Dr. Munger on Prices and Information

Another fantastic video from Dr. Munger of Duke Univ. Prof. Munger is a frequent EconTalk guest, the interviews and discussions are highly-recommended. Infirmative and entertaining.

As an aside, I get annoyed when I see posts on Facebook, Twitter, etc. explaining how little something costs to produce (usually text messages or iPhones) and then concluding that consumers are somehow being robbed or scr*wed. Prices are determined (in at least relatively free markets) by supply and demand, not costs. Though I believe costs to set a lower boundary for prices over the long-haul.

Prices are very important signals anda convey information to buyers, sellers, middle-men, all parties. Interfering with them for political ends causes all kinds of problems. [ Try to read Walter Williams's Economics for the Citizen (PDF, 120k). Probably the most concise economics lesson around. Broken into 10 brief parts. After that you'll know more economics than 98% of the population. ]

Anyway, enjoy the video. ;-)

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