Crash Course Economics: Introduction

Hosts Introduction

• Jankum Clifford: High school economics teacher and YouTuber.
  • Focus on theories and graphs of economics (textbook material).
• Adrienne Hill: Senior reporter for Public Radio Show Marketplace.
  • Focus on real-world applications of economics (practical insights).

What Economics Is Not

• Not about money or getting rich, though it helps.
• Not about the stock market.
• Not just about forecasts by economists in bow ties.

Definition of Economics

• Study of people and choices.
• Defined by Alfred Marshall as a study of man and wealth.
• Economics involves everyday decisions:
  • Whether to work or go to college.
  • Companies deciding what to produce.
  • Government decisions on spending during recession.

Scarcity and Cost

• Two fundamental assumptions in economics:
  1. Scarcity: Unlimited wants vs. limited resources.
  2. Cost: Everything has a cost.

Opportunity Cost

• The cost of the next best alternative when making a choice.
• Example: Watching a video instead of something else.

Benefits and Costs

• Decision-making involves weighing costs against benefits.
• Examples:
  • Car accidents vs. convenience of cars.
  • Military spending vs. social services.

Politics and Economics

• Military spending discussed as an opportunity cost.
• Both market and government roles are essential.
• Incentives are crucial in policy implementation:
  • Correct incentives can solve issues without more resources.
  • Example: University funding based on course completion vs. enrollment.
  • Perverse incentives can lead to negative outcomes, e.g., rat bounty in Vietnam.

Macroeconomics vs. Microeconomics

• Macroeconomics: Studies the economy as a whole.
  • Issues like unemployment, inflation, government spending.
• Microeconomics: Individual and business economic decisions.
  • Issues like hiring, product release timing, and environmental taxes.

Course Outline

• Over the next 40 weeks, topics will include:
  • Supply and demand
  • Monetary policy
• Goal: Enlighten understanding and inform decision-making.

Participation and Support

• Encouragement to support via Patreon to keep the course free.

Conclusion

• Economics is a tool for better understanding and decision-making.
• The series aims to make economics engaging and accessible to all.