In today’s episode I’m honoured to welcome back Bryan Cheang of Students for Liberty to discuss the fascinating topic of market failure. We discuss the textbook definition of the phrase, how it deviates from the mainstream use of the term, and whether state intervention is the best means to solve market failures. This is an episode jam packed with much to learn and many cases to learn from, including market failures regarding pollution, healthcare, education, and much more.

In this episode, we discuss:

- The textbook definition of market failure with its feature of competitive equilibrium and Pareto efficiency

- 2 examples of market failure arguments, positive and negative externalities, and how they play out in the real world

- Where the mainstream use of the term deviates from the textbook definition

- Why it is wrong to use equity as a standard to judge capitalism

- The “nirvana fallacy” and why it can be dangerous to regard the State as infallible

- Public Choice Theory, special interest groups, and the insidious consequence of concentrated benefits with dispersed costs

- The inefficiencies of the NHS in the UK, and alternative solutions to state intervention

- How PIC grants in Singapore can have negative societal effects

Much thanks again to my guest Bryan for being such a wonderful guest on the show, if you would like to learn more about him, you can check out his organization and what they do, you can go to www.facebook.com/SingaporeSFL.

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In this week’s episode, we take a deeper look at the economics behind the recent bankruptcy filing of Toys ‘R’ Us, and discover why, in the short term at least, fans have nothing to worry about.

The majority of the episode will focus on Toys ‘R’ Us’ history, its partnerships, and its success strategies. Next, we will take a look at the circumstances surrounding its bankruptcy filing, and learn about the chapters and mechanisms that a company can take. Finally, we will be looking back at Toys ‘R’ Us in Singapore, to find out why our local chains are isolated from the bankruptcy filing, a big relief indeed for long time fans of the brand.

In this episode, you will learn about:

- How founder Charles Lazarus built Toys 'R' Us

- The cost strategies that built the Toys 'R' Us empire

- How new competitors killed Toys 'R' Us' price advantage

- Why the restructuring under ex-CEO John Eyler was so costly

- The $6.6b USD leverage buyout that saddled Toys 'R' Us with debt

- The bizarre circumstances leading to the bankruptcy filing

- How Chapter 7 and Chapter 11 differs, and what it means for Toys 'R' Us

- Why Toys 'R' Us Singapore is protected from the bankruptcy filing

Sources:

http://www.company-histories.com/Toys-R-Us-Inc-Company-History.html

https://www.bloomberg.com/news/articles/2017-09-20/toys-r-us-lives-on-because-mattel-and-hasbro-can-t-let-it-die

https://www.bloomberg.com/news/articles/2017-09-19/toys-r-us-caught-in-game-of-chicken-that-turned-into-dominoes

http://www.straitstimes.com/business/companies-markets/toy-companies-shares-tumble-on-concerns-of-toys-r-us-bankruptcy

http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics

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Why do some people charge ridiculous prices for water during Hurricane Harvey? Why do others re-sell concert tickets at ludicrous prices? Are they just awful individuals looking to make a quick buck at the expense of others?

In today’s episode, we look beyond surface morality to analyse price gouging as it happens in Hurricane Harvey and the fundamental economic function that it serves. Further, we look into the localized case of Singapore’s Michelin Star Hawker Stalls to witness the effects absent any price gouging. Lastly, we discuss price gouging with regard to concert tickets, and why it is uniquely problematic when finding a solution.

Throughout the episode, you will learn:

- How supply and demand determine price, the price adjustment

mechanism, and how price relays information back to consumers

and producers

- Why water prices rose during Hurricane Harvey, and how price

gougers were essential in bringing key supplies to market

- The effect of state intervention on normal market operations

through a price freeze or mandated charity

- The concept of deadweight loss, and how it affects both consumers

and producers

- How concepts of price adjustment and deadweight loss apply to

Singapore’s Michelin Star Hawker Stalls

- Why ticket gougers exist, and how the concert ticket market

provides unique challenges to stop price gouging

Follow these pages to keep up with the latest episodes and for supplemental content!

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What would you say to the idea of Universal Basic Income (UBI) where you receive a monthly cash handout from the government at the beginning of each month unconditionally? Might it help a majority of individuals attain a reasonable standard of living or is it too farfetched of an idea? In today’s episode, I talk with Otto Lehto from Finland, a Phd candidate in political economy at King’s College London, and former chairman of the Finnish branch of the Basic Income Earth Network (BIEN) about this radical idea. Among many things, we discuss Finland’s efforts in introducing UBI into mainstream political discussion, its philosophical underpinnings, and whether or not UBI will turn everyone into couch potatoes.

While at the start of my conversation I had my doubts about the merits of UBI by itself, Otto has managed to sway my perspectives. Where many hard line libertarians might see UBI as an overreach of the state, Otto reminds us that it should not been in isolation but rather as competing with the current system of means-tested welfare. Viewing the issue from this lens, UBI can be a means of breaking down the monopoly of welfare services that the state currently has, adding choice and the ability for individuals to participate in the free market.

Throughout this episode, I discuss the following issues:

- Why UBI is a practical necessity in today’s economy

- How UBI has placed itself within mainstream politics in Finland

- What the organization Basic Income Earth Network, or BIEN does

- Otto’s philosophical arguments for a limited welfare state

- How UBI is especially suited for playing the role of welfare in a limited state

- What empirical data has to say about work disincentives of UBI

- Comparing the optimistic vs. pessimistic views on the social effects of UBI **

- Which system of UBI (complete replacement or complementary) is politically feasible

- The reasoning behind Otto’s wide ranging interests, and the link between philosophy, the humanities, and liberty.

Again, much thanks to Otto for being such a wonderful guest on the show.

If you wish to find out more about Otto Lehto, you can do so at his website www.ottolehto.com

If you wish to learn more about UBI, you can do so at www.basicincome.org

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As of the 29th of June 2017, the world quietly passed a 10 year landmark in modern history, the launch of the original iPhone. And while each year consumers look forward to new and exciting features in the latest smartphone launches, it is worth pointing out the dramatic shift that has occurred during the iPhone decade. From examining how Apple’s business has shifted since the first iPhone, to how the dawn of the smartphone age moved markets, today’s episode will be a look at the economic impact of the iPhone, telling the story of how a revolutionary consumer product changed industries and changed lives.

The following points will be discussed within the episode:

How the iPhone changed Apple:

- Sales distribution, how the iPhone came to control ⅔ of Apple’s sales

- Financial Results, why Apple is currently the world’s most valuable

publicly traded company

- Industry position, from underdog to innovative leader

How the iPhone affected periphery industries:

- Music, shaking up music players and record labels

- Camera, why photos are more relevant than ever even if the digital camera is not

- Advertising, how “influencers” were born, and the fundamental shift from print to digital

- Apps, the birth of a new billion dollar ecosystem

How the iPhone changed the life of the assembly line worker:

- The reason why Apple manufactures in China and not elsewhere

- How assembly line work provided a path to escape poverty

- How Foxconn built iPhone city and the economy that sprung up around it

- Why location economies and political leaders play key roles to attract factory jobs

- Addressing the criticism of exploitation

Follow these pages to keep up with the latest episodes and for supplemental content!

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What does philosophy have to do with economics? Or with any practical issue for that matter? Is it necessary to understand the nature of reality? What about the nature of our knowledge and what it means to be certain?

Today with my guest Davin Chee, we dig a little bit into the realm of philosophy and explore the system of objectivism, the book in which it is displayed prominently, Atlas Shrugged, and its controversial author Ayn Rand. We talk about the 4 pillars of objectivism: metaphysics, epistemology, ethics, and politics, and discuss how it relates to our daily lives and where Ayn Rand was misunderstood.

If you have never heard of Atlas Shrugged before, here is a quick summary: Atlas Shrugged depicts a dystopian United States, wherein many of society's most prominent and successful industrialists abandon their fortunes and even the nation, in response to aggressive new regulations, whereupon most vital industries collapse. The theme of Atlas Shrugged, as Rand described it, is “the role of man’s mind in existence”. The book explores a number of philosophical themes from which Rand would subsequently develop Objectivism. In doing so, it expresses the advocacy of reason, individualism, and capitalism, and depicts what Rand saw to be the failures of governmental coercion.

Throughout the episode, we discuss the following topics:

- How Davin was first introduced to philosophy

- Why he decided to enrol in the Objectivist Academic Center

- Why he thinks philosophy matters even to pragmatic Singapore

- Various themes of the book such as:

- Producers vs. Pull

- The strong protagonist vs. the weak villains

- The metaphor of Atlas and the “sanction of the victim”

- The 4 pillars of Objectivism:

- Metaphysics (Objective Reality, “Nature, to be commanded, must be

obeyed”

- What it means

- How it contrasts with other metaphysical concepts such as idealism

- Where it plays out within Atlas Shrugged

- Epistemology (Reason, “You can’t eat your cake and have it too”)

- What it means

- How it relates to human nature and individual choice

- How it features in Atlas Shrugged

- Ethics (Self-Interest, “Man is an end in himself”)

- What it means

- Why the notion of self-interest is misunderstood

- Where it plays out within Atlas Shrugged

- Politics (Capitalism, “Give me liberty or give me death”)

- Why Rand advocated for a system of capitalism rather than

socialism

- How the regulations in the book resemble regulations in real life

- Where it plays out within Atlas Shrugged

Again, thanks to Davin for being a guest on this show. If you want to reach out to Davin Chee or read some of his works, you can find him at www.libertarianism.sg.

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10 years ago, the concept of video games was a mostly private affair. Players would spend hours clicking away to completing quests or slay monsters, while at the same time earning the stigma of being anti-social or “basement-dwellers”. However, like many parts of the economy, technology has fundamentally affected the video gaming world. Where most games were offline in the past, now many have online aspects where players can interact or compete with others.

One of the most fascinating results of the growth of technology and video games is the birth of new periphery industries in contrast to just developing and selling games. Streaming, for instance, is now a legitimate career for many individuals, and competitive gaming, or E-Sports, is now a multi-million dollar market and rapidly growing.

However, underneath the growth and change there are still many problems that persist. While streaming allows easier interaction between a streamer and their audience, it also makes it easier for people to post racist or sexist comments. Also, while there is money to be made, there are also questionable practices or legal grey areas that have yet to be settled.

In today’s episode therefore, I talk to my dear friend Zansher Husref, whose background in law and various stints within E-Sports and the gaming community can provide valuable insight. Aside from learning about the technical aspects of streaming or E-Sports, I got to know a perspective from the inside. A perspective that is constantly fighting to prove itself amidst the modern economy. And a perspective that is borne out of battling the laboured stigmas surrounding video games.

Through this episode, we talk about the following topics:

Background

- How Zansher got more involved within E-Sports

- How his involvement has shaped his perception as a consumer

Streaming

- His views of the controversial Jimmy Kimmel clip and why it should

be taken with a grain of salt

- How streamers make a living, or in other words, the value that they

provide to their audience or their sponsors.

- Zansher’s own experience with being a streamer, and what it is like

compared to being a viewer.

E-Sports

- The contrast between E-Sports and traditional sports as a viewing

experience.

- That a mismatch between the development of the E-Sports industry

and its legal environment causes many problems

- But why change in the legal aspects of the industry might be

difficult to achieve

The community

- The role of gaming communities within E-Sports and how they

affect the game

- The dark side of the community and how it threatens the legitimacy

of the industry

- Whether or not developers should tend to every issue that the

community brings up

Again, thanks to Zansher Husref for being an amazing guest on the show. If you wish to learn more about him you can check out his writings at www.zansher.wordpress.com.

Follow these pages to keep up with the latest episodes and for supplemental content!

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Since founding in 2009, Uber has upended the taxi industry, bringing new competition and providing immense value to passengers and drivers alike. However, their path has not been very straightforward at all. In fact, the company faces many issues on the legal front, on their corporate image, and from their own internal politics. So problematic has been their journey that founder Travis Kalinick himself was recently ousted, following many other high profile executives who had gone before him.

Reflecting all this perhaps, is the stark fact that Uber has not recorded a single profitable year since 2009, with losses of $2b in 2015 and $2.8b in 2016 being blemishes on the company’s history. So how is Uber still running? What actually goes on in the business? Can they eventually become profitable?

In this episode, you will learn about:

- The 4 key cost components of a taxi business

- How Uber’s model is different from the traditional model

- The inherent productivity limitations in the taxi industry

- How Uber’s strategy plays into their massive losses

- Whether there is any hope for the future of the business

Much thanks goes to the transportation analyst Hobert Huran and his article on NakedCapitalism. Even though I don't agree with all of it, it is a fascinating analysis and I encourage you to read it as well.

Follow these pages to keep up with the latest episodes and for supplemental content!

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Have you ever felt that disillusioned at work? Did you find that being a lawyer or a banker is not what you expected? Do you just put up with it because of “the money”?

Well, you’re not alone.

Turns out, many Singaporeans go through this experience with their career choice, and that it stems from something deeper in our culture and our education system. Today, I am happy to be able to discuss these issues with Louis Puah of Praxium. Louis’ company is one that is trying to revamp the way Singapore approaches the idea of education and career choice. By designing education based on the individual and not society-defined idea of “success”, he believes that individuals will get greater exposure on the topics of their interests. In the long run, this will aid individuals in having a career that aligns with their purpose.

In this episode, you will learn about:

How pragmatism influences our approach to education in Singapore

Why it is so difficult to change our views regarding education

How career choice affects individuals in the short, medium, and long term

The difference between the qualitative and quantitative aspects of jobs

What UX design is and how it can be applied to career search

How individuals can leverage the gig economy to be more than just Uber drivers

How the “checklist” mentality is detrimental to individual agency

Why the “checklist” mentality should be viewed as a guideline

Why individual purpose should be outward focused***

Thanks again to Louis for sharing his experiences and being a wonderful guest. If you are interested in Praxium and their services, please visit www.praxium.co

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Do you ever feel like you lack a sense of purpose at your typical office job? Are you enraged by the social problems around you but feel helpless about it? Guess what, social entrepreneurship might be just the thing for you.

In today’s episode we have the 2nd ever guest on the show, Debra Lam. Debra is co-founder of the social enterprise Society Staples, a company that targets social inclusion of people with disabilities (PwDs) through her business services firm that runs workshops and team-building events for schools and companies alike.

Throughout the episode, we discuss a range of topics such as:

Background / Social Causes

- Debra’s own experience with PwDs

- The difficulties that PwDs face in society today and the inherent empathy gaps that exist

- What makes social impact measurement challenging for Society Staples

Business / Value Prospect

- How PwDs play a crucial role in their events through the idea of role-reversal

- How role-reversal serves to benefit both clients and PwD facilitators

- The effect that their work has had on event participants

Founding the Business

- Why Debra and her co-founder, Ryan Ng pursued a social enterprise instead of a non-profit or charity

- How Society Staples got involved with DBS, and how their partnership has helped the business develop

- How Ryan and Debra complement each other within the business, and how that dynamic has changed over time

- Why the goal of Society Staples is to eventually close down

Social Enterprise / Entrepreneurship

- The central tension of a social enterprise and the balance between profit and social causes***

- The challenges that Debra faced as an entrepreneur at her age

- What aspiring entrepreneurs should know about being uncomfortable and facing uncertainty

Thanks again to Debra for sharing her stories and being an amazing guest, if you are interested in Society Staples and their services, visit www.societystaples.com

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