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.

What's going on with the Republican tax bill? How different can state budgets really be from one another? And how does Amtrak justify its barely used services? Adam Michel joins Econception to discuss. Adam N. Michel is director of tax policy studies at the Cato Institute, where he focuses on analyzing the economic and budgetary effects of taxation in the United States.

Where do Trump's tariffs stand legally? Are foreign students banned from American universities? And are we really going to have to prove that mind control doesn't work again in New York City? Dominic Dino works through these questions and more on Econception.

What's going on with the tariff deals? How free trade really is the United States? And what have the Popes taught about socialism? Dave Hebert joins Econception to discuss these questions and more with Dominic Pino. Dave Hebert, Ph.D, is a senior research fellow at AIER. Dr. Hebert's research has been published in academic journals such as Public Choice, Constitutional Political Economy, and The Journal of Public Finance and Public Choice and popular outlets such as The Wall Street Journal, New York Times, Investor's Business Daily, RealClearPolicy, RealClearMarkets, The Hill, and The Daily Caller.

What's the matter with Medicaid? Have Germany's manufacturing policies been successful? And are Greece and Argentina the new role models for fiscal responsibility? We look through those questions today with Brian Blase and Paul Winfree. Brian Blase, Ph.D., is the President of Paragon Health Institute. Brian was Special Assistant to the President for Economic Policy at the White House's National Economic Council (NEC) from 2017-2019, where he coordinated the development and execution of numerous health policies and advised the President, NEC director, and senior officials. After leaving the White House, Brian founded Blase Policy Strategies and served as its CEO. Dr. Paul Winfree is the Founder, President, and CEO of the Economic Policy Innovation Center in Washington, D.C. He is also a Research Affiliate at the Queen's University Centre for Economic History (Queen's University Belfast), and an Advisor at the Centre for Economics, Policy and History (Trinity College Dublin and Queen's University Belfast). His research focuses on public finance, the political economy, and U.S. economic history.

What's the case for free trade? What's the history of free trade in the United States? And is undoing free trade a sound grand strategy for the United States? Dominic Pino looks through these questions on the latest episode of Econception.

How can government policy be more family-friendly? Can socialism exist without coercion? How did bad monetary policy encourage DEI and ESG? Susannah Petitt joins Dominic to discuss. Susannah Petitt is a Social Mobility Fellow at Young Voices and Programs Manager at the Mercatus Center.

Why does public transit keep costing the government more money? Why is cheaper goods the same thing as higher pay? And why don't most people have pensions anymore? Dominic Pino sits down with Marc Scribner to look through these questions on this episode of Econception. Marc Scribner is a Senior Transportation Policy Analyst at Reason Foundation.

Do Europeans work hard enough? Why do you pay higher interest rates than banks? And can a Hawaiian rum company end one of our worst protectionist laws? Garett Jones joins Dominic Pino to discuss these questions on the latest episode of Econception. Garett Jones is a professor of economics at George Mason University.

What does "GDP" actually mean? Are European value-added taxes really tariffs on America? Does the US need a sovereign wealth fund? Dominic Pino discusses these questions and more on the latest episode of Econception.

With Donald Trump's return to the White House, the Department of Government Efficiency (DOGE) has been established in partnership with Elon Musk and is getting to work. What is going on with DOGE so far, and what changes have already happened? Joining Econception today to discuss this is Dr. James Broughel. Dr. James Broughel is a Senior Fellow at the Competitive Enterprise Institute. Dr. Broughel is an accomplished economist whose expertise lies in regulatory institutions and the impact of regulations on economic growth. He is the author of the book Regulation and Economic Growth: Applying Economic Theory to Public Policy and is a regular columnist at Forbes, where he writes on topics such as energy and cryptocurrency.

How should free market supporters think about welfare programs? Is road congestion pricing a good idea? And what's the matter with the Endangered Species Act? Dominic Pino discusses this on the latest episode of Econception.

How are local governments blocking churches from caring for the homeless? What's the difference between a government shutdown and hitting the debt ceiling? And how do markets work to get Christmas presents on time? Christian Britschgi joins the show to discuss. Christian Britschgi is a reporter at Reason who covers property rights, housing policy, transportation policy, and regulation.

What is financialization? What do people think of healthcare in the United States? And what is the relationship between socialism and violence? David Bahnsen joins Dominic today to discuss. 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.

How to special interests influence trade policy? Is Milton Friedman making a comeback? And why is milk never on sale? Scott Lincicome joins Econception with Dominic Pino to discuss. Scott Lincicome is the vice president of general economics and Cato Institutes's Herbert A. Stiefel Center for Trade Policy Studies. He writes on international and domestic economic issues, including international trade; subsidies and industrial policy; manufacturing and global supply chains; and economic dynamism.

What are the economics of podcasts? Is the CHIPS Act working? And are China's corporate tax rates better than ours? Emily Jashinsky joins Dominic today to discuss. Emily Jashinsky is UnHerd's Washington D.C. Correspondent and a writer at several outlets, including The Federalist.

Why is the government spending so much more money than it was five years ago? How do tariffs hurt the people they're supposed to help? And is Canada poor? Matthew Dickerson joins the podcast today to discuss. Matthew D. Dickerson is the Director of Budget Policy at the Economic Policy Innovation Center (EPIC). Dickerson is recognized as an expert on fiscal policy issues, including the budget, appropriations, and entitlement reform.

What is the impact of immigration on the federal budget? How does the East Coast Dockworker's Union work? And are union bosses paid too much? Daniel Di Martino joins Dominic Pino to discuss. Di Martino is a PhD candidate in Economics at Columbia University and a graduate fellow at the Manhattan Institute—where he focuses on high-skill immigration policy.

What are popular economic fallacies, and why are they wrong? What is holding Africa back from economic development? And Cuba still has bread rations? Dominic breaks these questions down on today's episode of Econception.

Why is the national accounting system so valuable? Can we trust economic data not to be politically biased? And what does it mean to say that complexity is a subsidy? Joining Dominic today is William Beach to discuss. Dr. Beach is a Senior Fellow at the Economic Policy Innovation Center and the former Commisioner of the U.S. Bureau of Labor Statistics.

Why is the national debt a bigger issue now than it was in the past? Is it a problem that people making minimum wage can't afford a two-bedroom apartment? What is the economic rationale behind gift cards? Brian Riedl joins Dominic Pino to discuss. Brian Riedl is a senior fellow at the Manhattan Institute, focusing on budget, tax, and economic policy. A prolific researcher, Riedl has published nearly 600 studies and articles since 2001 on federal spending, taxes, deficits, and economic policy, and has assisted in the writing of several New York Times best-selling books.

How should we think about the relationship between free trade and national security? How did economists come to think of free trade as a good thing? Did Paris make good use of $1.5 billion to clean up the Seine River for the Olympics? Samuel Gregg joins Econception today to discuss. Samuel Gregg is the Friedrich Hayek Chair in Economics and Economic History at the American Institute for Economic Research. He has a D.Phil. in moral philosophy and political economy from Oxford University, and an M.A. in political philosophy from the University of Melbourne.

Do we still need to create jobs? What are labor unions, and how do they actually work? Scott Lincicome joins host Dominic Pino to discuss all things labor market. Scott Lincicome is the Cato Institute's vice president of general economics and Cato's Herbert A. Stiefel Center for Trade Policy Studies. He writes on international and domestic economic issues, including international trade; subsidies and industrial policy; manufacturing and global supply chains; and economic dynamism.

Why does the money supply matter? Do most Americans hate their jobs? And how can it make sense to spend millions of dollars on an election you'll win anyway? Joining the show today is Patrick Horan to discuss. Patrick Horan is a research fellow at the Mercatus Center at George Mason University, where he focuses on monetary policy and the Federal Reserve System. His writings have been published in Barron's, The Hill, City Journal, National Review Online, US News & World Report, Discourse, and InsideSources.

What is the state pension fund crisis? Why are government subsidies for internet service a bad idea? Did tariffs cause the Great Depression? Dominic Pino and Thomas Savidge sit down to discuss these questions and more. Thomas Savidge is a Research Fellow at the American Institute for Economic Research. He earned his Master in Public Policy from George Mason University and a Bachelor of Arts in Political Science and Philosophy from SUNY New Paltz.

How does the tax code screw up healthcare? On the latest episode of Econception, Theo Merkel sits down with Dominic to discuss how healthcare and health insurance are closely tied to tax policy, and how the tax code can be changed to address some of our healthcare system's biggest problems. Theo Merkel is a senior fellow at the Manhattan Institute, focusing on improving the sustainability of U.S. entitlement programs, the effectiveness of our safety net, the international competitiveness of U.S. industry, the balance between the federal government and the states, and the transition from policy development to implementation.

Does worker pay track with worker productivity? Do bureaucrats represent the American people? What does smuggling alcohol have to do with supporting tariffs? Scott Winship sits down with Dominic Pino to discuss these questions and more on this episode of Econception. Scott Winship is the Director of the Center for Social Mobility and Opportunity at the American Enterprise Institute.

Tariffs are one of those economic topics that never seem to go away. With new tariffs from the Biden Administration and a proposed 10% universal tariff for President Trump's potential second term, we have to ask: What's the real story behind them? Are they rightfully understood in our discourse today? What would the impact of more tariffs be? To discuss these questions, host Dominic Pino sat down with tax policy expert Erica York. Erica York is Senior Economist and Research Director with Tax Foundation's Center for Federal Tax Policy. Her analysis has been featured in The Wall Street Journal, The Washington Post, Politico, and other national and international media outlets.

Why is 2025 an important year for government spending? Does the rise of China mean free trade no longer applies? Is it a good idea to devalue the U.S. dollar? Paul Winfree sits down with host Dominic Pino to discuss these questions. Dr. Paul Winfree is an economist and a trusted public policy advisor. He has served in top management and policy roles in the White House, the US Senate, and in think tanks. Currently, he serves as President and CEO of the Economic Policy Innovation Center in Washington, DC.

What is industrial policy, and does it work? What really is the "China shock"? Do the rich pay their fair share? Dr. Samuel Gregg sits down with host Dominic Pino to discuss these questions. Samuel Gregg is the Friedrich Hayek Chair in Economics and Economic History at the American Institute for Economic Research. He has a Doctorate in moral philosophy and political economy from Oxford University, and an M.A. in political philosophy from the University of Melbourne.

How does trade policy actually get made? Does steel need protectionism? And what is the planner mindset? Dominic Pino sits down with Ed Gresser to discuss these questions and more. Ed Gresser is Vice President and Director for Trade and Global Markets at the Progressive Policy Institute. Previously, he worked at the U.S. Trade Representative's Office during both the Barack Obama Administration and the Donald Trump Administration.