So Nick one of the problems with you knowing so much about economics is that you

toss out these big words that we know really well.

Yes. But not everybody is as tuned in as we are.

Correct.

So what I thought we'd do as a little bonus is go through some of the terms we use a lot and try to explain

our $10 words and maybe seven or eight dollars.

Yeah, exactly.

I think it was Bertrand Russell who said if you want to discuss with me define your terms

okay so we need to define our damn terms let's start with one of the classics well actually one of the

of the neo classics, neo classical economics.

Yeah, and before we get to the actual definition,

let's just be clear that we use these words in a very particular way and there are people who would

contest our view of this of these terms. But screw them because this isn't their

pocket. Yeah exactly screw them., Neoclassical economics is basically

Orthodox economic theory dating more or less to now from the middle part of the last century.

And it is made up of a bunch of assumptions about human behavior

about the dynamics of human social systems it includes a theory of value, and identifies how the economy works

to create growth and prosperity.

And basically, Neoclassical Economics holds that human beings are rational self-maximizers,

that we are perfectly selfish and perfectly rational.

It holds that value equals price, that the price of something in a society represents its true value.

So if you pay me $7.25 an hour worth, worth. That is the value. And then when we pass a $15 minimum wage?

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