Tim Harford, author of The
Logic of Life and The
Undercover Economist,
explains
tournament theory. Why is your boss overpaid? What are the
benefits of this pay scheme? What are the costs of this way
of paying?
Milton Friedman attacks
government attempts to redistribute income in order to help
the poor. He argues that by creating incentives for people
to become dependent rather than independent, the programs
hurt the recipients in the long run. Are the people in the
two examples Friedman highlights acting rationally? This
clip is several decades old. How are things different
today?
In a 1980s discussion,
Thomas Sowell argues that government welfare programs
subsidize poverty, and that whatever is subsidized, is
increased. How would you summarize the two points of view in
the video? At the time of the video, only 12% of families
were not intact. What does the term "intact family" mean?
What has happened to that number over time? Why?
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