The Economist Next Door

In this episode of The Economist Next Door, host Paul Mueller sits down with Nobel Prize–winning economist Vernon Smith to explore how markets actually work—and how people really behave within them. Smith, who received the Nobel Prize in Economics in 2002 for pioneering experimental economics, explains how simple market experiments reveal powerful truths: prices emerge from decentralized interactions, markets converge toward equilibrium even with limited information, and people learn quickly through exchange and experience. The conversation goes beyond economics into philosophy, drawing on Adam Smith's The Theory of Moral Sentiments and The Wealth of Nations. Smith argues that economic order is rooted in moral psychology, social norms, and bottom-up rules formed through everyday human interaction. From asset bubbles to spontaneous order, this episode offers a deeper look at markets not just as engines of wealth, but as systems of discovery, learning, and human cooperation. SHOW NOTES WN - ​An Inquiry into the Nature and Causes of the Wealth of Nations [Cannan Edition (Vol. 1 & 2)](https://oll.libertyfund.org/titles/smith-an-inquiry-into-the-nature-and-causes-of-the-wealth-of-nations-cannan-ed-in-2-vols TMS - https://www.econlib.org/library/Smith/smMS.html Nobel lecture - https://digitalcommons.chapman.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1061&context=esi_pubs Bubbles, Crashes, and Endogenous Expectations in Experimental Spot Asset Markets - https://www.academia.edu/17750757/Bubbles_Crashes_and_Endogenous_Expectations_in_Experimental_Spot_Asset_Markets Asset Bubbles, Learning and Information - https://www.academia.edu/17767320/Stock_market_bubbles_in_the_laboratory

In this episode of The Economist Next Door, Paul Mueller is joined by AIER colleagues Julia Cartwright and Ryan Yonk for a wide-ranging conversation on the past, present, and future of American energy. They explore how energy is produced in the United States, why the diversity of U.S. energy sources makes the system unusually robust, and how regulation and subsidies can undermine that strength. The trio compares US and Chinese energy systems, unpacks the politics of "green" mandates and subsidies, and explains why nuclear power—especially advanced and small modular reactors—may be essential for both reliability and decarbonization. Along the way, they discuss the Trump administration's recent energy moves, the backlog of projects waiting to connect to the grid, and why letting markets—not politicians—pick winners is crucial for innovation and affordability. Key Topics Why energy is central to prosperity, productivity, and everyday life How the US generates its electricity today (natural gas, nuclear, coal, wind, solar, hydro) What makes the US energy system unusually robust compared with other countries How global shocks (like conflict near Iran and the Strait of Hormuz) affect US prices US vs. China: production numbers, reliability, central planning, and data skepticism Why regulatory layering, permitting delays, and interconnection bottlenecks stall new projects The mixed legacy of subsidies and mandates for wind, solar, and other favored technologies The role of utilities, "natural monopolies," and why customers often lack real choice How deregulation and competition in some gas and power markets have benefited consumers Nuclear power's promise, the rise of advanced and small modular reactors, and why the US risks falling behind The Trump administration's recent actions on drilling permits, nuclear, and renewable subsidies Why technology-neutral, market-driven policy is better than "energy favoritism" Key Takeaways The United States has a broad, diverse mix of energy sources, which provides resilience even when global markets are disrupted. Heavy regulatory layering, slow permitting, and grid interconnection hurdles have created a large backlog of viable projects that could otherwise expand capacity and lower prices. Subsidies and mandates—whether for fossil fuels, wind, solar, or nuclear—distort markets, pick winners and losers, and often raise costs for consumers while reducing innovation. Comparisons to China's headline energy statistics can be misleading; central planning, unreliable rural grids, and questionable data all complicate the picture. Nuclear energy, especially advanced and small modular designs, is a promising path for abundant, low-carbon power, but US policy on fuel, safety rules, and subsidies heavily shapes what gets built. Long-run energy reliability and affordability are best served by open markets, clear and limited safety regulation, and allowing entrepreneurs and consumers—not bureaucrats—to decide the energy mix. Featured Guests Julia Cartwright – Senior Fellow at AIER, specializing in energy policy and technology-neutral regulation. She has recently written on ending "energy favoritism" and the risks of US policy falling behind China in advanced nuclear. Ryan Yonk – Senior Fellow at AIER and director of student programs, working in the public-choice tradition with a focus on energy and environmental regulation. He is coauthor of The Reality of American Energy: The Hidden Costs of Electricity Policy. Resources & Links Mentioned Ryan Yonk, The Reality of American Energy: The Hidden Costs of Electricity Policy Julia R. Cartwright, "Ending the Era of Energy Favoritism: How Technology-Neutral Policy Can Unlock the US Power Grid," American Institute for Economic Research Julia R. Cartwright, "America Risks Losing the Advanced Nuclear Race to China," AZ Free News • Ryan Yonk, The Reality of American Energy: The Hidden Costs of Electricity Policy https://www.leslibraires.ca/livres/the-reality-of-american-energy-the-hidden-costs-of-electricity-policy-9781440853913 Julia R. Cartwright, "Ending the Era of Energy Favoritism: How Technology-Neutral Policy Can Unlock the US Power Grid," American Institute for Economic Research, 2026.https://aier.org/article/ending-the-era-of-energy-favoritism-how-technology-neutral-policy-can-unlock-the-us-power-grid/ Julia R. Cartwright, "America Risks Losing the Advanced Nuclear Race to China," AZ Free News, January 19, 2026. https://azfreenews.com/2026/01/julia-cartwright-america-risks-losing-the-advanced-nuclear-race-to-china/

In this episode of The Economist Next Door, host Paul Mueller is joined by AIER research fellows Thomas Savidge and Julia Cartwright to examine the push for wealth taxes in the United States and around the world. They explain how wealth taxes differ from traditional taxes on income and consumption, and what history reveals about their real-world effects. Drawing on examples from California, New York, and Europe, the discussion highlights capital flight, revenue volatility, and the unintended consequences of taxing accumulated wealth. The episode also tackles common claims about billionaires "not paying their fair share," unpacks the complexity of the tax code, and explains why taxes aimed at the ultra-wealthy rarely stay confined to their original targets. From the Smaug fallacy to the Tiebout Effect, the conversation introduces listeners to the economic ideas behind the debate—and shows how a seemingly "common sense" policy can carry serious consequences for growth, investment, and living standards.

How did a once-small federal government come to control a third of state budgets and shape everyday life across the country? Host Paul Mueller talks with AIER scholars Tom Savidge and Dave Hebert about the history of federal funding to states—from the Founding through the Great Society—and how Washington gradually became the dominant force in American governance. As the saying goes, he who pays the piper calls the tune. Listen in to discover the real impact of federal dollars on state decision-making. Key Themes: * **The Piper Principle:** Why "voluntary" federal money is never actually free. * **The Identity Crisis:** How mobility and federal expansion have shifted our loyalty from state to nation. * **Legalized Money Laundering:** A deep dive into the $10,000-for-$1,000 Medicaid matching game that is bankrupting the federal treasury while subsidizing state-level expansion. Recommended Reading: A Brief History of Federal Transfers to the States by Thomas Savidge Understanding Medicaid by Thomas Savidge The Return of Quantitative Easing by Paul Mueller Defusing the Social Security Time Bomb by Thomas Savidge Fusionism: Past, Present, and a Conservative Liberal Future by Paul Mueller

On the 250th anniversary of The Wealth of Nations, host Paul Mueller sits down with economists Dan Klein, professor at George Mason University and chief editor of Econ Journal Watch, and Eric Matson, senior research fellow at the Mercatus Center and lecturer at Catholic University, to explore Adam Smith's enduring impact. They discuss Smith as both an academic and a moral authority, the lessons of The Wealth of Nations for modern economics and public policy, the invisible hand, the limits of government intervention, and why Smith's insights on markets, human behavior, and social coordination still matter today. Along the way, the thinkers break down the real Adam Smith—not the caricature or "free-market fundamentalist" often invoked in modern debates, but a nuanced and deeply thoughtful observer of human nature and human action.

Host Paul Mueller interviews AIER President Dr. Sam Gregg and AIER scholar Dr. Dave Hebert on a landmark Supreme Court decision that reshapes presidential tariff authority. In Learning Resources v. Trump, the Court ruled 6–3 that the president cannot use the International Emergency Economic Powers Act (IEEPA) as a blank check to impose tariffs. Paul and his guests break down why the ruling is a win for the rule of law, explore whether tariffs are better seen as foreign policy or taxation, and explain what the "major questions doctrine" really means. They also discuss trade deficits and possible legal workarounds. Will the Supreme Court's ruling prove to be a constitutional reset or just a minor hurdle to the president's trade agenda? Listen and find out!

Paul Mueller breaks down the Supreme Court's ruling limiting presidential tariff power with Tom Savidge and Julia Cartwright, and what it means for executive authority. Then, Tom, Pete Earle, and Jason Sorens dive into America's housing shortages, rising insurance costs, and exploding public pension obligations—exploring how political promises today can saddle taxpayers across generations. Debt, policy activism, and uncertainty collide—who really pays the price?

What's driving the growing infighting on the political right? In this episode of The Economist Next Door, host Paul Mueller is joined by Nathan W. Schlueter and Nikolai Wenzel to revisit fusionism—the postwar effort, associated with Frank Meyer, to reconcile liberty and virtue, free markets and moral order, drawing on a tradition that includes Adam Smith, Edmund Burke, and Alexis de Tocqueville. They examine the Cold War roots of the libertarian–conservative alliance, the rise of post-liberalism, and current disputes over immigration, marriage, and the administrative state. Can liberty and virtue coexist? And does the American founding still offer common ground?

In this episode of The Economist Next Door, host Paul Mueller is joined by AIER economists Dave Hebert and Julia Cartwright to introduce the Defending Freedom, Combating Collectivism team. They examine the rise of collectivism on both the right and left, how political incentives fuel cronyism and redistribution, and why politicians so often pick winners and losers at consumers' expense. What does this growing struggle mean for economic freedom, human flourishing, and the American future?

In the debut episode of The Economist Next Door, host Paul Mueller (Senior Research Fellow at AIER) sits down with Samuel Gregg, President of the American Institute for Economic Research, to peel back the layers of modern economic debate. Moving beyond the dry jargon of spreadsheets and data points, Mueller and Gregg explore why the battle for free markets has shifted from a technical argument to a deeply moral one. They discuss the rising tide of "collectivism" appearing on both ends of the political spectrum and why the "everyman" should care about the philosophical foundations of trade, sound money, and individual liberty.

What is wealth? Why shouldn't the government own stakes in corporations? And what are some non-market problems with tariffs? Richard Stern joins the show today to discuss. Richard Stern is Acting Director of the Thomas A. Roe Institute for Economic Policy Studies and Director of the Grover M. Hermann Center for the Federal Budget at The Heritage Foundation.

How much have state budgets been taken over by the federal government? Is anything wrong with the Bureau of Labor Statistics? And what's nationalist about trade surpluses? Tony Woodlief joins Econception to discuss. Tony Woodlief is State Policy Network's Senior Executive Vice President and Senior Fellow for SPN's Center for Practical Federalism.

Are the economic doomers right? How does government policy influence which industries thrive in America? Can rich people who think their taxes are too low pay more to the government instead? Jeremy Horpedahl joins Econception to discuss these questions and more. Dr. Jeremy Horpedahl is the Director of ACRE and an associate professor of economics at the University of Central Arkansas.

What's the purpose of business? What's the purpose of government? Has 20 years of higher education spending led to better student performance? Dominic Pino is joined by David Bahnsen to explore these questions on the latest episode of Econception. David Bahnsen is the founder and managing partner of The Bahnsen Group, a national private wealth management firm managing over $4 billion in client assets. Prior to launching The Bahnsen Group, he spent eight years as a Managing Director at Morgan Stanley and six years as a Vice President at UBS. Bahnsen is also a contributor to several prominent outlets and a best-selling author.

What's going on with the market reforms in Argentina? What have other countries done to fix their social security programs? And how did FedEx change the world? Manhattan Institute Fellow Daniel DiMartino joins Econception to discuss.