The Great Simplification with Nate Hagens The 10 Core Myths Still Taught in Business Schools | Frankly 99
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Jun 20, 2025 The discussion dives into the widespread myths taught in business schools, emphasizing how they oversimplify economic value and human behavior. Key topics include the critique of the traditional supply curve, revealing the importance of decreasing costs in modern production. The conversation also challenges misconceptions about money creation, depicting it as driven by loans rather than deposits. Ultimately, it advocates for evolving economic models that prioritize environmental sustainability and societal well-being over outdated growth narratives.
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Market Price vs True Value
- Market price does not equal true value because willingness to pay depends on wealth, not need.
- Markets undervalue essentials like clean water and overvalue luxuries like yachts, skewing production.
Myth of Rational Humans
- Humans are not rational utility maximizers, but emotional and social beings.
- Economic models based on rational self-interest fail to capture our true behavior and needs.
Supply Curves and Scale
- Upward sloping supply curves are outdated; modern firms often decrease costs with scale.
- Scale drives market concentration and winner-take-all outcomes, challenging antitrust assumptions.