Problem Solving: How Markets Succeed By Failing

As our civilizations become more complex, so do our problems. During times of hunter-gather societies, the number of products was typically around 300. Knife, bowl, etc. But nowadays, it is estimated that a large city like New York has approximately 10,000,000,000 products. This increases the possible number of problems to astounding rates. So just how do we solve all these issues?

Economist Tim Harford says we solve these problems through trial and error. He believes our markets succeed in the western world because our system lets businesses fail. And when weak businesses fail we replace bad ideas with better ideas.

Harford is an engaging speaker and a widely read economist. Take a listen to this great lecture.

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