Homer has found a new British show on PBS and he’s really loving it, but then they interrupt his show to ask for money. Betty White is a guest during the telethon and mentions that anyone who watches even a second of PBS and doesn’t donate is equivalent to a thief.
The Public Broadcasting Service (PBS) is a nonprofit American public television show. While the channel focuses primarily on educational programming, it relies on donations from viewers to help support its budget. PBS would be considered an example of a public good since it is nonrival and nonexcludable. One of the problems with public goods is that it is subject to underprovision because of free riders, like Homer, who consume the service but don’t contribute to its production.
Thanks to Tom Flesher for the recommendation on Twitter:
@Wootenomics Have you ever taught the free rider problem with the Simpsons clip where Betty White says if you watched PBS and don’t contribute you’re a common thief?
J Cole discusses the impact of tax brackets on his earnings. As J Cole continues to increase his earnings, he moves into new tax brackets, which requires an increasing amount of tax liability to the government. This song could be used as a good pre-class video before discussing tax policy. The Tax Policy Foundation provides the country’s tax brackets since the inception income taxes as part of the 16th Amendment.
J Cole notes in the song that the money is supposed to support schools and roads, but he doesn’t believe the money is being used efficiently by politicians. He argues that because he pays so much, he should be able to have some say in how the money is used, but that’s part of the explanation for pork spending already in that companies rent seek and convince politicians to vote in favor of their interests:
I pay taxes, so much taxes, shit don’t make sense Where do my dollars go? You see lately, I ain’t been convinced I guess they say my dollars supposed to build roads and schools But my niggas barely graduate, they ain’t got the tools Maybe ’cause the tax dollars that I make sure I send Get spent hirin’ some teachers that don’t look like them And the curriculum be tricking them, them dollars I spend
In this animated short from the Walt Disney Company, Uncle Scrooge discusses the history or money and the importance of money in the overall economy. There are A LOT of great teaching opportunities in this clip and would make a great summary of a money supply lesson or a required video to be watched before the lesson.
Opening to 7:15 History of Money Huey, Dewie, and Louie visit Scrooge McDuck and request that he help them save the money they had earned. Scrooge goes through the history of money and discusses the role of salt as the original salary that Roman soldiers received. He then goes on to describe money from other societies and why money was important following original barter economies. The characters even discuss the role of money as a medium of exchange!
7:15 to 9:59 Inflation After learning of the importance of money in the economy, the brothers question why central banks don’t just print more money if everyone wants it. Uncle Scrooge discusses the role of fiat money and why it’s important for the money to be backed by something or someone who can promise to pay the notes that are printed.
10:00 to 13:20 Financial Planning and Taxes Uncle Scrooge teaches the brothers about the importance of budgeting. People need to make sure that they allocate a portion of their income toward rent, food, and other necessities. He also teaches them about the role of taxes and how important it is for governments to have a budget and make sure that they collect taxes to pay debt.
13:20 to End Velocity of Money & Investment The boys are curious why Scrooge keeps so much money in his vault if he tells them that it’s important to put money “to work.” He teaches them that the money in his vault is just his petty cash and then goes on to discuss the importance of money circulating through the economy. The ending portion discusses the role of corporations issuing stocks and shareholders collecting dividends. At the end, he signs the boys up to manage their funds, but charges them a fee. The boys aren’t happy, but he laments that “nothing is ever free.”
PBS Newshour investigates the economics around the first Thanksgiving, including the differences between Europe’s cash economy and the indigenous barter system as well as common resources and property rights.
Instead of being served by a single public fire department, the area has regional brigades of volunteer firemen who are more focused fighting each other rather than putting out the fires. As the brigades fight for the right to put out the fire, the building burns and looters steal what they can.
Thanks to James Gordon from Elbert County Comprehensive High School for the clip suggestion and description!
A group of enlightened drivers ponder the ownership of a beach. Beaches are typically public property, but in some areas they may be private land. One of the issues of beach ownership is determining who’s liable for an injury. A lack of clear property rights makes it an interesting argument for public/private ownership of areas.
In this Stossel in the Classroom segment, Stossel analyzes the issues around common resources and public goods. In the opening interview, many people believe public versions of items are better and often cite the lack of a price as the main reason for selecting that over a private item. The same people are quick to point out that a public toilet doesn’t have the same connotation because people overuse it and don’t take care of the resources because no one owns it.
This clips is beneficial to talk about how tragedy of the commons can be overcome by assigning property rights to a business and turning it into a private good.
After Dee has a heart attack, she heads to the hospital only to find out that she doesn’t have insurance because her dad canceled the policy when they were younger. Mac and Charlie are confused that people have to pay to stay in a hospital because they think of it like a public good similar to police and fire protection, which is nonexcludable.
Frank shows up to get a full body health scan because he’s been having a bit too much fun. This line alone is a great clip for teaching moral hazard when it comes to healthcare.
In this episode of “It’s Always Sunny in Philadelphia,” Mac and Charlie try to go swimming during the heat wave in Philadelphia. They grab their beer and floaties and head over to the local swim club. However, they are stopped by a worker who makes them put their beer away and then proceeds to tell them that they cannot be there because they are not members of the swim club. Frustrated with this, Mac and Charlie decide to make their own swim club, one that anyone can attend.
This clip relates to economics because the swim club is an example of an excludable, non-rival good, which is a club good. Because Mac and Charlie don’t pay the fee to be a member, they are unable to swim there. And, the worker tells them that they are at full capacity and are accepting no more members because the pool has the ability to restrict the number of members and charge higher prices. The two get disgruntled because they think the pool really isn’t at full capacity. They decide to go to an abandoned pool, one they used to swim in during their childhoods, and revamp it to make it nonexcludable and nonrival, which would make it a common resource. However, since it would become a public good, it would be easy to get overcrowded, making it rival and a common good.
Homer and Lisa go to the Springfield Museum, but Homer isn’t sure he understands the entrance policy. He checks with the attendant, but doesn’t know why anyone would want to pay the suggested donation when they could go in without paying anything. Because the museum is available to everyone, regardless of whether they pay, it operates similar to a public good. The problem? Public goods are subject to free riders, like Homer.
