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Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.00,0:00:05.36,Default,,0000,0000,0000,,♪ [music] ♪
Dialogue: 0,0:00:13.39,0:00:15.48,Default,,0000,0000,0000,,- [Tyler] I love economics.
Dialogue: 0,0:00:15.48,0:00:18.60,Default,,0000,0000,0000,,I began studying economics\Nwhen I was 13
Dialogue: 0,0:00:18.60,0:00:20.26,Default,,0000,0000,0000,,and I haven't stopped yet.
Dialogue: 0,0:00:20.77,0:00:23.61,Default,,0000,0000,0000,,Economics really has changed\Nmy life and the whole way
Dialogue: 0,0:00:23.61,0:00:25.30,Default,,0000,0000,0000,,I see the world.
Dialogue: 0,0:00:25.30,0:00:27.05,Default,,0000,0000,0000,,What's so powerful\Nabout the discipline
Dialogue: 0,0:00:27.05,0:00:29.90,Default,,0000,0000,0000,,is just how much it shapes\Nhow you understand
Dialogue: 0,0:00:29.90,0:00:31.87,Default,,0000,0000,0000,,everything around you.
Dialogue: 0,0:00:31.87,0:00:34.45,Default,,0000,0000,0000,,- [Alex] But perhaps you're asking,\Nwhat's my incentive
Dialogue: 0,0:00:34.45,0:00:35.98,Default,,0000,0000,0000,,to learn economics?
Dialogue: 0,0:00:35.98,0:00:37.39,Default,,0000,0000,0000,,Well, that's a great question.
Dialogue: 0,0:00:37.39,0:00:40.94,Default,,0000,0000,0000,,You've already hit on\Na key economic insight, incentives.
Dialogue: 0,0:00:41.88,0:00:44.71,Default,,0000,0000,0000,,For example, why is the service\Nat a local restaurant
Dialogue: 0,0:00:44.71,0:00:47.90,Default,,0000,0000,0000,,typically so much better\Nthan from the cable company?
Dialogue: 0,0:00:48.62,0:00:51.09,Default,,0000,0000,0000,,- Or why do laws\Nwhich supposedly protect
Dialogue: 0,0:00:51.09,0:00:53.60,Default,,0000,0000,0000,,endangered species,\Nsometimes end up
Dialogue: 0,0:00:53.60,0:00:56.14,Default,,0000,0000,0000,,with more of those animals\Nbeing killed?
Dialogue: 0,0:00:56.76,0:01:00.98,Default,,0000,0000,0000,,- Or why do big toy companies\Nsometimes advocate for regulations
Dialogue: 0,0:01:00.98,0:01:02.94,Default,,0000,0000,0000,,which raise their costs?
Dialogue: 0,0:01:04.27,0:01:05.91,Default,,0000,0000,0000,,Incentives are the key.
Dialogue: 0,0:01:06.68,0:01:09.15,Default,,0000,0000,0000,,- Another example\Nmight help us explain.
Dialogue: 0,0:01:09.15,0:01:12.39,Default,,0000,0000,0000,,Way back in 1787,\Nthe British government
Dialogue: 0,0:01:12.39,0:01:16.07,Default,,0000,0000,0000,,hired sea captains to ship\Nconvicted felons to Australia.
Dialogue: 0,0:01:16.64,0:01:19.07,Default,,0000,0000,0000,,Conditions on those ships\Nwere just awful.
Dialogue: 0,0:01:19.47,0:01:22.19,Default,,0000,0000,0000,,On one voyage, more than one-third\Nof the men died
Dialogue: 0,0:01:22.19,0:01:24.92,Default,,0000,0000,0000,,and the rest arrived beaten,\Nstarved and sick.
Dialogue: 0,0:01:25.58,0:01:28.27,Default,,0000,0000,0000,,The public was outraged,\Nnewspapers called
Dialogue: 0,0:01:28.27,0:01:30.60,Default,,0000,0000,0000,,for better conditions,\Nthe clergy appealed
Dialogue: 0,0:01:30.60,0:01:33.85,Default,,0000,0000,0000,,to the captains' sense of humanity,\Nand British Parliament
Dialogue: 0,0:01:33.85,0:01:36.58,Default,,0000,0000,0000,,passed regulations\Nrequiring better treatment
Dialogue: 0,0:01:36.58,0:01:38.14,Default,,0000,0000,0000,,of these prisoners.
Dialogue: 0,0:01:38.70,0:01:42.54,Default,,0000,0000,0000,,Unfortunately, those attempted\Nsolutions simply didn't work.
Dialogue: 0,0:01:43.05,0:01:45.46,Default,,0000,0000,0000,,The death rate\Nremained shockingly high.
Dialogue: 0,0:01:46.15,0:01:48.99,Default,,0000,0000,0000,,- So Tyler, as a good economist,\Nhow would you solve this problem?
Dialogue: 0,0:01:49.49,0:01:52.14,Default,,0000,0000,0000,,- Well, there was one economist\Nat the time who came up
Dialogue: 0,0:01:52.14,0:01:53.78,Default,,0000,0000,0000,,with a novel solution.
Dialogue: 0,0:01:53.78,0:01:56.59,Default,,0000,0000,0000,,It was implemented\Nand it basically worked.
Dialogue: 0,0:01:57.23,0:01:59.79,Default,,0000,0000,0000,,Instead of paying the captains\Nfor each prisoner
Dialogue: 0,0:01:59.79,0:02:02.32,Default,,0000,0000,0000,,who embarked to Australia,\Nthe government
Dialogue: 0,0:02:02.32,0:02:05.09,Default,,0000,0000,0000,,would pay the captains\Nonly for the prisoners
Dialogue: 0,0:02:05.09,0:02:07.06,Default,,0000,0000,0000,,who arrived alive.
Dialogue: 0,0:02:08.98,0:02:12.09,Default,,0000,0000,0000,,Overnight, the incentives\Nof the sea captains changed.
Dialogue: 0,0:02:12.73,0:02:16.34,Default,,0000,0000,0000,,The survival rate of the prisoners\Nshot up to 99%.
Dialogue: 0,0:02:17.20,0:02:20.64,Default,,0000,0000,0000,,As one observer put it,\Neconomy beat sentiment
Dialogue: 0,0:02:20.64,0:02:22.40,Default,,0000,0000,0000,,and benevolence.
Dialogue: 0,0:02:23.15,0:02:25.35,Default,,0000,0000,0000,,- So what's your incentive\Nto learn economics?
Dialogue: 0,0:02:25.35,0:02:27.70,Default,,0000,0000,0000,,People hear that I'm an economist\Nand they ask me
Dialogue: 0,0:02:27.70,0:02:29.47,Default,,0000,0000,0000,,about managing their money.
Dialogue: 0,0:02:29.47,0:02:31.93,Default,,0000,0000,0000,,And economics does have\Nsome lessons for investing
Dialogue: 0,0:02:31.93,0:02:35.86,Default,,0000,0000,0000,,in the stock market, but economics\Nis much broader than that.
Dialogue: 0,0:02:36.37,0:02:39.65,Default,,0000,0000,0000,,It's the study of human action,\Nhow people make choices,
Dialogue: 0,0:02:39.65,0:02:42.92,Default,,0000,0000,0000,,and how they should make\Nchoices under scarcity.
Dialogue: 0,0:02:43.53,0:02:46.26,Default,,0000,0000,0000,,Economics will help you\Nwith your choices,
Dialogue: 0,0:02:46.26,0:02:49.68,Default,,0000,0000,0000,,whether picking a career,\Nparenting a child,
Dialogue: 0,0:02:49.68,0:02:53.52,Default,,0000,0000,0000,,or deciding how much education\Nis a truly worthwhile investment.
Dialogue: 0,0:02:54.84,0:02:58.22,Default,,0000,0000,0000,,Overall, economics will give you\Na deeper understanding
Dialogue: 0,0:02:58.22,0:03:00.58,Default,,0000,0000,0000,,of the key issues of our time.
Dialogue: 0,0:03:02.25,0:03:04.15,Default,,0000,0000,0000,,- Economics can be hard.
Dialogue: 0,0:03:04.15,0:03:06.36,Default,,0000,0000,0000,,Retraining your brain\Nto look at the world
Dialogue: 0,0:03:06.36,0:03:08.90,Default,,0000,0000,0000,,in a different way,\Nisn't always easy.
Dialogue: 0,0:03:09.46,0:03:12.31,Default,,0000,0000,0000,,- But the reward\Nis a new set of eyes
Dialogue: 0,0:03:12.31,0:03:13.88,Default,,0000,0000,0000,,to see the world.
Dialogue: 0,0:03:13.95,0:03:17.11,Default,,0000,0000,0000,,So are you ready to begin?
Dialogue: 0,0:03:17.11,0:03:22.49,Default,,0000,0000,0000,,♪ [music] ♪