Econtalk

Paul Gregory of the University of Houston and a Research Fellow at Stanford University's Hoover Institution talks with EconTalk host Russ Roberts about Nikolai Bukharin's power struggle with Stalin and Bukharin's romance with Anna Larina, who was 26 years younger than Bukharin. Based on Gregory's book, Politics, Murder, and Love in Stalin's Kremlin, the conversation explores the career and personal life of Bukharin and how his career and personal life intersected. Bukharin was one of the key founders of the Bolshevik Revolution that led to the creation of the Soviet Union. In the late 1920s, he disagreed with Stalin's policy of collectivization. Stalin ruthlessly pursued him, eventually had him arrested, tried and convicted in the one of the infamous Show Trials, and executed. Anna, his wife, is then sentenced to the Gulag and later exiled. The power and poignancy of the story lies in Bukharin's refusal to believe that his old friend Stalin is out to kill him. Gregory also discusses Bukharin's economic polici

Arnold Kling of EconLog talks with EconTalk host Russ Roberts about the weird world of banking. Why do mortgages look the way they do? What do banks contribute to economic activity? How does regulation and legislation change the structure of what banks do? What would banks look like and the housing market look like if government were less involved? Kling discusses these questions and more including the hidden subsidies built into the current structure of the mortgage market. The conversation is an imaginative exercise in the microeconomics of finance and credit.

Bryan Caplan of George Mason University and blogger at EconLog talks to EconTalk host Russ Roberts about two books: Eugene Richter's Pictures of the Socialistic Future and F. A. Hayek's The Road to Serfdom. Both books warn against the dangers of socialism. Pictures of a Socialistic Future, published in 1891 is a dystopian novel imagining what life would be like after a socialist revolution. The Road to Serfdom, published in 1944, explores the links between economic freedom and political freedom and the inherent similarities between communism and fascism. Both books look at the German roots of centralized planning and the nature of the people who rise to power when the State is powerful. The conversation includes discussion of the these topics as well as the rule of law and the amount of state control of the economy in Nazi Germany.

Scott Sumner of Bentley University and the blog, The Money Illusion, talks with EconTalk host Russ Roberts about the last 30 years of economic policy and macroeconomic success and failure. Sumner argues that there was a neoliberalism revolution beginning in the 1980s around the world, an era of deregulation, privatization and falling marginal tax rates. Sumner argues that the states that liberalized the most had the most successful economic results. Roberts argues that it is difficult to assess the independent effect of various policy changes and points to many areas--in the United States at least--where government involvement increased in important parts of the economy, and Sumner responds. Sumner also talks about the importance of culture in economic performance.

Johanna Blakley of the University of Southern California talks with EconTalk host Russ Roberts about the fashion industry and the role of intellectual property. In the fashion industry there is limited protection for innovative designs and as a result, copying is rampant. Despite the ease of copying, innovation is quite strong in the industry and there is a great deal of competition. Topics discussed include the role of the street in generating new designs, the role of fashion in our lives, and whether the host of EconTalk has any hope of being fashionable. The conversation concludes with a discussion of the Grand Intervention, an urban park design competition, and the potential of Second Life for studying social trends.

Daniel Okent, author of Last Call: The Rise and Fall of Prohibition, talks about the book with EconTalk host Russ Roberts. They discuss how the 18th Amendment banning the manufacture, sale, and transport of intoxicating beverages came to pass in 1920, what life was like while it was in force, and how the Amendment came to be repealed in 1934. Okrent discusses how Prohibition became entangled with the suffrage movement, the establishment of the income tax, and anti-immigration sentiment. They also discuss the political economy of prohibition, enforcement, and repeal--the quintessential example of bootleggers and baptists.

Louis Menand of Harvard University talks with EconTalk host Russ Roberts about the state of psychiatry. Drawing on a recent article of his in the New Yorker, Menand talks about the state of knowledge in psychiatry and the scientific basis for making conclusions about mental illness and various therapies. Menand argues that the research record shows little difference between the effectiveness of psychopharmacology and talk therapies of various kinds in fighting depression. Neither is particularly successful in any one case. Other topics that are discussed include the parallels between economics and psychiatry in assessing causation, the diminished role of Freudianism in modern psychiatry, and the range of issues involved in using medication to avoid pain and hardship.

Gary Belsky, Editor-in-Chief at ESPN The Magazine, talks with EconTalk host Russ Roberts about his career path in journalism and the day-to-day life of editing a major American magazine. Belsky discusses some of the lessons of his early career as a business journalist. The discussion then turns to the magazine, its creativity and the perks and challenges of editing the magazine, managing the staff, and chatting up Serena Williams. The conversation closes with a discussion of Belsky's theory of trivia and some of his favorite trivia questions.

Russ Roberts, host of EconTalk, discusses his paper, "Gambling with Other People's Money: How Perverted Incentives Created the Financial Crisis." Roberts reflects on the past eighteen months of podcasts on the crisis, and then turns to his own take, a narrative that emphasizes the role of government rescues of creditors and the incentives this created for imprudent lending. He also discusses U.S. housing policy, particularly the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac and how the government's implicit guarantee of lenders to the GSE's interacted with housing policy to increase housing prices. This in turn, Roberts argues, helped create the subprime market, created mainly by private investors. The episode closes with some of Roberts's doubts about his narrative.

Ed Leamer of UCLA talks with EconTalk host Russ Roberts about the state of econometrics. He discusses his 1983 article, "Let's Take the 'Con' Out of Econometrics" and the recent interest in natural experiments as a way to improve empirical work. He also discusses the problems with the "fishing expedition" approach to empirical work. The conversation closes with Leamer's views on macroeconomics, housing, and the business cycle and how they have been received by the profession.

Nassim Taleb, author of The Black Swan and Fooled by Randomness, talks with EconTalk host Russ Roberts about his latest thoughts on robustness, fragility, debt, insurance, uncertainty, exercise, moral hazard, knowledge, and the challenges of fame and fortune.

Paul Romer of Stanford University talks with EconTalk host Russ Roberts about charter cities, Romer's idea for helping the poorest of the poor around the world. Romer envisions a city where the rules about property and safety and contract and so on are rules that allow individuals to flourish in an urban setting in contrast to the cities they live in now where so many aspects of economic and personal life are dysfunctional. Charter cities would be havens for the world's poor and could be created on uninhabited land in either rich or poor countries. This concept raises many difficult practical questions--some of them are discussed here along with how Romer came to be interested in creating the concept and how he hopes to bring it to reality.

Mike Munger of Duke University talks with EconTalk host Russ Roberts about the world of profit, money, love, gifts, and incentives. What motivates people, self-interest or altruism? Both obviously. But how do these forces interact with each other? Does relying on one always provide a stronger incentive than the other? Do charities, for-profit businesses or government agencies do a better job providing a good or service? Munger and Roberts have a wide-ranging discussion across these issues including a section where they discuss whether Christmas gift-giving and gift-giving in general is inefficient.

Diane Ravitch of NYU talks with EconTalk host Russ Roberts about the ideas in her new book, The Death and Life of the Great American School System: How Testing and Choice Are Undermining Education. Ravitch argues that the two most popular education reform movements, accountability and choice, have had unintended consequences that have done great harm to the current generation of students. She argues that the accountability and testing provisions in legislation like No Child Left Behind and similar reforms have actually corrupted the testing process, taken time away from subjects other than math and reading, and failed even to boost success in math and reading. She argues that the empirical record has provided little evidence that school choice as it has been implemented has boosted achievement. The discussion closes with a discussion of what reforms might indeed make a difference.

Yochai Benkler of Harvard University talks to EconTalk host Russ Roberts about net neutrality, access to the internet, and innovation. Benkler argues in favor of net neutrality and government support of broadband access. He is skeptical of the virtues of new technology (such as the iPad) fearing that they will lead to less innovation. The conversation closes with a discussion of commons-based peer production--open source software and Wikipedia.

Arthur De Vany, of the University of California, Irvine, and creator of Evolutionary Fitness, talks with EconTalk host Russ Roberts about performance-enhancing drugs in baseball and Evolutionary Fitness, De Vany's ideas about diet and fitness. In the first part of the conversation, De Vany argues that there is little physiological or statistical evidence that steroid use increases home run totals in baseball. The second part of the conversation turns to De Vany's theories of diet and exercise. De Vany argues that our diet and exercise regime should take account of our evolutionary origins, an earlier time when we ate no grains and our exercise was a mix of intense activity punctuated by much milder activity. He argues that jogging is unhealthy and that we would live longer and feel better if we followed a different exercise routine than most Americans do today.

Steve Meyer, music industry veteran and publisher of the Disc and Dat Newsletter, talks with EconTalk host Russ Roberts about the evolution of the music industry and the impact of the digital revolution. After discussing his background and experience in marketing at Capitol Records and elsewhere, Meyer argues for the virtues and potential of the internet in enhancing the music industry. He points out that the internet allows numerous artists to make money through their music and particularly enhances revenue from live performances. He describes the challenges facing record companies as a failure of imagination and suggests that the full potential of the internet as a distribution channel has yet to be fully exploited.

Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts about public choice: the application of economics to the political process. Boudreaux argues that political competition is a blunt instrument that works less effectively than economic competition. One reason for this bluntness is the voting process itself--where intensity does not matter, only whether a voter prefers one candidate to the other. A second reason is that political outcomes tend to be one-size-fits-all, which often leads to dissatisfaction. Boudreaux defends the morality of not voting, while Roberts, who does vote from time to time, concedes that one's vote is almost always irrelevant in determining the outcome.

Katherine Newman, Professor of Sociology at Princeton University, talks with EconTalk host Russ Roberts about Newman's case studies of fast-food workers in Harlem. Newman discusses the evolution of their careers and fortunes over time along with their dreams and successes and failures. The conversation concludes with lessons for public policy in aiding low-wage workers.

Barry Ritholtz, author of Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy, talks with EconTalk host Russ Roberts about the history of bailouts in recent times, beginning with Lockheed and Chrysler in the 1970s and continuing through the current financial crisis. In addition to the government role in aiding ailing companies, Ritholtz also looks at the role of the Fed in discouraging prudence through its efforts to keep asset prices and the stock market at high levels. The conversation closes with a discussion of what Ritholtz has learned from the crisis.