Wednesday, May 21, 2008

Man vs. Wild and the Division of Labor



The sun is scorching the Namibian desert, and a silhouette of a man appears along the red rock face. Cameras pan across towards the figure and suddenly a Puff Adder snake slithers from underneath a rock close to the man. The Puff Adder is one of the most dangerous snakes in all of Africa due to its immense size and the poisonous venom it secretes in its fangs. The man quickly grabs a hefty rock and throws it at the head of the snake ending its life. Almost unbelievably the hero grabs the head of the snake and saws it off with his knife and then takes a bite out of the body of the snake. Is this a scene from a movie? Is this man Indiana Jones? No.

Click on READ MORE for the extended post.


This is a scene from the Discovery Channel series Man vs. Wild, and our rugged hero is Bear Grylls, an ex-special forces officer from Britain. Is the above scene out of the ordinary? Nope, the show gets much more intense ( Bear drinks water from elephant dung, fishes with maggots in the Alps, and eats raw Zebra meat from a carcass in Africa). The premise of the show is that the survival expert must be dropped into a hostile environment and survive for up to 5 days without any given shelter, food, or water. Each episode finds Bear Grylls finding unique (and often sketchy) water and food sources, and creating his own shelter using his vast knowledge about survival tactics and indigenous plant life. Whether it be desert, plains, tundra, jungle, or even a deserted island, Grylls finds a way to squeak by in life.

By now you're probably wondering, what does this have to do with economics. Those of you that know me well know that I often exclaim "That's Capitalism!" when I see amazing things like Porsche Carreras or have great opportunities. After seeing the recent episode I immediately thought to myself, "Hmm isn't capitalism great to let me sit lazily watching this crazy man survive in high definition on my plasma flat-screen!". Furthermore, capitalism is allowing this crazy man to provide me utility by watching him surviving in the wilderness, and presumably he is very well-paid for doing things many people would never want to do. As our new VP Liya would say, this is "non-unique". True enough, this really is a bland point. And then it hit me, the real amazing part is not that capitalism gives the opportunity for Bear Grylls to know how to survive but the really amazing thing is that most of us don't NEED to know how to survive like Bear Grylls to continue living.

We can chalk this fact up to the division of labor. Instead of two people both trying to do everything for themselves individually, one provides food, the other provides shelter. Through their specialization and free trade they both gain free time, or at least more of the goods they exchange. Adam Smith wrote about this in The Wealth of Nations. It is this division of labor that lifted humanity out of nomadic tribes, and the extent of this division of labor is what makes up most of the difference between richer and poorer nations. The concept is fairly simple, maybe even too simple, and we've often heard it before in economics, anthropology, and even history classes. I guess that too often we overlook the power of this concept because it is so simple.

I don't want to understate the immense awesomeness of the division of labor. For hundreds of thousands of years humanity barely made survival in day-to-day life. Today we can devote less than a few minutes to thinking where to get our food and water from, and most of us can relax for at least half of our day without needing to do much. This seems obvious and normal to us, but watching Man vs. Wild for an hour can really show the work involved with surviving in the natural world all by oneself. How much time do you spend each day finding a clean water source or catching game to eat for dinner? The division of labor saves us from all of the hardship involved with that sort of lifestyle. Anything that allows for more division of labor (ie. new technology allowing workers to be freed up for other processes) creates more wealth, more choices, and a greater betterment for mankind. What a beautiful set-up that allows us to avoid being forced to spend all of our time barely surviving and lets us live in relative luxury. It is only in the capitalist system of free-markets that provides full room for the division of labor to grow to the fullest extent.

The message to take from all of this is that it can be easy to forget the simple but important lessons of economics that shape our everyday lives. Think how ridiculous it is when someone argues against dividing labor further, as the division of labor always grows wealth. Next time someone says that a new un-manned machine process will cut jobs or will take away from the human element of a job, just remind them that we could possibly have full employment if we stopped all cooperation. Without the division of labor we could all be fully employed in providing for our own survival without cooperation. Fortunately most would not chose such a scenario, as anyone who has seen Man vs. Wild would tell you that it is not the most pleasant way of living. At least it makes good television to watch while enjoying the free time that the division of labor allows!

Fall Schedule and Opening Address

Hello GMU Econ Society members and readers of our blog,

I know many of you have been waiting for our Fall 2008 schedule of events, and I'd like to throw out a tentative set of events that the other officers and I have been coming up with.

First and foremost, there will be a beginning of the semester Econ Social, in which we will try to get new Econ majors, minors, and anyone interested to get together with those involved in the Econ department. This has been a yearly tradition and each year it only gets better. I'm sure it will be a great networking opportunity as well as a chance to say 'Hello' to some of your professors outside of class. Tentatively, we would like to have the event on a Wednesday afternoon in September at 4:30pm.

The rest of our schedule is much more foggy, but don't worry we are coming up with some great ideas that I'd like to share with you all. There will definitely be some new book events, as professors are having books published this fall. Currently we are working on getting a professor to speak at such an event (Hint Hint he writes for Cafe Hayek), but we can't say much more due to unknowns. On a much more ambitious (although no more unrealistic), we plan to have the first annual Freedom Week at Mason (which much credit goes to Ian Dunois for coming up with the idea).

Freedom Week will be in late October hopefully, and will have week long events spotlighting topics on liberty. Remember that this will be right before the Presidential Election, so we have the opportunity to do fun things like giving out those political map quizzes. Hopefully we will be able to get a few GMU professors to speak on liberty, and perhaps we can have an outdoor tent set up with support from IHS, Mercatus, FEE, Cato, the Libertarian Party, or even the Mises Institute. Personally, I would like to add a Economics related pumpkin carving contest with prizes (maybe someone can do a supply and demand curve one or Hayek's profile.)

This is all we can say for now, as we are still hashing out the details. Besides events there are some things that I would like to accomplish soon that I feel like sharing with the Econ Society. The first is that I would like to rework or update the graphics of the website and maybe this blog. This is depending on the availability and work of Michael Ostrowski, our Treasurer, whose skills with anything visual computer related are amazing. Another thing I would like to do is increase the membership and spread the word about the GMU Econ Society. I went nearly 3 years at Mason loving economics but missing out because I didn't know the Econ Society existed. I have talked to Michael about going to some of the orientation weeks to talk about the GMU Econ Society and Economics at Mason in general. In the first few weeks of school I would also like to print fliers and have them given out to students in all of the Economics classes, as well as questionnaires to classes to ask the Econ major students what kind of speakers and events they would like to have. I feel getting feedback is the most important thing here, because that's what the Society exists for, for serving the wants of the Mason Econ students.

The last thing I would like to end on is to ask you all, what do you want for the GMU Econ Society this upcoming year? Any ideas for events, speakers, anything?

I hope that I answered some of your questions that you may have had, but if you have anymore questions. please feel free to either leave a comment or email me at gmueconsociety@gmail.com. I hope to serve you all well as President, so if there is anything I can do for you please ask. I look forward to hearing from you all.

-Kevin R. Hilferty


Monday, May 19, 2008

What Marginal Revolution can do for you...

On Sunday, Tyler Cowen from the Marginal Revolution blog had linked to the Econ Society blog. That was it; there was no small description of the blog for any reason to why you should click the link. In the comments, you do not find anything referring to Econ Society giving the view that perhaps most were interested in the other links. Then we looked at the web trends.
From an average of 20 visits and 30 page views per day we sparked by one link from Marginal Revolution to almost 615 visits and 800 page views! Some spillovers are still occurring today. Thanks Tyler and Marginal Revolution.

Thursday, May 15, 2008

“Who Cares About Anarchy When You Can Have Limited Government?”

From the FREE FOR ALL blog courtesy of Center for Liberty and Community:

A Sunday Night Social Debate
* May 18, 2008 * 4:00-5:30pm at the Galaxy Hut

Presented by the Center for Liberty and Community
CLICK READ MORE for the bios of debaters and event info

Jan Helfeld will argue in favor of limited government as the optimal system for achieving human happiness. Helfeld is a lawyer and businessman turned TV producer. In the last few years he has traveled the world as a lecturer and debater at numerous universities. He has produced documentaries such as “To Invade or Not Invade” about the Iraq War and other philosophical explorations such as “The Proper Function of Government”, “The Socratic Interviewing Technique”, and “The Media Against Business.” He also has hosted/produced several TV shows in Puerto Rico and Washington, DC. See a video clip of Jan’s interview with Senator Harry Reid at: http://www.freeliberal.com/blog/archives/003277.php

And in favor of anarchy…

Michael Owen is a certified gun-toting, swing-dancing anarcho-capitalist. He received his Ph.D. in 2003 from North Carolina State University in theoretical astrophysics. He is currently employed as a computational fluid dynamics engineering consultant for a small firm in Maryland. He is the husband of Congressman Ron Paul's Communications Director, Rachel Mills.

The debate will be moderated by Kevin Rollins, publisher of the The Free Liberal, the Center for Liberty and Community’s web magazine.

This debate is free and open to the public. RSVPs (to publisher[at]freeliberal.com) are appreciated but not required. Following the debate we will commence our usual social hour.

Galaxy Hut is located on Wilson Blvd between Danville and Edgewood Sts in Arlington, Virginia (Directly across from the Whole Foods Supermarket and a few blocks from the Clarendon Metro Stop on the Orange Line. http://www.galaxyhut.com * 2711 Wilson Blvd, Arlington, VA 22201.

Thursday, May 8, 2008

BIRTH OF FREEDOM premier in D.C.

The Acton Institute, the brilliant institute that brought us the CALL OF THE ENTREPRENEUR, are premiering their new film THE BIRTH OF FREEDOM in Washington D.C. on Thursday June 19 at 7 p.m.
It will be located at National Society, Daughters of the American Revolution
1776 D Street NW btw 17th and 18th, C and D Streets NW.

7 p.m. - Displaying the movie
8 p.m. - Question and Answer session with an experts panel
8:30 p.m. - Reception with hors d'oevres and a cash bar

The tickets are complimentary.

Tuesday, May 6, 2008

Philosophy and Economics at Mason?

We have a new Philosophy professor in the Philosophy department at Mason. What's the big deal? He has a masters in Economics and a bachelors in Physics.
Welcome to Derek Boyd to Mason.
The new class, Phil 357: Philosophy of Social Sciences, will discuss the foundations of Economics. For all those interested, it may be a great elective.