The Complexity of Free Markets

A famous essay argues that “not a single person on the face of this earth” knows how to make a pencil. How true is that? In this 2016 episode, we looked at what pencil-making  can teach us about global manufacturing — and the proper role of government in the economy.

• SOURCES:
  • Caroline Weaver, creator of the Locavore Guide.
  • Matt Ridley, science writer, British viscount and retired member of the House of Lords
  • Tim Harford, economist, author and columnist for the Financial Times
  • Jim Weissenborn, former CEO of General Pencil Company
  • Thomas Thwaites, freelance designer and associate lecturer at Central Saint Martins.

• RESOURCES:
  • "When ideas have sex," by Matt Ridley (TED, 2010).
  • "How I built a toaster — from scratch," by Thomas Thwaites (TED, 2010).
  • "Look on this toaster, ye mighty, and despair!" by Tim Harford (Financial Times, 2009).
  • "I, Pencil," by Leonard Read (Foundation for Economic Education, 1958).

• EXTRAS:
  • “Fault-Finder Is a Minimum-Wage Job,” by Freakonomics Radio (2025).