1 00:00:00,800 --> 00:00:04,900 In the free market, no one can get a penny from you, unless you 2 00:00:04,900 --> 00:00:09,200 voluntarily, give it to them in exchange for a product or 3 00:00:09,400 --> 00:00:11,900 service. The state takes any amount for 4 00:00:11,900 --> 00:00:15,400 any reason and Promises to cage or murder. 5 00:00:15,700 --> 00:00:17,600 Those who resist. Welcome to keep night. 6 00:00:17,600 --> 00:00:20,400 Don't tread on anyone. I want to get into the different 7 00:00:20,400 --> 00:00:24,800 mindset that socialists and Libertarians have with regard to 8 00:00:25,100 --> 00:00:29,700 the economy in general here. I say socialism equals, give us 9 00:00:29,700 --> 00:00:32,900 your property. And Obey us or will murder you. 10 00:00:32,900 --> 00:00:35,000 Another words. If you don't want to chip in, 11 00:00:35,000 --> 00:00:38,300 for the Warfare State, the welfare, state state education. 12 00:00:38,600 --> 00:00:42,200 Well, they don't just allow you to opt out. 13 00:00:42,200 --> 00:00:45,200 They don't say I'm so sorry. We're not meeting your demand. 14 00:00:45,200 --> 00:00:48,500 What else can we do to change? Maybe you'll chip in next year? 15 00:00:48,600 --> 00:00:50,400 How can we increase quality? What else? 16 00:00:50,400 --> 00:00:53,600 Can we do? We're so sorry for providing an 17 00:00:53,600 --> 00:00:56,600 inconvenience service. They say, well, we'll put you in 18 00:00:56,600 --> 00:00:59,600 a cage and if you resist, we will have you shot. 19 00:00:59,600 --> 00:01:01,900 So that is the Out of what I'm getting at. 20 00:01:02,000 --> 00:01:05,000 So Godfather, says, capitalism equals. 21 00:01:05,000 --> 00:01:07,700 Let's turn everything into a commodity for profit. 22 00:01:08,300 --> 00:01:12,000 Not everything people have conversations, people have kids, 23 00:01:12,000 --> 00:01:15,600 people have meetings people, volunteer people engage in 24 00:01:15,600 --> 00:01:18,400 charity. So let's it's not totally 25 00:01:18,400 --> 00:01:23,900 exaggerated regardless of who suffers profit greater than 26 00:01:23,900 --> 00:01:28,700 human life or Health Care. He's assuming that these things 27 00:01:29,000 --> 00:01:33,800 can in no way be Complimentary, there's a lot of ways that 28 00:01:33,900 --> 00:01:37,800 private greed can be harnessed in such a way that it serves the 29 00:01:37,800 --> 00:01:39,500 public good. This is generally, what the 30 00:01:39,500 --> 00:01:42,400 invisible hand is. So if I just look at my desk, I 31 00:01:42,400 --> 00:01:48,000 see a book, a computer, a microphone, and a router, and a 32 00:01:48,008 --> 00:01:51,100 printer, and some pictures and a ceiling fan. 33 00:01:51,400 --> 00:01:56,700 Well, this was not exactly made by the people because they knew 34 00:01:56,900 --> 00:01:59,300 Keith Knight. Don't try it on anyone needed to 35 00:01:59,300 --> 00:02:01,600 make a show. They did it for themselves in 36 00:02:01,600 --> 00:02:05,400 hopes, they could out-compete other people and make money for 37 00:02:05,500 --> 00:02:07,700 themselves. There's nothing wrong at all 38 00:02:07,700 --> 00:02:09,699 with this. In the same way, you know, 39 00:02:09,699 --> 00:02:12,800 people pursuing their own economic interest is no 40 00:02:12,800 --> 00:02:15,800 different than Godfather only tweeting. 41 00:02:15,800 --> 00:02:18,600 What he wants to tweet. Shouldn't we put this up to a 42 00:02:18,600 --> 00:02:20,600 vote about what he should tweet about? 43 00:02:20,600 --> 00:02:22,900 No, it's okay. That people sort of do their own 44 00:02:22,900 --> 00:02:26,300 thing in the market place in the division of labor. 45 00:02:26,600 --> 00:02:30,100 So I said the supermarket offers me food and drinks at a low 46 00:02:30,100 --> 00:02:34,600 price. For profit also Profit just 47 00:02:34,600 --> 00:02:37,300 means when benefits exceed costs. 48 00:02:37,300 --> 00:02:40,600 So you could profit from time spent with family, you could 49 00:02:40,600 --> 00:02:43,500 profit. When you spend 50 cents to go to 50 00:02:43,500 --> 00:02:46,700 work on gasoline and you make a hundred dollars at work that 51 00:02:46,700 --> 00:02:49,600 day. Well, you've profited $99.50. 52 00:02:49,600 --> 00:02:55,200 There's even if you have, you know, anarcho-syndicalism you 53 00:02:55,200 --> 00:02:58,000 have profit. If you have natural law, 54 00:02:58,100 --> 00:02:59,900 resource-based economy, no money. 55 00:03:00,400 --> 00:03:03,200 People will still profit. It's impossible to get rid of. 56 00:03:03,900 --> 00:03:08,800 Let's compare that to what you are willing to offer me and give 57 00:03:08,800 --> 00:03:11,600 me and see if Prophet benefits me or left us. 58 00:03:11,600 --> 00:03:13,600 Wanting to feel good. Gets me fed. 59 00:03:13,700 --> 00:03:16,200 Please list everything you offer me for free. 60 00:03:16,500 --> 00:03:18,800 Thanks in advance. He says, that's not how this 61 00:03:18,800 --> 00:03:23,800 works, buddy, which I knew, but he's not obviously grasping the 62 00:03:24,700 --> 00:03:26,900 implications. He's saying, look at this 63 00:03:26,900 --> 00:03:32,200 terrible thing and I'm saying the things not that It increased 64 00:03:32,200 --> 00:03:35,700 gives millions of people access to products and services at a 65 00:03:35,700 --> 00:03:39,300 low price quality increases prices tend to go down so long 66 00:03:39,300 --> 00:03:40,700 as there's not State interference. 67 00:03:41,000 --> 00:03:45,800 If you look at TVs or microphones or computers or 68 00:03:45,800 --> 00:03:49,900 books prices tend to go down but except in things like, you know, 69 00:03:49,900 --> 00:03:54,900 Healthcare housing or college, where the state heavily 70 00:03:54,900 --> 00:03:58,500 interferes because there's less competition less Innovation and 71 00:03:58,600 --> 00:04:01,700 no voluntary funding. That's not how this works, 72 00:04:01,700 --> 00:04:03,900 buddy. I said in summary profit Seekers 73 00:04:03,900 --> 00:04:07,100 make my life better and you are a parasite advocating theft. 74 00:04:07,100 --> 00:04:09,100 AKA taxation. Take care. 75 00:04:09,400 --> 00:04:13,800 He says LMFAO might want to educate yourself on political 76 00:04:13,800 --> 00:04:17,800 philosophy. You seem completely clueless. 77 00:04:17,800 --> 00:04:21,399 Allah at calling taxation theft, you're a nincompoop. 78 00:04:21,800 --> 00:04:24,700 I said, oh my Pat. I thought it was theft Now. 79 00:04:24,700 --> 00:04:27,500 Give me 20 percent of your money, or I'll have my employees 80 00:04:27,500 --> 00:04:30,500 cage you because surely I mean if it's not theft, There's 81 00:04:30,500 --> 00:04:33,100 nothing wrong with it. Well, then I can do it. 82 00:04:33,200 --> 00:04:34,500 You said, there's nothing wrong with it. 83 00:04:34,500 --> 00:04:37,300 So I'm going to do it and Amazon can do it. 84 00:04:37,300 --> 00:04:39,800 And the Koch, brothers can do it and Hobby Lobby. 85 00:04:39,800 --> 00:04:42,300 Can just go around issuing taxes. 86 00:04:42,500 --> 00:04:48,000 Nothing wrong with it. He says, he says that would be a 87 00:04:48,000 --> 00:04:50,100 bargain. Considering the government, 88 00:04:50,100 --> 00:04:52,600 takes 40 percent of my income and taxes. 89 00:04:53,300 --> 00:04:55,300 Yes. It is actually the same guy. 90 00:04:55,500 --> 00:05:00,200 And the, so let's let's, let's get on to the article. 91 00:05:00,600 --> 00:05:04,900 Social desirability bias versus tourism by Bryan Caplan. 92 00:05:05,000 --> 00:05:10,100 Social desirability bias is defined as a type of response 93 00:05:10,100 --> 00:05:13,200 bias. That is the tendency of survey 94 00:05:13,200 --> 00:05:17,500 respondents to answer questions in a manner that will be viewed 95 00:05:17,500 --> 00:05:23,400 favorably by others. In the Yucatan. 96 00:05:23,400 --> 00:05:26,500 We stayed at several all-inclusive resorts. 97 00:05:26,800 --> 00:05:29,500 These Resorts were a good fit for my family when you're 98 00:05:29,500 --> 00:05:32,600 traveling in a Third world country with four kids during a 99 00:05:32,600 --> 00:05:36,600 pandemic, you want to convenient supply of abundant and tasty 100 00:05:36,600 --> 00:05:40,500 food and enough, variety to please each and every picky 101 00:05:40,500 --> 00:05:43,700 eater me included, since portions were smallish. 102 00:05:43,700 --> 00:05:48,100 We routinely ordered 12 to 15 dinners, for dinner. 103 00:05:48,200 --> 00:05:52,000 All that zero marginal cost, at least in Mexican Resorts, tips 104 00:05:52,000 --> 00:05:55,600 are appreciated, but not expected economically. 105 00:05:55,600 --> 00:05:57,200 Speaking. There's a straightforward. 106 00:05:57,300 --> 00:06:00,200 When when case for these Mexican resorts. 107 00:06:00,500 --> 00:06:02,700 Not only do they make the Taurus happier. 108 00:06:02,900 --> 00:06:06,100 They make the Mexican people happier by providing them with 109 00:06:06,100 --> 00:06:09,800 better opportunities than they have elsewhere in the Mexican 110 00:06:09,800 --> 00:06:14,200 economy. If you reconsider this verdict 111 00:06:14,400 --> 00:06:18,200 through the distorted lens of social desirability bias, 112 00:06:18,500 --> 00:06:21,900 though, a radically different picture appears before your 113 00:06:21,900 --> 00:06:24,100 eyes. Once you forget economics, you 114 00:06:24,100 --> 00:06:27,800 could easily describe the resort experience in the following 115 00:06:27,800 --> 00:06:31,700 sorted way, a bunch of rich. Under show up in a poor country 116 00:06:31,700 --> 00:06:36,500 and take advantage of the locals desperate, poverty, the 117 00:06:36,500 --> 00:06:41,000 foreigners, relax in the Sun and stuff themselves on fried fish 118 00:06:41,100 --> 00:06:45,800 and casket an M&M while the poor Mexicans. 119 00:06:46,100 --> 00:06:50,000 Wait on them hand and foot the Mexicans Toya, long hours for 120 00:06:50,100 --> 00:06:54,800 low pay while a rich foreigners cavalierly organ, Margarita 121 00:06:55,000 --> 00:06:58,100 after Margarita, tequila after tequila, the rich foreigners, 122 00:06:58,100 --> 00:07:00,600 don't even bother to pick up after their Fat. 123 00:07:00,600 --> 00:07:04,800 Lazy selves, everyday poor women of color, clean their rooms and 124 00:07:04,800 --> 00:07:07,000 make their beds. Most of the foreigners treat the 125 00:07:07,000 --> 00:07:10,500 workers like inferiors with a typical attitude somewhere 126 00:07:10,500 --> 00:07:15,300 between demanding and rude yet. No matter how rude, the gets 127 00:07:15,300 --> 00:07:18,800 maybe they're impoverished workers are required to kiss up 128 00:07:18,800 --> 00:07:20,900 to their guess, expressing warmest. 129 00:07:20,900 --> 00:07:24,100 Regards for foreigners who have never spent a single day in 130 00:07:24,100 --> 00:07:26,500 poverty. Is in the job description. 131 00:07:27,000 --> 00:07:33,400 And at the end of each meal, the workers can Even count on a tip. 132 00:07:33,700 --> 00:07:38,800 Now, suppose Mexican law, prohibited such Resorts and you 133 00:07:38,800 --> 00:07:43,400 wanted to end the ban. Just imagine how easily The 134 00:07:43,400 --> 00:07:46,600 Defenders of the status quo could demagogue. 135 00:07:47,800 --> 00:07:52,600 Demagogue is defined as a leader who obtains Power by means of 136 00:07:52,600 --> 00:07:58,000 impassioned appeals to the emotions and prejudices of the 137 00:07:58,000 --> 00:08:01,000 populace. These Resorts allow Rich 138 00:08:01,000 --> 00:08:06,900 foreigners to exploit poor Mexicans back to this example. 139 00:08:07,400 --> 00:08:12,700 Yes, someone is profiting and benefiting from Surplus value. 140 00:08:13,000 --> 00:08:16,500 So what I'm benefiting because I get something in exchange, 141 00:08:16,600 --> 00:08:19,900 whether its food, Drink a job a product or service. 142 00:08:20,200 --> 00:08:22,200 It's nothing terrible about what's going on here. 143 00:08:22,200 --> 00:08:25,500 It's a another win-win situation. 144 00:08:25,900 --> 00:08:29,200 These Resorts allow Rich foreigners to exploit poor 145 00:08:29,500 --> 00:08:31,700 Mexicans. They are an affront to decency 146 00:08:31,700 --> 00:08:34,200 to dignity. Why should we let it rich 147 00:08:34,200 --> 00:08:37,799 foreigners Gorge themselves? While innocent Mexican children. 148 00:08:37,799 --> 00:08:40,200 Go to bed. Hungry, Mexicans deserve, good 149 00:08:40,200 --> 00:08:45,300 jobs, not this basura. So in other words, just as in 150 00:08:45,300 --> 00:08:48,600 the case of hey, yeah, they're probably a fitting but they make 151 00:08:48,600 --> 00:08:52,000 my life better off. And you sir are offering me 152 00:08:52,000 --> 00:08:54,600 nothing. Either offer me, nothing but 153 00:08:54,600 --> 00:09:00,100 pronouns and by oh God, no just BLM, you sir offer me, nothing. 154 00:09:00,400 --> 00:09:04,100 So you are worse than them. What you can do is offer me 155 00:09:04,100 --> 00:09:07,400 something in exchange since you're very passionate about it, 156 00:09:07,500 --> 00:09:12,400 but their response is to either Outlaw jobs that are low paying 157 00:09:12,600 --> 00:09:16,500 or in quote, bad conditions, but if they don't have any other 158 00:09:16,500 --> 00:09:20,600 opportunity for you, Go to well then they're just restricting 159 00:09:20,600 --> 00:09:22,200 your right to engage in something. 160 00:09:22,500 --> 00:09:26,700 Voluntarily. The result of this demagoguery 161 00:09:26,700 --> 00:09:31,000 naturally would be to prevent Mexicans from bettering their 162 00:09:31,000 --> 00:09:32,200 condition. Bettering. 163 00:09:32,300 --> 00:09:34,700 What a great concept. It captures the idea of 164 00:09:34,700 --> 00:09:39,300 improvement without falsely promising, that the end result 165 00:09:39,400 --> 00:09:44,000 will be good in absolute terms. The key economic Point, Banning 166 00:09:44,000 --> 00:09:47,300 Resorts saves. No Mexican children from Hunger. 167 00:09:47,500 --> 00:09:51,200 Banning Resorts would rather cause Mexican children to be 168 00:09:51,200 --> 00:09:56,300 hungry by depriving their parents of the Jobs, they can 169 00:09:56,600 --> 00:10:00,000 get. So not purchasing Third World 170 00:10:00,000 --> 00:10:04,000 products. Doesn't mean those people in the 171 00:10:04,000 --> 00:10:06,800 third world working. These terrible jobs are now 172 00:10:06,800 --> 00:10:09,500 Rich. It means they are worse off than 173 00:10:09,500 --> 00:10:11,200 they otherwise. Would, they usually either go 174 00:10:11,200 --> 00:10:14,800 into prostitution or die of starvation? 175 00:10:15,400 --> 00:10:19,200 The reason why Mexicans toil in all-inclusive resorts despite 176 00:10:19,200 --> 00:10:23,200 the obvious drawbacks is that there are other prospects are 177 00:10:23,200 --> 00:10:25,000 worse often. Much worse. 178 00:10:25,000 --> 00:10:27,900 Just talk to the guy, desperately peddling, straw, 179 00:10:27,900 --> 00:10:32,700 hats on the beach at this point. It's tempting to enthuse. 180 00:10:33,000 --> 00:10:35,100 Let's just have a dialogue about this. 181 00:10:36,000 --> 00:10:38,700 The demagogues have their view Economist have theirs. 182 00:10:38,900 --> 00:10:42,000 Let's try to reach a consensus to this. 183 00:10:42,000 --> 00:10:44,200 I once again, say dialogue, we don't need no. 184 00:10:44,200 --> 00:10:47,000 Stinking dialogue. Dialogue hand, social 185 00:10:47,000 --> 00:10:51,300 desirability bias, a massive home field advantage. 186 00:10:52,100 --> 00:10:57,900 Far better to let observe. Choices Prevail over mere words. 187 00:10:58,100 --> 00:11:01,200 Keyword is choices, were still respecting the self-ownership 188 00:11:01,200 --> 00:11:05,000 principle of parties involved. Still. 189 00:11:05,200 --> 00:11:09,800 How can Rich foreign tourists be happy at their resorts to truth. 190 00:11:09,800 --> 00:11:12,900 Be told the vast majority are like almost all human beings 191 00:11:12,900 --> 00:11:16,500 selfish and oblivious. This I don't think is anything 192 00:11:16,500 --> 00:11:20,100 terrible. Adam Smith always said, in a 193 00:11:20,108 --> 00:11:24,100 theory of moral sentiments, four million people across the 194 00:11:24,100 --> 00:11:26,400 planet. Siddharth died by tsunami. 195 00:11:26,900 --> 00:11:31,700 You might be sad a little bit. But you you'd go on after, you 196 00:11:31,700 --> 00:11:35,200 know, of a couple hours. Maybe a day or two, but if you 197 00:11:35,200 --> 00:11:39,700 lost your pinky finger and it was cut off, that would be such 198 00:11:39,700 --> 00:11:42,500 an inconvenience. You'd constantly mourn over it 199 00:11:42,600 --> 00:11:45,300 all the time. And I don't know if that's 200 00:11:45,300 --> 00:11:48,700 necessarily being selfish and oblivious and uncaring to have 201 00:11:49,000 --> 00:11:53,700 you know, some sort of self-interest Kaplan continues 202 00:11:54,000 --> 00:11:58,600 and that's Largely for the best. If the tourists consciences pain 203 00:11:58,600 --> 00:12:01,500 to them, their main reaction would be to stay home. 204 00:12:01,500 --> 00:12:05,000 Not to come and tip generously. What about me? 205 00:12:05,300 --> 00:12:09,500 I may be just as selfish as the rest of the torus Cuts in social 206 00:12:09,500 --> 00:12:10,600 sciences. My life. 207 00:12:10,600 --> 00:12:15,600 I can't be oblivious to any social world around me. 208 00:12:15,700 --> 00:12:17,300 Would keeps me feeling comfortable. 209 00:12:17,300 --> 00:12:21,300 Honestly is the faces of the workers even when they're off 210 00:12:21,300 --> 00:12:23,300 the job. Most of them seem quite content. 211 00:12:23,400 --> 00:12:25,100 Well, I wouldn't want to Have their jobs. 212 00:12:25,100 --> 00:12:30,300 The magic of hedonic adaption allows even humble Resort. 213 00:12:30,300 --> 00:12:34,800 Employees to feel pretty good about their lives. 214 00:12:34,800 --> 00:12:36,800 That's not just psychological theory. 215 00:12:37,000 --> 00:12:40,200 It's observed fact. When he's talking about here is 216 00:12:41,200 --> 00:12:44,900 hedonic adaption is the observed tendency of humans to quickly 217 00:12:44,900 --> 00:12:49,400 return to a relatively stable level of Happiness, despite 218 00:12:49,400 --> 00:12:53,500 major positive or negative events or Life Changes. 219 00:12:53,600 --> 00:12:56,600 According to this. Every as a person makes more 220 00:12:56,600 --> 00:13:02,100 money, expectations and desires rise in tandem, which results in 221 00:13:02,100 --> 00:13:09,200 no permanent gain to happiness. The broader lesson as I tell my 222 00:13:09,200 --> 00:13:14,000 kids at a young age, many things in life sound bad, but our good 223 00:13:14,200 --> 00:13:16,900 Rich, foreigners. Living it up in the third world 224 00:13:16,900 --> 00:13:20,800 is one of those things and the list goes on and on. 225 00:13:20,800 --> 00:13:22,100 Thank you for watching Keith Knight. 226 00:13:22,100 --> 00:13:23,200 Don't tread on anyone.