Why Capitalism Needs Losses, Too | Robert P. Murphy

[@connorism69]

Austrian economists seem to be the only ones who are consistent in pointing out that prices (e.g., interest rates) are signals that can harm economies if distorted.

[@sosofresh360]

Wonderful lecture. Bob has so much insight on things. Especially how he can simplify very complicated issues in elementary language. Thank you Bob Murphy!!

[@soapbxprod]

Dear misesmedia- Thank you so much for this super convenient playlist of the lovely Robert Murphy! (sorry, channeling the line from Rowan and Martin's Laugh-In)... sharing on Facebook- Viva Mises! :)

[@Astbruchgefahr]

Coke is made with sugar where I live, because we don't give farmers subsidies at all in New Zealand. Coke USA started using corn because corn was cheaper than sugar for American producers. No sinister plan to deceive anyone.

[@bigdo15335]

Essentially, you make decisions with the best information possible. Some fail. Some succeed. As long as the analysis was good, not all of the losers are silly, as he calls them. Furthermore, the risk taking ideas that are encouraged often increase the efficiency of our use of resources, furthering our economy. Although, I can't name one off of the top of my head, I am sure there are many unprofitable ideas that have created a new process, technology, or product that have accomplished this.

[@ghostKurt]

That's a good question... The one thing I don't understand with anarcho-caps is how they expect decisions to be made amongst communities, etc... if democracy is a failed concept...

[@fairlycrazy23]

yes, they are efficient, but just think how much more efficient they would be if they weren't wasting resources on making sugar and fuel from corn because the government is incentivizing it

[@MightyNerdKing]

Fantastic video! Thank you for posting it.

[@DREwestcoast]

never ever heard or seen of him before that but before I saw your comment(+1), mine was basically gonna be: this guy is fawesome.

[@ytroadfox]

Please enlighten me. Tell me exactly what you think is efficient about producing sugar domestically at a higher cost than international selling prices.

[@bigdo15335]

What he says around 6:00 is kind of silly and not based in reality. Government taxing profits and subsidizing losses actually creates a moral hazard that encourages firms to act more risky. This is basically the idea of too big to fail. Furthermore, not all unprofitable ideas are silly and often times these risks, that can be seen as silly when they fail, are often times what pushes our economy forward. Some might cause discomfort in the short term, but the mechanism is still necessary.

[@silkunion]

We allocate our resources to farm other things more efficiently. No country can do everything it's self. It is better for everyone is a country can specialize in one thing and trade for another.

[@FegelDolfy]

Bob Murphy kicks ass.

[@sdkee]

Maybe I can not pay for coke when I don't buy it (and I never have). Seems to me to be a very efficient solution to the Coke / HFCS "problem". Water + tea tastes good to me. I don't need a sugar alternative. And the market has already figured this out. And I agree, Sugar subsidies make no sense.

[@ytroadfox]

Of course. Comparative advantages. Now just lower the trade barriers.

[@wood9670]

good talk.

[@arthursage9358]

20:57 Damn the hypocrisy with the public and public office who screams free market but as soon as their is instability instead of helping and innovating one’s self enterprise to elevate their people’s or community. Authoritarian Americans be like “they should be punished for trying to help their people.They just want more power that makes them help their people then they will help their people will help one another be self efficient and tell other people to not let your government decide and do things for you”. It’s evil to tell people who think they free that they actually not free. But again I might be wrong or confused.

[@YunchuanZHAO]

Government subsidizing unprofitable ideas is stealing resources that could have been bid away by entrepreneurs in the market, who ARE taking risks with their own money. Subsidies always create waste and rent-seeking situations.

[@jcvjcvjcvjcv]

Even Ron Paul says Coca Cola tastes better outside the USA, where it's often still made with real sugar. See his book 'The Revolution: A Manifesto'

[@jcvjcvjcvjcv]

"Study Finds High-Fructose Corn Syrup Contains Mercury" -Washington Post, 28 january 2009

[@pipem4n]

"This is basically the idea of too big to fail." Gov. takes away the fear of doing something silly as well, He says - that is too big to fail, you misunderstood him. Now what you've said is kind of silly and not based on the talk. Nope you're wrong, silly ideas are silly and always go unprofitale, unless they are not silly, then they are profitable. The only gain for economy if you do silly is that you're an example with a sign on your bankrupt front - "don't do it like I did".

[@BarrySlisk]

HEY! Where is the Q&A!???? I feel robbed!

[@4lifejackhammer]

What happens when you don't allow losses? Dust Bowl.

[@YunchuanZHAO]

elaborate on unprofitable ideas which are silly but pushes economy forward, what example?

[@CopperNoir]

Q:What happened to the Q&A?

[@stealthswimmer]

I hear ya, man. I'm from the US (Texas), but I try stickin with imported Mexican Coke cus it's got the real sugar in it. :D

[@Samsgarden]

I wonder what the mises institute thinks of demarchy; a type of direct democracy by lot? Seems most of its adherents are anarcho capitalists. Can market justice, security and defence work?

[@soCernunnos]

But what about roads?

[@TigerTzu]

Wow! I didn't know Jason Alexander knew so much about economics!

[@ytroadfox]

If you guys in the US manage to get rid of the quotas for importing sugar that is protecting your inefficient agriculture, maybe you can drink Coke with real sugar again.

[@Altcapball]

Mexican coke, the real thing.

[@jcvjcvjcvjcv]

I'm not in the US ;)

[@MrToddrific]

+corn subsidies. :(

[@jcvjcvjcvjcv]

The coke argument is bull... I think The had a "new" recipe. It was disliked.... Then they changed back.... but... they replaced sugar for High-Fructose Corn Syrup. And hey: the old with HFCS tastes better then the "new recipe Coke" But now nobody notices that the new with HFCS tastes bud compared to the old Coke with real sugar.

[@physicalgenius]

I buy the Mexican Coke in the glass bottles now.

[@pipem4n]

Silly behaviour you describe is not silly at all. It's probably risky, the risk has to be outweighed to the individual by the ROE he's expecting if he succeedes, but it's not silly at all before the action takes place. It only seems silly afterwards - when you know how it went. No, silly behaviour does not push economy further. But you're talking about silly post factum - ok, but it's irrevelant. Not on topic, wrong.

[@pipem4n]

"As long as the analysis was good, not all of the losers are silly" Leave the silly, maybe listen to this again because you fixate on it too much. That's not the point. Every action is profitable to a human a priori - otherwise one wouldn't pursue it. Yes taking risks is essential, no engaging in silly behaviour is not. He didn't called them silly, and they aren't taking into accout TBTF doctrine, what he said was - "Gov. takes away the fear of doing something silly as well"

[@AdurianJ]

Inflation, you get less value every day ;)

[@mattamiller]

Um.....can someone tell me why the majority of the audience seems to be comprised of young women? I know Bob Murphy's sexy, but come on!

[@contactjl]

The problem is, this man is a horrible public speaker.

[@arthursage9358]

20:57 Damn the hypocrisy with the public and public office who screams free market but as soon as their is instability instead of helping and innovating one’s self enterprise to elevate their people’s or community. Authoritarian Americans be like “they should be punished for trying to help their people.They just want more power that makes them help their people then they will help their people will help one another be self efficient and tell other people to not let your government decide and do things for you”. It’s evil to tell people who think they free that they actually not free. But again I might be wrong or confused.