[Script Info]
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[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:13.30,0:00:18.79,Default,,0000,0000,0000,,- I love economics. I began\Nstudying economics when I was 13 and I
Dialogue: 0,0:00:18.97,0:00:23.97,Default,,0000,0000,0000,,haven't stopped yet. Economics really has\Nchanged my life and the whole way I see
Dialogue: 0,0:00:24.15,0:00:28.87,Default,,0000,0000,0000,,the world. What so powerful about the\Ndiscipline is just how much it shapes, how
Dialogue: 0,0:00:29.05,0:00:30.94,Default,,0000,0000,0000,,you understand everything around you.
Dialogue: 0,0:00:32.04,0:00:34.59,Default,,0000,0000,0000,,- But perhaps you're\Nasking, what's my incentive to learn
Dialogue: 0,0:00:34.77,0:00:38.96,Default,,0000,0000,0000,,economics? Well, that's a great question.\NYou've already hit on a key economic
Dialogue: 0,0:00:39.14,0:00:44.56,Default,,0000,0000,0000,,insight, incentives. For example, why is\Nthe service at a local restaurant
Dialogue: 0,0:00:44.74,0:00:48.24,Default,,0000,0000,0000,,typically so much better than from the\Ncable company?
Dialogue: 0,0:00:48.68,0:00:52.61,Default,,0000,0000,0000,,- Or why do laws which\Nsupposedly protect endangered species,
Dialogue: 0,0:00:52.79,0:00:56.05,Default,,0000,0000,0000,,sometimes end up with more of those\Nanimals being killed?
Dialogue: 0,0:00:56.76,0:00:59.71,Default,,0000,0000,0000,,- Or why do big toy companies\Nsometimes advocate for
Dialogue: 0,0:00:59.89,0:01:05.70,Default,,0000,0000,0000,,regulations which raise their costs?\NIncentives are the key.
Dialogue: 0,0:01:06.30,0:01:11.76,Default,,0000,0000,0000,,- Another example might help\Nus explain. Way back in 1787, the British
Dialogue: 0,0:01:11.94,0:01:16.13,Default,,0000,0000,0000,,government hired sea captains to ship\Nconvicted felons to Australia.
Dialogue: 0,0:01:16.13,0:01:21.08,Default,,0000,0000,0000,,Conditions on those ships were just awful.\NOn one voyage, more than one-third of the
Dialogue: 0,0:01:21.26,0:01:27.28,Default,,0000,0000,0000,,men died and the rest arrived beaten,\Nstarved and sick. The public was outraged,
Dialogue: 0,0:01:27.46,0:01:31.60,Default,,0000,0000,0000,,newspapers called for better conditions,\Nthe clergy appealed to the captain's sense
Dialogue: 0,0:01:31.60,0:01:36.61,Default,,0000,0000,0000,,of humanity, and British Parliament passed\Nregulations requiring better treatment of
Dialogue: 0,0:01:36.79,0:01:42.75,Default,,0000,0000,0000,,these prisoners. Unfortunately, those\Nattempted solutions simply didn't work.
Dialogue: 0,0:01:42.93,0:01:45.43,Default,,0000,0000,0000,,The death rate remained shockingly high.
Dialogue: 0,0:01:46.18,0:01:48.97,Default,,0000,0000,0000,,- So Tyler, as a good economist.\NHow would you solve this problem?
Dialogue: 0,0:01:48.97,0:01:52.38,Default,,0000,0000,0000,,- Well, there was one economist at\Nthe time who came up with a
Dialogue: 0,0:01:52.56,0:01:57.68,Default,,0000,0000,0000,,novel solution. It was implemented and it\Nbasically worked. Instead of paying the
Dialogue: 0,0:01:57.86,0:02:02.75,Default,,0000,0000,0000,,captains for each prisoner who embarked to\NAustralia, the government would pay the
Dialogue: 0,0:02:02.93,0:02:10.15,Default,,0000,0000,0000,,captains only for the prisoners who\Narrived alive. Overnight, the incentives
Dialogue: 0,0:02:10.33,0:02:16.23,Default,,0000,0000,0000,,of the sea captains changed. The survival\Nrate of the prisoners shot up to 99%.
Dialogue: 0,0:02:16.90,0:02:21.55,Default,,0000,0000,0000,,As one observer put it, economy beat\Nsentiment and benevolence.
Dialogue: 0,0:02:22.66,0:02:26.20,Default,,0000,0000,0000,,- So what's your incentive\Nto learn economics? People hear that I'm
Dialogue: 0,0:02:26.38,0:02:30.29,Default,,0000,0000,0000,,an economist and they ask me about\Nmanaging their money. An economics does
Dialogue: 0,0:02:30.47,0:02:34.73,Default,,0000,0000,0000,,have some lessons for investing in the\Nstock market, but economics is much
Dialogue: 0,0:02:34.91,0:02:40.31,Default,,0000,0000,0000,,broader than that. It's the study of human\Naction, how people make choices and how
Dialogue: 0,0:02:40.49,0:02:46.24,Default,,0000,0000,0000,,they should make choices under scarcity.\NEconomics will help you with your choices,
Dialogue: 0,0:02:46.42,0:02:51.24,Default,,0000,0000,0000,,whether picking a career, parenting a\Nchild or deciding how much education is a
Dialogue: 0,0:02:51.42,0:02:56.95,Default,,0000,0000,0000,,truly worthwhile investment. Overall,\Neconomics will give you a deeper
Dialogue: 0,0:02:57.13,0:02:59.80,Default,,0000,0000,0000,,understanding of the key issues\Nof our time.
Dialogue: 0,0:03:01.76,0:03:06.22,Default,,0000,0000,0000,,- Economics can be hard.\NRetraining your brain to look at the world
Dialogue: 0,0:03:06.40,0:03:08.90,Default,,0000,0000,0000,,in a different way, isn't always easy.
Dialogue: 0,0:03:08.90,0:03:13.34,Default,,0000,0000,0000,,- But the reward is a new\Nset of eyes to see the world.
Dialogue: 0,0:03:13.94,0:03:16.34,Default,,0000,0000,0000,,So are you ready to begin?