Stossel: These Students Know More Than Politicians

Summary

The video script from 'Stossel In The Classroom' discusses the controversial topic of price gouging, particularly during emergencies like hurricanes. It challenges the conventional wisdom by presenting arguments from Nobel Prize-winning economist Milton Friedman, who views 'gougers' as heroes for supplying much-needed goods at a risk. The script also recounts the story of John Shepperson, who was arrested for price gouging after driving generators to a hurricane-struck area. The charity encourages students to critically think about economic principles through essay contests, with winners receiving trips to New York City. The video script aims to provide a balanced view on price gouging, emphasizing the role of supply and demand.

Takeaways

• 📚 The charity 'Stossel In The Classroom' provides free educational videos for teachers to use in teaching economics, government, critical thinking, and current events.
• 🏆 They hold an annual essay contest where winners receive a monetary prize and a trip to New York City.
• 🌪 The essay contest topic for this year was price gouging, a controversial practice that occurs during emergencies like hurricanes.
• 🚫 Politicians often pass laws to prevent price gouging during emergencies, which can lead to legal consequences for those who raise prices significantly.
• 🏅 Nobel Prize-winning economist Milton Friedman argued that price gougers are heroes for taking risks to supply needed goods during crises.
• 🚚 John Shepperson's story illustrates the real-world impact of anti-price gouging laws, as he was arrested for trying to sell generators at a higher price after a hurricane.
• 🛑 The confiscation and arrest of price gougers can lead to a shortage of essential goods that people need during emergencies.
• 🌎 The script mentions countries like Venezuela, which suffer due to government-imposed price controls, as a cautionary example.
• 💡 Students who participated in the essay contest argued that price gouging can be beneficial as it incentivizes sellers to provide necessary supplies during shortages.
• 📈 The script suggests that understanding economics and supply-demand dynamics is crucial for forming a balanced view on price gouging.

Q & A

What is the name of the charity that provides free videos for educational purposes?

The charity's name is Stossel In The Classroom.

What types of courses does Stossel In The Classroom offer videos for?

Stossel In The Classroom offers videos for courses in economics, government, critical thinking, and current events.

What is the purpose of the essay contest held by Stossel In The Classroom?

The essay contest is held to encourage students to write about economic and social issues, with winners receiving money and a trip to New York City.

What was the topic of the essay contest in the year mentioned in the transcript?

The topic of the essay contest was price gouging.

Why do politicians often pass laws against price gouging?

Politicians pass laws against price gouging because they believe it is unethical for merchants to raise prices significantly during emergencies, which is seen as taking advantage of consumers.

What does Nobel Prize-winning economist Milton Friedman say about price gougers?

Milton Friedman said that price gougers deserve a medal because they take risks to bring in goods that people desperately need during emergencies.

What happened to John Shepperson when he tried to sell generators at a higher price after Hurricane Katrina?

John Shepperson was arrested by Mississippi police for price gouging, and his generators were confiscated.

What are the arguments made by students in the video essay contest against price gouging laws?

Students argue that price gougers are essential for bringing necessary goods to people during emergencies, and that price gouging laws can actually harm consumers by reducing the supply of needed items.

How do students in the essay contest view the role of price gougers in a disaster situation?

Students view price gougers as heroes who provide much-needed supplies during disasters, and they argue that price gouging is a natural part of supply and demand.

What is the stance of the students who participated in the essay contest regarding government intervention in pricing during emergencies?

The students who participated in the essay contest generally believe that government intervention in pricing, such as price gouging laws, is detrimental and that the free market should be allowed to function.

What is the website mentioned in the transcript for those interested in the essay contest?

The website mentioned for information about the essay contest is SITC.org.

Outlines

00:00

🎓 The Impact of 'Stossel In The Classroom'

The script introduces a charity initiative by a high school teacher that provides free educational videos for students, focusing on subjects like economics, government, critical thinking, and current events. These videos, part of 'Stossel In The Classroom,' aim to offer students new perspectives on various topics. The charity also hosts an annual essay contest where winners receive a monetary prize and a trip to New York City. The script then delves into a discussion about price gouging, a topic that was the subject of the essay contest that year. It contrasts the negative public and political view of price gouging, especially during emergencies like hurricanes, with the argument of Nobel Prize-winning economist Milton Friedman, who views those who engage in price gouging as heroes for taking risks to supply much-needed goods.

Keywords

💡Charity

Charity refers to the voluntary giving of help, typically in the form of money or time, to those in need without expecting anything in return. In the video's context, the charity run by a high school teacher provides free educational videos to students, enhancing their learning experience. The charity's initiative exemplifies the positive impact of altruism on education.

💡Stossel In The Classroom

Stossel In The Classroom is a charity mentioned in the script that offers free educational videos to teachers for use in their classrooms. This initiative aims to supplement traditional teaching methods with multimedia content, covering subjects like economics, government, critical thinking, and current events. It is central to the video's theme of educational innovation and resource accessibility.

💡Price Gouging

Price gouging is the practice of raising prices on goods or services to an unfair level, often during a state of emergency or high demand. In the video, this concept is explored through the lens of a student essay contest, where students discuss the controversial nature of price gouging during natural disasters. The video challenges the common perception by presenting arguments that price gouging can be economically rational and beneficial.

💡Welfare

Welfare refers to government support programs designed to provide financial assistance or services to individuals in need. The video script briefly touches on the idea that reliance on welfare can potentially reduce an individual's incentive to work. This concept is used to spark a discussion on the complex dynamics between government assistance and personal motivation.

💡Nobel Prize Winning Economist

A Nobel Prize winning economist is an individual who has been awarded the Nobel Prize in Economic Sciences for their outstanding contributions to the field. In the video, Milton Friedman, a Nobel laureate, is quoted as defending price gouging, arguing that those who engage in it are providing a necessary service by bringing in goods that are in high demand during emergencies.

💡Supply and Demand

Supply and demand is an economic principle that describes how the availability of a product (supply) and the desire for it (demand) interact to determine its price. In the video, this concept is used to explain the phenomenon of price gouging, suggesting that it is a natural market response to scarcity, such as during a disaster, and that it can lead to more efficient allocation of resources.

💡Emergency

An emergency is a situation that poses an immediate threat to health, property, or the environment and requires urgent action. The video discusses how price gouging becomes a contentious issue during emergencies, such as hurricanes, when the demand for certain goods skyrockets, and the script uses this context to explore the ethical and economic implications of price gouging.

💡Essay Contest

An essay contest is a competition where participants are required to write essays on a specific topic to win prizes. In the video, an essay contest is held by Stossel In The Classroom, inviting students to write about price gouging. This contest serves as a platform for students to critically analyze and express their views on a complex economic issue, which is central to the video's educational mission.

💡Incentive

An incentive is something that motivates a person to do something, often by offering a reward or advantage. The video script suggests that people receiving welfare may over time lose the incentive to work, implying a potential drawback of welfare systems. This concept is integral to the broader discussion on economic behavior and personal motivation.

💡Economics

Economics is the social science that studies the production, distribution, and consumption of goods and services. The video uses economics as a framework to discuss price gouging, emphasizing the role of market forces and individual decision-making in economic transactions. Economics serves as the foundational discipline for understanding the video's exploration of price gouging and its effects.

💡Government Regulation

Government regulation refers to the rules and policies set by a governing body to control or influence the behavior of individuals or organizations. In the video, government regulations against price gouging are mentioned, illustrating the tension between market forces and government intervention. The script uses this concept to debate the merits of allowing market mechanisms to operate freely versus the need for regulatory oversight.

Highlights

Charity run by a high school teacher provides free videos for students.

Videos cover economics, government, critical thinking, and current events.

Essay contest winners receive money and a trip to New York City.

Price gouging is a topic of discussion among students.

Politicians often pass laws against price gouging during emergencies.

Nobel Prize-winning economist Milton Friedman argues that 'gougers' are heroes.

John Shepperson's story of providing generators during Hurricane Katrina.

Mississippi police confiscated generators and arrested John for price gouging.

Students argue that price gouging can be beneficial in disaster situations.

Annelise Kofod's video on the negative effects of price controls.

Erika Lewis discusses the moral implications of price gouging.

Maggie Hroncich argues that price gouging is a form of supply and demand.

Students' essays provide a nuanced view on price gouging.

The importance of considering all sides of an issue through educational videos.

Next year's essay contest will be announced on SITC.org.

The value of critical thinking in understanding economic concepts like price gouging.

The role of supply and demand in natural disasters and emergencies.

The impact of government regulations on the availability of essential goods during crises.

Transcripts

Are you smarter than a politician?

Anybody?

The answer is yes if you were among the

millions of students who,

thanks to the charity run by this high school teacher,

get to watch my videos in class.

It should only take you a couple of minutes.

Actually, not all the videos are mine but

the charity's called Stossel In The Classroom

because I offer free videos to

any teacher who wants video teaching aids

for courses in economics, government,

critical thinking, and current events.

Watching and discussing the videos gives

kids new perspective on things.

But the people that accept welfare, over time

they lose the incentive to work.

Every year we hold an essay contest.

Winners get money plus a free trip for them

and their teacher to visit us here

in New York City.

This year's contest invited students to

write about price gouging,

a practice hated by the media and most politicians.

Jeff Sessions and the President of the United States

will not tolerate gouging.

Gouging becomes an issue every hurricane season,

because after storms, some merchants

raise prices.

They're taking advantage of us.

That leads politicians to pass laws that say:

During a state of emergency,

you cannot substantially raise prices

whether it's a hotel room, fuel,

commodities such as water, generators,

you cannot raise prices substantially

and that's what these bad people are doing.

Fortunately, our students get to hear a

Nobel Prize winning economist

give the other side of the argument.

The gougers deserve a medal.

The gougers are heroes,

said Milton Friedman

because they take risks to bring in goods

that people desperately need.

After Hurricane Katrina,

one so-called gouger was John Shepperson.

Watching news reports about Katrina,

he learned that people desperately needed things.

My wife just got out of the hospital.

She's very sick, and we need a generator.

So John bought 19 generators,

put them in a rented U-Haul,

and drove it 600 miles to

part of Mississippi which had no

electricity.

Five million people in this region are without power.

John offered to sell his generators

for twice what he paid for them.

People were eager to buy.

People were excited. We had a product they needed.

But Mississippi police wouldn't let John sell them.

They called that price gouging.

Instead, they confiscated his generators

and locked John up in this jail.

So did the public benefit?

No.

What do we need? Come on guys.

Generators, water, food.

Somebody needs to bring these products

to people

when there are disasters and emergencies,

and this is gonna be one person

that's not going to be there that

they took out of the equation.

Students who entered our video essay contest

expanded on that point.

In modern day, you see countries like Venezuela

suffer from the fact that their

governments continue to place price controls

on all items.

17 year-old Annelise Kofod

of Raleigh, North Carolina submitted this video

and won our high school award.

34 the 50 US states have laws against price gouging.

As I did more and more research,

I was like, okay maybe price gouging

isn't such a bad thing.

Erika Lewis of Towson University won the

college-level category.

Sellers are able to earn more profit and buyers are

capable of getting the supplies they desperately need.

Actually the price gougers are the moral ones.

17 year old Maggie Hroncich of Grove City,

Pennsylvania

won her high school essay contest.

If you just look at the economics,

the most people are helped

if you keep the government out of it.

When people hear price gouging,

they think, oh gouging

this awful thing that you'd think of,

but it really is kind of just another name

for supply and demand.

Wisdom from students helped to look at

all sides of the issue

by teachers who use our videos.

Next year's essay contest will be announced soon.

Check out SITC.org

for the latest information.