00:01
Let's talk about why shocks can force people to make changes using these two common scenarios.
00:05
All right.
00:06
So first, let's say that we live in our country, and our country's government has decided that it wants to encourage domestic production of gas, right, to give our country's workers more jobs, right? so they have decided to raise tariffs on foreign gas and especially a country that supplies us with a lot of gas.
00:26
All right.
00:27
So when these tariffs first hit, the price of gas goes way up, right? because our supply has decreased because we have barred one of our main suppliers of gas from selling it to us.
00:38
Right.
00:38
So yesterday, if gas was $2 and $2 and we drive up today and we see gases increased by a whole dollar, well, that forces us to make a change, right? if we can't afford to pay this increase per gallon of $1, then we might start driving less, right? maybe we'll start a, uh, using public transportation instead of our own car, maybe we'll try and bike more, things like that, right? so that's one way that a shock can force you to make changes, right? so this newfound scarcity or decrease in supply has increased the price, which makes consumers make changes, right? so a very similar example, let's say that there is a union for airplane pilots, right? so we have this union, and let's say that airplane pilots are, they feel that they're being turned.
01:26
Treated very unfairly...