INTL DV 1 Lecture Notes - Lecture 9: Hard Power, Nobel Peace Prize, Microfinance
14 Nov 2020
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Consumer choice: individuals choose what to consume, and this choice leads to more competition and better products and services. Con: consumer choice is an illusion (algorithms decide what we buy); access to healthcare, medication. Efficiency of economics: goods and services produced based on demand create incentives to cut costs and avoid waste. Doesn"t work in our healthcare system: hospitals try to cut staff to cut cost. Environmental inefficiency and waste: cuts costs but is very inefficient. Economic growth and expansion: this increases the gross national product and leads to improved living standards. Rise in gdp doesn"t mean that standard of living increase for all (lower class) Monopoly of power: firms with monopoly power can abuse their position by charging higher prices. Ex: amazon: can"t just do whatever they want. Recession and unemployment: an economy based on market of consumers and producers is invariably going to experience both growth and decline.
