RSA ANIMATE: Economics is for Everyone!
Summary
TLDRThe speaker challenges the notion that economics is too complex for the layperson, arguing that common sense underlies most economic principles. They emphasize the diversity of economic theories, using Singapore's success as an example of the need for multiple perspectives. The speaker also discusses the role of economics in public life, advocating for skepticism towards professional economists, open-mindedness in debates, and the importance of challenging the status quo for societal improvement.
Takeaways
- 😀 Economics is often perceived as too complicated for non-economists, but the speaker argues that this is a misconception perpetuated by economists themselves.
- 🤔 People hold strong opinions on various topics without specialized degrees, yet feel hesitant to express views on economics, suggesting a need to demystify the subject.
- 📚 The speaker emphasizes that 95% of economics is common sense and can be understood without deep technical knowledge, advocating for accessible explanations.
- 🏛 The classical view of economics, as seen in the works of Adam Smith, focused on classes and their interests, contrasting with modern views that emphasize individuals.
- 🌐 Marketing strategies still categorize people into classes, despite the common denial of class structures in modern economic discussions.
- 🧐 Economics is not a singular science but consists of multiple schools of thought, each with unique strengths and weaknesses.
- 🌟 The success of Singapore cannot be fully explained by a single economic theory, highlighting the need for diverse perspectives to understand complex economic phenomena.
- 🔨 The speaker advises against relying on a single economic theory, likening it to a man with a hammer who sees everything as a nail.
- 🛠 The role of economics in public life is discussed, with the speaker noting that economics should not just be about utility maximization but also consider well-being and self-fulfillment.
- 🤝 The importance of challenging professional economists and not solely relying on expert consensus is highlighted as fundamental to democracy.
- 🌈 The speaker encourages humility in economic debates, acknowledging the complexity of the world and the limitations of any single theory.
- 🏆 Despite the difficulties in changing economic realities, the speaker motivates for continuous efforts towards creating a better economy and society, drawing inspiration from historical progress.
Q & A
Why does the speaker believe that people should not be intimidated by the complexity of economics?
-The speaker argues that people often have strong opinions on various topics without specialized degrees, yet they feel economics is only for specialists. This perception is due to economists successfully making economics seem more difficult than it is, often using jargon and complex mathematics.
What does the speaker suggest is the main reason for the misunderstanding about the accessibility of economics?
-The speaker suggests that economists have been successful in making people believe that economics is more difficult than it actually is, which discourages non-specialists from forming opinions on economic matters.
According to the speaker, what is the percentage of economics that is based on common sense?
-The speaker states that 95% of economics is based on common sense, which is often obscured by jargon and complex mathematics.
Why does the speaker argue that economics should be more accessible to the general public?
-The speaker believes that economics affects everyone's lives and that people should be able to understand and have opinions on economic policies, just as they do on other societal issues, without needing a deep understanding of all technical details.
What is the speaker's view on the relationship between economics and politics?
-The speaker implies that economics and politics are intertwined and that different ways of conceptualizing the economy affect how we see the world, suggesting that it is not possible to completely separate the two.
How does the speaker describe the evolution of economic theories from classical to free-market economics?
-The speaker explains that classical economists like Adam Smith conceptualized society and the economy as being made up of classes with different material interests, whereas in modern free-market economics, the focus is on individuals, ignoring the concept of classes.
What is the speaker's opinion on the diversity of economic theories?
-The speaker advocates for the importance of diverse economic theories, arguing that no single theory can fully explain complex economic phenomena and that understanding requires considering multiple perspectives.
What is the 'Singapore problem' referred to by the speaker, and what does it illustrate?
-The 'Singapore problem' is a term used by the speaker to highlight the difficulty of explaining Singapore's economic success with a single economic theory. It shows that Singapore's success is due to a combination of factors, including state ownership and intervention, which challenges the narrative of free-market economics.
Why does the speaker advise against being a 'man with a hammer' in terms of economic theories?
-The speaker uses the metaphor of a 'man with a hammer' to caution against relying solely on one economic theory, as it can lead to a biased view of economic phenomena and overlook the complexities of real-world economies.
What is the speaker's stance on the role of work in people's lives and its impact on happiness?
-The speaker emphasizes that work is not just about earning money for consumption but also fundamentally affects people's identity, self-worth, and fulfillment. This is why some people may be unhappy despite higher incomes, as work has become more stressful.
What are the speaker's three sets of observations regarding the role of economics in public life?
-The speaker's observations include: 1) Never trust an economist completely, as they do not have a monopoly over truth; 2) Always listen to the other side, as all economic theories are partial and complex; 3) Acknowledge the difficulties in changing economic reality but maintain optimism and fight for a better economy.
Outlines
📚 Making Economics Accessible
The speaker challenges the common perception that economics is an overly complex field reserved for specialists. They argue that people often have strong opinions on various topics without formal education in those areas, yet hesitate to form opinions on economic matters. The speaker believes that economics is fundamentally common sense, obscured by jargon and complex mathematics. They emphasize the importance of understanding different economic theories, such as classical, neoclassical, and Austrian economics, to gain a comprehensive view of economic systems. The Singapore example is used to illustrate the need for diverse economic perspectives, as no single theory can fully explain the country's success.
👷♂️ The Human Aspect of Economics
This paragraph delves into the human element of economic theory, particularly how people are viewed within the neoclassical economic framework as consumers and workers seeking utility. The speaker discusses the impact of work on individuals' well-being, identity, and self-worth, noting the disconnect between increased income and happiness in modern societies. They critique the narrow focus of professional economists and advocate for the public's role in challenging economic orthodoxy, suggesting that ordinary citizens' judgments may sometimes be more grounded in reality. The speaker also emphasizes the importance of humility and open-mindedness in economic debates, acknowledging the complexity of economic theories and the world.
🚀 Overcoming Challenges in Economic Reform
The final paragraph addresses the difficulties of implementing economic change, recognizing the resistance from those who benefit from the status quo. The speaker points out that the market system, with its 'one dollar, one vote' principle, can limit the choices available to those with less financial power. They also touch on the phenomenon of 'false consciousness,' where people may oppose reforms that are actually in their best interest, using the example of the backlash against Obamacare. Despite these challenges, the speaker encourages maintaining a balance between intellectual skepticism and willful optimism, citing historical examples of societal shifts that once seemed impossible. They conclude with a call to action, inspired by Nelson Mandela's words, to persevere in the pursuit of a better economic and social system.
Mindmap
Keywords
💡Economics
💡Common Sense
💡Jargon
💡Classical Economics
💡Free-Market Economics
💡Economic Theory
💡Singapore
💡Neoclassical Economics
💡Utility
💡Status Quo
💡Democracy
💡Pessimism of the Intellect
Highlights
Dispelling the perception that economics is too complicated for non-economists.
People have strong opinions on various topics without specialized degrees, yet hesitate on economics, suggesting it's made deliberately complex.
Economics is fundamentally common sense, obscured by jargon and mathematics.
Economic theories are diverse, with strengths and weaknesses, and should not be viewed in isolation.
The misconception that free-market economics is a direct descendant of Adam Smith's ideas is debunked.
Classical economists like Adam Smith viewed society as classes, not individuals, influencing economic theories.
Marketing strategies still categorize people by class, contradicting the 'no class' narrative in free-market economics.
Economics is not a singular science; there are at least nine major schools of thought.
The Singapore problem illustrates the need for diverse economic theories to understand economic success.
Singapore's economic success cannot be explained by a single economic theory.
Advocating for a multifaceted approach to economics, likening it to having a Swiss Army knife.
Neoclassical theory's view of people as consumers and workers is critiqued for its limited perspective on human experience.
The impact of work on identity, self-worth, and fulfillment is emphasized, beyond just economic utility.
The paradox of increased income but decreased happiness in rich countries due to stressful work conditions.
The role of economics in public life and the importance of challenging professional economists.
The value of ordinary citizens' judgments, possibly more rooted in reality than professional economists.
The importance of humility in economic debates and keeping an open mind to different theories.
The difficulty of changing economic reality and the defense of the status quo by various means.
The encouragement to fight for a better economy and society, despite the acknowledged challenges.
The quote from Antonio Gramsci about the need for intellectual pessimism and willful optimism.
Nelson Mandela's perspective on the impossibility of change until it is achieved.
Transcripts
I try my best to dispel this widespread
perception that the konnex is too
complicated for non economist and
actually it's a very strange because
people have very strong opinions about
everything
Iraq war gay marriage does God exist you
know global warming you already have
very strong views on these things
despite not having a degree in theology
not having a degree in energy economics
not having a degree in international
relations but when it comes to economics
people say aria is for specialist you
know I don't know but why I mean if you
can have a very strong view on Iraq or
Afghanistan without a degree in
international relations you should have
a strong beyond common man economy
policy without the deep unique glory you
know I say that this is only because
economies have been fantastically
successful in making people believe that
it is actually a lot more difficult than
what it really is so they'll tell you
our you know I could explain it to you
but then you don't understand 95% of
economics is common sense of course made
to look difficult with the use of jargon
and mathematics and and even the
remaining 5% can be understood at least
in its essence if not in all technical
details if are someone bothers to
explain it to you in an accessible way
for example what is economics in the
ethical foundations of economic whether
you can separate the conex and politics
and how different ways of
conceptualizing the economy affects the
way we see the world you know for
example people think that today's free
market economics is a direct descendant
of Adam Smith but this is not true you
know in Adam Smith and other so-called
classical economists the society the
economy was conceptualized as being made
up of classes and not individuals and
the whole theory evolved around how the
way it is different classes with
different material interests be a affect
the way capital is accumulated the
economy grows income is distributed and
so on
today in free-market economics that is
only individual when you tell people
author you know isn't there
class they say no I mean that there's an
old Marxist concept but if that's the
case why do the marketing companies have
all these class categories when they do
marketing campaign strategy Hotel they
look at groups ABC c1 c2 you know target
advertising according to the type of
people now
many college will tell you that
economics is a science in which there's
only one white theory there are at least
nine different major schools of
economics and in this several more if
you count - schools or split the major
ones into soft schools each with is own
unique strengths and weaknesses and for
free market economics our Lord you have
three different kinds classical
economics neoclassical economics
Austrian economy so actually there isn't
one white theory and my contingent is
that we need all these diverse
approaches to economics in order to
fully understand our economy because
they all make certain assumptions they
all have different underlying political
and ethical values they have all sorts
of different theories about how the
economy grows and so on and to make this
point I give you the Singapore problem
or what I call life is stranger than
fiction you know if you read only the
financial newspapers like the Wall
Street Journal or the Economist magazine
you will be only told that Singapore
succeeded because of is a free trade
policy and it's welcoming attitude
towards our foreign investors this is
partly true I mean they did have those
things but you will never be told that
Singapore government owns nearly 90% of
all the land
85% of housing is provided by a
government-owned housing corporation and
a staggering 22% of GDP is produced by
state-owned enterprises so in talking
about Singapore I always tell my student
matter what it is neoclassical Marxist
Austrian Schumpeterian give me one
economic theory that can explain
Singapore well there isn't so you need
to know these different theories to
fully understand how
country like Singapore could succeed so
in this regard my advice is that you
should not be a man or a woman with a
hammer by loading only one kind of
economy theory because whatever that
theory is once you believe that one
theory is true like the man with the
hammer you will start to see everything
as an aim
so I say that you should get a swiss
knife in this dominant economic theory
that is up today that is a neoclassical
theory people are mainly conceptualized
as consumers and workers are considered
as what DS econ is called this utility
that you have to put up with so that you
can earn money with which you consume
goods and services and then derive
pleasure or what they call utility
that's your aim driving pleasure from
consumption but what happens in our
workplace are fundamentally affects us
not just our immediate physical and
psychological well-being but also our
identity and our sense of self-worth and
our self fulfillment this is why these
days in many rich countries a lot of
people are very unhappy compared to say
a couple of decades ago despite the fact
that they have higher income why because
the work has become more stressful but
then you know economists tell you know
you should be happy you know Britain
today has a 20 percent higher income
than in 1975 and why aren't you happier
you know my pockets are not just an
explanation of economic theories and
facts it's also a discussion about the
role of economics in public life and in
this regard I have three sets of
observations to make the first one is
never trust an economist and that
includes me yeah you know professional
economists that I like to say are you we
know what is correct you know no they
don't have a monopoly over truth I
already told you that there are nine
different kinds of economic theory so
the right our conclusion depends on
which economist you talk to him
and I argue that it is entirely possible
for people who are not proficient in
economies that who have sound judgment
Sonia Khanna issues
I even argue that sometimes their
judgments may even be better than those
of professional economists because they
may be more rooted in reality and less
narrowly focused and I argue that indeed
the willingness on the part of the
ordinary citizens to challenge
professional economists and other
experts is a foundation of democracy you
know if you really believe that all we
have to do is to listen to the experts
to listen to the professional consensus
of the experts why do you need democracy
yeah let self elected elites that
appoint each other and Wonderwall you
know this is why a lot of people aren't
happy with the European Union the second
point is the latin phrase that is
apparently written on the walls of the
city hall of gouda the city in the
netherlands which is famous for the
cheese and he says yeah i'm not even
going to pretend to speak latin so it
basically says listen even to the other
side and i argue that this is the
attitude you have to have in debating on
equal issues i'm not suggesting that you
should have no opinion of your own but
what i'm trying to tell you is that
given the complexity of the world and
given the necessarily partial nature of
all economic theories you should be
humble about the validity of your own
favorite theory and should keep an open
mind about it
finally a car even while i constantly
make reform proposals i emphasize how
difficult it is to change the economic
reality well sometimes the reason is
obvious i mean people who benefit from
this status quo want to thwart change by
any means you know lobbying bribery
video propaganda and even violence but
the status quo often gets defended even
without some people actively being evil
because I thought thing about the market
system is that the rule is one dollar
one vote you know so this means that the
ability
those with less money to refuse
undesirable options given to them is
highly constrained also we can be
susceptible to believe that against our
own interest and at the best that that
example is that what happened when
Barack Obama tried to reform the
American medical insurance system and
there were all these pictures of all
pensioners demonstrating against what
they call Obamacare with placards that
saying things like government hands off
my Medicare well except that Medicare is
a government program well this is what
the Marxist are used to call false
consciousness or also known as the
matrix the movie but acknowledging the
difficulties involved in changing the
economic status quo should not make us
give up the fight to create a better
economy and debt to society
yes changes are difficult but in the
long run if I you know people fight for
something hard enough many impossible
things can happen and I don't forget I
mean two hundred years ago if you
suggested America should abolish slavery
you would have been branded at least our
unrealistic and that they're probably
the loonie one hundred years ago that
the British government put women in
prison for asking for what a lot of
women actually said why do we need votes
that we have our husbands and brothers
to represent our views well this is why
I caught Antonio Gramsci D Italia
Marxist er who once said that we need to
have pessimism of the intellect but
optimism of the will yeah you have to
accept the difficulties of changing
these status quo but you have to believe
that this can be done
and finally as Nelson Mandela used to
say it always seems impossible until it
is done
you
you
you
関連動画をさらに表示
"Open Minded" dan Paradox Toleransi.
DOWNFALL of Kolkata Explained in 10 Minutes! | Sanjeev Sanyal on The Neon Show
Lecture02A MoneyCreationAntiFractionalReserveBanking
Nationalekonomiska teorier | SAMHÄLLSKUNSKAP FÖRKLARAD | Gymnasiet
What do Filipinos know about the Philippine economy?
הגרעון, דירוג האשראי, והזדמנות למשבר טוב
5.0 / 5 (0 votes)