I studied economics at Uni, and I kid you not, they had us learn about the Laffer curve as if it were empirical reality. Meanwhile, Laffer first came up with it by scribbling it on a napkin to argue against tax increases during a meeting with government officials, and the idea has never been borne out by the evidence. All this to say: our understanding of economics is a lot less science-based than people like to think, and it's high time we rethink the way we organize our economies across the world.

This is so spot on! The financial sector does provide value through making investment liquid, which absolutely increases the amount of investment that the private sector is willing to risk on future production. BUT creating the conditions for liquid investments should never be confused with creating actual output. The financial sector should be viewed as the lubrication system that allows the economic engine to function more efficiently, but to count “gains” in that sector in GDP is to double count the actual output created by the investment it facilitated, AND (maybe worse) overly reward the shifting of production profits away from workers.

That was an epic takedown of how modern economics has been used to serve the interests of the sterile leisure class. Vague doesn't just mean price. So good.

My MBA professor told me to watch a TED talk about value creation. He 1000% didn't mean this one but thank everything I tripped over it. Perfectly elocutes so many things I haven't had words for. Thanks!

Wow seriously taken by surprise here. What a fantastic presentation of a much needed idea! Truly impressed by her clarity and preparation. Her point is well explained and benefits from forgoing personal anecdotes and opinions. Historical context really grounds the idea and keeps the presentation from slipping into the hypothetical or idealistic. Conclusions and applications are left for the audience to reflect on. I often wonder how we as a society could possibly change the global economic direction in order to give more value to practices that have social capital, and incentivize global well being rather than just profit. Fascinating, succinct and thought provoking. Bravo. Thank you.

I really liked the way she explained value creation and price. Thank you for posting such nice content. Regards, Sanket.

Over the long term, value was destroyed, not created, when the taxpayers were forced to bail out Goldman Sachs.

This 18 minutes have more knowledge than 18 books on economy Economics without people is soul less. " Value and prices are not the same thing, they never will"

I find these talks encouraging and epic.

One of the best TED Talks I have listened to in a long time.

Its one of my reason to still watch ted x, thanks for everything

Incredible talk by Mariana.

Should I be shocked?... Cuz I ain't. This talk should have come 20 years ago.

Beautifully said

"We have a moral imperative to charge what the market will bare' says it all about the soulless corporate creeps we have slithering around making money at the expense of everyone and everything else.

It's hilarious hearing people who push paper tell other people that they are more productive. I hear it every day

Interesting that this talk was done on the cusp of a pandemic that forced us all to reconsider the labor value of essential workers such as food producers, health care workers, teachers, etc.

Great presentation, thank you.

How can you speak with such speed and depth and still without losing your breadth and stop even for a second? Thumbs up.

“A theory of price and exchange which reveals value” is pretty much exactly how it works for Smith and Marx.

Great talk

incredible!!👏👏

Hi, thank you for this video! That stimulates a discussion. Something I see different. * Value is not a thing and cannot be produced Economics is about economic value and this is related to exchange. A production-related value, as it should arise according to the classical interpretation of the Labour theory of value, would not have a high value. Because if everything that is produced is to have value, including all the things that cannot be sold, then much “of value” would have no meaning for society. Value cannot be produced at all. * Value is a social relationship and not a singularity Such is formed between people and only works between people. Only possible reference points for value relationships are produced. In other words, value is related to things, activities (concerts), ideas (literature, patents), but only if the properties of the things, ideas, etc. produced seem good enough for an exchange. * Value has an objective component and subjective ones Value is related to the work results and usually has to include the expenses. As a social relationship, value must have an objective dimension - it must go beyond the ideal ideas of an individual. And it must have subjective elements because it is linked to people. The objective part of the value is the joint value of the supplier and the buyer. This is reflected in the sales price and often deviates from the expected value, which is expressed by the offer price. The objective part of value becomes effective between the exchange partners on the social level - in the sales contract, when paying taxes, etc. The subjective shares of the value are the subjective reflections of the objective part of value in the exchange partners. This is mostly developed from initially different subjective values related to the exchange goods. * Value and expenses Usually, with the help of the value has to been replaced the expenses that led to the production / acquisition of the (initially only potential) commodities and an surplus value that appears to be sufficient by the provider must usually be paid for. This is the only way to continue and expand production, just like artistic activities, archaeological research, etc.

Muito bom! Vim assistir esse TED depois de assistir ao vídeo do canal: Meteoro Brasil

Thank You

I think you are exceptional

US companies are way above others in terms of paying themselves by buying stocks, instead of investing in RnD, human capital and production.

wow!!!!! mind blowing!

Excelente!!!

So excellent. Value lies in labor, according to Adam Smith. Studied this from his book so, so much

She should be the economist of the US.

This is my biggest frustration about economics. They have absolutely no idea what value, wealth and money represent. All of these things in one way or another represent work, the work put into something (value) the potential work that can be done with something (wealth) or the ability to direct work (money). Ask a physicist what work is and they will tell you work is the result you get when you use energy to make something change (something you absolutely must do to provide any service or build any product) and energy is governed by the laws of thermodynamics. Thus value, wealth and money are representations of energy. The problem is this. The laws of thermodynamics means that every time energy is used a vast majority degrades, most energy is lost as heat (the ability to get more work out of the energy put in is efficiency or productivity as an economist would say) Only a small amount is embodied in the product (or person providing a service) such that more useful energy can be further extracted. The problem is the energy degrades but money does not. So you end up with mountains of money accumulating in the hands of a few who are looking for productive ways to direct energy. But out economies have been stagnating for years because the mass of people that want money and can direct it to producing things of value (i.e. need work or energy embodied in them) don't have the money. So the money just sloshes around in the FIRE sector not actually directing energy at all but instead accumulating. Watch out if that accumulated money ever actually makes it out into the productive economy where it is used to direct energy because you will see massive hyperinflation as the money to available energy (think KJs) ratio will be completely screwed. If we are to ever get the world economy back on track we need to eliminate the money sloshing around in the FIRE sector and realign value, wealth and money with energy and build in a mechanism that makes money degrade in the same way energy does every time it is used. Economics sufferes as a science because it thinks it is divorced from the laws of nature. And the laws of thermodynamics govern everything in the universe, the human economic system is no exception. You cannot blame the classical economists as the laws of thermodynamics were only just being discovered in their time. Modern economists have no excuse.

i would hear this woman talking about economy even for a day

This was excellent!!

I would like to put a sick beat under this talk - would be a dope doubletime rap track

eye opening

This lady needs to run for president

Am wordless Thanks for the info

Is this just me, or you guys also think it was a little heavy as a public lecture? By the way, she is a great lecturer.

Andrew Yang talked about this a while ago

In reference to the comments made about pharmaceuticals and prices at @14:40. The same can be said to when a medication/"product" is no longer profitable and then is abruptly discontinued and the population is left without said medication/"product". This is currently taking place in several countries. This to me clearly highlights the end of the tall tale that unregulated free markets will meet depends. There must be governmental requirements that meet the needs of the people before the profits of corporations.

Specific public talk! very good by the way! Mazzucato has very beautiful ideas, seriously, but thinking about value in this time is a dead end. is not going anywhere. Some way this idea can be explained by mainstream thinking! In fact, the Nobel prize in economics this year explain this thing with a very "simple" maintrain framework!. Economics is about people, non-about theories, do not forget that!. ;)

the message , i think, is to re-think our current defitions...

Very deep

Our money comes from the future.

"Man values his gifts precisely in the degree that they are appreciated by others." Theory aside, value is set by its worth to others.

if this value is not valued by people as she says why do people pay for it? why do we want to stop people from freely exchanging goods to “save” them? even if they themselves are the ones choosing to do it? high price means high demand - how is anyone to judge otherwise?

Someone Invest In This Lady Being The Leader Of USA 🇺🇸

Great arguments delivered way too frenetically for me to comfortably engage with

I'm really feeling the look for some reason

VALUE IS NOT MEASURED BY PRICE...YET PRICE GIVES THE PERCEIVED VALUE!!!

Value and prices are not the same, however, as economists, we tend to use prices as a proxy to value because other variables are tougher to measure. As we move towards a digital world, I really wonder how the value will be redefined. If we stop to think for a moment, maybe we can get an answer. I know Erik Brynjolfsson is working on redefining GDP with the inclusion of digital value. That will change the future as we know it!

So true what us value vs price as a Measure of value which mixes utility with creative value meaning Adding To The World.

From what the Dr is saying, it seems that there are CEOs out their whose contracts link their pay to the share price of the companies they run. So what do they do, instead of investing the profits they simply buy back the companies shares and collect a big bonus. They are risking the long term health of a company for short term gain.

I would love to get Marianas thoughts on what AI tech means for the economy, and how it could be squandered by the sterile class.

If only Thorstein Veblen was alive these days,...Also Mazzucato is pure gold

What's her accent? It's really interesting. It sounds Irish but also American?

So many disagreements in the comments its crazy but i like the connection she made about physics im going to study some physics now 👋

Value is not just price.

a bit to fast ...i catch only part of it ..but that's okay i will watch again

The physiocrats and the classical economists like Ricardo were the ones who were the most prominent advocate of value aggregation. The French liberal school made a considerable dent in this shaky edifice (Cantillon, among others). But it wasn't until the marginal revolution swept in that the edifice was built anew on firmer ground. Subjectivism was an attempt at rescuing, not gutting, economics (though short-lived, as shows the current state of the discipline). She makes a fairy tale of economic history predigested and fit for consumption by gullible crowds. It's almost as if she wants to prove Smith's point about professors.

Great Video

How our financial systems work is comparative to how a physical therapist works on its clients. The tending is for maintence and repairs. They do accounting for losses that occur and little to invest in operations and innovation that put an end to loss in certain sectors that uphold the fabric of devloped international relations which keep us safe from one guy with a button to big booms. Anyway, my venture in business in various ways needs a reprise and not just a rest. Alot of unneccessary factors exist and they so clearly are being used in this way to shroud itself whilst they rake in the income generated from atrocious acts.

Why are all the comments like 3 days ago.

curing patients becomes unprofitable sometimes which is why we need a common good called government who should put tax money into curing people and to create ways to reduce the labour involved in the process of curing.

Shes brilliant but I wish she spoke slower.

I will vote for any president who speaks like this.

I mostly agree in a critique to crony capitalism but I have a doubt: did Goldman pay back Obama or were the 10 BD lost?

Technology Entertainment Design and This

Very interesting to see her advising the German government under Robert Habeck now 🧐🤩

Ökonomie meets Philosophie (postmoderer Dekonstruktovismus 👏🏿)👌

Mazzucato tell there are a private problem and She affirms what the solution is the State; but the state has other problems most big than private, the corruption. Only money changes the hands from private groups to public burocracy groups

👏👏👏👏

🦋I look at obstacles as a way to throw you off. There is always a way to obliterate them

So when adam smith comes up with a list of jobs he thinks are productive, its objective, but if prices are determined by the choices of thousands of People, value determination its subjective 👀

we need to rethink? who's we?

The looting and the bleatings shall continue until morale improves.

Value Creation? Federal Reserve dump trillions in to the bank and hedge fund from out of thin air. Value Creation is a lie.

"Value and prices are not the same things, they never will". 'Giá trị' và 'Trị giá' là ko giống nhau và sẽ ko bao giờ giống nhau.

......The economic value depends on demand and supply. In modern economy, they create needs (through t.v, advertising, internet,movies, etch), in order to control demand and lead people's behavior to the way they want.

Money is a social lubricant without value when we lose faith in it… it’s why we don’t buy houses with tulip bulbs anymore, or groceries with pukka shells. Silo’d away in coffers so deep they cannot be spent only makes money more dear for those actually using it. Our profit-centric just-in-time inventory society is fragile, and brittle, and lacks resilience.

The short reverb is a little annoying. Doesn't fit to the rest of the production, and the talk. ;-)

*Value is NOT just price*

Love her outfit lol

Give me that Human Capitalism please.

Before you jump in on 'values', be aware the total US and global debt is 425% and 411% of GDP, thus all 'values' are highly inflated. As debt privatized, 85% of debt is spent on purchasing assets like shares and stocks, redistributed to the top 10%, in the US owners of 93% of all stocks, 79% or $77 trillion of all wealth. Again: if you call this capital values, labor is consequently valued much less! US average hourly wage 2018 was $22.70. Also recall, 162 million Americans work, but their real (!) income and wealth hardly increased since 1970! In fact, every one in two Dollars in the US economy is redistributed to the top 10% thanks to Financialization. 🤓

Here in Brazil we are tied to a mule called Paulo Guedes

Wow she is so based

7:53 The measure of value is entirely subjective in nature - Carl Menger (1871), the time when Marx fooled the world

Great talk! Humanity, not just economists, needs to think about 'what is value'! "Value is not just price", like she says.

Uhg yaaaaas mommy talk economics to me moooooore

Failure itself is of value. Without failure, success can never happen, and success is the ultimate form of value

the economist the world desperately needs to listen to 🙏 i watched this talk once before, but i probably didn't understand it well then, because i didn't take note of how significant the material of the talk is

Here shows one veiw but more than five comments 🤔🤔🤔

The economy is a sham!

When you are a professional academic economist you have the purchasing power to buy larger t-shirts, unless you have inflation.

What are stratospheric aerosol injections, and who creates them? How about a topic that's killing the biosphere, us included...

More farmers less stock traders !!

#yanggang?

No one can predict value as we cant predict what is beneficial in the near and long term. Some terrible things turn out to be catalysts of change and some nice things turn out to breed complacency