Friday, February 20, 2015

You Absolutely Need to Know and Understand the Price System

My rather extensive experiences in things and ideas economic leads me to the belief that the average person has absolutely no idea about two important concepts: the idea of prices themselves and the underlying mechanisms that create the pricing system. Actually, I will go further than that and state that at least 95% of the general public is mostly ignorant about these two vital concepts. There are a variety of reasons for this, but certainly not least among them is that they are not easy to understand -- they are not intuitive at all and, consequently, require considerable mental effort to grasp.  Nevertheless, and despite that background intro, I'm delighted to provide here two must-watch videos from the economists who created the superb website, MRUniversity.  Together, these videos make these difficult concepts much, much easier to grasp.  First up, the short video,  I, Rose.



And here's the follow-up video to the one above:


I found these videos so clear and powerful, that I'm going to show them in my courses next fall! [ht: CafeHayek.com]