The Human Action Podcast

In this episode of the Human Action Podcast, Bob unpacks Lerner’s Symmetry Theorem—the classic result that, under tight conditions, an import tariff is equivalent to an export tax. He applies the framework to recent 100% China‑tariff headlines, explaining why the dollar might strengthen in theory yet sometimes weakens in practice once retaliation and policy signaling are factored in. The Human Action Podcast on Trump's Tariff Strategy: https://Mises.org/HAP522a The Lerner Symmetry Theorem: https://Mises.org/HAP522b

In his underappreciated work The Mystery of Banking, Murray Rothbard first explained how a regime of "free banking" would put strict limits on the ability of the private commercial banks to reduce their reserve ratios and inflate the money supply. Then Rothbard showed that the textbook operation of a central bank systematically neutralized the market's safeguards, and paved the way for credit expansion by a cartel of privileged private banks. The Mystery of Banking by Murray N. Rothbard: https://mises.org/HAP514a "How Private Banks Can Create Money, But Not Like the Fed Can" (Human Action Podcast): https://mises.org/HAP514b The Mises Institute is giving away 100,000 copies of Hayek for the 21st Century Get your free copy at https://Mises.org/HAPodFree

This week, Bob returns to the topic of how the United States could practically abolish the Federal Reserve and transition to a stable monetary system backed by gold. He clarifies common misconceptions about the consequences of ending the Fed, provides historical context for America’s monetary systems, and lays out a realistic path forward for monetary reform. Bob's Mises Article, "Putting the Country Back on Gold": https://Mises.org/HAP509a Understanding Money Mechanics: https://Mises.org/HAP509b

This week, Bob talks with economist and Mises Institute research fellow, David Howden, co-editor of The Next Generation of Austrian Economics: Essays in Honor of Joe Salerno. They discuss key chapters from the book, highlighting significant contributions from up-and-coming Austrian economists in areas such as monopoly pricing, international economics, and monetary theory. The Next Generation of Austrian Economics: Essays in Honor of Joseph T. Salerno: https://Mises.org/HAP507a David Gordon's Review of the Book in The Austrian: https://Mises.org/HAP507b

Bob hosts economist and distinguished senior scholar at the Mises Institute, Steve Hanke, to discuss his research on hyperinflations, currency board solutions, and the economic effects of the COVID lockdowns. Hanke explains the findings of his meta-analysis of lockdown impact and explains why Sweden's laissez-faire approach was vindicated. He also draws from decades of experience stopping hyperinflation globally, advocating currency boards and gold-backed solutions as effective alternatives to central banks. Professor Hanke's Austrian Economics Research Conference Lecture: https://Mises.org/HAP506a Professor Hanke's IEA Article, "Did Lockdowns Work? The Verdict on COVID Restrictions": https://Mises.org/HAP506b The Mises Institute is giving away 100,000 copies of Murray Rothbard’s, What Has Government Done to Our Money? Get your free copy at https://Mises.org/HAPodFree Find free books, daily articles, podcasts, lecture series, and everything about the Austrian School of Economics, at https://Mises.org​​. X ► https://x.com/mises/ Facebook ► https://www.facebook.com/mises.institute/ Instagram ► https://www.instagram.com/misesinstitute/ SoundCloud ► https://soundcloud.com/misesmedia/ Apple Podcasts ► https://podcasts.apple.com/us/artist/mises-institute/1280664810 Rumble ► https://rumble.com/c/c-2212754 Odysee ► https://odysee.com/@mises/ Podcasts ► https://mises.org/podcasts

Bob is joined by author George Ford Smith for a detailed examination into the life and legacy of Thomas Paine. They discuss how Paine’s writings, especially Common Sense and the American Crisis essays, mustered colonial support for independence and even influenced the outcome of the Revolutionary War. Smith explains Paine's life, from early setbacks and struggles in England to becoming a pivotal figure in America’s founding, and why his views ultimately sidelined his historical reputation. George's Mises Wire Article, "The Failure to Stop Thomas Paine": https://Mises.org/HAP505a George's Mises Wire Article, "Thomas Paine, Liberty's Hated Torchbearer": https://Mises.org/HAP505a

Vincent Geloso and Chandler Reilly have a new paper in which they use Rothbard's "Private Product Remaining" (PPR) as a lower bound on estimates of national output, to be contrasted with the convention GDP statistics as an upper bound. Bob has the authors explain Rothbard's proposal and how they are trying to introduce it to the economics profession. The Paper, "National Output Without Government?": https://Mises.org/HAP503a The Human Action Podcast Episode on Dubious Origins of GDP/GNP: https://Mises.org/HAP503b The Bob Murphy Show Episode With Alex Salter Criticizing "State Capacity": https://Mises.org/HAP503c

Economist Alex Tabarrok joins Bob to review Trump’s executive order on prescription drug pricing. They explore how price discrimination works in global pharmaceutical markets, the unintended consequences of importation policies, and why U.S. consumers often pay more—yet benefit most from drug innovation. Tabarrok also critiques the FDA’s role in delaying treatments and explains how regulatory reform, not price caps, could make healthcare more affordable and effective. Alex's Article, "Econ 101 is Underrated: Pharma Price Controls": https://Mises.org/HAP500a

Bob first reviews the standard libertarian case for legalizing drugs as the way to neutralize the Mexican drug cartels. Then he plays a recent clip where Dave Smith argues that drug prohibition leads to violence because (among other factors) you can't call the cops if someone steals your product. Bob argues that libertarians should stop making this (invalid) argument. Bob's Lessons for the Young Economist: https://Mises.org/HAP490a Part of the Problem Episode 1233: https://Mises.org/HAP490b

Josh Hendrickson is the chair of the Economics Department at the University of Mississippi. He recently brought to Twitter's attention a 41-page document released in November by Stephen Miran, the Harvard PhD whom Trump has nominated as the new chair of the Council of Economic Advisors. The document spells out a strategy of using tariffs and deregulation to Make America Great Again. The 41-Page Tariff Document: https://Mises.org/HAP487a Josh's X Thread Detailing the Document: https://Mises.org/HAP487b

Erick Brimen is the CEO of Honduras Próspera, which is described as a "start up city" that offers choice in regulatory treatment. It is an exciting application of libertarian theory to the messy real world of existing States. Find Out More about Honduras Próspera: https://Mises.org/HAP486a

Bob analyzes President Trump's recent remarks praising the revenue capacity of tariffs. He shows that historically, tariffs only bought in a small fraction of what income taxes currently yield, meaning federal spending would have to be sharply cut in order to phase out the income tax. HAPod Ep. 458 on Tariffs vs. Income Taxes: https://Mises.org/HAP485a Brian Domitrovic's Forbes Article, "Supply-Siders Battle Their Tariff Critics": https://Mises.org/HAP485b Trump on Tariffs: https://Mises.org/HAP485c The Chart Shown in this Episode: https://Mises.org/HAP485d

Murphy recently squared off against Nathan Tankus in a ZeroHedge debate focusing on Austrian economics vs. Modern Monetary Theory (MMT). Jonathan Newman watched the debate, and selected three clips highlighting key areas of dispute. Jonathan and Bob elaborate on the issues and anticipate possible MMT replies. Bob's ZeroHedge Debate with Nathan Tankus: https://Mises.org/HAP484a Bob and Jonathan's Tag-Team Mises University Lecture on MMT: https://Mises.org/HAP484b Bob's Quarterly Journal of Austrian Economics Paper on The Deficit Myth: https://Mises.org/HAP483c William Hutt's The Theory of Idle Resources: https://Mises.org/HAP484d

Lawrence McQuillan from the Independent Institute joins Bob to delve into the regulatory failures and mismanagement behind the wildfire crisis in California. They discuss the environmental policies that exacerbate risks, offer practical solutions to firefighting and prevention shortcomings, and examine the role of private stewardship in mitigating future disasters. This episode overall sheds light on how California’s political landscape and approach to wildfires continues to fuel a recurring tragedy. Lawrence's 2017 Article Detailing the CA's Fire Prevention Problem: https://Mises.org/HAP483a Lawrence’s 2019 Golden Fleece Report Submission on Mismanagement in CA: https://Mises.org/HAP483b Lawrence’s 2020 Interview on the Reasons Ca’s Fires Keep Happening: https://Mises.org/HAP483c Lawrence’s 2024 Article on Lessons From the Lahaina Wildfires:: https://Mises.org/HAP483d

Bob looks at the misconceptions and misuses of GDP accounting, explaining why this widely accepted metric often paints a misleading picture of economic health. Bob's 2009 Mises Article on Krugman: https://Mises.org/HAP482a Human Action Podcast Episode 481 on Business Cycle Theory: https://Mises.org/HAP482b Bob's Mises Article on GDP: https://Mises.org/HAP482c

Bob walks through diagrams from Hayek's famous LSE lectures to explain the Austrian view of the boom-bust cycle. The Diagrams Referenced in this Episode: https://Mises.org/HAP481a Hayek's Prices and Production: https://Mises.org/HAP481b Rothbard's Man, Economy, and State: https://Mises.org/HAP481c Bob's Study Guide to Man, Economy, and State: https://Mises.org/HAP481d Roger Garrison's PowerPoint on the Hayekian Triangle: https://Mises.org/HAP481e

Matt McCaffrey is a former Mises Institute research fellow with an expertise in the American economist (and Austrian fellow-traveler) Frank Fetter. He joins Bob to discuss his newly published journal article exploring the dispute Fetter had with the august British economist Alfred Marshall over the theory of rent. Dr. McCaffrey's Journal Article: https://Mises.org/HAP480a Frank Fetter's Capital, Interest, and Rent: https://Mises.org/HAP480b Matt McCaffrey, “Frank Fetter and the Austrian Tradition in the United States”: https://Mises.org/HAP480c

Keith Smith, MD is an anesthesiologist and founder of the cash-price Surgery Center of Oklahoma. In the wake of the shooting of UnitedHealth CEO Brian Thompson, Keith explains why US health care is so expensive and how to fix it. The Surgery Center of Oklahoma https://Mises.org/HAP479a The Story of the $100 Hospital Aspirin: https://Mises.org/HAP479b Primal Prescription: Surviving the 'Sick Care' Sinkhole: https://Mises.org/HAP479c

Using the heavily marketed movie "Wicked" as his news hook, Bob explains that the beloved Wizard of Oz movie involved an allegory of the bimetallism debates of the late 1800s, including William Jennings Bryan's famous "Cross of Gold" speech. Bob fills in the details about the Wizard of Oz lore, and then explains the economics of bimetallism in the United States. Bob's Book, Understanding Money Mechanics: https://Mises.org/HAP478a The Wikipedia Article on the Political Interpretations of The Wonderful Wizard of Oz: https://Mises.org/HAP478b The Wikipedia Article on the Wicked Novel: https://Mises.org/HAP478c

David Glasner is a UCLA-trained economist specializing in monetary theory and the history of economic thought. He has disagreed in print with Murphy’s take on the famous Sraffa-Hayek debate. David first explains his general views and then comments on the debate. Bob’s Paper, “A Problem With the Pure Time Preference Theory of Interest”: https://Mises.org/HAP477a David’s Paper “The Sraffa-Hayek Debate on the Natural Rate of Interest”: https://Mises.org/HAP477b