Lecture 2

1. Lecture 2
The Economic History of the United States

2. Practice Quiz
1. Are resources finite? Why
2. What is economics?
3. How many songs in a piano? (trick question)

5. Learning English
Access to the world’s
knowledge

10. Prices contain
more
information than
quantities

14. Culture
Human Beings
Ideas
Physical Human Intellectual Financial
Inventions
Entrepreneurs Free Markets
Innovations
The Capitals of Innovation

15. What is wealth?
Any thing we value

16. What is Economics?
The study of how
human beings create
value for one another

17. What is Capital?
Any thing we can use
to create value

18. Culture
Human Beings
The Capitals of Innovation

20. Cultural Capital?
How people treat
each other

21. Cultural Capital is
determined by the
worldview of leaders

23. Property Rights
Rule of Law

25. Culture
Human Beings
Ideas
The Capitals of Innovation

26. Idea
A thought about how to
potentially create new
value

27. Culture
Human Beings
Ideas
The Capitals of Innovation
Physical

28. atoms and energy
natural resources
time
buildings
equipment
things than make things
Physical Capital

29. Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human

30. trust
health
skills
knowledge
personality
relationships
Human Capital

31. Integrity
Competence
Trust

32. I look for three things in
hiring people.
The first is personal
integrity, the second is
intelligence, and the third
is a high energy level.
But if you don’t have the
first, the other two will
kill you

33. Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual

34. knowledge
technology
methods
patents
Intellectual Capital

35. over
10,000,000
today

36. Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual Financial

37. Money put at risk
over time
Financial Capital

39. money put at risk over time
money is time
savers and borrowers
(1+r)n
insurance
limited liability corporations
double entry accounting
Financial Capital

40. Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual Financial
Inventions

41. Proof of an Idea
Thought to reality
Invention

42. Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual Financial
Inventions
Entrepreneurs

43. Risk Takers
Value
Inventions to Innovations
Freedom to Discover
Learning
Failure
Entrepreneurs

44. Inventor Entrepreneur

45. Thomas Edison
Inventor and
Entrepreneur
Very Rare

46. Culture
Human Beings
Ideas
The Capitals of Innovation
Physical Human Intellectual Financial
Inventions
Entrepreneurs Free Markets