The invisible hand or the efficiency of free markets in economics explains why it would be insanely expensive to build or make simple things on your own. Things like tea, chicken sandwich and more. Let’s understand how the world works in brilliant cooperation to bring objects as simple as a pencil and as complex as a mobile phone. Understand the economics behind the free market efficiency in this FutureIQ episode.

Hope you enjoyed FutureIQ by Navin Kabra and Shrikant Joshi. Do hit us up on Twitter:
@ngkabra http://twitter.com/ngkabra
@shrikant https://twitter.com/shrikant

Listen it on the podcast provider of your choice: https://tapthe.link/FutureIQRSS
Watch other episodes of The FutureIQ podcast: https://www.youtube.com/playlist?list=PLAppTB0r5_TaYueZ0adD42Wiw5X-wTE4v

Books referred in this episode:
Thanks a thousand: https://tapthe.link/ThanksAThousandBook

More videos for you:
The illusion of explanatory depth: https://youtu.be/_ak0k7GNCjM
Dunning-Kruger effect: https://youtu.be/GtmcY3t5hB4

Chapters:
00:00 Introduction
01:10 Making a pencil
05:35 The eraser
07:05 Specialization
08:55 How does this happen?
10:57 Making a chicken sandwich
11:54 Making a toast
13:55 Thanking everyone
16:02 Brilliant design of the lid
17:07 Why it matters?

Sources:
I, Pencil: https://www.econlib.org/library/Essays/rdPncl.html
XKCD Lamp: https://xkcd.com/1741/
Coffee supply chain visualisation: https://www.visualcapitalist.com/from-bean-to-brew-the-coffee-supply-chain/
Milton Friedman on I, pencil: https://www.youtube.com/watch?v=67tHtpac5ws
Six months to make a Chicken sandwich: https://www.theverge.com/2015/9/17/9344597/man-spent-six-months-1500-making-sandwich-from-scratch
TED Talk: how I built a toaster from scratch: https://www.ted.com/talks/thomas_thwaites_how_i_built_a_toaster_from_scratch?subtitle=en
1000 thank yous for a coffee: https://nextbigideaclub.com/magazine/one-cup-coffee-inspired-journey-thousand-thank-yous/19485/

#futureiq #economics #freemarket

source