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We're back at Florida State University I'm here because I'm on a book -- -- for my new -- know they can't white government fail.
And I say no they can't in response to the last presidential campaign where they were saying.
Yes we can we as government and to that at I think that all they can't.
Still we need government.
We need government to do some things but what can government via instant -- government create jobs.
While these -- didn't.
Understand that because they took courses from.
A lot of Smart economist but he's still in particular.
-- Calhoun and Jim Courtney so what do you.
What it takes them.
-- students understand economics they have a good understanding when they get to college.
I would like to think they have a better understanding after they leave college definitely my class in Q what do or what people not understand it.
The economic way of thinking they don't understand that incentives matter and there's this inclination.
To think that.
If in fact the intentions of -- policy -- some kind of a program are good that that means the results are good.
And one definition of economics is economics economists are basically scoundrels who teach the yet.
Way the world really works rather than the way people would like -- -- her absolute.
But it's not truthful -- who -- Now narcissistic Li I am interviewing you actually because you'd teach sometimes using my videos from.
Fox business and they've been converted of these you've helped -- them into these dvds which college -- -- micro and macroeconomic so what.
Jim what videos do and like learn from.
Well one -- They like that actually pertains to what we had just been talking about the one about the broken window fallacy.
Of course that's the one where you let's throw some stuff -- -- as part of my theory creates jobs and hurt.
For -- -- -- maker for a -- exactly.
But we talk about and stress that it's not just jobs that its production of goods and services that people value if it was jobs we can basically.
Dig holes and fill them up -- that's what created prosperity but of course unfortunately it doesn't.
Are right some other examples I -- think the big glut that would -- these students if they knew about it is that.
My generation is gonna rip.
All the -- because of Medicare and Social Security you're gonna pay for my retirement thanks I appreciate.
But what's wrong with that that was the deal -- we.
May take terrible people.
One of the original associate program was build much like a retirement plan where the government will take money out of your paycheck put it in -- account for you.
And then when you get old and will pay you back with sold that -- the very quickly can morphed into what it is today.
So what you know I need the money there if that's the deal they're young they're parents paid for them now they pay for us.
Well the problem is is the dad is becoming larger and larger so let somebody come in one to borrow so you were a banker one to come in and and borrow funds from you.
And essentially said and -- 220000.
Dollars a year but I'm spending 360000.
Dollars a year.
And -- -- all million would you be willing to loan me another.
So I could go on a vacation -- take some kind of a trip you'd think they're pretty risky wouldn't you.
Well essentially what you could print money I figure -- might get paid back that made him.
And of course that's something that comes out in our classes we talk about where that -- that debt becomes very high.
Reality to the revenues that are -- Coming in in order to finance or even pay the interest on on that particular debt.
It's going to create problems and of course we see that in Greece we've seen that many times in the past particularly when.
A government has the Central Bank.
That is saintly they will resort to the printing press in order to pay -- that -- to pay for it through inflation which is just another kind tax.
That is so very Intertrust stiff us old people and not pay our Medicare were still never -- -- we while you go.
And or they're gonna print more money and maybe have massive inflation.
Certainly the two major options that we can expect.
What it -- -- too long to understand is what makes a country prosperous.
And people think it's natural resource is there democracy.
But that's not yet and -- you publish a list of countries and their ranking of economic freedom tell about that.
Say actually it's the project which.
God father really founder of it was Milton Friedman's -- clear back to late 1980s.
The idea was you would develop a a major.
Objective is as possible they would identify the consistency.
The country's institutions with economic freedom that is to say with voluntary exchange reliance upon markets.
A minimal kinds of taxes and a government that's basically protects people.
From aggression by others and protects property rights.
And we don't protects them from aggression from others but otherwise pretty much leaves them alone that's right.
And there's been more than fifty scholarly studies looking at the relationship between economic freedom.
And economic growth and high levels of income and low levels of poverty.
And every one of those studies I mean it's remarkable as shown that economic freedom leads to more prosperity.
And the country's at the top of the list with the most economic freedom.
Well the two highest rank countries are Hong Kong Singapore but rather closely behind those are our Switzerland and New Zealand Australia.
The United States used to be one of the really top five ranked in fact we were in the top three.
All that period of time from 1980.
But now we're down.
The last decade -- fallen down to ten it's a pretty substantial reduction.
Still the top -- good places to live at the bottom of the list.
Bottom of the list you find countries like Central African Republic and Myanmar a number of country North Korea North Korea.
You don't wanna live in those places that's right -- -- very difficult place.
-- live in for sure.
You've got to college version of style slow in the classroom my dvds I started this for high school students.
And figured that.
College students will learn economics from television but -- that the programs are too stupid to be -- college level.
I think it's great about the videos at least the clips that that we've -- put together the dvd -- is they bring economics come alive.
And we -- I think it's important breaking -- I growth doesn't.
Every time I show one of your clips in class.
It'll it'll come up -- within a split second -- realizes when -- viewers and within the audience I hear this yes.
Why it it's because they love -- you.
-- one more example of intuitive government policy.
Will create jobs will create economic.
Activity with stimulus.
What's wrong with that.
Well the problem with stimulus that he really -- -- to look at it from the economic point of view -- -- thinking about an opportunity -- and let me give you an example just north of town.
We have the lake Jackson eco passage which we -- actually refer to as the turtle tunnel.
And through these stimulus package that full order form of transportation received a little over three million dollars to build a tunnel.
Which was pedestrian slash wildlife but I don't think any pedestrians of government through there.
And according to the government's own study that three million dollars created one full time job.
So when I look at it I think what it's nice to save turtles and how personal cherished when I look at three million dollars I say what what did we have to give up.
In order to save the turtles.
And if you look at the alternatives that could be that may be what we gave up with something more valuable -- saving terminals.
I've got it well I mean three million dollar he could do a lot of you -- -- a lot of got three million dollars.
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