John Stossel, through ReasonTV, looks at the regulations behind the food truck industry. From a competitive market standpoint, food trucks have the ability to respond to high demand areas by relocating at any given moment. For brick-and-mortar businesses, however, food trucks enter the market as a low-cost competitor and steal customers from permanent restaurants. Many cities in the United States have setup regulation limiting the location of food trucks or the hours they may operate. This rent seeking behavior, however, limits the amount of options available to consumers in the name of “fairness.”
This video does a nice job of describing many of the economic arguments for and against raising the minimum wage in a comical way. The clip is a few years old, but it still does a nice job of discussing many of the common arguments. Note: the clip does include a supply and demand graph, but it labels supply and demand incorrectly! This is a good opportunity to discuss economic misconceptions, as well as the labor supply and labor demand curves.
Thanks to Rebecca Chambers for the clip and description!
A brief background of NAFTA and the problems of exiting NAFTA. A good discussion within the video covers the parties that gain and the parties that loses from NAFTA. A good note in the video is that the jobs that are lost are different from the jobs that were gained.
It’s not often that you can learn about the Laffer Curve from Art Laffer himself. While relatively controversial, Art Laffer popularized, but did not create, the notion that tax revenues could increase by lowering taxes. In this clip, he does a good job distinguishing between the two sections of the curve and focusing on the pedagogical side of the curve.
This is a series of clips from the show Law and Order where the detectives uncover a doctor operating a black market kidney ring. The detectives debate throughout the episode of whether kidneys sales should be prohibited and if there is an efficient way to allocate kidneys in the market.
This comedy series shows a series of examples of associated with price ceilings for apartments in New York City. It shows not only the predictably inefficiently low quality of these apartments, but also the wasted resources that are involved when there is a shortage of apartments.
Watch Nixon address the nation during a period of high inflation. Nixon’s decision to implement price freezes across the United States sounds like a great policy, but the inefficiency of price manipulation typically outweighs the benefits that some consumers receive. Here’s a nice summary from the Cato Institute.
John Stossel explores New York City’s decision to implement rent control throughout the city. He covers many of the predictable outcomes associated with inefficient policy controls. Ask students to identify issues as he progresses through the video. While the references are a bit dated, there aren’t many videos that hit the outcomes as closely as this one does.
Many have seen Jimmy McMillan as a meme, but so few have gotten to see him in the NYC debates. McMillan argues that rent in New York City is too high and should be regulated by the government. This is a good clip to use before a discussion on price ceilings and the normative argument of prices being ‘too high’.