Going Places (1948)

From YouTube:

Cold War cartoon defending the profit motive against anti-capitalist critics. The second of seven smart-looking animated shorts in the “fun and facts about American business” series. Its subject is “the profit motive,” and it stars “Freddie Fudsie,” a lazy soap maker who just wants to go fishing. He invents bar soap, makes some money, and is about to retire in peace and quiet when a sexy lady (the Profit Motive) walks by and Freddie — who suddenly needs more money to win her affection — never sees a fishing hole again. But that’s okay, because “the profit motive has been the driving force behind the growth of American industry” and “will make a better life for the children of tomorrow.”

2017 0

The Simpsons — Profit Motives of Publishers

What if it does so, in order to make a profit, by producing things you think are of poor quality. When is profit seeking good? Does Apple prey on us by creating the iPads we love? Or is Lisa on to something here, suggesting that we should not buy things from publishers that don’t contribute to “culture”? This clip should provoke some good discussion, and is ideal for an economics class.

Thanks to F. Bailey Norwood.

2017 0

Simpsons — Mr. Plow

Homer finds great success in operating a snow plow business, but his success is short-lived. Because of the ease of entry into the market, competition quickly eliminates his profits and he finds that competition isn’t as friendly as expected.

2017 0

I Love Lucy — 5 Cent Hamburgers

Price wars aren’t good for business profits, which is why many firms may want to collude. If two goods are close substitutes, prices should be driven down near the marginal cost of production. This is a good introduction to the long run outcome of perfect competition, but can also be used to show the shut down rule. When prices drop too low, it may be worth some firms to stop production.

2017 0

The League — Colluding to Split the Body

Andre is upset with a competing doctor decides to start operating on feet (toebesity) because they had originally agreed to split the bottom in half. Removing competition for plastic surgery meant that each could charge higher prices for their services.

2017 0

Pixar — One Man Band

This clip is a great introduction to monopolistic competition. Each performer provides a similar service, but they are not perfect substitutes for one another. When a new competitor enters a market, the demand for the original firms decreases and profits should fall as well.

2017 0

Quartz — Robots Should Pay Taxes

Bill Gates, in an article with Quartz, argues that if a robot which take workers’ jobs should be required to pay taxes. Those tax funds should be redistributed to pay for re-training programs.

2017 0