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The Market Society Is a Pro-Social Society

Human beings are inherently pro-social creatures. Aristotle went so far as to refer to us as political animals, driven by our nature to create associations that culminate in the broader community of the polis. And our capacity for reciprocity, trust, and cooperation has deep evolutionary origins. These big brains of ours developed, in part, to .. MORE

Book Review, Kling's Corner

The Psychology of Authoritarianism

… [those] who score high on the authoritarianism scale agree that (italicized words are direct quotes from the scale) our country needs a mighty leader; that the leader should destroy opponents; that people should trust the judgment of the proper authorities, avoid listening to noisy rabble-rousers in our society who are trying to create doubts .. MORE

Article

Undoing Past Policies: How Likely Are Repeals in the 119th Congress?

After every presidential election, including the most recent, the new majority wants to repeal a list of previous regimes’ policy enactments. Political observers always look to the next two years, wondering what to expect from the party in power. With the 2024 elections delivering unified Republican control of the national government, a lot of attention .. MORE

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econtalk-podcast

Coase, the Rules of the Game, and the Costs of Perfection (with Daisy Christodoulou)

[ANNUAL LISTENER SURVEY: https://www.surveymonkey.com/r/KYV5XPG. Vote for your 2024 favorites! Survey ends Feb. 9th.] Surely perfection is better than imperfection. But applying technology to improve decision-making can backfire. Listen as ed-tech innovator Daisy Christodoulou and EconTalk’s Russ Roberts talk about the costs of seeking perfection when technology is used to improve refereeing in sports. They also talk .. MORE

econtalk-podcast

Martin Gurri on the Revolt of the Public

Author Martin Gurri, Visiting Fellow at George Mason University’s Mercatus Center, talks about his book The Revolt of the Public with EconTalk host Russ Roberts. Gurri argues that a digital tsunami–the increase in information that the web provides–has destabilized authority and many institutions. He talks about the amorphous nature of recent populist protest movements around .. MORE

EconLog

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Trade Barriers

We’re an Empire Now

Here’s Gideon Rachman in the FT: “Our strategy on tariffs will be to shoot first and ask questions later.” That was what one of Donald Trump’s key economic policymakers told me late last year. That kind of macho swagger is currently fashionable in Washington. Macho swagger?  Where have we seen that before? Back in 2004, .. MORE

Taxation

Deadweight Loss From Taxes is Proportional to the Square of the Tax Rate

In a post last week, I stated that the deadweight loss from a tax is proportional to the square of the tax rate. So doubling the tax rate, for example, quadruples the deadweight loss. I stated on Facebook that I used basic algebra to prove this to my students. An economist friend asked me to .. MORE

LIBERTY CLASSICS SERIES

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continued relevance of our classic titles.

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Book Titles

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Memoirs of Extraordinary Popular Delusions and the Madness of Crowds

By Charles Mackay

Charles Mackay, Scottish poet, journalist, and editor was best known in his day for his verses, some of which were set to music. His book, Memoirs of Extraordinary Popular Delusions, was first published in 1841 (London: Richard Bentley, New Burlington Street, Publisher in Ordinary to Her Majesty), with a promise of additional material “should these be .. MORE

The History of Bimetallism in the United States

By J. Laurence Laughlin

It may not be necessary to inform readers again that I have aimed in this book to present only the facts bearing on the experiments of the United States with metallic money. No special attention, therefore, has been devoted to the theory of bimetallism or to the larger principles of money involved in current discussions. .. MORE

Book Reviews and Suggested Readings

Maybe It’s Not Time for Socialism

By Donald J. Boudreaux

A Book Review of Time For Socialism, by Thomas Piketty.1 Time For Socialism author Thomas Piketty boasts a doctorate in economics, publishes papers regularly in top economics journals, teaches economics at the Paris School of Economics, and was once on the economics faculty at M.I.T. Yet not only are the 333 pages of his 2021 .. MORE

Is Inequality a Problem?

By Nils Karlson

Book Review of The Poor and the Plutocrats: From the Poorest of the Poor to the Richest of the Rich (Oxford University Press 2021) by Francis Teal.1 Is inequality a problem? Many people seem to think so, if we judge the public discussions in Europe and the United States over the last decade or so. .. MORE

Conversations

VIDEO

A Conversation with Anthony de Jasay

Anthony de Jasay, a regular columnist for Econlib, was one of the most original and independent thinkers on the relationship between the individual and the state. Through his published works, he challenged the reigning paradigms justifying modern democratic growth. His deeply challenging theoretical works include The State, an analysis that views the state as acting .. MORE

VIDEO

A Conversation with James M. Buchanan, Parts I and II

Nobel laureate James M. Buchanan (1919-2013) was recorded in 2001 in an extended video now available to the public. Universally respected as one of the founders of the economics of public choice, he is the author of numerous books and hundreds of articles in the areas of public finance, public choice, constitutional economics, and economic .. MORE

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College Economics Topics

Supplementary materials for popular college textbooks used in courses in the Principles of Economics, Microeconomics, Price Theory, and Macroeconomics are suggested by topic.

Economist Biographies

From the Concise Encyclopedia of Economics

Labor

Wages and Working Conditions

CEOs of multinational corporations, exotic dancers, and children with lemonade stands have at least one thing in common. They all expect a return for their effort. Most workers get that return in a subtle and ever-changing combination of money wages and working conditions. This article describes how they changed for the typical U.S. worker during .. MORE

Basic Concepts, Money and Banking

Interest

Interest is the price people pay to have resources now rather than later. Resources, of course, can be anything from college tuition to a big-screen TV. Interest is conventionally expressed as a percentage rate for a period of one year. If borrowers (those who want resources now) can obtain the resources from lenders (those who .. MORE

Macroeconomics

Gross Output

Gross output (GO) is a relatively new macroeconomic statistic that measures total economic activity. Gross domestic product (GDP)—the other major measure of economic activity—accounts only for final goods and services. However, GO’s scope includes both final output as well as intermediate inputs at all earlier stages of production. Therefore, GO is a much more comprehensive measure .. MORE

Quotes

There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen. Selected Essays on Political Economy

-Frederic Bastiat

We are as little able to conceive what civilization will be, or can be, five hundred or even fifty years hence as medieval man, or even our grandparents, were able to foresee our own manner of life.

-F. A. Hayek Full Quote >>

“All constitutions of government, however, are valued only in proportion as they tend to promote the happiness of those who live under them.”

-Adam Smith Full Quote >>

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