Featured Articles

Article

Why Nogales Fails

In their influential magnum opus, Why Nations Fail, Daron Acemoglu and James A. Robinson develop the proposition that the wealth of nations is ultimately the outcome of political and economic institutions able to generate prosperity, progress and the distribution of opportunities for growth. The authors characterize this set of arrangements as “inclusive institutions,” namely, access .. MORE

Book Review, Kling's Corner

Popular Economics Books to Read or to Avoid

This article has two lists: a list of popular economics books that I recommend reading; and a list of popular economics books that I recommend avoiding.1 What is a popular economics book? My first thought is that it is written without the mathematics and diagrams that economists use when teaching courses. My second thought is .. MORE

Article

The Inescapable Principle of Comparative Advantage

David Ricardo. In a recent article in The Financial Times Nat Dyer argues that economists misunderstand tariffs.1 He points out that tariffs have political and moral dimensions not captured by standard economic reasoning. We therefore take economists’ widespread advocacy of free trade at our peril: “too few economic theorists have interrogated the actual, messy history .. MORE

Most Recent

Politics and Economics

Escalation dominance?

By Scott Sumner

Economic Methods

My Weekly Reading for May 11, 2025

By David Henderson

Political Economy

Are Constitutionalism and the Rule of Law Dying?

By Pierre Lemieux

Monetary Policy

The Fed needs a “Strong” leader.

By Scott Sumner

International Trade

They Took Our Jobs!

By Tyler Watts

International Trade

Some Hidden Costs of Tariffs

By Jon Murphy

International Trade

Go Ahead and Keep Them; We’ll Make More

By David Henderson

Free Markets

A new neoliberalism?

By Scott Sumner

EconTalk

All >

econtalk-podcast

The Economics of Tariffs and Trade (with Doug Irwin)

Is the United States victimized by trade? What causes trade deficits? Are higher tariffs a good idea? Can manufacturing jobs return to the United States? Economist Doug Irwin of Dartmouth College answers these questions and more in this wide-ranging conversation with EconTalk’s Russ Roberts.

econtalk-podcast

Michael Munger on Free Markets

Author and economist Michael Munger of Duke University talks with EconTalk host Russ Roberts about the virtues–and the flaws–of free markets. Munger says the best argument for a free market approach is not that it’s perfect but that it’s better than anything else we’ve been able to come up with over the centuries. Better at .. MORE

EconLog

All >

International Trade

Go Ahead and Keep Them; We’ll Make More

Early in his EconTalk interview with Douglas Irwin, Russ Roberts says: But I just want to pose the question: Suppose they didn’t come back. Suppose foreigners sold us cars and all kinds of things, and we sent them dollars. Americans sent them dollars. And the foreigners really liked the way the dollars looked, so they put them .. MORE

Free Markets

A new neoliberalism?

Among the smarter center-left pundits, we are seeing signs of what might be called a revival of neoliberalism. Here I’m thinking of people like Matt Yglesias, Ezra Klein, Derek Thompson and Noah Smith. (They might not like that label, but I’m more concerned with content than terminology.) Noah Smith recently provided a good explanation of .. MORE

LIBERTY CLASSICS SERIES

Explore the lasting legacies and
continued relevance of our classic titles.

Browse Articles

Book Titles

All Books >

Capital, Interest, and Rent: Essays in the Theory of Distribution

By Frank A. Fetter

The present volume includes all of the essays in which Fetter developed and presented his theory of distribution; the only important writings excluded are his two treatises: The Principles of Economics (New York: The Century Co., 1910) and Economic Principles (New York: The Century Co., 1915)…. [From the Preface by Murray N. Rothbard]

Capital: A Critique of Political Economy, Vol. I. The Process of Capitalist Production

By Karl Marx

One of Econlib’s aims is to put online the most significant works in the history of economic thought, and there can be no doubting the significance of Marx’s influence on both economic theory in the late 19th century and on the creation of Marxist states in the 20th century. From the time of the emergence .. MORE

Book Reviews and Suggested Readings

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

Put Away the Puppets

By Maria Pia Paganelli

A Book Review of Escaping Paternalism: Rationality, Behavioral Economics, and Public Policy, by Mario J. Rizzo and Glen Whitman.1 Are you saving enough for retirement? How do you know? How can I tell? What if there is a benchmark against which to compare your savings? If you meet it, all is well. But what if .. MORE

Conversations

VIDEO

Profile in Liberty: Friedrich A. Hayek

The twentieth century witnessed the unparalleled expansion of government power over the lives and livelihoods of individuals. Much of this was the result of two devastating world wars and totalitarian ideologies that directly challenged individual liberty and the free institutions of the open society. Other forms of expansion in the provision of social welfare and .. MORE

VIDEO

Capitalism, Government, and the Good Society

On April 10, 2013, Liberty Fund and Butler University sponsored a symposium, “Capitalism, Government, and the Good Society.” The evening began with solo presentations by the three participants–Michael Munger of Duke University, Robert Skidelsky of the University of Warwick, and Richard Epstein of New York University. (Travel complications forced the fourth invited participant, James Galbraith .. MORE

Econlib Videos

Intellectual Portrait Series

Conversations with some of the most original thinkers of our time

Browse Videos

Guides

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

Corporations and Financial Markets , Economic Regulation, Economics of Legal Issues

Innovation

“ Innovation”: creativity; novelty; the process of devising a new idea or thing, or improving an existing idea or thing. Although the word carries a positive connotation in American culture, innovation, like all human activities, has costs as well as benefits. These costs and benefits have preoccupied economists, political philosophers, and artists for centuries. Nature .. MORE

Economic Regulation, Government Policy, The Economics of Special Markets, The Marketplace

Housing

The average U.S. consumer now enjoys a larger and higher-quality home than ever before. In 2001, the average home was 1,693 square feet, while in 1960 it was less than 1,200 square feet. In 2001, 58 percent of homes had three or more bedrooms, and 57 percent had 1.5 or more bathrooms. Compare that with .. MORE

Government Policy, Macroeconomics, The Economics of Special Markets, The Marketplace

Energy

Most of the energy consumed in America today is produced from the combustion of fossil fuels, primarily oil, coal, and natural gas. Energy can be generated, however, in any number of ways. Figure 1 indicates the sources of energy employed by the American economy as of February 2004. Figure 1 U.S. Energy Sources, 2004 The economy .. MORE

Quotes

The arguments against capitalism are legion. Some are valid. The defenders of capitalism weaken their case by denying them. Defending the indefensible in capitalism is not the way to vindicate its superiority over socialism.  

-Arthur Seldon

“…money is the more requisite, the more civilized a nation is, and the further it has carried the division of labour.”

-Jean-Baptiste Say 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 Full Quote >>