Economics Explored

Slouching Towards Utopia is the new book from Brad DeLong, Professor of Economics at University of California, Berkeley. Professor DeLong joins show host Gene Tunny to discuss the long twentieth century from 1870 to 2010. The conversation considers the three factors which came together to massively raise living standards post-1870, and how nonetheless we’ve struggled to achieve the Utopia that once appeared possible. The “neoliberal turn” beginning in the 1970s and 1980s is considered, and DeLong explains why he writes that “Hayek and his followers were not only Dr. Jekyll–side geniuses but also Mr. Hyde–side idiots.”You can buy Slouching Towards Utopia via this link:https://amzn.to/3TK4evmPlease get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. HighlightsThe big story after 1870: technological progress becomes rapid, the technological competence of the human race globally doubles every generation. [6:50]The importance of industrial research labs in the big story since 1870 [16:35]The role of the modern corporation [18:23]Globalization in the late nineteenth century and pre WWI [23:25]How bad governance can make a country very poor very quickly [29:09]The neoliberal turn [35:56]Prof. DeLong thinks the big lesson of history is that trying to maintain social and economic systems past their sell-by date doesn’t work [58:28]About this episode’s guest: Brad DeLongBrad DeLong is a professor of economics at U.C. Berkeley, a research associate of the National Bureau of Economic Research, a weblogger at the Washington Center for Equitable Growth, and a fellow of the Institute for New Economic Thinking. He received his B.A. and Ph.D. from Harvard University in 1982 and 1987. He joined UC Berkeley as an associate professor in 1993 and became a full professor in 1997.Professor DeLong also served in the U.S. government as Deputy Assistant Secretary of the Treasury for Economic Policy from 1993 to 1995. He worked on the Clinton Administration's 1993 budget, on the Uruguay Round of the General Agreement on Tariffs and Trade, on the North American Free Trade Agreement, on macroeconomic policy, and on the unsuccessful health care reform effort.Before joining the Treasury Department, Professor DeLong was Danziger Associate Professor in the Department of Economics at Harvard University. He has also been a John M. Olin Fellow at the National Bureau of Economic Research, an Assistant Professor of Economics at Boston University, and a Lecturer in the Department of Economics at M.I.T.Links relevant to the conversationBrad DeLong’s substack:https://braddelong.substack.com/DeLong on Hobsbawm’s short 20th century (1914 to 1989) compared with his long 20th century:https://www.bradford-delong.com/2016/12/the-short-vs-the-long-twentieth-century.htmlRe. Yegor Gaidar’s analysis of the collapse of the Soviet Union:https://sites.dartmouth.edu/asamwick/2007/06/08/the-soviet-collapse-grain-and-oil/Lant Pritchett’s book Let Their People Come: Breaking the Gridlock on Global Labor Mobility:https://www.cgdev.org/sites/default/files/9781933286105-Pritchett-let-their-people-come.pdfCreditsThanks to Brad DeLong for a great conversation, Nicholas Gruen for connecting Gene with Prof. DeLong, and Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. 

The National Accounts is the comprehensive data set on a country’s economic performance. It gives us GDP growth estimates and a whole bunch of other important indicators. Australian Bureau of Statistics Principal Advisor Robert Ewing takes us behind the scenes at the ABS and provides some great info and insights into how the GDP figures are prepared. Learn about the huge range of economic data from households, businesses, and governments that go into the National Accounts, the roles played by algorithms and judgment, and how the numbers are crunched using the time series database FAME, short for Forecasting Analysis and Modeling Environment. Please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Links relevant to the conversationRobert Ewing’s LinkedIn profile:https://www.linkedin.com/in/robertjewing/Economics Explored EP153 which also considered the National Accounts:https://economicsexplored.com/2022/08/23/gdp-the-national-accounts-what-they-are-and-why-they-matter-w-brendan-markey-towler-ep153/CreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

Various projects worldwide have been labeled White Elephants. These projects include the Gold Coast desalination plant and the Berlin Brandenburg Airport, among many others. What exactly is a White Elephant? How can we identify them and how can we stop them from happening in the future? In this episode, Scott Prasser joins show host Gene Tunny to talk about White Elephants. Scott is a former academic and ministerial adviser, and is one of the editors of the new book from Connor Court titled White Elephant Stampede: Case Studies in Policy and Project Management Failures. Please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. About this episode’s guest: Scott PrasserScott has worked in senior policy and advisory roles in Australian state and federal government public service. From 2013 to 2019 he was Senior Adviser to three federal cabinet ministers covering portfolios of education and training, and regional health, sport and decentralisation. In addition, Scott has held academic positions at five universities across four states and territories, the last at professorial level. Scott gained his undergraduate and master’s degrees from University of Queensland, and his doctorate from Griffith University. Scott’s most recent publication with Helen Tracey was Royal Commissions and Public Inquiries: Practice and Potential (2014); and Audit Commissions: Reviewing the Reviewers (2013). Scott’s substack newsletter: https://policyinsights.substack.com/Links relevant to the conversationThe new book from Connor Court White Elephant Stampede: Case Studies in Policy and Project Management Failures:https://www.connorcourtpublishing.com.au/White-Elephant-Stampede-Case-Studies-in-Policy-and-Project-Management-Failures_p_510.htmlCriteria for identifying White Elephant projects:https://drive.google.com/file/d/1qcrWWc39VRZ8ATNO2CRmWRe8KbUxUcki/view?usp=sharingRegarding the cost of the Gold Coast desalination plant, see:https://www.brisbanetimes.com.au/national/queensland/tugun-desal-plant-back-online-permanently-from-2020-seqwater-20150901-gjcioa.htmlThe Brisbane Times article reports:“The controversial $1.2 billion  Tugun plant was closed in 2009 after a string of complaints including rusting pipelines  and mothballed from fulltime water production in 2010.Normally it provides only three megalitres per day to Southeast Queensland's water grid and costs between $12 million and $15 million a year to operate.”Time Out article on fixing up the acoustics in the concert hall of the Sydney Opera House:https://www.timeout.com/sydney/news/the-new-and-improved-concert-hall-of-the-sydney-opera-house-has-finally-been-unveiled-071422CreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

Why are cities growing faster than regional areas in many economies around the world, including in Australia, the US, and UK? Robert Sobyra of Construction Skills Queensland explains his recent research findings to show host Gene Tunny. Robert and Gene discuss what the predominance of high-skilled employment growth in cities means for regional economies, and whether policy measures to address the regional divergence would be desirable.Please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Links relevant to the conversationRob’s LinkedIn profile:https://www.linkedin.com/in/robert-sobyra/?originalSubdomain=auRob’s LinkedIn article “Why Regions Are Falling Behind – And What To Do About It”:https://www.linkedin.com/pulse/why-regions-falling-behind-what-do-robert-sobyra/?trackingId=Dkp0A2saS8KUycrU1Q9IZw%3D%3DRob’s research paper:https://osf.io/2ywd8Data mentioned by Gene:https://www.gov.uk/government/publications/trend-deck-2021-urbanisation/trend-deck-2021-urbanisationUrban population (% of total population) - United Stateshttps://population.un.org/wup/Publications/Files/WUP2018-Highlights.pdfBrookings' article about US regional divergence:https://www.brookings.edu/blog/the-avenue/2020/01/28/regional-divergence-is-more-than-an-economic-dilemma-its-a-civil-rights-issue/On agglomeration effects, please check out EP136:https://economicsexplored.com/2022/04/26/wider-economic-benefits-of-infrastructure-projects-ep136/ CreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

The Cato Institute’s Romina Boccia explains why she’s concerned about a future US fiscal crisis. She explains how entitlement programs such as Social Security and Medicare are the source of the problem. This episode’s guest Romina Boccia is Director of Budget and Entitlement Policy at the Cato Institute, where she specializes in federal spending, budget process, economic implications of rising debt, and Social Security and Medicare reform.Please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Links relevant to the conversationRomina’s bio:https://www.cato.org/people/romina-bocciaRomina’s first post for Cato:https://www.cato.org/blog/joining-cato-restrain-federal-budget-leviathanCouncil on Foreign Relations article containing deficit projections which Gene mentions:https://www.cfr.org/backgrounder/national-debt-dilemmaU.S. News article: How Much You Will Get From Social Securityhttps://money.usnews.com/money/retirement/social-security/articles/how-much-you-will-get-from-social-securityCreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

What causes hyperinflation and how can it be avoided in the first place or stopped if it occurs? What characterizes countries which fall victim to hyperinflation? A conversation between show host Gene Tunny and his colleague Arturo Espinoza which explores the economic theory and evidence around hyperinflation, and discusses peculiarities which can arise in hyperinflation-afflicted economies - e.g. pensions denominated in cows in Zimbabwe.  Please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Links relevant to the conversationCurrent inflation rates around the world:https://tradingeconomics.com/country-list/inflation-rate?continent=worldWhat is hyperinflation and should we be worried? (WEF article from June 2022):https://www.weforum.org/agenda/2022/06/hyperinflation-inflation-interest-rate/Wikipedia entry for former Peruvian President Alberto Fujimorihttps://en.wikipedia.org/wiki/Alberto_Fujimori   Why a Zimbabwean firm offers pensions denominated in cows | The Economisthttps://www.economist.com/middle-east-and-africa/2022/05/14/why-a-zimbabwean-firm-offers-pensions-denominated-in-cowsThe Modern Hyperinflation Cycle: Some New Empirical Regularities (IMF Working paper from 2018):https://www.imf.org/en/Publications/WP/Issues/2018/12/07/The-Modern-Hyperinflation-Cycle-Some-New-Empirical-Regularities-46368Chris Edmond’s note on Cagan’s model of hyperinflation:https://pages.stern.nyu.edu/~cedmond/ge07pt/notes_cagan.pdfAlberto Alesina and Lawrence H. Summers’ paper Central Bank Independence and Macroeconomic Performance: Some Comparative Evidence:https://www.jstor.org/stable/2077833   Bitcoin Could Solve Zimbabwe’s Hyperinflation Problem—Instead, The Country Is Telling Impoverished Citizens To ‘Just Buy Gold’ (Forbes article):https://www.forbes.com/sites/martinrivers/2022/07/27/bitcoin-could-solve-zimbabwes-hyperinflation-problem--instead-the-country-is-telling-impoverished-citizens-to-just-buy-gold/?sh=179b8f8b66d2Inflation is spiking in Zimbabwe (again). Why high interest rates aren’t the answer (Conversation article by Jonathan Munemo): https://theconversation.com/inflation-is-spiking-in-zimbabwe-again-why-high-interest-rates-arent-the-answer-187362CreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

Author and ex-fighter pilot Lars Emmerich explains why he’s so excited about the future of Bitcoin. And you’ll hear how he responds to the criticism that Bitcoin mining wastes a lot of  energy. Lars also tells show host Gene Tunny about his experience as an author operating in a disrupted book industry. Lars explains how the internet can give authors a better deal than traditional book royalties, and he tells us about the importance of Facebook Ads for acquiring new readers.   Notes: a) This episode was recorded on Tuesday 13 September 2022, two days before the Ethereum Merge with Lars and Gene discuss in this episode. b) This episode contains general information only and nothing in this episode should be taken as financial or investment advice. Please see a professional financial adviser regarding investment decision making specific to your needs. About this episode’s guest: Lars EmmerichLars Emmerich is a retired fighter pilot, entrepreneur, investor, and musician. He writes about good guys with a bad streak and bad guys with a few redeeming qualities.He is the author of the million-selling Sam Jameson series. He lives in Colorado with his family and his neuroses. He's either hard at work on the next novel in the series, or he's procrastinating. Usually the latter.Stop by www.larsemmerichbooks.com to pick up a free digital copy of The Incident: Inferno Rising, the first installment in the Sam Jameson series.Check out Lars’s author page on Amazon:https://www.amazon.com/Lars-Emmerich/e/B00HXKRZZI%3Fref=dbs_a_mng_rwt_scns_shareLinks relevant to the conversationThe controversy over Tim Ferriss’s deal with Amazon Publishing for the 4-Hour Chef:https://www.usatoday.com/story/life/books/2012/11/19/ferriss-4-hour-chef-controversy/1715335/What is hash power and why would anyone buy it?https://www.nicehash.com/support/mining-help/general-help/what-is-hash-power-and-why-would-anyone-buy-itFinancial Times article - The Merge: a blockchain revolution or just more hype? (pay-walled)https://www.ft.com/content/88518bc5-3af4-41c3-99b5-c0cd0ba69ab9Book on Bitcoin recommended by Lars: The Bitcoin Standard: The Decentralized Alternative to Central Bankinghttps://www.amazon.com.au/Bitcoin-Standard-Decentralized-Alternative-Central/dp/1119473861CreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

Australia’s National Electricity Market was suspended by the market operator for nine days in June 2022. For a brief period, authorities were worried there would have to be widespread blackouts to balance supply and demand, so the market operator stepped in to direct generators to produce the power that was needed. In this episode, Andrew Murdoch, Managing Director of Arche Energy, explains what went wrong in June, and he talks to show host Gene Tunny about whether it could happen again. Are renewables coming into the system too quickly? What’s happening with batteries? Will Australia be able to cope with the retirement of coal-fired power stations? And what about all the EVs that will need charging? These and other questions are tackled in a frank and fearless conversation.  About this episode’s guest: Andrew MurdochAndrew Murdoch is Managing Director of Arche Energy, a Brisbane-based consulting firm specialising in energy projects.. He is an experienced general manager, project director and engineer operating in renewable power, power generation, energy, ports and heavy infrastructure. For more on Andrew’s experience, check out the Arche Energy website:https://archeenergy.com.au/about-us/andrew-murdoch/Links relevant to the conversationAustralian Energy Market Operator (AEMO) report into market suspension in June 2022:https://www.aemo.com.au/-/media/files/electricity/nem/market_notices_and_events/market_event_reports/2022/nem-market-suspension-and-operational-challenges-in-june-2022.pdf?la=enAEMO’s Integrated System Plan:https://aemo.com.au/en/energy-systems/major-publications/integrated-system-plan-ispNEM suspensions costs lower than expected - NB when they were directed to supply gas to the market at an uneconomic price for them at the market price cap of $300/MWh, the generators became eligible for compensation:https://aemo.com.au/newsroom/media-release/nem-suspension-costs-lower-than-expectedAEMO’s Electrical Statement of Opportunityhttps://aemo.com.au/en/energy-systems/electricity/national-electricity-market-nem/nem-forecasting-and-planning/forecasting-and-reliability/nem-electricity-statement-of-opportunities-esooSome large-scale Australian renewable and battery projects: https://lockyerenergy.com.au/https://supernode.com.au/Global coal demand as high as it has ever been:https://www.iea.org/reports/coal-market-update-july-2022/demandCreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

An electrified vehicle fleet will mean lower fuel tax revenues for governments and possibly greater traffic congestion as EVs are cheaper to run. Governments around the world are having to reassess how they charge for road use and one Australian state, Victoria, has introduced an EV tax based on distance traveled. In Economics Explored EP155, Marion Terrill from the Grattan Institute discusses what a rational road user charging system would look like. She also talks about Grattan’s truck plan, which is designed to get high polluting old trucks out of major Australian cities.  This episode’s guest Marion Terrill is Transport and Cities Program Director at the Grattan Institute. Marion is a leading transport and cities expert with a long history in public policy. She has worked on tax policy for the federal Treasury, and led the design and development of the MyGov account. She has provided expert analysis and advice on labour market policy for the Federal Government, the Business Council of Australia, and at the Australian National University.Links relevant to the conversationMarion’s bio: https://grattan.edu.au/expert/marion-terrill/Grattan Institute on Twitter: @GrattanInstMarion’s Australian Financial Review article “Electric vehicles: Feds should pave way for gold standard road user charges” (pay-walled): https://www.afr.com/policy/tax-and-super/feds-should-pave-way-for-gold-standard-road-user-charges-20220822-p5bbssGrattan’s 2019 report Right time, right place, right price: a practical plan for congestion charging in Sydney and Melbourne: https://grattan.edu.au/report/right-time-right-place-right-price/The Grattan truck plan: practical policies for cleaner freight: https://grattan.edu.au/report/grattan-truck-plan/Previous episodes featuring Marion:https://economics-explained.simplecast.com/episodes/megaprojects-with-marion-terrill-from-grattan-institutehttps://economics-explained.simplecast.com/episodes/unfreezing-discount-rates-with-marion-terrill-of-the-grattan-instituteCreditsThanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.

A wide-ranging conversation on petrol/gasoline prices and electric vehicles (EVs). The conversation explores the peculiar economic phenomenon that is Australia’s petrol price cycle. What drives it and how can consumers make it work for them? Show host Gene Tunny and his guest Tim Hughes then discuss the big issues around replacing petrol-powered vehicles with EVs. What does it mean for total electricity demand and what challenges do we face in adopting EVs?Links relevant to the conversationAustralian Financial Review article (paywalled) quoting Ampol CEO saying EVs have to be 50% cheaper before widespread take up: https://www.afr.com/companies/energy/ampol-profit-more-than-doubles-on-refining-revival-20220822-p5bbniRecent oil price news: https://www.reuters.com/business/energy/oil-prices-rise-after-saudi-says-opec-could-cut-output-2022-08-23/Brent crude oil price: https://www.abc.net.au/news/2022-08-25/can-lucky-country-australia-become-a-battery-mineral-superpower/101358050Australian Competition and Consumer Commissions (ACCC) monitoring of Australia’s petrol price cycle: https://www.accc.gov.au/consumers/petrol-diesel-lpg/petrol-price-cycles#petrol-prices-in-brisbaneInformation on Queensland’s electric superhighway: https://www.qld.gov.au/transport/projects/electricvehicles/super-highwayQueensland Government website on environmental benefits of EVs: https://www.qld.gov.au/transport/projects/electricvehicles/hitting-the-roadThe Grattan Car Plan which includes lots of useful data on EVs: https://grattan.edu.au/report/grattan-car-plan/John Freebairn on fuel excise in Australia: https://theconversation.com/what-is-petrol-excise-and-why-does-australia-have-it-anyway-179373Drive magazine article on impact of EVs on electricity use: https://www.drive.com.au/news/electric-cars-could-have-big-impact-on-australia-s-energy-supply/Australian Energy Market Commission (AEMC) paper on integrating EVs in the power grid: https://www.aemc.gov.au/news-centre/media-releases/integrating-electric-vehicles-power-systemEconomics Explored EP113 - Lithium and the new energy revolution with Lukasz Bednarski: https://economicsexplored.com/2021/11/13/ep113-lithium-and-the-new-energy-revolution-with-lukasz-bednarski/ABC News report As EVs drive a mining revolution, will Australia become a battery minerals superpower?: https://www.abc.net.au/news/2022-08-25/can-lucky-country-australia-become-a-battery-mineral-superpower/101358050Thanks to Josh Crotts for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Please consider signing up to receive our email updates and to access our e-book Top Ten Insights from Economics at www.economicsexplored.com. Also, please get in touch with any questions, comments and suggestions by emailing us at contact@economicsexplored.com or sending a voice message via https://www.speakpipe.com/economicsexplored. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.