Luke is about to drop his history class because he has a major paper due that he hadn’t started yet. It turns out that the topic of this paper is the same topic his mother wrote when she was in college, but she was less than thrilled with her grade on the paper. She asks Luke to turn it in for her to see if she was cheated out of a grade.
In order to get the paper onto a flash drive, Claire had to go through some lengthy measures to convert the file from its original form decades earlier to a flash drive. We see the amount of technological change Claire has experienced in just her lifetime with the multiple computers linked together.
See more: creative destruction, Joseph Schumpeter, technological change, technology
Video cassettes have been replaced by DVDs and streaming services and are slowly becoming an outdated technology. Before getting rid of their VCR, Claire and Phil are going through their VHS collection and watching the movies one last time. Joseph Schumpeter conceived the idea of creative destruction in which new technologies are created at the cost of destroying old industries. From a labor economics perspective, growth in some sectors come at the cost of losing jobs in the industry that is replaced.
See more: creative destruction, Joseph Schumpeter, opportunity cost, tastes and preferences, technological change, technology, tradeoffs
Manny puts up a fiberoptic Christmas tree because it is better for the environment, but Jay thinks it is ugly and does not want it in his house. This clip highlights both positive externalities of fiberoptic trees (environmental benefits) and negative externalities of the tree (Jay’s psychic costs). Jay decides instead that he and Manny should go out and cut down a tree for reasons of tradition.
Jay and Manny tried cutting down their own Christmas tree for hours, but it is not budging and keeps ruining their tools. Jay has finally had enough and says Pritchetts know when to give up. All their previous effort represent a sunk cost, and it would take too much effort relative to the reward of a half burned tree to keep going.
See more: behavioral, negative externalities, positive externalities, private benefits, private costs, social benefits, sunk cost, technological change
Phil gets the house to himself for a few days and he’s opted to upgrade the technology in the home. He programs everything in the house to be controlled by his iPad, essentially freeing himself to do other tasks that require his attention. He can now turn on lights, the TV, and the fireplace from his device. Long term growth in economies is often fueled by capital investments, which allows populations to be more productive. The same is true at the household level, such that investments in capital improve the productivity of inhabitants.
See more: economic growth, marginal product of labor, productivity, standard of living, technological change, technology
It is Phil’s birthday and also the day the iPad is being released. Phil is willing to spend his birthday waiting in line to be sure he gets the new iPad, but Claire offers to do it for him. Instead of getting there early, she ends up falling asleep on the couch. When she finally gets to the store, they are all out, and Phil ends up wishing he had handled it himself.
See more: costs, demand, early adopters, gift giving, innovation, nonpecuniary benefits, preferences, tastes and preferences, technological change, technology
After receiving a nomination to a major closet expo, Jay receives a phone call who expects to be full of congratulatory remarks. He instead finds the dial tone from a fax machine that has misdialed the number the intended. Jay, who isn’t the most technologically savvy member of the family, wonders why anyone might still be using a fax machine.
See more: demand, growth, innovation, technological change
Jay got new glasses that make him look like an old man but they work really well. So well that he realizes that Gloria’s family members in Columbia are wearing his old clothes. Notice that Gloria says that they sometimes send the clothes back. In the US, people frequently donate clothing to people in less developed countries. Many economists argue that this is counterproductive and leads to a surplus of clothing in these countries. That surplus can hurt markets and cost jobs.
See more: charity, donations, efficiency, emerging markets, gift giving, growth, interdependent utility functions, preferences, utility
Claire is trying to get the kids downstairs for breakfast and is shouting across the house. Hailey doesn’t understand why Claire won’t just text them, but Claire refuses. Improvements in technology should make everyday life more efficient, but Claire wants to stick with tradition.
See more: efficiency, technological change
Manny lost Luke in a “sketchy” neighborhood. He and Phil enlist Gloria’s help to track him down. When they arrive in the neighborhood, they find that it has changed quite a bit since Gloria lived there. When searching for a girl, they have the option of visiting one of the four area cupcake stores, each specializing in a different area.
See more: gentrification, growth, imperfect competition, incentives, income inequality, market structures, monopolistic competition, preferences, product differentiation
One of the tougher topics to get across to students is why older Americans start to leave the labor force. One explanation for the leave is that they see a decrease in their human capital and that some of their previous training is no longer relevant. This clip does a good job bringing humor to a topic that often sounds derogatory.
See more: human capital depreciation, innovation, labor, life cycle considerations, technological change, technological knowledge