Lecciones de Economía - 1ª - 22/09/2009

Name: Lecciones de Economía - 1ª - 22/09/2009
Uploaded: 2013-10-07T18:06:20.000Z
Duration: 1 h 56 min 11 s

Introduction to the Course

Course Overview and Introductions

The session begins with an introduction by the professor, who outlines the structure of the course and emphasizes the importance of student introductions.

The professor mentions that this course is shared with students from a master's program in economics, highlighting a diverse classroom environment.

He notes the mix of students, contrasting serious master's students with younger undergraduates, which adds a unique dynamic to the class.

Faculty and Department Structure

Professor Jesús Huerta de Soto introduces himself as a tenured professor of political economy at Juan Carlos University.

He explains that there are three main professors in economics within his department, each specializing in different areas such as economic structure and analysis.

The department comprises nearly 50 faculty members responsible for teaching economics across various disciplines within the university.

Importance of Economics Across Disciplines

Multidisciplinary Approach

The professor discusses how their department integrates economics into all academic programs, emphasizing its relevance beyond traditional boundaries like law or business.

He highlights that this approach enriches students' understanding by providing a broader perspective on how economics interacts with other fields.

Relevance to Communication Audiovisual Students

The professor expresses enthusiasm for teaching economics to communication audiovisual students, noting its significance for their future careers in media.

He asserts that understanding economic principles will help these students navigate their professional landscape effectively.

Personal Academic Journey

Educational Background

Professor Huerta shares his educational background, having studied both economics and law at Complutense University of Madrid.

He reflects on his passion for learning and studying throughout his academic career, indicating it was a significant part of his identity.

Philosophy on Learning

Citing Nobel laureate Friedrich Hayek, he emphasizes that the desire to learn is an insatiable pleasure compared to other life pleasures which can be satisfied temporarily.

His dedication led him to excel academically; he achieved high marks across most subjects during his studies.

Career Journey and Academic Achievements

Early Education and Exams

The speaker recalls a vibrant family environment filled with books, which fostered a love for learning. They mention taking an extraordinary primary exam in economics, achieving the top position alongside Professor González Páramo.

Despite success in economics, the speaker faced disappointment when they placed fifth in law but did not receive recognition. This highlights the theme of setting high goals and dealing with life's frustrations.

Doctoral Studies

After completing their degree, the speaker pursued doctoral courses in both law and economics, focusing on legal aspects of pension plans under Professor Lucas Beltrán.

Their doctoral thesis on socialist economic calculation received unanimous praise, showcasing their academic prowess early on.

Scholarships and Career Decisions

In 1981, Spain's Bank offered scholarships for advanced studies abroad. The speaker faced a dilemma between pursuing a challenging political career or studying economics in the U.S.

Ultimately, they submitted their curriculum to the Bank of Spain and secured first place due to an outstanding academic record, leading to acceptance at Stanford University.

Master's Thesis and Specialization

At Stanford (1980-1983), they were required to complete a thesis on social security crises and private pension plans—an area aligned with their expertise in actuarial mathematics.

The speaker emphasizes their background as an actuary specializing in statistics and actuarial mathematics, which informed their research focus during graduate studies.

Return to Spain and Recognition

Upon returning to Spain after graduation, they learned about an international economics award related to their thesis topic—the crisis of social security systems—which was timely given Spain's economic context at that time.

They submitted their work for this award without hesitation and were later notified that they had won the prestigious Juan Carlos Prize at just 27 years old—a remarkable achievement recognized by notable figures including King Juan Carlos himself.

Academic Career Development

Following this accolade, the speaker joined Complutense University's Department of Applied Economics after being invited due to unforeseen circumstances where another professor fell ill.

Challenges in Academic Competitions

Personal Experience with Competitive Exams

The speaker reflects on their experience with competitive exams, noting that they have taken three major exams and four additional ones. They express doubt about their ability to endure such long hours of preparation now due to age.

In the academic career path, candidates are ranked in a queue system where previous attempts can position them better for future opportunities. The speaker mentions being informed of three main issues that hindered their success in initial attempts.

Feedback from the selection committee highlighted three key points: the candidate was deemed "too brilliant," there were concerns about direct competition in Madrid, and their multidisciplinary approach did not align with the committee's expectations.

Persistence and Success

Despite initial setbacks, the speaker demonstrated persistence by reapplying after several years and eventually succeeded in securing a professorship directly in Madrid.

The speaker emphasizes authorship of seven books, critiquing those who claim originality while relying heavily on existing literature without proper attribution. They stress transparency regarding sources used in their work.

Contributions to Academia

The speaker discusses their published works and articles available on their website, highlighting a commitment to sharing knowledge through various platforms.

A specific book titled "Money, Credit Banking and Economic Cycles" is mentioned as a significant focus for an upcoming course. It has been translated into multiple languages including English, Russian, Czech, Polish, French, Italian, German, Romanian, Arabic, Japanese, and Korean.

Recognition and Awards

The speaker shares experiences presenting their work internationally; notably at Moscow State University where they discussed economic theories contrary to mainstream views.

They received an award named after Adam Smith but expressed discomfort with it due to Smith's perceived interventionist views. Instead, they argue that modern economic thought traces back to Spanish scholastics from the 16th century.

Educational Philosophy

Teaching Philosophy and Passion

The Role of Youth and Ambition in Teaching

The speaker emphasizes the importance of youth and ambition, encouraging students to seize opportunities as they have their lives ahead of them.

The professor sets an ambitious goal for himself: to be the best teacher his students have ever had, highlighting the personal responsibility of students in this journey.

Personal Experience and Reflection on Teaching

Reflecting on his educational journey, the professor shares that he has experienced around 70 teachers throughout his academic life, which informs his teaching style.

He aims to distill the best practices from those who taught him while infusing his own personality into his teaching approach.

Influence of American Teaching Methods

The professor notes that his teaching style is heavily influenced by dynamic classroom environments typical in top U.S. universities, contrasting it with traditional Spanish methods.

He describes professors in America as showmen who actively engage students to maintain interest and attention during classes.

Core Principles of Teaching

Love for Teaching

The speaker defines teaching as fundamentally rooted in love—love for the subject matter, the profession itself, and for students.

He expresses joy in teaching and views it as a privilege to guide mature students through their learning process.

Attitude Towards Students

A comparison is made between two types of teachers: one who sees students negatively versus one who appreciates them; he argues that attitude significantly impacts effectiveness.

Embracing Student Life

Importance of Passionate Learning

Students are encouraged to view their education as a privilege rather than a chore; loving what they study is essential for success.

The professor stresses that student years are unique and should be maximized for learning experiences without taking them for granted.

Balancing Effort with Enjoyment

He advocates for a balanced approach where hard work does not preclude enjoyment; managing studies effectively leads to better outcomes without unnecessary stress.

Enthusiasm as a Driving Force

Defining Enthusiasm

Enthusiasm is described as an internal energy that propels individuals toward achieving their goals; it's crucial for both teachers and students alike.

Transmitting Energy

The Secret to Success: Enthusiasm and Clarity

The Role of Enthusiasm in Life

The speaker emphasizes that enthusiasm is crucial for success in all aspects of life, including relationships, careers, and helping others.

Teaching requires not only love and enthusiasm but also clarity; a teacher must communicate knowledge effectively.

A lack of clarity from a teacher indicates they may not fully understand the material themselves, leading to confusion among students.

Key Qualities of Effective Teaching

Clarity is essential for effective teaching; logical arguments should be presented clearly to illuminate understanding.

Consistency is another key quality in teaching; repetition helps reinforce concepts from various perspectives until they are clear to students.

The four pillars of successful teaching are love, enthusiasm, clarity, and constancy.

Personal Insights on Teaching Philosophy

The speaker shares their personal philosophy regarding teaching and expresses a desire for students to introduce themselves.

Students are encouraged to submit personal information early on so that the instructor can learn their names and faces quickly.

Importance of Communication with Parents

Clear communication about student performance is vital; parents need accurate addresses for receiving commendations or gifts related to academic achievements.

Anecdotes illustrate how positive feedback can significantly impact both students' lives and their parents' perceptions.

Understanding Market Processes

The course will focus on market processes as complex networks of human interactions driven by entrepreneurial dynamics.

Emphasis is placed on the creative capacity inherent in humans which drives innovation within societal structures.

What Distinguishes Humans?

The Creative Capacity of Humans

The unique trait that sets humans apart from other animals is their creative capacity, which allows for the creation of ideas rather than just physical objects or tools.

Ideas and knowledge are transmitted through successive waves in various human interests, forming the basis of economic science, which studies these processes.

Understanding Communication in Economics

In audiovisual communication, information is often perceived as objective; however, human-generated knowledge is subjective and cannot be easily recorded or stored.

This subjective knowledge is crucial for success in life and is characterized by its practical nature, making it difficult to formalize or articulate.

Knowledge Transmission Mechanisms

Knowledge transmission occurs subtly; for instance, when a scarce resource's price rises, people instinctively adjust their consumption without conscious awareness.

Economic signals often manifest as prices that help coordinate human behavior spontaneously without centralized direction.

The Role of Government Intervention

Spontaneous Processes in Society

Attempts by governments to intervene in economic processes can lead to disorganization rather than improvement.

The course will focus on understanding how spontaneous processes facilitate societal functioning through effective knowledge transmission.

Importance for Business Students

For business students, understanding these concepts is vital as they relate directly to the role of entrepreneurs within the economy.

Connecting Communication and Economy

Insights for Audiovisual Communication Students

Students studying audiovisual communication will learn how economic principles reshape their understanding of messaging and audience interpretation.

Historical Context: Austrian School of Economics

Foundations of Economic Thought

The course will explore the Austrian School's historical roots, emphasizing its humanistic and dynamic approach to economics initiated by Carl Menger in 1871.

Spanish Contributions to Economic Theory

There’s a proposal to rename the Austrian School due to Spain's significant contributions during its Golden Age, linking back to earlier scholastic traditions.

Course Structure and Expectations

Preparing for Class Engagement

Course Reading and Study Strategies

Importance of Assigned Readings

The program outlines daily readings, specifying the source material. For example, on Tuesday, students are expected to read from Mises' work, specifically pages 1 to 35.

Students must complete these readings by October 6th, as the course begins on October 22nd. This sets a clear timeline for engagement with the material.

Necessity of Textbooks

It is emphasized that all students must purchase specific textbooks. The professor receives a commission from sales, highlighting the importance of supporting academic resources.

A personal library is deemed essential for university students; arriving at graduation without one is seen as unfortunate. Students should build their libraries throughout their studies.

Building a Personal Library

The professor encourages students to create a collection of textbooks and recommended readings that will serve them professionally in the future.

There’s an emotional satisfaction associated with seeing one's library grow over time, which reflects years of study and effort.

Recommended Textbooks

Key texts include "La Acción Humana" by Mises, which is described as foundational for understanding economics from an entrepreneurial perspective.

Students are encouraged to carry Mises’ book visibly in public spaces like buses or subways to promote its significance and engage others in discussion about it.

Study Techniques

In addition to Mises' text, supplementary materials such as "Economía Política" will be used throughout the course.

The professor offers support for any student facing financial difficulties in acquiring books, indicating a commitment to ensuring all can participate fully in the course.

Effective Study Methods

To succeed academically, students must adopt effective study habits: reading thoroughly before class and actively engaging with the material through memorization techniques.

Initial steps involve quickly reading assigned topics and underlining key points before delving deeper into memorization strategies that require repetition and verbal recitation of learned concepts.

Memorization Techniques Explained

The process involves reading a topic multiple times while attempting to recall information aloud after each reading session until mastery is achieved.

This method emphasizes discipline and effort; success requires persistence through repeated attempts at recalling information accurately without looking back at notes immediately after reading.

Study Habits and Motivation

Importance of Memorization and Classification

Emphasizes that frequent practice leads to better memorization habits, making it easier to recall complex legal texts or economic ideas.

Stresses the necessity of classifying problems by type, allowing students to quickly identify and address them during exams without improvisation.

Daily Study Commitment

Highlights the importance of dedicating 4 to 5 hours daily for effective study, countering excuses like time management issues or distractions.

Suggests that excelling in one subject can lead to success across others due to a lack of competition among peers.

Following Instructions for Success

Advises students to strictly follow the professor's guidance as a clear path to success, contrasting this with potential failure from non-compliance.

Discusses cultural differences in educational expectations, using humor about strict discipline compared to other countries.

Overcoming Lack of Motivation

Acknowledges feelings of boredom or disinterest in studies and offers strategies for overcoming these challenges.

Uses an analogy from "Saving Private Ryan" where soldiers act bravely despite fear, suggesting that students should also act motivated even when they don't feel it.

Acting Motivated

Encourages students to mentally visualize what a motivated person would do and then emulate those actions without overthinking.

Recommends taking immediate action as if one is already motivated; this can help shift mindset towards enthusiasm for studying.