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Prof. Jonathan Gruber, our guest for this episode, likes to tell his students that economics is a fundamentally right-wing science. What he means by that is that classical economics is built on one powerful explanatory insight: that free markets—networks of buyers and sellers, producers and consumers, weighing the trade-offs of different options and making self-interested choices based on supply and demand—do a better job of deciding how to allocate resources than can be achieved by a top-down, command-economy approach. But as Gruber goes on to explain, that principle only holds when all participants have equal access to markets and to information; in the real world, imbalances in that access lead to market failures, inefficient allocations of resources that leave most people worse off than they would otherwise be. That’s why government regulation still has a role in a properly functioning economy. Tune in to hear Prof. Gruber explain why we need “capitalism with gutter guards” to ensure equitable outcomes, especially in sectors of the economy such as healthcare where the ideal markets envisioned by classical economics are particularly unattainable or undesirable.
Relevant Resources:
MIT OpenCourseWare
The OCW Educator portal
Prof. Gruber’s faculty page
14.01 Principles of Microeconomics on MIT OpenCourseWare
14.41 Public Finance and Public Policy on MIT OpenCourseWare
Power and Progress (book by Daron Acemoglu and Simon Johnson)
Video version of this interview on YouTube
Music in this episode by Blue Dot Sessions
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Credits
Sarah Hansen, host and producer
Brett Paci, producer
Dave Lishansky, producer
Jackson Maher, producer
Show notes by Peter Chipman
We’re dropping into your feed to share the news that our founding host, Laur Hesse Fisher, is departing MIT and TILclimate. In this episode, Laur sits down with new host Madison Goldberg to talk about the philosophies that have shaped TILclimate over seven seasons and take listeners behind the scenes of the show. They also discuss what’s in store for season eight—because TILclimate isn’t going anywhere.
Check out an extended video version of this conversation: https://www.youtube.com/watch?v=kB544MVZ9bg
For a deeper dive and additional resources related to this episode, visit: https://climate.mit.edu/podcasts/update-where-weve-been-and-where-were-going
For more episodes of TILclimate by the MIT Climate Project, visit tilclimate.mit.edu.
Credits
Laur Hesse Fisher, Founding Host and Senior Editor
Madison Goldberg, Incoming Host and Associate Producer
Aaron Krol, Writer and Executive Producer
David Lishansky, Editor and Producer
Danielle Simpson, Editor
Music by Blue Dot Sessions
Artwork by Aaron Krol
Special thanks to Brett Paci of MIT OpenCourseWare and to the folks at Giro Studio for their help producing this episode.
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