The internship video
And what Pokemon cards teach us about economics
Yes! The internship video is out. I’ll explain it below, but before I discuss that I have to tell you about this experience I had with my kids over the weekend that taught me about economics. And it’s not just a simple supply/demand story. The lesson relates to the fundamentals of economic growth. And it starts with Pokemon.
In our home, we stan Pokemon. The toys are all over the house, we watch an episode almost every day, and the kids of course collect Pokemon cards. But they have evolved past my childhood version of collecting cards. They actually play the game!
My 6 year-old son is playing against his 9 year-old brother. But he always loses, and after each loss he tells me it’s impossible to win. His brother’s deck is too strong.
He’s complaining to me again after a loss when I tell him to give me his deck. I have decided I’m going to prove that he can win with this deck. I sit down with the older brother and we begin a game.
But immediately it looks bad. I have two Pokemon I can play, both are weak but one I definitely want to save. Then I look at his cards. They are clearly better than what I have. My heart rate increases. I have just promised my son that he could win with this deck, but it is clear I’m going to lose. I’m going to confirm his assumptions and fail as a father.
I play the weakest Pokemon I have in hopes that I can build my bench. I look at this timid Pokemon and realize it has an ability that gets me more cards. Suddenly, the game has changed. This ability opens my deck and I get to pick my favorite cards and supercharge them. Within two turns the game has flipped and it is clear that I’m not only going to win but I’m going to score a definitive victory.
The game ends and my 6 year-old’s eyes are wide. He looks at me and declares, “Dad! You used strategy!!” He had no idea that there was a way to leverage his resources to beat his brother.
The important economic lesson is about productivity. In economics we know that the most important piece of economic growth is total factor productivity (TFP), how well we use our resources. Two countries might have the same human capital and physical capital, but one might have a larger economy because it uses its resources more productively.
My son and I used the same deck of cards. In his hands it was a terrible deck, but in mine it was a champion’s deck. More importantly, after seeing how I played, he learned what was possible with his resources. If we want to see more economic growth in the world, we need to increase TFP. Fortunately, in many cases, TFP is a transferrable skill.
I have another Pokemon story below, but let’s start with this week’s YouTube videos (videos??…as in more than one??).
Internships are OVERRATED
Two weeks ago I published my video on answering your assumptions about economics majors. In it, I asked if you wanted to hear my thoughts on internships. The response was clear.
So if you head over to YouTube you’ll be able to hear me rant about why internships are broken. Importantly, I outline the economic models that justify internships and why one of them no longer works. But don’t worry! It’s not a negative video. I end with what you should be doing instead of an internship.
Bonus: on my YouTube community page I asked how much my viewers thought I could bench press, and on the video I show you. I promise there’s a good reason, besides showing my viewers I can lift a lot more than they thought.
Bonus video??
You’re the first to know: I’m working on a bonus video for this week. Right now my plan is to release it Wednesday. It has been a while since I’ve done a pop culture video, but the last episode of WandaVision inspired me to do a deep dive on the economics of Vibranium. It’s a fun video that covers supply and demand and elasticities. Everyone’s favorite content!
NFTs
A few weeks ago I wrote about non-fungible tokens (NFTs), a digital collectible powered by blockchain. Well on Pokemon Day on Saturday, along with opening millions of dollars of Pokemon cards, Logan Paul sold his own NFT. You can see an example below. Note what all three have in common: they all sold out.
Now, Logan Paul selling out of his merch isn’t surprising. If someone told you that Logan Paul was selling digital collectibles for $370, even though it’s pricey you might not be surprised a guy with 22 million subscribers on YouTube could find someone to buy them. But even I was shocked to see that someone was willing to buy one for $38,500.
I plan on doing a video on NFTs, but if you want an example of the economics check out this article by Chris Dixon.