Crash Course Criticism
Your Best Crash Course in Economics
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Have you given up? I did enjoy reading your articles! 🙂
On episode 3 of crash course economics, Mr. Clifford states:
“The supply and demand model only applies to analyzing strawberries.
I’m just joking. It applies to all sort of stuff.”
In fact, this model applies only to “markets” with
-a single product
-a single producer
-a single consumer
-no changes of demand preferences
(I suggest Ms. Hill should eat a pound of
strawberries each day for two weeks, and then
ask her what she’d like for dessert)
This is known as the Sonnenschein–Mantel–Debreu theorem (first
show by W. M. Gorman). I know this is never mentioned in economy
textbooks, mainly because it renders the term “aggregate demand”
completely meaningless. ANY polinomial is a valid description of the
aggregated demand curve, and it has infinite many equilibria.
Don’t take my word on this, check the wikipedia or better:
Now, I don’t blame Ms. Hill or Mr. Clifford or your writers for taking
seriously their textbooks, but the result is that you’re helping
to spread the dangerous nonsense.
In the background of the video scenes in which Adrienne Hill appears, there is a bust of someone–a white bust. Is that bust of Marx? Thank you.
I’m glad you caught that Sue! I even wrote a separate post on that exact subject: http://www.crashcoursecriticism.com/2015/07/27/karl-marx-bust-on-the-crash-course-desk/
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