John Cassidy - The Market/State Pendulum

The video explores the evolution of economic thought from the late 20th century, highlighting the shift towards less state intervention and the reliance on the private sector. It discusses the impact of the recession and financial collapse, questioning the infallibility of the financial sector. The rise of China and India is examined as a hybrid model of capitalism and state direction. Market failures, such as climate change and healthcare, are identified as challenges to free market principles. The video concludes with a discussion on the shifting economic ideologies and the increased flexibility in economic thought.

What was the dominant economic belief towards the end of the 20th century?

• Balanced state and private sector roles

• Complete state control

• Minimal state intervention

• Increased state intervention

What event challenged the belief in the infallibility of financial markets?

• The rise of China

• The financial collapse

• The industrial revolution

• The fall of communism

How did China and India approach their economic development?

• By following a strict communist model

• By blending free market policies with state direction

• By adopting a purely capitalist model

• By abolishing all communist firms

What is an example of a market failure discussed in the video?

• Globalization

• Increased competition

• Technological advancement

• Climate change

What is the current trend in economic thought according to the video?

• A return to strict communism

• A shift towards more state intervention

• A return to post-war mixed economy consensus

• A move towards complete free market