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Information, Prices, and Socialism’s Flaws

Prices are arguably the most fundamental variables in economics. They enter into virtually every economic analysis, and predictions about their values are made in all manner of economic research, from highly esoteric theoretic models to street-level forecasting of business trends. Each day, we all make scores of decisions in which one of the very first .. MORE

Featured Article

The Private Production of Roads

Most Americans recognize the efficiency of private enterprise in providing goods such as computers and cars. Yet for various reasons, when it comes to roads, most people recoil from the idea of private production. Indeed, many people think that one of the essential functions of government, in addition to other tasks such as coining money .. MORE

The Puzzling Economics of Sports

“Why is it that we seem to be concerned that some baseball players may gain an unfair advantage by turning to pharmacists while at the same time we don’t blanch at people getting cosmetic surgery to improve their competitive advantage?” Why is it that no one complains when Ray Romano (“Raymond”) gets $50 million a .. MORE

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Economics and Culture

Trading Places: A Viewer’s Guide

By John Phelan

Macroeconomics

When confused, re-evaluate your model

By Scott Sumner

Books: Reviews and Suggested Readings

Swaim’s Lame Take on Libertarianism

By David Henderson

Book Review

The Kids Are… Different

By Arnold Kling

Article

A Child Comes With His Own Bread

By Rosolino Candela

Article

The Boundaries of Fiscal and Monetary Policy

By Leonidas Zelmanovitz

Cost-benefit Analysis

Cliff Winston on Judges and Courts

By David Henderson

EconTalk

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econtalk-podcast

Arnold Kling on Twitter, FTX, and ChatGPT

Economist and author Arnold Kling talks with EconTalk host Russ Roberts about the recent drama in the tech world–Elon Musk’s acquisition of Twitter, the collapse of FTX, and the appearance of ChatGPT. Underlying topics discussed include the potential for price discrimination to make social media profitable, whether you could tell Jeff Bezos from Sam Bankman-Fried .. MORE

econtalk-podcast

Terry Anderson on Native American Economics

Terry Anderson of PERC talks with EconTalk host Russ Roberts about economic life for Native Americans. Anderson discusses economic life before the arrival of Europeans and how current policy affects Native Americans living on reservations today.

EconLog

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Competition

The Reign of Homo Politicus Perfectus

If you asked where you can find a regular criticism of anything that looks like a classical-liberal approach to social, political, and economic problems, I could recommend the pieces of Financial Times columnist Rana Foroohar. Her latest column is another good illustration: “America Is Telling a Very Different Story About Trade,” Financial Times, June 18, .. MORE

Macroeconomics

Weight gain and price gain

Brian Albrecht has a clever series of tweets comparing inflation and weight gain: After a sarcastic comment about cutting off legs to lose weight, Albrecht then draws some policy implications: I’d like to take this analogy a bit further.  I can imagine a few cases where it might make sense to attribute weight gain to .. MORE

LIBERTY CLASSICS SERIES

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The Coal Question

By William Stanley Jevons

I AM desirous of prefixing to the second edition of the following work a few explanations which may tend to prevent misapprehension of its purpose and conclusions.The expression “exhaustion of our coal mines,” states the subject in the briefest form, but is sure to convey erroneous notions to those who do not reflect upon the .. MORE

Human Action: A Treatise on Economics

By Ludwig Mises

IT GIVES me great satisfaction to see this book, handsomely printed by a distinguished publishing house, appear in its third revised edition. Two terminological remarks may be in order. First, I employ the term “liberal” in the sense attached to it everywhere in the nineteenth century and still today in the countries of continental Europe. .. MORE

Book Reviews and Suggested Readings

Legal Safeguards Against Omnipotent Lawmakers

By Pierre Lemieux

A Book Review of Law, Legislation, and Liberty, by Friedrich A. Hayek. Jeremy Shearmur, editor.1 Friedrich Hayek’s trilogy Law, Legislation, and Liberty, published in three separate volumes in 1973, 1976, and 1979, was recently republished in a single book under the careful editorship of Jeremy Shearmur. The last volume of the original trilogy2 covers Chapters .. MORE

Rehabilitating Self-Help: Why Hayek Was Wrong about Samuel Smiles

By Roger Donway

In 1976, Friedrich Hayek effectively read Samuel Smiles out of the classical-liberal movement. In The Mirage of Social Justice, Hayek said that the work of Samuel Smiles (1812-1904) constitutes a snare and a delusion for pro-capitalists. Smiles’s defense of free enterprise, Hayek lamented, seemed to be “the only defence of it which is understood by .. MORE

Conversations

VIDEO

A Conversation with Israel Kirzner

Israel Kirzner, Professor Emeritus at NYU, is among the foremost scholars in the continuing development of the Austrian school of economic theory. He has extended our understanding of the workings of a free society, illuminated the role of entrepreneurs in the process of economic discovery, and shed new light on the dynamics of market forces. .. MORE

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

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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

Basic Concepts, Economic Regulation, Government Policy

Public Goods

Public goods have two distinct aspects: nonexcludability and nonrivalrous consumption. “Nonexcludability” means that the cost of keeping nonpayers from enjoying the benefits of the good or service is prohibitive. If an entrepreneur stages a fireworks show, for example, people can watch the show from their windows or backyards. Because the entrepreneur cannot charge a fee .. MORE

Basic Concepts, International Economics, The Marketplace

Free Trade

For more than two centuries economists have steadfastly promoted free trade among nations as the best trade policy. Despite this intellectual barrage, many “practical” men and women continue to view the case for free trade skeptically, as an abstract argument made by ivory tower economists with, at most, one foot on terra firma. These practical .. MORE

Economic Systems, Government Policy

Economic Freedom

For well over a hundred years, the economic world has been engaged in a great intellectual debate. On one side of this debate have been those philosophers and economists who advocate an economic system based on private property and free markets—or what one might call economic freedom. The key ingredients of economic freedom are personal .. MORE

Quotes

…unless some other doctrine is agreed for justifying its taking sides, the state ought to lean over backwards to avoid putting itself in a position where it must make choices pleasing some of its subjects and displeasing others. Anthony de Jasay, The State

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This, then, is freedom in the external life of man—that he is independent of the arbitrary power of his fellows. Ludwig von Mises, Socialism

-Ludwig von Mises Full Quote >>

There is a limit to the legitimate interference of collective opinion with individual independence; and to find that limit, and maintain it against encroachment, is as indispensable to a good condition of human affairs as protection against political despotism. John Stuart Mill, On Liberty

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