I didn't see the whole episode, but friends and students tell me last night's South Park was a particularly on-target take on the financial crisis. The clip below nicely illustrates Higgs's concept of "regime uncertainty" as the real "system" behind governmental financial policy is revealed.
FANTASTIC!
Posted by: Mario Rizzo | March 26, 2009 at 06:27 PM
It was funny, but the economics was flawed. Everyone in South Park, except Kyle, thought The Economy had been offended by mankind and was inflicting punishment. So to placate The Economy, they swore off consumption and were living in poverty. Kyle, the Jewish heretic, insisted The Economy is just people and that they all should buy things to restore confidence and prosperity. I didn't see a hint of the sound position.
Posted by: Sheldon Richman | March 26, 2009 at 06:32 PM
Actually, earlier in the episode there is a man on a soapbox saying that the cause of the crisis was interest rates being kept artificially low.
Posted by: John Singleton | March 26, 2009 at 06:54 PM
Yes, he was there. No sound econ otherwise. Quite a letdown after the first two.
Posted by: scineram | March 26, 2009 at 09:00 PM
He was there, but they dismissed him as being a spokesman for Wall Street. It was a good episode on its own merits (the religious references were great), but I wouldn't say they got the economics perfect.
Posted by: John | March 26, 2009 at 10:04 PM
My analysis is here:
http://danishgold.blogspot.com/2009/03/south-park-on-economics.html
A provocative, but deeply flawed episode. The show ends up endorsing both methodological individualism and Keynesian macroeconomics.
Posted by: Eric Dennis | March 27, 2009 at 10:05 AM
Eric,
Randy isn't Kyle's father, he's Stan's father.
As far as this episode goes, I think it's a mistake to assume that the authors' views are being held by any character on the show. That isn't how South Park works. Every character is usually a target of the satire rather than a mouthpiece. Often, when Parker and Stone want to offer a concrete position through one of the characters, there's a speech near the end that starts, "You know, I think I've learned something today." and gives the lesson that children have taken from the episode.
If any character plays the voice of reason, it is usually Stan. Stan, spent almost the entire episode outside of South Park trying to get the money back from his father's frivolous purchase: the Margaritaville blender, which serves as a symbol of the overconsumption fueled by artificially low interest rates (it was purchased on a payment plan) that the soapbox speaker dismissed as a Wall Street apologist mentioned in the beginning of the episode.
Does it really come as any surprise that the only hint of sound economic analysis is dismissed as Wall Street apologetics in a satirical cartoon? I mean, seriously? Does that not happen in real life?
I thought it was obvious, especially given the religious analogy, Parker and Stone were endorsing neither Randy nor Kyle's view. South Park isn't FEE! They're mission isn't economic education. They're mission is to make a living making fun of people. Mission accomplished!
Posted by: Rocco | March 27, 2009 at 11:40 AM
South Park is surely no FEE. I wish we had a fraction of its audience. I missed the part with the low-interest-rate sermon. Darn. I definitely enjoyed the episode overall. The Treasury scene was wonderful. And Stan is my hero!
Posted by: Sheldon Richman | March 27, 2009 at 04:20 PM
Having watched the episode online, I don't think the condemner of low interest rates is being dismissed as a Wall Street lackey. I think the guy who denounces Wall Street just happens to be the next street preacher.
Posted by: Sheldon Richman | March 27, 2009 at 04:56 PM
It was pretty clear to me that, with the purchase of the new Margaritaville at the end, they were making fun of 'spending our way to prosperity'.
Posted by: Gene Callahan | March 27, 2009 at 07:20 PM