Pure Public Goods and Monopolies
When there is a good or service that a company won't provide because there is no way to stop people from getting that service for free (in other words, no way to make a profit), then that good or service is a pure public good. Hello, lighthouses! Also, we can count the military and the police among our pure public goods, too.
When there is no good or service to sell, the market doesn't exist.
How about if the market exists but there is only one game in town? Lev and Natalie also discuss economist Joseph Stiglitz's theory of the new era of monopoly.
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YouknowthatIknowthatyouknowmorethanIknow
You land in New York city during a mid-summer heat wave. You've never been to the Big Apple so you head to the hotel, drop your bags and hit Central Park. Before entering the park, you buy a cold $4 bottle of water. It's expensive, but that's NY. Or so you think. After a few days of shopping in corner delis you realize that the true price of water in NY is actually much cheaper. You've been had! Economists call this type of market failure 'Asymmetric Information,'when one side of a transaction knows more than the other and prices are distorted as a result. In this episode, we discuss the 'lemon' market of online dating, insurance, banking and much more. In these dark times (literally, it gets late early out there in the winter!) we bring some fun to your ear. Enjoy!
A Correction Podcast is edited by Natalie Peart
Outro music this week is "Young Ladies" by Owa Brandstein
We encourage you to respond (thoughtfully please) and write to us at acorrectionteam@acorrectionpodcast.com
Rice and Beans
When the government imposes a maximum price on a good or service, they have implemented a price ceiling. When the government enforces a minimum price on a good or service, they create a price floor. For example, the minimum wage. Employers legally cannot pay below the set price floor for the labor of their employees (though we know wage theft happens all of the time). A hinderance to free market functioning, price controls are said to create a market distortion. But what if they produce some clarity in the market in the form of a little more equity? Lev and Natalie discuss the pros and cons of price controls, community land trusts, other methods the government could utilize in promoting equity, and Hugo Chavez.
Intro and outro music by Ben Flood
Podcast edited by Natalie Peart
The S-Word
To say many in our nation are stunned that Donald Trump is the President-elect is an understatement. Here at A Correction Podcast, we decided to deviate (just a bit) from our regular posting schedule, to examine some of the proposed policies under a Trump administration. What could our future look like economically and socially in the United States? We also ask each other (as many around the country have been) how do we build better solidarity and what do we need to be doing when it concerns being engaged politically and with one another?
We encourage you to respond (thoughtfully please) and write to us at acorrectionteam@acorrectionpodcast.com.
Theme Music: Ben Flood, Closing Music: 11/12/16 Protest (if you know who was leading the chant, please reach out to us so we can give them credit!)
Season 2 Episode 1: Perverse Expectations
SNEAK PEEK: Season Two
We are hard at work putting together season 2 of A Correction Podcast! Thank you for all of your encouragement, feedback and support for season 1.
Below is a sneak peek of what we'll be exploring this season.
Episode 5: Two Efficient Market Hypothesis Economists are Walking Down the Street
John Maynard Keynes is described by Robert Heilbroner as the "engineer of capitalism repaired." When economic crises unfolded, Keynes believed that government should get involved in the form of spending and then step back when the markets equalized; a much different approach from austerity-ridden southern Europe soon after the crash of 2008. Realistically, how much can we let the market alone? How much government intervention is too much? In our last episode of season one, Lev and Natalie discuss Keynes, the efficient market hypothesis and the enigma of economic bubbles.
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Episode Four: The Only Game in Town
Adam Smith, a late 18th century economist, wrote about the importance of free markets and competition. He argued that competition kept prices low and quality high. Competition prevented monopolies and thwarted a business from becoming the only game in town. In today's modern economy, Smith would be surprised as there are few true free markets, the state plays a large role in the economy, and large multinationals dominate. Is the United States really a free market economy? As capitalism continues to chug away unfettered, is the end of history in sight? Karl Marx would say so, but not without the clashing of classes to move us forward into his version of communism: no more rich versus poor, no more classes to tussle.
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Episode Three: A Dollar and a Penny
Inflation should be avoided at all costs is one belief held by the hawks. What is inflation and what do birds have to do with it? Well, nothing. In this episode, Lev and Natalie wrap up the Big Three - three important ways the economy is measured - by ending with inflation. How do we influence inflation by what we think prices are going to do? How does money gets into the economy? In A Dollar and a Penny we answer those questions and discuss the role of The Fed and why a little inflation may be a good thing.
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