The story of the grasshopper and the ant contrasts two ways of making decisions over time. The ant way is captured in the permanent-income hypothesis, which economists says is the rational way for people to behave. The grasshopper way is to focus only on the present and to ignore the future. Economists tend to think that this approach to spending is irrational and have worried about it for at least a century. The original Aesop's version (found here) is only a few lines long. The Disney cartoon version stretches it to over 8 minutes and gives it a happy ending. There is still a moral to the story, but not the same as the original.
Do you think the Disney version improves on the original story, or does it miss the point of the original? Justify your answer.
Here is the song from this clip sung by Shirley Temple. In the 1930s movies featuring the rich were very popular.
Here is Walt Disney giving some background info.
In this clip, Milton Friedman compares incentives when you spend money on yourself and when you spend other people's money on other people. Can you draw the matrix he is suggesting and explain how he see the incentives in each cell?