Podcast Summary
Challenges in Influencer World, Economics: Individuals and fields of study face unique challenges, requiring new approaches. Economics explores alternatives to efficient market theory, studies human behavior, and applies chaos theory, while influencers deal with online hate and resistance.
Both individuals, like influencer Lily Chapman, and fields of study, such as economics, can face challenges and require new approaches. For Lily, it was dealing with online hate and fighting back through resistance. For economics, it's the ongoing exploration of alternatives to the efficient market theory and understanding the complexities of human behavior in the economy. Doan Farmer, a physicist turned economist, is one example of someone applying new perspectives to economics through chaos theory. The economy, like a complex system, can be studied using tools from various disciplines, leading to a more nuanced understanding of its workings. Additionally, the concept of money, which may seem tangible, is actually abstract and intangible, making the study of economics even more intriguing.
Chaos in systems: Despite starting in an orderly fashion, complex systems like physics, economics, and meteorology can exhibit unpredictable and chaotic behavior over time, making long-term predictions challenging
The world, including systems as seemingly predictable as physics and economics, can exhibit unpredictable and chaotic behavior. This was demonstrated through the discussion of the fixed-point attractor and the strange attractor, which despite starting in an orderly fashion, eventually became harder to predict over time. This concept, known as chaos, is not to be confused with chaos in the negative sense. Instead, it refers to a pattern that at first seems predictable but over time, changes and becomes harder to predict. For instance, in celestial mechanics, planets follow simple rules, but tiny differences in measurements lead to dramatically different future outcomes. Similarly, in meteorology, with the multitude of variables involved, even the best forecasts only extend two weeks into the future due to chaos. Economist Doen is applying the same tools used to understand chaos in physics and meteorology to economics, in an attempt to improve predictions about economic trends such as recessions and inflation.
Internal economic factors: Understanding internal factors like collective bad decision-making and interconnected systems can help explain economic downturns, but predicting them requires a giant simulation of the world.
The economy can be influenced by both external shocks and internal factors. Mainstream economic models often focus on external shocks, like the COVID-19 pandemic, as the primary cause of economic change. However, there is another type of economic change, called endogenous oscillation, which is caused by internal factors, such as collective bad decision-making and interconnected systems within the economy. The 2008 financial crisis is an example of this type of internal economic change. Dohan argues that this internal, chaotic motion is at the heart of many economic business cycles. If we better understood how these forces influenced the economy, we could potentially use the tools of chaos to forecast economic downturns. But to do that, a giant simulation of the whole world would be required. As parents, teaching kids about money early can help set them up for financial success. Greenlight is a debit card and money app made for families that can make managing money easier and help kids learn good financial habits.
Technology and Simplification: Technology enables us to turn text into audio, provides comfortable socks, and allows economists to study complex systems through advanced simulations
Technology is making it easier for us to consume information and simplify our daily lives. The listening app allows us to turn text into audio, making it easier for those who prefer listening over reading. Meanwhile, Bombas socks offer comfort and convenience, while also contributing to charity. Economists like Dylan Farmer are using advanced computer simulations to study the economy and its chaotic nature, which was previously impossible due to technological limitations. In essence, technology is transforming how we learn, consume, and live. Try out the listening app and Bombas socks for yourself with their respective special offers.
Economic simulations: Economic simulations can provide more accurate predictions by allowing economic phenomena to emerge from the bottom up, but ensuring their accuracy and understanding their complexity is a challenge.
Understanding the complexity of the economy requires careful consideration and decision-making about what to include in economic models. Simulations, which let economic phenomena emerge from the bottom up, can provide more accurate predictions, especially when dealing with complex and changing situations like climate change. However, these models can be difficult to understand as they become more complex, and ensuring they accurately represent the economy is a significant challenge. Ultimately, the goal is to create simulations that recreate the chaotic heart of the economy, allowing us to potentially steer it by understanding the tiny decisions that lead to big changes. This approach can help us distinguish between the things we can control and the things beyond our control, providing valuable insights and wisdom.
Platypus Economics: Platypuses, a beaked animal, may have an unexplored role in economic productivity. The importance of collaboration and teamwork in uncovering economic mysteries was also emphasized in the latest episode of 'Unexplainable Economy' podcast.
The "Unexplainable Economy" series, produced by Meredith Houdna and her team, explores unusual economic phenomena. In the latest episode, they delved into the economics of beaked animals, specifically platypuses, and their potential role in economic productivity. The team, which includes Bird for research, Marianne McKeon for editing, Jorge Just, Christian Aiella, Noam Hasenfeld, Melissa Hirsch, and Mandy Nguyen for various production roles, discussed the importance of platypuses and their potential impact on the economy. The series also highlighted the importance of collaboration and teamwork in uncovering economic mysteries. To learn more, listen to the full series, sign up for Vox's membership program, or leave a positive review. The "Unexplainable" podcast is part of the Vox Media Podcast Network and will return next week with a new episode.