Economics in Action

In this episode, we explore the claim made in a recent Wall Street Journal opinion piece, entitled, "Be Thankful for High Drug Prices" that claims high drug prices in the US are what allow for new drug innovation and that other countries take advantage of this.  We'll explore the economic quirks of the drug industry and look at some argument and evidence that counter the claim the authors of the piece make.  The article: https://www.wsj.com/articles/be-thankful-for-high-drug-prices-healthcare-policy-research-and-development-3e603ca8

In this episode, we'll look at Modern Portfolio Theory, which revolutionized the field of investment portfolio management by introducing a quantitative framework for maximizing investment returns relative to risk. The theory emphasizes the importance of diversification, advocating for the creation of an 'efficient frontier' of optimal portfolios that offer the highest expected return for a given level of risk. Central to MPT is the concept that the risk of a portfolio can be reduced and its expected return maximized through careful asset selection based on their expected returns, risks, and the correlations between them.

In this episode, we explore the idea of fairness in the distribution of pay.   We discuss the economic theory behind wage-setting and how it can help to answer whether wages are fair.  Then we discuss how the cards might be stacked against some workers  and why things may not be as fair as they seem.  

You might have heard business news reports of the Fed raising or lowering interest rates to slow down or speed up the economy, but how does the Fed actually do this?  Why do interest rates matter?  What interest rate does the Fed even control?  In this episode, we'll take a look at arguably the most important institution in the world and how it uses its most important tool, interest rates, to influence the overall economy.  Most textbooks out there are outdated in how their description of how the Fed sets the interest rate and today we're going to set the record straight about the Fed's new way of setting rates, known as the floor system.  So strap in, because we're about to get banky.  

Welcome to today's episode where we'll dive into the world of industrial policy, a tool governments use to give a boost to certain sectors of the economy. We'll explore how it can lead to exciting growth and innovation but also discuss why some folks are wary about its drawbacks. Get ready for a balanced take on this economic strategy that's shaping industries around the globe.

In this episode, we respond to the lovers of the free market with a chant, "Down with Capitalism!".  Not really, but instead we do point out a number of capitalism's flaws and show that it isn't the "perfect" economic system that some people think it is.  Join us as we uncover the dirty innards of capitalism and expose the weaknesses that lie beneath.  

In this episode, we explore the semi-recent price hikes in the fast food industry.  Tiktokers and YouTubers have been bashing the company for raising prices, but sales for the company have never been stronger. Is this normal corporate profit maximization?  Is this a case of Greedflation?  Is the government trying to prevent us from being happy??  We'll discuss the reason for the price increases and also a number of other interesting facts about the fast food industry.  Vamos!

In this episode, we give all the reasons for capitalism being the best economic system out there.  We not only give a description of how capitalist systems work, but all why they bring about efficiency, growth and innovation.  If you're not a fan of capitalism, stay tuned for a further episode where we'll be exploring all the downsides of capitalism.  But for today- yay capitalism!