EconTalk

Coase on Externalities, the Firm, and the State of Economics

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 21 May 2012 06:30:00 EST

Nobel Laureate Ronald Coase of the University of Chicago talks with EconTalk host Russ Roberts about his career, the current state of economics, and the Chinese economy. Coase, born in 1910, reflects on his youth, his two great papers, "The Nature of the Firm" and "The Problem of Social Cost". At the end of conversation he discusses his new book on China, How China Became Capitalist (co-authored with Ning Wang), and the future of the Chinese and world economies.

Owen on Parenting, Money, and the First National Bank of Dad

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 14 May 2012 06:30:00 EST

David Owen, author of The First National Bank of Dad, talks with EconTalk host Russ Roberts about how to educate our children about money and finance. Owen explains how he created his own savings accounts for his kids that gave them an incentive to save and other ways to teach them about postponing gratification, investing, keeping money in perspective and other life lessons. The conversation closes with a discussion of the value of reading to your kids.

Schmidtz on Rawls, Nozick, and Justice

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 07 May 2012 06:30:00 EST

David Schmidtz of the University of Arizona talks with EconTalk host Russ Roberts about the work of John Rawls and Robert Nozick. The conversation covers the basic ideas of Rawls and Nozick on inequality and justice and the appropriate role of the state in taxation and property rights.

Taylor on Rules, Discretion, and First Principles

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 30 Apr 2012 06:30:00 EST

John Taylor of Stanford University's Hoover Institution talks with EconTalk host Russ Roberts about his new book, First Principles: Five Keys to Restoring America's Prosperity. Taylor argues that when economic policy adhere to the right basic principles such as keeping rules rather than using discretion, then the economy thrives. Ignoring these principles, Taylor argues, leads to bad economic outcomes such as recessions, inflation, or high unemployment. Taylor illustrates these ideas with a whirlwind tour of the last half century of American economic policy and history. The focus is on monetary and fiscal policy but Taylor also discusses health care reform and other policy areas. The conversation closes with a look at the likelihood that economic policy will change dramatically after 2012.

Cowen on Food

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 23 Apr 2012 06:30:00 EST

Tyler Cowen of George Mason U. and author of An Economist Gets Lunch, talks with EconTalk host Russ Roberts about food, the economics of food, and his new book. In this wide-ranging conversation, Cowen explains why American food was once a wasteland, the environmental impacts of plastic and buying local, why to stay away from fancy restaurants in the central city, and why he spent a month shopping only at an Asian supermarket while living in Northern Virginia.

Autor on Disability

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 16 Apr 2012 06:30:00 EST

David Autor of MIT talks with EconTalk host Russ Roberts about the Social Security Disability Insurance (SSDI) program. SSDI has grown dramatically in recent years and now costs about $200 billion a year. Autor explains how the program works, why the growth has been so dramatic, and the consequences for the stability of the program in the future. This is an illuminated look at the interaction between politics and economics and reveals an activity of government that is relatively ignored today but will not be able to be ignored in the future.

Burkhauser on the Middle Class

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 09 Apr 2012 06:30:00 EST

Richard Burkhauser of Cornell University talks with EconTalk host Russ Roberts about the state of the middle class. Drawing on recently published papers, Burkhauser shows that changes in the standard of living of the middle class and other parts of the income distribution are extremely sensitive to various assumptions about how income is defined as well as whether you look at tax units or households. He shows that under one set of assumptions, there has been no change in median income, but under a different and equally reasonable set of assumptions, median income has grown 36%. Burkhauser explains how different assumptions can lead to such different results and argues that the assumptions that lead to the larger growth figure are more appropriate for capturing what has happened over the last 40 years than those that suggest stagnation.

Eugene White on Bank Regulation

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 02 Apr 2012 06:30:00 EST

Eugene White of Rutgers University talks with EconTalk host Russ Roberts about the regulation of banks and financial crises. White argues that most regulation tries to limit the choices of banks to restrain them from making choices that create instability or fragility. A better approach, White argues, is to change the incentives facing bankers so that they would be encouraged to make prudent choices without the need for top-down monitoring. He shows how in the 19th century various regulations and market results encouraged stability and prudence while some regulations made the system more fragile. White discusses the lessons for the current crisis and what might be done to improve the current state of regulation.

Boudreaux on Public Debt

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 26 Mar 2012 06:30:00 EST

Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts about the nature of public debt. One view is that there is no burden of the public debt as long as the purchasers of U.S. debt are fellow Americans. In that case, the argument goes, we owe it to ourselves. Drawing on the work of James Buchanan, particularly his book Public Principles of Public Debt: A Defense and Restatement, Boudreaux argues that there is a burden of the debt and it is borne by future taxpayers. Boudreaux argues that all public expenditures have a cost--the different financing mechanisms simply determine who bears the burden of that cost. Boudreaux discusses the political attractiveness of debt finance because the taxes lie in the future and those who will pay for them may not be clearly identified. The conversation closes with a discussion of the role of expectations in both politics and economics of debt finance.

Acemoglu on Why Nations Fail

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 19 Mar 2012 06:30:00 EST

Daron Acemoglu of MIT and author (with James Robinson) of Why Nations Fail talks with EconTalk host Russ Roberts about the ideas in his book: why some nations fail and others succeed, why some nations grow over time and sustain that growth, while others grow and then stagnate. Acemoglu draws on an exceptionally rich set of examples over space and time to argue that differences in institutions--political governance and the inclusiveness of the political and economic system--explain the differences in economics success across nations and over time. Acemoglu also discusses how institutions evolve and the critical role institutional change plays in economic success or failure. Along the way, he explains why previous explanations for national economic success are inadequate. The conversation closes with a discussion of the implications of the arguments for foreign aid and attempts by the wealthy nations to help nations that are poor.

Derman on Theories, Models, and Science

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 12 Mar 2012 06:30:00 EST

Emanuel Derman of Columbia University and author of Models. Behaving. Badly talks with EconTalk host Russ Roberts about theories and models, and the elusive nature of truth in the sciences and social sciences. Derman, a former physicist and Goldman Sachs quant, contrasts the search for truth in the sciences with the search for truth in finance and economics. He critiques attempts to make finance more scientific and applies those insights to the financial crisis. The conversation closes with a discussion of career advice for those aspiring to work in quantitative finance.

Calomiris on Capital Requirements, Leverage, and Financial Regulation

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 05 Mar 2012 06:30:00 EST

Charles Calomiris of Columbia University talks with EconTalk host Russ Roberts about corporate debt, capital requirements, and financial regulation. This is an in-depth conversation about how debt works on a firm's balance sheet and the risks that debt vs. equity pose for the survival of the firm. Calomiris applies these insights to financial regulation--how it works in practice and the firm's choices in responding to various interventions including bailouts and capital requirements. The conversation closes with a discussion of some of the government interventions in the financial crisis.

Weinberger on Too Big to Know

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 27 Feb 2012 06:30:00 EST

David Weinberger of Harvard University's Berkman Center for Internet & Society and author of Too Big to Know, talks with EconTalk host Russ Roberts about the ideas in the book--how knowledge and data and our understanding of the world around us are being changed by the internet. Weinberger discusses knowledge and how it is attained have changed over time, particularly with the advent of the internet. He argues the internet has dispersed the power of authority and expertise. And he discusses whether the internet is making us smarter or stupider, and the costs and benefits of being able to tailor information to one's own interests and biases.

Adam Davidson on Manufacturing

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 20 Feb 2012 06:30:00 EST

Adam Davidson of NPR's Planet Money talks with EconTalk host Russ Roberts about manufacturing. Based on an article Davidson wrote for The Atlantic, the conversation looks at the past, present, and future of manufacturing. Davidson visited an after-market auto parts factory in Greenville, South Carolina and talked with employees there as well as with executives at corporate headquarters. What is the future of factory work in America? Why are some manufacturing jobs in America while others are in China or elsewhere? The conversation looks at these questions as well as how well or poorly the U.S. education system prepares students for the world of work.

David Owen on the Environment, Unintended Consequences, and The Conundrum

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 13 Feb 2012 06:30:00 EST

David Owen of the New Yorker and author of The Conundrum talks with EconTalk host Russ Roberts about the ideas in his book. Owen argues that innovation and energy innovation have increased energy use rather than reduced it and similarly, other seemingly green changes do little to help the reduce humanity's carbon footprint or are actually counter-productive. Only large reductions in consumption are likely to matter and that prescription is unappealing to most people. Owen points out that New York City, ironically perhaps, is one of the greenest places to live because of the efficiencies of density. The conversation concludes with a discussion of how to best approach global warming given these seeming realities.

William Black on Financial Fraud

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 06 Feb 2012 06:30:00 EST

William Black of University of Missouri-Kansas City and author of The Best Way to Rob a Bank Is to Own One, talks with EconTalk host Russ Roberts about financial fraud, starting with the Savings and Loan debacle up through the current financial crisis. Black explains how bank executives can use fraudulent loans to inflate the size of their bank in order to justify large compensation packages. He argues that "liar loans" were a major part of the crisis and that policy changes made it easy to generate such loans without criminal repercussions.

Fama on Finance

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 30 Jan 2012 06:30:00 EST

Eugene Fama of the University of Chicago talks with EconTalk host Russ Roberts about the evolution of finance, the efficient market hypothesis, the current crisis, the economics of stimulus, and the role of empirical work in finance and economics.

David Rose on the Moral Foundations of Economic Behavior

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 23 Jan 2012 06:30:00 EST

David Rose of the University of Missouri, St. Louis and the author of The Moral Foundation of Economic Behavior talks with EconTalk host Russ Roberts about the book and the role morality plays in prosperity. Rose argues that morality plays a crucial role in prosperity and economic development. Knowing that the people you trade with have a principled aversion to exploiting opportunities for cheating in dealing with others allows economic actors to trust one another. That in turn allows for the widespread specialization and interaction through markets with strangers that creates prosperity. In this conversation, Rose explores the nature of the principles that work best to engender trust. The conversation closes with a discussion of the current trend in morality in America and the implications for trust and prosperity.

Taleb on Antifragility

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 16 Jan 2012 06:30:00 EST

Nassim Taleb, author of Fooled By Randomness and The Black Swan, talks with EconTalk host Russ Roberts about antifragility, the concept behind Taleb's next book, a work in progress. Taleb talks about how we can cope with our ignorance and uncertainty in a complex world. Topics covered include health, finance, political systems, the Fed, your career, Seneca, shame, heroism, and a few more.

Dean Baker on the Crisis

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 09 Jan 2012 06:30:00 EST

Dean Baker of the Center for Economic Policy and Research talks with EconTalk host Russ Roberts about the financial crisis. Baker sees the crisis as part of a broader set of phenomena--rising inequality and declining unionization. Baker is highly critical on both economic and political grounds of the policy attempts to stimulate the economy as well as the governance structure of the Federal Reserve. The conversation closes with a discussion of potential innovations to lower the budgetary cost of health care.

Sumner on Money and the Fed

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 02 Jan 2012 06:30:00 EST

Scott Sumner of Bentley University and the blog The Money Illusion talks with EconTalk host Russ Roberts about the state of monetary policy, the actions of the Federal Reserve over the past two years and the state of the economy. Sumner argues that monetary policy has been too tight and helped create the crisis. He disputes the relevance of the so-called liquidity trap and argues that aggressive monetary policy is both possible and desirable. The conversation closes with a discussion of what we have learned and failed to learn during the crisis.

Tabarrok on Innovation

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 26 Dec 2011 06:30:00 EST

Alex Tabarrok of George Mason University talks with EconTalk host Russ Roberts about his new book, Launching the Innovation Renaissance. Tabarrok argues that innovation in the United States is being held back by patent law, the legal system, and immigration policies. He then suggests how these might be improved to create a better climate for innovation that would lead to higher productivity and a higher standard of living.

Klein on Knowledge and Coordination

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 19 Dec 2011 06:30:00 EST

Dan Klein of George Mason University talks with EconTalk host Russ Roberts about the ideas in Klein's new book, Knowledge and Coordination. Klein argues that allegory is a powerful way to think about outcomes of emergent order. He goes deeply into the concept of the invisible hand and creates a novel way to evaluate processes that not under any one's control. Klein then suggests novel ways of evaluating economic outcomes outside of the traditional metrics and techniques. Along the way, Klein emphasizes the role of uncertainty and imperfection in the entrepreneurial process.

Munger on Profits, Entrepreneurship, and Storytelling

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 12 Dec 2011 06:30:00 EST

Mike Munger of Duke University talks with EconTalk host Russ Roberts about profit. What is profit's role in allocating resources? How should we feel about the people who earn profits or who take them in ways that may not be earned? How easy is it to discover profitable opportunities? Munger examines these questions through a series of stories, real and fictional, to illuminate the sometimes puzzling nature of profit.

Cowen on the European Crisis

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 05 Dec 2011 06:30:00 EST

Tyler Cowen of George Mason University talks with EconTalk host Russ Roberts about the European crisis. Cowen argues that Greece is likely to default either in fact or in spirit but that the key question is which nations might follow--whether Italy and Spain can find a road to economic health and honoring past debts. Cowen gives his best guess as to what is likely to happen to the euro and the European Union and the implications for the rest of the world. He explores some less likely scenarios as well. He is pessimistic about Greece and the short-run prospects for preserving the status quo, but he is optimistic in the long-run about the European Union though it may have a different structure down the road.

Simon Johnson on the Financial Crisis

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 28 Nov 2011 06:30:00 EST

Simon Johnson of MIT and the author (with James Kwak) of 13 Bankers talks with EconTalk host Russ Roberts about the origins of the financial crisis and how the next one might be prevented. Invoking the work of George Stigler, Johnson argues that the financial sector has captured the regulatory process and the result is that regulation and government intervention have been steered more by the interests of the financial sector than to the benefit of the general public. Johnson argues for capping the size of banks in order to reduce the danger of systemic risk and the too-big-to-fail excuse for bailing out banks. Johnson also discusses the role of the Fed in subsidizing risk-taking and leverage in the financial sector.

Taubes on Fat, Sugar and Scientific Discovery

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 21 Nov 2011 06:30:00 EST

Gary Taubes, author of Good Calories, Bad Calories, talks to EconTalk host Russ Roberts about what we know about the relationship between diet and disease. Taubes argues that for decades, doctors, the medical establishment, and government agencies encouraged Americans to reduce fat in their diet and increase carbohydrates in order to reduce heart disease. Taubes argues that the evidence for the connection between fat in the diet and heart disease was weak yet the consensus in favor of low-fat diets remained strong. Casual evidence (such as low heart disease rates among populations with little fat in their diet) ignores the possibilities that other factors such as low sugar consumption may explain the relationship. Underlying the conversation is a theme that causation can be difficult to establish in complex systems such as the human body and the economy.

Baumeister on Gender Differences and Culture

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 14 Nov 2011 06:30:00 EST

Roy Baumeister of Florida State University and the author of Is There Anything Good About Men talks with EconTalk host Russ Roberts about the differences between men and women in cultural and economic areas. Baumeister argues that men aren't superior to women nor are women superior to men. Rather there are some things men are better at while women excel at a different set of tasks and that these tradeoffs are a product of evolution and cultural pressure. He argues that evolutionary pressure has created different distributions of talent for men and women in a wide variety of areas. He argues that other differences in outcomes are not due to innate ability differences but rather come from different tastes or preferences.

Kaplan on the Inequality and the Top 1%

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 07 Nov 2011 06:30:00 EST

Steven Kaplan of the University of Chicago talks with EconTalk host Russ Roberts about the richest Americans and income inequality. Drawing on work with Joshua Rauh, Kaplan talks about the composition of the richest 1% and 1/10 of 1%--what proportions come from the financial sector, CEOs from non-financial corporations, athletes, lawyers and so on. Then he discusses how the incomes of these different groups have changed over time. Kaplan argues that these groups have increased their incomes by similar proportions, suggesting that a failure of corporate governance is not the explanation of rising CEO pay. The discussion closes with a discussion of the financial crisis and the compensation in the financial sector.

Avent on Cities, Urban Regulations, and Growth

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 31 Oct 2011 06:30:00 EST

Ryan Avent of the Economist and author of The Gated City talks with EconTalk host Russ Roberts about The Gated City and how cities have restricted access to land and housing. Avent argues that restricted access has raised housing prices artificially on both the east and west coast of the United States, reducing urban populations and restricting access to labor markets. He argues that this in turn has artificially depressed growth in the United States by keeping workers from their most productive opportunities. The conversation closes with a discussion of possible policy changes that might make cities more accessible to development and growth.

Ramey on Stimulus and Multipliers

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 24 Oct 2011 06:30:00 EST

Valerie Ramey of the University of California, San Diego talks with EconTalk host Russ Roberts about the effect of government spending on output and employment. Ramey's own work exploits the exogenous nature of wartime spending. She finds a multiplier between .8 and 1.2. (A multiplier of 1 means that GDP goes up by the amount of spending--there is neither stimulus nor crowding out.) She also discusses a survey looking at a wide range of estimates by others and finds that the estimates range from .5 to 2.0. Along the way, she discusses the effects of taxes as well. The conversation concludes with a discussion of the imprecision of multiplier estimates and the contributions of recent Nobel Laureates Thomas Sargent and Christopher Sims.

Wapshott on Keynes and Hayek

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 17 Oct 2011 06:30:00 EST

Nicholas Wapshott, author of Keynes Hayek: The Clash That Defined Modern Economics, talks with EconTalk host Russ Roberts about John Maynard Keynes and Friedrich A. Hayek--their ideas, their disagreements, their friendship and how the two men influenced economists and public policy during their lifetimes and beyond.

Frank Rose on Storytelling and the Art of Immersion

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 10 Oct 2011 06:30:00 EST

Frank Rose, author of The Art of Immersion and correspondent for Wired Magazine, talks with EconTalk host Russ Roberts about how the web has changed the art of storytelling and the interactions between the web, advertising, games, movies, and television. Rose argues that when a new medium is introduced, whether it is the book, movies, or the web, there is always a period of exploration as to how storytelling, the author, and the audience will interact. While there have always been readers, viewers, and listeners who immerse themselves in good stories, the web allows this immersion to expand dramatically, partly because the audience can share reactions and insights with each other as well as becoming part of the creation of the story in ways that past media have not allowed. Rose chronicles these developments with specific examples and speculates on where storytelling on the web might be headed. The conversation closes with a brief discussion of the passing of Steve Jobs.

Bruce Meyer on the Middle Class, Poverty, and Inequality

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 03 Oct 2011 06:30:00 EST

Bruce Meyer of the University of Chicago talks with EconTalk host Russ Roberts about the middle class, poverty, and inequality. Many economists and pundits argue that the middle class has made little or no economic progress over the last 30 years, that poverty rates are stagnant or rising, and that inequality has increased dramatically. Meyer, drawing on his research over the last ten years, argues that these conclusions are either false or misleading. He argues that standard measures of economic progress and inequality are based on faulty inflation data or a misplaced focus on pre-tax income instead of post-tax income or consumption.

Rosenberg on the Nature of Economics

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 26 Sep 2011 06:30:00 EST

Alex Rosenberg of Duke University talks with EconTalk host Russ Roberts about the scientific nature of economics. Rosenberg, a philosopher of science talks about whether economics is a science. He surveys the changes in economics over the last 25 years--the rise of experimental economics and behavioral economics--and argues that economics has become more scientific and that economists have become more aware of flaws in economic theory. But he also argues that economics is unable to make precise predictions about the effects of various changes in policy and behavior. The conversation closes with a discussion of the role the philosophy of science can play in the evolution of economics.

Garett Jones on Stimulus

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 19 Sep 2011 06:30:00 EST

Garett Jones of George Mason University talks with EconTalk host Russ Roberts about the workers who were hired with money from the 2009 American Recovery and Re-investment Act--the stimulus package. Jones (with co-author Daniel Rothschild) recently completed two studies based on surveys and interviews with firms who received stimulus funds and workers who work at those firms. They found that 42% of workers hired had been unemployed. The remainder came from other jobs or from outside the labor force such as retirement or school. Is 42% a big number or a small number? Jones argues it is small and defends his conclusion. The conversation also includes a discussion of the labor market generally and why the stimulus spending may not have been effective.

Frank on Competition, Government, and Darwin

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 12 Sep 2011 06:30:00 EST

Robert Frank of Cornell University and author of The Darwin Economy talks with EconTalk host Russ Roberts about competition, government and the relevance of Darwin for economics. In a lively and spirited discussion, Frank argues that because people care about their relative standing with their neighbors, standard conclusions about the virtues of competition are misleading. He argues that competition is often wasteful and he suggests directions for tax policy and other forms of government intervention to take these effects into accounts.

Winston on Lawyers

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 05 Sep 2011 06:30:00 EST

Clifford Winston of the Brookings Institution talks with EconTalk host Russ Roberts about the market for lawyers and the role of lawyers in the political process. Drawing on a new co-authored book, First Thing We Do, Let's Deregulate All the Lawyers, Winston argues that restrictions on the supply of lawyers and increases in demand via government regulation artificially boost lawyers' salaries. Deregulation of the supply (by eliminating licensing) would lower price and encourage innovation.

Hanushek on Teachers

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 29 Aug 2011 06:30:00 EST

Eric Hanushek of Stanford University's Hoover Institution talks with EconTalk host Russ Roberts about the importance of teacher quality in education. Hanushek argues that the standard measures of quality--experience and advanced degrees--are uncorrelated with student performance. But some teachers consistently cover dramatically more material and teach more than others, even within a school. Hanushek presents evidence that the impact of these differences on lifetime earnings for students can be quite large. The conversation closes with a discussion of school finance and the growth of administrators within school systems.

O'Donohoe on Potato Chips and Salty Snacks

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 22 Aug 2011 06:30:00 EST

Brendan O'Donohoe of Frito-Lay talks with EconTalk host Russ Roberts about how potato chips and other salty snacks get made, distributed, and marketed. The interview follows an hour-long tour of a local supermarket where O'Donohoe showed Roberts some of the ways that chips and snacks get displayed and marketed in a modern supermarket. The conversation is a window into a world that few of us experience or are even aware of--how modern producers and retailers make sure the shelves are stocked and their products get noticed.

Brady on the Electorate and the Elections of 2010 and 2012

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 15 Aug 2011 06:30:00 EST

David Brady of Stanford University talks with EconTalk host Russ Roberts about the lessons of the election of 2010 and what we might expect from the elections of 2012. Brady draws on political history as well as survey results from work with colleagues Doug Rivers and Morris Fiorina to speculate about the elections of 2012. Along the way he discusses the power of the independent vote, how ObamaCare affected the election of 2010, and the prospects for the Republican nominee in 2012. Taped a few days before the deal on the debt was reached, Brady gives his thoughts on the politics of the negotiations. The conversation concludes with a discussion of whether Obama will have a primary challenger.

Satz on Markets

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 08 Aug 2011 06:30:00 EST

Debra Satz, Professor of Philosophy at Stanford University, talks with EconTalk host Russ Roberts about her book, Why Some Things Should Not Be For Sale: The Moral Limits of the Market. Satz argues that some markets are noxious and should not be allowed to operate freely. Topics discussed include organ sales, price spikes after natural disasters, the economic concept of efficiency and utilitarianism. The conversation includes a discussion of the possible limits of political intervention and whether it would be good to allow voters to sell their votes.

Admati on Financial Regulation

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 01 Aug 2011 06:30:00 EST

Anat Admati of Stanford University talks with EconTalk host Russ Roberts about ways to make the financial system more stable. In particular, Admati explores the implications of higher capital requirements. She argues that current policies subsidize leverage--high levels of debt relative to equity--and that current levels of leverage increase the vulnerability of the system to swings in asset prices. She then gives her response to criticisms of higher equity levels. The conversation concludes with a discussion of the role of academic economists and finance professors as advocates for various policies.

Hennessey on the Debt Ceiling and the Budget Process

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 25 Jul 2011 06:30:00 EST

Keith Hennessey of Stanford University's Hoover Institution talks with EconTalk host Russ Roberts about the debt ceiling and the budget process. Hennessey, who worked for Senate Majority Leader Trent Lott on budget issues in the late 1990s, explains the politics of the debt ceiling and the budget process. Using his past experience as a staffer, Hennessey gives those of us on the outside a window into what is actually going on in the hallways, who has power, and how information flows up and down in the chain of constituents, members, party leaders. The conversation closes with Hennessey's best guess of which outcomes of the current negotiations are most likely and why.

Taylor on Fiscal and Monetary Policy

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 18 Jul 2011 06:30:00 EST

John Taylor of Stanford University talks with EconTalk host Russ Roberts about the state of the economy and the prospects for recovery. Taylor argues that the design of the fiscal stimulus was ineffective and monetary policy, so-called quantitative easing, has also failed to improve matters. He argues for a return to fiscal, monetary, and regulatory normalcy as the best hope for economic improvement. The conversation concludes with a discussion of the impact of the current crisis on economics education.

Banerjee on Poverty and Poor Economics

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 11 Jul 2011 06:30:00 EST

Abhijit Banerjee of MIT talks with EconTalk host Russ Roberts about Banerjee's book (co-authored with Esther Duflo), Poor Economics. The conversation begins with how randomized control trials (a particular kind of social experiment) have been used to measure the effectiveness of various types of aid to the poor. Banerjee goes on to discuss hunger, health, and education--the challenges in each area and what we have learned about what works and what does not. The conversation closes with a discussion of the role of the labor market in the private sector.

Skeel on Bankruptcy and the Auto Industry Bailout

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 04 Jul 2011 06:30:00 EST

David Skeel of the University of Pennsylvania Law School talks with EconTalk host Russ Roberts about bankruptcy and the government bailout of the auto industry. Skeel argues that the bailout damaged the rule of law by not allowing a bankruptcy procedure to take its course. Skeel speculates on how bankruptcy for GM and Chrysler might have proceeded. He also argues that the costs to the taxpayer of the bailout have been underestimated. The conversation concludes with a general discussion of the effects of bankruptcy.

Otteson on Adam Smith

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 27 Jun 2011 06:30:00 EST

James Otteson of Yeshiva University talks with EconTalk host Russ Roberts about Adam Smith. The conversation begins with a brief sketch of David Hume and his influence on Smith and then turns to the so-called Adam Smith problem--the author of The Wealth of Nations appears to have a different take on human nature than the author of The Theory of Moral Sentiments. Smith worked on both books throughout his life, yet their perspectives seem so different. Otteson argues that the books focus on social behavior and the institutions that sustain that behavior--market transactions in The Wealth of Nations and moral behavior in The Theory of Moral Sentiments. Both books use the idea of emergent order to explain the evolution of both kinds of social behavior and social institutions. The conversation concludes with a discussion of what Smith got right and wrong.

Munger on Exchange, Exploitation and Euvoluntary Transactions

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 20 Jun 2011 06:30:00 EST

Mike Munger of Duke University talks with EconTalk host Russ Roberts about the psychology, sociology, and economics of buying and selling. Why are different transactions that seemingly make both parties better off frowned on and often made illegal? In theory, all voluntary transactions should make both parties better off. But Munger argues that some transactions are more voluntary than others. Munger lists the attributes of a truly voluntary transaction, what he calls a euvoluntary transaction and argues that when transactions are not euvoluntary, they may be outlawed or seen as immoral. Related issues that are discussed include price gouging after a natural disaster, blackmail, sales of human organs, and the employment of low-wage workers.

Buchholz on Competition, Stress, and the Rat Race

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 13 Jun 2011 06:30:00 EST

Todd Buchholz, author of Rush: Why You Need and Love the Rat Race, talks with EconTalk host Russ Roberts about the ideas in the book. Buchholz argues that competition and striving for excellence is part of our evolutionary inheritance. He criticizes attempts to remake human beings into gentle creatures who long to return to an Eden-like serenity. He argues that it is action, creativity, and planning for the future that makes us happy. The discussion includes the implications of our interest in the future for theater and story-telling.

Eichengreen on the Dollar and International Finance

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 06 Jun 2011 06:30:00 EST

Barry Eichengreen of University of California, Berkeley and author of Exorbitant Privilege talks with EconTalk host Russ Roberts about the history and importance of the dollar as the dominant international currency. Eichengreen explains the advantages to the United States of the dollar's dominance, the historical circumstances that led to its dominance, and the likelihood that the dollar might be supplanted by a competitor. Along the way they discuss China's currency policy, the state of U.S. monetary policy, the causes of the crisis, the risk of inflation in the United States, and the future of the Federal Reserve.

Easterly on Benevolent Autocrats and Growth

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 30 May 2011 06:30:00 EST

William Easterly of New York University talks with EconTalk host Russ Roberts about the oft-heard claim that poor countries led by autocrats grow faster than poor countries that are democratic. Drawing on a recent paper, "Benevolent Autocrats," Easterly argues that while some autocracies do indeed grow very quickly, a much greater number do not. Yet, the idea that the messiness of democracy is inferior to a dictatorship remains seductive. Easterly gives a number of arguments for the perennial appeal of autocracy as a growth strategy. The conversation closes with a discussion of the limitations of our knowledge about growth and where that leaves policymakers.

Harford on Adapt and the Virtues of Failure

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 23 May 2011 06:30:00 EST

Tim Harford, author and journalist, talks with EconTalk host Russ Roberts about Adapt, Harford's book on the virtues of failure and the trial and error process. Harford argues that success is more likely when there is experimentation and trial and error followed by adapting, rather than following a top-down, ex ante plan driven by expertise. The conversation looks at the what war can teach us about information, knowledge, and planning, the challenge of admitting mistakes, and the implications of trial and error for our daily lives.

Byers on the Blind Spot, Science, and Uncertainty

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 16 May 2011 06:30:00 EST

William Byers of Canada's Concordia University and author of The Blind Spot talks with EconTalk host Russ Roberts about the nature of knowledge, science and mathematics. Byers argues that there is an inherent uncertainty about science and our knowledge that is frequently ignored. Byers contrasts a science of wonder with a science of certainty. He suggests that our knowledge of the physical world will always be incomplete because of the imperfection of models and human modes of thought relative to the complexity of the physical world. The conversation also looks at the implications of these ideas for teaching science and social science.

Caplan on Parenting

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 09 May 2011 06:30:00 EST

Bryan Caplan of George Mason University and EconLog talks with EconTalk host Russ Roberts about the ideas in Caplan's new book, Selfish Reasons to Have More Kids. Caplan argues that parents spend too much time trying to influence how their kids will turn out as adults. Using research on twins and adopted children, Caplan argues that nature dominates nurture and that parents have little lasting influence on many aspects of their children's lives. He concludes that parents should spend less time and energy trying to influence their children. If parenting takes less time, then have more kids, says Caplan. The conversation concludes with a discussion of whether a larger population is bad for the planet.

Papola on the Keynes Hayek Rap Videos

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 02 May 2011 06:30:00 EST

John Papola of Emergent Order talks with EconTalk host Russ Roberts about their collaboration creating rap videos based on the ideas of John Maynard Keynes and F. A. Hayek. Their first was "Fear the Boom and Bust" which was released January 25, 2010. This past week they released "Fight of the Century." The latest video discusses the overarching differences between the philosophies of Keynes and Hayek and their views on whether government spending promotes recovery from an economic downturn and whether it leads to prosperity. In this conversation, Papola and Roberts discuss some of the underlying ideas in the video--whether the military spending of World War II ended the Great Depression, the debate between Malthus and Say and their influence on Keynes and Hayek, and the fundamental differences between Keynes and Hayek in how economic prosperity is created.

Rubinstein on Game Theory and Behavioral Economics

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 25 Apr 2011 06:30:00 EST

Ariel Rubinstein of Tel Aviv University and New York University talks with EconTalk host Russ Roberts about the state of game theory and behavioral economics, two of the most influential areas of economics in recent years. Drawing on his Afterword for the 60th anniversary edition of Von Neumann and Morgenstern's Theory of Games and Economic Behavior, Rubinstein argues that game theory's successes have been quite limited. Rubinstein, himself a game theorist, argues that game theory is unable to yield testable predictions or solutions to public policy problems. He argues that game theorists have a natural incentive to exaggerate its usefulness. In the area of behavioral economics, Rubinstein argues that the experimental results (which often draw on game theory) are too often done in ways that are not rigorous. The conversation concludes with a plea for honesty about what economics can and cannot do.

Munger on Microfinance, Savings, and Poverty

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 18 Apr 2011 06:30:00 EST

Mike Munger of Duke University talks with EconTalk host Russ Roberts about microfinance. Munger argues that cultural forces make it difficult for some families to save, and the main value of microfinance is to allow a higher level of savings. Families are willing to save via microfinance even though returns can be negative. Munger argues that this counterintuitive result is possible when other means of savings are unavailable. Munger also discusses microfinance that is used for entrepreneurship and the potential role for microfinance in development.

Rodrik on Globalization, Development, and Employment

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 11 Apr 2011 06:30:00 EST

Dani Rodrik of Harvard University talks with EconTalk host Russ Roberts about trade, the labor market, and trade policy. Drawing on a recent paper with Margaret McMillan on trade and productivity, Rodrik argues that countries have very differing abilities to respond to increases in productivity that allow production to expand using fewer workers in a particular sector. When workers are displaced by productivity increases, what is their next best alternative? Rodrik discusses how this varies across countries and policies that might improve matters. He argues that poor countries should subsidize new products as a way of overcoming uncertainty and externalities from new ventures.

Andresen on BitCoin and Virtual Currency

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 04 Apr 2011 06:30:00 EST

Gavin Andresen, Principal of the BitCoin Virtual Currency Project, talks with EconTalk host Russ Roberts about BitCoin, an innovative attempt to create a decentralized electronic currency. Andresen explains the origins of BitCoin, how new currency gets created, how you can acquire BitCoins and the prospects for BitCoin's future. Can it compete with government-sanctioned money? How can users trust it? What threatens BitCoin and how might it thrive?

Vincent Reinhart on Bear Stearns, Lehman Brothers, and the Financial Crisis

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 28 Mar 2011 06:30:00 EST

Vincent Reinhart of the American Enterprise Institute talks with EconTalk host Russ Roberts about the government interventions and non-interventions into financial markets in 2008. Conventional wisdom holds that the failure to intervene in the collapse of Lehman Brothers precipitated the crisis. Reinhart argues that the key event occurred months earlier when the government engineered a shotgun marriage of Bear Stearns to JP Morgan Chase by guaranteeing billion of Bear's assets and sending a signal to creditors that risky lending might come without a cost. Reinhart argues that there is a wider menu of choices available to policy makers than simply rescue or no rescue, and that it is important to take action before the crisis comes to a head.

Coyle on the Economics of Enough

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 21 Mar 2011 06:30:00 EST

Diane Coyle, author of The Economics of Enough, talks with EconTalk host Russ Roberts about the future and the ideas in her book. Coyle argues that the financial crisis, the entitlement crisis, and climate change all reflect a failure to deal with the future appropriately. The conversation ranges across a wide range of issues including debt, the financial sector, and the demographic challenges of an aging population that is promised generous retirement and health benefits. Coyle argues for better measurement of the government budget and suggests ways that the political process might be made more effective.

Townsend on Development, Poverty, and Financial Institutions

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 14 Mar 2011 06:30:00 EST

Robert Townsend of MIT and the Consortium on Financial Systems and Poverty talks with EconTalk host Russ Roberts about development and the role of financial institutions in growth. Drawing on his research, particularly his surveys of households in Thailand, Townsend argues that both informal networks and arrangements and formal financial institutions play important roles in dealing with risk. Along the way, he discusses the role of microfinance in poor countries and the potential for better financial arrangements to lead to higher growth and the accumulation of wealth.

Dyson on Heresy, Climate Change, and Science

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 07 Mar 2011 06:30:00 EST

Freeman Dyson of the Institute for Advanced Study in Princeton talks with EconTalk host Russ Roberts about science, his career, and the future. Dyson argues for the importance of what he calls heresy--challenging the scientific dogmas of the day. Dyson argues that our knowledge of climate science is incomplete and that too many scientists treat it as if it were totally understood. He reflects on his childhood and earlier work, particularly in the area of space travel. And he says that biology is the science today with the most exciting developments.

George Will on America, Politics, and Baseball

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 28 Feb 2011 06:30:00 EST

Author and syndicated columnist George Will talks with EconTalk host Russ Roberts about the state of the country, the nature of politics, and at the end, a little about baseball. The conversation begins with Will discussing his career and how someone with a Ph.D. from Princeton got involved in politics and then writing. Will then discusses the current political environment and how little some things have changed in politics. Other topics include the future of journalism and Will's predictions for how the Chicago Cubs will fare this season (4th place).

Acemoglu on Inequality and the Financial Crisis

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 21 Feb 2011 06:30:00 EST

Daron Acemoglu of MIT talks with EconTalk host Russ Roberts about the role income inequality may have played in creating the financial crisis. Raghuram Rajan in his book, Fault Lines, argues that growing income inequality in the last part of the 20th century created a political demand for redistribution and various policy changes. This in turn created the push for higher home ownership rates and led to the distortions of the housing market that in turn led to excessive risk-taking in the financial market. Acemoglu suggests a simpler story where the financial sector through its political influence distorted the rules of the game, benefiting executives in the industry, which in turn led to outsized rewards and ultimate instability in the financial industry. The conversation discusses ways of distinguishing between these two arguments and what might be done to change the incentives of politicians.

Cowen on the Great Stagnation

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 14 Feb 2011 06:30:00 EST

Tyler Cowen of George Mason University and author of the e-book The Great Stagnation talks with EconTalk host Russ Roberts about the ideas in the book. Cowen argues that in the last four decades, the growth in prosperity for the average family has slowed dramatically in the United States relative to earlier decades and time periods. Cowen argues that this is the result of a natural slowing in innovation and that we expect too much growth relative to what is possible. Cowen expects improvements in the rate of growth in the future when new areas of research yield high returns. The conversation includes a discussion of the implications of Cowen's thesis for politics and public policy.

Kling on Patterns of Sustainable Specialization and Trade

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 07 Feb 2011 06:30:00 EST

Arnold Kling of EconLog talks with EconTalk host Russ Roberts about a new paradigm for thinking about macroeconomics and the labor market. Kling calls it PSST--patterns of sustainable specialization and trade. Kling rejects the Keynesian approach that emphasizes shortfalls in aggregate demand arguing that the aggregate demand approach masks the underlying complexity of the recalculations that periodically take place in a dynamic economy. Instead, Kling invokes the mutual exploration between entrepreneurs and workers for profitable opportunities that pay well using the workers' skills. This exploration takes time, involves trial and error, and can have false starts because businesses sometimes fail or employees are difficult to find or match with employment opportunities. Kling applies these ideas to the current crisis to explain why labor market recovery is so sluggish and what might policies might improve matters.

Deer on Autism, Vaccination, and Scientific Fraud

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 31 Jan 2011 06:30:00 EST

Investigative journalist Brian Deer talks with EconTalk host Russ Roberts about Deer's seven years of reporting and legal issues surrounding the 1998 article in The Lancet claiming that the MMR vaccine causes autism and bowel problems. Deer's dogged pursuit of the truth led to the discovery that the 1998 article was fraudulent and that the lead author had hidden payments he received from lawyers to finance the original study. In this podcast, Deer describes how he uncovered the truth and the legal consequences that followed. The conversation closes with a discussion of the elusiveness of truth in science and medicine.

Boudreaux on Monetary Misunderstandings

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 17 Jan 2011 06:30:00 EST

Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts on some of the common misunderstandings people have about prices, money, inflation and deflation. They discuss what is harmful about inflation and deflation, the importance of expectations and the implications for interest rates and financial institutions.

Fazzari on Stimulus and Keynes

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 24 Jan 2011 06:30:00 EST

Steve Fazzari of Washington University in St. Louis talks with EconTalk host Russ Roberts about the economics of Keynesian stimulus. They discuss the stimulus package passed in February 2009 and whether it improved the economy and created jobs. How should claims about its impact be evaluated? What can we know as economists about causal relationships in a complex world? The conversation includes a discussion of the underlying logic of Keynesian stimulus and the effect of the financial crisis on economic research and teaching.

Caldwell on Hayek

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 10 Jan 2011 06:30:00 EST

Bruce Caldwell of Duke University and the General Editor of the Collected Works of F. A. Hayek, talks with EconTalk host Russ Roberts about Hayek, his life, his ideas, his books, and articles. The conversation covers Hayek's intellectual encounters with Keynes, Hayek's role in the socialist calculation debate, Hayek's key ideas, and a discussion of which of Hayek's works are most accessible.

Hanson on the Technological Singularity

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 03 Jan 2011 06:30:00 EST

Robin Hanson of GMU talks with EconTalk host Russ Roberts about the idea of a technological singularity--a sudden, large increase in the rate of growth due to technological change. Hanson argues that it is plausible that a change in technology could lead to world output doubling every two weeks rather than every 15 years, as it does currently. Hanson suggests a likely route to such a change is to port the human brain into a computer-based emulation. Such a breakthrough in artificial intelligence would lead to an extraordinary increase in productivity creating enormous wealth and radically changing the returns to capital and labor. The conversation looks at the feasibility of the process and the intuition behind the conclusions. Hanson argues for the virtues of such a world.

Boettke on Mises

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 27 Dec 2010 06:30:00 EST

Pete Boettke of George Mason University talks with EconTalk host Russ Roberts about the life, work, and legacy of Ludwig von Mises. Boettke outlines Mises's most important contributions to economics--business cycle theory, the socialism/calculation debate, and the application of economics to a wide range of behavior beyond the financial. Boettke discusses how Mises fits into the Austrian tradition and how he influenced scholars who came after him. The conversation closes with a discussion of Mises's most important works and suggests which books and articles are most accessible to a beginner who wants to explore Mises's ideas.

Nocera on the Crisis and All the Devils Are Here

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 20 Dec 2010 06:30:00 EST

Joe Nocera, New York Times columnist and co-author with Bethany McLean of All the Devils Are Here, talks with EconTalk host Russ Roberts about the origins of the financial crisis. Drawing on his book, Nocera identifies many people he considers devils for contributing to the crisis and a few angels who tried but failed to stop it. The discussion covers the history and development of securitization and the peculiar incentives created by securitization and the relative lack of regulation of the securitization process. The conversation also includes a discussion of whether past bailouts contributed to the crisis.

Abdallah on Hair and Running a Small Business

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 13 Dec 2010 06:30:00 EST

Wafaya Abdallah of Oasis Hair Salon in Rockville, Maryland talks with EconTalk host Russ Roberts about the challenges and rewards of running a small business. Abdallah discusses her career path from would-be lawyer to owning her own salon with many employees and a management style that is different from the traditional one in her business. She discusses the economics of hair-cutting, how she motivates her employees to be part of the team, the openness of the salon's financial situation, the educational training she offers, and the ways she works with employees to motivate and inspire. You'll also learn how much her scissors cost.

Selgin on the Fed

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 06 Dec 2010 06:30:00 EST

George Selgin, of the University of Georgia, talks with EconTalk host Russ Roberts about whether the creation of the Federal Reserve in 1913 has been a boon or a bust for the U.S. economy. Drawing on a recent paper by William Lastrapes and Lawrence White recently released by the Cato Institute, "Has the Fed Been a Failure?" Selgin argues that the Fed has done poorly at two missions often deemed to justify a central bank: lender of last resort and smoother of the business cycle. Selgin makes the case that avoiding bank runs and bank panics does not require a central bank and that contrary to received wisdom, it is hard to argue that the Fed has smoothed the business cycle. Additional topics discussed include whether the Fed has the information to do its jobs well, the role of the Fed in moral hazard, and the potential for the gold standard to outperform the Fed.

Kelly on Technology and What Technology Wants

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 29 Nov 2010 06:30:00 EST

Kevin Kelly, author of What Technology Wants, talks with EconTalk host Russ Roberts about technology and the ideas in the book. Kelly argues that technology is best understood as an emergent system subject to the natural forces underpinning all emergent systems. He argues that any technology creates benefits and costs but that the benefits typically outweigh the costs (perhaps by a small amount) leading to human progress. This is a wide-ranging conversation that includes discussion of the Unabomber, the Amish, the survival of human knowledge, and the seeming inevitability of the advancement of knowledge. The conversation closes with a discussion of the potential for technology to make an enormous leap in self-organization.

Phillipson on Adam Smith

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 22 Nov 2010 06:30:00 EST

Nicholas Phillipson, author of Adam Smith: An Enlightened Life, talks to EconTalk host Russ Roberts about the life of Adam Smith. Drawing on his recent biography of Smith, Phillipson discusses his intellectual roots, his intellectual journey, and what we know of his influences and achievements. Phillipson argues that Smith was shy, ambitious and very well-liked. He highlights the influence of Francis Hutcheson and David Hume on Smith's thinking. Phillipson gives his take on how the ideas of The Theory of Moral Sentiments mesh with The Wealth of Nations and argues that the Theory of Moral Sentiments was a response to Mandeville and Rousseau.

Robert Frank on Inequality

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 15 Nov 2010 06:30:00 EST

Robert Frank of Cornell University talks with EconTalk host Russ Roberts about inequality. Is there a role for public policy in mitigating income inequality? Is such intervention justified or effective? The conversation delves into both the philosophical and empirical evidence behind differing answers to these questions. Ultimately, Frank argues for a steeply rising tax rate on consumption that would reduce disparities in consumption. This is a lively back-and-forth about a very timely topic.

Don Boudreaux on China, Currency Manipulation, and Trade Deficits

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 08 Nov 2010 06:30:00 EST

Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts about Chinese exchange rate policy and the claim that China keeps the value of its currency artificially low in order to boost exports to the United States and reduce U.S. exports. Boudreaux argues that regardless of whether China is manipulating its currency, inexpensive Chinese imports are generally good for the United States. He also points out that manufacturing output in the United States has been thriving despite claims that the United States is being "hollowed out." The conversation also includes a discussion of whether Chinese holdings of U.S. Treasuries threaten the United States.

Quiggin on Zombie Economics

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 01 Nov 2010 06:30:00 EST

John Quiggin of Crooked Timber and the author of Zombie Economics talks with EconTalk host Russ Roberts about ideas in economics that should stay dead and buried. Quiggin argues that many economic theories such as the Great Moderation, the efficient markets hypothesis and others have been discredited by recent events and should be relegated to the graveyard. Roberts challenges some of Quiggin's claims and wonders whether proposed alternatives might do even worse than the policies Quiggin is criticizing. Much of the conversation focuses on the role of government in the financial sector and how that might be improved going forward.

Hazlett on Apple vs. Google

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 25 Oct 2010 06:30:00 EST

Thomas Hazlett of George Mason University talks with EconTalk host Russ Roberts about the growing rivalry between Apple and Google. It is commonly argued that Apple with its closed platform and tight control from the top via Steve Jobs is making the same mistake it made in its earlier competition with Microsoft. Google on the other hand is lauded for its open platform and leveraging of a large number of suppliers for its Android phone, for example. Hazlett, drawing on his recent article in the Financial Times, argues that these arguments fail to recognize the different competitive advantages of Apple and Google and the implications of those advantages for the companies' respective strategies. The conversation concludes with a discussion of the move to application-based web browsing such as Facebook, Twitter, and the implications for Google.

Ridley on Trade, Growth, and the Rational Optimist

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 18 Oct 2010 06:30:00 EST

Matt Ridley, author of The Rational Optimist, talks with EconTalk host Russ Roberts about why he is optimistic about the future and how trade and specialization explain the evolution of human development over the millennia. Ridley argues that life is getting better for most of the people on earth and that the underlying cause is trade and specialization. He discusses the differences between Smith's and Ricardo's insights into trade and growth and why despite what seems to be strong evidence, people are frequently pessimistic about the future. Ridley also addresses environmental issues.

Irwin on the Great Depression and the Gold Standard

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 11 Oct 2010 06:30:00 EST

Douglas Irwin of Dartmouth College talks with EconTalk host Russ Roberts about the role the gold standard played in the Great Depression. Irwin argues that France systematically accumulated large amounts of gold in the late 1920s and 1930s, imposing massive deflation on the rest of the world. Drawing on a recent paper of his, Irwin argues that France's role in worldwide deflation was greater than that of the United States and played a significant role in the economic contraction that followed.

Caplan on Immigration

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 04 Oct 2010 06:30:00 EST

Bryan Caplan of George Mason University and EconLog blogger talks with EconTalk host Russ Roberts about immigration. Caplan takes on the common arguments against open borders and argues that they are either exaggerated or can be overcome while still allowing more immigration than is currently allowed in the United States.

Greenberg on Depression, Addiction, and the Brain

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 27 Sep 2010 06:30:00 EST

Gary Greenberg, psychologist and author of The Noble Lie and Manufacturing Depression, talks with EconTalk host Russ Roberts about the nature of addiction, depression and mental illness. Drawing on ideas in the two books, Greenberg argues that there are strong monetary incentives to define various problems as illnesses that psychiatrists "cure" with drugs. Greenberg argues that this distorts science and has strong impacts, good and bad, on how we view ourselves and the challenges of life. The conversation looks at the scientific basis for addiction and the role brain chemistry in depression. The conversation closes with a discussion of Greenberg's correspondence with the Unabomber.

Richard Epstein on Regulation

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 20 Sep 2010 06:30:00 EST

Richard Epstein of New York University and Stanford University's Hoover Institution talks with EconTalk host Russ Roberts about the current state of the economy, particularly the regulatory climate. Epstein argues the current level of regulation is producing unusually high costs. He digs more deeply into the pharmaceutical industry and discusses various regulations and alternative ways to encourage drug safety and innovation.

de Botton on the Pleasures and Sorrows of Work

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 13 Sep 2010 06:30:00 EST

Author Alain de Botton talks with EconTalk host Russ Roberts about his latest book, The Pleasures and Sorrows of Work. How has the nature of work changed with the increase in specialization? Why is the search for meaningful work a modern phenomenon? Has the change in the workplace changed parenting? Why does technology become invisible? These are some of the questions discussed by de Botton in a wide-ranging discussion of the modern workplace and the modern worker.

Kling on Knowledge, Power, and Unchecked and Unbalanced

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 06 Sep 2010 06:30:00 EST

Arnold Kling of EconLog and author of Unchecked and Unbalanced, talks with EconTalk host Russ Roberts about the book and the relationship between knowledge and power. In a modern economy, specialization has increased and knowledge is increasingly dispersed. But political power has become more concentrated and fails to exploit the potential for decentralization. Kling discusses these trends and the potential for decentralization of power under different policies.

Daniel Pink on Drive, Motivation, and Incentives

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 30 Aug 2010 06:30:00 EST

Daniel Pink, author of Drive, talks with EconTalk host Russ Roberts about drive, motivation, compensation, and incentives. Pink discusses the implications of using monetary rewards as compensation in business and in education. Much of the conversation focuses on the research underlying the book, Drive, research from behavioral psychology that challenges traditional claims by economists on the power of monetary and other types of incentive. The last part of the conversation turns toward education and the role of incentives in motivating or demotivating students.

Munger on Private and Public Rent-Seeking (and Chilean Buses)

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 23 Aug 2010 06:30:00 EST

Mike Munger of Duke University talks with EconTalk host Russ Roberts about private and public rent-seeking. When firms compete for either private profit opportunities or government contracts, there are inevitably firms or people who spend resources but end up earning little or nothing. What are the differences, if any between these two forms of competition? How do they related to competitions that award prizes for discovering new technologies? The conversation begins with a discussion of a recent trip Munger took to Chile where he observed the current state of the Chilean bus system, a topic he has discussed in the past.

Kennedy on the Great Depression and the New Deal

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 16 Aug 2010 06:30:00 EST

David Kennedy of Stanford University and the author of Freedom from Fear talks with EconTalk host Russ Roberts about the Great Depression and its political and economic relevance. Kennedy talks about the economic policies of Hoover and Roosevelt, and how the historical narrative was shaped and evolved over the decades. The conversation concludes with Kennedy's thoughts on the nature and value of history.

Laughlin on the Future of Carbon and Climate

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 09 Aug 2010 06:30:00 EST

Robert Laughlin of Stanford University and the 1998 co-recipient of the Nobel Prize in Physics talks with EconTalk host Russ Roberts about energy use and the future of the earth's climate. Drawing on his forthcoming book on energy, Laughlin predicts that we will continue to use cars and planes and electricity long after coal and petroleum are exhausted and speculates as to how that might play out in the future. The conversation concludes with discussions of other concerns of Laughlin's--the outlawing via legislation and taboo of certain forms of knowledge, and the practice of reductionism rather than emergence in the physical sciences.

Brady on the State of the Electorate

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 02 Aug 2010 06:30:00 EST

David Brady of Stanford University talks with EconTalk host Russ Roberts about the state of the electorate and what current and past political science have to say about the upcoming midterm elections. Drawing on his own survey work and that of others, Brady uses current opinion polls to predict a range of likely outcomes in the House and Senate in November. He then discusses the role of recent health care legislation in the upcoming election as well as Obama's approval ratings. The conversation concludes with Brady's assessment of how Congress might deal with the demographic challenge facing entitlement programs.

Robert Service on Trotsky

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 26 Jul 2010 06:30:00 EST

Robert Service of Stanford University's Hoover Institution and the University of Oxford talks with EconTalk host Russ Roberts about the life and death of Leon Trotsky. Based on Service's biography of Trotsky, the conversation covers Trotsky's influence on the Russian Revolution, his influence on policy alongside Lenin, his expulsion from Soviet Union in 1928 and his murder in 1940 by Stalin's order.

Taylor on the State of the Economy

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 19 Jul 2010 06:30:00 EST

John Taylor of Stanford University talks with EconTalk host Russ Roberts about the state of the economy. Is the economy recovering? What policies have helped and hurt? Taylor gives his views on both monetary and fiscal policy including the stimulus package passed last year, and current Fed policy. The conversation closes with a discussion of the global economy, particularly Poland and its recent success in avoiding recession.

Gregory on Politics, Murder, and Love in Stalin's Kremlin

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 12 Jul 2010 06:30:00 EST

Paul Gregory of the University of Houston and a Research Fellow at Stanford University's Hoover Institution talks with EconTalk host Russ Roberts about Nikolai Bukharin's power struggle with Stalin and Bukharin's romance with Anna Larina, who was 26 years younger than Bukharin. Based on Gregory's book, Politics, Murder, and Love in Stalin's Kremlin, the conversation explores the career and personal life of Bukharin and how his career and personal life intersected. Bukharin was one of the key founders of the Bolshevik Revolution that led to the creation of the Soviet Union. In the late 1920s, he disagreed with Stalin's policy of collectivization. Stalin ruthlessly pursued him, eventually had him arrested, tried and convicted in the one of the infamous Show Trials, and executed. Anna, his wife, is then sentenced to the Gulag and later exiled. The power and poignancy of the story lies in Bukharin's refusal to believe that his old friend Stalin is out to kill him. Gregory also discusses Bukharin's economic policies and whether Stalin or someone like him was inevitable.

Kling on the Unseen World of Banking, Mortgages, and Government

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 05 Jul 2010 06:30:00 EST

Arnold Kling of EconLog talks with EconTalk host Russ Roberts about the weird world of banking. Why do mortgages look the way they do? What do banks contribute to economic activity? How does regulation and legislation change the structure of what banks do? What would banks look like and the housing market look like if government were less involved? Kling discusses these questions and more including the hidden subsidies built into the current structure of the mortgage market. The conversation is an imaginative exercise in the microeconomics of finance and credit.

Caplan on Hayek, Richter, and Socialism

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 28 Jun 2010 06:30:00 EST

Bryan Caplan of George Mason University and blogger at EconLog talks to EconTalk host Russ Roberts about two books: Eugene Richter's Pictures of the Socialistic Future and F. A. Hayek's The Road to Serfdom. Both books warn against the dangers of socialism. Pictures of a Socialistic Future, published in 1891 is a dystopian novel imagining what life would be like after a socialist revolution. The Road to Serfdom, published in 1944, explores the links between economic freedom and political freedom and the inherent similarities between communism and fascism. Both books look at the German roots of centralized planning and the nature of the people who rise to power when the State is powerful. The conversation includes discussion of the these topics as well as the rule of law and the amount of state control of the economy in Nazi Germany.

Sumner on Growth and Economic Policy

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 21 Jun 2010 06:30:00 EST

Scott Sumner of Bentley University and the blog, The Money Illusion, talks with EconTalk host Russ Roberts about the last 30 years of economic policy and macroeconomic success and failure. Sumner argues that there was a neoliberalism revolution beginning in the 1980s around the world, an era of deregulation, privatization and falling marginal tax rates. Sumner argues that the states that liberalized the most had the most successful economic results. Roberts argues that it is difficult to assess the independent effect of various policy changes and points to many areas--in the United States at least--where government involvement increased in important parts of the economy, and Sumner responds. Sumner also talks about the importance of culture in economic performance.

Blakley on Fashion and Intellectual Property

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 14 Jun 2010 06:30:00 EST

Johanna Blakley of the University of Southern California talks with EconTalk host Russ Roberts about the fashion industry and the role of intellectual property. In the fashion industry there is limited protection for innovative designs and as a result, copying is rampant. Despite the ease of copying, innovation is quite strong in the industry and there is a great deal of competition. Topics discussed include the role of the street in generating new designs, the role of fashion in our lives, and whether the host of EconTalk has any hope of being fashionable. The conversation concludes with a discussion of the Grand Intervention, an urban park design competition, and the potential of Second Life for studying social trends.

Okrent on Prohibition and His Book, Last Call

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 07 Jun 2010 06:30:00 EST

Daniel Okent, author of Last Call: The Rise and Fall of Prohibition, talks about the book with EconTalk host Russ Roberts. They discuss how the 18th Amendment banning the manufacture, sale, and transport of intoxicating beverages came to pass in 1920, what life was like while it was in force, and how the Amendment came to be repealed in 1934. Okrent discusses how Prohibition became entangled with the suffrage movement, the establishment of the income tax, and anti-immigration sentiment. They also discuss the political economy of prohibition, enforcement, and repeal--the quintessential example of bootleggers and baptists.

Menand on Psychiatry

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 31 May 2010 06:30:00 EST

Louis Menand of Harvard University talks with EconTalk host Russ Roberts about the state of psychiatry. Drawing on a recent article of his in the New Yorker, Menand talks about the state of knowledge in psychiatry and the scientific basis for making conclusions about mental illness and various therapies. Menand argues that the research record shows little difference between the effectiveness of psychopharmacology and talk therapies of various kinds in fighting depression. Neither is particularly successful in any one case. Other topics that are discussed include the parallels between economics and psychiatry in assessing causation, the diminished role of Freudianism in modern psychiatry, and the range of issues involved in using medication to avoid pain and hardship.

Belsky on Journalism, Editing, and Trivia

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 24 May 2010 06:30:00 EST

Gary Belsky, Editor-in-Chief at ESPN The Magazine, talks with EconTalk host Russ Roberts about his career path in journalism and the day-to-day life of editing a major American magazine. Belsky discusses some of the lessons of his early career as a business journalist. The discussion then turns to the magazine, its creativity and the perks and challenges of editing the magazine, managing the staff, and chatting up Serena Williams. The conversation closes with a discussion of Belsky's theory of trivia and some of his favorite trivia questions.

Roberts on the Crisis

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 17 May 2010 06:30:00 EST

Russ Roberts, host of EconTalk, discusses his paper, "Gambling with Other People's Money: How Perverted Incentives Created the Financial Crisis." Roberts reflects on the past eighteen months of podcasts on the crisis, and then turns to his own take, a narrative that emphasizes the role of government rescues of creditors and the incentives this created for imprudent lending. He also discusses U.S. housing policy, particularly the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac and how the government's implicit guarantee of lenders to the GSE's interacted with housing policy to increase housing prices. This in turn, Roberts argues, helped create the subprime market, created mainly by private investors. The episode closes with some of Roberts's doubts about his narrative.

Leamer on the State of Econometrics

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 10 May 2010 06:30:00 EST

Ed Leamer of UCLA talks with EconTalk host Russ Roberts about the state of econometrics. He discusses his 1983 article, "Let's Take the 'Con' Out of Econometrics" and the recent interest in natural experiments as a way to improve empirical work. He also discusses the problems with the "fishing expedition" approach to empirical work. The conversation closes with Leamer's views on macroeconomics, housing, and the business cycle and how they have been received by the profession.

Taleb on Black Swans, Fragility, and Mistakes

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 03 May 2010 06:30:00 EST

Nassim Taleb, author of The Black Swan and Fooled by Randomness, talks with EconTalk host Russ Roberts about his latest thoughts on robustness, fragility, debt, insurance, uncertainty, exercise, moral hazard, knowledge, and the challenges of fame and fortune.

Romer on Charter Cities

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 26 Apr 2010 06:30:00 EST

Paul Romer of Stanford University talks with EconTalk host Russ Roberts about charter cities, Romer's idea for helping the poorest of the poor around the world. Romer envisions a city where the rules about property and safety and contract and so on are rules that allow individuals to flourish in an urban setting in contrast to the cities they live in now where so many aspects of economic and personal life are dysfunctional. Charter cities would be havens for the world's poor and could be created on uninhabited land in either rich or poor countries. This concept raises many difficult practical questions--some of them are discussed here along with how Romer came to be interested in creating the concept and how he hopes to bring it to reality.

Munger on Love, Money, Profits, and Non-profits

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 19 Apr 2010 06:30:00 EST

Mike Munger of Duke University talks with EconTalk host Russ Roberts about the world of profit, money, love, gifts, and incentives. What motivates people, self-interest or altruism? Both obviously. But how do these forces interact with each other? Does relying on one always provide a stronger incentive than the other? Do charities, for-profit businesses or government agencies do a better job providing a good or service? Munger and Roberts have a wide-ranging discussion across these issues including a section where they discuss whether Christmas gift-giving and gift-giving in general is inefficient.

Ravitch on Education

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 12 Apr 2010 06:30:00 EST

Diane Ravitch of NYU talks with EconTalk host Russ Roberts about the ideas in her new book, The Death and Life of the Great American School System: How Testing and Choice Are Undermining Education. Ravitch argues that the two most popular education reform movements, accountability and choice, have had unintended consequences that have done great harm to the current generation of students. She argues that the accountability and testing provisions in legislation like No Child Left Behind and similar reforms have actually corrupted the testing process, taken time away from subjects other than math and reading, and failed even to boost success in math and reading. She argues that the empirical record has provided little evidence that school choice as it has been implemented has boosted achievement. The discussion closes with a discussion of what reforms might indeed make a difference.

Benkler on Net Neutrality, Competition, and the Future of the Internet

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 05 Apr 2010 06:30:00 EST

Yochai Benkler of Harvard University talks to EconTalk host Russ Roberts about net neutrality, access to the internet, and innovation. Benkler argues in favor of net neutrality and government support of broadband access. He is skeptical of the virtues of new technology (such as the iPad) fearing that they will lead to less innovation. The conversation closes with a discussion of commons-based peer production--open source software and Wikipedia.

De Vany on Steroids, Baseball, and Evolutionary Fitness

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 29 Mar 2010 06:30:00 EST

Arthur De Vany, of the University of California, Irvine, and creator of Evolutionary Fitness, talks with EconTalk host Russ Roberts about performance-enhancing drugs in baseball and Evolutionary Fitness, De Vany's ideas about diet and fitness. In the first part of the conversation, De Vany argues that there is little physiological or statistical evidence that steroid use increases home run totals in baseball. The second part of the conversation turns to De Vany's theories of diet and exercise. De Vany argues that our diet and exercise regime should take account of our evolutionary origins, an earlier time when we ate no grains and our exercise was a mix of intense activity punctuated by much milder activity. He argues that jogging is unhealthy and that we would live longer and feel better if we followed a different exercise routine than most Americans do today.

Meyer on the Music Industry and the Internet

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 22 Mar 2010 06:30:00 EST

Steve Meyer, music industry veteran and publisher of the Disc and Dat Newsletter, talks with EconTalk host Russ Roberts about the evolution of the music industry and the impact of the digital revolution. After discussing his background and experience in marketing at Capitol Records and elsewhere, Meyer argues for the virtues and potential of the internet in enhancing the music industry. He points out that the internet allows numerous artists to make money through their music and particularly enhances revenue from live performances. He describes the challenges facing record companies as a failure of imagination and suggests that the full potential of the internet as a distribution channel has yet to be fully exploited.

Don Boudreaux on Public Choice

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 15 Mar 2010 06:30:00 EST

Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts about public choice: the application of economics to the political process. Boudreaux argues that political competition is a blunt instrument that works less effectively than economic competition. One reason for this bluntness is the voting process itself--where intensity does not matter, only whether a voter prefers one candidate to the other. A second reason is that political outcomes tend to be one-size-fits-all, which often leads to dissatisfaction. Boudreaux defends the morality of not voting, while Roberts, who does vote from time to time, concedes that one's vote is almost always irrelevant in determining the outcome.

Newman on Low-wage Workers

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 08 Mar 2010 06:30:00 EST

Katherine Newman, Professor of Sociology at Princeton University, talks with EconTalk host Russ Roberts about Newman's case studies of fast-food workers in Harlem. Newman discusses the evolution of their careers and fortunes over time along with their dreams and successes and failures. The conversation concludes with lessons for public policy in aiding low-wage workers.

Ritholtz on Bailouts, the Fed, and the Crisis

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 01 Mar 2010 06:30:00 EST

Barry Ritholtz, author of Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy, talks with EconTalk host Russ Roberts about the history of bailouts in recent times, beginning with Lockheed and Chrysler in the 1970s and continuing through the current financial crisis. In addition to the government role in aiding ailing companies, Ritholtz also looks at the role of the Fed in discouraging prudence through its efforts to keep asset prices and the stock market at high levels. The conversation closes with a discussion of what Ritholtz has learned from the crisis.

Garett Jones on Macro and Twitter

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 22 Feb 2010 06:30:00 EST

Garett Jones of George Mason University talks with EconTalk host Russ Roberts about the art of communicating economics via puzzles and short provocative insights. They discuss Jones's Twitter strategy of posting quotes and short puzzles to provoke thinking. Jones, drawing on his experience as a Senate staffer, discusses the interaction between politics and economics in the area of tax cuts and earmarks. For example, are earmarks good or bad? Jones gives an unconventional analysis. He also discusses the economics of the new workplace and why that might mean a different path for productivity over the business cycle than in the past.

Phelps on Unemployment and the State of Macroeonomics

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 15 Feb 2010 06:30:00 EST

Nobel Laureate Edmund Phelps of Columbia University talks with EconTalk host Russ Roberts about the market for labor, unemployment, and the evolution of macroeconomics over the past century. The conversation begins with a discussion of Phelps's early contributions to the understanding of unemployment and the importance of imperfect information. Phelps put his contribution into the context of the evolution of macroeconomics showing how his models were related to those of Keynes, the Austrian School, and rational expectations. The conversation then turns to the issue of whether macroeconomics is making progress, particularly in understanding business cycles. The discussion concludes with the satisfactions of work and the role of creativity and dynamism.

Roberts on Smith, Ricardo, and Trade

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 08 Feb 2010 06:30:00 EST

Russ Roberts, host of EconTalk, does a monologue this week on the economics of trade and specialization. Economists have focused on David Ricardo's idea of comparative advantage as the source of specialization and wealth creation from trade. Drawing on Adam Smith and the work of James Buchanan, Yong Yoon, and Paul Romer, Roberts argues that we've neglected the role of the size of the market in creating incentives for specialization and wealth creation via trade. Simply put, the more people we trade with, the greater the opportunity to specialize and innovate, even when people are identical. The Ricardian insight masks the power of market size in driving innovation and the transformation of our standard of living over the last few centuries in the developed world.

Larry White on Hayek and Money

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 01 Feb 2010 06:30:00 EST

Larry White of George Mason University talks with EconTalk host Russ Roberts about Hayek's ideas on the business cycle and money. White lays out Hayek's view of business cycles and the role of monetary policy in creating a boom and bust cycle. The conversation also explores the historical context of Hayek's work on business cycle theory--the onset of the Great Depression and the intellectual battle with Keynes and his work. In the second half of the podcast, White turns to alternative ways to provide money, in particular, the possibility of private currency and free banking explored by Hayek late in his career. White then describes his own research on free banking and in particular, the more than a century-long experience Scotland had with free banking. The podcast concludes with the economics rap "Fear the Boom and Bust," recently created by John Papola and Russ Roberts. The song itself can be downloaded at EconStories.tv where viewers can also watch the video, read the lyrics, and find related resources on the web for Keynes and Hayek.

Spence on Growth

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 25 Jan 2010 06:30:00 EST

Nobel Laureate Michael Spence of Stanford University's Hoover Institution and the Commission on Growth and Development talks with EconTalk host Russ Roberts about the determinants of economic growth. Spence discusses the findings of the Commission's recent report and how it compares to earlier attempts to uncover the sources of growth and the lack of growth such as the Washington Consensus. Spence makes the case for government provision of infrastructure including education and the problems of corruption and governance. The conversation closes with a look at Spence's career and the lessons of that experience.

Munger on Many Things

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 18 Jan 2010 06:30:00 EST

Mike Munger of Duke University talks with EconTalk host Russ Roberts about many things. Listeners sent in questions for Mike and Russ to talk about and they chose ten of the most interesting questions with the idea of talking about each for six minutes. The topics are the scarcity of clean water, asset bubbles, the role of Fannie and Freddie in the financial crisis, can a business pass a tax on to its customers (or maybe even its workers), compassionate food, the study of economics, how to choose a college, the nature of cooperation in a modern economy, the humanity of non-profits, and the American Dream.

Belongia on the Fed

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 11 Jan 2010 06:30:00 EST

Michael Belongia of the University of Mississippi and former economist at the St. Louis Federal Reserve talks with EconTalk host Russ Roberts about the inner workings, politics, and economics of the Federal Reserve. Belongia talks about the role that power and politics play in Federal Reserve decision-making and how various Fed chairs used their power to suppress dissent within the Fed that was critical of Fed policy. He argues that the Fed faces an unresolvable dilemma when asked to achieve the multiple goals of full employment and price stability using only the federal funds rate as a policy lever. The discussion concludes with Belongia's indictment of the monetary data that the Fed produces.

Rustici on Smoot-Hawley and the Great Depression

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 04 Jan 2010 06:30:00 EST

Thomas Rustici of George Mason University and author of Lessons from the Great Depression talks with EconTalk host Russ Roberts about the impact of the Smoot-Hawley Act on the economy. The standard view is that the decrease in trade that followed Smoot-Hawley was not big enough to be a significant contributor to the Great Depression. Rustici argues that this Keynesian approach that looks at aggregate spending misses a crucial mechanism for understanding the impact of Smoot-Hawley. Rustici focuses on the impact of Smoot Hawley on bank closings and the money supply. Smoot-Hawley launched an international trade war that reduced world trade dramatically. This had large concentrated regional effects in the United States and around the world in areas that depended on trade. Those were the areas where the first banks collapsed, contracting the money supply via the fractional reserve banking system. Rustici argues that the Keynesian indictment of the price system ignores the policy failures that destroyed the institutions that make the price system work.

Nye on the Great Depression, Political Economy, and the Evolution of the State

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 14 Sep 2009 06:30:00 EST

John Nye of George Mason University talks with EconTalk host Russ Roberts about the Great Depression, the evolution of the State, and attitudes people have toward free markets. Nye argues that support for modern capitalism is fragile because people have trouble trusting the market process which is based on anonymous exchange with strangers. So when a crisis comes, it leads to demands for a larger role for top-down decision making. Nye sees the Great Depression as part of a larger public disillusionment beginning in World War I.

Hitchens on Orwell

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 17 Aug 2009 06:30:00 EST

Christopher Hitchens talks with EconTalk host Russ Roberts about George Orwell. Drawing on his book Why Orwell Matters, Hitchens talks about Orwell's opposition to imperialism, fascism, and Stalinism, his moral courage, and his devotion to language. Along the way, Hitchens makes the case for why Orwell matters.

Graham on Start-ups, Innovation, and Creativity

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 03 Aug 2009 06:30:00 EST

Paul Graham, essayist, programmer and partner in the y-combinator talks with EconTalk host Russ Roberts about start-ups, innovation, and creativity. Graham draws on his experience as entrepreneur and investor to discuss the current state of the start-up world and how that world has changed due to improved technology that makes it easier to start a software company. Graham talks about his unusual venture firm, the y-combinator, and how he and his partners work with start-ups to get them ready for more advanced funding. Along the way, Graham discusses why hackers are like painters and how to survive high school.

Epstein on the Rule of Law

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 01 Jun 2009 06:30:00 EST

Richard Epstein of the University of Chicago and Stanford University's Hoover Institution talks with EconTalk host Russ Roberts about the rule of law. Epstein lays out a minimalist definition and a more expansive definition when considering the protection that individuals might have when facing the power of the state or the sovereign. Applications include "takings" and the current government interventions in the auto industry and the financial sector.

Taleb on the Financial Crisis

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 23 Mar 2009 06:30:00 EST

Nassim Taleb talks with EconTalk host Russ Roberts about the financial crisis, how we misunderstand rare events, the fragility of the banking system, the moral hazard of government bailouts, the unprecedented nature of really, really bad events, the contribution of human psychology to misinterpreting probability and the dangers of hubris. The conversation closes with a discussion of religion and probability.

Meltzer on Inflation

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 23 Feb 2009 06:30:00 EST

Allan Meltzer, of Carnegie Mellon University, talks with EconTalk host Russ Roberts about the current state of monetary policy and the potential for inflation. Meltzer explains why inflation hasn't happened yet, despite massive increases in reserves created by Fed policy. Then he explains why inflation is coming and why it will be politically difficult for the Fed to stop it. Meltzer also analyzes the Japanese experience in recent years and talks about why so many investment banks overreached and destroyed themselves.

Roberts (and Hanson) on Truth and Economics

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 26 Jan 2009 06:30:00 EST

EconTalk host Russ Roberts talks about the role of empirical evidence and bias in economics and why economists disagree. Roberts talks about how his interviews with various economists at EconTalk have forced him to reassess the role of empirical evidence in various debates in economics and economic policy. Roberts is joined by Robin Hanson of George Mason University for counterpoint and therapeutic advice for those uneasy about the scientific or non-scientific nature of economics.

Munger on Middlemen

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 27 Oct 2008 08:40:00 EST

Mike Munger of Duke University talks with EconTalk host Russ Roberts about the often-vilified middleman--someone who buys cheap, sells dear and does nothing to improve the product. Munger explains the economic function of arbitrage using a classic article about how prices emerged in a POW camp during World War II. Munger then applies the analysis to the financial crisis.

Kling on Freddie and Fannie and the Recent History of the U.S. Housing Market

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 29 Sep 2008 06:30:00 EST

Arnold Kling of EconLog talks with host Russ Roberts about the economics of the housing market with a focus on the role of Fannie Mae and Freddie Mac. The conversation closes with a postscript on the current financial crisis.

Easterly on Growth, Poverty, and Aid

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 11 Feb 2008 06:30:00 EST

William Easterly of NYU talks about why some nations escape poverty while others do not, why aid almost always fails to create growth, and what can realistically be done to help the poorest people in the world.

Don Boudreaux on Globalization and Trade Deficits

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 21 Jan 2008 06:15:00 EST

Don Boudreaux, of George Mason University, talks about the ideas in his book, Globalization. He discusses comparative advantage, the winners and losers from trade, trade deficits, and inequality with EconTalk host Russ Roberts.

Romer on Growth

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 27 Aug 2007 06:30:00 EST

Paul Romer, Stanford University professor and Hoover Institution Senior Fellow talks with EconTalk host Russ Roberts about growth, China, innovation, and the role of human capital. Also discussed are ideas in creating growth, the idea that ideas allow for increasing returns, and intellectual property and how it should be treated. This 75 minute podcast is a wonderful introduction to thinking about what creates and sustains our standard of living in the modern world.

Caplan on the Myth of the Rational Voter

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 25 Jun 2007 06:45:00 EST

Bryan Caplan, of George Mason University and blogger at EconLog, talks about his book, The Myth of the Rational Voter: Why Democracies Choose Bad Policies. Caplan argues that democracies work well in giving voters what they want but unfortunately, what voters want isn't particularly wise, especially when it comes to economic policy. He outlines a series of systematic biases we often have on economic topics and explains why we have little or no incentive to improve our understanding of the world and vote wisely. So, it's not special interests that are messing things up but the very incentives that lie at the heart of a vote-based system. This is a disturbing and provocative lens for viewing political outcomes.

Bruce Bueno de Mesquita on Democracies and Dictatorships

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 12 Feb 2007 06:15:00 EST

Bruce Bueno de Mesquita of NYU and Stanford University's Hoover Institution talks about the incentives facing dictators and democratic leaders. Both have to face competition from rivals. Both try to please their constituents and cronies to stay in power. He applies his insights to foreign aid, the Middle East, Venezuela, the potential for China's evolution to a more democratic system, and Cuba. Along the way, he explains why true democracy is more than just elections--it depends crucially on freedom of assembly and freedom of the press.

Munger on Price Gouging

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 8 Jan 2007 12:15:00 EST

Mike Munger of Duke University recounts the harrowing (and fascinating) experience of being in the path of a hurricane and the economic forces that were set in motion as a result. One of the most important is the import of urgent supplies when thousands of people are without electricity. Should prices be allowed to rise freely or should the government restrict prices? Listen in as Munger and EconTalk host Russ Roberts discuss the human side of economics after a catastrophe.

Friedman on Capitalism and Freedom

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 4 Sep 2006 07:25:00 EST

Russ Roberts talks to Milton Friedman about the radical ideas he put forward almost 50 years ago in Capitalism and Freedom. Listen to the most influential economist of the past 50 years discuss the principles of liberty, social responsibility of business, the inertia behind bad legislation and his career as economist and public intellectual.

Milton Friedman on Money

webmaster@econlib.org (EconTalk, Russ Roberts, Library of Economics and Liberty) — Mon, 28 Aug 2006 07:30:00 EST

Russ Roberts talks with Milton Friedman about his research and views on inflation, the Federal Reserve, Alan Greenspan and Ben Bernanke, and what the future holds.