Thursday, July 28, 2016

Four Reasons Financial Intermediaries Fail

Very good. I wish people I knew in the real world would talk about the financial system with the understanding this video provides.

I often watch these videos from MRUniversity while investigating it for a libertarian slant. I don't typically find one, but I can imagine someone confusing economist's pro-marketism with market fundamentalism. Some think that if a video teaches the value of markets, as economics generally does, then that must be some kind of right wing ideology. The end result is nobody is allowed to talk about the value of markets alone mixing it with something about market failure.

I do this too. I don't feel like I can just give the economics for why,

"Minimum wage probably has disemployment effects."

I have to say,

"Minimum wage probably has disemployment effects. BUT that doesn't mean minimum wage is bad. It might still be good, you can still believe in minimum wage. It just means there's a tradeoff.

In normal discussion I could leave all that unsaid. Of course showing that there's a cost to something doesn't necessarily make that thing bad or undesirable. But I have to hedge against the market fundamentalist interpretation.

I wonder if Tyler and Alex do the same.