Lex Fridman Podcast Paul Krugman: Economics of Innovation, Automation, Safety Nets & Universal Basic Income
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Jan 21, 2020 
Paul Krugman, a Nobel Prize-winning economist and CUNY professor, dives into fascinating topics surrounding economics and society. He discusses the balance of market forces and safety nets in achieving an ideal economy, critiques the oversimplified view of automation as the sole culprit for economic woes, and champions the necessity of universal basic income. The conversation also ventures into innovative economic models for future societies, like those on Mars, and highlights the complexities of international trade, especially in the context of U.S.-China relations.
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Episode notes
Economic Utopia
- Krugman's economic utopia prioritizes a strong social safety net and environmental regulations.
- It aims for a society where everyone lives in the same material universe, minimizing extreme wealth disparities.
Competition's Limits
- Competition is beneficial in many sectors, driving innovation and choice, like in the telecommunications industry.
- However, some sectors, like healthcare, don't suit competition due to information asymmetry and the complex nature of services.
Healthcare's Information Asymmetry
- Healthcare markets struggle with information asymmetry, hindering informed decision-making.
- Comparison shopping for complex procedures like surgery isn't realistic, unlike simpler purchases like cars.
