What Is Economism, Why Does It Lead to Bad Policies?

The video discusses the concept of economism, which is the belief that basic economic principles like supply and demand can solve complex issues. It critiques this view by examining healthcare, trade, and the financial crisis, highlighting the limitations of markets in these areas. The video also covers the rise of populism and the legal case between Apple and Qualcomm, emphasizing the need for a strong social safety net and regulatory oversight.

What is a key limitation of applying basic market principles to healthcare?

• Markets allocate goods based on ability to pay, which can be problematic for healthcare.

• Markets ensure everyone can afford healthcare.

• Markets allocate resources based on need, not ability to pay.

• Markets produce outcomes that are always socially acceptable.

How does economism view international trade?

• Trade benefits only one party.

• Trade makes both parties better off.

• Trade has no impact on domestic economies.

• Trade always results in equal benefits for all within a country.

What is one proposed solution to help those negatively affected by trade?

• Reducing taxes for large corporations.

• Eliminating all trade agreements.

• Implementing job retraining programs.

• Increasing tariffs on imports.

What is a key difference between economism and economics?

• Economism focuses on macroeconomic policies.

• Economism is a branch of economics.

• Economism simplifies complex economic issues.

• Economism is a comprehensive study of economics.

Why is a strong social safety net important according to the discussion?

• It eliminates the need for job retraining programs.

• It compensates those negatively affected by economic changes.

• It ensures everyone has the same income.

• It discourages innovation and risk-taking.

What was a major belief about financial markets before the financial crisis?

• Fraud was inevitable in deregulated markets.

• Market forces would ensure financial stability.

• Deregulation would lead to instability.

• Regulation was necessary for prosperity.

What was the Dodd-Frank Act intended to do?

• Impose new constraints on the financial sector.

• Deregulate the financial sector.

• Increase taxes on financial institutions.

• Eliminate all financial regulations.