Introduction to Economics – Part 4 – Murray N Rothbard

Part 4.

Introduction to Economics: A Private Seminar with Murray N. Rothbard

Costs are always ex-ante. There are no such things as social costs or social benefits. Costs are determined by how much entrepreneurs think consumers will pay. Costs are not determined by supply and demand. Nobody waits for costs to raise prices. Rothbard does not believe in cost curves.

Antitrust suits are often filed by one set of competitors trying to eliminate another set. Additionally, antitrust suits are money-making rackets for lawyers.

Interest is not just a loan; it is a time preference. Usury laws misunderstood interest.

Part four of seven from Introduction to Economics: A Private Seminar with Murray N. Rothbard.

This lecture as a Podcast: http://enemyofthestate.podomatic.com/

Sourced from: https://mises.org/library/introduction-economics-part-4

Source: Introduction to Economics – Part 4 – Murray N Rothbard – YouTube

http://www.readrothbard.com/introduction-to-economics-part-4-murray-n-rothbard

TRANSCRIPT

00:35
so only Exxon 10 before you spend your
00:41
time or ever this manager is before you
00:43
make your choices you have your value
00:45
steals your pick with you think of the
00:47
top buying it to you of course the
00:49
second highest value of course
00:50
disappeared asking you do it if you do
00:52
it there’s no more cost you can go back
00:55
and say well gee I should have done that
00:56
I didn’t do that or something that’s
00:57
sort of history that’s not cost so of
01:01
course is ephemeral and disappeared
01:02
after the action occurs there’s a
01:06
question for example of mm-hmm so full
01:10
Sun cost we’re off for example you you
01:15
businessman spends $10,000 on product
01:18
produces a product they like to sell at
01:20
the temp at 412 lat
01:22
let’s anticipate the profit fingers
01:24
satisfied he’s already spent at that
01:27
time after the product is there anything
01:29
so we can sell them talk about nobody
01:31
wants to buy it he sells it for five
01:34
fast but the plan so but if he says to
01:38
himself I can’t buy sell for less than
01:39
ten mazzard then I I my course would be
01:42
excessive I have to hold on to it not
01:44
sulla pretty good thing else
01:46
courses already disappears too bad he
01:49
spent ten thousand but he’s done it
01:51
already now he’s stuck with this thing
01:52
now it’s the figure what’s the monk most
01:54
value and get for and so the twice
01:58
master that’s five thousand no more
02:01
I was already expended in Spanish I
02:03
looked out the window you know tries to
02:06
get what you can get for it so as a
02:11
result they are facing something on
02:14
costs of course supposedly are as an
02:17
entity it’s not my business
02:19
that’s close in welfare economics
02:22
politics economists dealing with
02:28
government projects will say should the
02:30
government do psychic should have build
02:31
a dam or should go a highway or should
02:34
it uh fill a steel plant the economists
02:37
will say well engage the cost-benefit
02:39
analysis you take the social benefits
02:41
add it up put a moment money figure on I
02:44
take the social cost a time up put them
02:46
on a finger on that and if the social
02:48
benefits are minor social course you
02:49
should do it
02:50
government should do this project it’s
02:52
social course a higher source of benefit
02:53
you shouldn’t do it sounds terrific
02:55
to problem with one nobody knows what
02:57
the benefits are to nobody knows what
02:59
the costs or benefits are psychic
03:04
subjective each individual costs are
03:06
also slightly subjectivity to their job
03:07
and there’s no way to add them up even
03:11
individual it tough to have a minute
03:14
certainly across the between individual
03:17
Canada so there ain’t no such thing is
03:19
social of course I another change social
03:20
balance that’s a great thing but this is
03:27
that this is the main economic prop the
03:29
most government action now when
03:31
economists even so for free marketing
03:33
Hans well we add up social course we
03:36
also do benefits to see whether that’s
03:37
what this is there no such thing as
03:39
social course it sort of benefits
03:41
because they’re not animal there are
03:43
ephemeral and all that that’s polish is
03:46
law when
03:48
five minutes almost a little welfare
03:50
economics that goes down the brink well
03:54
just all economic justification for most
03:56
government action for some time to see
03:59
that sounds free-market sometimes I say
04:00
what we ended up it looks like you
04:01
shouldn’t build a stand up in social
04:03
course or greater self about so he said
04:06
well Jesus Christ pretty good he’s
04:07
blocking that damn okay it’s true I mean
04:09
had he also justified okay so the
04:20
another thing that cost is looking at
04:23
pure expenses now there’s a monitoring
04:26
expenses of course the how much you have
04:27
to pay out the custom cells are not
04:30
given the course of Solomon is another
04:32
great Austrian site are determined by
04:34
the utility of a value of the consumers
04:36
placement product in other words the ER
04:41
yeah I would say it is a product ten
04:57
dollars on wages labor only for rent and
05:02
material and whatever this mean they’re
05:09
willing to pay out in ten thousand
05:10
because they expect their anticipated
05:12
consumer demands 1200 consumers would
05:20
not pay attention to the course of
05:22
production just in terms of money
05:24
payment does then the term is not a
05:26
fixed item given god-given somehow and
05:29
will run an eternal cost reductions in
05:32
the south and function of how much
05:33
interference that consumers will pay for
05:36
so rather than saying that in the long
05:38
run
05:40
prices of the term of my cost production
05:42
assumer provides a determining factor
05:44
prices across the production in terms of
05:46
money quite the opposite the long-run
05:49
cost production will indeed equal price
05:51
and acceptance the other causal factors
05:54
woman the course will be determined by
05:57
how much editors think seem a little pay
06:00
for the long ones ten thousands ten
06:03
thousand five whatever as determined by
06:05
the fact that interpersonal sumers will
06:09
pay that IMAP utility those individual
06:21
values feels utility demand price
06:34
[Music]
06:36
another big hole in my school furious
06:40
alone on cost determining prices now you
06:51
see this is great practical applications
06:54
that’s many conservatives businessmen
06:58
assemblers say that inflation inflation
06:59
is calling my course going out of course
07:01
not
07:02
therefore we have to raise prices by the
07:06
way that’s a goal
07:08
PR excuse gee I’m sorry mrs. Jones I
07:11
have to raise the price of bread but I
07:12
pay more for it otherwise where there’s
07:15
nothing give it to you right so this is
07:18
actually a PR but many people believe it
07:21
unfortunately the it’s actually the to
07:28
question well two points area one is the
07:31
pricing determined by supplying a man
07:33
where does cost comment equation it’s a
07:40
supply this much
07:42
man in that much this is what the price
07:44
will be had lost about the costs are all
07:46
documented in traverse that pays for it
07:49
if the price will be let’s say 80 cents
07:55
a wolf wondering breath it’s a cost
07:58
money expenditures of course success of
08:00
that Goa’uld all of the destroyed a
08:02
visit they can they can’t have an honest
08:04
for twenty cents because if they could
08:06
add an extra 20 cents why don’t they we
08:07
supposed to go up what’s going to do it
08:09
as well charge a higher price beginning
08:11
with the doubly waste for cost to raise
08:16
prices if you can raise the price to
08:18
make a profit how do you do it probably
08:34
other costs of consultations so so it’s
08:42
the other way around pricing determine
08:43
cost rather than vice versa and and
08:47
Kison also sort of thing to have no cost
08:49
at all well that’s like Rembrandt’s
08:51
doesn’t cost anybody tries to run rats
08:53
dead already
08:54
the painting is there and yet it has a
08:56
price price shifts yeah I see something
09:00
like energy of the demand for energy
09:03
goes up then because because the the
09:06
price goes up the sources of it which
09:11
are more costly introduced as they’re
09:12
producing so cost goes up to direct
09:14
exactly what’s the determined by price
09:16
the amount of businessmen willing to pay
09:18
for copper determined by how much copper
09:20
products will sell to consumers so the
09:23
chain cause will change from the
09:25
consumers back to me to manufacture the
09:28
Bangalore with Terra and copper will be
09:31
more expensive because it’s abandoned
09:32
copper go products don’t walk would you
09:34
learn to bring back the increasing mass
09:36
so 10 this also goes across the unions
09:41
because how many servitors doesn’t blame
09:44
unionist unions for inflation
09:46
well the place is about union of wage
09:47
rates therefore we have to increase
09:49
place against the same sort of thing
09:51
the places go up anyway over there
09:55
anyway cause of humans are also wage
09:57
races secondly question unanswered why
09:59
don’t my interpreter is businessmen
10:01
willing to pay the higher wage rates why
10:03
don’t they say we can’t pay for these
10:04
money if I could willing to pay it in
10:07
the side they will even up the other
10:09
that of course they’re willing to incur
10:11
or determine what what they think of it
10:13
I think prices are a lot the way to pay
10:15
a higher wage rates so the cause will be
10:17
shame and once again that from the
10:20
consumer the only time on the cost will
10:23
attend your prices that’s the supply
10:25
goes down I go down indeed might go up
10:32
in some way increase something lower
10:37
priced and over production the lower
10:40
supply then will go up you see this for
10:45
example ones so the only time a place
10:49
will go up in the supply side of course
10:54
going I would like I do anything unless
10:55
it’s something happy to supply those
10:58
contracts for example officially the
11:03
computer business or whatever the costs
11:04
go up and you can’t charge a higher
11:06
price because we’re already charge the
11:08
maximum price profitable then Ferns go
11:12
out of business let’s say I cut back
11:13
production and then supply goes down
11:16
quite goes up so it’s not the cost to do
11:19
what is possible would rob that supply
11:21
if you’re looking at the causes of
11:23
inflation of course why doesn’t know
11:25
damn obviously production usually goes
11:26
up every year
11:27
robots cents we don’t have a situation
11:30
every year collections
11:32
10% less than the year before
11:34
fortunately so obviously it can’t be the
11:37
supply silent that causes the problem
11:41
obviously something that demands silence
11:46
for general increase in prices and
11:49
others I don’t think it’s example people
11:51
tend to think of a sales tax or an
11:53
excise tax maybe just passed on a mother
11:55
businessman is passing on a consumer
11:58
well doesn’t work that way isn’t that
11:59
automatic for example usually when the
12:03
price of movies that have an admission
12:05
tax it will these goes up very often
12:07
than the lead nervous zero circulate
12:12
petitions don’t fight the tax right your
12:15
City Council – Sunday you guys the
12:17
admission tak they wouldn’t do that they
12:18
could just pass it on why should they
12:20
bother if a taxes simply gonna be passed
12:23
on to consumers all the problem this guy
12:25
wouldn’t care the problem is of course
12:27
consider this tax on consumers spends
12:29
less surprising less of it and and
12:35
you’re going up the demand curtain
12:36
always move the supply of movies or
12:38
theaters they’ve got that could be hurt
12:40
other colleague profit like a go-go dad
12:43
so you can’t just pass on a price you
12:47
can only do it to a cutting supplies –
12:50
and nobody wants to cut supply
12:54
contracting well then suddenly the taxes
13:05
are kind of interesting because at least
13:07
the United States a lot of the tax there
13:09
is of course very heavy taxes on liquor
13:11
various reasons
13:39
like your attack so far that is as
13:46
revenue for the government part of this
13:48
film Ethel isn’t list occurs equal
13:50
actually paid like the sinners pay part
13:53
of it comes in from businesses and stops
13:55
for example in other cases over United
13:59
States exemplar kicks taxes on still
14:03
large fixed amount of gossip the size of
14:06
the still what this does obviously is
14:08
put in my large liquor man – justice –
14:10
Shack there are small competitors we
14:13
have a fixed tax Murray
14:15
if every liquor Boozer has to pay a
14:16
million dollars as a fixed amount
14:19
regardless of how much they produce
14:20
obviously the small worker person’s
14:22
pours out business big liquor people
14:25
know that full well example the hysteria
14:28
we have a Christian in them at an
14:30
Appalachian Mountains we have written
14:31
tradition of a young moonshine heroic
14:34
farmers out there producing illegal
14:39
liquor wisely goes illegal because if
14:41
they don’t pay a stone taxes
14:44
I’m setting up their equipment so the
14:47
constant fight between the revenuers
14:53
[Laughter]
15:05
yeah I just have one comment there that
15:08
this fix this fixed amount of tax but
15:14
also various government humans just the
15:16
fact that it’s the same amount of work
15:18
for a small company may go to an income
15:19
i thicknesses for largeman there all
15:21
sorts and a fixed thing and they are
15:23
what can be very much to the thickness
15:25
of comments that we have I would think
15:27
that in a free market there would be so
15:29
many big companies in commercials hogs
15:31
that’s a big that’s a big reason Apple
15:32
workman’s compensation law came in 1998
15:36
10 we’re put in marketing by bigger
15:38
businesses and one of them you have to
15:40
have a certain paperwork all of us
15:42
they’re going to like want to impose
15:44
higher cost I want to probably get more
16:01
discussion here going down on to a more
16:05
advanced so whole area obviously is
16:08
skipping a lot of stuff in between
16:10
but anything right preparing them one of
16:15
the little bit more comparison of most
16:16
bean economics with orthodoxy gonna mix
16:20
applications those things were taken
16:26
micro from when you want for example the
16:29
there are two world several motivations
16:33
for antitrust legislation antitrust
16:35
action one of them are convinced which
16:37
is another story
16:39
it was the one group of businessmen
16:42
might Shack the other group there are
16:45
now for example United States a lot of
16:46
private antitrust suits control Data
16:49
Corporation like I me antics to
16:51
officially file a suit saying it’s
16:52
unfair competition
16:53
if I restrict I’m gonna request them and
16:56
doing stuff so there’s a lot of that a
16:58
lot of the antitrust suits that are they
17:00
file over the years by the department
17:02
justice photoplay Commissioner have done
17:04
the booth because that one set of
17:06
competitors tried out eliminating a
17:08
couple the other set addition to that
17:11
there’s no of course is also lead
17:14
training motivation one of the great the
17:18
one local attorney one of the way to
17:19
achieve fame unfortunately legal
17:22
professional they see it becoming since
17:24
you’re a young lad how about a young
17:27
lass also Harvard illicitly become
17:30
attached the Attorney General Division
17:33
justice you work up an antitrust suit
17:36
against our patient about five years
17:41
become one of the world’s foremost
17:42
experts prosecuting might be hammered in
17:44
part but then lo and behold these
17:46
addresses Bart incoming chief attorney
17:48
might be on the DuPont’s fighting this
17:49
suit so this is essentially course a
17:53
racket so that’s one of the reasons
17:57
right like trust prosecution’s from any
18:04
right economic sphere in an economic
18:07
theory lead big which fits in the most
18:10
the theory the big a little bit leak in
18:16
that Ascoli big thing to read micro
18:17
textbooks leaving reason breaking up
18:21
business for government regulation by
18:26
vesting Parks and Rec young firms no
18:29
less or style is simple monopolistic
18:32
competition imperfect competition
18:34
whatever competition is not perfect that
18:37
the competition is does not meet the
18:39
standards by the compete with economics
18:42
twice in real world and it goes in
18:49
it goes something like it goes basically
18:51
something like this better than I trust
19:03
this is basically it followers y-axis
19:11
quantity produced on the x-axis we have
19:18
several average cost curve shouldn’t be
19:23
u-shaped really cost per Lane way
19:31
basically if if you’re building
19:38
automobile plant and you have a huge
19:41
amount of equipment a million dollars
19:44
invested equipment if you produce one
19:45
automobile per year you’re very costly
19:48
geared for the optimum of a hundred
19:51
thousand dollar bill here you only
19:53
receive one course you like down two
19:56
hundred fifty thousand dollars per car
19:57
sir look at average costs start very
20:01
high and you keep using up the what
20:03
really is an Austrian view with the
20:06
goodies because I’ve been to visibility
20:07
you have different kinds of machinery
20:09
and buildings normally using them an
20:11
optimal sense you start to lowing and me
20:15
giving extremely costly per unit so you
20:19
keep going and marriage cause the Kleins
20:22
finally get you point everything sort of
20:27
my dummy I’m just turning on me you got
20:30
a whole you say average cost curve total
20:33
cost in terms of dollars free unit
20:36
produced
20:40
the assumption is whywe this or addition
20:46
various other problems average costs
20:48
this is the fact you don’t know of
20:50
course is because
20:52
the cost of penalty but it’s finalized
20:54
lose something over two year period cost
20:58
to be one set of curve produces over
21:00
five year periods oh yeah a bunch of
21:02
things going on can’t be incorporated
21:05
into this anyway
21:08
you don’t know that everything out just
21:11
like you don’t know that the man curves
21:12
they think about shape you know what the
21:15
shape of this thing is doesn’t have to
21:16
be smooth arc well you know isn’t falls
21:19
at one point finally reaches the bottom
21:21
somewhere and that goes off that’s all
21:23
it could be anything because the that
21:27
could be something like this could be
21:30
jagged something whatever so making it a
21:34
smooth arc leaves the brace seemingly
21:38
some questions and the trivial makes
21:40
these also select locations you make
21:43
this school are thinking that I’m
21:44
tangency any rank that’s the average
21:56
cost curve then you’ve got the demand
22:02
curve according to we talked about is
22:05
pulling an answer according to the old
22:09
high school law reasoning and current
22:11
mainstream livox theory as to the matter
22:14
of the industry schools but in the true
22:18
correct proper competition for perfect
22:24
competition for people pure notice the
22:27
Logan terminology these are in China
22:29
some claiming the value is free totally
22:31
no no no clothes on the patient
22:34
normalization fees these were perfect to
22:37
be indications good imperfect sees be
22:41
bad anyway perfect competition is when
22:44
the demand curves reached firm
22:46
horizontal
22:47
perfectly
22:51
now if you look at this thing goes if
22:56
you really analyze it it’s totally get
23:52
that crap so you enter any kind of
23:54
strong qualification in this thing the
23:56
whole theory she just shot sir your wife
23:58
minute assumption of the horizontal why
24:01
do they seem in horizontal so school
24:04
week for teen even we former horizontal
24:06
the never busy between the other hand
24:10
every Helens firm in the real world is
24:12
employing a manager does any firm of as
24:14
IBM whatever control data or anything
24:16
will have some kind of impact we ease
24:19
interbred to keep their BC moral have to
24:23
cut their price big enough
24:32
[Music]
24:34
yeah in case it’s a lecture I don’t
24:37
think this is light gravity there isn’t
24:39
some black curve I said before except my
24:42
bring along nonsense but increasing the
24:47
supply a profit shift the vertical line
24:51
of the righties and what if you haven’t
24:53
they have a permit just instantly small
24:56
compared to the industry that’s what he
24:58
found when we fought each week on the
24:59
teeny then you might get something like
25:01
a big theory to get something like our
25:03
model maker reach me for anything else
25:05
equal wisely why is it beneficial never
25:09
larger firms does have an impact that’s
25:11
market and here is the immunity this my
25:13
friends is the reasoning behind this is
25:17
why the FSB comics in 30s until fairly
25:20
recently was should try to break up in
25:22
this be civil they approached the buckle
25:24
of a small leaf farm smoothly arcing the
25:33
average cost curves just ain’t given the
25:37
firm all right given the firm before the
25:40
firm X losing widgets but has a
25:43
horizontal Amanda curve this average
25:49
price is mean the average price is $10 a
25:52
widget average costs $8 widget makes a
25:54
profit to off the widget right in
25:57
equilibrium this is not the market
25:59
equilibrium we’re talking about this is
26:00
a different kind of ago this is so many
26:02
different kind of affections is long
26:04
unequal attract more money looking this
26:07
much which the economy supposedly in
26:11
when we intend to open an ax
26:13
explorin equilibrium nobody makes any
26:16
profits nobody makes any losses because
26:19
there’s no uncertainty everything it
26:21
frees the kind of frees the data freeze
26:23
bad you scales train chosen forever it
26:26
frees resources you’ve reached
26:27
technology and I said freeze everything
26:31
and you want enough if you do that it’s
26:33
all uncertainty if everybody knows in
26:35
their heart and air duct they’re mine
26:37
everything will be exactly the same just
26:39
have to use from the relatives now same
26:41
Brad you the same production the same
26:43
acknowledge or everybody then you will
26:45
have you why not fairly soon then let’s
26:48
go finally general equilibrium
26:50
all right villa mainsail nice is called
26:54
the evenly rotating economy because
27:00
there’s no one certainly everybody
27:01
adjust the situation everybody knows
27:03
them or even else for two million years
27:05
when I what every does certainly our X
27:06
amount of TV sets would be purchased
27:08
except my washing machine it’s all fixed
27:10
so freeze frozen one a no big deal and
27:13
say why Duff then with a tangency and
27:17
the Magnificent heroic tendency occurs
27:19
at zero profits 10000 must meet your
27:23
total revenue legally puzzle tossed
27:31
after total revenues equal total cost on
27:34
my definition of average driving images
27:36
which is programming the by the white
27:38
man produce X insane an average cost
27:43
average running the same is a man Kirk’s
27:45
maker is the amount per fill working per
27:50
quantity saving of the price if in other
27:58
words you sell and produce 10 widgets we
28:02
just a thousand widgets for it’s all the
28:04
ten dollars of widget you’re getting a
28:05
foul you got any 10,000
28:07
a total of 10,000 what religious that
28:11
sounds and therefore that’s the same
28:13
thing as the price all right so in n
28:18
equal increments final in general EEPROM
28:19
this is not market this is not dated a
28:21
glorious is this isn’t several number of
28:23
Miami gypsy and never exist them
28:25
accounting system will exist in this
28:27
situation where the three thing is
28:29
frozen forever you will have each firm
28:32
price equals average cost
28:37
alright if this thing is set to the
28:41
office itself if you have a horizontal
28:44
Amman for each firm the only person in
28:48
attendance as the same firm is an
28:58
imperfect monopolistic competition try
29:01
to put some definition means as face is
29:03
falling demand curve only one place to
29:06
be tangent to it it’s fall anyway solely
29:09
demand curve whatever is forming has to
29:10
be tempted somewhere over here so and
29:20
then these might say how Commons see
29:22
what we conclude from between groups as
29:24
as follows that the firm we call me the
29:27
perfect competition perfect its
29:34
production will be higher and as price
29:36
will be lower in that that’s an
29:37
imperfect monopolist accomplished QED
29:40
and and then the analysis therefore
29:45
consumers an enchanted by in firm
29:49
accomplish the real world they are they
29:52
would benefit if every every sperm is so
29:54
tiny that they were being a perfect
29:56
composition that is the that Lisa that’s
30:00
the basis brand might trust legislation
30:02
although most of them or many homes
30:06
maybe maybe disappointing small holes
30:10
right you’re gonna like blockbuster
30:11
conclusion see any holds us why reason
30:19
just it’s just called perfect yeah name
30:25
is it’s called perfect one of these
30:27
because the knowledge is perfect
30:28
otherwise if Furby knowledge you know
30:31
what your maker there’s no posters are
30:33
you know it’s the morning the perfect
30:36
mobility people like great name
30:49
enchantment and this gives the excuse
30:50
Philippe he’s sucking on a deal that’s
30:52
closing ideal of perfection which the
30:56
market is failing all right to achieve
30:58
and therefore the government that is
30:59
supposed to have a rationale for
31:00
stepping in trying to create these
31:01
perfect conditions and then I want to be
31:03
once again they’ve got the boot word
31:12
okay step number one who says if these
31:16
furs are equal who says the cost curve
31:19
the average cost curve was smaller than
31:21
the same of the large firm bananas if we
31:25
broke up sure penetrating analysis of
31:27
listening capitalism social democracy
31:29
it’s a very interesting run
31:31
11/10 a free market first day at very
31:32
interesting things to say and wasn’t it
31:36
Austria even sugar cane right and he’s
31:41
actually one of the things said was this
31:43
okay focus
31:45
let’s assume you’re right as human and
31:47
the present state of evil imperfection
31:50
we’re often hearing some of that here
31:51
but suppose he it’s time to take General
31:53
Motors and break it up trying to make it
31:54
perfect
31:55
make it something break down the team
31:57
visas so that each one will being I’m a
32:00
horizontal maker behind like 500,000
32:03
teeny little firms each of which has a
32:05
cost per however way the hell up here is
32:07
you’re not taking advantage of
32:08
large-scale production so even though so
32:24
many cases things are given the textbook
33:07
say give us the main curves give us
33:10
Oscars given products and everything or
33:13
real competition is really about which
33:15
is trying to finally beat out the other
33:17
guy just trying to find out we’ve been
33:19
to these things out compete the other
33:21
guy all this is sauce aside when you
33:22
have perfect knowledge everybody knows
33:24
that the may occur every no everybody
33:26
knows the product or guy knows the cost
33:27
curve anyone respond that even though
33:31
as equipment wear it out yeah throw this
33:34
thing out the window just keep going
33:38
like this such as the importance replace
33:40
the LeMat effects or the same way that
33:44
not only are they cost curves different
33:47
for different companies as was planted
33:49
but the most effective the free market
33:51
will tend to produce the lowest custard
33:53
but their companies and so if you break
33:55
the middle of it or interfere with in
33:57
any way five you’re gonna race you’ll
33:59
get higher cost curves and in order to
34:01
get these equilibrium points for each
34:03
into there’s no they hire uh-oh that’s
34:18
the senior here the implicates yeah
34:20
affirmative heaven bTW no furniture the
34:23
bottom whatever that cost or any of this
34:36
stuff again the quality we always
34:39
qualitative but they try seamless
34:41
quantitative don’t let us has to be like
34:43
this funding for exam is one of my
34:44
favorite fight it cost guard was a
34:47
little bumpy something like that that
34:50
only hit some tendency I’m here you see
34:54
this about the situation it’s weirdly
34:56
these flowing the macaron just this
34:58
tension at the same spot of the twisted
35:03
here and the same no weapon is ready
35:05
this stuff white thickens
35:12
when they say well you at General Motors
35:14
diffident about being the only car boom
35:18
[Music]
35:21
well it’s something no that’s that’s not
35:22
the cost problems a little different
35:24
that stuff
35:25
there are you dealing in the real world
35:26
we an unassuming zero accomplished
35:29
that’s another but that’s an honest an
35:32
interesting area that’s that whole
35:33
cartels thing we should know it’s
35:37
important anyway you know assuming
35:43
people respect what 4:05 yeah that’s
35:46
right I can’t see now if they’re under
35:48
small companies people affected what
35:50
vasilich are quietly we deserve a proper
35:52
what we young they try to get around
35:55
that the two wings of courtship in our
35:58
software than a value around there’d be
36:01
zero profit I don’t know why you even
36:04
maintain your capital the more more
36:09
rational view but probably be more
36:11
moderate of interest just enough
36:14
sweetness at six percent whatever this
36:16
is that’s keep maintain in the capital
36:17
so you can have wages of management they
36:21
consideration you have
36:27
well yeah but you can because
36:29
conceptually easy yeah we can
36:32
conceptually nest separate a nap in
36:33
other word to say Wow here guy owns his
36:36
own firm you say what part of those
36:38
returns are wages to the to its
36:41
management part of us interest on
36:44
capital investment it’s sort of separate
36:46
ads there’s obviously bring the photo to
36:48
practice it sexually the say okay he’s
36:51
got this labor of management that is
36:54
it’s got the
36:57
I see the camel husband great different
36:59
here you’re seeing that won’t change
37:00
everything certain capital investment
37:02
that is pure time for us it’s interested
37:05
functions might have to wait is
37:07
important to cut out profits and losses
37:10
which the entrepreneurial report other
37:13
Austrians adopt listen Frank
37:16
some ways wasn’t lost and that take a
37:20
return on business verbal investment at
37:24
two parts to it as a return for waiting
37:26
for just simply true well from waiting a
37:28
sense of what do you think what is
37:32
leading your capitalist provides the
37:36
workers in the landowners the other
37:37
factors of production that’s important
37:39
service they even say our social
37:43
connectivity that we get their return
37:44
unless when this mess let’s say him
37:46
corporations which are only by the
37:48
workers consumers producers coops all my
37:50
workers and landlords if they did that
37:53
they would they would have to do what
37:55
you gotta say they’ve got the same paper
37:56
it’s got about difference of management
37:58
I can worship they wouldn’t get let’s
38:01
say they got the same whatever I guess
38:03
ten thousand dollars a year you get it
38:04
but he have to wait three years of six
38:06
years worth of income product I’m ruling
38:08
all things I don’t wanna for you guys if
38:09
you have to wait if they have no no
38:11
paycheck so the money times that
38:13
especially as when I have an idealist
38:14
lobbying but you lost worker owned firms
38:17
they have to lake which is a tough
38:18
proposition many people are having
38:20
capital and are 108 a capitalist
38:22
provides even in the world that monster
38:25
uncertainty capital survives the savings
38:28
provide the money to pay them now before
38:30
other three years they’re off the wait
38:32
for the service the workers in a sense
38:34
pay him in the capital s the discount
38:36
they pay him the time perfect this cap
38:38
six percent they’re happy to do the math
38:42
because they’re getting money now is
38:44
that having to wait three to six years
38:46
for it that’s a prime purpose where you
38:55
have a
38:59
we’re actually an entire department of
39:02
time market this is one of them usually
39:04
Wall Street in Washington in terms of
39:06
not just alone as the whole the whole
39:08
profit system interest pervades the
39:26
creditor okay kissing just to the dinner
39:30
the exchanger degrees that are right now
39:33
say ten thousand dollars and he and
39:37
returning or an IOU saying I will pay
39:41
you these two seas but some of the
39:55
creditors doing is giving the debtor
39:56
command over meat resources even the
39:59
money right now
40:00
you want some of this present this money
40:09
is useful right now
40:11
the other hand this I of you as a future
40:14
good it’s only the creditor gonna need
40:17
got to cash it in or start using my year
40:19
from now so that the creditor is
40:27
exchanging $10,000 president money for
40:31
future money president for future you go
40:33
because president is because of time
40:35
preferences everybody had different
40:36
ratio every right refers money and money
40:39
later the memorial in time market we
40:43
just worked out between creditors and
40:44
debtors opportunity everybody when they
40:47
have time for us as a certain rate comes
40:50
a let’s say eight percent six percent
40:51
ten percent whatever
40:52
this takes ten percent where both
40:55
parties agree in this in this type
40:57
reference price and they will pay in
40:59
this premium of 10% or president
41:03
this town ever taught futures good so in
41:05
other words the payment of interest
41:07
payment for time preference at least
41:11
enough of the Catholic Church and
41:13
scholastic philosophers are extremely
41:16
bright Economist’s they work out a lot
41:18
of this stuff in the going along the
41:19
utilities theory and lot of market
41:21
analysis that are very profane more
41:23
nectar of factor as amazing many cases
41:26
are on these guys with Franciscan monks
41:27
who were living on Hudson or a cave
41:29
somewhere for 50 years or that bracelet
41:31
just to get our analyses mid-market and
41:34
the one thing that couldn’t happen when
41:37
they come on Stan is time purpose where
41:39
they can understand of our riskiness
41:40
amount of certainty of the Prophet there
41:42
also act right I couldn’t understand why
41:44
it’s legitimate wall listen to all right
41:48
it’s rose on a pure loan just a pure
41:50
with no other all that twist without all
42:00
my Catholic Church for centuries
42:02
thousand years and I was trying to admit
42:06
the nobody and after a while by the 18th
42:08
century sewing everybody of course
42:10
everybody in favor of interest they
42:13
didn’t understand my time Cartman we
42:14
more or less realized that was important
42:16
these usury laws they were polish and
42:31
the Sunday it’s too many vendors doesn’t
42:35
matter risk opportunity cost well and
42:36
that was sort of you could make 20% by
42:40
investing some kind of sea voyage is
42:42
okay to charge 20% for all along with it
42:44
that you’re giving out the other 20%
42:46
well that’s not very sophisticated they
42:49
couldn’t understand a pure loan
42:50
they didn’t bend over grasped by the
42:52
time promised by the wagons laden
42:54
starving home ball-bearing I mentioned
42:57
before 3d BCT 80s and before that was
43:01
some people
43:02
Torgo almost like the
43:03
great dogs have forgotten the French
43:06
Revolution and basically these these
43:10
people really copper rivet and white
43:13
this is charred ones quite explained a
43:15
moment understandable like moral to work
43:17
backwards in separate separate when it’s
43:19
being done otherwise as always seem to
43:21
somehow the predator was ripping off the
43:23
debtor one way it was never explained
43:25
why the other one so so you see how this
43:33
works them here alone the Rambam burger
43:35
pointed out it’s better reading American
43:38
Austrians went on afterwards federal
43:40
push me gently England like this man
43:43
magnificent trying to ISIL market
43:47
theorists this whole thing pervades the
43:50
economy if you take for example not
43:52
alone for a minute here’s a capitalist
43:58
who what does he do he he buys is he
44:02
saved up money by not spending it
44:05
he then even pays workers landlords
44:10
whatever for their production services
44:13
so he’s paying them let’s say pay some
44:16
worker come down dollars this is the
44:19
employer and employee gets the money and
44:25
he gets employee employee is the
44:29
employer later services was then
44:32
incorporated on the products that speak
44:33
up in the transformer product
44:35
commercially sold so that’s let’s say
44:37
it’s worth twelve math words that Li the
44:41
amount the employee produces so-called
44:43
marginal product o
44:44
pressure how you get to that assuming
44:46
that employer pays me say ten thousand
44:49
the cut what you want to accept it
44:51
because the employer is getting
44:52
employees getting it right now just have
44:54
to wait five years together and so
44:56
what’s happening in the employers but
44:57
money and present good the employee is
45:01
giving the employer futures on which the
45:03
employer will reap you know
45:04
the thing that produces some so what
45:07
happens is you have a vast time market
45:11
where the employer is essentially the
45:13
creditor but legally but he can’t
45:15
believe pulling use the dark it’s
45:17
getting the money your tip is getting a
45:18
present given an employee pays the
45:20
employer sinks or the tryst would turn
45:23
let’s call natural interests in barber
45:27
that the veterans pays the predator and
45:30
in the long run the tendency is toward
45:32
to make these things to be equal first
45:34
never reaches equality Tennessee is the
45:37
have a similar rate and one here and the
45:40
other because we can you know earn 20%
45:43
someone 25% other place thinking that a
45:46
shift out of the five cents five percent
45:48
a 10 stone Equalization never gets there
45:51
that’s the long-running 1110 cetera
46:01
you

Leave a Reply

Your email address will not be published. Required fields are marked *