Intro to Austrian Economics – 3 of 4 – Advertising

Austrian Economics: An Introduction, presented at New York Polytechnic University in 1972.

3. AdvertisingAdvertising has always had bad press with economists, but consumers discover that a product either works and works well, or it doesn’t. Consumer wants are not artificially created by business itself. Advertising as a selling cost seemed evil. The free market benefits every participant. But intervention benefits one group at the expense of another. Political advertising – propaganda – gets a free pass.

Source: Intro to Austrian Economics – 3 of 4 – Advertising – YouTube

http://www.readrothbard.com/intro-to-austrian-economics-3-of-4-advertising

TRANSCRIPT
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okay advertising something so the
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central focus tonight also of course
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touches on the competition monopoly
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thing I’m going to try to focus on the
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advertising aspect of it advertising has
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always had a very very bad press and
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economics textbooks and treatises and so
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forth only within the last couple of
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years with the minutes any kind of a
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reevaluation advertise even that is
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pretty grudging oh yeah that one thing
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is advertising personally wasteful was
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the waste of resources supposed to be in
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monopolistic and it’s supposed to
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somehow determine the consumers in other
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words the advertiser you look at the ad
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and somehow the flips up like some kind
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of a button in your head and have
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determined you to Russia often buy the
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product he’s a sort of I guess the three
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basic charges against advertising the
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thing about being wasteful stems from a
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topic shall return to a great love and
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affection layer the the so-called
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perfect competition model of a pure
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competition model one of the kookiest
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most peculiar most bizarre theories has
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ever ever come to dominate economic
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thought and really still doesn’t get
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right down to it the perfect competition
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model is a model which which given the
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west by trying night founder of the
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support chicago school or 19 21 and the
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private competition mala supposed to be
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as a name perfect implies is obviously
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you the few the word perfect you already
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using a very valuable a term or off the
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word pure in other word on alternative
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words also it’s also value load
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obviously everybody’s a favor of purity
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and perfection a pure perfect
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competition model assumes that the only
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real competition the only through
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fruitful competition the ideal kind of
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competition the only competition worth
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the name is the competition that exists
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when every firm in the industry is so
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small so teeny so minuscule but nothing
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is ever running it’s like what
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so ever on a price on a product on
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nothing this is this is perfect
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competition but this is pure
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conversation i should say me no more
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specific pure accomplished is right
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wherever everything is every firmly
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history is at a mystical atomically
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small therefore i have no impact on
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anything Oh perfect competition is pure
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competition all of that plus cost
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perfect knowledge on the part of
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everybody I swear I swear everybody on
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the market knows everything but little
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consumers know everything about
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everything about what’s going on all
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products all prices they don’t think
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they’re born somehow this information in
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our head and other producers know our
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reasoning all businessmen know what I
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course along all over the man is a
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little way of insane since it’s given on
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the textbook you open the pages of
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textbook there it is i got the demand
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curve the course curl you want so it’s
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all given so the assumption as a perfect
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competition is somehow realistic and
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better and terrific and wonderful and
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anything and then you see what these
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people lose they will go around of the
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world and they look around they say they
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see the things are not are not like
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tougher competition firms are too big
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big enough to affect the price of their
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product they’re not peu they’re not
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microscopically small and you don’t have
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further competition you have a lot of
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people don’t know what’s going on like
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most people I know its cohesion and
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nobody knows the future I’ve been
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scientific knowledge also means perfect
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knowledge of the future obviously means
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that you know what future prices are
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going to be in top to the indefinite
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future and future demand a future course
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it’s total insanity of a question about
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it but this is the assumption and what
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happened was a frank night on the
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Chicago School really the original
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chicago school set up this perfect
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competition mall except they assume this
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is the way things were more or less the
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few deviations which are unimportant the
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the model by the way fourth of the 19th
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century we form iron jones iowa we’d
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former now whatever he does with it
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reuse it
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like a week more thoroughly much
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although she philosophically a still not
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troop that the angel Gabriel came down
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to him gave him some magic formula for
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multiplying is we are two million times
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he got an effect on the market alright
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and his so-called how Ronald a man car
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would bend a bit so it was even there
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not true but he has a peculiar thing is
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in the 19th century 19th century
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colonists were much more realistic and I
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told him I competition it didn’t assume
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perfect composition they were living in
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an agricultural so-called era it is
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assumed perfect competition error or T
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wheat farms but but in the the pure
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competition model comes in in the early
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20th century just when the whole week
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long model is going out the window
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because it is obviously irrelevant any
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right so the plank night people assume
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the perfect competition pure competition
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was moral pretty realistic this is what
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competition is and was and this is great
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none so far it’s gone and then in the
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early 30s Chamberlain Robertson
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independent Lake Edward Chamberlain one
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of most famous PhD theses ever written
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and Robertson book coming out of that
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thing in the same year 1933 essentially
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said I thought we’ll get back to this we
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get the run playing competition proper
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essentially they said hey wait a minute
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this is not the way things apart well is
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not like this you don’t have teeny wheat
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farms and every time I firm does
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something insurances as private if this
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is market every firm faces are falling
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demand curve and there’s differentiated
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product you don’t have every because
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that’s 12 you feel competition you have
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two million funds in every industry each
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one of which is reducing identically the
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same product you differentiate product
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of means is evil monopoly see because
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the thing is that if you’re if you’re if
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you’re you’re wonderful bratty producing
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a beverage is pretty similar tip Thomas
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silver cup it’s still different so
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different person my life L can love it
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then you see this would be monopolistic
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there’s only wonder that can produce one
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regret nobody else get into this and
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horn in on this
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on this on this area private decision so
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so that what Chamberlain Robinson did
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they said wait a minute this is not the
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way the world is a market isn’t like
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this the market is far from perfect more
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from pure and therefore it’s
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monopolistic and therefore its evil and
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therefore was impure therefore a
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governess gonna come in and smash it
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some life now the point is if like those
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Chamberlain Rob I don’t really blame the
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Chamberlain Robertson people because
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they were working within the matrix that
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have been accepted by that time I
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Orthodox economics Frank nice these
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people having composed this order on on
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orthodoxy economic and they accept the
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perfect competition model of being the
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popular one and the best thing that
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happened so what so on and without
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considering it a totally absurd unreal
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if they can be bad for you had it excuse
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me pretty almost self-evident any rate
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they said well look we haven’t died with
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far from and therefore the market is
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evil we have to do something about and
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seems to me this is almost as follows I
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don’t really blame them as much as I
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blame the original perfect competition
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model builders and any rate getting to
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the advertising end of this if the man
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curves were given if you’ve got perfect
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knowledge be consumers know everything
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it will consumers know everything
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automatically it all producers not know
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everything automatically of course
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advertising wasteful and nobody is right
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Maya advertise war both had ESP if I
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knew what make these sales gonna be
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tomorrow I have it looking paper you
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just automatically know that make sure
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you gonna film you know toothpaste first
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such as I should a to be no 20 Macy’s
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advertising then of course would be
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wasteful they know it they will never
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ties of course the pointer we ain’t
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omniscient we having our perfect
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knowledge and we have to know where to
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find out what night making you’re going
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to do tomorrow we have to read about it
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somewhere it something I want too much
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of it this is cool cold advertising
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unquote the assumption of waste only
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follows and the insane bizarre absurd
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assumption of perfect competition of
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perfect knowledge of the idea that
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somehow people know everything to begin
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with then
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have to learn the learning takes time
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and I’ve written somebody’s out a power
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woman for me the whole industry more
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information industry build around this
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and so instantly well the whole idea
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differentiated product I will get back
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to two there’s one of my pet peeve a
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differentiated products the assumption a
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part of most economists and what a
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private is differentiated between
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between brands that somehow this does
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this differentiation is artificial evil
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and imposed upon the consumer by some
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kind of brain wash I I will sail return
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of this i want to say flatly right now
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I’m not being brainwashed and I say the
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Wonder Bread is may is better than tasty
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bread nothing to do with advertising or
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pretty girl being advertised on the
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commercial anything that’s where just
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like taste better okay we’re actually
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advertising again you see that the man
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curve number we have to give the given
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the man curves close given that we body
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automatically this is the man code for
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what is an X equation to make her feel
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product crónicas also given and this in
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this never-never land of orthodox
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microeconomics products are given so
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nobody has to develop any new ones I
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mean they care that they’re there that’s
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all they wonder bread somehow drops down
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from the sky is awesome these are
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calling it no mr. wonder ever exhibits
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at that the thought of the idea of
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Wonder Bread nothing ever gets created
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new so the whole problem innovation then
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comes into the picture and actually do
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blackness that’s a terrible studies in
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advertising and which products
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advertised more than others the products
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are advertised more than others others
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for example and this is very common
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sense kind of thing our new products in
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other words Wonder Bread all like you
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advertise a certain a man basically
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people heard of it but how about a new
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product coming in perfume for example is
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very high that’s right it perfumes very
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high turnover piece new perfume comes on
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a commune
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you have to ever have to inform the
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public of it they’re my ticket Dillo
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whoever they resume is as a source there
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somehow it’s one of whom the public’s of
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high quality or what you think my
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colleagues our calls are their attention
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so that there for them and the first
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couple and any product and the first
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couple of years of a new product as the
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highest percentage of advertising then
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when it gets established a Windows
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market the percentage of advertising
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usually falls off so you have to inform
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people of a new product you also by the
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way I have to inform them even if it’s
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not new you have to inform the new
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generation coming up there is a new
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generation of kitties coming up on
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midnight may might never have heard of
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Wonder Bread for example it has to be
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informed of it and you have to remind
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the oldsters because people don’t have
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to people who don’t have infallible
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memories they might forget somehow by
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Wonder Bread email me it’s unlikely but
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other is there not one of the red
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fanatics it my treat forget they might
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walk down the street one day and by some
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other bread unbeknownst not having a
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numbered about Wonderbread self they
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have to be reinforced reminded in this
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situation existed for this product ok
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I’ll get back to that to the actually as
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if as new products are obviously need a
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lot of advertising advertising is
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extremely important form of competition
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rather than being a foreign monopoly
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again the reason is not only wants
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supposed to be for monopoly whore in the
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textbooks is because by definition or
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products a uniform and therefore any
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differentiation in differentiation
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products within an industry within a
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broad field will broadly define industry
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any differentiated product of somehow
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monopolistic but an actual practice when
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products are differentiated when there
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is a different something wonderful and
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safety bread etc then advertise it
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becomes a form of competition of one
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competing with your rival and part of a
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way you restrict competition to outlaw
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advertising
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now for example this is done in several
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fields of eg the medical profession
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already talked about one of the ways in
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which medical competition is restricted
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between doctors is a so cool ethics so
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cool f of medical ethics which says each
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doctor is nasty to advertise its Nancy
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to put up a big sign in front of your
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building so far it’s only a little
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client isn’t live a big sign oh good
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service this one was strictly avatar for
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the for restricting competition some of
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others even more blatant other laws and
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many states more than any state’s
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prohibiting pharmacists from putting up
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signs in the store advertising or
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listing price of their prescription drug
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his interesting point a pharmacist are
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prohibited by law from having a sign i’m
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saying they can do it for
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non-prescription drugs whether haven’t
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got this tight monopoly you can do it
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for vitamin building into a through her
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hair spray it stuff like that i can have
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a sign up on the store sign 35 central
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such as that i can’t do it for
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penicillin i can’t do it for other
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prescription drugs reason is that would
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be conformal competition obviously pedi
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if the public knew proportionately
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public you need your penicillin fix you
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go to your friendly neighborhood
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drugstore if you could shop around a bit
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by going a three or four drugstore
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pointing out the prices of with this I
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then you might learn the price will come
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down from what it is now this way since
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advertising its form listing advertising
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listing price is a format rising
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obviously its form that most people
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don’t attack too much they don’t realize
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its advertising but listing of my truths
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in the store and the wind bag just as
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much advertising calling attention to
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the public atop your product and what
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the prices just as much advertising is
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getting commercial on television also
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cheaper of course but says outlawing of
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this is a method by which is my friend
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Gayle brosman point as and I said by
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which competition can be made in the
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drug industry and outlawing is another
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by which this is this competition is
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strictly homeboy own to the pharmacy
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business is another
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yeah another hot one okay also an
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economics and economic theory the big
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distinction is may all of time this is
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part of a whole competition and I
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believe thing to the big distinction is
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made between called production co op
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phone quote and quote selling cross
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unquote assumption is that production
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cost is ok as legitimate yeah for you
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have to spend it paid money you have to
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pay out money in order to produce
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something so that course I think course
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a certain amount of money to make a high
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five set that’s ok but not ok what
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illegitimately school evil monopolistic
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now you name a pejorative term what’s
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not okay is selling course meaning
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getting these in getting their hi-fi
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sets out from your warehouse and is our
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hands of a public anything of that sort
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advertising listing of price marketing
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direct mail any of these things are
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selling course somehow is the legitimate
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why is it only general one of the
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reasons there’s several reasons already
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mentioned one of the reasons is
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according the economic theory that
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production cost is ok because you’re
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doing it to your be incurring these
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production course in order to fulfill
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your demand curve meet the demand curve
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like the main server is there any other
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they are the mantle high spice up and
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you’re incurring costs in order or to
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meet the demand but selling costs are
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evil because a guy who’s incurring it is
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trying to increases the man current
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trying to push it upward by satisfying
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and consumer better problem this is that
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that’s what production core far if I
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have insight you have a moving and
16:45
making a hi-fi set you’ve made
16:46
everything except the speaker you don’t
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have a speaker yeah well I yeah I didn’t
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put the speaker in what are you doing
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you’re raising the demand curve for the
16:54
product but that’s a speaker makeover
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the lot lower
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man curve up by adding a speaker if you
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polish the polish the surface put a
17:05
mahogany surface on you as a production
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cause technically you’re raising the
17:10
main curve what’s wrong with that that’s
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the whole shouting matches all map of
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the the idea of production idea of being
17:17
in business as product that you demand
17:18
so as high as possible for your product
17:20
a larger market as possible there’s no
17:22
difference between selling cotton
17:23
production causes of phony hood Lee
17:26
phony detection I’d say all production
17:28
costs are trying to raise your demand
17:30
curve from 0 he thought was nothing he
17:32
has enough of the man’s 40 tamantha
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nothing and as you keep adding stuff
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you’re raising a demand curve was of
17:42
course the the technolon the techno
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technical physical thing that’s a high
17:46
five set there’s not going to do a
17:48
consumer any good if it’s 500 miles away
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in a warehouse but something I got to be
17:52
transported it’s got to be call the
17:54
attention of the consumer and so forth
17:56
and so on another point which my la
17:58
mente over put some Liza’s I used to
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talk to back our official distinction
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collection cause it’s selling for if you
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take a package of any product you wrap a
18:09
nice ribbon around a nice red red ribbon
18:11
this is a production costs and
18:13
supposedly legitimate the other half you
18:15
take that ribbony and hang it on a store
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in which you’re selling a product is the
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evil of the selling coordinator
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legitimate because it’s not part of a
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physical product to see this brings me
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to another point about physical product
18:32
it used to be set back a 19th century in
18:34
the days of classical economics that
18:38
consumers are many cases are irrational
18:41
there’s a lot of stuff there’s not a
18:43
puffin economic food through history by
18:44
the so-called irrationality of humors
18:46
one of the reasons was that your
18:48
irrational this is sort of stuff John
18:49
Stuart Mill’s while a Victorian type
18:52
anyway of course he say is it well
18:56
people willing to pay a higher price a
18:58
certain product be in one in one store
19:02
than they are another story somehow
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they’re willing to pay more around the
19:07
corner in the art somewhere else and see
19:10
the irrational why are they insisting on
19:12
here
19:12
shopping around for a cheaper price
19:14
while are many there many reasons why
19:16
the physical product might not have the
19:18
same prize in different places the first
19:20
place location might be better I might
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be willing to pay ten cents more for the
19:24
same product around the corner and
19:26
schlepping downtown take some of these
19:28
sentences fair they get the same product
19:32
obviously location court comes into the
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picture but even more so this is more
19:37
relevant to the physical product of a
19:41
production course come across
19:42
distinction even more than that is more
19:44
when you’re buying something not just
19:46
buying a physical object you’re also
19:47
blind possibly Oh ambiance that goes
19:50
with it the service the whole atmosphere
19:54
this is all part of us of the package
19:57
consumers buying a to john stuart mill
19:59
was might appear irrational but others
20:02
of us they might appear very rational
20:04
for example supposing you’re buying
20:07
vanilla ice cream at the loot s or at
20:13
the edicts will take the two ends of the
20:16
socio restaurant spectra how let’s
20:19
assume from it it’d probably be better
20:20
ice cream loose puck watch the mac let’s
20:22
assume for men of the same damn ice
20:24
cream as many as many left wing and my
20:26
market types will say it’s the same
20:28
thing if the same ass run but they are
20:30
they they just put a bit from brand i
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it’s assume for a minute playing ice
20:33
cream bought both of which were bought
20:35
from dryers or whatever and and then Lou
20:38
test across TR the plate or whatever
20:40
position this is ice cream Anita’s
20:43
report makes funny sent the question is
20:47
it irrational the going to lose happen
20:49
just to see this ice cream instead of
20:51
being the same I things are much cheaper
20:52
right no it isn’t it because of the
20:54
tension out just the physical ice cream
20:56
you’re also getting much higher quality
20:58
service a much much prettier restaurant
21:01
are you getting a getting forming
21:04
service sort of service thrown at you
21:07
with disdain and contempt I getting more
21:11
pleasant atmosphere you getting the
21:12
possibility or the probability of seeing
21:13
John Lindsay of the next table or
21:15
whatever those are like that sort of
21:17
thank you pay for it
21:20
you getting only thing all these
21:22
associations and and services intangible
21:25
services / rap papa de loup s agenda but
21:28
you’re unrelated really or are not the
21:30
same not that’s simply the physical item
21:33
that you’re actually eating and you want
21:35
to depend people willing to pay for that
21:36
obviously they’re willing to pay for
21:37
that and to say this is irrational
21:39
simply not seeing of the physical object
21:43
is not the only thing is being purchased
21:45
the faithful for the atmosphere the
21:47
service but the external factors of
21:50
equal and so forth the ambiance getting
22:00
back to the differentiated product now
22:02
there is this notion as I say which came
22:06
in a Chamberlain Robertson they have a
22:08
like that in a broad industry and it’s
22:10
brought this industry is not the client
22:12
too clearly but in this tree looks like
22:14
spectrometers definition any
22:17
differentiated product within that any
22:18
brand name is really ought official it’s
22:21
differentiated only by advertising by
22:23
coming on a part of the producer of our
22:25
brain washing but they’re really always
22:27
saying other the assumption is a really
22:28
old same thing they’re stalking the
22:30
consumer more because they’re you’re
22:32
paying more for it you have a brand
22:35
loyalty which has been induced for the
22:40
assumption is that the products are
22:41
really the same the public of consumers
22:44
think they’re different my contention is
22:46
this is the contention I first
22:47
discovered in Lawrence Abbott’s for
22:49
interesting book whole quality and
22:50
competition recommend everybody my
22:53
contention is really the time to really
22:54
just the opposite that what’s really
22:58
going on if the consumers don’t know the
23:00
difference in the do exist in other
23:02
words that the differences exist are
23:04
even greater than consumers think
23:05
they’re there are because we don’t know
23:09
anything you don’t know anything about a
23:10
field when we get to the whole concept
23:11
which economics books never talked about
23:14
how instead of learning to consume
23:15
assumption is not just a– i just sort
23:18
of a reflex action is a cultural value
23:21
things you learn how to do as you learn
23:23
about different areas of consumption
23:25
just the point you learn about a of
23:26
different areas of study and discipline
23:28
you learn about differences footsie when
23:30
you first start out
23:31
for example closing the portal you don’t
23:33
know anything about wine you start at
23:36
the only one keep the same all the same
23:38
junk thank you red white white too many
23:40
difficult bro Powerball take the sands
23:42
oil change stuff Leslie your initial
23:44
reaction some people always have this
23:46
reaction others as they keep on start
23:48
learning more about wines and this one
23:50
is different they can except respect
23:52
rent if they get far enough into the
23:53
field they could tell you which vineyard
23:55
it came from which slope of which
23:57
million or what year all that and the
24:00
point is so only this fantastic
24:03
difference between lines most people
24:06
don’t care about the different therefore
24:07
don’t see it no evaluated but the point
24:09
of the differences are really there
24:11
rather than differences being artificial
24:13
differences are really they’re the
24:14
consumers are they trying to have more
24:16
about the complex more about the area
24:17
discover these differences more they go
24:20
on but rather than brand names being
24:23
artificially different they are very
24:25
they’re right on target say for example
24:29
in New York State champagne is exactly
24:31
the same thing in French Champagne is
24:33
absurd anybody knows anything match
24:34
champagne it’s not an officially
24:37
differentiated product and it’s closed
24:39
for every area consumption goes from
24:40
music that goes for at some area of
24:44
music pressure thing as all noise that
24:47
as you’re consuming more of you also the
24:49
differences and differences being
24:51
composers in players etc etc and you
24:54
learn more about differences a little
24:56
time same way about baseball somebody
24:59
doesn’t know anything about baseball
25:00
think they’re all baseball players of
25:01
the same for all the same Junkers what
25:02
they’re waving it back as you learn more
25:04
about it you find out is enormous
25:06
difference me willie stargell on the kid
25:07
around the block and so well and so on
25:10
now the interesting thing is but people
25:14
like Galbraith Lazar with a fantastic
25:16
small bonus area
25:20
always says in everything which the
25:22
masses by is he is full of st. stuff all
25:25
differentiate artificially
25:26
differentiator but he buys of course is
25:28
all very subtly discriminating in this
25:30
one he would never say for example the
25:32
his economics book is the same they’re
25:34
all other economics books I mean why not
25:37
say that all textbooks were saying only
25:38
come explains all the same junk and
25:40
that’s it as you learn more about
25:42
economics abortions find out there’s an
25:44
enormous differences if you want to
25:46
learn more about it thanks the enormous
25:49
differences if I our Galbraith has
25:50
really differ from other people and
25:52
again and the service sector except and
25:54
I’m sure gal by himself aside he’s very
25:56
different other people to butts in the
25:59
area that he doesn’t like he’s not
26:00
interested on such as Wonder Bread I’m
26:03
sure he was I’m sure I’m sure the gab
26:07
rights would say oh that’s just out for
26:08
Yuri I’m truly already say wonder Broz
26:10
the same st. junker the wall of bread
26:14
I’m able stayed another difference here
26:16
I’m a big Pepsi fanatic to most people
26:20
who don’t care about colas one way or
26:22
the other home largely a person call it
26:24
with em Pepsi and coca-cola saying I
26:26
made it for the fantastic differences
26:27
between have seen coke I could talk
26:29
about that at length
26:33
so the real Pepsi fan is you i’m sure
26:36
and i saw it as i was a little kid
26:37
learning about cola i’m sure i froze all
26:40
the same to but I was only look at my
26:43
became a fishy Allah with a steel i
26:44
realized that pepsi is much better so so
26:50
rather than these differences being
26:52
artificially created by advertising by
26:53
evil businessmen who have their own
26:55
brand names i would say that the
26:57
businessmen are just starting off
26:59
tapping the enormous differences we
27:01
really use this ok so what the
27:18
advertiser has to do yes the same people
27:22
new products is before people know
27:24
prices for the products if it’s for new
27:26
generations of consumers what’s going on
27:28
just to remind even older people even
27:31
even veterans what of the existence of
27:35
the product or the other improvements in
27:36
the product and so forth yeah he’s in
27:39
other ways he’s competing for consumer
27:40
attention here’s another point of anti
27:42
advertising people donors don’t seem to
27:45
understand consumers not only doesn’t
27:48
that consumer have perfect knowledge
27:49
consumers time is limited his energy is
27:52
limited i mean is the only certain a
27:53
member of things that you do it day in
27:55
you’re bombarded with different
27:57
suggestions plans proposals etc
28:03
a function of advertising is trying to
28:06
call the existence of a product you’re
28:09
the attention of the consumer this busy
28:11
harassed consumer and trying to say hey
28:15
wait a min look we got this product here
28:17
it’s really pretty good and so forth
28:18
thanks for example what the pay for
28:23
example of gas station is enormous
28:25
report anti of enormous amount of course
28:26
of anti billboard hysteria among
28:29
intellectuals the thing for example
28:31
you’re driving along you’re likely to
28:33
have seen gas and if you prevent anybody
28:35
from putting up a sign up there spamming
28:37
I feel how you find the gas the gas
28:39
station I mean unless you have cool
28:41
knowledge of the area which most drivers
28:43
don’t have you’re not going to find it
28:45
unless somebody some of them somewhere
28:46
up there as a sign saying gas with
28:48
flashing lights for something and so the
28:51
function of the ABS of advertising sign
28:52
is a form of public call the attention
28:55
of public accuser here’s some gas
28:57
available anti bug board fanatics who
28:59
want to eliminate a little sign Tebow
29:01
boards with means everybody will have a
29:03
lot of gas breakdowns maybe that’s what
29:05
they want professor Kerzner my colleague
29:11
who’s written some very actual excellent
29:13
stuff on advertising points out also
29:16
that interesting thing of what happened
29:19
and why you or he teaches during the
29:22
height of the campus revolution back in
29:24
let’s ignite 5970 famous campus
29:26
revolution period only they only anti
29:29
advertising new left we’re using the
29:32
walls of course silver and why you was
29:34
there with a billboard when we anti
29:37
blueboard types of putting book boards
29:38
up wall posters and the thing is that as
29:42
they kept going they kept competing
29:44
consumer attention because obviously the
29:45
the kids were being hella a lot of riots
29:48
to go to and so forth other things going
29:51
on so the slogans could get kept getting
29:57
punchy or in cashier the signs on the
30:00
one a little poster who got began to get
30:02
bigger and bigger and we gonna say hey
30:04
wait a minute dolls and set to separate
30:05
our comes of uneven we use a little bit
30:08
a little bit of fraud in their habits
30:10
like thanks sex you know the big letters
30:13
inside come to live in your SDS beating
30:15
or whatever so one of the old techniques
30:19
which they attacked early and the
30:21
commercial front began to be used on a
30:24
new life because that’s what they were
30:26
doing is the same sort of thing they’re
30:27
trying to get the consumers of their
30:29
constituents they attention so they can
30:32
try to induce them to do something buy
30:34
something go somewhere or whatever as a
30:38
matter of fact I think what we see
30:40
pretty well this brings us of the famous
30:43
photographic attack on advertising we
30:46
see pretty well what businessman are
30:47
doing desperately almost this courting
30:50
the consumer consumer is the King the
30:53
king on the hill and then business time
30:55
trying desperately get the consumers
30:56
attention court the consumer side by
30:59
this product you’ll like it and so 4 and
31:00
so on and this seems to me pretty pretty
31:04
conclusive evidence in itself but the
31:07
consumer is not being determined like a
31:09
push button too soon as you see
31:12
something a rush out and buy it there
31:14
was a whole the whole atmosphere is
31:15
completely different the whole attitude
31:16
and part of business matters not hey you
31:19
go out there and buy this product the
31:21
whole atmosphere is wait a minute stop
31:22
here you like it so far and so on mooing
31:25
porting the consumer and Inter word true
31:31
how the consumer was determined by this
31:33
is over a robot manner then for example
31:36
that we no need for enormous enormous
31:39
think increasing subculture of
31:41
occupation which most of us don’t know
31:44
much back will market research market
31:46
research is a big industry and the whole
31:49
point of market research is devoted only
31:51
one thing as for business matter trying
31:54
to find out desperately in advance will
31:56
consumers like this product will they
31:58
like this ad test marketing the ad test
32:01
marketing the product trying to find out
32:03
what kind of product consumer well like
32:04
before enormous amount of money is
32:06
invested and so forth and so on now the
32:09
point of this the point is almost
32:11
desperate quest will try to please the
32:13
consumer in advance try to find out
32:15
what’s going what he’s going to do will
32:16
you like it will he not like it Oh point
32:18
sees me pretty clear the consumers the
32:20
king of a walk this he was being wooed
32:23
and courted and
32:23
none of the consumers being pushed
32:25
around like a robot because the
32:27
businessman could push consuming around
32:28
the robot it certainly wouldn’t invest
32:30
many of the market research they just
32:32
put out some product you know widgets or
32:34
yuck so something like that and say oh I
32:36
go out there and buy you up so everybody
32:37
rush out and buy it no need from market
32:39
research to find out whether they like
32:41
yuk’s in advance and of course of the
32:46
the famous flop aruz which even
32:49
Galbraith admits he says these are
32:52
exceptions which approved rule even he
32:55
admitted eggs they’ve existed I know
32:56
with it cases don’t happen to all come
32:59
to that folder is market research for
33:00
the businessmen definitely trying to
33:02
find out in advance if they’re gonna
33:03
lose a lot of money but cases there are
33:05
cases were after enormous amount of
33:07
ballyhoo implicitly and advertising the
33:10
product is producing stores for
33:12
completely on a ton of space swaps is of
33:16
course the famous case of the episode
33:17
car which is a total flop arou those are
33:20
the case of course fan core fan shoe or
33:24
the idea was you the idea was you see
33:27
that there’s a new kind of loop thing
33:29
which is better than leather because it
33:30
doesn’t break in at all just stays there
33:32
like a move and your foot breaks in
33:35
unfortunately this country kick the foot
33:38
caves and yet before the let the weather
33:40
of course man people didn’t like that
33:42
people wanted to feel they would control
33:44
of the shoe at those it’s too you can
33:46
follow them cuz only which court found
33:48
was also pop the rule the core fan shoe
33:50
so these are two heartwarming examples
33:54
of undetermined consumers obviously
33:56
thinking we sitting there their rafts
34:09
the whole determinate argument as a
34:11
matter of fact just like in all other
34:13
cases all other cases of determinism I
34:15
should say of other many instances of
34:19
ideas for example determinism just as in
34:21
those cases in the same way with
34:22
advertising there’s always a hidden
34:24
escape hatch for the terminus or where
34:26
the Assumption always is you you and you
34:28
out there you’re all a tournament I’m
34:29
not why I’m somehow out of it I’m
34:32
floating above the cloud telling all you
34:34
jerks that your old eternally obviously
34:37
something peculiar about this kind of
34:40
reasoning if everybody is determined by
34:43
advertising and brainwashed an early age
34:44
and all the rest of it and and they and
34:47
they say go out and buy mr. clean
34:49
everybody rushes out in violence or
34:50
queen if this is really the way things
34:52
work how come but Galbraith and every
34:55
left-wing you like show you ever met how
34:57
come they’ve risen above wallet and not
34:59
the terminal anything by the hands thing
35:01
presumably are they are free-floating
35:04
intellectuals floating on top of
35:07
levitating above a crowd and not subject
35:09
to the determining influence while
35:12
either they’re superheroes and somehow
35:14
somehow hello ugly escape this I know is
35:17
my asthma which I somehow doubt or there
35:21
ain’t no determinism I think this
35:23
corrects the correct solution of this I
35:27
don’t think they have any sort of secret
35:28
secret you know immunizing potion that
35:32
has prevented them from being to
35:34
determine while all the rest of us have
35:37
been robotized another point of person I
35:41
think this is a crucial point at the
35:44
point where the epsilon the core fan
35:45
also is on the market and particularly
35:48
on the market and we get to advertising
35:50
there’s a direct feedback or direct
35:52
reality test or direct market test call
35:55
it a reality set of a product I don’t
35:57
care how much junkie advertiser you
35:59
subjected to I don’t care if you sit
36:01
there the housewife sit there all day
36:03
and then and mr. clean was so out of the
36:05
kitchen one thing mr. Coyne
36:07
you go out of your body mr. clean to
36:09
find out I mean very quickly there’s a
36:12
giant appear and wish you another
36:13
kitchen if not then either if you really
36:16
believe this nonsense then you have to
36:19
have them like you something like 30 you
36:22
really believe that then your
36:22
disillusion me a recent sizes there’s no
36:26
mr. Queen is those genie that come so
36:28
many pumps top and all the rest of it
36:30
then you forget about it yesterday
36:31
that’s the market test the reality test
36:33
of you know pop up advertising so you
36:40
find out you find out very quickly you
36:42
as we found out about course on your
36:44
foot and so forth so on if point out the
36:46
radio works if I not worthy Turgeon work
36:48
and all that stuff you find out by the
36:50
room with a mullet reality test the
36:53
market test let’s see if it works or not
36:54
in other words advertising can only do
36:57
so much you can call your attention to
36:58
something you might even get you to buy
36:59
them the door thing a first time there’s
37:02
always this test you find out you get if
37:04
you win the girl who you gleam or
37:06
whatever it is if you don’t that’s it I
37:08
mean I think the reality test works
37:12
needs the same thing is there is one
37:14
area of life one very large area of life
37:18
for neither Galbraith which means
37:20
Galbraith doesn’t talk about the less
37:22
liberal and lecture was gonna talk about
37:23
ever ever connection with advertising
37:25
there’s one area of my fav is no reality
37:27
test there is no direct market test
37:29
there’s no feedback as though nothing
37:31
and that’s the area somehow I say these
37:34
people never criticize advertising this
37:35
area this is a political avatar whole
37:38
area of government only area of politics
37:41
if you will like me my friends I will do
37:43
such as such that’s sort of advertised
37:45
and somehow the political process but
37:49
you can’t you can’t fly now to Muslims
37:51
the clean work will get you out of the
37:52
kitchen or but you know when the girl
37:55
will gleam in a sort of stuff but
37:57
there’s no no direct test is no nothin
37:59
is a cloudy promises it’s in this area
38:03
political advertising it has full sway
38:05
where people can be sucked in the
38:07
believing stuff which isn’t true and
38:10
some of us somehow left liberal never
38:11
never never discuss this problem
38:18
well this brings us to really bring this
38:21
the government home question of
38:24
government visa V the market and I
38:26
connection okay and the more than one of
38:38
the one of my disagreements one of my
38:40
minor areas of this agreement my mentors
38:42
in the free market economics that
38:43
because of Mises will refer to the
38:46
market as the democracy of the market or
38:48
the ballot box of the market I think
38:49
that’s a smear on the market I mean the
38:52
process is what happens in so-called
38:55
democracy is so inferior it’s on Duncan
38:57
strength as far as consumer choice goes
38:59
or feedbag earning that sort so inferior
39:02
to the market that they don’t really
39:04
bear comparison at all for example on
39:08
the market you buy your product your
39:09
mind mr. clean you try it you don’t bite
39:12
anymore you buy some more whatever you
39:13
have this direct test those you complete
39:15
control your own individual purchases
39:17
and you’ll have your income and you
39:19
decide what to purchase and which things
39:21
to purchase itself or you can decide to
39:23
keep buying it or not buy it and you
39:27
have an enormous number of enormous
39:29
number of choice I mean even even though
39:31
a lot of a lot of griping about it
39:32
should be twice as many automobile
39:34
companies or something like that still
39:35
one only have thousands of thousands of
39:37
thousands of ways in which to spend the
39:40
consumer dollar a thousand thousands of
39:42
thousands of different entrepreneurs are
39:44
trying to sell us stuff given we have an
39:46
enormous range of choice is a choice
39:48
that keeps growing arranged it keeps
39:50
growing all the time let’s turn in
39:52
contrast the government and here’s the
39:54
market which is always being a packaging
39:55
a monopolist right and we turn the
39:58
government which is usually being
39:59
praised as heroic them so them are
40:02
chronic and the people who will and all
40:04
that well the cut in the field of
40:06
government we have situation where first
40:08
of all we vote we test for ballot not
40:11
every day for for mr. cleaner against
40:13
the claim at every four years once right
40:16
every four years at best as best we
40:22
really think the majority rules which is
40:24
that dubious anyone does it seem
40:26
familiar majority rules as best I’m 51 /
40:29
some of the people will get their away
40:30
but the other
40:31
forty-nine percent our shaft is another
40:33
four years other words they can’t say
40:35
why don’t want mr. Queen they can’t say
40:38
that because the majority in bozeman
40:40
that late pop you so you’re going to
40:41
watch them to clean before years oh no
40:43
no we’ll know the reason why free high
40:48
percent can’t opt for this is the
40:50
whatever also edition of the fact you
40:55
have a 51-percent crushing the 49th
40:57
respect ever you have instead of mine in
41:00
individual sort of each individual by
41:02
individual things have this majority and
41:05
quotes buying the whole complete package
41:08
me like one guy for president one guy
41:11
for partners when it’s edrick and that’s
41:12
it and he works his role with you for
41:14
four years that was your night you know
41:17
you’re not saying well i think i like
41:18
your vote for your rent policy but
41:20
against your foreign policy or whatever
41:21
no no it’s a complete package wrapped up
41:24
and whether you annual and when you vote
41:26
for one guy you’re getting is entire
41:27
package period there’s no way to break
41:29
this down I’m market of course you’re
41:31
blind mr. clean you’re not buying it
41:32
you’re buying high five says somewhere
41:34
also not mine and so forth every
41:36
individual service that will can add to
41:38
their individual components and to the
41:41
individual consumer of course the
41:43
government’s probably different
41:44
government you have a masses
41:45
collectively buying a pig in a poke
41:48
literally private you’re buying is your
41:50
heart you’re putting one guy in you’re
41:53
not sure what are you going to do
41:54
there’s no there’s lots of fraudulent
41:56
advertising when I get in overall raised
41:59
expenditures for everything and cut
42:00
taxes that’s first up ahead I’ll end
42:02
inflation and after four years the guys
42:05
violate every one every one of us
42:07
promises and nothing happens till he’s I
42:09
said to jail for fraud I can probably
42:12
get a pension from the taxpayer live the
42:16
rest of his life though there’s no
42:19
feedback at all is no reality test at
42:20
all the cloudy vague vague promises
42:24
vaguely Railly met vaguely Wrigley
42:27
repudiated nobody knows what happened
42:29
sorry that’s a four years who remembers
42:31
anyway if you haven’t said he can’t
42:33
remember what happened two weeks ago
42:34
your purchase who’s gonna remember what
42:37
the guy did three years ago oh so an
42:41
additional an app on the market it’s
42:43
likely usual
42:45
a reproach of monopoly etc etc there are
42:47
thousands upon thousands of choices
42:49
affirms businesses to buy from in
42:53
politics and government is only to a
42:55
duopoly we have some of the Giants
42:58
duopoly Democratic Party and Republican
43:00
Party a couple of minor parties who
43:02
don’t amount to much and these two
43:06
parties not only are there only two
43:06
parties but everybody loves this every
43:09
liberal with other scientists if you
43:11
ever take a course in political science
43:12
what a wonderful thing we have with lori
43:14
is two-party system they’ll be here to
43:17
talk about a glorious to fern system now
43:19
tub all the evil in monopolistic if
43:22
they’re only if they’re only three firm
43:24
the automobile industry everybody thinks
43:25
is the world’s come to an end let’s okay
43:27
even have two firms on the entire
43:29
government apparatus and only two of
43:32
course we have a duopoly is classical
43:35
economics shows that tend to have
43:37
collusion you’re only two guys why not
43:39
so the collusive de la playa Democrats
43:41
or Republicans sound very much alike and
43:44
it promises are very much the same and
43:45
then what do you do where is our choice
43:47
then we have no choice whatsoever so
43:50
they are wonderful Democratic choice
43:52
which were over every four years is a
43:54
choice between 11 for another fraud each
43:57
of which are pushing almost the same
43:59
ideology the slight differences of the
44:01
rhetoric in order of differentiator in
44:02
order to differentiate the product
44:04
artificially a little bit and so here’s
44:06
where the only attack on monopoly
44:09
differentiated product a collusion on a
44:13
non concentration of size unlike of
44:17
choices all that sort of stuff all the
44:18
stuff really applies the government and
44:20
yet somehow the liberal economist never
44:23
never applies the government never even
44:25
right wing week on the phone apply they
44:26
go no place you get the problem analysis
44:30
somehow government a cyclist fantasy not
44:33
not you can’t yell point wouldn’t know a
44:35
standards to it that’s why I say that
44:39
when you say the market is I’m a chronic
44:40
you’re really smearing the market well
44:49
let’s take the uniform uniformity of
44:52
51-percent let’s take a specific example
44:55
but your lease until a year or two your
44:57
two or three ago
44:58
for the hallowed example in American
45:00
life and any criticism of it was
45:02
considered the equivalent of criticizing
45:04
motherhood and apple pie for motherhood
45:05
a sort of under attack now and I know
45:07
about apple pie I can’t hear a it’s now
45:10
sort of almost legitimate to criticize
45:12
the public school system let’s take the
45:16
public school system you have it here’s
45:17
a system run by the taxpayers let’s say
45:20
run by the majority of each area well
45:24
you have to have some kind of here you
45:25
have this product you have to run it in
45:26
some way public school and it has to be
45:29
decision there’s all sorts of important
45:30
decisions to make should it be
45:32
traditional education should it be
45:34
progressive should be from combination
45:35
of the two should be sex education to
45:38
the religious education should it be
45:40
pushed capitalism or socialism port you
45:42
have dozens of different very important
45:44
questions the decider and the point is
45:46
whatever the decision is usually the
45:48
decision will be bland centrist and not
45:53
not annoying too many people that would
45:56
be the usual bureaucratic majority kind
45:59
of decision the point is once the
46:01
decision is made that’s it there’s no
46:03
room for the scent not getting out from
46:07
under the uniformity and cetera whereas
46:10
the private education where the parents
46:12
and children are control consumers are
46:14
control then there instead of being lame
46:17
play for public school which is imposed
46:18
them on the whole country a whole area a
46:21
robot like you have a little sort of a
46:24
different different groups of parents
46:25
will set up and sponsor different kinds
46:28
of schools you have you have christian
46:29
school parochial school secular schools
46:32
progressive traditional left-wing
46:34
right-wing etcetera etc and the
46:36
consumers and will determine what kind
46:38
of school they want instead of having a
46:41
uniform centrist kind of uniformity
46:47
impose on the top with a market you have
46:50
a normal enormous range a wide range of
46:53
diversity and diversity covering a whole
46:58
spectrum what people are interested in a
47:00
willing to pay for it is again a
47:02
difference between a government in
47:03
action and private individuals an action
47:06
on the market because the market really
47:07
means voluntary action that’s really the
47:10
zelda voluntary act
47:13
take for example another educational is
47:15
one of my favorite examples on
47:18
educational front but their education
47:19
doesn’t only mean schooling obviously we
47:21
learn things all the time and one of the
47:23
ways in which we learn things the
47:25
newspapers and magazines ah now if it if
47:31
we should have public schools and we
47:33
should also have it seems to me public
47:34
newspapers and magazines if you imagine
47:37
imagine the kind of kind of magazine
47:39
will come out you may be kind of
47:41
newspaper comic that we emerge you
47:42
infamous from a government girl you know
47:44
your chronic handling of it hanging
47:47
imagine how monstrous will be you might
47:48
have all can you imagine what a painter
47:51
I can who would read it obviously nobody
47:53
worries about taxpayers would kick in
47:55
for imagine for example the interesting
48:00
decisions will be made Hoover supposing
48:02
losing how will they decide on a like a
48:05
their space with a scarce amount of
48:07
space for any newspaper any magazine how
48:10
they decide who gets into it should they
48:13
have this left winger image I have a
48:14
right winger on it how do they decide
48:16
this and of course every decision
48:17
becomes a political decisions as the
48:19
taxpayers who was the paper of this so
48:21
they will wind up with a bland doesn’t
48:23
half you possibly imagine I would not be
48:26
running for the Thurmond who spectra
48:28
weekly if I wanted to do it okay so the
48:31
result of this is courses as a cycling
48:34
the level of government education
48:35
whether it’s schools or newspapers and
48:38
magazines is recycling of any kind of
48:40
independent thought any kind of
48:41
criticism any kind of any kind of
48:43
opposition of the status quo especially
48:45
why public schools of course inevitably
48:47
become they become the the the engineers
48:51
of consent engineers of general public
48:55
support for the status quo for
48:57
government itself it’s inevitable
48:58
relative how they even start at that too
49:01
found the public school system if we get
49:03
by innocently enough we get back to the
49:05
origins of the public school system in
49:06
this country or abroad we find out that
49:09
the origins are precisely that but the
49:12
people then were much franker than they
49:14
are now and they were the artist was
49:15
specifically the more the public and
49:18
doesn’t filling general general
49:21
government
49:23
way of thinking a beating for the
49:25
government of meeting for the powers of
49:26
the case of the United States the first
49:29
public schools were no England of
49:30
Massachusetts in Puritan Massachusetts a
49:33
mold of public and more each little kid
49:35
in the Puritan framework every kid
49:38
becomes on such fast or Denis and I was
49:41
that was an amazing made no bones bones
49:44
about it they were very frank and open
49:45
about that favor the object of education
49:48
schools was on doctrine eight shape the
49:50
Cour does everybody comes with purity
49:53
there was no democratic patina
49:57
surrounding the public school system in
49:59
the old days in addition to that problem
50:08
this is of course our lights too in
50:12
general as a whole problem of education
50:14
and a coke palm of use of resources
50:16
government at two later to addition of
50:20
this there’s also involved in the attack
50:22
on advertising a monstrous assault on
50:25
free speech interesting ly awful civil
50:28
libertarians will read half on civil
50:32
liberties in some areas somehow lose
50:34
their voice when I get that for example
50:35
cigarette advertising on television that
50:37
Lisa needs cigarette advertising on
50:40
television of the form of speech form of
50:43
expression yet the government is
50:45
outlawed it with no no as far legacy no
50:47
reaction whatsoever no no complaint of
50:50
griping to the American Civil Liberties
50:51
Union no nothing I see I far I’m
50:56
concerned liberties are under direct
50:59
attack one cigarette advertising is out
51:01
lord if we’re going to say that somehow
51:08
it’s fortunate because you’re not being
51:10
told at all times that you’re gonna get
51:12
lung cancer in cigarette Mekhi thing or
51:14
whatever if we if we can say that we
51:17
should outlaw for Joe and advertise yeah
51:20
brings up an interesting point if you’re
51:23
really going to a laurel four july
51:24
advertising all advertising it’s not
51:26
going to meet its somehow its promises
51:29
what will you do about campaigners while
51:31
we getting by government are we gonna do
51:33
about all these politicians we out lower
51:34
them while I’m almost tempted to say
51:36
yes it’s only my devotion of free speech
51:39
the brevet sooner outlaw a political
51:42
advertising I wouldn’t uh cigarette
51:44
advertising so that way is me much more
51:46
joint uh uh and yet somehow nobody ever
51:50
Kate’s not knowing that then of course
51:56
we can other even touch your areas ish
51:59
what about presser gown breaks for
52:02
example in his books some of us will
52:05
play is for general the quality
52:06
economics do we don’t give the
52:09
government those by the power thing was
52:13
he much really genomic and what isn’t
52:14
and anything which does not does really
52:17
be outlawed as being fraudulent you see
52:19
their lot of sticky areas here when you
52:20
thought outlawing instruments of
52:23
expression there’s a once on the
52:41
advertising in front basic again to the
52:43
attack on advertising by Galbraith in
52:46
his famous book the affluent society
52:48
which is one of my least favorite books
52:50
of all time one of these things hmm
52:53
gasps whoa in society I galbraith who’s
52:56
the first grade bestseller amount 1959
53:00
he told her there was a soul on earth
53:03
for people to act capitalism is evil
53:05
with who wear to a swollen I was before
53:08
they found out a cab with evil-looking
53:09
with two poverty-stricken three years
53:12
before that this is the anti excellence
53:15
gig any rate in there he talks about see
53:19
the problem is that he’s brainwashed
53:22
wants these things between we were
53:24
induced to purchase such as wonder of
53:27
right or Pepsi or whatever these are on
53:29
official warren to be called artificial
53:31
one and and is this very strong
53:35
implication and Galbraith unofficial one
53:37
means that they’re illegitimate or
53:39
improper there they should not be
53:41
expressed this isn’t this is a contrast
53:44
as Emily the natural wants a one-hour
53:47
natural ones this is well left pretty
53:48
vay that seems to me pretty
53:51
if he if he said it really does say so
53:53
unofficial ones I want that either that
53:55
are fine i discover from other people
53:56
learned of from advertising or from
53:59
friends or whatever if you really say
54:01
that you’re really outlaw and frankly
54:03
everything except the purely on sort of
54:05
sort of caveman kind of kind of want
54:08
like you know sort of sort of chewing up
54:11
the meat they sort of basing this is
54:13
pure subsistence everything everything
54:15
above pure subsistence your permanent
54:17
insistence then dismissed by Galbraith
54:20
at the artificial it’s a peculiar kind
54:22
of philosophic system he’s got why is it
54:29
artificial why is it evil or artificial
54:32
improper learn about once with other
54:33
people I for all people human beings are
54:36
not animals you don’t learn about stuff
54:38
fluence thanks they can only learn about
54:39
stuff either from our own experience
54:41
from other people’s experience so we
54:44
learn about once like you learn about
54:47
techniques and learn about once from
54:50
other people from friends and neighbors
54:54
or whatever and really the process is
54:55
what civilization is all about in many
54:57
ways in fact they were influenced by
54:59
other people and we learn about playing
55:01
some other people you try to outlaw this
55:03
makes me really outlawing the human
55:04
condition all together they’re very few
55:06
people you know and create their own one
55:08
today no votes are out of thin air
55:09
without consulting anything else
55:11
experience or any other person if it’s
55:15
ever been done it’s pretty unusual to
55:17
say the least I thought well the gala
55:19
bright even has done it and in the
55:22
learning process again I talked about a
55:24
learning process before learning process
55:26
also includes the process of learning
55:27
about what’s going on money mean you
55:29
learn about TV sets for example because
55:31
the first guy on the town by the TV so I
55:33
want to first comes at the only live
55:35
data hey it looks terrific anything you
55:37
more by yourself this is the process of
55:39
diffusion of new consumer products is
55:43
very similar the diffusion of producers
55:45
products incidentally yeah hi hack into
55:48
juvenile both written some very
55:49
interesting stuff which egalitarians
55:53
have always always egalitarians
55:55
throats justifications for differences
55:59
of wealth then come on the basis of
56:01
learning how to consume in other words
56:03
the first guy
56:04
the wealthy guy in town by the first TV
56:06
set and he and he buys it because you
56:08
know not too many TV says would come out
56:10
yet that’s pretty expensive he buys it
56:12
and Hazel riffing everybody learns about
56:14
it and then this then the knowledge of
56:16
the consumption spreads and the
56:17
consumers a mass market opens up and
56:20
more people buy it so eventually
56:21
everybody has a TV set so in other words
56:24
the wealthy people have a perform an
56:26
important social function of pioneering
56:28
and consumption up those don’t like that
56:32
approach I think it’s correct again
56:38
pointing out there’s always a first
56:42
person for everything we’re always the
56:44
first creator of inventions or producing
56:47
of production or new products was also
56:49
always first consumer of everything this
56:51
guy does I get the TV set first guy has
56:54
own private helicopter or whatever
57:01
interestingly enough now brace is
57:03
attacking in this book actual the size i
57:05
says one of my veins one of these in my
57:08
existence he’s attacking these
57:12
artificial was constantly frogs a book
57:14
and then money when he is talking about
57:18
a solution of a problem the solution is
57:20
we need he says is a vast multi-billion
57:23
dollar program of total using federal
57:25
funds to educate people they get changed
57:28
the assumptions they can do the right
57:30
things like listening the box are
57:31
reading his books or whatever whatever
57:33
it is for some reason these things are
57:37
not official listening the buddy was
57:39
doing the sort of things that Cowboys
57:40
want you to do like drinking fine wine
57:43
or listening a boss or reading Yahweh
57:45
for watching god forbid channel 14 oil
57:47
life Public Television goes at time New
57:50
York ah listening to uplift kind of
57:54
lectures all the time of this sort of
57:57
activity somehow not artificial but
57:59
somehow I’m on the same plane as rural
58:02
existence well just one of the many
58:06
contradictions in y’all break that’s one
58:08
of the things that as it’s a six in my
58:10
quarter this day
58:29
now we have I just say just a word he of
58:33
a very very white see top I just want to
58:35
say a couple words on it this sort of
58:37
thing to be talked about for weeks
58:39
that’s the whole relationship between
58:41
the market and ethics I’ve been talking
58:42
about how Galbraith a guy’s really wants
58:45
to do is change fuel people’s
58:46
consumption consumption patterns but
58:50
he’s really saying is somehow unethical
58:52
the by Pepsi and buy coke from I wonder
58:55
bread if it’s ethical or listen to ball
58:56
him by Galbraith volumes as implicit
59:00
position I can see the point about a
59:05
market is a free market is that it
59:08
leaves the public individuals on the
59:12
market free to follow their own values
59:15
of Paul their own ethics to buy whatever
59:16
they want to buy and they follow their
59:21
own codes the now you can say if you
59:26
want to but some of their purchases are
59:28
unethical from some position some other
59:31
position what I’m saying is that you
59:34
should try to persuade the person if you
59:37
want that is an unethical purchase
59:39
follows an outlaw and with the
59:42
difference here between coercion and
59:43
persuasion oddly enough Galbraith was
59:49
very very upset about but persuasion
59:51
involved in advertising and the
59:53
persuasion of laws and market kind of
59:55
selling quarters left bro not upset at
59:58
all about courses coercive actions of
60:00
the federal government the force people
60:01
to listen the boss or to do whatever
60:03
somehow that’s ok that’s not
60:05
brainwashing that’s not that’s not
60:09
artificial I think though that I think
60:14
you can say if you want to that certain
60:16
categories of purchases are unethical
60:18
but it’s kind of difficult to say that
60:21
for example a lot of people say that
60:22
it’s under which we’re spending too much
60:25
on cosmetics
60:27
so common charge Marga spent too much on
60:30
cuz Mike’s we should spend less on
60:32
cosmetics and more on bubblegum or
60:34
whatever the alternative is well the
60:37
thing is I I don’t know of any ethical
60:40
system which in growing that or crank
60:42
out a quantitative conclusion like that
60:43
what’s the optimal what’s the ethical
60:45
optimum cosmetics purchase I don’t know
60:49
I don’t think anybody else does either
60:52
you can try to make the case of
60:54
cosmetics or evil and should be
60:57
abandoned altogether I wouldn’t agree
60:58
whether that’s a possible case but the
61:01
say that should be ten percent less
61:02
purchase on cosmetics another or now I
61:04
don’t know anybody can really back this
61:07
up I’m not yet heard of Yanni anybody
61:10
sets forth a quantum system of
61:12
quantitative ethics and yet there’s a
61:16
lot of the ethical criticisms of the
61:18
mark of the sword kind of peculiar kind
61:20
of quantitative ethics there’s also of
61:25
course in this connection as the is a
61:30
familiar less little intellectual
61:33
critique of so-called materialism the
61:37
people the market the market forces are
61:41
too materialistic somehow encouraged
61:42
material is actually I don’t know what
61:46
Seth a yes we can’t forget the vague of
61:49
what sense of person is talking about
61:50
materialism if hitch mean concern with
61:54
purely physical objects or physical
61:57
consumption or something like that and
61:59
it’s really the reverse is the truth
62:01
because in the primitive period when
62:03
you’re everybody’s on mere subsistence
62:04
level everybody spending all this time
62:07
scratching our food nobody ain’t got
62:08
time to talk about to think about
62:10
economics philosophy or any of that sort
62:12
or high culture my culture only becomes
62:15
possible and there’s a certain surplus
62:17
fan of the living when the family thing
62:19
gets to the point where people have the
62:21
leisure thinking concentrating other
62:22
things secondly the cutest thing about
62:31
this materialism attack is and for
62:34
example somebody something will play
62:36
this guy making a
62:39
playing as part of making a lot of money
62:40
but if he produces writing stuff of the
62:42
public likes it’s too commercial too
62:45
materialistic and making millions out of
62:46
it works Iowa’s great novel making
62:48
practically nothing or pleased to mean
62:51
he should glory in this shouldn’t he
62:52
shouldn’t be griping about if he’s
62:54
really against materialism and money in
62:56
commerce and the fact he’s making
62:58
nothing out of it should be great joy to
62:59
him somehow it isn’t somehow the
63:03
conclusion from this is from our
63:06
anti-material is this but somehow the
63:08
other guys in material should be taken
63:09
away from them and hand it over to him
63:10
the anti-material well then it more
63:13
deserving with these material goodies
63:16
that seems to me an inner a
63:17
contradiction money and I materialist
63:19
it’s always sort of the implicit
63:21
conclusion wall is somehow either the
63:22
government should take taxi the
63:25
commercial people and give it over
63:27
handed overly anti-material us or
63:29
whatever it sees me a big contradiction
63:31
there oh one other thing I wanted to say
63:35
that government advertising and public
63:40
advertising and all that is that the
63:45
public service commercials remember
63:47
Paula vision striking I passively dolls
63:50
know tho those avail even then I
63:53
government they just something young a
63:55
beloved public age of private private
63:57
voluntary agency they are dull and
64:00
probably the most imaginative them turns
64:03
out to be complete fraud that’s a good
64:04
our old pal Smokey the Bear now turns
64:07
out was smokey the Bears went peddling
64:08
frauds or all over the years a
64:10
television because the there’s a split
64:13
you see among as conservationism
64:14
environmental office is just just
64:16
surfaced recently and that is that all
64:20
that’s a story about forest fire so none
64:22
of the bad thing is far as far as a
64:23
really good these are small-scale
64:25
natural forest fires you don’t have a
64:28
government rushing every forest fire and
64:30
stamping it out immediately I you have
64:33
some natural forest fire clears away the
64:34
underbrush that makes the pine cone hot
64:37
as of the point fees can then really
64:40
published in styles and all that you see
64:42
a little hazy on technological point
64:48
but my close friends only the nature of
64:51
field homies is true and then he can
64:55
refurbish yourselves and all that but
64:57
now you see what’s happening as they
64:58
stamp the government comes in and stamps
65:00
out every forest fire help I’d Smokey
65:01
the Bear as a theoretician of this they
65:05
don’t give a chance financial far as far
65:06
as they grow on the point fees on growth
65:08
there’s too much underbrush and then a
65:10
big shots fire companies and strikes
65:12
down a whole lot for us as a result so
65:15
the government messes everything up
65:17
always it also what areas involved even
65:20
Smokey the Bear seemingly harmless kind
65:24
of thing they’re kind of thing

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