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If schools can educate students 
in exchange for their tuition. 

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Why can't businesses educate 
students in exchange for their 

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labor? 
No reason. 

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Just anti-market bigotry. 
Welcome to Keith's night, don't 

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tread on anyone. 
And the libertarian Institute 

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that is a quote from today's 
book. 

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It is titled labor, econ, versus
the world. 

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You will have an image of it on 
my screen. 

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I know it's a little blurry at 
this moment, but the author is 

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dr. 
Bryan Caplan of George Mason 

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University, Dr. Kaplan. 
Where is the best place? 

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Place to purchase this excellent
book. 

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Amazon.com is the best at Holy 
place. 

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Links will be in the description
below, Dr. Kaplan, what is 

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Labour econ? 
And why is it important? 

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Labor economics is just the 
application of Economics to the 

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world of Labor, so jobs, 
obviously, but also everything 

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that people do to get ready for 
their jobs, education job, 

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training, everything that 
impinges on labor economics, 

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actually winds up getting 
counted there. 

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So economics the family. 
Well, non-marital births 

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divorce. 
All of this plays into whether 

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or not people want to get a job.
So all that winds up coming out 

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of the heading of labor 
economics, as well for this. 

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We have The great Economist Gary
Becker to thank he's the one who

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took a formerly narrowly defined
field and turned it into this 

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vast expanse that we now have. 
One of the if I had to summarize

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the general objection to this 
book, it might go something like

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this workers have less 
bargaining power than employers.

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Thus, the first rule of labor, 
economics is to recognize the 

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necessity of worker, safety 
regulations, mandatory benefits,

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and minimum payments for hourly 
work, what's wrong with that 

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worldview? 
If anything first thing to 

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remember is, well, what does it 
even mean to say that someone 

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has less bargaining power when 
you're really thinking about it?

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Was a different from they're 
just not being much demand for 

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your services. 
You say well Tom Cruise is tons 

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of bargaining power well because
people really want Tom Cruise, 

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janitor doesn't have very much. 
Yeah. 

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Because the janitor seems very 
replaceable when you put it that

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way then you realize, mmm how 
exactly is this regulation 

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supposed to help someone? 
Just because there's not a lot 

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of demand for my services. 
How does this help me? 

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When there's a bunch of laws 
saying, I have to be treated. 

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Well, when people always have 
the option of saying I don't 

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need to trade with you at all. 
All, actually, this is really 

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the fundamental issue of Labor 
regulation people. 

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See someone not doing as well as
they want. 

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They think we just passed a law,
then we can solve the problem, 

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but there's always the option of
just saying, I don't need that 

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person. 
I can do without that person, 

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and what we see in the real 
world is totally standard. 

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This is not an ideological 
Point. 

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Everybody in real life thinks 
about the cost of Labor when 

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they consider hiring everybody 
hires somebody at some point if 

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only to go and give them a I'd 
or motor grass or whatever like 

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to come and fix the plumbing and
the idea that there's something 

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ideological or philosophical 
about the view, that the amount 

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that people want, depends upon 
how much labor is charging, it's

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just crazy. 
It's absolute Common Sense its 

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ideology to say otherwise When 
it comes to regulation is the is

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government intervention. 
The only method of sort of 

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regulating and making sure 
consumers and workers or are 

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treated will, or is there any 
method in the free market that 

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people can use to sort of 
achieve this end of getting 

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well-treated workers and 
reliable products and services. 

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But the ultimate check upon all 
Behavior markets is if you don't

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like it, don't shop there or 
don't sell your labor there. 

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This Is the main thing that 
workers have going for them in a

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free market. 
Is I don't have to work here. 

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Now, this does not mean that it 
is well advice for worker to 

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scope to the boss with a list of
Demands and say, do all this or 

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else I quit. 
Boss is likely to say, yeah, 

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well, I guess we could do 
without you rather, it's 

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realizing that. 
If you're not satisfied, then 

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you should look around for 
something better. 

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You will find something sooner 
or later. 

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And that's the time when 
suddenly, you can say, hey, 

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look, but maybe I'll just go to 
this new thing that I like 

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better. 
Or maybe I'll tell my boss. 

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I found something else if you 
want to keep me great. 

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So yeah that is the main thing 
of course. 

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This also just shopping around 
before you take a job for 

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professors. 
This is a very big deal because 

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normally for Professor, take a 
job, they need to move to a 

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totally new area and once they 
start working that job, it's 

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actually an enormous burden to 
try to find any other kind of 

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employment. 
If we look at the lies were 

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vesser's, they're actually 
really sweet pressors. 

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Have ridiculously good deal. 
What's Going on, what's going 

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on, is that before someone moves
out to North Dakota, it is 

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totally standard for them to go 
and talk to people already there

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and ask. 
How do you get treated here? 

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And if the answer is poorly then
you just don't move in the first

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place, which is, by the way, the
same story behind the actual 

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economic history of company 
towns. 

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People think of company towns 
is, you're just randomly dropped

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in the middle of nowhere, and 
then you have no other easy 

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options. 
But the thing is, is to get 

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someone to moved your company 
Town. 

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You've got to make them think 
that it's a good deal. 

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And the main way company towns, 
historically made people think 

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something's a good deal was by 
making it a good deal. 

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When it comes to the example of 
sweatshops, this is where 

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regulatory Advocates sort of 
have their best example of big 

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company, very powerful. 
Nike Apple something in this 

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area versus people with very 
little bargaining power. 

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Making very small amounts of 
money. 

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What's wrong with government 
sort of stepping in and saying, 

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hey, you don't get to walk all 
over these people. 

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They need to be treated with 
dignity. 

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You're making enough money. 
You're still going to sell 

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shoes. 
You're still going to make tons 

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of profit, but you have to meet 
these minimum standards. 

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Anything wrong with that? 
Yeah, tugs wrong with it. 

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I mean, here's the main thing to
keep in mind just because 

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someone has very low demand for 
the services doesn't mean that 

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their customers can't drop them 
and say we can do without you. 

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In fact, if anything you'd think
that I said that's exactly when 

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businesses would be most likely 
to say you're not really that 

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valuable anyway, I guess we 
could figure out some other way 

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of doing. 
Doing this. 

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So the very fact that you have a
big Corporation dealing with 

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low. 
Skilled workers does not mean 

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that regulation can put improve 
their conditions without 

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changing the willingness of 
business to hire this is 

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critical. 
Now, in terms of understanding 

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the actual facts on the ground, 
the main thing to know about 

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so-called sweatshops is that 
normally, they pay a lot better 

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than native competitors. 
They not only offer a better 

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deal partly is because they are 
trying to go and find that our 

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workers and on top of that, 
they're also giving better. 

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Job training, then local firms 
usually are they're going and 

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introducing you to what is The 
Cutting Edge in the global 

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Marketplace? 
So they aren't just going and 

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giving better compensation. 
They really are investing in 

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human capital of the workers. 
Put your greatest misconception 

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that people have about life in 
third world. 

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Countries for workers, is the 
think that most verbal workers 

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are employed by big 
multinational corporations? 

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Nothing could be further from 
the truth formal employment. 

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In poor countries is in very 
rare, it's almost always way 

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below the level you would have 
in countries. 

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Like the u.s. it is normal. 
Actually, in the poorest 

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countries for most people to be 
self-employed to have no formal 

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employment of any kind. 
And if you're wondering, well, 

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what is that? 
Like if you ever been interested

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in poor country and someone 
comes up to you and tries to 

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sell hats to you on the beach. 
That's what life is like for 

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most workers in the poorest 
countries. 

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Just sort of desperately trying 
to eke out an existence running 

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their own business, but not 
really knowing what to do most 

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people. 
You're not cut out to run their 

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own business. 
And in poor countries, we do see

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the sad spectacle of people who 
really don't know what's going 

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on trying to run a business and 
generally doing quite poorly at 

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it in those countries formal 
jobs of any kind of Highly 

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prized but formal jobs with the 
multinationals are almost always

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the very best jobs in those 
countries. 

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The regulation is a way of 
encouraging firms to not go 

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there in the first place or to 
close up, right? 

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Meaning you do that and you'll 
yeah. 

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In like main thing to realize is
still channels that would do 

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almost all of their business, 
almost their own employment in 

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rich countries, not poor ones. 
If you ever tried running a cup 

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business in a poor country, if 
you ever thought about how hard 

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it would be, it's hard because 
things are just so screwed up 

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their actual multinationals 
usually prefer to work in rich 

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countries. 
If there weren't much lower 

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wages in poor countries there be
almost nothing to recommend 

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doing it there. 
So even if I see business as 

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this evil profit-seeking 
predatory dog-eat-dog mechanism,

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I should still support it 
because it even helps the people

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who I'm claiming to speak on 
behalf of even though I've never

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met any of them and see that 
they obviously choose the job. 

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So you're saying they're still a
reason to support to oppose 

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regulation if you support the 
poorest workers on the planet. 

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Yeah, if you're really worried 
about the poorest workers in the

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plan, Is me trying to figure out
how to get a lot more 

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multinationals to open up in 
poor countries, you should be 

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00:09:21,008 --> 00:09:24,600
looking for ways to get their 
careers and really you should be

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looking for governments that put
multinationals at ease and say, 

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we love you guys, we want as 
many of you here as possible. 

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Normally you get in the real 
world you have domestic 

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businesses that are trying to 
keep multinationals out so that 

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they can continue running the 
businesses. 

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Well below the normal level 
efficiency and also as a result 

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00:09:43,300 --> 00:09:45,600
paying their workers quite a bit
less than they would be getting.

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Ting if they could work for 
multinationals. 

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So yeah, I mean, you know, the 
main thing you have in mind is 

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that the way that you make life,
better for people say, giving 

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them more options, not less. 
When you regulate multinationals

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or keep them out, you were just 
taking options off the table and

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it turns out if you really go 
and compare with the options, 

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00:10:02,700 --> 00:10:05,000
are these are the best options 
multinationals are the best 

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00:10:05,000 --> 00:10:08,000
companies to work for the best 
places to be employed in the 

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00:10:08,000 --> 00:10:12,200
poorest countries. 
So yes, you really should be 

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00:10:12,700 --> 00:10:15,600
feeling like this is the best 
that's available. 

199
00:10:15,800 --> 00:10:19,800
It really is. 
What is the hedonic treadmill 

200
00:10:20,000 --> 00:10:22,400
and how does it apply to labor 
economics? 

201
00:10:23,400 --> 00:10:27,000
Great question. 
And donut treadmill is. 

202
00:10:27,100 --> 00:10:32,300
Basic fact about human happiness
that for most parts of your 

203
00:10:32,300 --> 00:10:36,300
life. 
At first, they if they improve 

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00:10:36,400 --> 00:10:38,800
first, you feel happy, but then 
you start to take it for granted

205
00:10:38,800 --> 00:10:40,400
and eventually it's like it 
never happened. 

206
00:10:40,400 --> 00:10:42,900
Same thing for many bad things 
that happen to you at first, 

207
00:10:42,900 --> 00:10:44,700
your say, oh this is my toe, so 
terrible. 

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00:10:44,700 --> 00:10:47,400
My life is over, and you get 
used to it and stops bothering 

209
00:10:47,400 --> 00:10:49,900
you. 
I often talk to people about 

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00:10:49,900 --> 00:10:51,600
getting a granite, countertop 
people. 

211
00:10:51,600 --> 00:10:55,100
Sell is so great, so lovely. 
But after a month, do you really

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00:10:55,100 --> 00:10:57,200
sit there stroking? 
The granite and saying, I love 

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00:10:57,200 --> 00:11:01,500
you, Granite such, great Granite
- thing goes for most luxury 

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00:11:01,500 --> 00:11:05,800
products and so on. 
Now, many people look at this 

215
00:11:05,800 --> 00:11:08,800
and say, is this really a very 
anti economics point is, it 

216
00:11:08,800 --> 00:11:12,700
comes down to happiness, is not 
nearly as dependent upon 

217
00:11:12,700 --> 00:11:16,600
material well-being, as most 
people believe, looks like we 

218
00:11:16,600 --> 00:11:20,800
yeah, it's a little bit more 
complicated because you don't 

219
00:11:20,800 --> 00:11:24,600
get impatient, varies a lot with
the exact kind of good. 

220
00:11:25,500 --> 00:11:28,500
There are some kinds of goods 
they can like Granite, where you

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00:11:28,500 --> 00:11:31,900
don't got, a tation is very 
quick, and very reliable. 

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00:11:32,100 --> 00:11:37,500
There's others where not so much
anyway why this is relevant for 

223
00:11:37,500 --> 00:11:41,900
labor economics there, a lot of 
people argue for regulations 

224
00:11:41,900 --> 00:11:43,800
saying look all right. 
Fine is true. 

225
00:11:43,800 --> 00:11:46,900
The labor market regulation does
cause some unemployment. 

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00:11:47,000 --> 00:11:52,200
That's unfortunate but it does 
raise the compensation for all 

227
00:11:52,200 --> 00:11:55,900
the people to keep their jobs. 
So as long Is it that too and 

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00:11:55,900 --> 00:11:57,900
even losing their jobs? 
All the other people getting 

229
00:11:57,900 --> 00:12:01,000
them, that's good for them. 
And on the, in the end, it winds

230
00:12:01,000 --> 00:12:06,200
up being worthwhile and my 
response to that is no, because 

231
00:12:06,800 --> 00:12:09,300
the thing that people are likely
to get used to pretty quickly 

232
00:12:09,300 --> 00:12:12,100
are the extra luxuries. 
The other thing, what is hard 

233
00:12:12,100 --> 00:12:14,500
for people to get used to 
something that people do not 

234
00:12:14,500 --> 00:12:15,400
hedonic? 
We adapt to. 

235
00:12:15,400 --> 00:12:18,200
Well, at all is idleness 
unemployment. 

236
00:12:18,400 --> 00:12:21,700
A lot of work saying that the 
sheer fact of being employed 

237
00:12:21,700 --> 00:12:23,900
causes an enormous harm, human 
happiness. 

238
00:12:24,400 --> 00:12:28,900
Even if you Make up all the loss
and earnings with unemployment. 

239
00:12:28,900 --> 00:12:32,300
Still you will see that people 
are unemployed feel unhappy on 

240
00:12:32,300 --> 00:12:35,500
average because they just feel 
useless, their lives are 

241
00:12:35,508 --> 00:12:37,400
meaningless. 
They are part of anything. 

242
00:12:37,600 --> 00:12:39,900
One of the parts of human 
happiness. 

243
00:12:39,900 --> 00:12:44,500
The people adjust to the least 
is the social world, right? 

244
00:12:44,500 --> 00:12:48,500
Do you have a people around you 
that you like being with when 

245
00:12:48,500 --> 00:12:51,100
people unemployed it's very 
isolating, these feel like 

246
00:12:51,100 --> 00:12:54,200
there's no one around you know 
companionship no nothing that 

247
00:12:54,200 --> 00:12:59,000
you're part of So what I say in 
the book is that actually, if 

248
00:12:59,000 --> 00:13:03,400
you are going to have a wiser 
view about human wellbeing, this

249
00:13:03,400 --> 00:13:06,400
is does not mean that stricter 
labor market. 

250
00:13:06,400 --> 00:13:08,000
Regulation is a good idea. 
Yeah. 

251
00:13:08,800 --> 00:13:11,900
It does raise wages for the 
lucky ones with jobs but the 

252
00:13:11,900 --> 00:13:15,200
important thing to remember is 
those changes in earnings are 

253
00:13:15,200 --> 00:13:17,600
pretty ephemeral, but on the 
other hand, the harm of 

254
00:13:17,600 --> 00:13:20,400
unemployment is very durable. 
People who feel miserable being 

255
00:13:20,400 --> 00:13:23,400
employed for many years. 
Whereas most luxury products you

256
00:13:23,400 --> 00:13:25,100
really do, get use them pretty 
quickly. 

257
00:13:25,200 --> 00:13:29,900
Lee. 
What is labor elasticity and why

258
00:13:29,900 --> 00:13:33,100
does it matter Lee well? 
So I think you mean love labor, 

259
00:13:33,100 --> 00:13:35,300
demand, elasticity, and labor 
demand. 

260
00:13:35,300 --> 00:13:39,000
Elasticity is one of the most 
important technical Concepts 

261
00:13:39,000 --> 00:13:41,100
that bores almost everyone to 
tears. 

262
00:13:41,500 --> 00:13:47,300
It comes down to this. 
The act of Labor demand at a 

263
00:13:47,300 --> 00:13:52,500
point, is the percentage change 
in the quantity of Labor that we

264
00:13:52,500 --> 00:13:55,700
employed divided by the 
percentage change in? 

265
00:13:56,600 --> 00:14:00,800
Which all right. 
So if there is a very large 

266
00:14:00,800 --> 00:14:04,300
change in the wage when there 
are issues very large change in 

267
00:14:04,300 --> 00:14:06,000
the amount that employers want 
to hire. 

268
00:14:06,000 --> 00:14:08,000
When this when there's a small 
change in the wage that you have

269
00:14:08,400 --> 00:14:12,600
very highly elastic, labor 
demand elasticity, right? 

270
00:14:12,600 --> 00:14:16,400
And this is a circumstance where
if you were graphing, this would

271
00:14:16,400 --> 00:14:19,400
roughly mean like depends upon 
the scale but roughly mean that 

272
00:14:19,400 --> 00:14:23,400
you've got very flat labor 
demand in this scenario, you 

273
00:14:23,400 --> 00:14:25,700
need to be very concerned that 
almost any regulation. 

274
00:14:25,800 --> 00:14:29,300
Any activity could cause mass 
unemployment on the other hand, 

275
00:14:29,300 --> 00:14:33,200
you can also have a low liberal 
and elasticity which means that 

276
00:14:33,200 --> 00:14:35,900
when you raise wages a lot them 
only be a very small change in 

277
00:14:35,900 --> 00:14:40,100
the quantity of Labor that 
people consume should say. 

278
00:14:40,100 --> 00:14:41,900
It's percentage of this all 
percentage terms. 

279
00:14:41,900 --> 00:14:44,300
So percentage change in the 
quantity divided by percentage 

280
00:14:44,300 --> 00:14:48,500
change in the price. 
Now again if this seems very 

281
00:14:48,500 --> 00:14:51,400
technical and I can imagine 
almost everyone, hearing it is 

282
00:14:51,400 --> 00:14:53,900
not going and taking out some 
paper and writing and writing 

283
00:14:53,900 --> 00:14:58,500
things down right now. 
And as I said, in one of the 

284
00:14:58,500 --> 00:15:01,800
pieces that I wrote, I just went
and searched all Twitter. 

285
00:15:01,800 --> 00:15:05,400
And there were like 100 uses per
year on the entirety of Twitter.

286
00:15:05,800 --> 00:15:10,400
And yet, this is the variable 
that you really need to take a 

287
00:15:10,408 --> 00:15:14,200
strong stand on. 
If you are specially supportive 

288
00:15:14,200 --> 00:15:17,100
labor market regulation, you 
need to be very convinced that 

289
00:15:17,100 --> 00:15:20,500
this number is that this number 
is actually small, but you need 

290
00:15:20,500 --> 00:15:22,700
to believe. 
This is a small number that you 

291
00:15:22,700 --> 00:15:24,700
could raise wages a while, you 
would have a large percentage 

292
00:15:24,700 --> 00:15:26,800
change in the wages. 
I would not lead to any 

293
00:15:26,800 --> 00:15:29,100
noticeable percentage, change in
the amount of Labor. 

294
00:15:29,100 --> 00:15:32,600
The people want item and again, 
if you're like well you're still

295
00:15:32,600 --> 00:15:34,600
falling asleep. 
So look, you can't fall asleep. 

296
00:15:34,600 --> 00:15:36,900
If you think regulations, good 
idea, you got to have a very 

297
00:15:36,900 --> 00:15:39,500
specific belief about this or 
else what you're doing is 

298
00:15:39,500 --> 00:15:41,700
clearly harmful, even from your 
own point of view. 

299
00:15:42,200 --> 00:15:45,700
I do have a piece where I 
tracked down estimates of what 

300
00:15:45,700 --> 00:15:49,600
this is, right? 
And a pretty standard estimate 

301
00:15:49,600 --> 00:15:53,700
is something like negative .25, 
which basically says that if you

302
00:15:53,700 --> 00:15:58,900
can push wages up by 4%, Is 
reduce the quantity of Labor 

303
00:15:58,900 --> 00:16:01,800
that people want to hire by 
about 1%, alright? 

304
00:16:01,800 --> 00:16:05,000
And you're like, hmm. 
All right, is that I lat? 

305
00:16:05,400 --> 00:16:09,400
Well, it basically means that if
you've got say unemployment at 

306
00:16:09,400 --> 00:16:12,400
7% the you could get rid of it 
if wages would just fall by 12 

307
00:16:12,400 --> 00:16:16,100
percent, right? 
And if you remember that three 

308
00:16:16,100 --> 00:16:17,700
percentage points of 
unemployment is really 

309
00:16:17,700 --> 00:16:19,800
difference, between it being 
super hard to get a job and 

310
00:16:19,800 --> 00:16:23,600
super easy. 
So it's kind of thing where when

311
00:16:23,600 --> 00:16:26,900
you appreciate it's like wow. 
All right, it's not that huge of

312
00:16:26,900 --> 00:16:31,000
a deal to have a world of Full 
Employment right now. 

313
00:16:31,000 --> 00:16:34,000
Of course we have such low 
levels of employment doesn't 

314
00:16:34,000 --> 00:16:37,100
seem relevant but you know, 
sooner or later and yeah, 

315
00:16:37,200 --> 00:16:40,400
probably not only my guess is 
after the election unemployment 

316
00:16:40,400 --> 00:16:46,600
is going to be going way up. 
When it comes to discrimination,

317
00:16:46,600 --> 00:16:50,100
you had an observation regarding
illegal immigrants. 

318
00:16:50,600 --> 00:16:54,600
What is what is important for us
to understand about 

319
00:16:54,600 --> 00:16:56,600
discrimination? 
If we look at the case of 

320
00:16:56,600 --> 00:16:58,700
illegal immigrants. 
Yeah. 

321
00:16:58,700 --> 00:17:00,900
Great question. 
All right. 

322
00:17:01,200 --> 00:17:04,500
If you just think about all of 
the groups of workers in 

323
00:17:04,500 --> 00:17:07,099
American society that people 
feel comfortable complaining 

324
00:17:07,099 --> 00:17:11,300
about, so comfortable that you 
would just loudly talk about it 

325
00:17:11,300 --> 00:17:13,900
standing in line at the grocery 
store without looking over your 

326
00:17:13,900 --> 00:17:15,300
shoulder to make sure you're not
offending. 

327
00:17:15,300 --> 00:17:18,300
Somebody like almost no one is 
going to go and start 

328
00:17:18,300 --> 00:17:22,300
complaining about Chinese 
workers or black workers or gay 

329
00:17:22,300 --> 00:17:25,000
workers. 
And yet, people will at the 

330
00:17:25,000 --> 00:17:30,300
grocery store audibly go and say
these goddamn illegal immigrants

331
00:17:30,900 --> 00:17:32,700
right now, what do we learn from
this? 

332
00:17:32,900 --> 00:17:36,300
What we learn that there is a 
quite high level of negativity 

333
00:17:36,300 --> 00:17:39,300
towards illegal immigrants. 
A lot of People do not feel good

334
00:17:39,300 --> 00:17:42,300
about them. 
They are unhappy with them on a 

335
00:17:42,400 --> 00:17:47,600
pretty deep level and yet and 
yet, if you were to go and tell 

336
00:17:47,600 --> 00:17:50,100
people well given how much 
people dislike illegal 

337
00:17:50,100 --> 00:17:53,000
immigrants, we don't really need
government to do anything about 

338
00:17:53,000 --> 00:17:56,800
this because obviously employers
are human beings, they won't 

339
00:17:56,800 --> 00:17:59,200
like illegal immigrants either 
and therefore they won't hire 

340
00:17:59,200 --> 00:18:01,400
them. 
If you imagine making this 

341
00:18:01,400 --> 00:18:04,600
argument in the derision that 
you would receive, You'll Think,

342
00:18:05,200 --> 00:18:07,000
of course, employers will go and
hire them. 

343
00:18:07,100 --> 00:18:08,200
They're out of there. 
Just trying to make money. 

344
00:18:08,300 --> 00:18:11,000
Money. 
I actually agree with that. 

345
00:18:11,000 --> 00:18:13,100
They say, hmm. 
Well, if that's what you think, 

346
00:18:13,100 --> 00:18:15,500
if you think that even a group 
of people that is, widely 

347
00:18:15,500 --> 00:18:19,800
despised will still have very 
little trouble getting jobs 

348
00:18:19,800 --> 00:18:23,300
because employers are after 
money, then what is this a about

349
00:18:23,300 --> 00:18:25,900
all of the other kinds of 
discrimination that people worry

350
00:18:25,900 --> 00:18:27,800
about? 
What does this say about the 

351
00:18:27,800 --> 00:18:31,300
actual necessity for having any 
discrimination laws? 

352
00:18:31,800 --> 00:18:34,600
They say it gives us a pretty 
clear answer which is that 

353
00:18:34,600 --> 00:18:40,300
discrimination laws are actually
at most use Best useless because

354
00:18:40,300 --> 00:18:42,700
they are stopping people from 
doing something that they don't 

355
00:18:42,700 --> 00:18:46,500
really want to do which is to go
and hire less qualified people 

356
00:18:46,500 --> 00:18:48,400
when they could hire more 
qualified person. 

357
00:18:48,400 --> 00:18:51,600
If you most employers, it's not 
that they sit around saying God,

358
00:18:51,600 --> 00:18:54,400
I love illegal immigrants, those
soul of the earth, it's more 

359
00:18:54,400 --> 00:18:56,900
like I can get a better worker 
for a lower wage if I go and 

360
00:18:56,900 --> 00:19:00,700
hire illegal immigrants, so 
though it kind of bothers me, 

361
00:19:00,700 --> 00:19:04,100
leaves a bad taste in my mouth. 
I'll do it anyway and we should 

362
00:19:04,100 --> 00:19:07,600
expect that people would have a 
very similar attitude for any 

363
00:19:07,600 --> 00:19:09,200
other. 
Of the people think is being 

364
00:19:09,200 --> 00:19:12,500
discriminated against except of 
course milder because illegal 

365
00:19:12,500 --> 00:19:16,700
immigrants being probably the 
most despised group are getting 

366
00:19:16,700 --> 00:19:19,200
the. 
We're getting the worst evil eye

367
00:19:19,600 --> 00:19:22,200
and yet even that is not enough 
to prevent them from getting 

368
00:19:22,200 --> 00:19:25,600
work. 
And on top of the evil eye, I 

369
00:19:25,608 --> 00:19:29,300
think there has to be 
legislation in Arizona because 

370
00:19:29,300 --> 00:19:33,500
on the front of so many 
businesses, you'll see we 

371
00:19:33,500 --> 00:19:38,000
enforce this standard know it, 
we don't hire illegals because 

372
00:19:38,000 --> 00:19:42,200
this law says if we you know 
hire them, it's what we get 

373
00:19:42,200 --> 00:19:45,700
furniture instead of it has been
a Federal Regulation since I 

374
00:19:45,700 --> 00:19:50,100
believe 1986 that said that 
actually imposes fines on 

375
00:19:50,100 --> 00:19:52,100
employers for hiring illegal 
workers. 

376
00:19:52,100 --> 00:19:55,900
And then there may be Additional
state level sanctions as well. 

377
00:19:56,400 --> 00:19:59,800
Yeah, this goes back to basic 
idea of the economic 

378
00:19:59,800 --> 00:20:01,700
discrimination, which is, if you
really want to have 

379
00:20:01,700 --> 00:20:03,900
discrimination, has to be 
government required. 

380
00:20:04,700 --> 00:20:06,800
It's not enough for government 
to say you can discriminate, if 

381
00:20:06,800 --> 00:20:09,400
you feel like it, if you want 
discrimination, your government 

382
00:20:09,400 --> 00:20:11,900
to say, You must discriminate 
whether you like it or not. 

383
00:20:12,200 --> 00:20:14,600
That's obviously what's going on
with illegal immigrants? 

384
00:20:14,600 --> 00:20:16,700
Where the government says you 
better? 

385
00:20:17,000 --> 00:20:19,300
You better or you be harshly, 
punished, you better put up 

386
00:20:19,300 --> 00:20:21,200
these signs. 
There's going to be finds that 

387
00:20:21,200 --> 00:20:25,200
could be jail time. 
We're Watching you big brother 

388
00:20:25,200 --> 00:20:28,200
is watching you. 
But again, if you think that 

389
00:20:28,400 --> 00:20:30,200
that's the kind of thing 
necessary to ensure 

390
00:20:30,200 --> 00:20:32,500
discrimination against illegal 
immigrants, then you'd think 

391
00:20:32,500 --> 00:20:35,300
something similar, it would be 
necessary to get discrimination 

392
00:20:35,300 --> 00:20:39,700
against women or blacks or gays 
in my own view, is the real 

393
00:20:39,700 --> 00:20:42,300
world. 
Right now is one where there is 

394
00:20:42,300 --> 00:20:46,000
government enforced 
discrimination in favor of black

395
00:20:46,000 --> 00:20:49,200
slacks women and gays. 
I'd such the that employers are 

396
00:20:49,200 --> 00:20:52,100
in fact, nervous, if I hire 
people solely on their merits, 

397
00:20:52,100 --> 00:20:55,000
I'll get in trouble because 
People will say that, my work 

398
00:20:55,000 --> 00:20:56,400
face. 
Remember, force is not 

399
00:20:56,400 --> 00:20:59,300
sufficiently diverse and get mad
at me, and, of course, not just 

400
00:20:59,300 --> 00:21:02,300
mad. 
The law will come down upon you.

401
00:21:03,700 --> 00:21:09,400
There was an interesting moment 
in the debate between Jimmy 

402
00:21:09,400 --> 00:21:11,900
Carter, and Ronald, Reagan in 
1980. 

403
00:21:11,900 --> 00:21:16,300
Where Carter says, what we need 
to do is start enforcing the 

404
00:21:16,300 --> 00:21:21,000
Equal Pay Act because at this 
time women get about 65 cents on

405
00:21:21,000 --> 00:21:24,300
the dollar for every dollar that
a man makes and then like the 

406
00:21:24,300 --> 00:21:28,600
next day, I heard, Amy Schumer, 
I've at the Oscar saying, they 

407
00:21:28,600 --> 00:21:31,900
hired three women to host 
because it's still cheaper than 

408
00:21:31,900 --> 00:21:35,500
one man. 
Now, Lies the average person 

409
00:21:35,500 --> 00:21:37,800
actually believes that this is 
true. 

410
00:21:38,000 --> 00:21:41,100
That literally a man and a woman
work, the same job, create the 

411
00:21:41,100 --> 00:21:44,200
same value, same effort and they
pay the man a dollar in the 

412
00:21:44,200 --> 00:21:46,700
woman gets between 60 and 80 
cents. 

413
00:21:47,000 --> 00:21:50,800
For every dollar, first of all, 
what is the intellectual 

414
00:21:50,800 --> 00:21:52,600
response to that? 
Is that true or false? 

415
00:21:52,600 --> 00:21:57,800
Second how is this scam been 
pulled off for decades, right? 

416
00:21:57,900 --> 00:22:01,100
There's something really bizarre
about this because if this is 

417
00:22:01,100 --> 00:22:04,800
true, then every employer in the
country entry should be able to 

418
00:22:04,800 --> 00:22:07,100
make an enormous profit by 
firing all their mails, 

419
00:22:07,100 --> 00:22:10,400
replacing them with equally 
qualified women for lower, pay, 

420
00:22:10,600 --> 00:22:13,500
and pocketing the difference 
right now. 

421
00:22:13,700 --> 00:22:16,200
I suppose that's logically 
possible that could occur, but 

422
00:22:16,200 --> 00:22:19,100
it is a pretty amazing 
get-rich-quick scheme that any 

423
00:22:19,100 --> 00:22:22,500
dummy could understand. 
This is not saying we have to go

424
00:22:22,500 --> 00:22:24,000
and take the logarithm of 
something. 

425
00:22:24,000 --> 00:22:26,600
And in order to go and make more
money, this is just saying a 

426
00:22:26,600 --> 00:22:29,400
fire all your men, replace them 
with women and you'll make tons 

427
00:22:29,400 --> 00:22:33,000
of extra money. 
Like that is what I will let the

428
00:22:33,000 --> 00:22:35,200
with us. 
Is really saying, in terms of 

429
00:22:35,200 --> 00:22:38,900
the data, what we actually see 
is that if you simply go and 

430
00:22:38,900 --> 00:22:44,000
compare single childless, men 
and women, with the same level 

431
00:22:44,000 --> 00:22:46,100
of skills, same same education 
level. 

432
00:22:46,100 --> 00:22:49,300
They look the same on paper that
the earnings of the two groups 

433
00:22:49,300 --> 00:22:52,800
is virtually the same and has 
been for a long time. 

434
00:22:53,400 --> 00:22:56,600
This is without even making a 
lot of other adjustments such as

435
00:22:57,100 --> 00:22:58,400
well. 
Women with college degrees are 

436
00:22:58,400 --> 00:23:00,500
really the same as men with 
college degrees because men are 

437
00:23:00,500 --> 00:23:03,000
a lot more likely to do stem, 
were you? 

438
00:23:03,400 --> 00:23:06,800
Unreal useful skills and women 
are a lot less likely to do stem

439
00:23:06,800 --> 00:23:10,300
and instead learn something that
you don't ever need to know for 

440
00:23:10,300 --> 00:23:14,100
any practical purpose in terms 
of how this scam has been going 

441
00:23:14,100 --> 00:23:17,100
on. 
Well there's the scam of paying 

442
00:23:17,100 --> 00:23:19,500
women weigh less than their 
worth and I'll say there's just 

443
00:23:19,508 --> 00:23:21,900
not much sign that scan has been
going on. 

444
00:23:21,900 --> 00:23:25,300
I get more looks more. 
Like what has happened is women 

445
00:23:25,300 --> 00:23:27,600
were really low paid when women 
really though, scaled and as 

446
00:23:27,600 --> 00:23:30,500
women have increased their 
skills, their pay has gone up if

447
00:23:30,500 --> 00:23:33,200
you think of the scam as making 
a lot of false accusations. 

448
00:23:33,400 --> 00:23:36,000
Nations against employers for 
discriminate against women when 

449
00:23:36,000 --> 00:23:40,200
they're not. 
Well that's can probably is 

450
00:23:40,200 --> 00:23:44,000
preserved by the level of 
intimidation in our culture. 

451
00:23:44,000 --> 00:23:47,500
Against someone that says, what 
I'm saying, people are afraid to

452
00:23:47,500 --> 00:23:50,100
say this kind of stuff for fear 
of having their heads, bitten 

453
00:23:50,100 --> 00:23:55,400
off, obviously by women 
themselves but also by male 

454
00:23:55,400 --> 00:23:58,900
feminists and sympathizers and 
not just on the left. 

455
00:23:58,900 --> 00:24:02,000
These are things that people say
when they want to go and win 

456
00:24:02,000 --> 00:24:04,800
votes from moderates, anyone 
with a mom? 

457
00:24:05,400 --> 00:24:07,600
Like they'll like doesn't like 
hearing this kind of thing. 

458
00:24:08,100 --> 00:24:10,800
Right. 
And yet the evidence is very 

459
00:24:10,800 --> 00:24:13,600
strongly. 
That it's true in an Ideal 

460
00:24:13,600 --> 00:24:14,600
World. 
We just wouldn't have to bring 

461
00:24:14,600 --> 00:24:17,100
it up everyone. 
We take it for granted and no 

462
00:24:17,100 --> 00:24:20,200
one would be mad about it. 
The problem is when people start

463
00:24:20,200 --> 00:24:23,800
flinging false accusations 
against the entire business 

464
00:24:23,800 --> 00:24:27,000
world, really, what can you do? 
Other than say, look, this 

465
00:24:27,000 --> 00:24:30,900
doesn't make me sound good, but 
I'm not mad about anything but 

466
00:24:31,100 --> 00:24:34,400
nevertheless, the story just 
does not check out. 

467
00:24:34,400 --> 00:24:37,600
It doesn't check out in terms of
Common Sense and it doesn't 

468
00:24:37,600 --> 00:24:43,000
check. in terms of the numbers, 
I've had this conversation with 

469
00:24:43,000 --> 00:24:46,700
one of my relatives and every 
time no matter what I say, it's 

470
00:24:46,700 --> 00:24:49,400
just an intellectual exercise 
for me at this point because 

471
00:24:49,400 --> 00:24:52,300
she's never coming over. 
But no matter what I say, she'll

472
00:24:52,300 --> 00:24:56,100
just be like, I was reading 
Walter blocks explanation in 

473
00:24:56,100 --> 00:24:58,400
1963. 
I think and defending the 

474
00:24:58,400 --> 00:24:59,400
undefendable. 
I go. 

475
00:24:59,600 --> 00:25:02,800
This is how far back the LIE 
goes and she'll just chill. 

476
00:25:02,800 --> 00:25:04,700
Just listen. 
And she won't interrupt me, she 

477
00:25:04,700 --> 00:25:09,200
goes, but how could they keep 
saying it if it wasn't true? 

478
00:25:09,200 --> 00:25:13,200
So, I I love your your 
explanation. 

479
00:25:13,800 --> 00:25:17,000
It just it seems like maybe I'm 
too sensitive. 

480
00:25:17,900 --> 00:25:21,100
There's a lot of self-censorship
to you know you'd actually get 

481
00:25:21,100 --> 00:25:24,400
yelled at very often people 
could actually be nice 90% of 

482
00:25:24,400 --> 00:25:27,500
the time and yet the one chance 
in 10 that a person is going to 

483
00:25:27,508 --> 00:25:30,300
bite your head off will leave 
lead very psychologically 

484
00:25:30,300 --> 00:25:32,900
normal. 
People not to say stuff it's 

485
00:25:32,900 --> 00:25:35,400
like, well I say what's true? 
And they don't mind. 

486
00:25:35,400 --> 00:25:37,600
I don't really get anything, but
I say what's true and they do 

487
00:25:37,600 --> 00:25:39,100
mine. 
Then I get my head bitten off, 

488
00:25:39,100 --> 00:25:40,600
so I'll just keep my mouth shut.
What? 

489
00:25:41,600 --> 00:25:44,400
Exactly? 
And it am I too? 

490
00:25:45,100 --> 00:25:47,300
Am I looking into it too much to
think that it's sort of 

491
00:25:47,700 --> 00:25:51,900
vilifying men? 
I don't mean to throw this 

492
00:25:51,900 --> 00:25:56,500
victim card, but if I were to 
say these, the thing about 

493
00:25:56,500 --> 00:26:01,200
Asians is they earn is white 
CERN, you know, 80 cents for 

494
00:26:01,200 --> 00:26:03,700
every dollar and Asian earns. 
If you look at the average 

495
00:26:03,700 --> 00:26:07,100
income and the average Jew earns
a dollar for everything. 

496
00:26:07,100 --> 00:26:13,000
So not a Western European Ernst.
I mean that is I would not want 

497
00:26:13,000 --> 00:26:15,900
anyone saying that about any 
group, isn't there a little 

498
00:26:15,900 --> 00:26:21,600
vilification there? 
Well what I would say is it's 

499
00:26:21,600 --> 00:26:27,300
mostly the tone yeah right look 
at this is this is just the way 

500
00:26:27,300 --> 00:26:30,100
that life works. 
You can say two sentences and 

501
00:26:30,100 --> 00:26:33,100
how you're using the same 
sentence, two different ways in 

502
00:26:33,100 --> 00:26:35,300
one way. 
No, normal person. 

503
00:26:35,300 --> 00:26:36,800
Wouldn't it would take anything 
amiss? 

504
00:26:36,800 --> 00:26:39,100
And another one people will be 
very upset. 

505
00:26:39,400 --> 00:26:42,500
It's electone, is it matters a 
great deal? 

506
00:26:43,300 --> 00:26:47,900
So if you know, someone says 
Jews are earning a dollar fifty 

507
00:26:47,900 --> 00:26:52,100
for every Our a gentile earns 
just in the were just in the 

508
00:26:52,100 --> 00:26:56,800
pronunciation of the word Jews. 
That's one where people will 

509
00:26:56,800 --> 00:26:59,600
flip out and someone's gonna get
mad and rightly. 

510
00:26:59,600 --> 00:27:05,800
So, yeah, don't excerpt me on 
the other hand, if you just say,

511
00:27:05,800 --> 00:27:09,200
and we will juice on a dollar 
fifty for every dollar Gentiles 

512
00:27:09,300 --> 00:27:12,600
learned can say it in that way, 
and then I'd say, like, no, 

513
00:27:12,600 --> 00:27:15,600
sensible person would think that
you would any negativity about 

514
00:27:15,600 --> 00:27:16,800
it. 
They would just say, all right, 

515
00:27:16,800 --> 00:27:19,400
that's interesting. 
Why is that That then you could 

516
00:27:19,400 --> 00:27:20,800
talk about it. 
Say, well, there's a lot of 

517
00:27:20,800 --> 00:27:23,200
reasons. 
We'll know what's going on, you 

518
00:27:23,200 --> 00:27:26,300
like only a messenger here and 
maybe I don't really know, but 

519
00:27:26,300 --> 00:27:28,900
I'm not going to find out better
because someone is breathing 

520
00:27:28,900 --> 00:27:32,100
down my neck for saying 
something that offends the most 

521
00:27:32,100 --> 00:27:33,700
high preventable person in the 
world. 

522
00:27:35,100 --> 00:27:38,900
And that's what I like so much 
about this book is it's not just

523
00:27:38,900 --> 00:27:42,000
a straightforward, great 
communication mechanisms it. 

524
00:27:42,200 --> 00:27:45,800
It's like you really value the 
readers time, which I feel like,

525
00:27:45,800 --> 00:27:49,000
I don't get that with a lot of 
authors straight to the point. 

526
00:27:49,000 --> 00:27:52,000
And then on to a new topic, and 
every little article, what are 

527
00:27:52,000 --> 00:27:54,200
there? 
Like, 30 or 50 chapters in this 

528
00:27:54,200 --> 00:27:55,600
thing? 
Your productivity. 

529
00:27:55,600 --> 00:27:59,200
Yeah, yeah. 
So I learned something and every

530
00:27:59,200 --> 00:28:02,200
little chapter and my time is 
appreciated. 

531
00:28:02,300 --> 00:28:03,600
I'm not going anywhere with 
that. 

532
00:28:03,600 --> 00:28:05,800
Besides the fact that People 
should buy the book and thank 

533
00:28:05,800 --> 00:28:08,200
you. 
Well, I got seven more books in 

534
00:28:08,200 --> 00:28:09,700
this series coming out 
eventually. 

535
00:28:09,700 --> 00:28:15,000
So eventually I want a lot of 
your time Keith but in any one 

536
00:28:15,000 --> 00:28:18,400
sitting I don't need much. 
That's good. 

537
00:28:18,600 --> 00:28:22,000
What? 
One of my favorite articles is 

538
00:28:22,600 --> 00:28:26,100
involved, you discussing social 
desirability bias, two quotes 

539
00:28:26,100 --> 00:28:31,200
here, the key economic Point, 
Banning Resorts saves no Mexican

540
00:28:31,200 --> 00:28:34,200
children from Hunger. 
Banning Resorts would rather 

541
00:28:34,200 --> 00:28:37,500
call Cause Mexican children to 
be hungry by depriving their 

542
00:28:37,500 --> 00:28:39,800
parents of the best jobs, they 
can get. 

543
00:28:39,800 --> 00:28:42,700
You go on to say at this point, 
it's tempting to and those, 

544
00:28:42,800 --> 00:28:44,800
let's just have a dialogue about
this. 

545
00:28:45,000 --> 00:28:47,400
The demagogues have their view 
economists have theirs. 

546
00:28:47,400 --> 00:28:49,800
Let's try to reach a consensus 
to this. 

547
00:28:49,800 --> 00:28:54,300
I at once a dialogue we don't 
need no, stinking dialogue. 

548
00:28:54,600 --> 00:28:58,000
Why would you not want to have 
dialogue with someone who just 

549
00:28:58,000 --> 00:29:01,300
wants to consider the 
possibility of regulating 

550
00:29:01,300 --> 00:29:05,600
Resorts like this? 
The problem with a dialogue is 

551
00:29:05,600 --> 00:29:09,000
that some views are true but 
they just sound really bad and 

552
00:29:09,000 --> 00:29:11,300
other views are false, but they 
sound really good. 

553
00:29:11,600 --> 00:29:14,000
And when you have a dialogue 
between those views, The View 

554
00:29:14,000 --> 00:29:16,200
that is wrong. 
Generally wins out. 

555
00:29:16,400 --> 00:29:20,700
I've been you multiple debates, 
we're just realized there's 

556
00:29:20,900 --> 00:29:24,300
really no winning this debate 
because the true position to 

557
00:29:24,300 --> 00:29:26,500
sounds. 
So awful it would be debate 

558
00:29:26,500 --> 00:29:29,800
about really is person, X too 
fat. 

559
00:29:31,200 --> 00:29:33,500
There's only one answer that 
sounds good, which is, no, of 

560
00:29:33,500 --> 00:29:36,200
course not, they're great. 
The way they are, doesn't matter

561
00:29:36,400 --> 00:29:38,500
how the person is actually 
doing. 

562
00:29:38,900 --> 00:29:43,400
There's still this problem of. 
Hmm, I sound like a real jerk. 

563
00:29:43,400 --> 00:29:47,000
When I say this right? 
You know, there are many areas 

564
00:29:47,000 --> 00:29:49,900
right now. 
We're regulation is very low. 

565
00:29:50,000 --> 00:29:52,800
And yeah, if you just imagine a 
dialogue, there's almost no 

566
00:29:52,800 --> 00:29:55,500
doubt where it would come out if
we had a big dialogue about 

567
00:29:55,500 --> 00:30:00,100
pornography, The arguments in 
favor of pornography, do not 

568
00:30:00,100 --> 00:30:02,000
sound good. 
There's like, well, a lot of 

569
00:30:02,000 --> 00:30:04,500
people really enjoy it and it's 
the best job option for the 

570
00:30:04,500 --> 00:30:06,700
workers. 
I wouldn't want my kid doing it,

571
00:30:06,700 --> 00:30:09,100
but there's a lot of jobs that 
wouldn't want my kid doing. 

572
00:30:09,700 --> 00:30:14,400
Alright, that's the case for a 
the case, against just give 

573
00:30:14,400 --> 00:30:17,600
every horror story, every awful 
thing that you can think about 

574
00:30:17,600 --> 00:30:21,700
every really like, yeah. 
We're like just imagine like 

575
00:30:21,700 --> 00:30:23,300
these. 
There's this horrible kind of. 

576
00:30:24,000 --> 00:30:25,600
There's that horrible kind of 
porn. 

577
00:30:25,900 --> 00:30:27,100
What kind of a world are we 
living? 

578
00:30:27,300 --> 00:30:29,100
It in like who's going to win 
the debate? 

579
00:30:29,100 --> 00:30:31,900
Obviously the person who goes 
and list, 100 horrifying, forms 

580
00:30:31,900 --> 00:30:35,600
of pornography is going to crush
it in the eyes of the audience 

581
00:30:36,200 --> 00:30:39,100
and yet the arguments in favor. 
Pretty good. 

582
00:30:39,100 --> 00:30:43,000
Actually and the other stuff is 
mostly just inflammatories, like

583
00:30:43,000 --> 00:30:46,900
well, yeah. 
This isn't sound too good. 

584
00:30:46,900 --> 00:30:50,100
Yeah, but still with a bunch of 
people and Charlie, the people 

585
00:30:50,100 --> 00:30:51,900
were delivering, it don't seem 
to mind. 

586
00:30:52,000 --> 00:30:55,000
Like, how is this, my business 
doesn't sound like a good 

587
00:30:55,000 --> 00:30:56,700
argument, but it's a good 
argument. 

588
00:30:58,200 --> 00:31:02,200
Bernie Sanders and Alexandria. 
Cascio Cortez were in the 

589
00:31:02,200 --> 00:31:06,600
headlines this week for speaking
to Amazon workers, who are 

590
00:31:06,600 --> 00:31:09,700
trying to unionize. 
I hate to say workers as though 

591
00:31:09,700 --> 00:31:12,500
entrepreneurs and investors. 
Don't work, such a lie. 

592
00:31:13,300 --> 00:31:15,600
So Bernie and AOC are talking to
these people. 

593
00:31:15,900 --> 00:31:20,600
And Bernie's big point you are 
up against a guy worth a hundred

594
00:31:20,600 --> 00:31:24,500
and seventy billion dollars. 
One guy has all this money piled

595
00:31:24,500 --> 00:31:26,700
up. 
So when it comes to I want to 

596
00:31:26,700 --> 00:31:30,700
take his First, when it comes to
one guy, having a hundred and 

597
00:31:30,700 --> 00:31:34,400
seventy billion dollars and 
these other people earning $15 

598
00:31:35,000 --> 00:31:37,100
an hour. 
What is wrong with? 

599
00:31:37,100 --> 00:31:40,500
Oh gosh, we have to sacrifice 
one guy and redistribute his 

600
00:31:40,500 --> 00:31:42,500
wealth boohoo. 
We could help so many other 

601
00:31:42,500 --> 00:31:44,000
people. 
What's wrong with that way of 

602
00:31:44,000 --> 00:31:48,800
thinking. 
Wow, we just to start the fact 

603
00:31:48,800 --> 00:31:51,700
that the customers really rich 
does not mean that his labor 

604
00:31:51,700 --> 00:31:54,900
demand elasticity as low as to 
go back to that previous 

605
00:31:54,900 --> 00:31:59,500
technical concept, but to put it
in simpler terms just because 

606
00:31:59,500 --> 00:32:02,200
you're rich and could easily 
afford something, doesn't mean 

607
00:32:02,200 --> 00:32:03,600
that you were going to ignore 
the price. 

608
00:32:04,100 --> 00:32:07,100
There are plenty of Rich sheet 
people in the world. 

609
00:32:07,200 --> 00:32:09,800
And if you take the price of 
something and you raise it a 

610
00:32:09,808 --> 00:32:13,400
lot, even a rich, she person 
real cheap person who is Rich 

611
00:32:13,400 --> 00:32:15,000
will say, well, I can live 
without it. 

612
00:32:15,000 --> 00:32:17,600
I don't need it. 
Thinking about my dad, my dad is

613
00:32:17,600 --> 00:32:22,500
loaded but he literally wears 
Rags really does. 

614
00:32:22,500 --> 00:32:26,100
He wears t-shirts that are 
ripped like a 18 inch rep? 

615
00:32:26,100 --> 00:32:28,300
And he just walks around like 
that he doesn't care. 

616
00:32:28,800 --> 00:32:32,600
Like could he afford? 
I'm going to get new t-shirts. 

617
00:32:32,800 --> 00:32:36,600
Of course, my dad could afford 
10,000 new t-shirts, doesn't 

618
00:32:36,600 --> 00:32:39,100
mean that he's going to ignore 
the price when he decides 

619
00:32:39,100 --> 00:32:41,100
whether he wants to go and get 
new t-shirts. 

620
00:32:41,500 --> 00:32:45,300
The same goes for any business. 
The fact that they totally could

621
00:32:45,500 --> 00:32:47,000
Afford. 
It doesn't mean that they will 

622
00:32:47,000 --> 00:32:50,200
be insensitive to the price. 
And that question about 

623
00:32:50,200 --> 00:32:53,600
sensitivity, the price is really
the pragmatic one for whether 

624
00:32:53,600 --> 00:32:55,400
you want to go and push for 
more. 

625
00:32:56,100 --> 00:33:02,200
Second point is that even though
a person can be worth billions? 

626
00:33:02,200 --> 00:33:04,500
And yes, you could say, hey at 
this point would be really easy 

627
00:33:04,500 --> 00:33:07,900
to go and just expropriate them 
hand out their stuff to a bunch 

628
00:33:07,900 --> 00:33:09,100
of people. 
Need it more and that would be 

629
00:33:09,100 --> 00:33:13,100
great in the problem is that 
this hat leads to very bad 

630
00:33:13,100 --> 00:33:16,200
incentives, over the longer, run
in such a world Who would ever 

631
00:33:16,200 --> 00:33:18,500
want to amass that kind of money
in the first place? 

632
00:33:18,800 --> 00:33:20,500
I did a world where no one can 
become a billionaire. 

633
00:33:20,500 --> 00:33:23,500
No one wants to work hard. 
Not to become a billionaire like

634
00:33:23,500 --> 00:33:26,000
or course also in the real 
world, people try to figure out 

635
00:33:26,000 --> 00:33:29,800
ways to own billions without 
officially owning billions and 

636
00:33:29,800 --> 00:33:31,400
there's plenty of ways of doing 
that. 

637
00:33:31,800 --> 00:33:34,700
My you'll say well, look, will 
you just think about the 

638
00:33:34,700 --> 00:33:37,700
Catholic church? 
I'm I did my favorite part. 

639
00:33:37,900 --> 00:33:42,400
My favorite caricature of a see,
someone living very well in the 

640
00:33:42,400 --> 00:33:44,700
Vatican is oh, I don't do 
anything to church. 

641
00:33:44,700 --> 00:33:46,300
Owns at all. 
All right. 

642
00:33:46,300 --> 00:33:50,900
So similarly, you can just have 
the wealth, the owned by the 

643
00:33:50,900 --> 00:33:54,900
business and not be officially 
owned by the owner, and then he 

644
00:33:54,900 --> 00:33:58,700
can still live super well 
without in fact, legally, being 

645
00:33:58,700 --> 00:34:01,800
in possession of it. 
So that's another very easy way 

646
00:34:01,800 --> 00:34:04,500
that people can get around it. 
But, yeah, like it comes down to

647
00:34:04,500 --> 00:34:07,000
imaginable, where no one can go 
and become a billionaire. 

648
00:34:07,200 --> 00:34:10,400
What is this due to the efforts 
of people to go and come up with

649
00:34:10,400 --> 00:34:12,699
new ideas and do new things and 
improve things. 

650
00:34:13,199 --> 00:34:16,500
Again, the idea that no one 
needs More than a billion. 

651
00:34:16,699 --> 00:34:19,100
It's like, Yeah, Boy, sure no 
one needs more than a billion. 

652
00:34:19,100 --> 00:34:20,800
No one really needs under 
thousand. 

653
00:34:20,800 --> 00:34:22,900
You can survive on way less than
that. 

654
00:34:23,100 --> 00:34:25,199
Doesn't mean the Mone money is 
not motivating. 

655
00:34:25,199 --> 00:34:27,900
Not only to the individuals 
concerned, but all the people 

656
00:34:28,100 --> 00:34:31,100
who are in what we can call a 
tournament, the tournament to 

657
00:34:31,100 --> 00:34:34,100
become really successful. 
This is I don't think that I 

658
00:34:34,107 --> 00:34:36,300
talked about in library Converse
of the world. 

659
00:34:36,600 --> 00:34:38,600
There's something in labor you 
can call tournament theory. 

660
00:34:38,600 --> 00:34:41,300
That says that one reason for 
having high salaries for top, 

661
00:34:41,300 --> 00:34:44,000
people isn't just a motivate. 
The top people is to motivate 

662
00:34:44,000 --> 00:34:45,300
all the people who think they 
have a shot. 

663
00:34:45,400 --> 00:34:48,500
Shot at becoming that top person
in the same way that the prize 

664
00:34:48,500 --> 00:34:51,300
and athletic contest. 
It motivates more than the 

665
00:34:51,300 --> 00:34:54,199
winner and motivates all the 
losers, too, because you don't 

666
00:34:54,199 --> 00:34:57,300
know who's going to be the 
winner for sure until the end, 

667
00:34:57,900 --> 00:35:03,500
Do you see that? 
There is a complete lack of not 

668
00:35:03,500 --> 00:35:07,600
sure if appreciations the right 
word but recognition as to what 

669
00:35:07,600 --> 00:35:12,100
the innovator entrepreneur 
investor actually does. 

670
00:35:12,100 --> 00:35:16,900
Because it's as though they say 
this, as though, one day, you 

671
00:35:16,900 --> 00:35:20,800
know, things were falling from 
the sky Bezos, got 170 billion. 

672
00:35:20,800 --> 00:35:24,200
I could have gotten it just as 
easily but he sort of got this 

673
00:35:24,200 --> 00:35:27,800
as a result of happenstance. 
If you had to explain to people 

674
00:35:27,900 --> 00:35:33,500
People the value of say the 
entrepreneur or the value of the

675
00:35:33,500 --> 00:35:37,300
planning that goes on behind the
scenes managing, what would you 

676
00:35:37,300 --> 00:35:40,900
say to that person? 
I would start by looking at 

677
00:35:40,900 --> 00:35:43,300
other cases that have nothing to
do with business because people 

678
00:35:43,300 --> 00:35:45,700
have so much resentment have 
been to get about business. 

679
00:35:45,700 --> 00:35:48,000
It's hard to start there, I 
would say. 

680
00:35:48,300 --> 00:35:52,100
So, what do you think about the 
people that made the Moderne 

681
00:35:52,100 --> 00:35:54,800
covid vaccine? 
You think they did something 

682
00:35:54,800 --> 00:35:57,700
really good? 
What they did impressive good? 

683
00:35:57,800 --> 00:36:01,100
Anybody have done that or only 
some people I do. 

684
00:36:01,100 --> 00:36:02,700
You think there were a lot of 
other smart people who are 

685
00:36:02,700 --> 00:36:05,600
trying really hard, who just 
didn't make it. 

686
00:36:06,200 --> 00:36:08,700
I think I can pretty easily get 
yes this to all these kinds of 

687
00:36:08,700 --> 00:36:15,200
questions and then say, all 
right well, so why is it so hard

688
00:36:15,200 --> 00:36:16,900
for people to actually come with
a vaccine? 

689
00:36:16,900 --> 00:36:18,500
Well, you need a lot of 
knowledge. 

690
00:36:18,500 --> 00:36:21,700
You need Insight, you need 
diligence training. 

691
00:36:21,700 --> 00:36:24,700
You need some luck to, of 
course, put that all together. 

692
00:36:25,400 --> 00:36:29,300
It's a very hard for me. 
Laughs for figuring that thing 

693
00:36:29,300 --> 00:36:32,100
out this a great to know why? 
Because it's an intellectually 

694
00:36:32,100 --> 00:36:34,300
extremely difficult task. 
So. 

695
00:36:34,300 --> 00:36:37,200
Okay, how about making 
McDonald's? 

696
00:36:37,400 --> 00:36:38,900
Is that something any dummy 
could do? 

697
00:36:40,300 --> 00:36:41,700
Right. 
Hmm. 

698
00:36:42,000 --> 00:36:43,700
Well, it's just Burgers, isn't 
it? 

699
00:36:44,200 --> 00:36:48,300
It's not just Burgers. 
There's a lot more in McDonald's

700
00:36:48,300 --> 00:36:52,500
than just Burgers a lot more 
than just going and setting up 

701
00:36:52,500 --> 00:36:54,800
one restaurant. 
You go and watch a movie like 

702
00:36:54,800 --> 00:36:57,300
the founder about the creation 
McDonald's, you realize. 

703
00:36:57,500 --> 00:37:01,900
Wow, there's actually an 
enormous amount of intellectual 

704
00:37:02,300 --> 00:37:05,900
effort that goes into making one
successful restaurant. 

705
00:37:06,400 --> 00:37:09,300
Now, the official theme of that 
movie, by the way, was that the 

706
00:37:09,300 --> 00:37:13,900
guys who really All the ideas 
got ripped off by a sit by me or

707
00:37:13,908 --> 00:37:18,200
salesman who showed up realize 
that a good idea and then rip 

708
00:37:18,200 --> 00:37:21,300
them off. 
But if you watch the movie with 

709
00:37:21,300 --> 00:37:24,700
a more reasonable mindset, you 
realize, look, they're the guys 

710
00:37:24,700 --> 00:37:26,900
who could the first McDonald's, 
they did a lot of great ideas 

711
00:37:26,900 --> 00:37:29,500
but they were terrible in 
marketing, terrible, and 

712
00:37:29,500 --> 00:37:34,300
scaling, and Ray Kroc was great.
At those other things. 

713
00:37:34,300 --> 00:37:37,400
He took some other ideas that 
people had, which were not his 

714
00:37:37,400 --> 00:37:39,900
own and he combined them with a 
bunch of other critical. 

715
00:37:40,000 --> 00:37:42,300
Cool ideas. 
And even he actually was not 

716
00:37:42,300 --> 00:37:44,400
make money in four years, he 
needed to spend a lot of time 

717
00:37:44,400 --> 00:37:48,600
tweaking that formula until 
finally hit Pay Dirt for every 

718
00:37:48,600 --> 00:37:50,400
person like that. 
There's a lot of other people 

719
00:37:50,400 --> 00:37:54,100
that are really smart and try 
really hard and never succeed. 

720
00:37:54,400 --> 00:37:58,600
This is something where you just
have to go and try a lot of 

721
00:37:58,600 --> 00:38:01,300
ideas out, a lot of people if 
you trying in tandem to get the 

722
00:38:01,300 --> 00:38:04,300
success, the reused to there 
were a whole lot of vaccine 

723
00:38:04,300 --> 00:38:05,800
ideas. 
They got tried bunch of them 

724
00:38:05,800 --> 00:38:09,200
succeeded there's a you don't 
hear about the losers but no 

725
00:38:09,200 --> 00:38:11,700
doubt there were many Losers, 
that just failed. 

726
00:38:12,200 --> 00:38:13,500
You might say, we're the losers 
weren't? 

727
00:38:13,500 --> 00:38:15,600
They just too smart. 
I don't know. 

728
00:38:16,000 --> 00:38:17,700
Probably, they weren't quite as 
smart. 

729
00:38:17,800 --> 00:38:20,000
Maybe they got lucky. 
Maybe they had some other 

730
00:38:20,000 --> 00:38:23,900
advantages, but the important 
point is that running a 

731
00:38:23,900 --> 00:38:26,200
successful business is actually 
extremely intellectually 

732
00:38:26,200 --> 00:38:28,300
demanding. 
It's not something that anybody 

733
00:38:28,300 --> 00:38:30,800
could do. 
Furthermore, it's not is in some

734
00:38:30,800 --> 00:38:33,000
one way, one important way it's 
much harder than science, which 

735
00:38:33,000 --> 00:38:35,800
is the ones you figure out a 
scientific result, it stays true

736
00:38:35,800 --> 00:38:38,600
forever. 
Once you figure out a great 

737
00:38:38,600 --> 00:38:39,800
business model, it does not 
stay. 

738
00:38:40,000 --> 00:38:42,500
Great forever. 
Very quickly, other people may 

739
00:38:42,500 --> 00:38:45,300
be borrowing your idea, 
improving your idea, you might 

740
00:38:45,300 --> 00:38:50,200
only have months or maybe a few 
years you're lucky of using your

741
00:38:50,200 --> 00:38:52,100
idea. 
Before the whole world has 

742
00:38:52,400 --> 00:38:56,100
copied you and then improved and
you're left in their dust. 

743
00:38:56,700 --> 00:38:58,500
Yeah it would see you. 
My are you old enough to 

744
00:38:58,500 --> 00:39:02,400
remember Blockbuster Video? 
Yeah, that would go every week 

745
00:39:02,500 --> 00:39:05,100
Blockbuster Video. 
I still remember the whole 

746
00:39:05,100 --> 00:39:08,900
country was Blockbuster 
sprouting out with these giant 

747
00:39:08,900 --> 00:39:12,500
optimistic signs. 
We grow again and then they 

748
00:39:12,500 --> 00:39:15,100
vanish into nothingness. 
I get one point. 

749
00:39:15,100 --> 00:39:18,000
Blockbuster was an incredible 
Innovation and then it turned 

750
00:39:18,000 --> 00:39:22,300
into a dinosaur in not even a 
generation and like, 10 years, 

751
00:39:22,300 --> 00:39:25,800
it went from being the main 
people place where people were 

752
00:39:25,800 --> 00:39:29,300
getting were able to choose 
movies to the Dustbin of 

753
00:39:29,300 --> 00:39:32,600
history, and it'll actually very
demanding task. 

754
00:39:32,600 --> 00:39:35,300
And one more someone who's smart
enough to start it, still 

755
00:39:35,300 --> 00:39:38,600
dependently was not smart enough
to transform it to adapt to 

756
00:39:38,600 --> 00:39:40,800
changing conditions. 
That's That's what business 

757
00:39:40,800 --> 00:39:44,500
really is. 
Like, whatever I have done 

758
00:39:44,500 --> 00:39:47,300
anything business. 
See my admiration for people 

759
00:39:47,300 --> 00:39:48,500
were actually running 
successful. 

760
00:39:48,500 --> 00:39:52,000
Businesses goes up another time 
another notch because it's 

761
00:39:52,000 --> 00:39:54,000
likely you'll officially I'm 
smart. 

762
00:39:54,000 --> 00:39:57,300
I've got fancy credentials. 
I got a lot of connections and 

763
00:39:57,300 --> 00:40:00,100
yet even going and selling a 
book of my own. 

764
00:40:00,300 --> 00:40:02,700
He's actually very hard. 
Very discouraging. 

765
00:40:03,000 --> 00:40:06,200
Just imagine how hard it is to 
do something really well. 

766
00:40:06,900 --> 00:40:09,800
Yeah, it's like it would those 
guys they got something. 

767
00:40:10,200 --> 00:40:12,800
Something that I had at least 
not demonstrated. 

768
00:40:12,800 --> 00:40:15,400
Maybe if I devoted my whole life
to running businesses, I could 

769
00:40:15,400 --> 00:40:17,800
do it. 
But then again maybe not. 

770
00:40:17,800 --> 00:40:21,200
Maybe I could give it my very 
best shot and totally fail. 

771
00:40:21,600 --> 00:40:23,700
I'm grateful that other people 
do that. 

772
00:40:23,700 --> 00:40:28,600
So I don't have to I think 
that's so important because if 

773
00:40:28,600 --> 00:40:32,500
you look at right after Karl 
Marx and the Communist Manifesto

774
00:40:32,600 --> 00:40:35,100
says, look at all these great 
things capitalism has done for 

775
00:40:35,100 --> 00:40:38,600
us just in the last 100 years. 
Josh, think of how much better. 

776
00:40:38,600 --> 00:40:41,700
It's going to be once the 
workers are calling the shots as

777
00:40:41,700 --> 00:40:45,400
it like the greatest example of 
static thinking, you've ever 

778
00:40:45,900 --> 00:40:48,600
you've ever come across? 
It's like, if we drastically 

779
00:40:48,600 --> 00:40:52,200
changed the primary, 
decision-makers things will 

780
00:40:52,400 --> 00:40:57,000
continue in on their current 
trajectory that Just so shocking

781
00:40:57,000 --> 00:40:58,100
to read. 
I had to read it. 

782
00:40:58,100 --> 00:41:01,700
Like, I checked two copies to 
make sure that line was 

783
00:41:01,700 --> 00:41:05,500
translated correctly. 
Yeah, that is a bizarre part of 

784
00:41:05,508 --> 00:41:07,700
the book. 
I mean, it's essentially 

785
00:41:07,800 --> 00:41:10,600
reverse, empirical, reasoning of
saying, you know what's going to

786
00:41:10,607 --> 00:41:14,000
be the best system ever. 
The system that didn't create 

787
00:41:14,000 --> 00:41:16,300
all this incredible progress, 
you don't. 

788
00:41:16,300 --> 00:41:18,100
System is going to be terrible. 
Is going to be seen to be 

789
00:41:18,100 --> 00:41:20,500
terrible real soon. 
The system that did deliver. 

790
00:41:20,900 --> 00:41:24,800
Like, wait a second Carl, you 
know, the best predictor of 

791
00:41:24,800 --> 00:41:26,900
future success is. 
Past success. 

792
00:41:27,500 --> 00:41:30,400
The best way forward is to stick
with the system that has worked 

793
00:41:30,400 --> 00:41:34,100
so far. 
Not to go and dismantle it in 

794
00:41:34,100 --> 00:41:38,700
Fire and Blood and then trust in
the promises of people who, as 

795
00:41:38,700 --> 00:41:41,600
far as we know Karl Marx, never 
even visited a factory in this 

796
00:41:41,600 --> 00:41:45,000
whole life. 
Angles did of course, he was a 

797
00:41:45,008 --> 00:41:51,300
factory owner when we talk 
about, how should this economic 

798
00:41:51,300 --> 00:41:54,200
issue be approached. 
A lot of people will say, well, 

799
00:41:54,200 --> 00:41:58,400
we have to look at the studies, 
and look at the research now, I 

800
00:41:58,400 --> 00:42:00,800
really appreciate people who 
take the time to do this. 

801
00:42:01,100 --> 00:42:05,200
My question is, do studies give 
tyrants too much leeway. 

802
00:42:05,200 --> 00:42:09,000
For example, you might look at 
something and say, okay, it's 

803
00:42:09,000 --> 00:42:11,100
good. 
So what we need is for the 

804
00:42:11,100 --> 00:42:13,200
government to fund more of this 
good stuff. 

805
00:42:13,400 --> 00:42:16,100
It's really bad. 
Well, government needs to step 

806
00:42:16,100 --> 00:42:20,200
in and improve this under almost
any scenario of you see this big

807
00:42:20,200 --> 00:42:25,500
Magic Money printing machine. 
As having no - downside is, is 

808
00:42:25,500 --> 00:42:29,600
empiricism a way to sort of just
open the door to tyrants who 

809
00:42:29,600 --> 00:42:33,600
control the media, who will spin
any study any way they want. 

810
00:42:34,500 --> 00:42:37,000
Ultimately, I don't think so. 
Here's the thing, you have to 

811
00:42:37,008 --> 00:42:38,500
ask, well, what would the media 
be doing? 

812
00:42:38,500 --> 00:42:41,700
If there was no empirical work, 
they shut up. 

813
00:42:43,300 --> 00:42:45,600
No, they would not shut up. 
What politicians do if there was

814
00:42:45,600 --> 00:42:49,000
no academic research on any of 
the topics they want to talk 

815
00:42:49,000 --> 00:42:50,500
about? 
Would they shut up? 

816
00:42:50,500 --> 00:42:53,800
No, they would not shut up. 
They would just make stuff up or

817
00:42:53,800 --> 00:42:55,000
engage in. 
Poetry. 

818
00:42:55,300 --> 00:42:58,200
Think the of the real story of 
almost all empirical academic 

819
00:42:58,200 --> 00:43:00,700
research, is that it's 
irrelevant to the real world. 

820
00:43:01,000 --> 00:43:04,300
It's basically a way for 
professors to go and get their 

821
00:43:04,300 --> 00:43:06,200
dream jobs for life. 
It's a way to establish an 

822
00:43:06,200 --> 00:43:09,200
academic pecking order. 
It is true that doing this kind 

823
00:43:09,200 --> 00:43:12,600
of research is one of the better
ways of getting a high-ranking 

824
00:43:12,600 --> 00:43:15,800
position as Actually in a 
democratic Administration, but 

825
00:43:15,800 --> 00:43:17,400
once you're in that 
Administration, nobody cares 

826
00:43:17,400 --> 00:43:20,400
about your studies, all they 
care about is that you're on the

827
00:43:20,408 --> 00:43:24,300
right team and you need to seem 
smart and say what people higher

828
00:43:24,300 --> 00:43:26,800
up want to hear? 
It's really what's required. 

829
00:43:27,200 --> 00:43:31,300
So, yeah, I think that the 
actual relevance of empirical 

830
00:43:31,300 --> 00:43:35,700
work for making the fruit for 
creating tyranny is pretty darn 

831
00:43:35,700 --> 00:43:38,200
low. 
You know, if you just think 

832
00:43:38,200 --> 00:43:40,700
about something like covid, 
like, you did Empirical research

833
00:43:40,700 --> 00:43:42,900
on covid, actually. 
Cause the enormous overreach 

834
00:43:43,300 --> 00:43:45,700
Action to covid. 
I don't think you can fairly say

835
00:43:45,700 --> 00:43:48,000
that, you know why? 
Because the over reaction 

836
00:43:48,000 --> 00:43:51,400
happened before, there's any 
evidence in really like there 

837
00:43:51,400 --> 00:43:54,200
was like wheezing of the of the 
world economy was shut down 

838
00:43:54,200 --> 00:43:58,400
before there was barely time to 
do any actual barracks. 

839
00:43:58,400 --> 00:44:03,100
And then what happened? 
Well, the empirics that were 

840
00:44:03,100 --> 00:44:07,000
done were of the among the 
lowest quality you can do just 

841
00:44:07,000 --> 00:44:10,500
the observational study writer 
an often worse often. 

842
00:44:10,500 --> 00:44:12,800
It's like, here's a paper 
showing that this policy works. 

843
00:44:12,800 --> 00:44:13,800
Why we? 
Model. 

844
00:44:14,800 --> 00:44:17,400
What a model is to empirically 
tested, it's not just a model 

845
00:44:17,400 --> 00:44:19,700
and then say this model justify 
something, you can always come 

846
00:44:19,700 --> 00:44:23,200
up with a model of anything. 
So that's pretty ridiculous. 

847
00:44:23,600 --> 00:44:26,900
What was not done during covid, 
as far as I know in any country 

848
00:44:26,900 --> 00:44:30,300
so we have UK is finally done a 
little bit but during the 

849
00:44:30,300 --> 00:44:33,200
serious period nothing was done.
Is a voluntary human 

850
00:44:33,200 --> 00:44:36,900
experimentation? 
Let's go and actually show you 

851
00:44:36,908 --> 00:44:39,600
how go, you know so we will your
voluntary, paid you a human 

852
00:44:39,600 --> 00:44:42,300
experimentation and in 
particular paying people to go 

853
00:44:42,300 --> 00:44:44,900
and do things that are dangerous
Yes, of course, vaccines were 

854
00:44:44,900 --> 00:44:48,900
voluntarily tested on people, 
but only in a highly inefficient

855
00:44:48,900 --> 00:44:51,800
way where you didn't give them 
vaccine and then you wait three 

856
00:44:51,800 --> 00:44:53,200
months and see where they got 
covid. 

857
00:44:53,200 --> 00:44:55,200
There's a much better way of 
doing it. 

858
00:44:55,200 --> 00:44:58,300
Which you can the vaccine, and 
then you deliberately expose 

859
00:44:58,300 --> 00:45:01,000
people to covid and see whether 
the vaccinated people were 

860
00:45:01,000 --> 00:45:03,600
deliberately exposed. 
Who you Suzie? 

861
00:45:03,600 --> 00:45:05,400
Oh, Sue was a, whether whether 
to vaccinate people will be 

862
00:45:05,400 --> 00:45:07,100
exposed or less like a developer
or not. 

863
00:45:07,100 --> 00:45:08,900
And then you got an immediate 
measure this way. 

864
00:45:08,900 --> 00:45:11,500
You could know about vaccine 
efficacy and a month, instead of

865
00:45:11,500 --> 00:45:14,400
three to six months. 
I'd say this is a case where I 

866
00:45:14,408 --> 00:45:17,500
think empirical work would have 
actually been a big improvement 

867
00:45:17,500 --> 00:45:20,000
over was done like good, 
empirical work and the same 

868
00:45:20,000 --> 00:45:21,400
thing. 
Like I think it would have been 

869
00:45:21,400 --> 00:45:24,900
great if we done real empirical 
work on masks ones, where we 

870
00:45:24,900 --> 00:45:27,700
actually randomly selected, some
people with masks some of that 

871
00:45:27,700 --> 00:45:29,500
out and then put them in a room 
with a lot of covid. 

872
00:45:29,500 --> 00:45:31,900
And saw what happened? 
That would have been a way back,

873
00:45:31,900 --> 00:45:34,300
big Improvement. 
And again, honestly, I think 

874
00:45:34,300 --> 00:45:38,100
that the most likely outcome 
would have been the mass, don't 

875
00:45:38,100 --> 00:45:40,300
work very well. 
And in perhaps, the experiment 

876
00:45:40,300 --> 00:45:41,400
wasn't done because people, 
feared the truth. 

877
00:45:42,700 --> 00:45:45,000
Well yeah well but we need to do
something and then if it turns 

878
00:45:45,000 --> 00:45:48,600
out the masks aren't really very
good and the end probably if the

879
00:45:48,600 --> 00:45:52,100
mass could come out saying that 
mask wearing reduces infection 

880
00:45:52,100 --> 00:45:54,500
by 1% people would have said 
just said, well if it saves one 

881
00:45:54,500 --> 00:45:56,900
life, that's good enough and 
even then it would have mattered

882
00:45:57,200 --> 00:46:00,300
but I think it probably would 
have been helpful for quelling. 

883
00:46:00,300 --> 00:46:04,100
The true hyperbole follow you. 
Like you want you, you want to 

884
00:46:04,100 --> 00:46:06,800
have mass death in schools and 
that kind of nonsense. 

885
00:46:07,300 --> 00:46:09,300
Yeah. 
So overall empirical work. 

886
00:46:09,900 --> 00:46:12,300
Greatly overrated by people who 
do it because they just think 

887
00:46:12,500 --> 00:46:15,000
That it's much more influential 
the real world than it really 

888
00:46:15,000 --> 00:46:17,000
is. 
Although I mean, if you really 

889
00:46:17,000 --> 00:46:19,400
talk to them, there's there's 
there's not even with a miracle 

890
00:46:19,400 --> 00:46:22,400
researchers, this, a disconnect 
where they said, well we why do 

891
00:46:22,400 --> 00:46:24,400
we need to do this o because 
it's so important to answer 

892
00:46:24,400 --> 00:46:25,500
these questions. 
Yeah. 

893
00:46:25,500 --> 00:46:27,000
But who actually in politics 
listens? 

894
00:46:27,400 --> 00:46:28,600
Yeah. 
Well, I guess kind of, no one 

895
00:46:29,200 --> 00:46:32,600
whoops. 
So anyway, that's what are the 

896
00:46:32,600 --> 00:46:34,100
with the active researchers 
think? 

897
00:46:34,500 --> 00:46:38,500
Anyway, it's it's so it's 
overrated by them but I think 

898
00:46:38,600 --> 00:46:40,800
it's about to go and blame it 
for what's wrong with the world.

899
00:46:40,800 --> 00:46:42,900
I think that's mostly pretty. 
Be silly. 

900
00:46:42,900 --> 00:46:45,300
Bad stuff is going to happen 
regardless because people just 

901
00:46:45,300 --> 00:46:49,900
want to do bad stuff. 
Yeah, and even the CNN dr. 

902
00:46:50,000 --> 00:46:53,500
Lena, when has come out and said
that masks are little more than 

903
00:46:53,500 --> 00:46:56,600
facial decorations at this 
point, you basically have to get

904
00:46:56,600 --> 00:46:59,600
the vaccine if you want 
anything, so two years of Lies. 

905
00:46:59,700 --> 00:47:00,900
Yep. 
No apology. 

906
00:47:00,900 --> 00:47:04,000
Just just run over the body and 
just keep driving. 

907
00:47:04,900 --> 00:47:07,900
There are some mercy cheese with
ink with the, I think least lean

908
00:47:07,900 --> 00:47:10,200
a little bit in the direction of
does a little bit. 

909
00:47:11,300 --> 00:47:16,400
But yeah, well I don't like five
or ten percent that would still 

910
00:47:16,400 --> 00:47:19,000
be my guess. 
Ultimately, I think I've read 

911
00:47:19,000 --> 00:47:21,600
the summaries the studies and 
read the studies themselves but 

912
00:47:21,800 --> 00:47:27,100
I'll say that puts me in the top
1.1% terms of how much potential

913
00:47:27,100 --> 00:47:28,500
people who pay to actual 
evidence. 

914
00:47:28,900 --> 00:47:30,500
But is he a like five to ten 
percent? 

915
00:47:30,500 --> 00:47:34,400
This is not worth it for the for
risk of this kind. 

916
00:47:34,500 --> 00:47:37,200
It's crazy. 
The book is labor. 

917
00:47:37,200 --> 00:47:40,000
Econ vs. 
The World essays on the world's 

918
00:47:40,000 --> 00:47:42,100
greatest Market. 
More questions for you dr. 

919
00:47:42,100 --> 00:47:44,000
Gatlin. 
Thank you for your patience with

920
00:47:44,000 --> 00:47:49,700
me in the year 1800 versus the 
year of 2020. 

921
00:47:49,700 --> 00:47:52,500
To adjusted for inflation wages 
have risen. 

922
00:47:52,500 --> 00:47:55,400
In that time we've seen a lot of
unions. 

923
00:47:55,400 --> 00:47:57,500
We've seen a lot of labor laws, 
we've seen the government 

924
00:47:57,500 --> 00:48:02,300
involve itself in education. 
Therefore, this we know is the 

925
00:48:02,300 --> 00:48:06,600
method of getting low wages to 
become higher investments in the

926
00:48:06,600 --> 00:48:11,900
population and unions coming 
together to Lovely, bargain for 

927
00:48:11,900 --> 00:48:15,500
higher wages. 
True or false false? 

928
00:48:16,000 --> 00:48:18,500
What's true? 
Is that some of these things 

929
00:48:18,500 --> 00:48:20,900
might have some small effect, 
some of the time that's very 

930
00:48:20,900 --> 00:48:24,600
different from giving these 
regulations government policies 

931
00:48:24,600 --> 00:48:26,700
credit for anything close to the
whole thing. 

932
00:48:27,000 --> 00:48:31,400
Here's the knockdown bulletproof
argument. 

933
00:48:31,700 --> 00:48:36,500
Look if we just went and divide 
it, all of the income in the 

934
00:48:36,500 --> 00:48:39,700
world in 1800, by all the people
it would have been a pittance 

935
00:48:39,700 --> 00:48:42,500
compared to what we have today. 
So clearly the main thing that 

936
00:48:42,500 --> 00:48:45,500
is mattered is increasing 
productivity per worker, it 

937
00:48:45,500 --> 00:48:46,900
can't be anything 
redistributive. 

938
00:48:46,900 --> 00:48:49,300
It can't be anything where we're
taking money from business to 

939
00:48:49,300 --> 00:48:53,800
work or Rich to poor the math 
for that totally does not add 

940
00:48:53,800 --> 00:48:55,200
up. 
We have greatly increased 

941
00:48:55,200 --> 00:48:58,500
production per person. 
So anytime there's a law that is

942
00:48:58,500 --> 00:49:01,100
re distributive. 
You just can't give that more 

943
00:49:01,100 --> 00:49:03,900
than a most at the moment you 
can't give it any more than a 

944
00:49:03,908 --> 00:49:06,500
tinier. 
A share of the credit almost all

945
00:49:06,500 --> 00:49:10,700
the credit just goes to increase
production in terms of whether 

946
00:49:10,700 --> 00:49:13,400
these These laws have had any 
positive effect at all for 

947
00:49:13,400 --> 00:49:16,700
workers, this is where you 
really need to go and consider 

948
00:49:16,700 --> 00:49:20,300
them one by one. 
And look at first of all the 

949
00:49:20,300 --> 00:49:23,200
basic Theory, common sense. 
But also the numbers for 

950
00:49:23,200 --> 00:49:25,400
something like unions. 
Here's the main thing that we 

951
00:49:25,400 --> 00:49:29,200
can say, unionization Peaks 
around. 

952
00:49:29,900 --> 00:49:32,300
Let's see. 
I want to say around 1950 and 

953
00:49:32,300 --> 00:49:35,200
then it's been falling ever 
since Yeah. 

954
00:49:35,200 --> 00:49:40,100
Well there were a whole lot of 
fantastic years for for wage 

955
00:49:40,100 --> 00:49:42,500
growth long before unions for 
anything noticeable. 

956
00:49:42,800 --> 00:49:45,700
And there were a whole bunch of 
great years for wage growth as 

957
00:49:45,700 --> 00:49:49,800
unions were on the decline. 
And that's just what we see. 

958
00:49:50,100 --> 00:49:52,700
All right, so the idea that 
unions are somehow. 

959
00:49:52,700 --> 00:49:55,000
Crucial look, if they were 
crucial wages, should have been 

960
00:49:55,000 --> 00:49:58,900
going down since 1950. 
They went up, right? 

961
00:49:58,900 --> 00:50:01,800
So, that's pretty crazy. 
Right? 

962
00:50:02,000 --> 00:50:04,300
For things like education, 
that's one where I do have. 

963
00:50:04,500 --> 00:50:09,600
Book on this and I say that just
to understand what's going on. 

964
00:50:09,600 --> 00:50:12,600
Step one is you have to look at 
what schools really teach and 

965
00:50:12,607 --> 00:50:15,100
when you realize that what most 
schools spend their day on as 

966
00:50:15,100 --> 00:50:18,200
nothing to do with real life, 
the idea that education has been

967
00:50:18,200 --> 00:50:21,600
an important part of increasing 
the size of the pie or raising 

968
00:50:21,600 --> 00:50:24,100
productivity per worker is just 
crazy. 

969
00:50:24,700 --> 00:50:29,000
Most of the day is not spent on 
literacy or numeracy is spent on

970
00:50:29,000 --> 00:50:29,700
else. 
Yeah. 

971
00:50:30,600 --> 00:50:34,300
Spent on arts and crafts and 
music and history. 

972
00:50:34,400 --> 00:50:37,900
He and his poetry just a bunch 
of stuff that has nothing to do 

973
00:50:37,900 --> 00:50:40,400
with almost any kind of actual 
production. 

974
00:50:40,800 --> 00:50:43,200
So the idea that that was 
important is pretty crazy. 

975
00:50:44,000 --> 00:50:46,100
In my book, I go over a lot more
of the details. 

976
00:50:46,100 --> 00:50:48,900
What was going on? 
We really can see is that when 

977
00:50:48,900 --> 00:50:51,900
people who desperately want to 
find that education is crucial 

978
00:50:51,900 --> 00:50:53,800
for economic development. 
Look at the numbers. 

979
00:50:54,100 --> 00:50:56,000
They struggle to find the 
effect. 

980
00:50:56,300 --> 00:50:59,300
They struggle to find it. 
You know, Haiti desperately 

981
00:50:59,300 --> 00:51:01,500
poor. 
And yet he is now as educated as

982
00:51:01,500 --> 00:51:06,200
France was and like 1960. 
I just going and put it having 

983
00:51:06,200 --> 00:51:10,000
kids sit in chairs and be talked
at is not the path to economic 

984
00:51:10,000 --> 00:51:12,600
progress. 
And you know what is the path 

985
00:51:12,900 --> 00:51:15,000
and really learning by doing is 
what's critical? 

986
00:51:15,700 --> 00:51:18,400
I say again get those 
multinationals in to go and get 

987
00:51:18,400 --> 00:51:21,200
them to bring you up to the 
frontier of the modern world of 

988
00:51:21,200 --> 00:51:23,000
business. 
That's what you really want. 

989
00:51:23,800 --> 00:51:24,900
Yeah. 
Hmm. 

990
00:51:25,100 --> 00:51:27,200
I love how you make that point 
in. 

991
00:51:27,200 --> 00:51:30,100
Just one quick sentence at the 
beginning of the book, it's 

992
00:51:30,100 --> 00:51:32,400
increased production and 
competition. 

993
00:51:32,600 --> 00:51:38,000
Like, I just love The calling 
them dogmatic is, you know, 

994
00:51:38,000 --> 00:51:40,600
belittling. 
But it's just these one sentence

995
00:51:40,600 --> 00:51:43,300
answers that, hey, we've been 
given one in one sentence 

996
00:51:43,300 --> 00:51:45,000
answers from their side for so 
long. 

997
00:51:45,100 --> 00:51:47,900
It's about time. 
We get some push back here. 

998
00:51:48,200 --> 00:51:50,400
My favorite really? 
Like here is one thing that's 

999
00:51:50,400 --> 00:51:52,800
really crazy. 
Look, the any of the minimum 

1000
00:51:52,800 --> 00:51:54,700
wage is important for Rising 
wages. 

1001
00:51:54,900 --> 00:51:57,300
Look, only a very tiny, share, 
the workforce earns, minimum 

1002
00:51:57,300 --> 00:51:59,400
wage. 
You think that lawyers are 

1003
00:51:59,400 --> 00:52:01,600
making more money because 
there's a minimum wage for the 

1004
00:52:01,600 --> 00:52:05,100
janitors in the same building. 
Obviously, the vast majority 

1005
00:52:05,100 --> 00:52:07,100
workers are getting paid way 
above the minimum, so the 

1006
00:52:07,107 --> 00:52:09,000
mineral couldn't possibly matter
for them. 

1007
00:52:09,500 --> 00:52:12,100
I'd it's more complicated saying
is the minimum wage has it 

1008
00:52:12,100 --> 00:52:15,700
helped anyone but the Eichmann 
to give it credit for much of 

1009
00:52:15,700 --> 00:52:17,500
what actually happened is, just 
off the wall. 

1010
00:52:18,800 --> 00:52:23,100
One of my favorite sentences in 
this book page 149. 

1011
00:52:23,400 --> 00:52:27,300
Suppose you could have a 
Princeton Education Without The 

1012
00:52:27,300 --> 00:52:31,200
diploma or a Princeton diploma 
without the education. 

1013
00:52:31,400 --> 00:52:34,300
Which would you choose? 
What are the implications of 

1014
00:52:34,300 --> 00:52:35,700
that question? 
Hmm. 

1015
00:52:36,700 --> 00:52:40,500
Yeah, and I don't remember, they
said it there, but one of the 

1016
00:52:40,700 --> 00:52:43,000
things I often add-on is. 
So if you want, if you even have

1017
00:52:43,000 --> 00:52:46,100
to think about this question, 
you agree with me, because my 

1018
00:52:46,100 --> 00:52:49,500
point is not that the answer is 
clear, but that it is unclear, 

1019
00:52:49,900 --> 00:52:53,500
which means that the effect of 
having the pure effect of having

1020
00:52:53,500 --> 00:52:55,500
the diploma without the 
education, people already think 

1021
00:52:55,500 --> 00:52:58,800
that it's big. 
The point in the background is 

1022
00:52:58,800 --> 00:53:01,300
this a lot of, the reason why 
education pays is not the 

1023
00:53:01,300 --> 00:53:02,600
e-learning useful job skills and
school. 

1024
00:53:02,600 --> 00:53:04,800
It's that you get a stamp on 
your forehead or what 

1025
00:53:04,800 --> 00:53:08,600
economists, call a signal. 
This doesn't matter very much 

1026
00:53:08,600 --> 00:53:10,900
from the point of view of the 
individual workers like well if 

1027
00:53:10,900 --> 00:53:15,000
I want to get a good job, who 
cares, whether I learn skills in

1028
00:53:15,000 --> 00:53:17,000
school or was I just get the 
stamp on my forehead, which 

1029
00:53:17,000 --> 00:53:19,700
allows me to get the job. 
But from the view of society, it

1030
00:53:19,700 --> 00:53:23,200
matters immensely. 
A society can prosper if the 

1031
00:53:23,207 --> 00:53:26,400
work force becomes more scaled 
Society, cannot Prosper because 

1032
00:53:26,400 --> 00:53:27,900
the work force becomes more 
stamped. 

1033
00:53:28,500 --> 00:53:31,300
If everybody has more stamps, 
the result is this credential 

1034
00:53:31,300 --> 00:53:33,900
inflation where you need more 
stamps, even to not get your 

1035
00:53:33,900 --> 00:53:36,100
application thrown in the trash 
for a better job. 

1036
00:53:37,600 --> 00:53:40,300
I like that point about 
credential inflation because it 

1037
00:53:40,300 --> 00:53:44,200
explains the downside of 
something like subsidy. 

1038
00:53:44,200 --> 00:53:48,800
So you have two quotes here, 
insofar as the signaling model 

1039
00:53:48,800 --> 00:53:51,100
is right. 
However, government support for 

1040
00:53:51,100 --> 00:53:56,500
college impoverished Society by 
sparking a credential list arms 

1041
00:53:56,700 --> 00:53:58,600
race. 
You then continue on the next 

1042
00:53:58,600 --> 00:54:01,100
page. 
If one laborer gets more 

1043
00:54:01,100 --> 00:54:05,200
irrelevant education, he outruns
the competition but if the whole

1044
00:54:05,200 --> 00:54:08,200
labor force gets more 
irrelevant, And education 

1045
00:54:08,300 --> 00:54:11,800
societies time and money goes 
down the drain. 

1046
00:54:12,000 --> 00:54:15,900
What can credential inflation? 
Teach us about the subsidies. 

1047
00:54:16,900 --> 00:54:20,300
Yeah, well subsidies are a great
way to get more credentials 

1048
00:54:20,300 --> 00:54:25,000
latian, you just to get an idea 
about how bad this is in 1945. 

1049
00:54:25,000 --> 00:54:28,200
The average American over 25 had
about 40 less years of 

1050
00:54:28,200 --> 00:54:31,000
education. 
How many for you for Less years,

1051
00:54:31,900 --> 00:54:34,200
right? 
So basically right here with a 

1052
00:54:34,207 --> 00:54:36,700
high school degree back then was
like was about what a college 

1053
00:54:36,700 --> 00:54:40,000
degree is. 
Now it's set you apart not 

1054
00:54:40,000 --> 00:54:42,900
enormously apart but it put you 
in about the top quarter of the 

1055
00:54:42,900 --> 00:54:46,100
population, right? 
In terms of Education which 

1056
00:54:46,100 --> 00:54:49,200
meant that many managers, many 
people with high status jobs, 

1057
00:54:49,200 --> 00:54:50,600
just at high school degrees in 
those days. 

1058
00:54:50,600 --> 00:54:55,600
Those all the you needed when 
people have looked at individual

1059
00:54:55,600 --> 00:54:58,600
occupations, what they found and
get a lot of this work actually 

1060
00:54:58,600 --> 00:55:00,800
comes from quite left-wing 
sociologists who are just 

1061
00:55:00,800 --> 00:55:03,500
empirical. 
So once again, you don't do not 

1062
00:55:03,500 --> 00:55:05,300
be quick to dismiss the 
empirical work for understanding

1063
00:55:05,300 --> 00:55:07,000
the world. 
It's not going to change policy 

1064
00:55:07,000 --> 00:55:09,200
and Shelly. 
But in terms of improving, 

1065
00:55:09,200 --> 00:55:13,000
understanding useful, anyway, 
what they found is the large 

1066
00:55:13,000 --> 00:55:16,500
majorities rise in education has
not been reflected in people, 

1067
00:55:16,500 --> 00:55:19,700
doing higher, tech jobs, or 
space-age, type jobs, or 

1068
00:55:19,700 --> 00:55:21,400
information, or Information, Age
type jobs. 

1069
00:55:21,400 --> 00:55:24,000
A little that the main thing 
that's happened though is that 

1070
00:55:24,000 --> 00:55:27,900
jobs that have existed since 
1945 and again, probably since 

1071
00:55:27,900 --> 00:55:31,800
the year 45 BC or just done by 
more Highly Educated workers, 

1072
00:55:32,100 --> 00:55:35,000
it's now very common for waiters
nice, restaurants, have college 

1073
00:55:35,000 --> 00:55:39,300
degrees for Uber drivers to have
Judge agrees for cashiers to 

1074
00:55:39,300 --> 00:55:41,900
have college degrees. 
This would have been almost 

1075
00:55:41,900 --> 00:55:45,600
unheard of in 1945. 
But when there's a lot more 

1076
00:55:45,600 --> 00:55:48,100
people have the degrees with the
stamps in the forehead, this 

1077
00:55:48,100 --> 00:55:51,300
raises, the competition means 
that employers can afford to be 

1078
00:55:51,300 --> 00:55:52,800
picky. 
And say, why should I go and 

1079
00:55:52,800 --> 00:55:54,600
interview someone to work in my 
fancy restaurant? 

1080
00:55:54,600 --> 00:55:56,200
Who hasn't even got a college 
degree? 

1081
00:55:58,300 --> 00:56:04,500
So, if we look at the downsides 
of subsidies, if I run a class 

1082
00:56:04,800 --> 00:56:09,300
and instead of having, you know,
people either by their way, in 

1083
00:56:09,300 --> 00:56:15,400
or getting, any means through a 
voluntary method, if the state 

1084
00:56:15,400 --> 00:56:20,100
then subsidizes free college 
like the military's free 

1085
00:56:20,100 --> 00:56:24,800
government pays for it. 
It now I have a ton of students 

1086
00:56:24,900 --> 00:56:26,700
who otherwise wouldn't have been
there. 

1087
00:56:26,800 --> 00:56:28,500
Good. 
You might be giving people 

1088
00:56:28,500 --> 00:56:32,000
opportunities. 
But the downside I'm thinking, 

1089
00:56:32,400 --> 00:56:35,700
are these people going to be as 
passionate? 

1090
00:56:35,900 --> 00:56:40,500
I'm getting a lot of people, so 
I might have to decrease the 

1091
00:56:40,500 --> 00:56:43,800
criteria for what an a would 
give someone. 

1092
00:56:43,900 --> 00:56:45,800
So I have to lower the 
credentials. 

1093
00:56:46,000 --> 00:56:49,400
So now everyone is getting a 
worse off education so I could 

1094
00:56:49,400 --> 00:56:51,200
find a bigger common 
denominator. 

1095
00:56:51,400 --> 00:56:52,800
I mean, how many professors are 
going to say? 

1096
00:56:52,800 --> 00:56:56,100
Well, the I'm not changing the 
standards, everyone in the class

1097
00:56:56,100 --> 00:56:58,600
has failed. 
Are their professors, that will 

1098
00:56:58,600 --> 00:57:01,400
do that, just to prove a point, 
maybe in math or physics. 

1099
00:57:01,400 --> 00:57:04,900
There's a few people like that. 
That's sort of the last Bastion 

1100
00:57:04,900 --> 00:57:06,300
of absolute standards even 
there. 

1101
00:57:06,300 --> 00:57:09,700
I don't really believe it except
for an occasional true. 

1102
00:57:09,700 --> 00:57:14,300
Eccentric mean, I do think that 
the definitely the typical 

1103
00:57:14,300 --> 00:57:17,800
Professor is as much as much 
better off because of this 

1104
00:57:17,800 --> 00:57:19,500
regime, because it means they 
have a job. 

1105
00:57:19,500 --> 00:57:21,500
And in the end, if it weren't 
without the subsidies there, 

1106
00:57:21,500 --> 00:57:23,500
just what those positions 
wouldn't exist and then they 

1107
00:57:23,500 --> 00:57:26,500
have to have a real job. 
Well, I don't want a real job. 

1108
00:57:28,400 --> 00:57:29,900
You know, like how many real 
jobs are there? 

1109
00:57:29,900 --> 00:57:32,600
I could just go and take an hour
out of my afternoon to go and 

1110
00:57:32,600 --> 00:57:35,100
talk to you about this book, 
right? 

1111
00:57:35,100 --> 00:57:37,100
How many jobs are there where I 
could get paid to write this 

1112
00:57:37,100 --> 00:57:39,800
book? 
Very few but because of all the 

1113
00:57:39,800 --> 00:57:41,600
subsidies the system is swimming
in money. 

1114
00:57:41,600 --> 00:57:44,500
And then these opportunities 
exist, important to remember. 

1115
00:57:44,500 --> 00:57:46,200
There's a big distinction what's
good for buying Captain? 

1116
00:57:46,200 --> 00:57:49,000
What's good for the world? 
I don't think that public. 

1117
00:57:49,000 --> 00:57:51,400
Subsidization of higher 
education is good policy. 

1118
00:57:51,400 --> 00:57:54,100
It's terrible policy but I'm 
honest enough to say it's made 

1119
00:57:54,100 --> 00:57:56,800
my life a lot better and maybe I
would have been one of the lucky

1120
00:57:56,800 --> 00:57:58,400
few. 
You who would be at Harbor or 

1121
00:57:58,400 --> 00:58:02,200
something, but probably not and 
then I'll be stuck at have to do

1122
00:58:02,200 --> 00:58:06,200
this as an invocation rather 
than as my calling. 

1123
00:58:07,500 --> 00:58:13,300
And is there anything to the 
concept of changing who the 

1124
00:58:13,300 --> 00:58:18,400
producer is accountable to? 
So, if I go to the restaurant, 

1125
00:58:18,500 --> 00:58:21,900
hey, this food is disgusting. 
Hey, the waiter was rude. 

1126
00:58:22,100 --> 00:58:26,000
I'm very likely to get a 
positive response from any 

1127
00:58:26,200 --> 00:58:29,300
restaurant that I've been to 
with, I mean, microscopic 

1128
00:58:29,300 --> 00:58:33,100
exceptions because I the 
customer have the leverage but 

1129
00:58:33,100 --> 00:58:37,200
if their money instead came from
the state, then I wouldn't have 

1130
00:58:37,300 --> 00:58:41,200
Leverage, they'd say well in 
four years vote for a different 

1131
00:58:41,200 --> 00:58:44,900
guy who's going to appoint 
someone restaurant commissioner.

1132
00:58:45,100 --> 00:58:49,100
So they could then improve its. 
So it's almost like what makes 

1133
00:58:49,100 --> 00:58:51,600
this so bad subsidizing things 
decreases. 

1134
00:58:51,600 --> 00:58:54,800
The quality is you're increasing
the amount of distance between 

1135
00:58:54,800 --> 00:58:57,300
the producer and the consumer. 
Is there anything? 

1136
00:58:57,300 --> 00:58:59,700
Here are my just taking on 
things that I already don't. 

1137
00:58:59,700 --> 00:59:02,400
Like, there's definitely 
something there but it's more 

1138
00:59:02,400 --> 00:59:05,100
but it's actually more 
complicated than all that. 

1139
00:59:05,400 --> 00:59:07,500
Here's the thing. 
If it's the government, Really 

1140
00:59:07,500 --> 00:59:09,000
just hands money to the 
producers. 

1141
00:59:09,000 --> 00:59:13,400
Then your story is great if the 
government hands money to the 

1142
00:59:13,400 --> 00:59:16,400
consumer and then the consumer 
can spend it the way they want. 

1143
00:59:16,800 --> 00:59:20,500
Then it's less clear, why? 
The these producers would be so 

1144
00:59:20,500 --> 00:59:23,900
unresponsive because they still 
need to get the customer to 

1145
00:59:23,900 --> 00:59:26,200
spend their money there in order
to get it right? 

1146
00:59:26,200 --> 00:59:29,800
So for example, the alike with 
food stamps, the way the food 

1147
00:59:29,800 --> 00:59:32,100
stamps work is you give them to 
a customer who then takes them 

1148
00:59:32,100 --> 00:59:33,700
to store. 
The government is the ultimate 

1149
00:59:33,700 --> 00:59:36,700
person that pays for it, the 
ultimate Oreo the ultimate 

1150
00:59:36,700 --> 00:59:38,400
payer. 
And yet if the customer is 

1151
00:59:38,400 --> 00:59:40,300
unhappy, with the way the 
grocery store treats them, they 

1152
00:59:40,300 --> 00:59:42,800
can still complain or take that,
take the food stamp someplace 

1153
00:59:42,800 --> 00:59:44,900
else. 
But then you go and take a look 

1154
00:59:44,900 --> 00:59:48,000
at college and you see hey, like
even private schools actually 

1155
00:59:48,000 --> 00:59:50,900
seem to be highly unresponsive 
to what customers want. 

1156
00:59:51,200 --> 00:59:54,800
Let's just say that my kids 
college. 

1157
00:59:55,900 --> 00:59:59,500
They recently denied my request 
to be able to stay in my son's 

1158
00:59:59,500 --> 01:00:01,900
room overnight. 
They previously granted it but 

1159
01:00:01,900 --> 01:00:04,500
this time they said no and wise 
as well we just decided not to 

1160
01:00:04,500 --> 01:00:06,400
Grant any rain, any of these, 
any more for the rest of the 

1161
01:00:06,400 --> 01:00:10,000
year. 
Why like why are you treating a 

1162
01:00:10,008 --> 01:00:13,100
so shabbily? 
Like, what's the problem? 

1163
01:00:13,400 --> 01:00:15,800
Like my dad wants to stay with 
us. 

1164
01:00:15,900 --> 01:00:18,700
Really like, we're two board. 
Brothers were roommates. 

1165
01:00:18,700 --> 01:00:22,400
We want him here and yet you're 
just saying, no and we pay to be

1166
01:00:22,400 --> 01:00:23,700
here. 
We pay for the storm. 

1167
01:00:23,700 --> 01:00:25,400
Why are you? 
Why do you act in this horrible 

1168
01:00:25,400 --> 01:00:26,500
way? 
Right? 

1169
01:00:26,500 --> 01:00:29,300
And with and what I can say 
honestly, is that what higher 

1170
01:00:29,300 --> 01:00:32,800
education most of the CEOs, 
least a lot of the subsidy they 

1171
01:00:32,800 --> 01:00:34,400
get? 
For example from student loans, 

1172
01:00:34,700 --> 01:00:36,900
they do come from a student who 
could take the student loans to 

1173
01:00:36,900 --> 01:00:37,800
go someplace. 
Else. 

1174
01:00:38,500 --> 01:00:42,800
And yet, they still are 
stubbornly pigheaded, Lee 

1175
01:00:42,800 --> 01:00:47,800
horribly unresponsive to what 
students actually want and 

1176
01:00:47,800 --> 01:00:52,100
what's going on. 
See part of it is that they have

1177
01:00:52,100 --> 01:00:54,400
a lot of these schools have 
giant endowments such that they 

1178
01:00:54,400 --> 01:00:57,200
could just, they could lose a 
ton of a ton of customers and 

1179
01:00:57,200 --> 01:00:59,400
everything would be fine for it 
because they could, they could 

1180
01:00:59,400 --> 01:01:01,400
basically stopped charging 
tuition and still never got a 

1181
01:01:01,408 --> 01:01:03,400
business. 
Just live off the interest, the 

1182
01:01:03,400 --> 01:01:05,400
richest schools? 
Are that rich, right? 

1183
01:01:05,400 --> 01:01:07,200
So partly, they've just been 
given, too many. 

1184
01:01:07,400 --> 01:01:12,300
Donations, that allow them to be
oblivious or rude or just very 

1185
01:01:12,300 --> 01:01:15,100
rude and insulting to the people
that are officially their 

1186
01:01:15,100 --> 01:01:18,200
customers. 
So there's that think another 

1187
01:01:18,200 --> 01:01:20,700
part of what's going on, 
honestly, is that the main 

1188
01:01:20,700 --> 01:01:23,500
customers are children and 
children are very confused about

1189
01:01:23,500 --> 01:01:27,100
what's going on in the world and
you are not good advocates for 

1190
01:01:27,100 --> 01:01:29,700
their own views. 
So there today, tend to actually

1191
01:01:29,700 --> 01:01:32,200
just accept whatever they're 
given, this is the way that 

1192
01:01:32,200 --> 01:01:35,300
children are so yeah. 
I mean, I don't think that you 

1193
01:01:35,308 --> 01:01:37,200
can really understand 
pathologies of hi. 

1194
01:01:37,400 --> 01:01:41,000
Education, without realizing 
that, the main customers our 

1195
01:01:41,000 --> 01:01:42,600
children. 
Right? 

1196
01:01:43,100 --> 01:01:45,200
And similarly, I don't think you
understand the pathologies of 

1197
01:01:45,200 --> 01:01:48,800
case 12 without realizing the 
main customers are not students 

1198
01:01:48,800 --> 01:01:51,400
that are there are there, the 
parents and the parents on the 

1199
01:01:51,408 --> 01:01:53,600
one hand, if you're running a 
private school, the only you 

1200
01:01:53,600 --> 01:01:56,400
need to be very concerned about 
some kinds of things, especially

1201
01:01:56,400 --> 01:01:59,000
stuff that upsets mom's. 
But on the other hand, there's a

1202
01:01:59,008 --> 01:02:01,300
lot of other stuff where you can
do whatever you want, because 

1203
01:02:01,300 --> 01:02:05,500
Mom's, you don't care. 
And the kids are not the ones 

1204
01:02:05,500 --> 01:02:09,200
that pay the tuition. 
The book is labor. 

1205
01:02:09,200 --> 01:02:11,400
Econ vs. 
The World essays on the world's 

1206
01:02:11,400 --> 01:02:14,500
greatest Market link will be in 
the description below. 

1207
01:02:14,700 --> 01:02:16,500
Dr. Kaplan always a present 
pleasure. 

1208
01:02:16,500 --> 01:02:18,400
Thank you. 
Thank you very much Keith. 

1209
01:02:18,400 --> 01:02:21,000
This was very, very this was 
great fun. 

1210
01:02:21,600 --> 01:02:23,800
You see you thank me for my 
patients but no patience is 

1211
01:02:23,800 --> 01:02:25,300
required because this is a 
thrill. 

1212
01:02:25,700 --> 01:02:26,600
Thanks a lot Keith,