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The Beef with Greed: Leo Tolstoy and Adam Smith

Free market economics and libertarianism are often linked, rightly or wrongly, with egoism, selfishness, and greed. In Leviathan (1651), perhaps the first great modern political text, Thomas Hobbes writes that “No man gives but with the intention of good to himself, because gift is voluntary; and all voluntary acts are the object to every man .. MORE

Liberty Classics

Is State Education Justified? An Appreciation of E.G. West’s Education and the State

A Liberty Classic Book Review of Education and the State: A Study in Political Economy, by E.G. West.1 As a society, we have become used to government involvement in education. We rarely subject such involvement to economic scrutiny or ask the historical question of whether its appearance was necessary. E.G. West’s book Education and the .. MORE

Book Review

Put Away the Puppets

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

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Books: Reviews and Suggested Readings

Fewer Rules, Better People: What Lam Gets Right

By Kevin Corcoran

Cross-country Comparisons

America is a Manufacturing Powerhouse

By Scott Sumner

Adam Smith

Tariffs as Part of An Optimal Tax System

By Jon Murphy

Liberty

Limits on Self-Ownership?

By David Henderson

Economic and Political Philosophy

The Problem of Extreme Cases

By Pierre Lemieux

Books: Reviews and Suggested Readings

Fewer Rules, Better People: How To Expand Discretion

By Kevin Corcoran

Supply-side Economics

The Middle Income Trap

By Scott Sumner

Finance, Risk, Uncertainty, Probability Theory

Inside the Mysterious World of Credit Cards (with Patrick McKenzie)

Politics and Economics

Two More Examples of the Nationalist’s Dilemma

By Scott Sumner

EconTalk

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econtalk-podcast

Inside the Mysterious World of Credit Cards (with Patrick McKenzie)

Patrick McKenzie explains to EconTalk’s Russ Roberts how credit cards work, who makes money from them and how, and gives his take on whether cash customers and debit card users subsidize the users of credit cards with reward programs.

econtalk-extra

The Rich Get Richer…

But is that a bad thing? That may be the central question explored in this EconTalk episode with UC Berkeley’s Gabriel Zucman. Working with Thomas Piketty and Emmanuel Saez, Zucman explored national income accounts to look for trends in income inequality in the United States since 1980.Their results suggest that the bottom 50% of Americans .. MORE

EconLog

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Adam Smith

Tariffs as Part of An Optimal Tax System

Writing at the Hoover Institution’s Defining Ideas publication (“Clearing the Air on Tariffs and Deficits,” 24 April 2025), co-blogger David Henderson mentions two plausible arguments for a non-zero tariff.  One of those is within an optimal tax regime: One other intellectually respectable argument for tariffs is that they are part of an optimal tax structure. Our .. MORE

Cross-country Comparisons

America is a Manufacturing Powerhouse

A recent Bloomberg article by Dan Wang and Ben Reinhardt had some interesting things to say about US manufacturing. Instead of imposing high tariffs, they suggested that the US encourage foreign investment into facilities producing goods in America.  I particularly liked this paragraph: But the more that Trump makes the country captive to his impulses—whether .. MORE

LIBERTY CLASSICS SERIES

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The Rationale of Central Banking and the Free Banking Alternative

By Vera C. Smith

Vera Smith’s The Rationale of Central Banking invites us to reassess our monetary institutions and give reform proposals due consideration. The decades since it first appeared in 1936 have restored its themes to relevance. Government-dominated monetary systems have continued to perform poorly. Other experience, as well as the work of James Buchanan and the Public .. MORE

The Theory of Political Economy

By William Stanley Jevons

THE contents of the following pages can hardly meet with ready acceptance among those who regard the Science of Political Economy as having already acquired a nearly perfect form. I believe it is generally supposed that Adam Smith laid the foundations of this science; that Malthus, Anderson, and Senior added important doctrines; that Ricardo systematised .. MORE

Book Reviews and Suggested Readings

Liberty, Not Licensing: John Milton’s Areopagitica

By Sarah Skwire

A Liberty Classic Book Review of Areopagitica and Other Political Writings of John Milton.1 What does it take for a book to get banned? The Newbery Award-winning children’s book, The Higher Power of Lucky, has been the center of a storm of this kind of debate because of its use of the apparently shocking word “scrotum.” .. 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

A Conversation with Steve Pejovich

Svetozar “Steve” Pejovich, one of the most dynamic and insightful theorists writing on property rights, reflects on his experience in economics. With characteristic sagacity and humor, he demonstrates the power that empirical cases can bring to bear on theoretical problems. Born in Belgrade, Pejovich is Professor Emeritus at Texas A&M University, where he taught for .. MORE

VIDEO

A Conversation with Milton Friedman

Recipient of the Nobel Memorial Prize in Economic Sciences, Milton Friedman (1912-2006) has long been recognized as one of our most important economic thinkers and a leader of the Chicago school of economics. He is the author of many books and articles in economics, including A Theory of the Consumption Function and A Monetary History .. 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

International Economics, Economies Outside the United States

Third World Economic Development

[Editor’s note: this article was written in 1992.]   The development experiences of Third World countries since the fifties have been staggeringly diverse—and hence very informative. Forty years ago the developing countries looked a lot more like each other than they do today. Take India and South Korea. By any standards, both countries were extremely .. MORE

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

Education

K-12 In the 1980s, economists puzzled by a decline in the growth of U.S. productivity realized that American schools had taken a dramatic turn for the worse. After rising every year for fifty years, student scores on a variety of achievement tests dropped sharply in 1967. They continued to decline through 1980. The decline was .. MORE

Economic Systems, The Marketplace

Capitalism

“ Capitalism,” a term of disparagement coined by socialists in the mid-nineteenth century, is a misnomer for “economic individualism,” which Adam Smith earlier called “the obvious and simple system of natural liberty” (Wealth of Nations). Economic individualism’s basic premise is that the pursuit of self-interest and the right to own private property are morally defensible .. MORE

Quotes

Fear is in almost all cases a wretched instrument of government, and ought in particular never to be employed against any order of men who have the smallest pretensions to independency.

-Adam Smith

No legal plunder: This is the principle of justice, peace, order, stability, harmony, and logic. Until the day of my death, I shall proclaim this principle with all the force of my lungs (which alas! is all too inadequate).

-Frederic Bastiat Full Quote >>

… what a strong motive is this, to increase our frugality of public money; lest for want of it, we be reduced, by the multiplicity of taxes, or what is worse, by our public impotence and inability for defence, to curse our very liberty…

-David Hume Full Quote >>