Editing 25: The Construct: Jeffrey Epstein

<p><em>00:09:37</em><br>At that point, I also became aware of what I have termed the [https://twitter.com/EricRWeinstein/status/942821656451457024 Borjas Rectangle Theory]: that is that employers generally, in free market economies, when they’re complaining about labor shortages, are actually trying to transfer wealth from labor to capital-complaining instead that there is a small inefficiency that needs to be rectified, which we might [in turn] call the Harberger Triangle. So that is, employers claim that there’s a small inefficiency, but in [point of] fact they’re seeking large transfer payments <em>from</em> the vulnerable <em>to</em> the well-heeled. I also believe that NAFTA and the Free Trade Agreement from the 1990s, was a kind of conspiracy supported by the economics establishment of the United States; that they knew that in fact free trade was not a freebie. It was not in fact a rising tide that lifted all boats, but was in fact, again, a transfer, which was claimed to be a pure good for everyone. This is the difference between something called the Kaldor-Hicks objective function and the Pareto objective function. </p>