Global populism is approaching levels last seen in the 1930s and there is pressure for governments to change incentives. Fredrick Hayek, a Nobel prize-winning laureate, has inspired the leaders such as Margaret Thatcher and Ronald Reagan in addition to other liberal economic thinkers.
In this 3 minute video, economic booms and busts are explained in a manner that a 10-year-old can easily understand. The core insight of Hayek is that government interference even if done with the best of intentions changes people’s behavior by changing incentives and changing signals in the market. These changes result in investments that are not sustainable and which ultimately lead to recessions and busts.