Saturday, April 12, 2008
Example of a video review
In this video clip, Milton Friedman sets out to explain the power of the free market, as a superior way to central planning in allocating scarce resources to unlimited wants.
He uses the example of a pencil and how simple profit maximization has led to co-operation among people living around the world.
To me, many of the critics of the free market could actually benefit from viewing this video. Many of such critics only want to latch on the usual arguments that the free market does not ensure income equality.
They often forget that it is precisely because of the free market that everyone can purchase their goods at the lowest possible price. That itself is valuable even if you are a philantropist. For example, even if you are Mother Theresa, and you want to help the poor by donating blankets to them, using the free market would ensure that you are able to purchase the blankets at the lowest possible cost, allowing more of the poor to benefit from your deed.
In this video clip, Milton Friedman sets out to explain the power of the free market, as a superior way to central planning in allocating scarce resources to unlimited wants.
He uses the example of a pencil and how simple profit maximization has led to co-operation among people living around the world.
To me, many of the critics of the free market could actually benefit from viewing this video. Many of such critics only want to latch on the usual arguments that the free market does not ensure income equality.
They often forget that it is precisely because of the free market that everyone can purchase their goods at the lowest possible price. That itself is valuable even if you are a philantropist. For example, even if you are Mother Theresa, and you want to help the poor by donating blankets to them, using the free market would ensure that you are able to purchase the blankets at the lowest possible cost, allowing more of the poor to benefit from your deed.
