1 00:00:00,400 --> 00:00:03,400 I heard a capitalism the way people, amassed great wealth was 2 00:00:03,400 --> 00:00:05,100 by looting plundering and enslaving. 3 00:00:05,100 --> 00:00:08,700 Their fellow man capitalism made it possible to become Wealthy by 4 00:00:08,700 --> 00:00:11,000 serving your fellow man. Welcome to Keith's night. 5 00:00:11,000 --> 00:00:14,300 Don't tread on anyone in the libertarian Institute today. 6 00:00:14,300 --> 00:00:18,600 I'm joined by Marcel gautreaux. A PhD student at George Mason 7 00:00:18,600 --> 00:00:21,700 University and a mises Institute research. 8 00:00:21,700 --> 00:00:22,900 Fellow. Mr. Gujral. 9 00:00:22,900 --> 00:00:25,200 Thank you for your time. Where's the best place to find 10 00:00:25,200 --> 00:00:28,200 your collection of research? My collection? 11 00:00:28,200 --> 00:00:29,800 I don't have a personal website yet. 12 00:00:30,000 --> 00:00:32,100 So for those who want to disengage with my content will 13 00:00:32,100 --> 00:00:34,600 say you can follow me on Twitter at enter can black and I have a 14 00:00:34,608 --> 00:00:36,900 sub stack. I've yet to put out, you know, a 15 00:00:36,900 --> 00:00:38,800 personal website. Although I should at this point 16 00:00:38,800 --> 00:00:41,500 of my Studies have one. So for now just follow me on 17 00:00:41,500 --> 00:00:43,700 Twitter, which is just a turkey in Black. 18 00:00:44,100 --> 00:00:46,300 Also just minor point of correction before we move 19 00:00:46,300 --> 00:00:48,500 forward. My last name is pronounced gutro 20 00:00:48,600 --> 00:00:49,900 like that. Not gotra. 21 00:00:50,000 --> 00:00:53,100 Oh, good truck. I was worried about everybody 22 00:00:53,100 --> 00:00:54,800 getting it right. I thought I heard it correctly 23 00:00:54,800 --> 00:00:55,900 before. Yeah. 24 00:00:56,100 --> 00:00:57,200 Don't worry about it at all. Yeah. 25 00:00:57,200 --> 00:01:01,400 It's once it get that straight. Yeah, I'm glad I'm glad to be 26 00:01:01,400 --> 00:01:03,100 here. Thanks for having me on, of 27 00:01:03,100 --> 00:01:09,400 course, links to Marcel's. Look researcher resumes, Twitter 28 00:01:09,400 --> 00:01:13,000 and stuff stacked will be in the description below Marcel. 29 00:01:13,000 --> 00:01:17,700 What is public Choice Theory? Public Choice Theory, you could 30 00:01:17,700 --> 00:01:19,400 also call it non-market decision. 31 00:01:19,400 --> 00:01:24,100 Making is really just the study of, you know, how economics or 32 00:01:24,100 --> 00:01:29,400 economizing decisions are made primarily in the context of 33 00:01:29,400 --> 00:01:32,100 government and bureaucracy, but you can apply public Choice 34 00:01:32,100 --> 00:01:33,300 Theory to a lot of other contexts. 35 00:01:33,300 --> 00:01:36,600 So, Peter, Leeson famously applies from a choice Theory to 36 00:01:36,600 --> 00:01:41,300 Pirates and churches. What is praxeology and why is it 37 00:01:41,300 --> 00:01:44,400 important? So, proctology is? 38 00:01:44,500 --> 00:01:47,300 Okay. Literally, the study of action 39 00:01:47,700 --> 00:01:49,700 is a theory and method of Austrian economics. 40 00:01:49,700 --> 00:01:53,300 It is the way in which we view. Economics is starting from first 41 00:01:53,300 --> 00:01:55,700 principles to its ultimate micro Foundation. 42 00:01:56,100 --> 00:01:59,800 As viewing economics, as the result of individuals 43 00:01:59,800 --> 00:02:04,400 economizing or individuals acting in a world of scarcity 44 00:02:04,400 --> 00:02:07,400 under uncertainty. Now what do you think are some 45 00:02:07,400 --> 00:02:11,900 of the limits of empiricism? For example, when asked about 46 00:02:12,000 --> 00:02:15,800 should we have certain regulations are antitrust or 47 00:02:15,800 --> 00:02:17,800 minimum wage? A lot of people will say, well, 48 00:02:17,800 --> 00:02:19,600 let's pile up the studies, right through them. 49 00:02:19,600 --> 00:02:23,200 And come to a conclusion based on the consensus people like 50 00:02:23,200 --> 00:02:25,500 Walter block would say, no need for the studies. 51 00:02:25,500 --> 00:02:27,800 We have this praxeological approach to things. 52 00:02:27,900 --> 00:02:31,400 What are some of the lyrics, the limits of empiricism that should 53 00:02:31,400 --> 00:02:35,100 make us skeptical about trusting the experts as far as economics 54 00:02:35,100 --> 00:02:38,100 goes? Ultimately a with when working 55 00:02:38,100 --> 00:02:41,200 with empirical data, which I'm not entirely opposed to, but you 56 00:02:41,208 --> 00:02:44,500 know, anybody in the end can say almost anything, they want by 57 00:02:44,500 --> 00:02:48,000 messing with data enough, and when you, you know, you could 58 00:02:48,000 --> 00:02:50,500 weird ones, you can say, as a joke, but you can't see it as 59 00:02:50,500 --> 00:02:53,200 like a serious criticism. But, any academic knows what P 60 00:02:53,200 --> 00:02:55,300 hacking is, Right? Any academic knows. 61 00:02:55,300 --> 00:02:59,400 What cherry-picking sources is everybody understands and we all 62 00:02:59,400 --> 00:03:02,500 laugh with each other about, you know, just continually tweaking, 63 00:03:02,500 --> 00:03:03,500 a paper. And so you get a publisher 64 00:03:03,500 --> 00:03:05,800 result and especially within our own kills it. 65 00:03:05,900 --> 00:03:08,800 Economists know all about this but somehow when we start, when 66 00:03:08,800 --> 00:03:11,700 we take this thing that we all know, we all agree is true and 67 00:03:11,700 --> 00:03:13,500 funny. And then we say, okay. 68 00:03:13,700 --> 00:03:16,400 I have a serious problem with the way that all science is 69 00:03:16,400 --> 00:03:19,700 done, especially in the social sciences, then suddenly this is 70 00:03:19,700 --> 00:03:22,400 seen as, like a straight, but your seems like a neanderthal 71 00:03:22,500 --> 00:03:25,100 who's going around trying to word trick tools. 72 00:03:25,100 --> 00:03:28,100 Mind trick people with with syllogisms, right? 73 00:03:28,100 --> 00:03:29,800 And that's like a common criticism of libertarianism. 74 00:03:29,800 --> 00:03:32,600 The port that we rely on these syllogisms to get what we want. 75 00:03:32,600 --> 00:03:34,800 But, you know, if you want to challenge a syllogism 76 00:03:34,800 --> 00:03:38,300 challenging syllogism, But of course, they never apply that to 77 00:03:38,300 --> 00:03:41,300 themselves, they'll always say things like homophobia is 78 00:03:41,300 --> 00:03:44,100 inherently bad, colonialism, inherently bad. 79 00:03:44,100 --> 00:03:46,600 We don't need to run any experiments. 80 00:03:46,600 --> 00:03:48,900 We just know that these things are inherently bad. 81 00:03:49,100 --> 00:03:51,600 Well, but what happened to having to run the experiments 82 00:03:51,600 --> 00:03:55,900 and measure GDP and see how inequality is affected as a 83 00:03:55,900 --> 00:03:58,000 causal result of colonial homophobia. 84 00:04:00,000 --> 00:04:02,900 They have the highest standards for us, but but no standards for 85 00:04:03,300 --> 00:04:05,800 for themselves or even simple, you know, somebody. 86 00:04:05,900 --> 00:04:07,300 Says, you know, I say something is true. 87 00:04:07,300 --> 00:04:09,600 This year of study to back that up as a give a study that shows 88 00:04:09,600 --> 00:04:12,000 that you require studies to re-check your conclusions. 89 00:04:12,900 --> 00:04:14,200 Yeah. That was great. 90 00:04:14,200 --> 00:04:18,600 I think it was in a book by Steven Pinker where he goes 91 00:04:19,200 --> 00:04:22,000 studies show that studies don't show much at all. 92 00:04:22,000 --> 00:04:27,200 A lot of studies show that a lot of research cannot be reproduced 93 00:04:27,200 --> 00:04:31,600 and is not done properly with the scientific method. 94 00:04:31,700 --> 00:04:35,300 So yeah, great, right answer to what to that one. 95 00:04:35,400 --> 00:04:38,200 What is? Favorite book or essay on 96 00:04:38,400 --> 00:04:42,900 praxeology or a level 1 introductory to economics. 97 00:04:44,500 --> 00:04:48,900 Level 1, intro to economics. So I'll just say this is a bit 98 00:04:48,900 --> 00:04:51,000 of an Austrian heresy. But my first introduction to 99 00:04:51,000 --> 00:04:54,600 economics is actually economic facts and fallacies by Thomas 100 00:04:54,600 --> 00:04:56,000 soul. Who's not an Austrian his 101 00:04:56,000 --> 00:04:58,400 Chicago. And if somebody were to tell me, 102 00:04:58,400 --> 00:05:01,700 you know, what's like a, I just said economics in one lesson, 103 00:05:02,000 --> 00:05:04,100 you know, what is a level one book to give somebody. 104 00:05:04,100 --> 00:05:07,800 There you go. So, Thomas sold to find Zack. 105 00:05:07,800 --> 00:05:11,000 I want to get this, right. He says, economics is the study. 106 00:05:11,400 --> 00:05:16,800 I love them. Economics is the study of the 107 00:05:16,800 --> 00:05:20,400 use of scarce resources, which have alternative uses. 108 00:05:20,400 --> 00:05:23,300 Do you agree with that? Definition reader from one more 109 00:05:23,308 --> 00:05:26,800 time. Economics is the study of the 110 00:05:26,800 --> 00:05:30,500 use of scarce resources, which have alternative uses. 111 00:05:32,600 --> 00:05:35,000 I would say it's a study of the exchange of scarce resources, 112 00:05:35,000 --> 00:05:37,700 not the use of scarce resources and somebody says the study of 113 00:05:37,700 --> 00:05:40,300 the use of scarce resources. I would say is like industrial 114 00:05:40,300 --> 00:05:43,600 organization or something right. Economics is about the exchange 115 00:05:43,600 --> 00:05:44,400 between people. Opal. 116 00:05:44,600 --> 00:05:49,500 But I'm sorry to interrupt you. Otherwise, it's a pretty solid. 117 00:05:49,500 --> 00:05:52,000 Definition economics is the study of something something. 118 00:05:52,000 --> 00:05:54,800 Something scarce resources and I would just say exchange and not 119 00:05:54,800 --> 00:05:59,400 necessarily use does Robinson. Caruso on the island by himself 120 00:05:59,700 --> 00:06:02,700 having a copy of himself. He doesn't have an economy. 121 00:06:02,800 --> 00:06:07,400 Does he face the issue of economizing his scarce time and 122 00:06:07,400 --> 00:06:11,200 access to Goods? Oh, I see. 123 00:06:11,200 --> 00:06:13,400 Yes, I suppose he does and actually now I'm thinking about 124 00:06:13,400 --> 00:06:16,200 it even further. If we go back to what economics, 125 00:06:16,200 --> 00:06:19,000 literally means it's household management. 126 00:06:19,200 --> 00:06:21,600 And so Robinson. Caruso also definitely has a 127 00:06:21,600 --> 00:06:26,800 household himself to manage so I can, we might use a colloquial 128 00:06:26,800 --> 00:06:29,900 term economizing, right? Making the most out of the 129 00:06:29,900 --> 00:06:33,500 least, two Robinson Caruso, although I would still say 130 00:06:33,700 --> 00:06:36,400 Robinson, Caruso May hat. Okay, Robinson Crusoe has to 131 00:06:36,400 --> 00:06:41,100 economize In that sense, but he does not have an economy and the 132 00:06:41,108 --> 00:06:43,600 study Robinson, Caruso. I would strongly object to 133 00:06:43,608 --> 00:06:46,100 calling economics. Got it. 134 00:06:46,700 --> 00:06:51,100 Seoul says without scarcity. There is no need to economize. 135 00:06:51,200 --> 00:06:55,600 Do you agree that scarcity is at the heart of economic decision 136 00:06:55,600 --> 00:07:01,300 making Yes, the reason there are slight. 137 00:07:01,300 --> 00:07:03,400 Yes, because I'm trying to think of certain things that aren't 138 00:07:03,400 --> 00:07:06,200 like, things like, you know, status, but even then you could 139 00:07:06,200 --> 00:07:07,900 say, that's not economics. That's political 140 00:07:07,900 --> 00:07:09,600 decision-making. So yes, if there were no 141 00:07:09,600 --> 00:07:12,400 scarcity, studying economics would be almost completely 142 00:07:12,400 --> 00:07:13,000 pointless. Yet. 143 00:07:13,600 --> 00:07:18,600 The reason I bring up scarcity, multiple times is because we 144 00:07:18,900 --> 00:07:22,600 always hear from politicians that that this scarcity almost 145 00:07:22,600 --> 00:07:25,000 doesn't exist. We have things that can be free. 146 00:07:25,300 --> 00:07:28,400 They're just one law way and then everyone As them. 147 00:07:28,400 --> 00:07:30,600 The police are afraid the military's free healthcare and 148 00:07:30,600 --> 00:07:33,300 education can be free and there's no downside. 149 00:07:33,300 --> 00:07:36,900 I see this almost has like the biggest propaganda Ploy that 150 00:07:37,200 --> 00:07:41,400 that scarcity doesn't exist. And therefore we can have all 151 00:07:41,400 --> 00:07:45,700 these things so long as we give the state enough power to re to 152 00:07:45,700 --> 00:07:49,400 redistribute them. Does it seem like but we're 153 00:07:49,400 --> 00:07:52,200 always called, you know unrealistic and living Pie in 154 00:07:52,200 --> 00:07:53,200 the Sky. Meanwhile. 155 00:07:53,200 --> 00:07:55,100 We're the only ones that recognize the importance of 156 00:07:55,100 --> 00:07:56,800 scarcity living in the real world. 157 00:07:57,200 --> 00:08:00,300 Do you think This is an advantage that Libertarians have 158 00:08:00,300 --> 00:08:03,100 as far as seeing things, as they really are. 159 00:08:04,100 --> 00:08:06,600 Yes. In the sense of realizing that 160 00:08:06,600 --> 00:08:10,200 material scarcity is real. It's a very strange sort of 161 00:08:10,207 --> 00:08:12,700 advantage to have. And that our advantage is sort 162 00:08:12,700 --> 00:08:14,500 of a basic observation of reality. 163 00:08:14,700 --> 00:08:16,400 But in this case, I think it's similar to what I was saying 164 00:08:16,400 --> 00:08:19,000 before about, you know, academics sort of implicitly 165 00:08:19,000 --> 00:08:22,600 understanding, you know, you know, how you can mess around a 166 00:08:22,600 --> 00:08:24,300 reaction. So you actually say it out loud, 167 00:08:24,300 --> 00:08:27,500 you know, every person walking around today except for like a 168 00:08:27,508 --> 00:08:28,600 few. Permitted weird. 169 00:08:28,600 --> 00:08:31,500 I was in Brooklyn understands that we live in a world of 170 00:08:31,500 --> 00:08:33,700 material scarcity. But once you start building a 171 00:08:33,708 --> 00:08:36,200 political position out of this obvious opposite, this 172 00:08:36,200 --> 00:08:38,799 observation then suddenly, we have a problem here. 173 00:08:39,900 --> 00:08:42,799 How do you think it's gotten to the point where people almost 174 00:08:42,799 --> 00:08:45,200 see the state as magic? Like what? 175 00:08:45,200 --> 00:08:47,500 When someone tells me houses should be free? 176 00:08:47,700 --> 00:08:49,900 Or, you know, it's wrong to exclude anyone. 177 00:08:50,200 --> 00:08:52,900 I just put the burden on them. I say you need to build me a 178 00:08:52,900 --> 00:08:54,700 house. You say, people don't respond to 179 00:08:54,700 --> 00:08:56,500 incentives. You have a house for yourself, 180 00:08:56,500 --> 00:08:59,500 but you've built Me 0. Houses, I mean either people are 181 00:08:59,500 --> 00:09:04,200 self-interested or that they're not any time you try and bring 182 00:09:04,200 --> 00:09:08,100 this idea of statism and to any other realm of people's life. 183 00:09:08,100 --> 00:09:10,400 They see it as totally immoral and ridiculous. 184 00:09:10,700 --> 00:09:12,800 How do you think this trick has been played on? 185 00:09:13,000 --> 00:09:15,900 I don't know, seven billion people, so funny. 186 00:09:15,900 --> 00:09:20,300 I remember Deirdre McCloskey. I don't remember exactly when 187 00:09:20,300 --> 00:09:23,300 which book, or what pamphlet, but it was something that I'd 188 00:09:23,300 --> 00:09:25,300 read that she had written where she talks about how her 189 00:09:25,300 --> 00:09:27,300 urbanization was part of the problem here. 190 00:09:29,100 --> 00:09:32,200 She's giving an anecdote about a professor who was teaching 191 00:09:32,200 --> 00:09:37,400 economics in saw in the early nineteen or in the early 20th 192 00:09:37,400 --> 00:09:41,900 century to people who have grown up on farms and was saying how 193 00:09:41,900 --> 00:09:44,600 they all just implicitly got the idea to supply and demand 194 00:09:44,600 --> 00:09:48,300 because to them, you know, just the idea of price changes of, 195 00:09:48,300 --> 00:09:49,700 you know, changing the fund and like Market. 196 00:09:49,700 --> 00:09:52,100 Fundamentals, were just a natural part of everyday lives. 197 00:09:52,300 --> 00:09:54,800 But then once you move into cities and you will sort of 198 00:09:54,800 --> 00:09:57,300 engage in this higher standard of living and you become more 199 00:09:57,300 --> 00:10:01,000 and more, Alized, you know, the economy ceases to be in your 200 00:10:01,000 --> 00:10:03,400 mind. Implicitly something real and 201 00:10:03,400 --> 00:10:06,400 just sort of becomes, you know, something that changes and maybe 202 00:10:06,400 --> 00:10:08,500 affects the employment numbers, right? 203 00:10:08,500 --> 00:10:13,200 And so as America becomes more urban and becomes ice, I really 204 00:10:13,200 --> 00:10:17,100 despise or some separated from reality but becomes more 205 00:10:17,100 --> 00:10:23,100 abstracted from becomes more abstracted from, let's say 206 00:10:23,100 --> 00:10:28,700 direct physical production, the economy becomes more Abstraction 207 00:10:28,700 --> 00:10:32,500 and more more something that can be played with in the minds of 208 00:10:32,508 --> 00:10:34,900 Americans. So, I would say the Turning 209 00:10:34,900 --> 00:10:38,000 Point here would have to have been sometime in the early 20th 210 00:10:38,000 --> 00:10:41,800 century. What is the primary cause of 211 00:10:41,800 --> 00:10:46,900 recessions primary cause of recessions in general? 212 00:10:49,700 --> 00:10:51,600 I'll just say, I just a malinvestments, you know, 213 00:10:51,600 --> 00:10:54,400 recession happens when for one reason or another, whether it's 214 00:10:54,400 --> 00:10:57,800 credit expansion or just cause people, you know, hopped onto a 215 00:10:57,800 --> 00:11:01,000 trend. People have invested as think 216 00:11:01,000 --> 00:11:02,800 that they shouldn't have and there's would have Painful phase 217 00:11:02,800 --> 00:11:06,700 of liquidation. So yes, what is the cause of 218 00:11:06,708 --> 00:11:08,800 recession? People making mistakes in what 219 00:11:08,800 --> 00:11:12,500 they choose to invest in and then the realization of the 220 00:11:12,500 --> 00:11:15,300 mistake, the correction of that mistake is what we call the 221 00:11:15,300 --> 00:11:18,500 recession. And would you say that there's 222 00:11:18,500 --> 00:11:23,000 any, you know, main culprit when it comes to recessions? 223 00:11:23,000 --> 00:11:26,700 Whether it's Wall Street or investors or the Federal Reserve 224 00:11:26,700 --> 00:11:30,400 or the ignorant tumors in our present context, most receptions 225 00:11:30,400 --> 00:11:32,500 that we encounter are caused by credit expansion. 226 00:11:32,500 --> 00:11:35,400 The Federal Reserve. So it's not the only cause of 227 00:11:35,408 --> 00:11:37,100 recession, but now that I properly appreciate your 228 00:11:37,100 --> 00:11:37,800 question. Yes. 229 00:11:38,000 --> 00:11:41,000 So the primary causes of recessions of business Cycles, 230 00:11:41,300 --> 00:11:44,600 you know, people make mistakes all the time, but it would be 231 00:11:44,600 --> 00:11:46,000 very unusual. It suspicious to us. 232 00:11:46,000 --> 00:11:48,900 When we see people making the same kind of mistake all in the 233 00:11:48,900 --> 00:11:51,400 same direction for 15 years continuously. 234 00:11:51,600 --> 00:11:55,500 And this is, yes, the result of easy monetary policy easy-money 235 00:11:55,500 --> 00:11:58,900 policies by the Federal Reserve, easy access to credit people, 236 00:11:58,900 --> 00:12:02,300 just chasing yield and investing in a variety of schemes that 237 00:12:02,300 --> 00:12:03,500 they really otherwise would not have. 238 00:12:03,500 --> 00:12:07,900 And what if I do Sister, why are some Nations wealthy and others 239 00:12:07,900 --> 00:12:10,700 impoverished roof? Some nations are wealth in. 240 00:12:10,700 --> 00:12:13,300 Some nations are poor. I would say at the most base 241 00:12:13,300 --> 00:12:16,600 level because of insecure property rights. 242 00:12:16,800 --> 00:12:19,900 So I hear to Smith's admonition that you know, the only thing 243 00:12:19,900 --> 00:12:22,500 you need to bring a nation. So from the lowest poverty to 244 00:12:22,500 --> 00:12:26,800 the keeps of prosperity are easy, Justice Talbot, easy taxes 245 00:12:26,800 --> 00:12:29,300 piece and a tub administration of justice. 246 00:12:29,900 --> 00:12:33,900 And so for most countries in the world, this point their biggest 247 00:12:34,000 --> 00:12:38,400 Mm is tolerable, ministration of Justice, you know, certain 248 00:12:38,400 --> 00:12:40,500 States more than others, can protect property rights, but 249 00:12:40,500 --> 00:12:43,300 also certain cultures do not protect property rights, and a 250 00:12:43,308 --> 00:12:45,200 lot of people don't see this angle. 251 00:12:45,400 --> 00:12:47,500 But, you know, every once in awhile, you'll have countries, 252 00:12:47,500 --> 00:12:50,200 especially see this problem like sub-Saharan Africa, or yeah, 253 00:12:50,200 --> 00:12:51,900 plenty of, there's no shortage of people who are 254 00:12:51,900 --> 00:12:55,100 entrepreneurial no, shortage of people who are fully capable of 255 00:12:55,100 --> 00:12:58,000 running Farms, or complex businesses, but either because 256 00:12:58,000 --> 00:13:01,400 the state for dates on them or even their own family, see, you 257 00:13:01,400 --> 00:13:04,700 know, this an extended family structure and then Single person 258 00:13:04,700 --> 00:13:06,500 in it. It's like the main Breadwinner 259 00:13:06,700 --> 00:13:10,500 and the more productive this person becomes suddenly The 260 00:13:10,500 --> 00:13:12,900 Wider obligation to send a family become, right? 261 00:13:12,900 --> 00:13:15,100 And so, you know, you'll have foreign aid workers coming to 262 00:13:15,108 --> 00:13:17,400 the country and help this guy irrigated Farm or whatever and 263 00:13:17,408 --> 00:13:19,300 he'll be perfect capable of operating this. 264 00:13:19,500 --> 00:13:20,700 And then the end of the year. They're like, all right. 265 00:13:20,700 --> 00:13:22,800 Now, you gotta save and invest in this next year and it's like, 266 00:13:22,800 --> 00:13:24,600 I can't do that. This is why. 267 00:13:24,700 --> 00:13:28,200 Well, you know, now that I made all this extra money, I am like, 268 00:13:28,200 --> 00:13:31,400 ethically required by my entire family to hold a feast for them 269 00:13:31,400 --> 00:13:33,800 and, like, squander that money. Otherwise, they'll think that 270 00:13:33,800 --> 00:13:35,400 I'm Basically The Reincarnation of Satan. 271 00:13:35,800 --> 00:13:39,500 So there you go, you know? And this is like a culture 272 00:13:39,500 --> 00:13:42,100 problem that needs to be fixed. And I would say for most of the 273 00:13:42,100 --> 00:13:45,700 world, you know, there hasn't really we grew. 274 00:13:45,700 --> 00:13:49,600 We are in a more peaceful world tackle. 275 00:13:49,700 --> 00:13:52,800 A lot of the countries don't have the state capacity to Levy 276 00:13:52,800 --> 00:13:56,000 onerous, taxes. So property protection is the 277 00:13:56,000 --> 00:13:57,500 number one obstacle in one of these places. 278 00:13:58,500 --> 00:14:02,000 If I care only about the well-being of the poor, why 279 00:14:02,000 --> 00:14:07,600 should I be a libertarian? Economic development is making 280 00:14:07,600 --> 00:14:11,100 more things more available. It is increasing the possibility 281 00:14:11,100 --> 00:14:14,700 of options to people, so you should want whatever policy 282 00:14:14,700 --> 00:14:17,900 leads to increased development. Ultimately, and libertarianism 283 00:14:18,100 --> 00:14:20,900 is the policy bundle that leads to the most economic development 284 00:14:21,000 --> 00:14:25,200 in the first world and the third massive wealth inequality is 285 00:14:25,200 --> 00:14:27,600 bad. Therefore, forced redistribution 286 00:14:27,700 --> 00:14:30,400 is necessary. How do you respond actually 287 00:14:30,400 --> 00:14:33,600 massive wealth inequality is good because people are 288 00:14:33,600 --> 00:14:35,100 different in their endowments, a different. 289 00:14:35,300 --> 00:14:37,800 Girls, they're different in their ability to use resources 290 00:14:37,800 --> 00:14:40,800 to benefit others. Wealth inequality is an inhale. 291 00:14:40,900 --> 00:14:42,600 It's a feature of capitalism. Not a bug. 292 00:14:42,600 --> 00:14:44,500 I'm four. I'm actually for more 293 00:14:44,500 --> 00:14:46,600 inequality. Like I'm for raising living 294 00:14:46,600 --> 00:14:50,000 standards for the bottom, but I actually think that the amount 295 00:14:50,000 --> 00:14:52,000 of effort it would take to raise living standards at the bottom 296 00:14:52,000 --> 00:14:54,500 of justify, raising living standards at the top even more, 297 00:14:54,800 --> 00:14:57,400 right? You know, I see Alicia and I 298 00:14:57,400 --> 00:15:02,000 think man, how great is it that we have all of these robots that 299 00:15:02,000 --> 00:15:04,400 can cure all diseases. I'm sure glad that the people 300 00:15:04,400 --> 00:15:06,600 who invented these He's yet to live on a Paradise Island in 301 00:15:06,600 --> 00:15:10,700 space. Sure, if you had to really 302 00:15:10,700 --> 00:15:13,900 communicate it to someone who sees their paycheck, as you 303 00:15:13,900 --> 00:15:16,400 know, you're going out. I didn't hear anything after 304 00:15:16,400 --> 00:15:19,300 sure. Okay, but can I get the 305 00:15:19,300 --> 00:15:20,600 connection dropped? Like a question? 306 00:15:21,100 --> 00:15:22,900 All right? It is it better now? 307 00:15:23,700 --> 00:15:28,200 Yes. Okay, if I'm someone, who sees 308 00:15:28,200 --> 00:15:32,000 that my income is way far below the people like Sam Walton. 309 00:15:32,000 --> 00:15:34,400 Andrew, Carnegie, John D, Rockefeller and Jeff Bezos. 310 00:15:34,700 --> 00:15:37,400 How do you tell me? My paycheck is so much. 311 00:15:37,600 --> 00:15:40,200 Smaller than theirs. How on God's green earth and my 312 00:15:40,200 --> 00:15:43,100 possibly benefiting from people that have billions and billions 313 00:15:43,100 --> 00:15:45,500 of dollars. Well, they must have done 314 00:15:45,500 --> 00:15:47,900 something to get those billions and billions of dollars, you 315 00:15:47,900 --> 00:15:49,900 know, and in some cases Libertarians, kind of like to 316 00:15:49,900 --> 00:15:52,300 take the easy out and they say, well, you know, the reason they 317 00:15:52,300 --> 00:15:55,400 enjoy all those privileges because of regulations or some 318 00:15:55,400 --> 00:15:58,400 kind of government cronyism and to some extent, that's true in 319 00:15:58,400 --> 00:16:01,700 any any liberal economy. There are people who make their 320 00:16:01,700 --> 00:16:03,800 living for dating but these kinds of massive wealth 321 00:16:03,800 --> 00:16:07,400 inequalities, I mean, Jeff Bezos Elon Musk these people. 322 00:16:07,500 --> 00:16:10,000 All are good at industrial organization. 323 00:16:10,100 --> 00:16:11,600 Right? These people are good at 324 00:16:11,600 --> 00:16:14,700 delivering services to lots. And lots of people making lots 325 00:16:14,700 --> 00:16:17,000 and lots of people's lives. Incomparably better. 326 00:16:18,200 --> 00:16:21,700 So, you know, when you are a small part in that division of 327 00:16:21,700 --> 00:16:24,900 labor, you know, you get your paycheck and maybe small but the 328 00:16:24,900 --> 00:16:29,600 fact is that you benefit from all the goods and services 329 00:16:29,600 --> 00:16:33,700 embodied by the wealth. That is a crew to Jeff Bezos and 330 00:16:33,700 --> 00:16:35,200 Elon Musk. I mean, especially we talk about 331 00:16:35,200 --> 00:16:37,400 Jeff Bezos, you know, Jeff Bezos as well. 332 00:16:37,600 --> 00:16:39,600 Isn't like it's just a series of merchants contracts. 333 00:16:39,600 --> 00:16:42,400 You know, Jeff Bezos has almost nothing to liquidate. 334 00:16:42,900 --> 00:16:45,600 I guess if he has the warehouses in the trucks, but warehouses 335 00:16:45,600 --> 00:16:48,200 and trucks, if you really think about that for another second, 336 00:16:48,200 --> 00:16:51,000 really should not be that much. Well, it's it's really just real 337 00:16:51,000 --> 00:16:53,700 estate. Most of it is a fact that Jeff 338 00:16:53,700 --> 00:16:58,600 Bezos has a series of agreements with a bunch of merchants and 339 00:16:58,600 --> 00:17:01,000 producers into this very efficient. 340 00:17:01,000 --> 00:17:02,500 Supply chain. That lets me get almost 341 00:17:02,500 --> 00:17:05,099 anything. I want within two days, right? 342 00:17:05,200 --> 00:17:08,500 And so that series of contracts, that's Almost pure that is 343 00:17:08,500 --> 00:17:10,900 almost pure intellectual Capital, right? 344 00:17:11,000 --> 00:17:13,500 That is his wealth. And so somebody were to say, 345 00:17:13,500 --> 00:17:17,200 well, I think I should have like you want to repossess Jeff. 346 00:17:17,200 --> 00:17:21,700 Bezos is contract with the guy that makes lamps, and I mean, 347 00:17:21,700 --> 00:17:24,900 because that's what it welcomes. What are the potential? 348 00:17:24,900 --> 00:17:29,200 Downsides of the state, nationalizing all corporations 349 00:17:29,200 --> 00:17:31,700 and turning them into Democratic worker? 350 00:17:31,700 --> 00:17:34,500 Cooperatives. Most workers, don't know how to 351 00:17:34,508 --> 00:17:36,000 manage corporations. If they did. 352 00:17:36,000 --> 00:17:37,400 They would be. That would be the biggest 353 00:17:37,500 --> 00:17:40,700 Problem, as I pointed out, in the case, of a lot of American 354 00:17:40,700 --> 00:17:43,300 businesses, especially, especially Amazon, you know, 355 00:17:43,300 --> 00:17:44,400 Geoff Bowes. It's great. 356 00:17:44,400 --> 00:17:46,700 Because if they just like the richest man in the world or like 357 00:17:46,700 --> 00:17:48,700 trades places with Elon Musk from from year to year or 358 00:17:48,700 --> 00:17:51,200 whatever, you know, if you try to repossess, it will just turn 359 00:17:51,200 --> 00:17:55,700 to sand in your fingers, right? There's no thing there to take. 360 00:17:56,300 --> 00:18:00,300 So and and it would cause and you'd see quickly how many other 361 00:18:00,300 --> 00:18:02,000 things just from the act of repossession? 362 00:18:02,300 --> 00:18:05,800 You see how many other things are only valuable because they 363 00:18:05,800 --> 00:18:07,100 are secure in their property rights. 364 00:18:07,400 --> 00:18:09,900 I mean, most people don't care about these things even as I 365 00:18:09,900 --> 00:18:11,700 give this an some think about it, like, you know, only a 366 00:18:11,708 --> 00:18:15,200 Libertarian cares about this since most people that want to 367 00:18:15,200 --> 00:18:18,400 repossess from Jeff Bezos and Elon Musk, actually spiteful 368 00:18:18,400 --> 00:18:20,700 mutants that don't actually want to go better off. 369 00:18:20,800 --> 00:18:23,700 They just want to hurt Jeff Bezos and Elon Musk because you 370 00:18:23,700 --> 00:18:26,700 know evil white male capitalist, whatever. 371 00:18:27,000 --> 00:18:28,800 And so I'd say, you know, hey, if you were to take the thing 372 00:18:28,800 --> 00:18:30,400 from them, it wouldn't actually make anybody better off but 373 00:18:30,400 --> 00:18:31,900 that's not really what matters to these people. 374 00:18:31,900 --> 00:18:35,000 It's really just taking things from Jeff Bezos and Elon Musk. 375 00:18:35,600 --> 00:18:40,500 I know it's like the feds have been I'm not exactly a randian 376 00:18:40,500 --> 00:18:43,100 but one thing randle's 100% right about, it's like the 377 00:18:43,100 --> 00:18:45,100 emotional pathologies that drive these people. 378 00:18:46,300 --> 00:18:47,600 Yeah, yeah. Definitely. 379 00:18:47,600 --> 00:18:50,400 I mean when you point out to them States, been stealing five 380 00:18:50,400 --> 00:18:52,300 trillion dollars every year for a while. 381 00:18:52,300 --> 00:18:55,700 Now, how much more is it going to take for you guys to be 382 00:18:55,700 --> 00:18:56,900 happy. I mean, it's like a trillion 383 00:18:56,900 --> 00:18:58,400 dollars a year and entitlements alone. 384 00:18:58,800 --> 00:19:02,000 And even when you show them, if you take all the Well from all 385 00:19:02,000 --> 00:19:05,600 the wealthiest people it's going to cover like eight months of 386 00:19:06,600 --> 00:19:10,600 next year's federal government budget and even then if you tell 387 00:19:10,600 --> 00:19:12,200 them, they're getting more money, they're going to spend 388 00:19:12,200 --> 00:19:13,500 more. So it's not even going to be 389 00:19:13,700 --> 00:19:18,100 eight months, but they're not. Not too interested in that, less 390 00:19:18,100 --> 00:19:19,500 than that. Even because again, if you 391 00:19:19,500 --> 00:19:23,100 really think about what it means to confiscate Jeff Bezos as 392 00:19:23,100 --> 00:19:26,400 well, right? It shrinks in your hands, right? 393 00:19:26,400 --> 00:19:29,500 It's like putting spinach on a frying pan, right? 394 00:19:29,500 --> 00:19:31,400 So he's like, oh, we just take all databases wealth. 395 00:19:31,400 --> 00:19:33,500 We can find it again really, but really think what you're doing. 396 00:19:33,500 --> 00:19:35,400 Are you financing the government with a bunch of merchants 397 00:19:35,400 --> 00:19:40,100 contracts and trucks, right? Imagine again, this kind of 398 00:19:40,100 --> 00:19:43,600 requires a person who isn't who this argument works on some 399 00:19:43,600 --> 00:19:45,600 engage in good faith, but you know, imagine if you live in a 400 00:19:45,608 --> 00:19:47,700 society City where everybody has a bunch of stuff in then I have 401 00:19:47,700 --> 00:19:50,900 like a rock and it's worth $10. And then, somebody says, you 402 00:19:50,900 --> 00:19:54,700 know, actually Marcel, I'd be willing to pay if I had it or if 403 00:19:54,700 --> 00:19:55,900 I could get some friends together. 404 00:19:56,000 --> 00:19:58,400 We'd all be willing to pitch in and pay you ten billion dollars, 405 00:19:58,400 --> 00:20:00,600 so that rock. And then somebody goes and says, 406 00:20:00,600 --> 00:20:03,700 Marcel, you know, if we were to take that rock from you, we can 407 00:20:03,700 --> 00:20:07,900 use it to pay for my health care is like, no, that's not really 408 00:20:07,900 --> 00:20:09,400 true. Because as soon as you take that 409 00:20:09,400 --> 00:20:11,900 rock for me, all who are going to pitch in for shares on the 410 00:20:11,900 --> 00:20:14,500 rocks, look, we only want to get shares in that rock because, you 411 00:20:14,508 --> 00:20:16,600 know, we can hold on to it, if we know People going to take 412 00:20:16,600 --> 00:20:18,900 that rocket and the moment. None of us wanted right? 413 00:20:19,000 --> 00:20:21,800 None of us want to pitch in so suddenly societies become ten 414 00:20:21,800 --> 00:20:24,500 million dollars poorer. And so now you can't find a 415 00:20:24,500 --> 00:20:26,800 Health Care system with my ordinary stone that I picked up 416 00:20:26,800 --> 00:20:28,800 off the ground. And by the way, what I've 417 00:20:28,808 --> 00:20:31,200 described to you should also be seen as an indictment of like 418 00:20:31,200 --> 00:20:36,600 national income accounting. Mises said that an increase in 419 00:20:36,600 --> 00:20:40,800 real wages is the result of capital investment and increased 420 00:20:40,800 --> 00:20:43,000 worker productivity. Would you agree with that? 421 00:20:44,400 --> 00:20:50,300 Yes, and could you explain that? Maybe if you could explain that 422 00:20:50,300 --> 00:20:53,700 may be used like a real world example to bring that theory 423 00:20:53,700 --> 00:20:56,000 into practice for us or increase Capital? 424 00:20:56,000 --> 00:20:59,600 So the the end result of all capital investment is consumer 425 00:20:59,600 --> 00:21:03,500 benefit right at the end. There's a refrain that we have. 426 00:21:03,500 --> 00:21:05,800 I think bear bile and uses it with almost any Austrian would 427 00:21:05,800 --> 00:21:09,200 use it, which is, you know, bread is not valuable because it 428 00:21:09,208 --> 00:21:11,400 uses wheat. Wheat is valuable because it is 429 00:21:11,400 --> 00:21:12,300 used for bread. Right? 430 00:21:12,300 --> 00:21:15,800 Any capital investment is Use towards the end of making more 431 00:21:15,800 --> 00:21:20,300 things available for consumers, you know, obviously at a profit 432 00:21:20,300 --> 00:21:21,900 right, is it selfish benefit here? 433 00:21:22,400 --> 00:21:24,400 And so when I say that our country has had economic 434 00:21:24,400 --> 00:21:26,200 development, that just means that more things have been 435 00:21:26,200 --> 00:21:29,900 produced on the way you get increased development is through 436 00:21:29,900 --> 00:21:32,700 lengthy or production, processes is through increases in 437 00:21:32,700 --> 00:21:36,000 technology is through savings and investment. 438 00:21:36,000 --> 00:21:39,100 So that's the only way that a worker can become better off. 439 00:21:39,100 --> 00:21:42,000 And, and a real wage increase means not just an increase in 440 00:21:42,000 --> 00:21:44,000 paper money, but, you know, an increase in the value. 441 00:21:44,100 --> 00:21:47,800 Value that paper money, more things to be done with your 442 00:21:47,800 --> 00:21:49,700 paper money. Since we're assuming a Fiat 443 00:21:49,700 --> 00:21:52,500 standard in, these kinds of conversations, right is through 444 00:21:52,500 --> 00:21:55,300 increased material production by entrepreneurs. 445 00:21:56,500 --> 00:22:00,600 We need the state to regulate the average person or else. 446 00:22:00,600 --> 00:22:03,500 We'll have buildings falling such as that as happened 447 00:22:03,500 --> 00:22:05,700 recently in Florida. How do you respond? 448 00:22:07,400 --> 00:22:09,600 There's a building that thing in Florida. 449 00:22:09,600 --> 00:22:20,600 Who is this? Yes, there was a building 450 00:22:20,600 --> 00:22:24,200 collapses before we saw these zoning regulations, but, you 451 00:22:24,200 --> 00:22:28,400 know, yes, in theory, I could also just make several arguments 452 00:22:28,400 --> 00:22:30,800 to say, you know, most people don't want to live in falling 453 00:22:30,800 --> 00:22:34,500 buildings. If this there is a certain 454 00:22:34,500 --> 00:22:37,000 amount of risk that people are willing to Bear, you know, 455 00:22:37,200 --> 00:22:41,300 Somebody were to say that we want, we want buildings to be as 456 00:22:41,300 --> 00:22:44,400 stable as reasonably achievable, which is the say, no use for 457 00:22:44,400 --> 00:22:46,600 like nuclear reactors. You know, what you're really 458 00:22:46,600 --> 00:22:49,800 saying is as soon as there's any innovation in technology to make 459 00:22:49,800 --> 00:22:53,000 buildings cheaper to make, you know, just keep adding higher 460 00:22:53,000 --> 00:22:56,200 and higher regulations on the building until the cost of 461 00:22:56,200 --> 00:22:58,300 making. The building is to get is enough 462 00:22:58,300 --> 00:23:02,400 to cancel out, you know, the the the decrease price and building 463 00:23:02,400 --> 00:23:04,600 materials or whatever. But in fact, we find that most 464 00:23:04,600 --> 00:23:06,800 people are not willing to spend infant amounts of money and 465 00:23:06,800 --> 00:23:08,600 doing he'd like living and cheaper buildings. 466 00:23:08,600 --> 00:23:13,000 So, these are just kind of the risk that you get in a Convent. 467 00:23:13,000 --> 00:23:15,000 Of course, a lot of people say, well, I don't want to engage in 468 00:23:15,000 --> 00:23:17,000 that kind of risk, you know, with children who live in the 469 00:23:17,000 --> 00:23:18,300 buildings or something like that. 470 00:23:18,300 --> 00:23:23,300 But again, these are risks that are economize on by the market. 471 00:23:23,300 --> 00:23:26,800 If you actually do manifest that desire revealed in your 472 00:23:26,800 --> 00:23:29,000 preferences by who you purchase from, you know, a lot of 473 00:23:29,008 --> 00:23:32,800 buildings are not owned by individual people, but by 474 00:23:32,800 --> 00:23:36,700 launching a large property developers, we can just stuck if 475 00:23:36,700 --> 00:23:38,600 it's You about intolerable to you. 476 00:23:38,800 --> 00:23:41,400 We can just start changing. The array of the market will 477 00:23:41,400 --> 00:23:42,800 just, are changing the arrangement of who owns 478 00:23:42,800 --> 00:23:46,900 buildings in Prudhoe, right? You know, if you find that, you 479 00:23:46,908 --> 00:23:49,300 know, bearings are amount of risk of unstable buildings is 480 00:23:49,300 --> 00:23:51,600 intolerable. Then find BlackRock can own that 481 00:23:51,600 --> 00:23:53,700 building and see how BlackRock feels about the level of risk. 482 00:23:53,700 --> 00:23:54,700 That what that was involved here. 483 00:23:54,900 --> 00:23:58,200 But most of us enjoy decrease consumer costs, you know people 484 00:23:58,200 --> 00:24:00,600 watching a plane like what like planned obsolescence, right? 485 00:24:00,700 --> 00:24:03,000 They'll say, you know in the old days, you know your cars and it 486 00:24:03,000 --> 00:24:05,500 is like, you know cast iron and you could drop them off the 487 00:24:05,500 --> 00:24:08,200 Empire State Building and they went The concrete and now 488 00:24:08,200 --> 00:24:10,000 they're made of plastic or whatever and part of that is 489 00:24:10,000 --> 00:24:11,000 different regulation. You know. 490 00:24:11,000 --> 00:24:13,200 Now, cars need to have like a billion to one crumple zones, 491 00:24:13,400 --> 00:24:15,300 but also just people want cheaper cars, right? 492 00:24:15,400 --> 00:24:18,300 And I suppose if you want, you can go ahead and well now you 493 00:24:18,300 --> 00:24:20,800 can't buy a car, made a cast iron because you can't buy, you 494 00:24:20,800 --> 00:24:23,000 know, betamax tapes anymore. Right? 495 00:24:23,000 --> 00:24:26,300 People don't want that. Level of certain is for a car. 496 00:24:26,300 --> 00:24:28,500 They want a car that can get more than three miles to the 497 00:24:28,500 --> 00:24:30,600 gallon, right? You make a trade-off on fuel 498 00:24:30,600 --> 00:24:32,300 economy. You make a trade-off. 499 00:24:33,200 --> 00:24:34,700 On speed and make it right off our price. 500 00:24:35,300 --> 00:24:37,800 So everybody says, oh we need government regulation to stop 501 00:24:37,800 --> 00:24:38,800 buildings. Falling down. 502 00:24:38,800 --> 00:24:40,700 Know, I place pretty high premium on a building that is 503 00:24:40,700 --> 00:24:42,300 not going to fall down in the time. 504 00:24:42,300 --> 00:24:45,500 Scale of me living there, and I'm not interested in paying, 505 00:24:45,600 --> 00:24:48,300 you know, twice the price, so that my building will last 506 00:24:48,300 --> 00:24:52,900 longer than, you know, the United States government. 507 00:24:53,700 --> 00:24:55,000 Exactly. Thanks God willing. 508 00:24:55,000 --> 00:24:57,200 It will only last for, you know, three days from now, right? 509 00:24:57,200 --> 00:25:00,600 But Jonas, yeah. As opposed to look as if these, 510 00:25:00,600 --> 00:25:04,200 all these shortcomings laziness go, Read shortsightedness, as if 511 00:25:04,200 --> 00:25:08,700 they don't apply to government officials as if they don't face 512 00:25:09,000 --> 00:25:13,200 the stress of having to economize as if they don't 513 00:25:13,200 --> 00:25:17,300 subject anyone to risk, you know, 90% of their drones kill 514 00:25:17,300 --> 00:25:22,600 civilians, the other 10% are fake terrorists and and and what 515 00:25:22,600 --> 00:25:26,100 were so terrified that that there could be an era of 516 00:25:26,100 --> 00:25:30,100 voluntary exchange where people have a negative externalities. 517 00:25:30,800 --> 00:25:34,900 How about the case of anti Trust the argument might go something 518 00:25:34,900 --> 00:25:39,400 like in the absence of a state, you might have some people 519 00:25:39,600 --> 00:25:44,200 bullying intimidating, others acting unscrupulously, gaining a 520 00:25:44,200 --> 00:25:48,800 high percentage of an industry. And then once they're in that 521 00:25:48,800 --> 00:25:52,400 high position of power, they drastically increase the prices 522 00:25:52,500 --> 00:25:55,200 making consumers and employees, worse off. 523 00:25:55,200 --> 00:25:56,900 Their for antitrust is legitimate. 524 00:25:56,900 --> 00:25:59,000 How would you respond to that? I would say this is fake. 525 00:25:59,000 --> 00:26:00,500 This is just totally social propaganda. 526 00:26:00,500 --> 00:26:04,800 Made up in the 1920s this literally never have It's a 527 00:26:04,808 --> 00:26:14,300 conspiracy theory. It's total or and this idea of 528 00:26:14,300 --> 00:26:16,200 like predatory pricing is what we call this. 529 00:26:16,400 --> 00:26:18,400 This has a kind of Sighs. Listen up. 530 00:26:18,400 --> 00:26:22,900 This has never happened ever, ever ever. 531 00:26:22,900 --> 00:26:24,600 Ever. If you look at the, you know, 532 00:26:24,600 --> 00:26:27,800 the empirical data, right? We see that the price of oil, 533 00:26:27,900 --> 00:26:30,600 you know, because the we Standard Oil is the case that 534 00:26:30,600 --> 00:26:32,600 used and I kind of forget wasn't Andrew. 535 00:26:33,200 --> 00:26:34,900 Because Carnegie was a steel magnate. 536 00:26:35,000 --> 00:26:36,900 I forget who ransacked the Royal of time. 537 00:26:37,000 --> 00:26:39,300 But yeah, the idea was close. Of course. 538 00:26:39,300 --> 00:26:41,800 There's Rockefeller as. Oh, you know Rockefeller, if he 539 00:26:41,800 --> 00:26:45,500 finds out you're going to open an oil rig, he will, he will 540 00:26:45,500 --> 00:26:48,800 just drop the price of oil down so that you can't do it, you 541 00:26:48,800 --> 00:26:52,700 know, if that were true and some people allegedly did make small 542 00:26:52,700 --> 00:26:55,100 fortunes by just, you know, pretending to set up with 543 00:26:55,100 --> 00:26:58,400 refineries just to bait Rockefeller into buying off, the 544 00:26:58,400 --> 00:27:01,000 assets from them, but in practice, what that just meant 545 00:27:01,000 --> 00:27:04,900 was that Rockefeller was just Outsourcing the construction of 546 00:27:04,908 --> 00:27:06,100 oil, refineries. Right? 547 00:27:06,100 --> 00:27:09,000 Some other entrepreneur just bore all the risk of, you know, 548 00:27:09,000 --> 00:27:11,400 getting the capital investment built up the oil refinery, the 549 00:27:11,400 --> 00:27:13,600 oil rig, or what have you, or, or the oil drill. 550 00:27:13,600 --> 00:27:15,400 And then, once it was all made, Rock Falls, like awesome. 551 00:27:15,400 --> 00:27:18,300 Pick you up, some for that. And this is just, this is just 552 00:27:18,300 --> 00:27:22,300 another very strange kind of business model, but that's not 553 00:27:22,300 --> 00:27:25,400 predatory pricing, that just making consumers better off 554 00:27:25,500 --> 00:27:28,500 because oil just gets cheaper. If somebody delivers on that 555 00:27:28,500 --> 00:27:30,700 threat, they are making oil cheaper. 556 00:27:30,700 --> 00:27:32,500 For however long, it takes to dry. 557 00:27:32,800 --> 00:27:35,600 The other guy bankrupt and of course, we know that we live in 558 00:27:35,600 --> 00:27:37,700 a highly capitalized economy, you know, just because you have 559 00:27:37,700 --> 00:27:40,000 10 times, somebody's production does not mean to give ten times 560 00:27:40,000 --> 00:27:41,600 their cash revenue or that's right. 561 00:27:41,900 --> 00:27:44,300 Just as you have 10 times the productivity of ten times their 562 00:27:44,300 --> 00:27:47,800 cash reserves. And so if every pay period, you 563 00:27:47,808 --> 00:27:51,100 know, they're losing $1. You're losing ten, right? 564 00:27:51,100 --> 00:27:53,800 Each time this happens. And unless you have ten times 565 00:27:53,800 --> 00:27:56,600 with money in the bank as they do, but you definitely don't 566 00:27:56,600 --> 00:27:58,600 because you know, your investors would never stand for that sort 567 00:27:58,600 --> 00:28:00,700 of maneuver. You're just you're going to go 568 00:28:00,700 --> 00:28:03,400 back up before they do. And here we go, we can just 569 00:28:03,400 --> 00:28:06,800 imagine you know proposed if you the kinds of people who say, you 570 00:28:06,800 --> 00:28:09,900 know, nonsense like this, have no business being near any 571 00:28:09,900 --> 00:28:12,300 industrial organization. If you were to propose this at a 572 00:28:12,308 --> 00:28:15,600 board meeting, they think that you were insane, right? 573 00:28:15,600 --> 00:28:18,100 If you said, listen, you know, imagine if you were at 574 00:28:18,100 --> 00:28:20,900 McDonald's, it'll look a Stranglehold on fast food. 575 00:28:21,000 --> 00:28:23,900 And then somebody said, you know, Hey, listen, we heard we 576 00:28:23,900 --> 00:28:26,800 got rumors that some so that there's new company called 577 00:28:26,800 --> 00:28:28,500 Burger King. That's about to hit the streets 578 00:28:28,800 --> 00:28:29,900 and we don't want that to happen. 579 00:28:29,900 --> 00:28:32,100 So I say we start handing out burgers for free. 580 00:28:32,300 --> 00:28:35,100 That's A Burger. King goes bankrupt, right? 581 00:28:35,100 --> 00:28:37,900 We're like that's, that's the most ridiculous asinine 582 00:28:37,900 --> 00:28:39,200 suggestion. Remember I've ever heard in my 583 00:28:39,200 --> 00:28:41,000 entire life? This would fail immediately. 584 00:28:42,800 --> 00:28:45,000 How many other objections do I have to this kind of nonsense? 585 00:28:45,300 --> 00:28:48,500 Oh, if we also, you know, if you have a free trade environment, 586 00:28:48,500 --> 00:28:50,600 especially like you know where there's no tax and other 587 00:28:50,600 --> 00:28:53,100 countries, this kind of regime would also never like, you know, 588 00:28:54,400 --> 00:28:57,800 a collusion monoculars. You would also never work, 589 00:28:57,900 --> 00:28:59,900 right? Because let's say that you have, 590 00:29:00,000 --> 00:29:03,200 you know, all the Standard Oil by eyes are all the oil in 591 00:29:03,200 --> 00:29:08,300 America and has decided not to um, Todd's decided to raise 592 00:29:08,300 --> 00:29:10,300 prices on us. You know, it's Standard Oil. 593 00:29:10,300 --> 00:29:12,800 Also going to buy all the oil in Saudi Arabia or all the oil in 594 00:29:12,800 --> 00:29:14,000 Venezuela and so on and so forth. 595 00:29:14,200 --> 00:29:18,200 Now, as it is OPEC is a pretty stable cartel because you have 596 00:29:18,200 --> 00:29:19,900 one incredibly hegemonic memory foam. 597 00:29:19,900 --> 00:29:22,900 Saudi Arabia which has, you know, almost as many more 598 00:29:22,900 --> 00:29:25,300 resources, rest combined and also you're dealing with 599 00:29:25,300 --> 00:29:29,900 nation-states and you're dealing with nation-states and trees and 600 00:29:29,900 --> 00:29:33,400 things like this, but even then we see constantly that the OPEC 601 00:29:34,300 --> 00:29:37,700 The OPEC, mmm. Give me a second. 602 00:29:37,900 --> 00:29:39,900 The OPEC cartel is not as stable as you think. 603 00:29:40,200 --> 00:29:41,900 Also. We see the OPEC countries often 604 00:29:41,900 --> 00:29:45,700 Lobby, you know, domestic governments to not find 605 00:29:45,700 --> 00:29:48,600 substitutes towards oil. So some of the largest 606 00:29:48,600 --> 00:29:51,000 environmental groups in the United States are backed by 607 00:29:51,000 --> 00:29:54,900 Saudi oil money, right? So not only do you have this 608 00:29:54,900 --> 00:29:57,600 cartel that uses? Not only state power of its 609 00:29:57,600 --> 00:30:00,000 members which state powers of its non-members, right? 610 00:30:00,000 --> 00:30:03,200 To keep this cartel stable. This would not be normally 611 00:30:03,200 --> 00:30:05,600 possible in an internal free trade environment without 612 00:30:05,600 --> 00:30:09,300 antitrust laws. One final Soul quote that I 613 00:30:09,300 --> 00:30:12,300 liked from this one. As far as I could just pause the 614 00:30:12,308 --> 00:30:15,000 like close this picture, you know, imagine Henry Ford has a 615 00:30:15,008 --> 00:30:17,400 monopoly on making cars in America and then you find at the 616 00:30:17,408 --> 00:30:18,900 Henry. Ford is also like lobbying the 617 00:30:18,900 --> 00:30:22,300 French government or lot yet. Imagine Henry Ford gets a 618 00:30:22,300 --> 00:30:24,800 monopoly on cars that America somehow and he tries to keep the 619 00:30:24,800 --> 00:30:27,200 price of Ford cars, very high. And then he said, well, what 620 00:30:27,200 --> 00:30:29,700 about Italian cars? And you know, to have Henry Ford 621 00:30:29,700 --> 00:30:31,700 be like OPEC. In this scenario. 622 00:30:31,800 --> 00:30:34,600 You would have Henry. Ford paying people in Italy to 623 00:30:34,600 --> 00:30:38,000 like, Lobby, the government to make, you know, Maseratis and 624 00:30:38,000 --> 00:30:40,200 Ferraris and whatever more and more expensive. 625 00:30:40,200 --> 00:30:43,000 Like it's very hard to imagine under normal circumstances a 626 00:30:43,000 --> 00:30:46,000 private Corporation lobbying the Italian government to destroy 627 00:30:46,000 --> 00:30:49,100 Italian car companies, but thanks to you know, the 628 00:30:49,500 --> 00:30:52,800 insanity, the US government. We do have the Saudi government 629 00:30:52,900 --> 00:30:56,000 lobbying directly and indirectly the United States government to 630 00:30:56,000 --> 00:30:59,300 be less fuel if to be less energy independent. 631 00:31:00,300 --> 00:31:03,600 What would be a negative downside of the state 632 00:31:03,600 --> 00:31:06,500 monopolizing? The healthcare industry and 633 00:31:07,000 --> 00:31:12,500 declaring all Healthcare needs to be free and paid for by 634 00:31:13,400 --> 00:31:16,100 increasing the printing of the money supply. 635 00:31:16,900 --> 00:31:19,200 Well, okay, that's two that'll do just an increase in the money 636 00:31:19,200 --> 00:31:20,400 supply. So that would just be the price 637 00:31:20,400 --> 00:31:24,800 inflation also, so there's the basic you know it once it's free 638 00:31:24,800 --> 00:31:27,200 people will use it more and you know, you have this overuse and 639 00:31:27,200 --> 00:31:29,900 rationing but the biggest one would be just the bureaucracy. 640 00:31:30,100 --> 00:31:32,300 Of Health Care system, which is already disgusting in this 641 00:31:32,300 --> 00:31:34,100 country. But it, once it were 642 00:31:34,100 --> 00:31:38,200 government-controlled. I can only imagine, you know, 643 00:31:38,200 --> 00:31:40,000 the amount of layers of rocks that would at each level. 644 00:31:40,000 --> 00:31:42,400 But of course again, so the kinds of people that want 645 00:31:42,400 --> 00:31:45,200 universal healthcare, this rocket ization is a feature, not 646 00:31:45,200 --> 00:31:48,400 a bug, right, you know, gotten your nationalism in a in the 647 00:31:48,400 --> 00:31:52,200 present situation not so much a case and you know in the 1950s 648 00:31:52,200 --> 00:31:54,600 and 60s where you had like his post Colonial regimes engaging a 649 00:31:54,600 --> 00:31:56,200 nationalization. In those cases. 650 00:31:56,200 --> 00:31:58,600 They probably really did on ironically think that if they 651 00:31:58,600 --> 00:32:01,300 can just take the Suez Canal. Take British oil, take these 652 00:32:01,300 --> 00:32:03,400 things or take these dams, right? 653 00:32:03,400 --> 00:32:04,600 That would make the country Rich. 654 00:32:04,600 --> 00:32:06,600 I'm sure they are earnestly. Thought that that, you know 655 00:32:06,600 --> 00:32:09,200 these called. But now today, I don't think 656 00:32:09,200 --> 00:32:10,800 anybody really thinks a nationalized, Healthcare System 657 00:32:10,800 --> 00:32:12,600 would make things better off. And what they think is man, just 658 00:32:12,600 --> 00:32:16,400 think of all my liberal friends, that would be able to get hired 659 00:32:16,500 --> 00:32:19,000 with a gender studies degrees, you know, doing diversity 660 00:32:19,000 --> 00:32:21,400 mandates in a Universal Health Care System, right? 661 00:32:21,400 --> 00:32:25,600 That's like the real goal here. One of my songs, you tell me, 662 00:32:25,600 --> 00:32:27,300 you know, oh, you know, what are the downsides? 663 00:32:27,300 --> 00:32:29,500 Y'all listen up the downsides with, I'm assuming like a bunch 664 00:32:29,500 --> 00:32:31,300 of normal person, don't speak until it. 665 00:32:31,500 --> 00:32:34,700 But if this is not going to help you, you know, I'm giving your 666 00:32:34,700 --> 00:32:36,500 audience like a meta-commentary, you know, here are all the 667 00:32:36,500 --> 00:32:38,300 arguments that you can use. We should be aware of the people 668 00:32:38,300 --> 00:32:39,900 that you're arguing with the probably parasites and you only 669 00:32:39,900 --> 00:32:42,500 need to argue with them at all. Yeah. 670 00:32:42,500 --> 00:32:45,300 Yeah. Well, hey, we're still like 671 00:32:45,300 --> 00:32:48,100 Sisyphus pushing that stone up the hill. 672 00:32:49,300 --> 00:32:52,900 One of my favorite Soul quotes in this book was in reality. 673 00:32:53,000 --> 00:32:56,200 Most of the great Fortunes in American history, have resulted 674 00:32:56,200 --> 00:32:59,400 from someone's figuring out, how to reduce costs. 675 00:32:59,400 --> 00:33:02,700 So as to be able to charge lower prices and therefore, gain a 676 00:33:02,708 --> 00:33:05,500 mass market for the product, and referred to this with 677 00:33:05,500 --> 00:33:09,100 automobiles, Rockefeller with oil, Carnegie with steel, Sears 678 00:33:09,100 --> 00:33:11,300 Penny, Walton and other department chain. 679 00:33:11,500 --> 00:33:13,600 Founders with a variety of products. 680 00:33:14,100 --> 00:33:16,300 How have they been able to propagate the lie that 681 00:33:16,300 --> 00:33:20,000 capitalism equals greed equals high prices equals poverty. 682 00:33:22,200 --> 00:33:25,200 You know, here again, I have to blame what normally I love so, 683 00:33:25,200 --> 00:33:27,500 very much, which is urbanization, since urbanization 684 00:33:27,500 --> 00:33:29,300 is part of process of Economic Development. 685 00:33:29,500 --> 00:33:31,700 This is just kind of an inherent, you know, marks used 686 00:33:31,700 --> 00:33:33,900 to talk about the internal contradictions of capitalism, 687 00:33:33,900 --> 00:33:35,500 you know, everybody's competing in the competition. 688 00:33:35,500 --> 00:33:37,800 Somebody wins and here I'm just thinking about it, you know 689 00:33:37,800 --> 00:33:40,900 internal contradiction of capitalism is that it causes 690 00:33:40,900 --> 00:33:43,500 people to move into cities and you know have these higher 691 00:33:43,500 --> 00:33:46,800 productivity jobs, but then it also that makes them think 692 00:33:46,800 --> 00:33:49,800 stupider and stupider things about economics, right? 693 00:33:49,900 --> 00:33:54,200 And so yeah this This cartoon idea of what entrepreneur does 694 00:33:54,200 --> 00:33:57,700 is only kind of possible when you work for, you know, this 695 00:33:57,700 --> 00:34:01,100 wage labor position with other people always late where you get 696 00:34:01,100 --> 00:34:04,200 paid a wage, anybody else, you know, gets paid a wage and all 697 00:34:04,200 --> 00:34:07,000 the risk is offset to somebody else who lives like in a 698 00:34:07,000 --> 00:34:10,300 different part of town, right? Once you have a class of people 699 00:34:10,400 --> 00:34:14,900 that does not really bear wrists, as the market goes, then 700 00:34:14,900 --> 00:34:16,400 you suddenly see the proliferation of these really 701 00:34:16,400 --> 00:34:22,400 dumb ass ideas. Business owners, pay laborers, a 702 00:34:22,400 --> 00:34:26,300 wage knowing that they will only pay them as much as they can, so 703 00:34:26,300 --> 00:34:28,500 they can profit off of them. Therefore. 704 00:34:28,500 --> 00:34:32,000 This is a relationship of exploitation and is inherently 705 00:34:32,000 --> 00:34:33,900 unjust. How do you respond to that? 706 00:34:34,600 --> 00:34:38,100 The, the the wage earner gets paid upfront, right? 707 00:34:38,100 --> 00:34:42,199 He gets paid with no. With a, he doesn't bear any risk 708 00:34:42,199 --> 00:34:44,699 in this situation, and always the person who Bears the risk 709 00:34:44,699 --> 00:34:48,699 gets a risk premium, you know, the, you know, People on the 710 00:34:48,900 --> 00:34:51,500 payroll not only do they get paid before stockholders. 711 00:34:51,500 --> 00:34:54,000 They get paid before, you know creditors, right? 712 00:34:54,000 --> 00:34:57,300 You know, if you have a firm, so you have a firm and then it has 713 00:34:57,300 --> 00:34:58,500 the people who own shares in the company. 714 00:34:58,700 --> 00:35:01,800 The people who have lent money to the company and people who 715 00:35:01,800 --> 00:35:04,600 work for the company, you know, you can't imagine a business 716 00:35:04,600 --> 00:35:06,300 saying, listen, I'm sorry. I can't make payroll today. 717 00:35:06,300 --> 00:35:07,900 I got to pay dividends to the shareholders. 718 00:35:07,900 --> 00:35:10,200 I mean not only is that, you know, blatantly like it's 719 00:35:10,200 --> 00:35:12,600 illegal and it's unimaginable that just not how firms are 720 00:35:12,600 --> 00:35:14,300 organized. But even sang like this and I 721 00:35:14,300 --> 00:35:17,500 can't make payroll today because I owe, you know, ayo, ayo, 722 00:35:17,500 --> 00:35:20,400 Johnny. Whatever over there, you know 723 00:35:20,500 --> 00:35:22,800 fifty billion dollars. So I got to pay him before I pay 724 00:35:22,800 --> 00:35:24,800 the workers. This too is like completely 725 00:35:24,800 --> 00:35:27,700 illegal and even the absence of like a legal Arrangement here. 726 00:35:27,700 --> 00:35:30,300 It was just an implicit fact of industrial organization. 727 00:35:30,500 --> 00:35:32,800 So workers. Get all these advantages over 728 00:35:32,800 --> 00:35:35,000 the hard working capital is invested the money and all the 729 00:35:35,000 --> 00:35:37,000 hard-working creditors and Latin the money to finance. 730 00:35:37,000 --> 00:35:39,800 The operation workers gets a cut right in the front of line every 731 00:35:39,800 --> 00:35:42,600 other week and say, hold on before you pay anyone else 732 00:35:43,100 --> 00:35:45,800 before you sold anything. I don't care what you sold. 733 00:35:45,800 --> 00:35:47,400 I don't care who, you know, I don't care who you met. 734 00:35:47,400 --> 00:35:51,500 I don't care what Almonds are. I worked 40 hours this week. 735 00:35:51,600 --> 00:35:55,100 You have to pay me first, right? And that's why you get people's 736 00:35:55,500 --> 00:35:58,300 right in exchange for the in exchange for workers and 737 00:35:58,300 --> 00:35:59,800 literally worker privilege, right? 738 00:35:59,800 --> 00:36:03,100 The worker privilege of being paid, first guaranteed, no 739 00:36:03,100 --> 00:36:07,200 excuses. You get people's Exactly. 740 00:36:07,200 --> 00:36:10,900 And the exploitation doesn't account for all of the 741 00:36:10,900 --> 00:36:13,100 businesses that are not profitable and go out of 742 00:36:13,107 --> 00:36:17,400 business, or the fact that consumers are exploiting stores 743 00:36:17,600 --> 00:36:20,300 that they only go to. So they could profit off of 744 00:36:20,300 --> 00:36:22,500 their products and services that they want. 745 00:36:22,500 --> 00:36:25,400 They don't care about those workers where they shop. 746 00:36:25,400 --> 00:36:29,200 So, of course, the exploitation just exhausts me to no. 747 00:36:29,200 --> 00:36:32,100 End with the paper, your audience can read on this. 748 00:36:32,100 --> 00:36:34,500 It's I think it's literally called Marxist and Austrian 749 00:36:34,500 --> 00:36:36,200 class analysis by Hans, Hermann. Hoppa. 750 00:36:36,900 --> 00:36:39,800 I'm where he just talks about viewing the different, you know, 751 00:36:39,800 --> 00:36:43,100 the different tune wage and you know, a hypothetical higher 752 00:36:43,100 --> 00:36:46,200 marginal productivity and saying with that difference is an 753 00:36:46,200 --> 00:36:49,800 interest premium. Yeah, I the recorded an audio 754 00:36:49,800 --> 00:36:51,100 for that. Excellent essay. 755 00:36:51,100 --> 00:36:53,500 I will put that in the description below. 756 00:36:53,600 --> 00:36:56,300 That was one of my favorite papers, just because he starts 757 00:36:56,300 --> 00:36:59,300 out by saying marks has five general claims, by the way, all 758 00:36:59,300 --> 00:37:01,800 of them are correct. And I'm like, oh my gosh, what's 759 00:37:01,800 --> 00:37:04,400 going on here? And then he just makes the solid 760 00:37:04,400 --> 00:37:06,000 case that yeah. These are all true. 761 00:37:06,500 --> 00:37:10,500 Long as the culprit is the state or any aggressor parasite. 762 00:37:10,500 --> 00:37:12,100 Whether small scale or large scale. 763 00:37:12,500 --> 00:37:14,300 That was just so brilliant. Yes. 764 00:37:14,300 --> 00:37:19,100 I'll definitely put that in the description competition in a 765 00:37:19,107 --> 00:37:22,100 free market is actually competing to cooperate. 766 00:37:22,300 --> 00:37:27,300 You agree with that and why? Computing to cooperate. 767 00:37:27,400 --> 00:37:31,300 Oh, I guess sure. Yes, you are competing to 768 00:37:31,300 --> 00:37:35,500 structure the best, you know the best deals right? 769 00:37:35,500 --> 00:37:38,300 You're competing for the best social organizations division of 770 00:37:38,300 --> 00:37:40,800 labor. So yes, you are competing for 771 00:37:41,000 --> 00:37:43,500 the most productive forms of social cooperation. 772 00:37:43,500 --> 00:37:46,300 So yes, competition is competing to cooperate. 773 00:37:47,300 --> 00:37:50,500 What I got from that was in response to the competition 774 00:37:50,500 --> 00:37:53,200 equals dog-eat-dog. It's like, well, yes. 775 00:37:53,200 --> 00:37:55,500 Red Robin is competing with Arden. 776 00:37:55,700 --> 00:37:58,500 But in order for Red Robin to exist in the first place. 777 00:37:58,700 --> 00:38:03,100 They have to cooperate with like a million different people to 778 00:38:03,100 --> 00:38:06,100 buy the silverware and make the tables and build the furniture 779 00:38:06,100 --> 00:38:09,200 and everything else. Why do you? 780 00:38:09,700 --> 00:38:12,400 Do you think the criticism of the free market? 781 00:38:12,400 --> 00:38:16,800 It's dog-eat-dog is Justified and how could you communicate to 782 00:38:16,800 --> 00:38:18,900 someone that? It's not that case? 783 00:38:20,700 --> 00:38:23,200 At the free market is talking talk again here. 784 00:38:23,200 --> 00:38:25,900 If somebody were to say that I was a sort of Nod and say, yes, 785 00:38:25,900 --> 00:38:28,800 right. That you I want a ruthless 786 00:38:28,800 --> 00:38:33,000 dog-eat-dog competition to give me, you know, cheaper food, 787 00:38:33,100 --> 00:38:34,800 right? Ruthless doggy, dog. 788 00:38:34,800 --> 00:38:37,300 Competition in the production of goods is actually a very, very 789 00:38:37,300 --> 00:38:40,900 good thing. I only want the best, most able, 790 00:38:40,900 --> 00:38:45,000 most intelligent, most, whatever people, you know, using up 791 00:38:45,000 --> 00:38:47,400 scarce resources using up man hours using of industrial 792 00:38:47,400 --> 00:38:49,900 equipment to make me my cell phone. 793 00:38:50,200 --> 00:38:54,400 My computer, you know, the food that gets to my table, right? 794 00:38:54,400 --> 00:38:57,100 This is you know, the economy isn't a game, right? 795 00:38:57,100 --> 00:38:59,600 Like this is real life, you know, the 7 billion people on 796 00:38:59,600 --> 00:39:03,700 Earth and we all got to eat some are 0 and you know, I'm not here 797 00:39:03,700 --> 00:39:05,800 for your feelings here. I mean, there are some people 798 00:39:05,800 --> 00:39:07,700 who are going to try to purchase, you know, fair trade 799 00:39:07,700 --> 00:39:10,100 goods, although of course, fair trade goods more often than not 800 00:39:10,100 --> 00:39:14,300 just means like made in America. But I would say, you know, it's 801 00:39:14,308 --> 00:39:17,600 a dog-eat-dog competition like yeah, I'm trying to live, right? 802 00:39:17,600 --> 00:39:21,200 I only want the best people using up scarce resources to 803 00:39:21,200 --> 00:39:24,200 make things for that. What differentiates a good 804 00:39:24,200 --> 00:39:30,100 Economist from a bad economist? I'm a good Economist, you know, 805 00:39:30,100 --> 00:39:33,400 has theories or a good Economist make statements are in 806 00:39:33,400 --> 00:39:35,600 accordance with reality. So an economist that can make 807 00:39:35,600 --> 00:39:40,700 good predictions and Economist that that clarifies things for 808 00:39:40,700 --> 00:39:42,600 those who speaks to and instead of obfuscating. 809 00:39:42,600 --> 00:39:46,300 So as an economist, my goal in particular, this may not be 810 00:39:46,300 --> 00:39:48,900 whatever Congress wants but I want because I want to be an 811 00:39:48,900 --> 00:39:52,100 academic, you know, I want economics to be understandable 812 00:39:52,100 --> 00:39:55,100 to lay people. I want normal people to have an 813 00:39:55,107 --> 00:39:58,100 understanding of how the economy works because when You have this 814 00:39:58,100 --> 00:40:01,000 sort of obfuscation of economic laws through P hacking or 815 00:40:01,000 --> 00:40:06,000 whatever or other ways of empirical games, you know, 816 00:40:06,000 --> 00:40:08,100 people think that the economy something abstract something 817 00:40:08,100 --> 00:40:11,100 that is not understandable selling only this mystery cast 818 00:40:11,100 --> 00:40:13,800 of academic priest knows how to do. 819 00:40:14,300 --> 00:40:16,800 And then they start thinking and saying, things like that. 820 00:40:16,800 --> 00:40:18,900 You can start handing out healthcare for free, right? 821 00:40:19,000 --> 00:40:21,400 So for me, a good Economist is somebody who's a public 822 00:40:21,400 --> 00:40:24,700 intellectual and helps people understand that this is not the 823 00:40:24,700 --> 00:40:27,000 case, and I'm pretty sure this was kind of nice to just 824 00:40:27,000 --> 00:40:29,100 conception. A good Economist is also someone 825 00:40:29,100 --> 00:40:31,900 who clarifies rather than obfuscates, but you could say in 826 00:40:31,900 --> 00:40:36,300 other sense, a good Economist is then one who, you know, gives 827 00:40:36,300 --> 00:40:38,300 good advice to The Sovereign, right? 828 00:40:38,300 --> 00:40:40,200 An economist is going to make good predictions, make good 829 00:40:40,200 --> 00:40:41,900 policy, proposals things like that. 830 00:40:42,700 --> 00:40:46,100 So I would say I'm in the first category or walk to be in the 831 00:40:46,100 --> 00:40:49,200 first category. I want to improve economic 832 00:40:49,200 --> 00:40:52,000 literature of the populace and I'm sure there are others who 833 00:40:52,000 --> 00:40:53,500 want to give good advice for The Sovereign. 834 00:40:53,600 --> 00:40:55,700 Certainly, it's more profitable to give more good advice to The 835 00:40:55,700 --> 00:40:59,900 Sovereign is too. To educate the masses, although 836 00:40:59,900 --> 00:41:01,800 of course, we see that a lot of condiments, give bad advice to 837 00:41:01,800 --> 00:41:06,600 The Sovereign often on purpose. If I had a paraphrase Henry 838 00:41:06,600 --> 00:41:08,200 hazlitt, I don't have it in front of me. 839 00:41:08,300 --> 00:41:13,300 He said something to the extent of Economics is the practice of 840 00:41:13,300 --> 00:41:17,300 being able to see not only the short term effects on one group. 841 00:41:17,300 --> 00:41:19,000 What? The long-term effects on all 842 00:41:19,000 --> 00:41:23,200 groups or secondary consequences on more than the immediate group 843 00:41:23,300 --> 00:41:25,200 affected. What does this mean? 844 00:41:25,200 --> 00:41:29,500 And why is that important? okay, so how's Liz sort of doing 845 00:41:29,500 --> 00:41:34,300 um, Seeing in the Unseen. This is actually a this is 846 00:41:34,300 --> 00:41:37,000 actually very interesting thing for has to say because it kind 847 00:41:37,000 --> 00:41:40,700 of does validate. The I'm not going to say how it 848 00:41:40,800 --> 00:41:42,600 I'm not going to say has it was like a bad economy, but that 849 00:41:42,600 --> 00:41:45,700 means has what sort of viewers into the, you know, advice of 850 00:41:45,700 --> 00:41:48,400 The Sovereign style of Economics as opposed to the educating the 851 00:41:48,400 --> 00:41:51,500 masses of Economics, which again is perfectly valid role to have. 852 00:41:52,500 --> 00:41:55,600 But in this case, you know, most people that are lobbying, The 853 00:41:55,600 --> 00:41:58,700 Sovereign for one policy or another are going to try to get 854 00:41:58,700 --> 00:42:01,300 people just for themselves and They'll try to frame this being 855 00:42:01,300 --> 00:42:03,600 in the public interest. And so in that case you sang the 856 00:42:03,600 --> 00:42:05,200 role of the economist is to be 0. 857 00:42:05,200 --> 00:42:09,000 If to have a heightened sense of awareness of not only who 858 00:42:09,000 --> 00:42:11,200 benefits but who loses in the long run and the short run. 859 00:42:13,100 --> 00:42:17,000 I want to get into your dissertation research. 860 00:42:18,000 --> 00:42:20,200 The development of political Talent. 861 00:42:20,200 --> 00:42:22,200 Is that your dissertation topic. No. 862 00:42:22,200 --> 00:42:24,100 Now it has changed significantly. 863 00:42:24,100 --> 00:42:27,200 So my current line of research is on what are called 864 00:42:27,200 --> 00:42:30,100 developmental States. So developmental States. 865 00:42:30,200 --> 00:42:34,100 Also, be called state director capitalism. 866 00:42:34,200 --> 00:42:38,100 But even that kind of hides it. So, in the normal, in a normal 867 00:42:38,100 --> 00:42:41,700 liberal economy, you see that in the private sector businesses or 868 00:42:41,700 --> 00:42:45,100 lot set their own goals, based on the profit loss metric, but 869 00:42:45,100 --> 00:42:48,100 the mechanism, by which they operate is controlled by the 870 00:42:48,100 --> 00:42:50,200 government, all sorts of regulations on you can hire, who 871 00:42:50,200 --> 00:42:52,400 can fire, you know, what bit, what materials you can use. 872 00:42:52,400 --> 00:42:56,800 And so on who buy from and in developmental States, it's sort 873 00:42:56,800 --> 00:43:00,000 of the opposite where the state sets development milestones. 874 00:43:00,100 --> 00:43:01,900 Stones to reach, you know, we need to have something. 875 00:43:01,900 --> 00:43:03,600 So it's amount of steel production, the country, but the 876 00:43:03,600 --> 00:43:07,200 private sector is wholly free to reach that goal. 877 00:43:07,200 --> 00:43:10,300 However, the desire. And so, a lot of the countries, 878 00:43:10,300 --> 00:43:13,800 we think of as capital success, stories are more on that model. 879 00:43:13,800 --> 00:43:17,100 South Korea was a mental state. Taiwan was a developmental 880 00:43:17,100 --> 00:43:20,000 State. Hong Kong, Hong Kong so much 881 00:43:20,400 --> 00:43:24,100 South Korea, Taiwan and Singapore would have a mental 882 00:43:24,100 --> 00:43:27,300 States. The first one was made to Japan 883 00:43:28,000 --> 00:43:30,000 in the between the 1890s and World War Two. 884 00:43:30,800 --> 00:43:32,900 And then, like the third generation developmental stage 885 00:43:32,900 --> 00:43:39,900 will be countries, like Indonesia countries like to some 886 00:43:39,900 --> 00:43:42,500 extent. Bangladesh, a lot of other South 887 00:43:42,500 --> 00:43:44,800 Asian countries, but Indonesian bangle is probably the two 888 00:43:44,800 --> 00:43:46,900 biggest ones. These are the other big growth 889 00:43:46,900 --> 00:43:49,500 Miracles and what we saw in those cases was a lot of Market 890 00:43:49,500 --> 00:43:52,400 liberalization in the sense that there's a lot of, there's a lot 891 00:43:52,400 --> 00:43:56,500 less predation and Taxation, but you saw a lot more, you know, 892 00:43:56,600 --> 00:44:00,000 government having set like exogenously goal. 893 00:44:00,100 --> 00:44:03,100 Goals for the economy. So the best example of this 894 00:44:03,100 --> 00:44:05,800 would be in South Korea, Park chung-hee, who's a dictator at 895 00:44:05,800 --> 00:44:08,900 the time felt that it was important that South Korea have 896 00:44:08,900 --> 00:44:10,700 it's a significant steel production industry because he 897 00:44:10,700 --> 00:44:13,100 wanted the country to be Sovereign arms, manufacturing 898 00:44:14,200 --> 00:44:17,900 and very few people want to invest in this because South 899 00:44:17,900 --> 00:44:20,600 Korea, has some fuckin a right has generous coal, reserves were 900 00:44:20,600 --> 00:44:22,000 not so much too, generous iron reserves. 901 00:44:22,200 --> 00:44:24,500 And so nobody wants to run up the money, and I think Park 902 00:44:24,500 --> 00:44:25,700 chung-hee ended up diverting money. 903 00:44:25,700 --> 00:44:28,700 That was used that was supposed to be reparation for the victims 904 00:44:28,700 --> 00:44:31,200 of Japanese imperialism. The other government pocket that 905 00:44:31,200 --> 00:44:33,800 and start building the steel mill, but he didn't actually 906 00:44:33,800 --> 00:44:35,000 have like state-owned Industries. 907 00:44:35,000 --> 00:44:36,500 Do this. This is like the private sector 908 00:44:36,500 --> 00:44:39,400 did according to profit and loss, but the state was the 909 00:44:39,400 --> 00:44:42,400 investor often. You'll hear socialist say, oh, 910 00:44:42,400 --> 00:44:44,400 you know, such and such isn't socialism. 911 00:44:44,500 --> 00:44:49,800 It is State capitalism. And in a sense, you could also 912 00:44:49,800 --> 00:44:54,600 characterize this kind of behavior as state capitalism 913 00:44:54,700 --> 00:45:01,000 where, the state is an investor in an investor insert 914 00:45:01,000 --> 00:45:04,100 entrepreneurial goals that are fulfilled almost entirely by the 915 00:45:04,107 --> 00:45:07,500 private sector. And so those things those 916 00:45:07,500 --> 00:45:10,500 countries are what I'm interested in studying and my 917 00:45:10,500 --> 00:45:11,900 dissertation topic. Focuses. 918 00:45:11,900 --> 00:45:14,600 Also, especially on the Syrian Arab Republic. 919 00:45:14,800 --> 00:45:18,200 And my argument is that from 2000 to 2011. 920 00:45:18,200 --> 00:45:20,700 So the president will change your Bashar al-assad so 921 00:45:20,700 --> 00:45:24,400 president right now, but during the Undisputed tenure of 922 00:45:24,400 --> 00:45:28,500 President Bashar al-assad that he was attempting to liberalize. 923 00:45:28,700 --> 00:45:31,700 Your base on that developmental State model, but there was a 924 00:45:31,700 --> 00:45:34,200 certain loss of State capacity in the transition. 925 00:45:34,400 --> 00:45:36,000 Which contribute to the Syrian Civil War. 926 00:45:37,400 --> 00:45:41,200 Yeah, now I'm seeing why Obama said Assad had to go. 927 00:45:41,200 --> 00:45:44,500 It, it all makes sense actually before that. 928 00:45:44,500 --> 00:45:46,100 They're saying, you know, Assad's a great reformer. 929 00:45:46,100 --> 00:45:47,800 They were kind of talking about the fact that Bashar al-assad 930 00:45:47,800 --> 00:45:50,800 was, you know, removing a lot of price controls. 931 00:45:50,800 --> 00:45:55,200 He was entering Syria into a lot of regional trade agreements and 932 00:45:55,400 --> 00:45:58,100 on his during his presidential inauguration speech. 933 00:45:58,200 --> 00:46:00,300 He said that he wanted to transition Syria into a social 934 00:46:00,300 --> 00:46:02,400 market economy. And most people who hear social 935 00:46:02,400 --> 00:46:04,000 market economy. Think it's something like, you 936 00:46:04,000 --> 00:46:07,000 know, Selena like Sweden or something, but really he 937 00:46:07,200 --> 00:46:11,800 Something like West, Germany. But the problem for him, you 938 00:46:11,808 --> 00:46:14,000 know, this is this is now me just advancing my an argument 939 00:46:14,000 --> 00:46:18,400 here, you know, the transition from national socialism to the 940 00:46:18,400 --> 00:46:20,500 social market economy that we saw in West Germany. 941 00:46:20,700 --> 00:46:23,100 Had an intervening step involving killing a lot of 942 00:46:23,107 --> 00:46:25,800 national socialists. Banning them from politics and 943 00:46:25,800 --> 00:46:28,400 then holding the entire country at gunpoint under the US, Army 944 00:46:28,500 --> 00:46:31,900 and the French Army and the British army, right Bashar 945 00:46:31,900 --> 00:46:34,300 al-assad's, like we're going to transfer, we're going to move 946 00:46:34,400 --> 00:46:38,500 from this sort of national socialism to capitalism, but you 947 00:46:38,500 --> 00:46:41,500 can't do that. When like your entire support 948 00:46:41,500 --> 00:46:44,100 base. Are those selfsame socialist, 949 00:46:44,300 --> 00:46:46,200 right? It would be like if Hitler made 950 00:46:46,200 --> 00:46:48,400 a unilateral decision. I'm not compared to Hitler. 951 00:46:48,400 --> 00:46:50,500 I am in this aspect actually write. 952 00:46:50,500 --> 00:46:53,600 It would be as if Hitler sort of made unilateral decision and 953 00:46:53,600 --> 00:46:59,400 it's a 1933. So, in in 1942 that okay, 954 00:46:59,400 --> 00:47:01,600 everybody. No more national socialism. 955 00:47:01,600 --> 00:47:03,700 Now, we're going to prosecute this war with the Soviet using 956 00:47:03,700 --> 00:47:05,700 capitalism is capital, is more productive. 957 00:47:05,700 --> 00:47:07,800 So we're getting rid of all these users parasites, that are 958 00:47:08,000 --> 00:47:10,900 attached to German industry. Re but the thing is all those 959 00:47:10,900 --> 00:47:11,700 useless, parasites. Attach. 960 00:47:11,700 --> 00:47:14,100 The German industry are like high-ranking National Socialist 961 00:47:14,100 --> 00:47:15,800 Party officials. So you have a problem here. 962 00:47:17,500 --> 00:47:21,600 You have actually made the case against us entry and British 963 00:47:21,600 --> 00:47:26,300 entry into the second world war. How do you justify that 964 00:47:26,300 --> 00:47:30,100 position? Yeah, so WWII delivered almost 965 00:47:30,100 --> 00:47:32,100 all of Eastern Europe into the hands of Joseph Stalin. 966 00:47:33,100 --> 00:47:37,600 It's a pretty simple case here. America had no National Security 967 00:47:37,600 --> 00:47:41,100 interest in preserving the British and French colonial 968 00:47:41,100 --> 00:47:44,200 empires. It was forced upon the, it was 969 00:47:44,200 --> 00:47:46,100 not even forced upon them. The American people were kind of 970 00:47:46,100 --> 00:47:50,000 tricked into And so, I think that if you look back with an 971 00:47:50,000 --> 00:47:53,700 objective eye and you think about, you know, the if you 972 00:47:53,700 --> 00:47:56,000 think the public environment in there at the time and looking at 973 00:47:56,000 --> 00:47:58,900 the outcomes looking back and you don't allow yourself to be 974 00:47:58,900 --> 00:48:03,200 sort of enchanted with with, with rhetorical spells about 975 00:48:03,200 --> 00:48:04,800 this or that atrocity being carried out by this. 976 00:48:04,800 --> 00:48:09,000 Is that government, you know? World War Two American entry 977 00:48:09,000 --> 00:48:11,600 into World War 2 was a mistake, right? 978 00:48:11,600 --> 00:48:15,700 The world would have been for all intense far better off if we 979 00:48:15,700 --> 00:48:18,900 allowed Hitler and Stalin to grind each other to death. 980 00:48:18,900 --> 00:48:21,600 And then perhaps after that, you know, we can sweep in. 981 00:48:21,600 --> 00:48:24,500 And then, you know, liberate Poland, and Czechoslovakia, but 982 00:48:24,500 --> 00:48:28,300 as it is an outcome where, you know, the Bolshevik regime is 983 00:48:28,300 --> 00:48:33,700 allowed unchallenged dominion over Ukraine, Belarus Poland, 984 00:48:33,700 --> 00:48:37,200 Hungary, you know, Czechoslovakia. 985 00:48:37,500 --> 00:48:41,000 Eastern, Germany, Latvia, Estonia, Lithuania, uncountable, 986 00:48:41,000 --> 00:48:44,700 atrocities. I recently read an article about 987 00:48:44,700 --> 00:48:49,000 how after the Bolshevik Revolution, several like 988 00:48:49,000 --> 00:48:53,000 thousands of Cossacks who are anti-bolshevik fled West and 989 00:48:53,000 --> 00:48:54,900 then made it into Germany. The end up fighting up with, 990 00:48:54,900 --> 00:48:56,700 with the worm Ox, with the attempt of dislodging, the 991 00:48:56,707 --> 00:48:58,700 Soviets. And then after the War, the 992 00:48:58,700 --> 00:49:00,600 British took these people who'd escaped, this Bolshevik 993 00:49:00,600 --> 00:49:02,900 Revolution, and send them back to Stalin to die. 994 00:49:03,000 --> 00:49:05,000 I mean, this is in my view, like a monstrosity. 995 00:49:05,000 --> 00:49:07,200 It's not justifiable, right? Obviously. 996 00:49:07,400 --> 00:49:09,300 I don't believe that America should be intervening on the 997 00:49:09,300 --> 00:49:11,800 side of Hitler to dislodge the Soviet Union. 998 00:49:12,000 --> 00:49:15,700 Like if we did, if we did that and we were to plunge Europe, if 999 00:49:15,700 --> 00:49:17,900 we were to punch Poland and Europe and Hungary, under the 1000 00:49:17,900 --> 00:49:22,700 control of Nazis, this to would be a disastrous outcome, but 1001 00:49:22,700 --> 00:49:24,900 there's no reason for us to intercede on behalf of Joseph 1002 00:49:24,900 --> 00:49:29,600 Stalin, right? And America was providing, you 1003 00:49:29,600 --> 00:49:33,500 know, an unforgivable. I mean even one dollar to 1004 00:49:33,500 --> 00:49:35,600 Bolshevik regime is unforgivable any amount of actual Stones 1005 00:49:35,600 --> 00:49:40,100 unforgivable with the amount of American American productivity, 1006 00:49:40,100 --> 00:49:43,800 that was diverted towards saving people, you know, hood massacre, 1007 00:49:43,800 --> 00:49:45,800 you know, the people of Ukraine, the people of st. 1008 00:49:45,800 --> 00:49:49,300 Petersburg, you know, killed hundreds of thousands of people 1009 00:49:49,300 --> 00:49:52,800 in a Red Terror across the country and said, we know it is 1010 00:49:53,000 --> 00:49:57,500 in, it is imperative that we prop up this regime against 1011 00:49:57,500 --> 00:50:01,800 Hitler know, this regime deserves to fall, right? 1012 00:50:01,800 --> 00:50:05,200 The Bolshevik regime has to fall and America should not be 1013 00:50:05,300 --> 00:50:09,700 intervening to save them. And, you know, England and 1014 00:50:09,700 --> 00:50:13,100 France are capable, you know, they're big boy countries right 1015 00:50:13,200 --> 00:50:14,800 there Cape. If they know that America is not 1016 00:50:14,800 --> 00:50:16,900 going to save them. They can engage in normal 1017 00:50:16,900 --> 00:50:20,000 politics to get an outcome worthy of them. 1018 00:50:20,000 --> 00:50:22,100 Right? The fall of Paris to the Germans 1019 00:50:22,100 --> 00:50:25,400 was also a disaster right? Even though, you know, we talked 1020 00:50:25,400 --> 00:50:27,000 about stopping German white supremacy. 1021 00:50:27,000 --> 00:50:28,900 I mean, the Germans are watching from his regime. 1022 00:50:29,000 --> 00:50:31,200 The French are also watching from his regime, right? 1023 00:50:31,200 --> 00:50:33,200 The British are also white from sushi, right? 1024 00:50:33,200 --> 00:50:35,300 If you think about the atrocities that England was 1025 00:50:35,300 --> 00:50:37,000 perpetrating on India and France. 1026 00:50:37,400 --> 00:50:41,100 Syria, the idea that, you know, we were fighting for freedom and 1027 00:50:41,100 --> 00:50:46,300 democracy for God's sakes. You know, you had the, the Dutch 1028 00:50:46,300 --> 00:50:49,200 government in Exile operating out of Indonesia, right. 1029 00:50:49,300 --> 00:50:51,500 Fighting for freedom, and democracy of colonial regiments. 1030 00:50:51,700 --> 00:50:55,500 No, I don't think so. I don't think that America has 1031 00:50:55,500 --> 00:50:58,500 any moral imperative, or practical, imperative to take 1032 00:50:58,500 --> 00:51:01,200 sides. In this kind of struggle between 1033 00:51:01,300 --> 00:51:04,500 Bolsheviks Nazis, and the foremost Colonial superpowers of 1034 00:51:04,500 --> 00:51:07,400 the planet. Yeah, that's a good point. 1035 00:51:07,400 --> 00:51:11,500 The war for democracy was led by unelected, Stalin, Churchill was 1036 00:51:11,500 --> 00:51:13,900 appointed and never elected. The first time he was up for 1037 00:51:13,900 --> 00:51:16,100 election. They voted him out and 1038 00:51:16,100 --> 00:51:19,200 Roosevelt's not exactly who you think of as Democratic, you 1039 00:51:19,200 --> 00:51:22,000 know, kidnapping hundreds of thousands of Japanese people and 1040 00:51:22,200 --> 00:51:25,800 confiscating the nation's gold. So well, those were atrocity. 1041 00:51:25,800 --> 00:51:26,800 Sorry. Well, I'm just listing off 1042 00:51:26,800 --> 00:51:30,000 post-war Allied atrocities, you know, during World War 2. 1043 00:51:30,000 --> 00:51:32,500 When Japan was pretending to be a decolonizing force. 1044 00:51:32,700 --> 00:51:35,400 I had the greater the greater East Asia co-prosperity sphere. 1045 00:51:35,400 --> 00:51:36,800 First. I'm under no Illusions. 1046 00:51:36,800 --> 00:51:38,400 This is actually end to colonialism. 1047 00:51:38,500 --> 00:51:41,300 It was a shift from Japanese, colonial rule from French 1048 00:51:41,300 --> 00:51:44,900 colonialism to Japanese colonialism puppet regime setup 1049 00:51:44,900 --> 00:51:46,700 all out. They were very clear that the 1050 00:51:46,700 --> 00:51:48,300 Yamato razors. They call themselves to be the 1051 00:51:48,300 --> 00:51:54,700 center of this but you saw the establishment of Of Quasi 1052 00:51:54,700 --> 00:51:58,600 independent self-governing institutions in Vietnam and Laos 1053 00:51:58,600 --> 00:52:00,800 and Cambodia after Japanese swept through. 1054 00:52:01,100 --> 00:52:05,200 And clearly these countries were capable of establishing self 1055 00:52:05,200 --> 00:52:07,100 governing institutions, even if they were to throw all of 1056 00:52:07,100 --> 00:52:10,400 another, but when the French military reassert control over 1057 00:52:10,400 --> 00:52:14,900 Vietnam, they returned it under French Colonial Administration, 1058 00:52:14,900 --> 00:52:17,400 and making the argument that colonizes like to make, which is 1059 00:52:17,400 --> 00:52:19,600 that these countries were not ready for self-rule, but they 1060 00:52:19,600 --> 00:52:22,900 clearly were, there must have been a legion of non-japanese. 1061 00:52:23,000 --> 00:52:26,200 Crops and activists who are administrative day to day 1062 00:52:26,200 --> 00:52:29,700 operations of Vietnam, but not. So according to the French 1063 00:52:29,700 --> 00:52:33,400 military who again brutally reconquered Vietnam and the 1064 00:52:33,400 --> 00:52:36,200 result of that. We got to see in America against 1065 00:52:36,200 --> 00:52:40,000 one of years later. What is the important difference 1066 00:52:40,000 --> 00:52:43,000 between someone on the left and someone on the right? 1067 00:52:43,700 --> 00:52:50,400 So this is this is why going by Paul Gottfried's answer that to 1068 00:52:50,400 --> 00:52:54,200 be on the left is to believe in human equality and that 1069 00:52:54,200 --> 00:52:59,000 inequalities are either artificial or illusory or 1070 00:52:59,000 --> 00:53:00,800 otherwise ought to be removed or explained away. 1071 00:53:01,300 --> 00:53:03,700 And to be on the right is to believe that some people are 1072 00:53:03,700 --> 00:53:07,700 better than others. How can one be both an anarchist 1073 00:53:07,800 --> 00:53:12,500 and a capitalist? I believe in private property as 1074 00:53:12,500 --> 00:53:16,300 the primary as that property should be the primary form of 1075 00:53:16,300 --> 00:53:19,100 social relation. So people can afford private 1076 00:53:19,100 --> 00:53:21,900 property without the state. We see plenty of cases of this 1077 00:53:21,900 --> 00:53:24,400 happening. I guess I can if I can just give 1078 00:53:24,400 --> 00:53:28,500 an example of police and uses the case of bush tribes in 1079 00:53:28,500 --> 00:53:31,900 Angola. Who when the Portuguese showed 1080 00:53:31,900 --> 00:53:34,800 up on the end goal and Coast, there were people there people 1081 00:53:34,800 --> 00:53:38,100 in cities on the coast who would go and trade Caravans all along 1082 00:53:38,100 --> 00:53:41,400 the interior. For goods like Ivory. 1083 00:53:41,400 --> 00:53:45,000 And when the Portuguese came, they were trading guns of people 1084 00:53:45,000 --> 00:53:46,900 on the coast for ivory from the interior. 1085 00:53:47,000 --> 00:53:49,900 And so what you sought first was an increase in just bad behavior 1086 00:53:49,900 --> 00:53:53,000 to satisfy the Portuguese demand, but what the tribals are 1087 00:53:53,000 --> 00:53:55,400 able to do was to Simply threatened to produce only at 1088 00:53:55,400 --> 00:53:58,400 subsistence. And what there's a cause would 1089 00:53:58,400 --> 00:54:01,600 be the as these giant my guy as he's as he's irate. 1090 00:54:01,600 --> 00:54:04,600 And Caravans, we're traveling to the interior for Ivory, you 1091 00:54:04,600 --> 00:54:06,600 know, you have to spend money on the mercenaries and so on. 1092 00:54:06,900 --> 00:54:09,400 But if there's nothing to take there's nothing to take. 1093 00:54:09,500 --> 00:54:11,500 And so you end up with a whole bunch of, you know, very angry 1094 00:54:11,500 --> 00:54:13,100 mercenaries wonder where they're going to get paid. 1095 00:54:13,300 --> 00:54:15,700 And so this is just an example conceptually. 1096 00:54:15,700 --> 00:54:17,500 So what you end up seeing? Sorry the fun. 1097 00:54:17,500 --> 00:54:20,800 The second half of this the social Arrangement that resulted 1098 00:54:20,800 --> 00:54:23,100 was that these Caravans were have to pay in advance. 1099 00:54:23,300 --> 00:54:25,900 So, you know, you imagine this Caravan of people with guns and 1100 00:54:25,900 --> 00:54:28,300 mercenaries, which Up to a tribe and say, you know, we're going 1101 00:54:28,300 --> 00:54:29,600 to get out. We're going to be back for Ivory 1102 00:54:29,600 --> 00:54:32,700 next week or, you know, six months rather and the tribes 1103 00:54:32,700 --> 00:54:34,800 Escape you have to pay us right now. 1104 00:54:34,900 --> 00:54:38,200 It's like okay pay you and what is like pay us an alcohol and 1105 00:54:38,200 --> 00:54:40,300 then they get all the alcohol and then the tribes would all 1106 00:54:40,308 --> 00:54:41,900 just drink it like right there in front of him. 1107 00:54:42,200 --> 00:54:43,600 Right? No refunds. 1108 00:54:43,600 --> 00:54:46,500 Come back in six months, right? And obviously, you know, the 1109 00:54:46,500 --> 00:54:49,500 tribes would deliver but the reason is this of the the these 1110 00:54:49,500 --> 00:54:52,700 Caravans of Raiders couldn't actually, you know, just take 1111 00:54:52,700 --> 00:54:54,600 the alcohol back when they come back later, something like this. 1112 00:54:55,600 --> 00:54:59,400 Right in this way, in the absence of a state, you had 1113 00:54:59,400 --> 00:55:02,000 private property protected. Now, obviously, we want to live 1114 00:55:02,000 --> 00:55:04,600 a slightly more productive in advance a lifestyle than tribes 1115 00:55:04,600 --> 00:55:07,500 trading Ivory, for Booze with, you know, Roman Caravans of 1116 00:55:07,500 --> 00:55:11,800 Raiders, but conceptually we should be able to see that 1117 00:55:11,800 --> 00:55:14,600 private property protection. Is does not require a monopoly 1118 00:55:14,600 --> 00:55:17,800 on violence, right? Final questions. 1119 00:55:17,900 --> 00:55:18,900 Yeah. Oh, I'm sorry. 1120 00:55:19,000 --> 00:55:22,600 Yeah, even in the case of massive disparities in force 1121 00:55:22,600 --> 00:55:26,700 capability between one side and another right, you Still see an 1122 00:55:26,700 --> 00:55:30,600 agreement in which one side has the ability to alter transfer 1123 00:55:30,600 --> 00:55:33,900 destroys property and other side does not and somebody could say, 1124 00:55:33,900 --> 00:55:36,900 well, we're in those Raiders be the state, then, no, because 1125 00:55:36,900 --> 00:55:39,600 there's multiple raters or multiple Merchants their 1126 00:55:39,600 --> 00:55:42,400 merchants and Traders, depending on the time of day, right? 1127 00:55:42,400 --> 00:55:44,600 There's multiple groups of these people all trading with the 1128 00:55:44,600 --> 00:55:47,600 Dutch, all going around the same geographic area. 1129 00:55:47,800 --> 00:55:49,600 And then you might have the same tribe, you know, one Caravan 1130 00:55:49,600 --> 00:55:51,700 comes through, give them their booth and says, okay, I'll come 1131 00:55:51,700 --> 00:55:54,200 back, six months, your Ivory and then another Caravan Place, 1132 00:55:54,200 --> 00:55:55,900 another order. Right. 1133 00:55:57,000 --> 00:55:59,400 And then they say well what if Caravan a you know chooses. 1134 00:55:59,500 --> 00:56:01,200 Hey, you know, what if we pay you all this booze now and 1135 00:56:01,200 --> 00:56:03,500 another Caravan comes and Rob's ooh, and then the tribe says 1136 00:56:03,500 --> 00:56:04,400 well, that's kind of your problem. 1137 00:56:04,400 --> 00:56:05,600 Not ours, right? We got on it. 1138 00:56:05,600 --> 00:56:07,700 It'll be our problem. We get robbed, but we don't want 1139 00:56:07,700 --> 00:56:10,100 that to happen. So it's between the two of you 1140 00:56:10,200 --> 00:56:13,000 to agree not to Rob Us in the meantime, you know, we have some 1141 00:56:13,000 --> 00:56:15,000 Portuguese wine to finish drinking right now. 1142 00:56:16,100 --> 00:56:18,900 Final question, automation destroys jobs. 1143 00:56:18,900 --> 00:56:21,800 How do you respond? No automation does not destroy 1144 00:56:21,800 --> 00:56:24,500 jobs, automation creates jobs, but importantly, it does not 1145 00:56:24,500 --> 00:56:28,900 create jobs, you know, dealing with like so sometimes when 1146 00:56:28,900 --> 00:56:31,400 people say the automation destroys jobs, sort of 1147 00:56:31,400 --> 00:56:33,500 libertarian or pro-market responsibility. 1148 00:56:33,500 --> 00:56:34,900 No. Because then you'll be able to 1149 00:56:35,000 --> 00:56:38,300 you'll get a new job create like maintaining the robots or 1150 00:56:38,300 --> 00:56:41,600 something which is like a very rhetorically on compelling very 1151 00:56:41,600 --> 00:56:45,400 not good argument. Automation to the something 1152 00:56:45,400 --> 00:56:47,600 that's producer Market reasons why if automation is reduced 1153 00:56:47,600 --> 00:56:51,200 because it is profitable, right in the point is to lower costs 1154 00:56:51,200 --> 00:56:56,000 or increase productivity for all of the firm's that use that 1155 00:56:56,000 --> 00:56:57,900 process as an input. So if you automate the 1156 00:56:57,908 --> 00:57:01,500 production of Steel, this presumably makes steel cheaper 1157 00:57:01,600 --> 00:57:03,000 and therefore, makes cars cheaper. 1158 00:57:03,000 --> 00:57:06,400 So on and increases the number of cars that you can be produced 1159 00:57:06,500 --> 00:57:10,100 in that case, anybody who who has been put out of work by 1160 00:57:10,100 --> 00:57:12,600 automation should just go to his boss and say boss. 1161 00:57:12,700 --> 00:57:14,500 It's tell me the names of everybody. 1162 00:57:14,500 --> 00:57:17,400 This firm sells to, right? You automated me out of a job. 1163 00:57:17,500 --> 00:57:20,800 So, tell me every firm that you guys have contracts with and 1164 00:57:20,800 --> 00:57:24,000 then just go door to door and say, Hey, listen, I'll let you 1165 00:57:24,000 --> 00:57:27,200 know, the price of the price of what we produce are gonna get 1166 00:57:27,200 --> 00:57:28,200 cheaper. You're gonna have a lot of extra 1167 00:57:28,200 --> 00:57:30,600 money on your hands and your real to expand your factory. 1168 00:57:30,700 --> 00:57:33,100 When that factor expansion comes, I want you to know that 1169 00:57:33,100 --> 00:57:35,400 I'd like a job. Obviously, negotiations will not 1170 00:57:35,400 --> 00:57:39,000 happen in such a direct fashion. But this is the way we should 1171 00:57:39,000 --> 00:57:40,800 visualize the economics of automation. 1172 00:57:41,000 --> 00:57:43,600 You should be going directly. On stream. 1173 00:57:43,700 --> 00:57:45,700 I would have a production process is being described. 1174 00:57:46,100 --> 00:57:49,400 And this is why, you know, people are most afraid of 1175 00:57:49,400 --> 00:57:52,000 automation of trucks, but I'm like no automation of trucks is 1176 00:57:52,000 --> 00:57:54,300 probably going to be the best thing that ever happens. 1177 00:57:54,400 --> 00:57:56,700 And you know, some some economic profit is going to be listening 1178 00:57:56,700 --> 00:57:59,400 like seething, rightly know, think about the tens of millions 1179 00:57:59,400 --> 00:58:01,800 of truckers who put out of work, you know, when these trucks are 1180 00:58:01,800 --> 00:58:03,500 automated. Yeah, but think about literally 1181 00:58:03,500 --> 00:58:07,400 every business in the world or in the country who faces a 1182 00:58:07,400 --> 00:58:09,300 significant amount of production costs. 1183 00:58:09,600 --> 00:58:11,700 Just waiting for trucks to come through and paying for 1184 00:58:11,700 --> 00:58:12,800 deliveries. Right. 1185 00:58:12,800 --> 00:58:15,600 Think about all the people. They be able to hire if they're 1186 00:58:15,600 --> 00:58:18,400 not dedicating such and such amount towards paying, you know 1187 00:58:18,400 --> 00:58:20,900 trucker wages. They're not directly paying 1188 00:58:20,900 --> 00:58:22,300 trucker wages. They pay trucking company, 1189 00:58:22,300 --> 00:58:24,800 right? But you know, the you should be 1190 00:58:24,800 --> 00:58:27,400 seeking out stable employment with those firms. 1191 00:58:27,400 --> 00:58:31,100 And in this case, we're talking about almost every firm in the 1192 00:58:31,100 --> 00:58:34,500 country one way or another as you're constantly reminded every 1193 00:58:34,500 --> 00:58:38,900 firm in the country is partially reliant on Goods delivered by 1194 00:58:38,900 --> 00:58:44,200 trucks, so I want to Thank everyone for watching the 1195 00:58:44,200 --> 00:58:46,900 libertarian Institute and keep my don't tread on anyone. 1196 00:58:47,000 --> 00:58:49,300 Mr. Groucho. Thank you so much for your time. 1197 00:58:49,300 --> 00:58:51,100 And your excellent answers. Yep. 1198 00:58:51,100 --> 00:58:52,100 Happy to be here. Thanks for having me.