Pillars of Economic Wisdom: Part 2

Overview

In lecture two, we continue with pillars six through ten of economic wisdom, beginning with the idea that every action has unintended consequences, illustrated by examples like Britain’s rat bounty system and safety in the shipping industry. We also examine subjective value and voluntary exchange, the difference between creating jobs and creating wealth, and why real income grows only through increased output. The lecture concludes by demonstrating that competition is a "hardy weed" rather than a delicate flower, naturally emerging unless government intervention creates monopolies, as evidenced by successful deregulation in trucking and airlines that dramatically lowered prices and increased consumer choice.