Calvin Blackwell, associate professor of economics, is known for making a pretty tough subject both accessible and entertaining for students. We tapped into his expertise to get a better handle on one of today’s mainstay headlines – the economy. We also learned a few things about game theory, behavorial economics and why people stand at basketball games.

What attracted you to study economics? Economics is very pragmatic about solving humanity’s problems. It doesn’t start with the moral premise that the solution for most problems is for people to treat each other better. Rather, it takes people as they are (amoral) and asks what sorts of incentives can we provide people so that they will behave in a more moral way.

What kind of economics do you espouse? I’m a behavioral economist – I don’t assume that people always behave with a high level of rationality, but rather occasionally make mistakes. I think certain types of government intervention in markets can be helpful, but not all intervention is good.

What college course should every business-minded student take? Economics, obviously! Everyone needs an understanding of how markets work because we constantly interact with markets, and anyone who plans to vote should have a basic understanding of how the macroeconomy works, if only so that truly stupid public policy can be identified.

What’s your favorite class to teach? I like to teach Game Theory because a) it is fun (after all, it’s about games) and b) it’s about how people interact with each other strategically. The second reason makes the subject highly applicable to everyday life. Game theory can help explain why students’ dorm rooms are usually messy, why improving your backhand can let you hit your forehand more often and why people stand at basketball games. For example, each person individually can get a better view of the game by standing, and so has an incentive to stand. However, ironically, if everyone stands, no one’s view is improved.

What’s your favorite “economy” movie? I saw Wall Street when I was in college, and it continues to be my favorite movie with an economic/business orientation.

What book should the layperson read to get a better understanding of the economy? I recommend Todd Bucholz’s book New Ideas From Dead Economists.

What have you found most surprising during the Great Recession? The strangest part of this recent economic era is the inability of people to see what was right in front of them. By which I mean, lots of smart people failed to understand that real estate was overvalued.

When I moved to Charleston in 2001, I thought the market was high. I based my impression on the fact that the median house was selling for around $200,000 – but the median income in the area represented a family that couldn’t possibly afford that $200,000 house. Yet, people continued to buy homes that they clearly couldn’t afford.

As someone who likes to think people are capable of acting rationally and in their own self-interest, this behavior was bizarre. People should have refused to pay such high prices, and this discipline should have kept homes cheaper. The fact that this didn’t happen is very troubling to me, and to the modern discipline of economics.

What’s your favorite food? Reese’s Peanut Butter Cups.

As an economist, you’re constantly asked to make predictions and forecasts. What’s your most accurate prediction to date and which one did not materialize? Someone wise (maybe Yogi Berra) once said, “It’s hard to make predictions, especially about the future.” For a couple of years, I helped produce the occupancy rate forecast for Charleston-area hotels. Two years before the Great Recession, our model was very accurate. When we predicted occupancy for (what turned out to be the beginning of) the Great Recession, we were not accurate.

What is the most interesting thing in your office? A painting by my son, Kai. My favorite painting (I have five) is an abstract piece reminiscent of a Jackson Pollack (minus the cigarette butts, of course – he was only 5 years old when he painted it).

With all of the economic woes happening around the world, Are we on the cusp of another great depression? I don’t think a worldwide depression is likely because, despite all the problems in the developed world, many parts of the developing world (China, India, Brazil) are doing very well, and they don’t seem overly dependent on our continued growth. I do think the developed countries may see a few more years of weak growth, but as long as the basic institutions of the economy (low corruption and rule of law, reasonably effective regulation, continued investments in basic infrastructure and education) stay strong, we’ll be fine in the long run.

What economic period do you most want to study? I think today is the most interesting period of economic history. We have far more complicated and sophisticated phenomena to study today than at any other time.

What do you see as Charleston’s economic strengths during the 21st century? Tourism appears to be an enduring part of the local economy. It cannot be outsourced, as it comes from the features of the place. Similarly, the port and the advantage it provides can be a long-term strength of the area – although there are some economic forces that may reduce its impact.

If you could be a super-hero, who would you be? Professor X (of the X-Men). I think it would be cool to be able to read people’s minds.