Educational Media Reviews Online

The Flaw discusses the flaw in Alan Greenspan’s model of “how the world works,” or to be precise that he was mistaken in putting so much faith in the self-correcting power of free markets, the efficient market theory. The incidental tour of Wall Street adds another element of appeal to a wider audience. Economists believe that the freedom to work in the job of one’s choice is coming into question, and the film shows how excessive income inequality in society leads to economic instability. Other topics covered include “the optimism of standard economics,” the anomaly of bubbles, explosion of capitalism, and the instability of asset markets. Leading global economists interviewed include Robert Shiller, Nobel laureate Joseph Stiglitz, and Louis Hyman as well as Wall Street insiders and victims of the economic crisis. Asset markets are much more stable than goods markets. The Asset Market Model theory suggests that a currency will be in more demand and hence will likely appreciate in value. In the goods market or a market economy the prices of goods and services are determined in a free price system. The economists discuss the implications of these two economies on the current U.S. and global economy. History is also brought in as some economists see the 1920’s as a precursors to what has happened in the 2000s.

Video techniques and effects are very well executed as are the interviews with the various economists. The placement of the interviews as well as the use of cartoon images add interest and appeal to this otherwise rather depressing subject. The topic is carefully researched and presented, and will provide interesting information for students, investors, and the general public. This DVD is suitable for high school and college students as well as adults, and public and academic libraries will want to purchase.