Sean Carroll's Mindscape: Science, Society, Philosophy, Culture, Arts, and Ideas 84 | Suresh Naidu on Capitalism, Monopsony, and Inequality
Feb 17, 2020
Suresh Naidu, a Columbia University economist, dives into the complexities of capitalism, inequality, and monopsony power. He challenges the conventional wisdom about minimum wage increases and labor market dynamics, emphasizing data-driven insights. Naidu discusses how monopolistic practices distort wage negotiations and the vital role of collective bargaining for workers. He also critiques neoliberalism and explores innovative policies like Universal Basic Income that could address economic inequality and promote inclusive prosperity.
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Economics: Theory and Practice
- Economics blends abstract theory with practical application, much like physics.
- Understanding economic forces allows for informed manipulation, like setting minimum wage or interest rates.
Data's Impact on Economics
- 20th-century economics focused on mathematical models, but the rise of big data has shifted the emphasis to empirical evidence.
- The causal revolution prioritizes identifying cause-and-effect relationships over mere correlations.
Return on Education
- One key lesson from data-driven economics is a more accurate estimate of the return on investment for education.
- A year of schooling yields about 9-12% additional earnings, challenging prior assumptions.
