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TANSTAAFL, There Ain’t No Such Thing as a Free Lunch

“When you start thinking about the value of your time, you realize that some activities that seem cheap are actually expensive.” At the start of every class I teach, I give my students what I call “The Ten Pillars of Economic Wisdom.” These pillars, I tell them, are the basis for a huge percent of .. MORE

Featured Article

The Nature and Significance of Marx’s: Capital: A Critique of Political Economy

“There are not two Smiths (the economist and the moral philosopher). There’s one. And the same holds for Marx. His efforts in Capital are best understood in light of his 1844 Manuscripts.“ About twenty years ago I purchased my three volumes of the definitive Charles Kerr edition of Karl Marx’s Capital from the Victor Kamkin .. MORE

Thinking Straight

Freedom and Duties, the Uninvited Guests

After the Second World War, there was a very heavy movement of people. It was mainly from the East to the West in Europe, in part voluntary and in part compulsory, and it was toward host countries that were acting as new homes. This movement of well over 10 million people, which gradually came to .. MORE

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Cost-benefit Analysis

Why I’m Not Very Worried about the 2032 Asteroid

By David Henderson

Books: Reviews and Suggested Readings

A Blueprint for Freedom: The Classical Liberal Path to Prosperity

By Vance Ginn

Energy, Environment, Resources

The King of New York

By Scott Sumner

International Trade

The Benefits of Free Trade Are at Risk

By David Henderson

International Trade

What Makes International Trade Unique: Politics

By Jon Murphy

Revealed Preference

Revealed preference as an analytical tool

By Scott Sumner

International Trade

The Tension in Discussions of Tariff Burdens

By David Henderson

Economic and Political Philosophy

The Basic Error About International Trade

By Pierre Lemieux

Monetary Policy

Stephanie King on Getting Rid of the Penny

By David Henderson

EconTalk

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econtalk-podcast

Andrew McAfee on the Geek Way

What’s different about companies that accomplish amazing things? Perhaps surprisingly, says Andrew McAfee of MIT, it has nothing to do with being agile or with better technology. Instead, they’ve developed what he calls “geek” cultures, which emphasize intense cooperation, rapid learning curves, and a lack of hierarchy. Listen as McAfee talks about his book The .. MORE

econtalk-extra

When Will YOU Grow Up?

In this episode, author and economist Arnold Kling returns to talk about his book, The Three Languages of Politics, which he originally spoke with host Russ Roberts about in this 2013 episode. Kling describes three “languages” and axes of opposition for progressives, conservatives, and libertarians in an effort to explain how we have begun to .. MORE

EconLog

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International Trade

The Benefits of Free Trade Are at Risk

  When I was a full-time economics professor at the Naval Postgraduate School, I always taught my master’s students about comparative advantage. I showed them that if two people were on a desert island and discovered each other, they could each have more by specializing in producing the good in which they had a comparative .. MORE

International Trade

The Tension in Discussions of Tariff Burdens

  Many people who discuss who actually pays for tariffs claim that they are paid solely by consumers. Even many economists, including co-blogger Pierre Lemieux, say that. But it’s important to look at what people are implicitly assuming when they make that claim. Here’s what I wrote in “Tariffs Will Hurt Canadians and Americans Alike,” .. 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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Life of Adam Smith

By John Rae

THE fullest account we possess of the life of Adam Smith is still the memoir which Dugald Stewart read to the Royal Society of Edinburgh on two evenings of the winter of 1793, and which he subsequently published as a separate work, with many additional illustrative notes, in 1810. Later biographers have made few, if .. MORE

Money and the Mechanism of Exchange

By William Stanley Jevons

In preparing this volume, I have attempted to write a descriptive essay on the past and present monetary systems of the world, the materials employed to make money, the regulations under which the coins are struck and issued, the natural laws which govern their circulation, the several modes in which they may be replaced by .. MORE

Book Reviews and Suggested Readings

Does Economics Need More than One Lesson?

By Michael D. Thomas

Henry Hazlitt’s 1946 book, Economics in One Lesson,1 remains relevant for readers to this day. In print since its publication, the book has sold more than a million copies, has been translated into 10 languages, and in 2019 became inspiration for a new book, Economics in Two Lessons: Why Markets Work So Well and Why .. MORE

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

Conversations

VIDEO

A Conversation with Harold Demsetz

A professor at the Graduate School of Business at the University of Chicago in the 1960s and a primary figure in Chicago School Economics and in the field of Law and Economics, Harold Demsetz has contributed original research on the theory of the firm, regulation in markets, industrial organization, antitrust policy, transaction costs, externalities, and .. MORE

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

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

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

Economic Regulation, Labor

Occupational Licensing

[An update of Occupational Licensing, by David S. Young.] Occupational licensing today directly affects more than one in five workers in the United States—up from one in 20 workers in the 1950s. This is nearly twice the fraction of workers belonging to a union and more than 15 times the fraction of workers receiving the .. MORE

Corporations and Financial Markets , Economics of Legal Issues, Money and Banking, The Marketplace

Stock Market

The price of a share of stock, like that of any other financial asset, equals the present value of the sum of the expected dividends or other cash payments to the shareholders, where future payments are discounted by the interest rate and risks involved. Most of the cash payments to stockholders arise from dividends, which .. MORE

Quotes

Private enterprise has produced the wealth of the world; yet it has suffered more calumny and obloquy than any other system. Its alternative, state economy, has retarded the production of wealth; yet it has been lauded and deified. “Corrigible Capitalism, Incorrigible Socialism”

-Arthur Seldon

The lesson I have to teach is this: Leave all creative energies uninhibited. Merely organize society to act in harmony with this lesson.

-Leonard E. Read Full Quote >>

We live together because social organization provides the efficient means of achieving our individual objectives and not because society offers us a means of arriving at some transcendental common bliss. Politics is a process of compromising our differences, and we differ as to desired collective objectives just as we do over baskets of ordinary consumption ...

-James M. Buchanan Full Quote >>