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The Diamond-Water Paradox

Adam Smith, the father of economics, had a problem. He believed in the wisdom of markets--that the free market would always settle on the best price for something. That price would be an expression of how valuable that item was. The problem: diamonds are more expensive than water and water is more valuable to us than diamonds.

We talked to about the paradox and Smith.

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Stacey Vanek Smith is the co-host of NPR's The Indicator from Planet Money, and is a correspondent for Planet Money.
Cardiff Garcia is a co-host of NPR's The Indicator from Planet Money podcast, along with Stacey Vanek Smith. He joined NPR in November 2017.