Jimmy Kimmel Live — 2nd Grader Explains Trade Deficits

With the recent stretch of tariffs being imposed on other countries (and other countries on us), Jimmy Kimmel uses some of his showtime to interview 2nd graders about the trade deficits. The basis of the segment comes from Trump’s misguided tweet regarding trade deficits and why a trade war won’t hurt the US:

Shiloh, our 2nd grader, explains the pros and cons of international trade, including the potential for lost jobs in the US and unsafe working conditions abroad. She also highlights the pros of trade by noting countries are able to buy more things, create jobs in exporting industries, and bring countries together.

Thanks to Abdullah Al-Bahrani for the post!

Superstore — A Pharmacist’s Salary

Tate has no problem sharing his salary, but it’s unclear the main driver of the salary. In reality, salaries are comprised of a variety of skill and compensating differentials as well as potential efficiency payments. Tate has a doctorate of pharmacy, which should result in higher pay for human capital investments. In the clip above he mentions that people could die if he messes up, which probably adds a lot of pressure to his workday. This pressure could be a compensating differential that increases his pay. However, there’s also a chance he’s paid highly so that he doesn’t goof off, which would be an efficiency payment.

Superstore — Flu Shot Equity

Jonah’s helping out in the pharmacy, but there’s only one flu shot left. The actual pharmacist isn’t much help, so Jonah has to decide who deserves the last flu shot available for the day. Many of the customers are unwilling to drive to a nearby store or come back the next day, and each make an important point about who “needs” it the most. Should the last flu shot go to a pregnant woman, a kindergarten teacher, or the man who was next in line? Rationing can often lead to equity issues when trying to decide who is more deserving of a limited item.

 

One Day at a Time — Risk Aversion

Penelope wakes up from a bad, but her mother is there to comfort her. After a second, Penelope notices that her mom has makeup on despite being asleep. Her mother tells her that she goes through the process of putting makeup on each night just in case she wakes up and meets someone or if she dies in her sleep. In this context, Penelope’s mom is risk averse and undergoes a lot of costs each night “just in case.”

Thanks to Khalaf Alshammari for the clip!

Impractical Jokes — Auction House Meltdown

The endowment effect in economics is a powerful explainer for irrationality. When people own something, they are often not willing to release an item even when someone is willing to pay more than it’s valued at. One of the famous examples is the coffee mug experiment. In this episode of Impractical Jokers, the guys head to an auction house and have one of them act like a remorseful seller who isn’t ready to part with their belongings. After pissing off the auction house members, the joker isn’t willing to buy his own tires back, which his friends submit to the auction house.

Thanks to Alyssa Lampros for the submission!

Young Sheldon — 1989 Technology

Radio Shack was a huge part of Sheldon’s life because of all the great technology tools available. In this scene, Sheldon describes the benefits of having a new computer and tries to convince his mom to purchase one so that they can be more productive. A computer costing $998 in 1989 would be equivalent to about $2000 in 2018 dollars. Sheldon is not initially successful in convincing his mom.

While some technology gains are productivity enhancing, at the end of this episode, we see that the gains aren’t the same for everyone.

Young Sheldon — Productivity and Technology

The Cooper Family decides to purchase a new computer after Sheldon convinces his mother about all the things it could do for the family. Sheldon shows his parents how their life is a bit easier because of the benefits of the computer. Not all of the members of the family experience the technology gains, but instead have gains in happiness.

Young Sheldon — Relative Gifts

The Cooper family is on their way to get a computer unbeknownst to the children. Sheldon’s sister Missy is in love with her pony, even if some of is derived from the fact that Sheldon doesn’t have a toy (known as a positional good). This all changes when their mother announces that Sheldon will be getting his computer. Missy is now upset because she has a “lousy toy” that she loved minutes ago. This scene is a good representation of the issues of inequality despite both parties gaining, the relative gain is unbalanced. The two siblings experience a Pareto improvements in their lives (both gain), but one is happier about the situation than the other.

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