There are a number of important economic concepts illuminated by the excellent My Little Pony: Friendship is Magic episode “The Super Speedy Cider Squeezy 6000″ (season 2, episode 15). I want to talk about them here, but warning, there are some pretty heavy spoilers within. First off, here’s an episode summary from wikipedia(NB, the Apples [...]

Recently, Krugman wrote that if you think the iPhone 5 will boost the econonmy, then you believe in the Broken Window theory. The Broken Window Theory, more accurately described as the Broken Window Fallacy, is the belief that destruction can boost the economy, as people, companies, and governments spend to replace them. Krugman is a [...]

A question to you of a chicken and egg sort. If you have a group of people in a flat empty world with nothing in their possession, how do you get them to have things? Would you: A) Give everyone pieces of paper with faces on them, call it money, and tell them to wait [...]