Coding Capital [Katharina Pistor]

The video discusses the role of law in creating wealth, emphasizing that legal systems are social resources used to code capital and create private wealth. Lawyers, as 'masters of the code,' help clients navigate legal frameworks to protect and grow their wealth, often leading to inequality. The video also highlights how legal loopholes are exploited for tax evasion and the dynamic nature of legal rules in economic contexts.

What is the primary reason people respect legal decisions, even when they are on the losing side?

• Fear of punishment

• Desire for social approval

• Lack of alternatives

• Belief in the authority and legitimacy of the law

How do lawyers create a comparative advantage for their clients?

• By reducing legal fees

• By lobbying for new laws

• By offering free legal advice

• By combining existing legal codes to protect wealth

What is a key skill that lawyers have developed to benefit their clients financially?

• Negotiating lower interest rates

• Reducing legal liabilities

• Avoiding tax claims

• Securing government grants

What is the effect of exempting capital coders from certain rules?

• It allows for the creation of more private wealth

• It increases government revenue

• It reduces wealth inequality

• It simplifies the legal system

Why do economists often misunderstand the role of legal rules in economic systems?

• They rely on outdated data

• They focus too much on market forces

• They have a simplified view of the world

• They ignore technological advancements