Problems in Resource Markets


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Tournament Theory

Tim Harford, author of The Logic of Life and The Undercover Economist, explains tournament theory. Why is your boss overpaid? What are the benefits of this pay scheme? What are the costs of this way of paying?


Government Redistribution
Government Redistribution II

Milton Friedman attacks government attempts to redistribute income in order to help the poor. He argues that by creating incentives for people to become dependent rather than independent, the programs hurt the recipients in the long run. Are the people in the two examples Friedman highlights acting rationally? This clip is several decades old. How are things different today?

In a 1980s discussion, Thomas Sowell argues that government welfare programs subsidize poverty, and that whatever is subsidized, is increased. How would you summarize the two points of view in the video? At the time of the video, only 12% of families were not intact. What does the term "intact family" mean? What has happened to that number over time? Why?

These links were checked on September 21, 2009.
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Copyright Robert Schenk