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Virginia Political Economy: James Buchanan’s Journey

James Buchanan Virginia Political Economy was born in the foyer of the Social Science Building at the University of Chicago early in 1948. In a casual conversation with a fellow graduate student, Warren Nutter, I discovered that we shared an evaluation and diagnosis of developments in Economics, the discipline with which we were about to .. MORE

Book Review, Liberty Classics

Universal Economics: Necessary Reading for the Well-Trained Economist

A Liberty Classics Book Review of Universal Economics, by Armen Alchian and William Allen.1 What do you do when economists stop believing in economics? The “dismal science” never merited its dreary epithet, but trends in economics education at the graduate and undergraduate levels could change that. Ph.D. courses are saturated with hyper-mathematical models that are .. 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

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Books: Reviews and Suggested Readings

Bryan Caplan on Antitrust

By Scott Sumner

Liberty

Jeff Hummel on the American Revolution

By David Henderson

Law and Economics

Transaction Costs and the Law

By Jon Murphy

Economic Education

Cash Transfers: Cutsinger’s Solution

By Bryan Cutsinger

Political Economy

The Marriage of Jeff Bezos in Venice

By Pierre Lemieux

Income and Wealth distribution

Which Class Are You In?

By Scott Sumner

Economic and Political Philosophy

Fascism, the Right, and the Left

By Pierre Lemieux

Adam Smith

My Weekly Reading for June 29, 2025

By David Henderson

EconTalk

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econtalk-extra

Is the American Dream Dead? It’s complicated.

You’ve no doubt heard the news that millions of American live in extreme poverty, in conditions akin to those in the world’s poorest countries. But is it true? In this episode, EconTalk host Russ Roberts welcomes Bruce Meyer to explore this claim. Meyer suggests that a lot of statistical flaws are to be found in .. MORE

econtalk-podcast

The Deceptive Power of Maps (with Paulina Rowinska)

How can the state of Colorado have nearly 700 sides? Why is a country’s coastline as long as you want it to be? And how is it that your UPS driver has more routes to choose from than there are stars in the universe? Listen as mathematician Paulina Rowinska talks with EconTalk’s Russ Roberts about .. MORE

EconLog

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Economic Education

Cash Transfers: Cutsinger’s Solution

Question: One common argument against public assistance taking the form of direct cash handouts is that the recipients will use the money to buy things that taxpayers find objectionable, e.g., illicit drugs, gambling, etc. To avoid this outcome, the argument goes, public assistance should take the form of in-kind transfers, e.g., food, housing, medical care, .. MORE

Macroeconomics

Cochrane on Monetary Policy

People occasionally ask me how my views on economics differ from those of John Cochrane. In a recent Cochrane post on Fed independence, I found a paragraph that nicely illustrates how our views differ: Congress also gave the Fed limited tools. The Fed can only buy and sell securities and set interest rates. The Fed .. MORE

LIBERTY CLASSICS SERIES

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

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Book Titles

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Cost and Choice: An Inquiry in Economic Theory

By James M. Buchanan

You face a choice. You must now decide whether to read this Preface, to read something else, to think silent thoughts, or perhaps to write a bit for yourself. The value that you place on the most attractive of these several alternatives is the cost that you must pay if you choose to read this .. MORE

On Liberty

By John Stuart Mill

THE SUBJECT of this Essay is not the so-called Liberty of the Will, so unfortunately opposed to the misnamed doctrine of Philosophical Necessity; but Civil, or Social Liberty: the nature and limits of the power which can be legitimately exercised by society over the individual. A question seldom stated, and hardly ever discussed, in general .. MORE

Book Reviews and Suggested Readings

He Tells Us It’s the Institutions

By Arnold Kling

[I]nstitutions should be formative… they should act as links between the personal and the social. What we need, then, is a recommitment to such an understanding of institutions. Our challenge is less to calm the forces that are pelting our society than to reinforce the structures that hold us together. That calls for a spirit .. MORE

Intellectuals Caught in the Middle

By Arnold Kling

Trump crushed his challengers in the New Hampshire primary, leading to widespread panic among many elite conservatives, and the birth of the #nevertrump hashtag that would give the anti-Trump movement its name. Yet Republican primary voters weren’t paying attention. Despite overwhelming opposition to Trump among the conservative intellectual elite, Republican voters had their own ideas .. 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 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

Econlib Videos

Intellectual Portrait Series

Conversations with some of the most original thinkers of our time

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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

Basic Concepts

Unintended Consequences

The law of unintended consequences, often cited but rarely defined, is that actions of people—and especially of government—always have effects that are unanticipated or unintended. Economists and other social scientists have heeded its power for centuries; for just as long, politicians and popular opinion have largely ignored it. The concept of unintended consequences is one .. MORE

Taxes, Government Policy

Progressive Taxes

If, as Oliver Wendell Holmes once said, taxes are the price we pay for civilized society, then the progressivity of taxes largely determines how that price varies among individuals. A progressive tax structure is one in which an individual or family’s tax liability as a fraction of income rises with income. If, for example, taxes .. MORE

Corporations and Financial Markets , Government Policy, Taxes

Corporate Taxation

The corporate income tax is the most poorly understood of all the major methods by which the U.S. government collects money. Most economists concluded long ago that it is among the least efficient and least defensible taxes. Although they have trouble agreeing on—much less measuring with any precision—who actually bears the burden of the corporate .. MORE

Quotes

One of the great achievements of the market process is that it does not suffer fools gladly, that it rather quickly takes the control of resources from the hands of the incompetent.

-Benjamin A. Rogge and Pierre F. Goodrich

… millions of human beings have had a hand in my creation, no one of whom even knows more than a very few of the others.

-Leonard E. Read Full Quote >>

It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest.

-Adam Smith Full Quote >>