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Podcast: Wealth Formula Podcast
Episode: 314: Is Economics Just Common Sense?
Description: The hardest part about understanding economics is terminology. In reality, economics really just comes down to understanding human behavior based on incentives. Let's take for example the Cobra Effect. This is a term coined by economist Horst Siebert to describe a time in India under British rule when the local governor was trying to figure out how to deal with an apparent uptick of venomous snakes in Delhi. The governor decided to implement a bounty system. People were paid handsomely for each and every cobra head that they could produce. The solution worked very well at the beginning and there...