[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:08.64,0:00:11.98,Default,,0000,0000,0000,,Hey, how are you doing econ students?!\NThis is Jason Clifford, and welcome
Dialogue: 0,0:00:11.98,0:00:14.18,Default,,0000,0000,0000,,to EconMovies. Today, we are going\Nto look at the economics in
Dialogue: 0,0:00:14.18,0:00:17.85,Default,,0000,0000,0000,,the Hunger Games.\N{\i1}Cheering of crowd{\i0}
Dialogue: 0,0:00:17.85,0:00:21.57,Default,,0000,0000,0000,,>>The 74th Annual Hunger Games!
Dialogue: 0,0:00:21.57,0:00:26.31,Default,,0000,0000,0000,,>>These movies are filled\Nwith economic concepts
Dialogue: 0,0:00:26.31,0:00:28.29,Default,,0000,0000,0000,,like the idea of opportunity cost:\NKatniss has to choose
Dialogue: 0,0:00:28.29,0:00:35.29,Default,,0000,0000,0000,,between Peeta and Gale.\NThe cost of choosing
Dialogue: 0,0:00:35.29,0:00:37.46,Default,,0000,0000,0000,,one guy is that she can't be\Nwith the other guy.
Dialogue: 0,0:00:37.46,0:00:40.04,Default,,0000,0000,0000,,Or, continue that secret love affair\Nwith Lenny Kravitz.
Dialogue: 0,0:00:40.04,0:00:45.68,Default,,0000,0000,0000,,The movie also shows the\Nidea of specialization.
Dialogue: 0,0:00:45.68,0:00:48.25,Default,,0000,0000,0000,,People have different skills,\Nso they should specialize in
Dialogue: 0,0:00:48.25,0:00:50.72,Default,,0000,0000,0000,,the things that they do well,\Nlike swinging swords, throwing
Dialogue: 0,0:00:50.72,0:00:53.05,Default,,0000,0000,0000,,knives, hosting talk-shows, and whatever\Nelse Effie's job is.
Dialogue: 0,0:00:53.05,0:00:56.69,Default,,0000,0000,0000,,>>And of course, there's\NKatniss' main skill, which
Dialogue: 0,0:00:56.69,0:01:01.28,Default,,0000,0000,0000,,is looking directly into the\Ncamera. Seriously, she does
Dialogue: 0,0:01:01.28,0:01:03.85,Default,,0000,0000,0000,,it a lot. Actually, her real skill\Nis with a bow and an arrow.
Dialogue: 0,0:01:03.85,0:01:09.20,Default,,0000,0000,0000,,Yeah! Get em! Oh, yeah!\NDid you know that there's a funny
Dialogue: 0,0:01:09.20,0:01:11.67,Default,,0000,0000,0000,,line in the movie that only\Nmakes sense if you understand
Dialogue: 0,0:01:11.67,0:01:14.03,Default,,0000,0000,0000,,economics. Here it is:\N>>We should probably hunt
Dialogue: 0,0:01:14.03,0:01:15.84,Default,,0000,0000,0000,,around here. We don't have\Nany food left.
Dialogue: 0,0:01:15.84,0:01:22.09,Default,,0000,0000,0000,,>>Okay, uh, I'll take the bow...\NI'm just kidding, I'll go pick
Dialogue: 0,0:01:22.09,0:01:25.76,Default,,0000,0000,0000,,some stuff.\NThat line is funny, because
Dialogue: 0,0:01:25.76,0:01:28.31,Default,,0000,0000,0000,,you intuitively understand the\Nidea of comparative advantage.
Dialogue: 0,0:01:28.31,0:01:30.81,Default,,0000,0000,0000,,Katniss should specialize in hunting,\Nand Peeta should pick berries.
Dialogue: 0,0:01:30.81,0:01:33.92,Default,,0000,0000,0000,,It's absurd to have Peeta hunt, \Nbecause Katniss is just way better
Dialogue: 0,0:01:33.92,0:01:36.21,Default,,0000,0000,0000,,with the bow. But notice,\Nshe's also better at picking
Dialogue: 0,0:01:36.21,0:01:38.71,Default,,0000,0000,0000,,berries:\N>>That's Nightlock Peeta! {\i1}Katniss{\i0}
Dialogue: 0,0:01:38.71,0:01:40.80,Default,,0000,0000,0000,,{\i1}knocks berries from Peeta's hand.{\i0}\NYou'll be dead in a minute.
Dialogue: 0,0:01:40.80,0:01:43.12,Default,,0000,0000,0000,,>>I didn't know.\N>>Even though she is better
Dialogue: 0,0:01:43.12,0:01:45.65,Default,,0000,0000,0000,,at doing both jobs, she specializes\Nin the one that she's more better
Dialogue: 0,0:01:45.65,0:01:48.58,Default,,0000,0000,0000,,at--is that correct grammar?\NEconomists say that Katniss
Dialogue: 0,0:01:48.58,0:01:51.28,Default,,0000,0000,0000,,has a comparative advantage\Nin hunting, while Peeta has
Dialogue: 0,0:01:51.28,0:01:53.98,Default,,0000,0000,0000,,a comparative advantage in \Npicking berries. By the way,
Dialogue: 0,0:01:53.98,0:01:56.35,Default,,0000,0000,0000,,you know who is not good at\Npicking berries? Foxface.
Dialogue: 0,0:01:56.35,0:01:58.37,Default,,0000,0000,0000,,This idea of comparative
Dialogue: 0,0:01:58.37,0:02:00.29,Default,,0000,0000,0000,,advantage also applies to\Neach of the twelve districts of
Dialogue: 0,0:02:00.29,0:02:03.18,Default,,0000,0000,0000,,Panem. Each specializes in\Nvery specific industries based
Dialogue: 0,0:02:03.18,0:02:05.68,Default,,0000,0000,0000,,on their comparative advantage.\NDistrict 2 does the stone
Dialogue: 0,0:02:05.68,0:02:09.90,Default,,0000,0000,0000,,work. District 4 does the fishing.\NDistrict 11 does the agriculture,
Dialogue: 0,0:02:09.90,0:02:12.25,Default,,0000,0000,0000,,and District 12 has the coal mines.\NAnd of course there's the Capitol,
Dialogue: 0,0:02:12.25,0:02:14.96,Default,,0000,0000,0000,,which does absolutely nothing,\Nbut it does bring us to the
Dialogue: 0,0:02:14.96,0:02:17.22,Default,,0000,0000,0000,,main economic concept in this\Nepisode: Capitalism.
Dialogue: 0,0:02:17.22,0:02:20.44,Default,,0000,0000,0000,,Capitalism is an economic system\Nthat allows for private ownership
Dialogue: 0,0:02:20.44,0:02:22.90,Default,,0000,0000,0000,,of resources, and promotes\Ncompetitive markets.
Dialogue: 0,0:02:22.90,0:02:25.87,Default,,0000,0000,0000,,Like President Snow, people in\Ncapitalism are motivated
Dialogue: 0,0:02:25.87,0:02:28.50,Default,,0000,0000,0000,,by self-interest, but unlike Snow,\Nthey can't use coercion
Dialogue: 0,0:02:28.50,0:02:31.22,Default,,0000,0000,0000,,and violence to get their way.\NA company can't force you
Dialogue: 0,0:02:31.22,0:02:33.65,Default,,0000,0000,0000,,to buy their product.\NThey have to earn your money
Dialogue: 0,0:02:33.65,0:02:36.62,Default,,0000,0000,0000,,by making something that you want.\NSure they're motivated by self-interest,
Dialogue: 0,0:02:36.62,0:02:39.36,Default,,0000,0000,0000,,but they can't make themselves\Nbetter off without making you
Dialogue: 0,0:02:39.36,0:02:41.54,Default,,0000,0000,0000,,better off. Free markets are\Nalso a blood bath.
Dialogue: 0,0:02:41.54,0:02:44.09,Default,,0000,0000,0000,,Think about the market for wearable\Ntechnology right now.
Dialogue: 0,0:02:44.09,0:02:48.18,Default,,0000,0000,0000,,Jawbone, Apple, Fitbit, Nike, Google,\Nthey're all going at it, trying
Dialogue: 0,0:02:48.18,0:02:50.51,Default,,0000,0000,0000,,to make a better product and\Nwin over consumers.
Dialogue: 0,0:02:50.51,0:02:52.29,Default,,0000,0000,0000,,It's survival of the fittest,\Nand the weakest products
Dialogue: 0,0:02:52.29,0:02:55.20,Default,,0000,0000,0000,,and companies are being killed off.\NSo Capitalism is the real-life
Dialogue: 0,0:02:55.20,0:02:58.53,Default,,0000,0000,0000,,Hunger Games. But in the end,\Nthe big winners are consumers.
Dialogue: 0,0:02:58.53,0:03:01.24,Default,,0000,0000,0000,,We get the best products at\Nthe lowest prices.
Dialogue: 0,0:03:01.24,0:03:04.49,Default,,0000,0000,0000,,Let's go back to the economy\Nof Panem. Is that an
Dialogue: 0,0:03:04.49,0:03:07.62,Default,,0000,0000,0000,,example of Capitalism?\NWell, no. One of the key
Dialogue: 0,0:03:07.62,0:03:10.02,Default,,0000,0000,0000,,characteristics of Capitalism\Nis freedom. The Capitol
Dialogue: 0,0:03:10.02,0:03:11.99,Default,,0000,0000,0000,,doesn't allow individuals\Nto choose where to live,
Dialogue: 0,0:03:11.99,0:03:14.45,Default,,0000,0000,0000,,where to work, or what to\Nsell. Everything in the districts
Dialogue: 0,0:03:14.45,0:03:17.11,Default,,0000,0000,0000,,is run by a government monopoly,\Nthat's backed by force.
Dialogue: 0,0:03:17.11,0:03:22.55,Default,,0000,0000,0000,,>>Anyone out after dark\Nwill by shot on sight.
Dialogue: 0,0:03:22.55,0:03:25.44,Default,,0000,0000,0000,,>>The economy of Panem\Nis based on exploitation.
Dialogue: 0,0:03:25.44,0:03:28.30,Default,,0000,0000,0000,,It's an empire with each\Ndistrict serving the Capitol.
Dialogue: 0,0:03:28.30,0:03:30.22,Default,,0000,0000,0000,,It's not capitalism. In fact,\Nfree trade and investment
Dialogue: 0,0:03:30.22,0:03:33.80,Default,,0000,0000,0000,,is violently prohibited.\N>>What do you propose?
Dialogue: 0,0:03:33.80,0:03:36.66,Default,,0000,0000,0000,,>>Shut down the black markets,\Ntake away what little they have,
Dialogue: 0,0:03:36.66,0:03:39.06,Default,,0000,0000,0000,,and then double the amount of\Nfloggings, executions.
Dialogue: 0,0:03:39.06,0:03:42.71,Default,,0000,0000,0000,,Both the Capitol, and District 13\Nare totalitarian governments
Dialogue: 0,0:03:42.71,0:03:45.30,Default,,0000,0000,0000,,with ruthless dictators that\Nsee themselves as benevolently
Dialogue: 0,0:03:45.30,0:03:48.07,Default,,0000,0000,0000,,serving the will of the people.\NWe've seen that before.
Dialogue: 0,0:03:48.07,0:03:51.32,Default,,0000,0000,0000,,Now, the rule of thumb, don't\Ntrust anyone who says they want
Dialogue: 0,0:03:51.32,0:03:53.49,Default,,0000,0000,0000,,to make other people's lives\Nbetter off, without
Dialogue: 0,0:03:53.49,0:03:55.90,Default,,0000,0000,0000,,asking for those people's\Nadvice. So Capitalism
Dialogue: 0,0:03:55.90,0:03:58.07,Default,,0000,0000,0000,,is awesome, but it does\Nhave some major drawbacks.
Dialogue: 0,0:03:58.07,0:04:00.67,Default,,0000,0000,0000,,First, capitalism tends to\Nfocus too much on
Dialogue: 0,0:04:00.67,0:04:03.01,Default,,0000,0000,0000,,consumption. On having more\Nand more and more as opposed
Dialogue: 0,0:04:03.01,0:04:04.68,Default,,0000,0000,0000,,to enjoying what you have.\N>>What's this?
Dialogue: 0,0:04:04.68,0:04:08.25,Default,,0000,0000,0000,,>>It's for when you're full.\N>>It makes you sick,
Dialogue: 0,0:04:08.25,0:04:11.85,Default,,0000,0000,0000,,so you can go on eating!\N>>How else could you
Dialogue: 0,0:04:11.85,0:04:13.81,Default,,0000,0000,0000,,taste everything?\N>>Now, I have never been
Dialogue: 0,0:04:13.81,0:04:15.82,Default,,0000,0000,0000,,to a party where people\Npuked to eat more,
Dialogue: 0,0:04:15.82,0:04:17.100,Default,,0000,0000,0000,,and hopefully you haven't either,\Nbut I have gotten the
Dialogue: 0,0:04:17.100,0:04:20.01,Default,,0000,0000,0000,,newest version of a cell phone,\Neven though there was
Dialogue: 0,0:04:20.01,0:04:22.22,Default,,0000,0000,0000,,nothing wrong with my old one.\NThe excessive production of
Dialogue: 0,0:04:22.22,0:04:25.65,Default,,0000,0000,0000,,capitalism has a cost. It drains our\Nnatural resources, pollutes the
Dialogue: 0,0:04:25.65,0:04:29.29,Default,,0000,0000,0000,,environment, and perhaps, even worse,\Nit pollutes our minds with the
Dialogue: 0,0:04:29.29,0:04:32.11,Default,,0000,0000,0000,,idea of always wanting more.\NAnother problem with
Dialogue: 0,0:04:32.11,0:04:34.59,Default,,0000,0000,0000,,capitalism is income inequality.\NIt's easy to feel outrage,
Dialogue: 0,0:04:34.59,0:04:37.77,Default,,0000,0000,0000,,when you compare the poverty\Nof District 12 with the opulence
Dialogue: 0,0:04:37.77,0:04:40.86,Default,,0000,0000,0000,,of the Capitol, but the shameful\Nthing is that that type of inequaliy
Dialogue: 0,0:04:40.86,0:04:44.39,Default,,0000,0000,0000,,exists, in the real world today.\NDistrict 12 isn't that much
Dialogue: 0,0:04:44.39,0:04:47.30,Default,,0000,0000,0000,,different than many modern day\Ncities, and that's sad.
Dialogue: 0,0:04:47.30,0:04:49.99,Default,,0000,0000,0000,,Now, Capitalism isn't necessarily to\Nblame, and it's helped millions
Dialogue: 0,0:04:49.99,0:04:53.10,Default,,0000,0000,0000,,of people worldwide escape poverty,\Nbut the fact that we have really
Dialogue: 0,0:04:53.10,0:04:56.54,Default,,0000,0000,0000,,rich people and super super\Npoor people means we do have
Dialogue: 0,0:04:56.54,0:04:59.13,Default,,0000,0000,0000,,a problem with income inequality,\Nand if we don't address it,
Dialogue: 0,0:04:59.13,0:05:01.20,Default,,0000,0000,0000,,the results might not be very\Npretty.
Dialogue: 0,0:05:01.20,0:05:08.28,Default,,0000,0000,0000,,Even with all these\Npotential problems of capitalism,
Dialogue: 0,0:05:08.28,0:05:11.13,Default,,0000,0000,0000,,it shouldn't be abandoned.\NIn fact, we should use it to make
Dialogue: 0,0:05:11.13,0:05:13.36,Default,,0000,0000,0000,,the best economic and\Npolitical systems possible.
Dialogue: 0,0:05:13.36,0:05:16.16,Default,,0000,0000,0000,,Something completely different\Nthan Panem, a system where
Dialogue: 0,0:05:16.16,0:05:18.15,Default,,0000,0000,0000,,opportunities are equal, and it\Ndoesn't matter where you
Dialogue: 0,0:05:18.15,0:05:21.26,Default,,0000,0000,0000,,are born. John Rawls was an\NAmerican philosopher that proposed
Dialogue: 0,0:05:21.26,0:05:23.68,Default,,0000,0000,0000,,a thought experiment to help\Nus determine how society should
Dialogue: 0,0:05:23.68,0:05:28.25,Default,,0000,0000,0000,,be organized. Now, assume\Nbefore you were born,
Dialogue: 0,0:05:28.25,0:05:29.57,Default,,0000,0000,0000,,you and others had to agree on\Nthe political and economic
Dialogue: 0,0:05:29.57,0:05:31.32,Default,,0000,0000,0000,,system in which you would\Nlife, but each of you had
Dialogue: 0,0:05:31.32,0:05:33.62,Default,,0000,0000,0000,,a veil of ignorance that prevented\Nyou from knowing things like your
Dialogue: 0,0:05:33.62,0:05:37.80,Default,,0000,0000,0000,,gender, race, social status, religion,\Nand intelligence. If who you were
Dialogue: 0,0:05:37.80,0:05:42.42,Default,,0000,0000,0000,,was a complete lottery, and you had\Nno control over it, would you
Dialogue: 0,0:05:42.42,0:05:44.32,Default,,0000,0000,0000,,want to come into the world\Nof today? Or would you
Dialogue: 0,0:05:44.32,0:05:47.78,Default,,0000,0000,0000,,want to make a few changes\Nfirst? The good news?
Dialogue: 0,0:05:47.78,0:05:50.94,Default,,0000,0000,0000,,We can make those changes\NThe children of the future
Dialogue: 0,0:05:50.94,0:05:53.44,Default,,0000,0000,0000,,don't have to play that\Ncruel lottery, where their
Dialogue: 0,0:05:53.44,0:05:55.58,Default,,0000,0000,0000,,lives depend heavily on\Nfactors like their race,
Dialogue: 0,0:05:55.58,0:05:58.82,Default,,0000,0000,0000,,and social economic status.\NLet's not abandon capitalism.
Dialogue: 0,0:05:58.82,0:06:01.85,Default,,0000,0000,0000,,Let's use it to level the\Nplaying field and make sure
Dialogue: 0,0:06:01.85,0:06:05.42,Default,,0000,0000,0000,,everyone has equal opportunities.\NI think we can do it, but until then,
Dialogue: 0,0:06:05.42,0:06:12.01,Default,,0000,0000,0000,,>>May the odds be ever\Nin your favor.