The Carbon Tax of Your Dreams Is Not on the Table

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"I'm willing to die on the carbon tax hill because I think it's better than all of the other dumb policies," he says. California recently sent every owner of a gasoline powered car, a $400 check. "We should just stop all of the many subsidies that we have for the perpetuation of gasoline."

Economist and political scientist Michael Munger of Duke University talks about industrial policy with EconTalk host Russ Roberts. Munger argues that in a democracy, the default outcome for industrial policy is crony capitalism--attempts to improve on that outcome either by appointing experts or eliminating cronyism are going to fail for political reasons. The conversation concludes with a discussion of the reliability of Munger's claim and what options are left for dissatisfied reformers.