Join Peter Bettke, a Distinguished University Professor of Economics at George Mason University, known for his expertise in the socialist calculation debate and transaction costs. He delves into how transaction costs shape market efficiency and everyday choices. Through historical anecdotes, he contrasts centralized planning, particularly in the Soviet Union, with individual market actions. Bettke also questions the potential of new technologies like AI to influence socialism and critiques economic models, encouraging a deeper understanding of the interplay between institutions and human behavior.
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Boettke's Soviet Origin Story
Peter Boettke's interest in the Soviet Union began with the 1972 Olympics.
He saw the US being "ripped off" in the basketball finals, sparking his dislike for the Soviet system.
insights INSIGHT
Institutional Approach to Soviet Economy
Boettke's study of the Soviet Union focused on property rights and transaction costs, an institutional approach.
This was influenced by his professors and Jim Buchanan's emphasis on starting analysis from the existing status quo.
insights INSIGHT
Bergson's Soviet Prediction
Economist Abram Bergson predicted in 1960 that the Soviet Union would surpass the US economically by the 1980s.
He based this on the Soviet's 7% annual growth rate and their ability to control investment, contrasting it with the "chaotic" West.
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Peter Boettke, Rosolino Candela, and Tegan Truitt's "The Socialist Calculation Debate" delves into the historical and theoretical arguments surrounding the feasibility of socialist economic planning. The book examines the contributions of key figures like Ludwig von Mises and Friedrich Hayek, who argued against the possibility of rational economic calculation under socialism. It also explores the responses from socialist economists and the evolution of the debate over time. The authors provide a comprehensive overview of the theoretical underpinnings and historical context of the debate, highlighting its contemporary relevance in discussions about market-based versus centrally planned economies. The book offers valuable insights into the challenges of coordinating economic activity without market prices.
The road to serfdom
Friedrich Von Hayek
In this influential book, Hayek argues that the abandonment of individualism and classical liberalism leads to a loss of freedom, the creation of an oppressive society, and ultimately, the tyranny of a dictator. He challenges the view that fascism and Nazism are capitalist reactions against socialism, instead positing that these ideologies share common roots in central economic planning and the empowerment of the state over the individual. The book emphasizes the dangers of collectivism and the importance of maintaining a free market system to preserve human freedom and dignity.
J.B. Say's Treatise of Economics
J.B. Say's Treatise of Economics
J.B. Say
The planned society
The planned society
Anne E. Freedman
Living Economics
Yesterday, Today, and Tomorrow
Peter Boettke
Applied Mainline Economics
Bridging the Gap between Theory and Public Policy
Matt Mitchell
Peter Boettke
The Fable of the Bees
or, Private Vices, Publick Benefits
Bernard de Mandeville
The Brass Ring
Bill Mauldin
In 'The Brass Ring: A Sort of a Memoir', Bill Mauldin shares his experiences and insights into his life as a cartoonist. The book offers a personal perspective on his career, from his early days to his later work as a political cartoonist. Mauldin's memoir provides a unique blend of humor and reflection on his journey.
Join economist Peter Boettke as he discusses how transaction costs impact market efficiency and our everyday decisions. We delve deep into historical examples, particularly the Soviet Union, to highlight the consequences of centralized planning versus individual market actions.
Through engaging anecdotes and rigorous analysis, Boettke reveals why understanding transaction costs is essential for navigating the complexities of modern economies. We also explore the evolving discourse surrounding socialism, questioning whether new technologies, such as AI, could revolutionize planning efforts. This episode is not just for economists; it's a critical discussion for anyone seeking to understand the interplay between institutions, information, and human behavior in shaping societal outcomes.
Our conversation unravels the myths surrounding economic models and their real-world applications, encouraging listeners to think critically about the institutions that govern our economy. Don’t miss out on this thought-provoking discussion that could reshape your perception of economics.
Peter Boettke:
Web page: https://economics.gmu.edu/people/pboettke
The Answer Is Transaction Costs 
