00:01:26,600 Speaker 1: it really seems true to me that if more people 24 00:01:26,720 --> 00:01:30,160 Speaker 1: understand how money works, how the economy works, this world 25 00:01:30,240 --> 00:01:32,000 Speaker 1: will be a much better place because people would make 26 00:01:32,000 --> 00:01:36,559 Speaker 1: better decisions. Yeah, thanks for having me. It's I I 27 00:01:36,640 --> 00:01:40,560 Speaker 1: totally agree. Economic literacy is like a virus, that that's 28 00:01:40,600 --> 00:01:43,320 Speaker 1: the true pandemic in a sense, because it's it really 29 00:01:43,360 --> 00:01:46,840 Speaker 1: screws things up, both directly and indirectly for people, and 30 00:01:46,880 --> 00:01:52,880 Speaker 1: it's amazing how little people understand how the economy actually works. Yeah, 31 00:01:52,960 --> 00:01:57,280 Speaker 1: I completely agree, and I think, especially at the political level, 32 00:01:57,320 --> 00:01:59,200 Speaker 1: that is one of the reasons why we are in 33 00:01:59,720 --> 00:02:01,880 Speaker 1: this situation we are in today, because the people who 34 00:02:01,920 --> 00:02:04,480 Speaker 1: are making the decisions are making it based off of 35 00:02:05,600 --> 00:02:10,680 Speaker 1: flawed or completely incorrect backwards assumptions about the way it works. 36 00:02:11,040 --> 00:02:13,040 Speaker 1: So thank you for what you do. Thank you for 37 00:02:13,080 --> 00:02:16,240 Speaker 1: writing this recent book um that UM I will have 38 00:02:16,320 --> 00:02:19,519 Speaker 1: linked below how to understand or how to think about 39 00:02:19,560 --> 00:02:22,040 Speaker 1: the economy, And thanks for being on today to talk 40 00:02:22,080 --> 00:02:26,440 Speaker 1: about it. Yeah, thanks for having me. Let's start off. 41 00:02:27,280 --> 00:02:29,960 Speaker 1: I would like to uh, I would like to understand 42 00:02:30,280 --> 00:02:34,600 Speaker 1: you talk about how there's really no such thing as 43 00:02:35,160 --> 00:02:38,560 Speaker 1: um as an economy. Um. This is something that we 44 00:02:38,639 --> 00:02:43,680 Speaker 1: kind of conceptualize, but in reality, there there's there's no economy. Um. 45 00:02:43,720 --> 00:02:47,280 Speaker 1: Even you use the example of like companies, really there's 46 00:02:47,360 --> 00:02:50,480 Speaker 1: just people that are, you know, performing actions. There's no 47 00:02:50,520 --> 00:02:54,600 Speaker 1: such thing as companies or the economy, right. I think 48 00:02:54,919 --> 00:02:56,800 Speaker 1: a good way of thinking about it is that, well, 49 00:02:56,880 --> 00:03:01,480 Speaker 1: if there would be an alien visiting Earth, what would 50 00:03:01,520 --> 00:03:05,119 Speaker 1: the aliens be able to say about our economy? Well, 51 00:03:05,160 --> 00:03:07,200 Speaker 1: I mean, they wouldn't understand what it is to be 52 00:03:07,200 --> 00:03:10,360 Speaker 1: a human being. They wouldn't understand what we're actually doing 53 00:03:10,440 --> 00:03:14,000 Speaker 1: when we're exchanging things with each other, especially would deal 54 00:03:14,080 --> 00:03:16,959 Speaker 1: with credit and things like that. So they would only 55 00:03:17,000 --> 00:03:19,960 Speaker 1: be able to explain what they observe. So for for 56 00:03:20,160 --> 00:03:22,160 Speaker 1: a business, for instance, they would just be able to 57 00:03:22,160 --> 00:03:24,600 Speaker 1: say that, Okay, there's a building with a lot of 58 00:03:24,880 --> 00:03:27,360 Speaker 1: rooms in it, and people tend to show up to 59 00:03:27,400 --> 00:03:29,320 Speaker 1: this building at a certain time and they leave at 60 00:03:29,360 --> 00:03:32,079 Speaker 1: the same time, and they seem to take some sort 61 00:03:32,120 --> 00:03:35,720 Speaker 1: of break around noon. But what heck are they doing 62 00:03:35,760 --> 00:03:38,480 Speaker 1: in there? And you can't really understand that. Well, some 63 00:03:38,560 --> 00:03:40,640 Speaker 1: of these people work for one business and some of 64 00:03:40,680 --> 00:03:43,480 Speaker 1: these people in another office work for a different business, 65 00:03:43,520 --> 00:03:48,520 Speaker 1: and and they have different cultures, and they produce different things, 66 00:03:48,560 --> 00:03:51,000 Speaker 1: and they are loyal to the brand or what what 67 00:03:51,040 --> 00:03:53,440 Speaker 1: have you? All of these things. Right when when we 68 00:03:54,640 --> 00:03:57,200 Speaker 1: say we buy a new iPhone or something, we deal 69 00:03:57,280 --> 00:04:01,000 Speaker 1: with Apple computers, Well we don't really. I mean, what 70 00:04:01,040 --> 00:04:02,880 Speaker 1: you can ob service that you go to a certain 71 00:04:02,920 --> 00:04:07,720 Speaker 1: location and you exchange maybe paper bills or or you 72 00:04:07,800 --> 00:04:10,839 Speaker 1: just lend them your credit card for a little bit 73 00:04:11,040 --> 00:04:13,560 Speaker 1: and you get a box back. It's between you and 74 00:04:13,600 --> 00:04:17,039 Speaker 1: this other person. Well, that other person is representative of 75 00:04:17,600 --> 00:04:21,040 Speaker 1: Apple computers and the money and everything else that that 76 00:04:21,040 --> 00:04:25,719 Speaker 1: that change changes hands. They go to Apple computers. But 77 00:04:25,800 --> 00:04:28,800 Speaker 1: Apple computers in itself can't really be observed. There's nothing there. 78 00:04:29,200 --> 00:04:30,960 Speaker 1: And the economy is the same thing. It's really just 79 00:04:31,240 --> 00:04:36,320 Speaker 1: a a term used to to describe all of us 80 00:04:36,920 --> 00:04:41,840 Speaker 1: engaging in economic affairs. So it's just just people and 81 00:04:41,960 --> 00:04:47,480 Speaker 1: stuff really mm hmm yeah, And it's it's like, uh, 82 00:04:47,760 --> 00:04:51,520 Speaker 1: any actions that have any economic influences are like you know, 83 00:04:51,680 --> 00:04:56,280 Speaker 1: exchanges that take place. So really, when we say the economy, um, 84 00:04:56,360 --> 00:05:00,600 Speaker 1: we're basically trying to come up with a word that 85 00:05:00,720 --> 00:05:06,240 Speaker 1: describes the aggregate of most human actions. It's like that's 86 00:05:06,520 --> 00:05:09,400 Speaker 1: it's many times not a very helpful thing to just 87 00:05:09,520 --> 00:05:12,159 Speaker 1: try and look at something like the economy and try 88 00:05:12,160 --> 00:05:14,239 Speaker 1: and control it, because it's like, well, that's just everything 89 00:05:14,279 --> 00:05:19,400 Speaker 1: people do. Yeah, exactly, And where do you draw the line? 90 00:05:19,520 --> 00:05:23,200 Speaker 1: What's the difference between economy and society? For instance, the 91 00:05:23,240 --> 00:05:27,320 Speaker 1: society is well, it's us people. Okay, what is the economy? 92 00:05:27,320 --> 00:05:30,839 Speaker 1: It's us people? Because what is the difference? It's my 93 00:05:31,000 --> 00:05:33,440 Speaker 1: mowing my neighbor's law. And is that part of society? 94 00:05:33,560 --> 00:05:36,080 Speaker 1: Is that the economy? What if I get paid? What 95 00:05:36,160 --> 00:05:40,160 Speaker 1: if we exchange services? So I usually mow his lawn 96 00:05:40,440 --> 00:05:42,400 Speaker 1: and he usually fixes my car when I need to? 97 00:05:42,880 --> 00:05:46,040 Speaker 1: Is that an economic transaction or is suggest a social relationship? 98 00:05:46,200 --> 00:05:49,160 Speaker 1: You can t really you can really tell. So the 99 00:05:49,480 --> 00:05:52,760 Speaker 1: question I guess is it is the society and the 100 00:05:52,800 --> 00:05:56,400 Speaker 1: economy of different things or the just two perspectives of 101 00:05:56,440 --> 00:05:58,719 Speaker 1: the same thing. And would I would lean towards the 102 00:05:58,760 --> 00:06:01,719 Speaker 1: ladder that the econom of me? It's really just society. 103 00:06:03,040 --> 00:06:06,039 Speaker 1: But in society when when we think about goods and 104 00:06:06,120 --> 00:06:11,920 Speaker 1: services more than perhaps just social relationships, h yeah, yeah, 105 00:06:11,960 --> 00:06:18,520 Speaker 1: I agree. Okay, So speaking of these uh, social relationships. UM. 106 00:06:18,520 --> 00:06:23,159 Speaker 1: From an economic or financial standpoint, UM, many people talk 107 00:06:23,240 --> 00:06:29,240 Speaker 1: about broad policies, prices, inflation, monetary policy, things that influence 108 00:06:29,760 --> 00:06:34,080 Speaker 1: many people's behaviors. But at an individual level, what most 109 00:06:34,120 --> 00:06:38,600 Speaker 1: people care about, UM is there, you know, selfishly being 110 00:06:38,640 --> 00:06:41,480 Speaker 1: able to get more of what they want. Basically, like 111 00:06:42,040 --> 00:06:44,920 Speaker 1: I'm voting for somebody, I'm trying to learn something, get 112 00:06:44,920 --> 00:06:50,320 Speaker 1: a job, save, invest in order to become more wealthy myself. Ultimately, 113 00:06:50,400 --> 00:06:53,360 Speaker 1: at the end of the day, that's what drives most people. 114 00:06:53,640 --> 00:06:57,960 Speaker 1: So with that, there's basically two kind of two kinds 115 00:06:58,000 --> 00:07:00,680 Speaker 1: of outlooks. One outlook says there's a fixed amount of 116 00:07:00,680 --> 00:07:04,360 Speaker 1: wealth and some people have more of it, therefore we 117 00:07:04,400 --> 00:07:07,080 Speaker 1: should take some of it because there's only a fixed 118 00:07:07,080 --> 00:07:10,960 Speaker 1: amount available. The other perspective says, UM, there's not a 119 00:07:11,040 --> 00:07:15,040 Speaker 1: fixed amount. Wealth can be created or destroyed UM, which 120 00:07:15,120 --> 00:07:18,400 Speaker 1: means that if we, you know, have the right policies 121 00:07:18,520 --> 00:07:22,800 Speaker 1: or the lack of them, UM, maybe everybody could be rich. Um. 122 00:07:22,920 --> 00:07:27,360 Speaker 1: Which one of these is? Is is true? And why 123 00:07:27,400 --> 00:07:33,280 Speaker 1: does it seem like it um accords with reality? More? Well, 124 00:07:33,320 --> 00:07:36,840 Speaker 1: I mean the obvious, Well it's not obvious, but to 125 00:07:36,880 --> 00:07:40,760 Speaker 1: me it's obvious. The true version is that we create 126 00:07:40,760 --> 00:07:45,640 Speaker 1: wealth and we create prosperity, so it's not a fixed 127 00:07:45,640 --> 00:07:49,520 Speaker 1: size pie. Instead, we're the pious expanding with our actions. 128 00:07:50,360 --> 00:07:52,800 Speaker 1: Uh it I mean that the other side they have 129 00:07:52,920 --> 00:07:55,960 Speaker 1: a point in terms of well, this is the planet 130 00:07:56,080 --> 00:07:59,840 Speaker 1: we live on, and the planet doesn't actually grow, so 131 00:08:00,080 --> 00:08:04,320 Speaker 1: the natural resources in that sense, they don't change. They 132 00:08:04,560 --> 00:08:07,320 Speaker 1: are the same in terms of the atoms and molecules 133 00:08:07,360 --> 00:08:10,800 Speaker 1: and stuff like that, right, But in terms of value 134 00:08:11,400 --> 00:08:13,400 Speaker 1: it is very different. Because in terms of value, every 135 00:08:13,400 --> 00:08:16,720 Speaker 1: exchange means there's more value around. And what I mean 136 00:08:16,760 --> 00:08:18,920 Speaker 1: by that is simply that when you and I exchange, 137 00:08:19,560 --> 00:08:21,800 Speaker 1: we do so because both of us expect to be 138 00:08:21,800 --> 00:08:25,600 Speaker 1: better off. So the reason that I exchange whatever I 139 00:08:25,680 --> 00:08:28,160 Speaker 1: have for what you have is that I want what 140 00:08:28,280 --> 00:08:31,160 Speaker 1: you have more than what I have, and vice versa. 141 00:08:31,560 --> 00:08:35,160 Speaker 1: So we're both better off there in terms of satisfaction. 142 00:08:37,080 --> 00:08:40,280 Speaker 1: Wealth in society in that sense has it has increased 143 00:08:40,320 --> 00:08:43,959 Speaker 1: because of our exchange. And of course if you think 144 00:08:44,000 --> 00:08:48,160 Speaker 1: about the other side, then well also things haven't changed. Well, 145 00:08:48,800 --> 00:08:52,839 Speaker 1: not with this exchange necessarily, but with production it does. Right. 146 00:08:52,880 --> 00:08:55,880 Speaker 1: So because we learn things, and because we tamper with things, 147 00:08:55,880 --> 00:08:59,440 Speaker 1: and because we change things an audible bill is much 148 00:08:59,440 --> 00:09:02,960 Speaker 1: more useful to us than a bunch of say iron 149 00:09:03,040 --> 00:09:07,480 Speaker 1: and iron in the ground and rubber in some trees somewhere, 150 00:09:08,240 --> 00:09:10,680 Speaker 1: because we combine these and we change these so that 151 00:09:10,720 --> 00:09:13,280 Speaker 1: they're very useful to us. So we can make all 152 00:09:13,400 --> 00:09:17,319 Speaker 1: these natural resources much more useful. And a good example 153 00:09:17,360 --> 00:09:20,520 Speaker 1: of this is oil, because oil hasn't really changed for 154 00:09:20,679 --> 00:09:23,960 Speaker 1: hundreds or thousands or hundreds of thousands of years. It 155 00:09:24,080 --> 00:09:27,080 Speaker 1: was always the same. The natural resources the same. The 156 00:09:27,080 --> 00:09:30,839 Speaker 1: economic resource, however, is very different. So a couple of 157 00:09:30,920 --> 00:09:35,520 Speaker 1: hundred years ago, if you would say, drill uh for 158 00:09:35,520 --> 00:09:38,160 Speaker 1: for water, to have a new well on your land 159 00:09:38,400 --> 00:09:41,120 Speaker 1: as a farmer, because most people were farmers and you 160 00:09:41,200 --> 00:09:46,559 Speaker 1: found oil, well, that would poison the well, poison your land, uh, 161 00:09:46,600 --> 00:09:49,199 Speaker 1: And you would probably starve and you would be very 162 00:09:49,200 --> 00:09:54,080 Speaker 1: poor because ship you get this black, gooey mess that 163 00:09:54,200 --> 00:09:57,600 Speaker 1: is toxic that you can't use, and now everything is 164 00:09:57,640 --> 00:10:00,520 Speaker 1: just destroyed. And of course no one, no one will 165 00:10:00,640 --> 00:10:03,080 Speaker 1: will want to buy your land either, because well, if 166 00:10:03,120 --> 00:10:04,640 Speaker 1: you get a lot of oil on your land, so 167 00:10:04,679 --> 00:10:08,840 Speaker 1: who would want it. Then we invented petroleum and the 168 00:10:08,840 --> 00:10:13,040 Speaker 1: internal combustion engine, so suddenly we could harness the power 169 00:10:13,120 --> 00:10:14,839 Speaker 1: that was in there. What we didn't understand it before. 170 00:10:15,760 --> 00:10:18,320 Speaker 1: The oil is the same, the land is the same, 171 00:10:18,640 --> 00:10:20,840 Speaker 1: The action might be the same. It might still be 172 00:10:20,920 --> 00:10:24,560 Speaker 1: drilling for water and we strike oil today we would 173 00:10:24,600 --> 00:10:29,880 Speaker 1: say yes, oil, I'm rich, right, And the only difference 174 00:10:29,960 --> 00:10:32,160 Speaker 1: is that now we know how to use this resource 175 00:10:32,720 --> 00:10:35,960 Speaker 1: and now we can sort of change this resource into 176 00:10:36,000 --> 00:10:38,480 Speaker 1: something that is very useful to us and and can 177 00:10:39,440 --> 00:10:42,520 Speaker 1: make a lot of people's lives much better because we 178 00:10:42,600 --> 00:10:46,400 Speaker 1: can produce plastics that are used in hospitals and whatever else, 179 00:10:46,679 --> 00:10:49,640 Speaker 1: and we can produce fuel that can take us from 180 00:10:49,800 --> 00:10:52,560 Speaker 1: from one place to another and traveling space and what 181 00:10:52,720 --> 00:10:56,240 Speaker 1: have you. Write. We we just are able to make 182 00:10:56,360 --> 00:10:59,400 Speaker 1: the world so much better for us. And that is 183 00:10:59,800 --> 00:11:03,840 Speaker 1: that as wealth and the definition I'm using, But we're 184 00:11:03,880 --> 00:11:08,440 Speaker 1: able to satisfy more wants. That's this ability because we 185 00:11:08,480 --> 00:11:12,120 Speaker 1: have the tools necessary, We have the resources necessarily capital 186 00:11:12,320 --> 00:11:16,880 Speaker 1: to use economics lingo. We have that available, so we 187 00:11:16,960 --> 00:11:20,400 Speaker 1: are much more productive and can satisfy more people's wants. 188 00:11:20,960 --> 00:11:26,079 Speaker 1: That is wealth itself. It's not the atoms themselves or molecules. 189 00:11:26,120 --> 00:11:30,559 Speaker 1: It's how we can satisfy people on their own terms. Yeah, man, 190 00:11:30,720 --> 00:11:33,080 Speaker 1: so many thoughts come into my mind there about that 191 00:11:33,440 --> 00:11:36,120 Speaker 1: everything that you just said, they're like, um, even the 192 00:11:36,160 --> 00:11:39,800 Speaker 1: reasons like if you take a resource like uh, you know, 193 00:11:39,920 --> 00:11:43,120 Speaker 1: like cattle or sheep or chickens, you look at like 194 00:11:43,160 --> 00:11:46,200 Speaker 1: the story in the Gulag Archipelago, it's like you put 195 00:11:46,240 --> 00:11:49,480 Speaker 1: the wrong people in charge of those resources and they 196 00:11:49,520 --> 00:11:52,200 Speaker 1: go away and millions of people starved. And I think 197 00:11:52,520 --> 00:11:55,359 Speaker 1: in that, you know, I don't think the animal population 198 00:11:55,400 --> 00:11:57,320 Speaker 1: to this day has recovered to the point that it 199 00:11:57,400 --> 00:12:01,559 Speaker 1: was at um at prior um and so uh and 200 00:12:02,360 --> 00:12:04,920 Speaker 1: so it's it's about the information and the ability to 201 00:12:05,720 --> 00:12:10,160 Speaker 1: utilize the resources um uh in a in a way 202 00:12:10,200 --> 00:12:12,880 Speaker 1: that solves more people's wants and needs rather than less. 203 00:12:13,040 --> 00:12:17,000 Speaker 1: Uranium is another example. You mentioned the oil uranium, same thing. 204 00:12:17,000 --> 00:12:18,920 Speaker 1: It was just a rock for all of human history, 205 00:12:19,080 --> 00:12:21,240 Speaker 1: and then we discovered what you could do with it. 206 00:12:21,400 --> 00:12:24,719 Speaker 1: Now it turns into an extremely valuable resource to be 207 00:12:24,760 --> 00:12:28,160 Speaker 1: able to produce energy, which again can solve more wants 208 00:12:28,200 --> 00:12:32,080 Speaker 1: and needs um and uh. And then it brings to 209 00:12:32,240 --> 00:12:35,120 Speaker 1: mind the thought of the most people think, Hey, if 210 00:12:35,120 --> 00:12:37,800 Speaker 1: I want to become wealthier or richer than my dollar 211 00:12:37,920 --> 00:12:40,319 Speaker 1: value has to go up. Um and so a lot 212 00:12:40,320 --> 00:12:44,960 Speaker 1: of people then talk about unlimited economic growth is not feasible, 213 00:12:45,120 --> 00:12:49,400 Speaker 1: is not sustainable because um, not everybody can have you know, 214 00:12:49,640 --> 00:12:52,640 Speaker 1: millions and millions of dollars. But that's not actually what 215 00:12:52,760 --> 00:12:56,520 Speaker 1: real wealth is. You can get wealthier with the dollar 216 00:12:56,600 --> 00:13:00,480 Speaker 1: amount even staying the same or decreasing on net. Is 217 00:13:00,520 --> 00:13:05,400 Speaker 1: that right? Yeah, absolutely, there's one of these things that 218 00:13:05,840 --> 00:13:08,480 Speaker 1: people tend to use thinking that there that makes them 219 00:13:08,840 --> 00:13:11,440 Speaker 1: seem really smart or clever. Saying that you can't have 220 00:13:11,559 --> 00:13:17,280 Speaker 1: infinite growth in a finite world, well, it sounds at 221 00:13:17,280 --> 00:13:21,400 Speaker 1: the face of it, it sounds obvious, but it's it's 222 00:13:21,440 --> 00:13:26,240 Speaker 1: also very wrong, and it's wrong because wealth and economic 223 00:13:26,280 --> 00:13:30,880 Speaker 1: growth really is about our ability to satisfy wants, and 224 00:13:30,960 --> 00:13:34,360 Speaker 1: we can always improve. There are always better ways of 225 00:13:34,360 --> 00:13:37,600 Speaker 1: of of satisfying people's wants and figuring out other wants 226 00:13:37,679 --> 00:13:41,040 Speaker 1: that can be satisfied. Even if and I would say, 227 00:13:41,040 --> 00:13:45,920 Speaker 1: even because the world is finite, we can always figure 228 00:13:45,920 --> 00:13:48,960 Speaker 1: out a better way to use it. Mm hm. So 229 00:13:49,400 --> 00:13:54,120 Speaker 1: it had had the world been infinite itself, then it 230 00:13:54,160 --> 00:13:56,960 Speaker 1: doesn't really matter how we economize, It doesn't really matter 231 00:13:57,000 --> 00:14:00,960 Speaker 1: how what we invent and so forth. But because it 232 00:14:01,080 --> 00:14:04,840 Speaker 1: is finite, we have to think carefully. We have to economize, 233 00:14:04,880 --> 00:14:07,240 Speaker 1: We have to figure out new ways of using things 234 00:14:07,520 --> 00:14:09,880 Speaker 1: so that we can satisfy our wants, so we can 235 00:14:09,880 --> 00:14:13,199 Speaker 1: satisfy more people's wants and more of their wants to 236 00:14:13,480 --> 00:14:16,880 Speaker 1: with the same resources, and even in the sense we 237 00:14:16,920 --> 00:14:21,520 Speaker 1: can satisfy the same wants with less resources, and that's growth. 238 00:14:22,240 --> 00:14:25,400 Speaker 1: Economic growth doesn't really have to do with with GDP. 239 00:14:25,680 --> 00:14:29,000 Speaker 1: That's just an attempted measure of it. But it's really 240 00:14:29,000 --> 00:14:32,360 Speaker 1: the satisfaction that we're able to create um and and 241 00:14:32,440 --> 00:14:38,080 Speaker 1: the increased ability to satisfy wants. That is economic growth. 242 00:14:38,440 --> 00:14:44,520 Speaker 1: And that is something that will never ever reach a ceiling. 243 00:14:45,240 --> 00:14:48,040 Speaker 1: It will always we can always expand it. What what 244 00:14:48,160 --> 00:14:53,440 Speaker 1: limits us is really human ingenuity. Well, and I think 245 00:14:53,560 --> 00:14:59,560 Speaker 1: that right there is even more of the more of 246 00:14:59,800 --> 00:15:03,840 Speaker 1: a hard ceiling on wealth creation because when we talk 247 00:15:03,880 --> 00:15:06,480 Speaker 1: about you know, like in a world of find that resources, well, 248 00:15:06,960 --> 00:15:08,840 Speaker 1: if you want to get really technical, we have an 249 00:15:08,960 --> 00:15:11,680 Speaker 1: entire universe full of resources out there. There are stars, 250 00:15:11,720 --> 00:15:14,400 Speaker 1: there are planets, they're asteroids. I mean, we've got we 251 00:15:14,560 --> 00:15:17,000 Speaker 1: we if we really want to get we do have 252 00:15:17,680 --> 00:15:23,880 Speaker 1: from our own perspective, basically infinite resources that are theoretically available, 253 00:15:24,120 --> 00:15:29,960 Speaker 1: but there are constraints on accessing those resources because number one, 254 00:15:30,600 --> 00:15:34,320 Speaker 1: it takes the utilization of resources to get those resources, 255 00:15:34,360 --> 00:15:37,040 Speaker 1: Like it takes energy to pull oil out of the ground. 256 00:15:37,280 --> 00:15:39,800 Speaker 1: It takes a lot of energy to go to outer 257 00:15:39,920 --> 00:15:43,720 Speaker 1: space and mine and asteroid. And so there are time 258 00:15:43,800 --> 00:15:49,640 Speaker 1: and resource constraints on accessing even infinite resources. And so 259 00:15:49,720 --> 00:15:53,400 Speaker 1: the human ingenuity and the actions and the prioritization of 260 00:15:53,440 --> 00:15:58,760 Speaker 1: that um present their own constraints. Yeah, exactly. And and 261 00:15:58,760 --> 00:16:02,960 Speaker 1: that's also why ecomic growth is cumulative m right, because 262 00:16:03,080 --> 00:16:06,520 Speaker 1: because we're learning from what we're doing. And then because 263 00:16:06,560 --> 00:16:08,200 Speaker 1: there are so many of us, and we all have 264 00:16:08,240 --> 00:16:10,680 Speaker 1: different perspectives and know a little different things and see 265 00:16:10,720 --> 00:16:13,840 Speaker 1: different things. Right, So if I, if I figure out 266 00:16:13,840 --> 00:16:16,640 Speaker 1: a solution to a certain problem, someone else will see 267 00:16:16,640 --> 00:16:18,520 Speaker 1: the solution. Go await a minute, I can I can 268 00:16:18,560 --> 00:16:21,320 Speaker 1: tweak that and use it for another solution, or I 269 00:16:21,360 --> 00:16:24,120 Speaker 1: can I think I can use this in a different 270 00:16:24,120 --> 00:16:28,240 Speaker 1: way to produce a better or more productive solution. Right, So, 271 00:16:28,240 --> 00:16:32,880 Speaker 1: so we're really reacting to what was before. So the 272 00:16:33,160 --> 00:16:37,680 Speaker 1: wealth of society, which defined as the ability to satisfy wants, 273 00:16:38,360 --> 00:16:41,880 Speaker 1: it's cumulative. The reason some some countries have taken off 274 00:16:41,880 --> 00:16:44,200 Speaker 1: and are super rich today and will be much much 275 00:16:44,280 --> 00:16:48,800 Speaker 1: richer in in the future. Is because there is so 276 00:16:48,880 --> 00:16:53,920 Speaker 1: much of this these solutions already embodied in the capital 277 00:16:53,960 --> 00:16:58,760 Speaker 1: stock of the society in terms of infrastructure and buildings 278 00:16:58,840 --> 00:17:02,920 Speaker 1: and machines and education and science and all of this 279 00:17:03,000 --> 00:17:07,720 Speaker 1: stuff that we will build off of, and future generations 280 00:17:07,720 --> 00:17:09,960 Speaker 1: will take this as starting point and they will figure 281 00:17:10,000 --> 00:17:12,560 Speaker 1: out new ways of using that knowledge and how to 282 00:17:12,600 --> 00:17:16,400 Speaker 1: contribute to it as well. One of my favorite stories 283 00:17:16,720 --> 00:17:20,600 Speaker 1: that highlights what you just said is the creation of 284 00:17:20,680 --> 00:17:23,760 Speaker 1: the Walkman, the Sony Walkman. How Um. I don't know 285 00:17:23,800 --> 00:17:26,080 Speaker 1: if you know this story, but he was. He noticed 286 00:17:26,119 --> 00:17:29,520 Speaker 1: that people were using his their tape recorders. They would 287 00:17:29,520 --> 00:17:34,280 Speaker 1: record music and then they would play it back on 288 00:17:34,320 --> 00:17:37,359 Speaker 1: their headphones in order to listen to music. And he realized, Hey, 289 00:17:37,760 --> 00:17:41,399 Speaker 1: if all I do here is I uh eliminate the 290 00:17:41,440 --> 00:17:44,760 Speaker 1: ability to actually record, but I have the exact same 291 00:17:44,800 --> 00:17:48,160 Speaker 1: device and I marketed as a portable music player, then 292 00:17:48,200 --> 00:17:50,240 Speaker 1: everybody will get what they want and it will actually 293 00:17:50,560 --> 00:17:53,680 Speaker 1: use less resources from me to be able to provide 294 00:17:54,240 --> 00:17:56,240 Speaker 1: the value that people are are wanting. And that was 295 00:17:56,320 --> 00:18:01,280 Speaker 1: the birth of the revolution of personal personal music, a player, um, 296 00:18:01,480 --> 00:18:05,120 Speaker 1: and it took less resources to create a lot more 297 00:18:05,440 --> 00:18:09,560 Speaker 1: wealth solving a lot more wants. Yeah, now that's that's awesome. 298 00:18:09,880 --> 00:18:13,200 Speaker 1: And I mean it's not really about I mean to 299 00:18:13,800 --> 00:18:17,000 Speaker 1: get back to GDP economic growth. It's not really about 300 00:18:17,320 --> 00:18:21,359 Speaker 1: using resources either. It could be simply not using resource 301 00:18:21,359 --> 00:18:24,840 Speaker 1: because satisfying our wants doesn't require that we use resources, 302 00:18:25,440 --> 00:18:29,680 Speaker 1: or satisfying a greater want could use less resources than 303 00:18:29,760 --> 00:18:34,480 Speaker 1: we used to satisfy it smaller want before. So one 304 00:18:34,520 --> 00:18:37,119 Speaker 1: of the things right now with that, a lot of 305 00:18:37,160 --> 00:18:39,399 Speaker 1: the rich people are doing, they're they're trying to find 306 00:18:39,720 --> 00:18:45,600 Speaker 1: and they're buying like their own islands. Because privacy and 307 00:18:45,680 --> 00:18:49,239 Speaker 1: having a space where you're not interrupted and disturbed is 308 00:18:49,640 --> 00:18:52,159 Speaker 1: sort of a luxury good, especially if you're in I 309 00:18:52,200 --> 00:18:54,200 Speaker 1: don't know, if you're in New York City and whatever else. 310 00:18:54,240 --> 00:18:55,960 Speaker 1: There are people all over the place and there's always 311 00:18:55,960 --> 00:18:58,359 Speaker 1: noises and stuff. So it's a luxury and you're a 312 00:18:58,560 --> 00:19:01,119 Speaker 1: you're willing to pay a lot to just for a 313 00:19:01,920 --> 00:19:03,920 Speaker 1: week or a month or half the year or whatever, 314 00:19:04,600 --> 00:19:06,919 Speaker 1: spend time in a place where you're not bothered by 315 00:19:06,960 --> 00:19:11,640 Speaker 1: anyone and where where there are no sounds unless the sounds, 316 00:19:11,720 --> 00:19:14,080 Speaker 1: but it's just the sounds that you make basically, and 317 00:19:14,160 --> 00:19:18,199 Speaker 1: maybe the waves or something, and that's something that that 318 00:19:18,400 --> 00:19:24,240 Speaker 1: is highest on your once ranking that is not satisfied 319 00:19:24,359 --> 00:19:26,280 Speaker 1: at that moment, so they're willing to pay a whole 320 00:19:26,280 --> 00:19:29,840 Speaker 1: lot for that. And how much resources does that take? 321 00:19:30,040 --> 00:19:33,240 Speaker 1: It doesn't. It just takes moving you from your current 322 00:19:33,280 --> 00:19:36,480 Speaker 1: location to another location, so you don't have to actually 323 00:19:36,920 --> 00:19:39,920 Speaker 1: build anything, you don't have to consume anything, and so forth. 324 00:19:40,520 --> 00:19:42,840 Speaker 1: And it might take less of resources to have you 325 00:19:42,920 --> 00:19:45,919 Speaker 1: on that island in the hut or whatever, then have 326 00:19:46,040 --> 00:19:51,040 Speaker 1: you in Manhattan in a in an apartment and ride 327 00:19:51,040 --> 00:19:52,800 Speaker 1: the elevator up and down and be in a car 328 00:19:52,880 --> 00:19:56,760 Speaker 1: and whatever else. So it's I think GDP is sort 329 00:19:56,800 --> 00:20:00,200 Speaker 1: of it's it's created a problem because it's not a 330 00:20:00,240 --> 00:20:04,560 Speaker 1: very good measure of economic growth, and people have focused 331 00:20:04,600 --> 00:20:09,560 Speaker 1: so intently on GDP the measure, the metric, rather than 332 00:20:09,640 --> 00:20:14,200 Speaker 1: on what it's supposed to measure. So people think that 333 00:20:14,440 --> 00:20:17,480 Speaker 1: it takes resources and we have to do to consume 334 00:20:17,680 --> 00:20:22,399 Speaker 1: resources to become better off. There's no such constant relationship 335 00:20:22,480 --> 00:20:27,040 Speaker 1: at all between resource resource usage and satisfaction, that is, 336 00:20:27,080 --> 00:20:31,840 Speaker 1: between resource usage and wealth or prosperity. There's no such 337 00:20:32,240 --> 00:20:38,119 Speaker 1: such a uh constant relationship at all. And you've you've 338 00:20:38,160 --> 00:20:40,320 Speaker 1: talked about the example in the past where you have 339 00:20:40,400 --> 00:20:45,760 Speaker 1: two people who uh you know, have an abundance in 340 00:20:46,960 --> 00:20:50,880 Speaker 1: uh different items, Um, they can swap some of those 341 00:20:50,920 --> 00:20:54,480 Speaker 1: items with each other. That actually creates value. When when 342 00:20:55,240 --> 00:20:59,040 Speaker 1: the total stock of wealth in that close economy never 343 00:20:59,119 --> 00:21:02,600 Speaker 1: changed by because they exchange with each other, there is 344 00:21:02,600 --> 00:21:05,719 Speaker 1: an actual creation of more value than there was before 345 00:21:05,960 --> 00:21:10,280 Speaker 1: the exchange took place. You can explain that, Yeah, absolutely, 346 00:21:10,400 --> 00:21:14,719 Speaker 1: So it's it's probably useful to think of it in 347 00:21:14,840 --> 00:21:18,720 Speaker 1: terms of of sort of objective usages of things because 348 00:21:18,720 --> 00:21:22,840 Speaker 1: it's easier to see, but it's really subjectively thinking. So 349 00:21:22,880 --> 00:21:25,919 Speaker 1: it's it's it's really how you feel about things. But 350 00:21:26,080 --> 00:21:29,480 Speaker 1: if you think of say tomorrow, there's a carpenter and 351 00:21:29,480 --> 00:21:32,000 Speaker 1: there's a baker, and the carpenter wakes up and he 352 00:21:32,040 --> 00:21:34,119 Speaker 1: has a bunch of flour, and then he has some 353 00:21:34,359 --> 00:21:36,720 Speaker 1: tools and whatever else. And the baker wakes up and 354 00:21:36,760 --> 00:21:38,640 Speaker 1: he has a bunch of hammers, and then he has 355 00:21:38,680 --> 00:21:42,440 Speaker 1: some some flower and used and whatnot else. But to 356 00:21:42,600 --> 00:21:45,920 Speaker 1: the baker that the hammers are not very useful in 357 00:21:46,040 --> 00:21:48,879 Speaker 1: his line of business. To the carpenter, the flower is 358 00:21:48,920 --> 00:21:52,960 Speaker 1: not very useful. So obviously if they would meet and exchange, 359 00:21:53,640 --> 00:21:56,200 Speaker 1: so the carpenter gets the hammers and the baker gets 360 00:21:56,280 --> 00:21:59,639 Speaker 1: the flower, they would find them most much more useful 361 00:22:00,000 --> 00:22:01,639 Speaker 1: and they would be able to sell more product and 362 00:22:01,720 --> 00:22:05,000 Speaker 1: what not else. Right, So that that's pretty obviously well 363 00:22:05,080 --> 00:22:08,520 Speaker 1: just an exchange, and they do exchange because they expect 364 00:22:08,640 --> 00:22:12,600 Speaker 1: this greater value. Mm hmm. Now this is a hammer 365 00:22:12,680 --> 00:22:16,480 Speaker 1: is pretty obviously useful for a carpenter, and a and 366 00:22:16,720 --> 00:22:21,080 Speaker 1: flowers obviously useful for bakers. Is so everybody can sort 367 00:22:21,080 --> 00:22:23,119 Speaker 1: of agree with this, but it doesn't have to be 368 00:22:23,240 --> 00:22:26,000 Speaker 1: that way, right, I can exchange something that I don't 369 00:22:26,080 --> 00:22:31,119 Speaker 1: feel very strongly about with you for something that's that 370 00:22:31,960 --> 00:22:33,760 Speaker 1: you don't feel very strong but but I really like 371 00:22:33,880 --> 00:22:36,440 Speaker 1: it for whatever reason. It could be baseball cards or 372 00:22:37,119 --> 00:22:40,399 Speaker 1: or whatever else. Right, some people are really wanted. They 373 00:22:40,760 --> 00:22:43,840 Speaker 1: might think it's beautiful, or maybe it fits in their life, 374 00:22:44,040 --> 00:22:47,600 Speaker 1: or or whatever it might be on their own terms, right, 375 00:22:48,200 --> 00:22:51,639 Speaker 1: but their satisfaction will go up through engaging in this exchange. 376 00:22:52,040 --> 00:22:57,440 Speaker 1: And any voluntary exchange is a positive some game because 377 00:22:57,520 --> 00:23:01,680 Speaker 1: both parties necessarily expect to be better off in some 378 00:23:01,920 --> 00:23:05,280 Speaker 1: personal sense, or they wouldn't do it. There's no reason 379 00:23:05,320 --> 00:23:08,440 Speaker 1: why we would would engage in exchange unless we think 380 00:23:08,560 --> 00:23:11,639 Speaker 1: that it's better on our own terms. It could be 381 00:23:11,720 --> 00:23:14,600 Speaker 1: such things as charity too. What do people give away 382 00:23:14,640 --> 00:23:18,479 Speaker 1: money to two people who are are poorer people who 383 00:23:18,640 --> 00:23:23,640 Speaker 1: they think need it. Well, it's because they get satisfaction 384 00:23:23,880 --> 00:23:28,080 Speaker 1: from knowing that they helped h right, So so they 385 00:23:28,119 --> 00:23:30,440 Speaker 1: are better off with less money in this case because 386 00:23:30,520 --> 00:23:32,720 Speaker 1: they know that this this money made a difference in 387 00:23:32,840 --> 00:23:36,840 Speaker 1: someone's life. So that's the sort of an exchange between 388 00:23:36,880 --> 00:23:40,000 Speaker 1: two situations. But if you just count the money, you 389 00:23:40,000 --> 00:23:43,760 Speaker 1: would go, well, you're worse off. But on their own terms, 390 00:23:43,800 --> 00:23:46,639 Speaker 1: there was And no I'm not because I know that 391 00:23:46,720 --> 00:23:48,680 Speaker 1: I made a difference in this person's life, where I 392 00:23:49,240 --> 00:23:52,359 Speaker 1: saved this dog from euthanasia or whatever it might be. Right, 393 00:23:53,080 --> 00:23:55,200 Speaker 1: I made a difference in the world, and that's so 394 00:23:55,400 --> 00:23:59,400 Speaker 1: much more worth, so much more to me than having 395 00:23:59,560 --> 00:24:03,920 Speaker 1: those dollars whatever it might be. Yeah. Yeah, So for 396 00:24:04,200 --> 00:24:08,240 Speaker 1: for everybody listening, I'm gonna talk about a picture hanging 397 00:24:08,280 --> 00:24:09,879 Speaker 1: on the wall behind me as an example of this. 398 00:24:10,320 --> 00:24:13,240 Speaker 1: Um you can see it on my on my YouTube videos. 399 00:24:13,320 --> 00:24:15,520 Speaker 1: But this Picture on the Wall is a great example 400 00:24:15,560 --> 00:24:18,800 Speaker 1: of that because when I first when I first saw it, 401 00:24:19,119 --> 00:24:22,520 Speaker 1: I contacted the artist and it was more money than 402 00:24:22,920 --> 00:24:26,280 Speaker 1: I wanted to be spending on a piece of art 403 00:24:26,520 --> 00:24:28,920 Speaker 1: at the time. Um, And so I really liked it. 404 00:24:28,960 --> 00:24:31,919 Speaker 1: I really wanted it, but comparing it to how much 405 00:24:32,000 --> 00:24:35,280 Speaker 1: I wanted those dollars, I wanted the dollars more. And 406 00:24:35,359 --> 00:24:37,040 Speaker 1: then it got to a point it was I think 407 00:24:37,080 --> 00:24:40,119 Speaker 1: it was about two years later where that had changed, 408 00:24:40,359 --> 00:24:43,640 Speaker 1: and uh, now the paint or the portrait was worth 409 00:24:43,760 --> 00:24:47,040 Speaker 1: more to me than those dollars were because I had 410 00:24:47,280 --> 00:24:51,040 Speaker 1: more dollars, um. And so then the exchange took place. 411 00:24:51,119 --> 00:24:53,560 Speaker 1: And I'm sure the artist feels much better off because 412 00:24:53,960 --> 00:24:55,720 Speaker 1: he didn't have to do extra work and he was 413 00:24:55,800 --> 00:24:58,200 Speaker 1: able to make a sale. And UM, I feel much 414 00:24:58,240 --> 00:25:00,440 Speaker 1: better off because now I have something that gives me 415 00:25:00,520 --> 00:25:03,639 Speaker 1: inspiration that I can see every day. Um. But it 416 00:25:03,880 --> 00:25:07,760 Speaker 1: wasn't objectively so that these were more or less valuable 417 00:25:07,800 --> 00:25:13,480 Speaker 1: in each other. Just circumstances changed and marginal wants and 418 00:25:13,560 --> 00:25:18,800 Speaker 1: subjective values changed. Yeah. Absolutely, And I mean that's that's 419 00:25:18,840 --> 00:25:23,200 Speaker 1: an that's a good example too, because nothing objectively changed 420 00:25:23,280 --> 00:25:29,199 Speaker 1: between those two situations. Really right, your valuation changed. Your 421 00:25:29,280 --> 00:25:35,000 Speaker 1: relative valuation of dollars versus the painting changed, so before 422 00:25:36,280 --> 00:25:39,639 Speaker 1: you would value the dollars more at the price. I mean, 423 00:25:41,040 --> 00:25:43,200 Speaker 1: I'm not sure, but maybe you've paid the price that 424 00:25:43,320 --> 00:25:46,840 Speaker 1: he asked before, right, So the price didn't actually change, 425 00:25:46,960 --> 00:25:50,159 Speaker 1: the number of dollars involved didn't change. But in the 426 00:25:50,400 --> 00:25:53,080 Speaker 1: in the beginning, you value the dollars more than the painting, 427 00:25:53,119 --> 00:25:56,760 Speaker 1: and later it was the other way around. And then 428 00:25:56,800 --> 00:25:58,480 Speaker 1: of course it made sense for you to buy the 429 00:25:58,520 --> 00:26:02,520 Speaker 1: painting because that may get better off in whatever personal sends. 430 00:26:03,080 --> 00:26:06,240 Speaker 1: M hm. So let's go back real quick to the 431 00:26:06,320 --> 00:26:09,200 Speaker 1: example of the hammers and the flower, because obviously that's 432 00:26:09,200 --> 00:26:12,880 Speaker 1: a very obvious example of, you know, resources that would 433 00:26:12,880 --> 00:26:16,119 Speaker 1: be more useful in different people's hands. Um, there are 434 00:26:16,160 --> 00:26:20,159 Speaker 1: many things that are not as obvious. However, economists like 435 00:26:20,359 --> 00:26:24,359 Speaker 1: to think that everything is very obvious like that, And 436 00:26:24,800 --> 00:26:28,640 Speaker 1: especially before when the money printing started in I heard 437 00:26:28,640 --> 00:26:32,240 Speaker 1: a lot of mainstream economists talking about idle resources and 438 00:26:32,359 --> 00:26:36,520 Speaker 1: we need to from the top down cause these resources 439 00:26:36,640 --> 00:26:39,560 Speaker 1: to be used, because they thought of it as if 440 00:26:39,640 --> 00:26:42,080 Speaker 1: it was flower sitting in the hands of a carpenter, 441 00:26:42,520 --> 00:26:45,080 Speaker 1: and so they wanted to control these things and cause 442 00:26:45,160 --> 00:26:48,000 Speaker 1: exchanges to happen um, which a lot of people like 443 00:26:48,080 --> 00:26:50,440 Speaker 1: you and me said would cause misallocations of resources. But 444 00:26:50,880 --> 00:26:53,560 Speaker 1: from from a theoretical standpoint, just looking at it as 445 00:26:53,600 --> 00:26:58,320 Speaker 1: an outside observer, how do we know that whether freedom 446 00:26:58,640 --> 00:27:02,520 Speaker 1: is the optimal path to the distribution of resources versus 447 00:27:03,080 --> 00:27:06,520 Speaker 1: top down control over a system being able to cause 448 00:27:06,640 --> 00:27:10,840 Speaker 1: those things to happen to unlock idle resources. Well, in 449 00:27:10,880 --> 00:27:14,240 Speaker 1: a sense, it's pretty obvious because since value is simply 450 00:27:14,280 --> 00:27:19,439 Speaker 1: the satisfaction of someone's personal want, then either we can 451 00:27:19,520 --> 00:27:22,280 Speaker 1: go the route and say, well, let's just pretend that 452 00:27:22,320 --> 00:27:25,280 Speaker 1: everybody's wants are the same, or let's pretend that we 453 00:27:25,400 --> 00:27:29,119 Speaker 1: know them, and then I the central planner will just 454 00:27:29,320 --> 00:27:34,399 Speaker 1: produce to maximize the ones. Well, I mean you just 455 00:27:34,480 --> 00:27:38,160 Speaker 1: showed with the painting there that well, you're once changed 456 00:27:38,200 --> 00:27:41,760 Speaker 1: over time, the ranking changed over time, and we know 457 00:27:41,880 --> 00:27:44,560 Speaker 1: that people have different wants to so how can the 458 00:27:44,600 --> 00:27:48,560 Speaker 1: central planner No, Well, the center planner cannot know. It's impossible, right, 459 00:27:49,000 --> 00:27:52,040 Speaker 1: And very often I think entrepreneurship is a good example 460 00:27:52,080 --> 00:27:55,760 Speaker 1: of this too, because an entrepreneur will need to invest 461 00:27:55,880 --> 00:27:58,840 Speaker 1: in and start a company and start production and pay 462 00:27:59,320 --> 00:28:03,399 Speaker 1: pay his employees and whatever else before making the first sale, 463 00:28:03,440 --> 00:28:05,119 Speaker 1: because you need to produce this stuff before you can 464 00:28:05,160 --> 00:28:08,320 Speaker 1: sell it typically, right, or unless you have to establish 465 00:28:08,400 --> 00:28:10,320 Speaker 1: something before you can sell it. Well, you don't know 466 00:28:10,440 --> 00:28:13,880 Speaker 1: the value of it. You don't know what consumers will 467 00:28:13,880 --> 00:28:15,800 Speaker 1: be willing to pay for this thing, So you have 468 00:28:15,960 --> 00:28:18,920 Speaker 1: to bear that uncertaint you have to take the risk. Well, 469 00:28:19,080 --> 00:28:24,960 Speaker 1: very often, especially for innovative entrepreneurs, the customer themselves don't 470 00:28:25,080 --> 00:28:28,440 Speaker 1: know that they want it until they see it, all right. So, 471 00:28:29,600 --> 00:28:31,440 Speaker 1: and many of us this this sounds a little weird, 472 00:28:31,480 --> 00:28:33,800 Speaker 1: but many of us have this experience because we go 473 00:28:33,920 --> 00:28:36,159 Speaker 1: to the store a grocery store or whatever, and and 474 00:28:36,200 --> 00:28:38,080 Speaker 1: we sort of have maybe have a list, or we 475 00:28:38,160 --> 00:28:41,040 Speaker 1: have thought, well, I'm going to buy sausages or hot 476 00:28:41,120 --> 00:28:43,960 Speaker 1: dogs or meatballs or whatever. And I go to the 477 00:28:44,040 --> 00:28:46,280 Speaker 1: store and I see something else and they go, h 478 00:28:46,640 --> 00:28:50,800 Speaker 1: that's that's probably better, I'll do that instead. Right, So, 479 00:28:50,880 --> 00:28:53,720 Speaker 1: even when you went into the store, you thought you 480 00:28:53,840 --> 00:28:55,800 Speaker 1: knew what you wanted, then you saw something else and 481 00:28:55,800 --> 00:29:01,280 Speaker 1: you were I'll get that instead. So if people themselves 482 00:29:01,440 --> 00:29:04,280 Speaker 1: don't really know what they want until they see it, 483 00:29:05,000 --> 00:29:09,360 Speaker 1: until they see their options, and obviously someone else can't 484 00:29:09,440 --> 00:29:13,360 Speaker 1: decide for them either. M hm. That's totally impossible. And 485 00:29:13,440 --> 00:29:17,400 Speaker 1: this I think part of the reason why people use 486 00:29:17,440 --> 00:29:22,240 Speaker 1: different terms. So when you talk to advocates for central planning, 487 00:29:23,320 --> 00:29:26,400 Speaker 1: they tend to talk about people's needs and not their wants. 488 00:29:27,080 --> 00:29:31,040 Speaker 1: It might sound like a minor point, but people's wants 489 00:29:31,080 --> 00:29:35,440 Speaker 1: are subjective, and you you can want something that might 490 00:29:35,520 --> 00:29:39,160 Speaker 1: not be objectively for good for your health or your 491 00:29:39,240 --> 00:29:41,920 Speaker 1: longevity or whatever, but you still want it. Right So, 492 00:29:42,040 --> 00:29:44,880 Speaker 1: you you want to smoke, or you want to you 493 00:29:45,000 --> 00:29:49,400 Speaker 1: want to get shipped faced on Saturday, but objectively speaking, 494 00:29:49,440 --> 00:29:51,640 Speaker 1: that might not be the best thing to do in 495 00:29:51,840 --> 00:29:56,760 Speaker 1: terms of health and longevity. Right. So, so once is 496 00:29:56,800 --> 00:29:59,360 Speaker 1: one thing, and how we're acting is to satisfy our wants. 497 00:30:00,400 --> 00:30:03,080 Speaker 1: But needs might be it might be at least it 498 00:30:03,120 --> 00:30:10,080 Speaker 1: sounds like they could be objectively measured. So a proponents 499 00:30:10,160 --> 00:30:13,760 Speaker 1: or advocate of self central planning will typically talk about needs, 500 00:30:14,280 --> 00:30:17,800 Speaker 1: and of course they decide what needs matter, So they 501 00:30:17,920 --> 00:30:21,040 Speaker 1: decide what food and clothes and shelter and things like 502 00:30:21,120 --> 00:30:25,840 Speaker 1: that people should get. So they're sort of they're simplifying 503 00:30:25,920 --> 00:30:28,960 Speaker 1: the problem quite a quite a big deal, quite a 504 00:30:29,000 --> 00:30:33,120 Speaker 1: bit because because they already they decide what people need, 505 00:30:34,040 --> 00:30:36,920 Speaker 1: and they don't get anything but that what they actually 506 00:30:37,080 --> 00:30:40,360 Speaker 1: need according to them in a way, which of course 507 00:30:40,960 --> 00:30:45,520 Speaker 1: it's sidesteps or overrides the problem with well, what people 508 00:30:45,600 --> 00:30:48,520 Speaker 1: actually want and what would make them better off might 509 00:30:48,560 --> 00:30:52,160 Speaker 1: be something else, right, right, And then then if we're 510 00:30:52,200 --> 00:30:54,880 Speaker 1: not even talking about all the problems with central planning 511 00:30:54,960 --> 00:30:59,760 Speaker 1: is sort of a way of of organizing resources in 512 00:30:59,840 --> 00:31:03,600 Speaker 1: the I because that's a huge problem still. But I mean, 513 00:31:03,880 --> 00:31:07,560 Speaker 1: even assuming that that's possible, the central planner has a 514 00:31:07,720 --> 00:31:13,480 Speaker 1: huge problem. Now I'd like to understand a difference here 515 00:31:13,520 --> 00:31:17,200 Speaker 1: because um, and maybe it's just using the same term 516 00:31:17,280 --> 00:31:21,840 Speaker 1: for two entirely separate things, but we're kind of we're 517 00:31:21,880 --> 00:31:24,560 Speaker 1: getting on to the topic of basically like economic prediction. 518 00:31:24,760 --> 00:31:27,680 Speaker 1: So entrepreneurs, that's what they do. They are in the 519 00:31:27,840 --> 00:31:31,360 Speaker 1: business of predicting what people will want to need and 520 00:31:31,440 --> 00:31:34,520 Speaker 1: then taking risks to try and provide for those wants 521 00:31:34,560 --> 00:31:37,200 Speaker 1: and needs and hoping that there will be a profit 522 00:31:37,320 --> 00:31:39,960 Speaker 1: and hopefully if they were wrong, then they have enough 523 00:31:40,200 --> 00:31:43,040 Speaker 1: you know, savings to you know, pivot and keep on 524 00:31:43,200 --> 00:31:48,120 Speaker 1: trying until it works. Uh. Central planners are also and 525 00:31:48,240 --> 00:31:50,800 Speaker 1: by just for anybody who's listening, central planners, I mean 526 00:31:51,040 --> 00:31:53,880 Speaker 1: anybody who's a policymaker and anybody who's you know, the 527 00:31:53,920 --> 00:31:57,320 Speaker 1: Federal Reserve, central banking like it's you know, trying to 528 00:31:57,440 --> 00:32:00,280 Speaker 1: impose something from the top down on the syste them. 529 00:32:00,640 --> 00:32:04,800 Speaker 1: They are also in the business of economic prediction because 530 00:32:04,840 --> 00:32:07,960 Speaker 1: they're saying this is, you know, the data that I'm seeing, 531 00:32:08,720 --> 00:32:10,880 Speaker 1: and we think it would be better whatever they mean 532 00:32:10,920 --> 00:32:13,520 Speaker 1: by better to have you know, one input here, one 533 00:32:13,600 --> 00:32:19,400 Speaker 1: output there. But my question is are these two things 534 00:32:19,520 --> 00:32:22,840 Speaker 1: the same that are both called economic prediction? And then 535 00:32:23,200 --> 00:32:25,680 Speaker 1: number two, is that even possible? Because every time a 536 00:32:25,840 --> 00:32:30,680 Speaker 1: change happens, individuals actions and subjective wants and needs will change. 537 00:32:30,760 --> 00:32:34,160 Speaker 1: So are they the same thing? And is economic prediction 538 00:32:34,240 --> 00:32:38,440 Speaker 1: even possible? Well, I mean there are sort of the 539 00:32:38,520 --> 00:32:40,560 Speaker 1: same thing. That's why we can use the same terms 540 00:32:41,040 --> 00:32:43,840 Speaker 1: because they're they're all trying both trying to figure out 541 00:32:43,880 --> 00:32:47,280 Speaker 1: what the future is like mm hmm. But for the 542 00:32:47,400 --> 00:32:50,320 Speaker 1: entrepreneur there's there's a huge difference. And for the entrepreneur, 543 00:32:50,640 --> 00:32:52,880 Speaker 1: it's trying to figure out what do people actually want? 544 00:32:54,160 --> 00:32:57,520 Speaker 1: How can I satisfy people's actual wants at this future 545 00:32:57,640 --> 00:33:00,480 Speaker 1: point in time? So let me produce this this good 546 00:33:00,560 --> 00:33:04,040 Speaker 1: or service offer it to them and I'm pretty sure 547 00:33:04,120 --> 00:33:05,680 Speaker 1: that they were going to like this a lot, so 548 00:33:05,760 --> 00:33:08,560 Speaker 1: they will buy it from me. But you do not 549 00:33:08,800 --> 00:33:12,440 Speaker 1: decide whether you get to sell. Right, you are still 550 00:33:12,960 --> 00:33:17,640 Speaker 1: attempting to predict to the best degree possible. And if 551 00:33:17,680 --> 00:33:22,200 Speaker 1: you're good at predicting, you benefit because consumers benefit because 552 00:33:22,200 --> 00:33:24,720 Speaker 1: you satisfy their wants. They want to buy from you 553 00:33:25,320 --> 00:33:27,719 Speaker 1: rather than buying from someone else, and therefore you make 554 00:33:27,760 --> 00:33:31,440 Speaker 1: a profit. Right, So so it's a it's a win 555 00:33:31,520 --> 00:33:34,840 Speaker 1: win situation if you get the predictions right, where a 556 00:33:34,880 --> 00:33:38,080 Speaker 1: central planner is different because they don't really get this 557 00:33:38,160 --> 00:33:40,640 Speaker 1: feedback and it doesn't really matter if people want the 558 00:33:40,680 --> 00:33:44,120 Speaker 1: stuff or not, because what they do is this this 559 00:33:44,320 --> 00:33:47,160 Speaker 1: plan that would predict what things are going to be like, 560 00:33:47,280 --> 00:33:50,000 Speaker 1: and then they produce it and it doesn't matter. Whereas 561 00:33:50,000 --> 00:33:52,760 Speaker 1: for an entrepreneur, if you get the predictions wrong, you're out. 562 00:33:53,040 --> 00:33:55,920 Speaker 1: You lose all your resources and everything you've invested, and 563 00:33:56,000 --> 00:33:59,040 Speaker 1: you probably can't try again. Right, But if you win, 564 00:33:59,160 --> 00:34:01,479 Speaker 1: if if you were good at it, then you get 565 00:34:01,520 --> 00:34:03,719 Speaker 1: a reward, You get profits, or at least you get 566 00:34:03,760 --> 00:34:06,040 Speaker 1: to cover your costs and you can reinvest and maybe 567 00:34:06,080 --> 00:34:09,120 Speaker 1: scale up and you start another business because you've satisfied 568 00:34:09,120 --> 00:34:13,680 Speaker 1: other people center planners when they predict well, I mean, 569 00:34:14,000 --> 00:34:16,759 Speaker 1: I guess if they're really screwed up, they might get 570 00:34:16,800 --> 00:34:20,239 Speaker 1: a revolution on their hands. But other than that, it 571 00:34:20,320 --> 00:34:24,480 Speaker 1: doesn't really matter if they satisfy consumers are not they 572 00:34:24,520 --> 00:34:28,239 Speaker 1: don't they don't have a choice, right right, So there's 573 00:34:28,560 --> 00:34:31,320 Speaker 1: and they don't lose themselves either if they get something wrong. 574 00:34:31,760 --> 00:34:35,680 Speaker 1: Well yeah, so what mm hmm, it doesn't matter. They can't. 575 00:34:35,760 --> 00:34:39,640 Speaker 1: They don't win anything. There's no profit from satisfying consumers. 576 00:34:40,800 --> 00:34:43,319 Speaker 1: They might take might take a profit anyway, which they 577 00:34:43,400 --> 00:34:46,239 Speaker 1: often do in politics. And if they get things wrong 578 00:34:47,840 --> 00:34:51,440 Speaker 1: from the point of view consumers, they don't care, and 579 00:34:51,560 --> 00:34:55,520 Speaker 1: there's no there's no penalty for it at all for 580 00:34:55,640 --> 00:35:01,960 Speaker 1: them personally, So you I have answered my next question 581 00:35:02,080 --> 00:35:06,239 Speaker 1: with that, but it uh. Basically, it seems like then 582 00:35:06,280 --> 00:35:12,640 Speaker 1: the difference between allowing like freedom entrepreneurs individuals engaging in 583 00:35:12,760 --> 00:35:17,239 Speaker 1: voluntary exchange um and looking at the value that that 584 00:35:17,400 --> 00:35:21,120 Speaker 1: produces versus trying to centrally plan it and control from 585 00:35:21,160 --> 00:35:24,080 Speaker 1: the top down the question of which one is optimal. 586 00:35:24,560 --> 00:35:29,279 Speaker 1: It seems like the freedom side would end up being 587 00:35:29,320 --> 00:35:32,239 Speaker 1: optimal in the long run, because there's a self correcting 588 00:35:32,560 --> 00:35:35,759 Speaker 1: feedback mechanism by which, like if you look at the 589 00:35:35,840 --> 00:35:39,480 Speaker 1: capital allocator, you make an investment alcate capital to a 590 00:35:39,600 --> 00:35:43,200 Speaker 1: business that is a bad business, you will lose your 591 00:35:43,280 --> 00:35:46,680 Speaker 1: ability to command those resources, and so you will end 592 00:35:46,760 --> 00:35:50,360 Speaker 1: up having to stop wasting the wasting society's resources or 593 00:35:50,560 --> 00:35:53,160 Speaker 1: wasting capital because you don't have any left because you 594 00:35:53,200 --> 00:35:55,200 Speaker 1: made a bad investment, and the ones who are doing 595 00:35:55,280 --> 00:35:57,880 Speaker 1: it well, they are rewarded with more and more in 596 00:35:58,080 --> 00:36:01,880 Speaker 1: order to be in charge of versus doing it centrally 597 00:36:02,440 --> 00:36:09,280 Speaker 1: through policy without choice involved. Um, there is no feedback 598 00:36:09,400 --> 00:36:14,879 Speaker 1: mechanism by which you would stop the wasters from wasting, right, 599 00:36:15,440 --> 00:36:18,359 Speaker 1: And and there's more to it too, because the thing 600 00:36:18,480 --> 00:36:20,720 Speaker 1: is with an entrepreneur, even if you make a profit. 601 00:36:21,360 --> 00:36:23,759 Speaker 1: So you have one run and you produce a lot 602 00:36:23,800 --> 00:36:26,719 Speaker 1: of products and turns out that consumers really liked it, 603 00:36:27,440 --> 00:36:30,160 Speaker 1: that doesn't mean that the next run will also find 604 00:36:30,200 --> 00:36:31,920 Speaker 1: a lot of consumers and that they will like it. 605 00:36:32,480 --> 00:36:36,360 Speaker 1: Why well, because sure you might satisfy their wants and 606 00:36:36,400 --> 00:36:38,960 Speaker 1: they don't want anymore. That that's one problem. What the 607 00:36:39,000 --> 00:36:42,400 Speaker 1: other problem is that you're competing with other entrepreneurs trying 608 00:36:42,480 --> 00:36:47,640 Speaker 1: to outdo everybody else trying right. If they saw that 609 00:36:47,760 --> 00:36:50,160 Speaker 1: you succeeded in that space, they're going to try to 610 00:36:50,200 --> 00:36:53,120 Speaker 1: do something much better, right so that they can meet 611 00:36:53,200 --> 00:36:56,839 Speaker 1: consumers next time period, whatever that might be next week 612 00:36:56,920 --> 00:36:59,640 Speaker 1: or next year or whatever. So they will not try 613 00:36:59,719 --> 00:37:02,040 Speaker 1: to do the same thing as you because they think that, well, 614 00:37:02,600 --> 00:37:05,320 Speaker 1: I have to do something better in order to attract 615 00:37:05,400 --> 00:37:08,799 Speaker 1: the consumers. And you know this too, so you need 616 00:37:08,880 --> 00:37:10,880 Speaker 1: to improve on your product too. So you can't just 617 00:37:11,040 --> 00:37:13,759 Speaker 1: rest on your laurels and and just go, oh, look 618 00:37:13,760 --> 00:37:15,560 Speaker 1: at this, there was demand here, so I'll just keep 619 00:37:15,600 --> 00:37:19,719 Speaker 1: on producing this exact thing forever. That's not how it works. 620 00:37:19,960 --> 00:37:22,800 Speaker 1: So the the incentive for the whole system is to 621 00:37:22,920 --> 00:37:26,160 Speaker 1: always be better. That's how you make problems. So even 622 00:37:26,200 --> 00:37:28,680 Speaker 1: if you make make a ton of money because you're 623 00:37:28,920 --> 00:37:32,319 Speaker 1: so good, eventually someone is going to figure out something 624 00:37:32,400 --> 00:37:35,359 Speaker 1: that consumers like even more. And then it doesn't matter 625 00:37:35,440 --> 00:37:37,920 Speaker 1: that you create a whole lot of value because if 626 00:37:37,960 --> 00:37:40,000 Speaker 1: someone else creates more value, consumers are going to buy 627 00:37:40,000 --> 00:37:45,080 Speaker 1: from that guy. So you always get get greater value 628 00:37:45,760 --> 00:37:50,759 Speaker 1: creation that is out competing already existent value creation. And 629 00:37:50,920 --> 00:37:53,600 Speaker 1: and I don't think you can beat such a system 630 00:37:53,640 --> 00:37:57,120 Speaker 1: because at least in the long run, it's unbeatable because 631 00:37:57,160 --> 00:38:01,359 Speaker 1: you're always out doing yourself in terms of consumer satisfaction. 632 00:38:01,960 --> 00:38:07,160 Speaker 1: Mm hmm. And this is why free market monopolies really 633 00:38:07,239 --> 00:38:12,120 Speaker 1: do not exist in the in the the sense of 634 00:38:12,440 --> 00:38:16,160 Speaker 1: you know, pricing power and crushing the consumer, because um, 635 00:38:16,360 --> 00:38:19,920 Speaker 1: there is always even if there isn't competition, there's always 636 00:38:19,960 --> 00:38:22,840 Speaker 1: the threat of competition. So like the I think the Kindle, 637 00:38:23,280 --> 00:38:25,800 Speaker 1: the Amazon's creation of the Kindle is a perfect example 638 00:38:25,840 --> 00:38:28,279 Speaker 1: of this because when they started, they said, hey, look, 639 00:38:28,440 --> 00:38:31,400 Speaker 1: we're gonna sell this basically we're gonna lose money on 640 00:38:31,520 --> 00:38:34,400 Speaker 1: this because we want to corner the market and if 641 00:38:34,440 --> 00:38:37,480 Speaker 1: we have a high profit, that's gonna attract competition. And 642 00:38:37,560 --> 00:38:39,239 Speaker 1: so a lot of people look at that and they say, hey, 643 00:38:39,320 --> 00:38:41,520 Speaker 1: that's terrible. They were able to create a monopoly in 644 00:38:41,840 --> 00:38:44,920 Speaker 1: uh in e books. But it's like, no, that's like 645 00:38:45,120 --> 00:38:48,440 Speaker 1: good for the consumer because Amazon is subsidizing our wants 646 00:38:48,680 --> 00:38:53,160 Speaker 1: for e books and once they stop that in increased profits, 647 00:38:53,200 --> 00:38:57,760 Speaker 1: now suddenly you've got the threat of competition again. Yeah, no, exactly. 648 00:38:57,840 --> 00:39:02,600 Speaker 1: I mean, in the the best way of of assessing 649 00:39:02,680 --> 00:39:05,600 Speaker 1: anything in the market economy is really does this benefit, 650 00:39:05,680 --> 00:39:10,400 Speaker 1: consumers are not and compared to what right, So monopoly 651 00:39:10,480 --> 00:39:14,759 Speaker 1: it sort of has has a really bad rap. But 652 00:39:14,960 --> 00:39:18,560 Speaker 1: what it really means is just one seller. That's what 653 00:39:18,640 --> 00:39:21,799 Speaker 1: the term means. Well, if you think about it, any 654 00:39:21,920 --> 00:39:26,000 Speaker 1: innovation in the beginning has one seller, otherwise it wouldn't 655 00:39:26,000 --> 00:39:29,200 Speaker 1: be an innovation. Is that a bad thing? Is it 656 00:39:29,280 --> 00:39:32,080 Speaker 1: a bad thing that someone innovates a new really valuable 657 00:39:32,200 --> 00:39:37,080 Speaker 1: good and they're the first one? Of course not. But 658 00:39:37,280 --> 00:39:41,200 Speaker 1: since since no one has stopped from innovating similar things 659 00:39:41,280 --> 00:39:44,600 Speaker 1: and competing with them, they will not be able to 660 00:39:45,480 --> 00:39:48,880 Speaker 1: keep those high profit margins if they had any right, 661 00:39:48,880 --> 00:39:53,040 Speaker 1: because someone else will either undercut their prize on a 662 00:39:53,080 --> 00:39:55,279 Speaker 1: similar good or produce a better good at the same 663 00:39:55,320 --> 00:39:59,200 Speaker 1: price or whatever. So consumers, consumers are not loyal. They 664 00:39:59,239 --> 00:40:02,239 Speaker 1: will move on. Right, So you already have one type 665 00:40:02,280 --> 00:40:05,360 Speaker 1: of monopoly, which is temporary, but it's still a monopoly 666 00:40:06,000 --> 00:40:09,960 Speaker 1: that is obviously good for most people. And at the 667 00:40:10,040 --> 00:40:14,280 Speaker 1: other end, you might have an industry that is about 668 00:40:14,320 --> 00:40:17,680 Speaker 1: to be disrupted, probably but it's sort of mature. And 669 00:40:17,840 --> 00:40:20,799 Speaker 1: then at the end you have one business and there's 670 00:40:20,840 --> 00:40:23,600 Speaker 1: so much more effective and efficient and productive than all 671 00:40:23,680 --> 00:40:26,439 Speaker 1: the competitors. So the others they just exit the market 672 00:40:26,520 --> 00:40:28,920 Speaker 1: or they're outcompeted or whatever. So you have one that 673 00:40:29,080 --> 00:40:33,520 Speaker 1: is super efficient hm, and they can continue that for 674 00:40:33,600 --> 00:40:36,839 Speaker 1: as long as consumers don't want anything else, and it's 675 00:40:37,239 --> 00:40:41,640 Speaker 1: and it for as long as as they don't make 676 00:40:41,800 --> 00:40:45,680 Speaker 1: enough money to attract someone else to compete with them. Mhm. Right. 677 00:40:46,120 --> 00:40:50,000 Speaker 1: So it benefits consumers to have only one producer if 678 00:40:50,080 --> 00:40:53,239 Speaker 1: they are very efficient and they keep prices so low 679 00:40:53,360 --> 00:40:56,839 Speaker 1: that no one else can compete with them. So here 680 00:40:56,880 --> 00:41:00,840 Speaker 1: we have two types of monopolies. Both benef fit consumers. 681 00:41:01,440 --> 00:41:04,000 Speaker 1: What does not benefit consumers, of course, is if you 682 00:41:04,040 --> 00:41:08,840 Speaker 1: have one producer and no one is allowed to compete 683 00:41:08,880 --> 00:41:12,800 Speaker 1: with them, because then they have no reason whatsoever to 684 00:41:12,880 --> 00:41:18,200 Speaker 1: continue to innovate, to cut costs or to keep prices low, 685 00:41:19,120 --> 00:41:21,720 Speaker 1: because hey, no one can start a business to compete 686 00:41:21,800 --> 00:41:24,680 Speaker 1: with me anyway, right, So I can just use this 687 00:41:24,800 --> 00:41:27,759 Speaker 1: to exploit it as this this market power in a 688 00:41:27,840 --> 00:41:31,240 Speaker 1: sense as much as possible. But it's not because you're alone. 689 00:41:31,640 --> 00:41:37,440 Speaker 1: It's because you are protected from from a competition. So 690 00:41:37,760 --> 00:41:40,320 Speaker 1: it's the problem with with the monopoly is not that 691 00:41:40,400 --> 00:41:42,719 Speaker 1: it's one seller. The problem with monopoly is that it's 692 00:41:42,719 --> 00:41:47,280 Speaker 1: a protected situation for the seller. Right. Yeah. Classic example 693 00:41:47,320 --> 00:41:51,080 Speaker 1: that comes to mind is the Internet service provider, one 694 00:41:51,120 --> 00:41:53,480 Speaker 1: of the most terrible companies people have to deal with 695 00:41:53,480 --> 00:41:56,640 Speaker 1: on a daily basis because it's got a regulatory monopoly 696 00:41:56,880 --> 00:42:01,319 Speaker 1: on on the product. Uh. Um, well, I could talk 697 00:42:01,400 --> 00:42:04,080 Speaker 1: to you all day for hours about these things, but 698 00:42:04,120 --> 00:42:07,080 Speaker 1: I think that's a perfect place to uh stop here, 699 00:42:07,280 --> 00:42:12,320 Speaker 1: because we're ending with providing value at basically the cheapest 700 00:42:12,719 --> 00:42:16,000 Speaker 1: price possible. And that's exactly what you are doing. Um. 701 00:42:16,280 --> 00:42:18,640 Speaker 1: Your book is available on Amazon. It's called how to 702 00:42:18,920 --> 00:42:23,600 Speaker 1: Think about the Economy a Primer. But you've also provided 703 00:42:23,640 --> 00:42:27,959 Speaker 1: it at a price that would discourage competition here because 704 00:42:28,040 --> 00:42:31,799 Speaker 1: you have provided for free on MSUs dot org as 705 00:42:31,840 --> 00:42:38,000 Speaker 1: well through the PDF version or the epub version. Yeah, exactly, 706 00:42:38,160 --> 00:42:41,719 Speaker 1: And and I mean the point there is I mean, yeah, 707 00:42:41,719 --> 00:42:44,719 Speaker 1: if if the miss Institute makes a profit, that's I 708 00:42:44,800 --> 00:42:47,759 Speaker 1: think that's awesome. Um. And I think there they might 709 00:42:47,840 --> 00:42:50,640 Speaker 1: be able to too. But the point is really to 710 00:42:50,719 --> 00:42:54,839 Speaker 1: get the word out to to educate people in how 711 00:42:54,920 --> 00:42:57,799 Speaker 1: to think about the economy and how to understand how 712 00:42:57,880 --> 00:43:01,520 Speaker 1: the economy works, and what markets do, how they do it, 713 00:43:02,200 --> 00:43:06,560 Speaker 1: and what regulations due to markets. And I mean, that's 714 00:43:06,600 --> 00:43:09,080 Speaker 1: what I tried to summarize in that very short book. 715 00:43:09,440 --> 00:43:11,840 Speaker 1: And I I don't know if I told you, but 716 00:43:12,160 --> 00:43:14,799 Speaker 1: I mean, when I wrote it, I tried to keep 717 00:43:14,840 --> 00:43:16,960 Speaker 1: it as short as possible. So it's about half as 718 00:43:17,040 --> 00:43:20,040 Speaker 1: long as Haslett's Economics in one lesson, which is usually 719 00:43:20,360 --> 00:43:23,239 Speaker 1: a good starting point, right, but it covers all of 720 00:43:23,320 --> 00:43:26,680 Speaker 1: the economy rather than just that one lesson. Uh. And 721 00:43:27,440 --> 00:43:29,480 Speaker 1: I tried to when I wrote it, that tried to 722 00:43:29,600 --> 00:43:34,000 Speaker 1: keep someone's grandma in mind. So so it's really written 723 00:43:34,400 --> 00:43:40,200 Speaker 1: without any any uh, special economics terms or typologies or 724 00:43:40,280 --> 00:43:42,600 Speaker 1: lingo or anything like that. There are no equations or 725 00:43:42,600 --> 00:43:46,200 Speaker 1: anything like that. It's just as simple as possible. So 726 00:43:46,320 --> 00:43:48,480 Speaker 1: you should be able to get a copy and give 727 00:43:48,560 --> 00:43:50,080 Speaker 1: it to your grandma, and you should be able to 728 00:43:50,160 --> 00:43:53,120 Speaker 1: understand it. That that was the point where whether I'm successful, 729 00:43:53,280 --> 00:43:57,839 Speaker 1: I guess we'll I guess I'll hear from the grandma's Sure, well, 730 00:43:57,960 --> 00:44:00,520 Speaker 1: I would say that you were very successful. It's fantastic 731 00:44:00,560 --> 00:44:02,960 Speaker 1: and I highly encourage anybody who can afford it to 732 00:44:03,040 --> 00:44:05,160 Speaker 1: buy the book, and if you can't, get the free 733 00:44:05,200 --> 00:44:08,120 Speaker 1: download from MSUs dot org, and then also to follow 734 00:44:08,200 --> 00:44:11,960 Speaker 1: Pair on Twitter at pair violent pe r b y, 735 00:44:12,320 --> 00:44:16,360 Speaker 1: l u, n d um, and anywhere else that that 736 00:44:16,440 --> 00:44:19,640 Speaker 1: people can find you if they're looking for more, well, 737 00:44:19,760 --> 00:44:22,960 Speaker 1: probably all over MSUs dot org M but I mean, 738 00:44:23,480 --> 00:44:25,480 Speaker 1: I have a website too, but it's an academic one, 739 00:44:25,520 --> 00:44:29,160 Speaker 1: so it's mostly about my my long CV and something 740 00:44:29,200 --> 00:44:32,680 Speaker 1: about my research. Very good, Okay, well, thank you so 741 00:44:32,880 --> 00:44:36,920 Speaker 1: much for joining today. This has been fantastic. Like I said, 742 00:44:36,960 --> 00:44:38,480 Speaker 1: I could talk to you for hours, but for the 743 00:44:38,520 --> 00:44:41,040 Speaker 1: sake of all the listeners here, we'll have to cut 744 00:44:41,120 --> 00:44:45,160 Speaker 1: it short. And really appreciate it. Great to be with you.