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The Economics of Good and Evil
Video

The Economics of Good and Evil

RSA, 2011

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Editorial Rating

8

Qualities

  • Innovative

Recommendation

As the globe recovers from an economic downturn, citizens and world leaders want economists like Tomáš Sedláček to become saviors. Instead, he holds up a mirror to their poor choices. Even those who struggle to decipher fiscal formulas and economic jargon will grasp most of Sedláček’s points, which he explains through various entertaining metaphors. For that reason, getAbstract recommends this worthy economics lecture to laypeople and experts alike.

Summary

The bible provides what may be history’s first record of a business cycle. Genesis 32 describes a pharaoh’s dream in which seven fat cows precede seven lean cows. Joseph, a Hebrew prophet, interprets the dream, explaining that the pharaoh’s people will enjoy seven prosperous years, then seven poor ones. The prophet recommends that during the good years, they save 20% of their output, effectively slowing GDP growth during those years, for use during the lean period. This ancient advice is sound. Alas, society largely ignores it.

Indeed, fiscal policy should be contractionary in...

About the Speaker

Tomáš Sedláček lectures at Charles University in Prague, Czech Republic.


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