People have a wide array of preferences for working conditions, which creates a heterogeneous workforce. Some workers may need to be paid extra to compensate for unpleasant conditions (known as a compensating differential) while others may be willing to be paid less to work a job that they enjoy. Workers are often assumed to be utility maximizers, not income maximizers, in the decision of which jobs to work and how many hours to work. Adam highlights that notion at the end of this brief scene with a USDA veterinarian who specializes in the disease.
The G Word with Adam Conover – Unintended Consequences of Farming Subsidies
The US has subsidized farm production of grains and corn since the Great Depression, which has resulted in a surplus of production. As a result, the US is able to produce a lot of processed snacks that use grains and corn, but it has the unintended consequence of creating negative health impacts. While the goal of the policy has been on increasing the incomes of farmers, it has resulted in more obesity in America
The G Word with Adam Conover – Rent-Seeking in Agriculture
When companies engage in rent seeking behavior, they are engaging in behavior that is intended to increase their wealth without a subsequent increase in productivity. The USDA has given the agriculture industry power in shaping US food policy, but it has resulted in policies that have increased the industry’s profit without necessarily improving public health.
The G Word with Adam Conover – Overwhelmed by Choices
Have you ever stepped foot in a grocery store and been immediately overwhelmed by all the choices you have about everything from chips to sodas? The paradox of choice is that we often believe having multiple options makes it easier to find the product we really want, but it turns out that having a lot of options makes it harder to figure out exactly which one we want and often leaves us unhappy with our choice.
The G Word with Adam Conover – The Value of A Label
In the late 1800s and early 1900s, there was no real oversight on meat packing and procession. When Upton Sinclair wrote The Jungle, it brought national attention to the unsanitary conditions at meat packing facilities. Today, the labels are intended to serve as a signal that meat has been processed correctly. It’s an attempt to correct for information asymmetry in which the food processor knows how the food was handled, but the final consumer is unaware.
Learn more: https://www.ers.usda.gov/webdocs/publications/41203/18885_aer793.pdf?v=0
The G Word with Adam Conover — Obama Does His Own Taxes
Adam is contemplating whether it makes sense for him to star in a new series about the role of the government while it’s produced by former US President, Barack Obama. When Adam gets up, he notices the President doing his own taxes and is surprised he doesn’t just hire an accountant to do it. While Obama claims he enjoys it, he doesn’t appear to be very good at it. Typically, people can benefit from trading services and specializing in things they are good at relative to other people. The opportunity cost of the President doing his own taxes is likely really high compared to an accountant.