Friday, December 20, 2013

$20 for $28.00?

In the movie we recently watched an experiment in which a twenty dollar bill was auctioned off to someone for twenty eight dollars. This experiment concluded that people had this so called "animal spirit". This leads them to think emotionally, even pridefully rather than rationally. This gives the US economy a reason to follow the Keynesian theory of economics. Another example from the movie was the crash of the tulip stock. It doesn't matter what the product is, people will always want to win money. Unfortunately this is the "spirit" that leads to a crisis. This is why government supervision is necessary in the US economy.

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