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00:16Today is so exciting!
00:18Oh, I know! Wednesday!
00:21Wait, Copernicus, do you remember where we're going?
00:23To Thursday!
00:25Wait, we're going to Wonky's toy shop to buy that game we've been saving up for.
00:30I love that Wonky sells so many cool games with a twist.
00:34Smack'em, Slap'em, Robots, AI Edition.
00:37We already calculated who will win, and we took your jobs.
00:41Holographic Mystery Hint.
00:43Captain Ketchup murdered Professor Prune in the book room using a rubber chicken.
00:49And Mutually Assured Destruction Ship Battle.
00:53Um, B-6?
00:55Ah!
00:56Today, Emily and I are getting Funopoly, the new talking version.
01:00If you thought regular Funopoly was a blast, and not actually just a very long game that parents hate,
01:06then check out the new talking Funopoly.
01:09Choo-choo!
01:10You just bought a railroad, the way that all rich people do.
01:13Uh-oh, somebody punched the mayor.
01:15But it's okay, you can get out of here for just $30.
01:18Just like real life, buy this game now for just 50 smackarollis!
01:23Hit it while you can, supplies are very limited.
01:24We've been putting aside money for a couple months now.
01:28And it'll be so much easier than playing that old Funopoly we found at a garage sale.
01:35Aw, man!
01:36I landed on one of your properties again.
01:38How much do I owe you?
01:40Not as much this time.
01:42Derek keeps eating my houses.
01:43You've had enough real estate for today, buddy.
01:50I see Funopoly!
01:53I see hours of fun!
01:55I have bird poop on my eyes!
02:05Give me your money and I'll combine it with mine.
02:10That's 50!
02:14Oh, inflation again?
02:16Will this ever stop happening?
02:18Grandma would say, no.
02:19But I don't think it's inflation because the other games are still the same price.
02:24Well, at least they'll see that no one is going to buy it for that much.
02:28I'll take it.
02:29What?
02:29You're lucky.
02:30You got one of the last ones.
02:32Now I see disappointment.
03:24All right, where's the game?
03:26Sorry, Grandma.
03:28Turns out we can't afford it.
03:29Yeah, because of corporate greed.
03:32Money, money.
03:33Money, money, money.
03:35Oh, Grandma.
03:36And you put on a Funopoly man costume and everything.
03:39Me?
03:39No, I'm just dressing up like my favorite brand of peanuts.
03:43But I thought you two had been saving up for that game.
03:45We did, but then they doubled the price.
03:48I mean, how much money does that singing toy maker need?
03:51Even more money!
03:52He completely ruined our weekend plans.
03:55Just like my pet hamster.
03:59It should be illegal to raise prices so high.
04:02Let's slow down.
04:04We know what you're going to say about capitalism, Grandma.
04:07But don't you think there should be a limit to jacking up prices?
04:10At least for children?
04:11First of all, I can't believe you said the words limit and capitalism in the same sentence.
04:15And second, there's more that goes into raising prices than just greed.
04:19Unless you're Big Pharma.
04:20Can you please answer our question without taking us on an educational trip?
04:24Nope.
04:25Not unless you can afford my $100 skip education fee.
04:29Used to be $75.
04:31I can't afford that!
04:33Guess I have to come too!
04:43Twins, meet Ludwig von Mises, economist and...
04:47Who?
04:47You've met him before!
04:49But no one is here, Grandma!
04:51Oh!
04:51My timing is off!
04:52This must not be a prescription monocle!
04:56Free class!
04:59And...
05:00Twins!
05:01Meet Ludwig von Mises, economist, historian, and pigeon enthusiast from Season 2, Episode 8.
05:07Fly home, my pretties.
05:09It isn't going to work this time, Grandma.
05:11There's nothing anyone can say that will convince me that doubling the price of a board game is okay.
05:16I mean, $100?
05:18That seems steep, even to me.
05:20Side with them and I will drop you inside a central bank!
05:23Yeah!
05:23Okay, let's not get crazy!
05:26But seriously, if they can hike up their price from $50 to $100 in one week,
05:31what's to stop them from raising it to $200 next time?
05:35Nothing.
05:38Well, that was shorter than usual.
05:40Thanks again, Mr. Mises.
05:42Can we go home, Grandma?
05:43I'm late for crying in the back.
05:45Alani, then!
05:46He's not done!
05:46We just want to know why it's so wrong to make sure businesses keep their prices reasonable.
05:52Then in Rome!
05:59What you're talking about are price controls, as they have been tried throughout the history.
06:05Almost 2,000 years ago, the Roman Emperor Diocletian...
06:08That's my hamster's name!
06:12Ahem.
06:13Diocletian tried to stop inflation by forcing these vendors to lower their prices.
06:18But because the sellers couldn't charge more, they couldn't pay their suppliers enough.
06:22So, the suppliers left that market.
06:25All aboard!
06:28This led to violence.
06:31It was much worse than this.
06:33Well, that's just all we can show here, as an angel show.
06:36Just imagine he slapped his head off.
06:38But, as you can see, controlling prices actually ends up hurting the people they were meant to help.
06:44By getting slapped in the face!
06:47Oh, he's just here because the twins aren't as funny.
06:50Well, it was a lot worse than a slap.
06:53Shortages in goods caused all kinds of chaos.
06:55Also, side note, Diocletian tried to stamp out many religions.
07:00Just like my hamster!
07:03The thing is, governments don't need to try and control the market.
07:06Because prices have a way of sorting themselves out through supply and demand.
07:11I demand that you supply us with less words!
07:15Wait, does this kid only pipe up when things get boring?
07:18I mean, you weren't the one talking, so...
07:20Great.
07:21Now I'm self-conscious.
07:22What's supply and demand?
07:24I'm so excited you asked.
07:26So, as an example, let's say everyone suddenly loves a new game.
07:30A game that is so entertaining and made up just to be funny.
07:36Like...
07:37Sponge tag.
07:38No?
07:39A bacon toss?
07:42Mm-mm.
07:43Hmm.
07:43Or pickleball?
07:46Hmm.
07:47Yes, pickleball.
07:48So everyone runs to the store to give themselves a pickleball.
07:52That's called high demand.
07:53But there aren't enough pickleballs for everyone.
07:56So that's called low supply.
07:58So prices go up.
08:00But here's the cool part.
08:02Debatable!
08:02That higher price is a signal to pickleball factories to make more pickleballs.
08:07So more pickleballs are made and pretty soon the stores are overflowing.
08:12And very often, this is when prices go down.
08:15The supply has caught up with the demand.
08:17So if the government forced the store to keep their prices low, it would mess all of this up.
08:23Exactly.
08:24When a government controls the price, they cut the signals of supply and demand that allow prices to change naturally.
08:33This is true for pickleballs or appliances or even homes.
08:36If they set the price too low, no one wants to make them.
08:40Set it too high, no one wants to buy them.
08:42Either way, there are fewer pickleballs for everyone.
08:46But in an ideal free market, supply and demand are allowed to naturally balance each other out to the benefit
08:52of the consumer.
08:54My grandma plays pickleball.
08:56You look like her.
08:57Does this feel mean to anyone else?
09:00Check it up, missus.
09:01Economics isn't going to make itself more interesting.
09:04Fine.
09:05Set course for the USSR.
09:07That's your idea for something more interesting?
09:10Back when Mother Russia was the Soviet Union, they were really into things like cold and war.
09:16And they thought they could make a better society by controlling prices.
09:20Since the 1920s and for decades after, the Soviet Union took supply and demand and threw it out the window.
09:27In an attempt to create a fair society by controlling businesses and prices which broke the natural signals.
09:34They came up with complex formulas to figure out what those prices should be, but it never worked out.
09:40Is that the second law of thermodynamics?
09:42Businesses crumbled and the government's fair prices weren't high enough to keep those businesses afloat.
09:48And new businesses weren't created because there was no incentive.
09:53My hamster is in the business of being adorable.
09:57Also, he flips houses.
09:59I'm just going to ignore that boy.
10:01The way that Soviet Russia ignored the will of the people?
10:06See?
10:07I can be boring too.
10:09That's it.
10:09I'm done.
10:10Please, Ludwig, finish your thoughts.
10:14The Soviet government had broken the market's supply and demand signals so badly that they actually started using a Sears
10:21department store catalog from America to decide what the prices should be.
10:25What?
10:26Now that's funny!
10:28Finally.
10:29The point of all of this is when a market loses the natural signals that come from supply and demand,
10:35the only thing that will remain is the demand.
10:40The price controls hurt those.
10:42They were meant to help.
10:45This is really sad, but it still just seems like our toy store in the United States wouldn't need to
10:51completely double the price of a game.
10:54But what you're complaining about is the signal.
10:57That high price that tells the manufacturers to make more games.
11:01It's not just about greed.
11:03But sometimes it is.
11:05Your toy store has a limited supply, and kids like you create a lot of demand.
11:10All right!
11:11Ethan didn't learn anything, and neither did me!
11:14Whee!
11:15Whee!
11:16Whee!
11:17Whee!
11:18Grandma!
11:19Copernicus is staring!
11:21Relax!
11:21I'm teaching him to drive!
11:23It's a free market!
11:24That's not what that means, and you know it!
11:26You've never let us drive!
11:27You've never asked!
11:29I've asked so many times!
11:31If everyone would just calm down, I would now like to talk about subjective value theory.
11:37Egypt!
11:38Ah!
11:40Look at me!
11:41I'm the rich peanut man!
11:43Whoa!
11:46Whoa!
11:47GPS!
11:49Ah!
11:50Where did you get that monocle, Grandma?
11:53From a Russian magician!
11:55You know a Russian magician?
11:56This isn't time for backstories!
12:04Uh...
12:04Uh-huh...
12:20Ethan, this isn't so bad!
12:22Look at the ground!
12:23Oh, wow!
12:25This looks like a giant version of talking-
12:27A Sovietopoly!
12:29Where we break supply and demand, and we also break you!
12:36What?
12:37So many cool spaces!
12:39All of your money goes into this convenient box!
12:43Uh-oh!
12:44Somebody tried to protest!
12:46Everything's fine!
12:47Nothing to see here!
12:49Uh...
12:50Whee!
12:50Whee!
12:51Whee!
12:52Now, choose your pieces!
12:56Woo-hoo!
12:57A one-wheel tricycle!
12:59A denty hat!
13:01Ooh!
13:01I used to live in one of these!
13:03Oh, yeah!
13:12Ooh!
13:13Whee!
13:14Whee!
13:15I'm just going to watch!
13:16I grew up playing games with communists, and you never win!
13:24This could still turn out to be fun!
13:27One person will win, everyone else dies!
13:30What?!
13:31I guess it's just going to be one third fun!
13:35Grandma!
13:35Get us out of here!
13:37This game is going to kill us!
13:38Eh!
13:39Dying Bill's character!
13:40I want to see where this goes!
13:42Okay...
13:43We can do this!
13:45Wait!
13:45These only go up to three!
13:47Is for fairness!
13:48We don't want anyone getting too far ahead or too far behind!
13:52Okay...
14:01Okay...
14:02Huh?
14:07Ivan the Terrible...
14:08Place...
14:09Cost...
14:10One hundred dollars...
14:11Rent...
14:11Fifty dollars...
14:12Ooh!
14:12I'll buy it!
14:18Ha-ha!
14:19Woo!
14:22Ha-ha!
14:23Ha-ha!
14:24Ha-ha!
14:24Cop up the rent money, loser!
14:26Ha-ha!
14:27You remember what happens to the losers?
14:30Ha-ha!
14:30Yeah, sorry!
14:31Just got caught up in the game!
14:32Ha-ha!
14:32Me too!
14:33Ha-ha!
14:34I just bought a Kremlin!
14:35Ha-ha!
14:36Ha-ha!
14:36Ha-ha!
14:42Ha-ha!
14:43Ha-ha!
14:43Ha-ha!
14:44Ha-ha!
14:44Ha-ha!
14:45Ha-ha!
14:45Ha-ha!
14:46Ha-ha!
14:48Ha-ha!
14:56Ha-ha!
14:57Ha-ha!
15:04Ha-ha!
15:05Ha-ha!
15:05Ha-ha!
15:09Ha-ha!
15:11Ha-ha!
15:11Ha-ha!
15:12Ha-ha!
15:12Ha-ha!
15:13Ha-ha!
15:13Ha-ha!
15:14Ha-ha!
15:14Ha-ha!
15:15Ha-ha!
15:16Ha-ha!
15:16Ha-ha!
15:17Ha-ha!
15:17Ha-ha!
15:18Ha-ha!
15:20more property you are demanding property okay yes i know what you're getting at sure properties
15:28are in demand from me but i won't be able to buy them with this unfair rent price well everything
15:34does need to be fair there you go lower rent hey but now i don't make as much money and
15:41show me
15:42monopoly you don't play game game plays you uh oh but this isn't play this is just price controls
15:50don't think of it as control think of it as help is protection protection for who for the renter
15:59but what about me the owner of the property um sorry can't hear you uh bad reception
16:09sorry emily but i really needed that
16:18yes i'm gonna be rich
16:27join the kajib do anything you want
16:49hey a thousand dollars on repairs for every hotel what how
16:56okay at least i can make most of that money back if someone lands on my hotel
17:04my money is smiling comrade ethan not really my name now we are lowering your hotel rent
17:14i can only charge fifty dollars now kgb operative copernicus needs to sleep in your hotel but jess
17:22lost most of his money but you're the one who took from him perfect society
17:28there you go comrade this stinks i was really counting on that increased rent price so i could
17:36buy more properties is fair remember but i put so much money into this place plus i just had to
17:44pay
17:44a random maintenance fee maintenance not random maintenance important maintenance is a life lesson
17:50uh what when totally not rigged elections you now control prices wait i'm in control now how am i
18:04supposed to know how much things should cost i don't know anything about this place use government approved
18:09math but none of this math makes sense in earlier versions of game we tried normal math but couldn't
18:17come up with answers we liked math isn't about liking the result it's about hard numbers soviet union
18:23not like hard numbers it's more fun to make them up or get them from a catalog who told are
18:29you american
18:30spies no we're just educated even worse never mind now all your properties belong to the state little girl
18:38winch the rest of you die sorry rules are rules even if we change that randomly all the time girl
18:52is
18:52winner but it's not really winning if i lose my brother and my friend she's right nobody really wins
19:00nobody wins with this system these rental properties are what's in demand and when someone pays me rent
19:07i'm the one supplying them and i needed to increase rent not just to make money i actually really
19:12needed it to afford the costs that come with owning property so if i'm not allowed to make the money
19:18i
19:18need then i can't supply anyone with the products they need congratulations you learned another life
19:24lesson now prepare to learn death lesson
19:36oh finally something's happening
19:44stop i'm former ktb pretty sure those are common last words buddy
19:56i choose to split my winnings three ways
20:01wait no you you can't do that why not isn't that what you believe in absolute fairness
20:13okay fine yes you may divide price and live but you're still not allowed to be happy welcome to the
20:20soviet union
20:22emily you saved our lives man russians are crazy actually most russians are great it's the soviets
20:30you have to look out for
20:33i guess we'll just keep saving up our money it seems like phonopoly really is in demand hey mom
20:39can i pick up an extra shift sure honey what for to save our economy from price controls and a
20:45faceless soviet dictator what that game emily and i wanted doubled in price but i understand now that
20:53it was probably from lack of supply though at first i just wanted wonky to be forced to keep it
20:58at 50
20:59that's a good lesson to learn price controls don't help anyone they're just a temporary illusion of
21:05fairness mom how do you know how to set your prices here at the cafe we watch the daily signals
21:11of
21:11supply and demand we've increased the prices on donuts because they're so popular but lowered the
21:17price on bran muffins because the ingredients got cheaper i hate bran muffins and because of that
21:24yeah we know you guys aren't trying to be greedy with your customers but you still need to make money
21:28and it's always an ongoing experiment if we raise prices too high people would go to a different cafe
21:35if we put them too low we would lose money and eventually the business we're just trying our best
21:58ladies and gentlemen your champion hey congrats derrick mr walkie we'd like your last
22:09phanopoly please and don't worry now we know you're not just some greedy jerk who hates kids but
22:14just a business owner listening to the supply and demand of your games thank you you're welcome
22:21well actually you're in luck we were able to make more games thanks to our profits so now the price
22:26of phanopoly can be lowered a bit just 85 please sweet
22:35$85 is less than a hundred you say that's not much but i'm telling you know it's something worth
22:40the 15 dollars you could buy so much more you could buy the accessories at the store
22:46you can buy a wonky figure and you buy a wonky hat
23:01i'm so excited i'll bet this is going to be more fun than when we played with that disembodied russian
23:06voice wait what
23:12i don't care what you do with the dollars and cents just spin it at the store our shareholders cry
23:17if
23:18you don't spend the money i think i'm gonna die a wonky story a wonky please i live alone in
23:24a condo
23:25oh i am lonely my work is my life so buy a wonky store all right
23:33so
23:43so
23:45so
24:13We'll see you next time.
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