Show host Gene Tunny responds to listener feedback about the private versus public sector's role in wealth creation, particularly addressing externalities like environmental harm and whether governments should fund facilities like Men’s Sheds. He also explores the efficiency of the private sector compared to government spending.If you have any questions, comments, or suggestions for Gene, please email him at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. Timestamps for EP254Introduction (0:00)Externalities and Market Efficiency (4:47)Government's Role in Addressing Externalities (11:30)Coase Theorem and Market Failures (19:43)Government Spending and Efficiency (26:31)Men's Sheds and Government Support (32:51)Scott Prasser's Critique of Government Spending (39:43)Balancing Government and Private Sector Roles (45:49)TakeawaysExternalities in Wealth Creation: Private markets can overlook externalities such as pollution or public health impacts, justifying government intervention in some cases.Incentives for Efficiency: Due to market competition, the private sector generally has stronger incentives for efficiency, while government projects typically lack the same discipline.Government Spending Criticism: Many government projects, particularly those done for political reasons, are inefficient and do not consistently deliver expected benefits.Cost-Benefit Analysis is Crucial: Government spending should be evaluated through cost-benefit analysis to avoid wasting public funds.Coase Theorem and Market Solutions: While private negotiation can theoretically resolve externalities (as per the Coase Theorem), it typically does not work in practice due to high transaction costs and imperfect information.Links relevant to the conversationRelevant previous episodes:Government vs Private Sector in Wealth Creation:https://economicsexplored.com/2024/07/05/government-vs-private-sector-who-generates-wealth-ep247/White Elephant Stampede:https://economicsexplored.com/2022/10/17/white-elephant-stampede-w-scott-prasser-ep161/Coase theorem paper - “Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark”https://www.sciencedirect.com/science/article/pii/S0301479711003331Urbis review of Men’s Sheds:https://www.health.gov.au/sites/default/files/documents/2022/01/review-of-support-for-the-men-s-shed-movement-current-state-report_0.pdfBeyond Blue Report on Men’s Sheds:https://mensshed.org/wp-content/uploads/2022/05/Ultrafeed-beyondblue-Mens-Shed-in-Australia-Final-Executive-Report-2013.pdfLumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED 

Show host Gene Tunny talks with Emmanuel Daniel, founder of The Asian Banker, about China's evolving economic policies under Xi Jinping. They explore China’s state intervention, the country's property sector, and the global implications of Xi's economic vision. Emmanuel also shares insights into Southeast Asia's rise, focusing on Indonesia's growth prospects. The conversation concludes with a discussion of Australia’s role in the region, its economic ties with China, and its alliance with the US and UK.If you have any questions, comments, or suggestions for Gene, please email him at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. What’s covered in EP253Introduction (0:00)China's Property Sector and Economic Challenges (6:32)State's Role in Economic Development and Social Infrastructure (15:20)China's Economic Growth and Productivity (29:15)China's Geopolitical Challenges and US Relations (35:58)Southeast Asia and the Rise of the Rest (44:50)Australia's Role in the Region and Economic Ties with China (53:38)Final Thoughts and Future Directions (56:07)TakeawaysChina’s State Activism: The Chinese state has reasserted itself in the economy, implementing policies restricting private sector growth with the objective of promoting long-term social stability.Challenges of State-Led Development: There are limitations to what the state can achieve compared to the dynamism of private markets, especially in frontier technologies.The Socialist-Capitalist Tension: China’s current policies reflect a unique blend of socialism and capitalism (aka socialism with Chinese characteristics), with the state playing a more prominent role than in Western economies.Global Implications: China's economic trajectory under Xi Jinping will profoundly affect global markets, particularly as the state asserts more control over private companies.Rise of Southeast Asia: Countries like Indonesia are emerging as economic powerhouses, with domestic consumption and political stability driving their growth.Links relevant to the conversationAbout this episode’s guest Emmanuel Daniel:https://www.emmanueldaniel.com/biography-and-contact/Economics Explored ep171 on the Enterprise China model:https://economicsexplored.com/2022/12/26/enterprise-china-what-western-businesses-need-to-know-w-prof-allen-morrison-ep171/Reuters report “Indonesia minister says Musk to consider offer to build EV battery plant in country”:https://www.reuters.com/business/autos-transportation/indonesia-minister-says-musk-consider-building-ev-battery-plant-country-2024-05-20/Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED 

Show host Gene Tunny interviews Russell Harrison, CEO of Spartans Boxing Club. They discuss the rise of boutique boxing gyms, the benefits of boxing for fitness and mental health, and the challenges of expanding a fitness franchise globally. Russell describes how Spartans uses technology to enhance the member experience and how boxing training can benefit corporate executives and employees. Hear from Russell about Spartans’ "White Collar Boxing" events, where high-performing corporate executives and professionals undergo 12 weeks of boxing training, culminating in a black-tie gala event. If you have any questions, comments, or suggestions, please email us at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. What’s covered in EP252Introduction (0:00)Ensuring Safety in Boxing (3:13)Fitness Benefits of Boxing (6:01)Training and Techniques at Spartans Boxing Clubs (8:32)Expansion into the Australian Market (10:20)Boutique Fitness Market and Franchise Model (13:43)Gender Balance and Market Demographics (35:03)Corporate Wellness and Holistic Health (35:20)White Collar Boxing (43:10)Final Thoughts and Future Plans (45:16)TakeawaysCommunity-Driven Gyms: Spartans Boxing Club focuses on creating accessible, community-oriented gyms that cater to a wide demographic, including families and professionals.Franchise Success: Spartans Boxing's franchise model is designed to be mutually beneficial, with a focus on providing value and support to franchisees.Holistic Wellness: Beyond physical fitness, Spartans Boxing integrates mental health programs, showing the importance of a holistic approach to well-being.Global Expansion: Spartans Boxing has successfully expanded into multiple countries by adapting its business model to local markets and regulations.Boutique Fitness Trends: The rise of boutique gyms like Spartans Boxing reflects a shift towards more personalised, community-focused fitness experiences.Links relevant to the conversationSpartans Boxing Club:https://spartansboxing.com/A study reporting “Boxing appears to be an effective treatment for persons with Parkinson’s disease”:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9837687/Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED 

This episode delves into the work of Good Business Lab (GBL), co-founded by Professor Achyuta Adhvaryu. GBL focuses on innovative workplace interventions to improve worker well-being and firm productivity, and it typically evaluates these interventions using Randomized Controlled Trials (RCTs). Show host Gene Tunny and Ach discuss the effectiveness of soft skills training programs and the importance of worker voice in creating a more engaged and productive workforce. They discuss methodological issues regarding RCTs and whether the Hawthorne effect is a concern. Ach is Tata Chancellor’s Professor of Economics and Director of the 21st Century India Center at UC San Diego.If you have any questions, comments, or suggestions, please email us at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. About this episode’s guest: Professor Achyuta AdhvaryuAchyuta Adhvaryu is the Tata Chancellor’s Professor of Economics at the School of Global Policy and Strategy and is the inaugural director of the 21st Century India Center at UC San Diego. Adhvaryu’s research interests are in development economics, organizational economics and health economics, and his experience in organizational development make him well-suited to lead our new center. Prior to this role, Adhvaryu was a professor at the University of Michigan and an assistant professor at the Yale School of Public Health.https://gps.ucsd.edu/faculty-directory/achyuta-adhvaryu.htmlWhat’s covered in EP251Introduction. (0:00)Achyuta's Early Career and Research in East Africa (1:53)Historical Examples of Private Sector Impact (17:03)Good Business Lab's Approach and Findings (21:45)Methodology and Measurement of Impact (37:56)Hawthorne Effect and Replication of Findings (43:33)Economic Development and Convergence (49:44)TakeawaysSoft skills training can significantly improve productivity, even in blue-collar settings.Worker voice, when effectively harnessed, can reduce turnover and absenteeism while boosting productivity.Good Business Lab demonstrates the practical value of academic research when applied to real-world business challenges.A growing body of evidence supports the integration of worker wellbeing initiatives into business strategies globally.Links relevant to the conversationGood Business Lab:https://goodbusinesslab.org/UC San Diego 21st Century India Center that Ach directs:https://india.ucsd.edu/Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED 

Show host Gene Tunny and Morgans Chief Economist Michael Knox explore the recent insights Reserve Bank of Australia Deputy Governor Andrew Hauser shared on monetary policy at the 2024 Economic Society of Australia (QLD) business lunch. They examine the RBA's data-driven approach to interest rates,  the equilibrium real interest rate concept, and the impacts of Quantitative Tightening (QT). Michael is one of Australia’s leading market economists and RBA watchers, and he led the Q&A session with the Deputy Governor at the lunch. If you have any questions, comments, or suggestions, please email us at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. What’s covered in EP250Introduction. (0:00)RBA's monetary policy decisions and the influence of high US debt on interest rates. (4:13)The equilibrium real interest rate. (10:29)Monetary policy, inflation, and interest rates. (14:16)Central bank balance sheet unwind and its potential impact on interest rates. (21:42)US budget deficits, bond yields, and quantitative tightening. (27:09)Chinese RMB's decline in international reserve currency status. (34:18)TakeawaysRBA's Data-Driven Approach: The Reserve Bank of Australia relies on actual data more than forecasts when making interest rate decisions.Criticism of Overconfidence: RBA Deputy Governor Andrew Hauser criticised the unwarranted confidence with which some commentators argue for monetary policy moves.Implications of Quantitative Tightening (QT): The recent period of quantitative easing has complicated the relationship between government budget deficits and bond yields. However, there are concerns that as QT continues and deficits remain high, this relationship could reassert itself and lead to higher long-term interest rates than otherwise.Links relevant to the conversationRBA Deputy Governor Andrew Hauser’s Beware False Prophets speech:https://www.rba.gov.au/speeches/2024/sp-dg-2024-08-12.htmlChris Joye’s article ‘Arrogant RBA boss should stop trying to muffle opponents’:https://www.afr.com/policy/economy/arrogant-rba-boss-should-stop-trying-to-muffle-opponents-20240813-p5k25pKevin M Warsh: Financial market turmoil and the Federal Reserve – the plot thickens https://www.bis.org/review/r080415e.pdfFull transcripts are available a few days after the episode is first published at www.economicsexplored.com.

Ben Simpson, founder of Collective Shift, a crypto education and research company, shares valuable insights into the volatile world of cryptocurrency. Because the crypto field is filled with misinformation and scams, Ben emphasises the need for comprehensive education and reliable research before making investment decisions. He emphasises the importance of understanding the risks and potential of Bitcoin and other digital assets. He also discusses the regulatory landscape in Australia and the disruptive potential of decentralised finance (DeFi). NB This podcast episode contains general information only and should not be considered financial or investment advice.If you have any questions, comments, or suggestions, please email us at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. What’s covered in EP249Introduction. (0:00)Crypto market volatility and how to navigate it. (1:40)Bitcoin as a digital gold with potential for long-term growth. (6:54)Crypto regulation, tax treatment, and education. (12:21)Investing in cryptocurrency, avoiding scams, and seeking professional help. (16:44)Bitcoin ETFs and investment options in Australia. (21:06)Crypto market volatility, correlation with the stock market, and investment strategies. (25:20)Crypto investing and decentralised finance with Ben Simpson. (31:03)TakeawaysUnderstanding Crypto Volatility: Cryptocurrency markets, especially Bitcoin, are highly volatile. Investors must be prepared for significant price swings and understand the underlying factors driving these fluctuations.Importance of Education: The crypto space is filled with misinformation and scams. Ben emphasises the need for comprehensive education and reliable research before making investment decisions.Regulatory Landscape: The regulatory environment for cryptocurrencies, particularly in Australia, is still evolving. While Bitcoin and Ethereum are generally considered safe from a regulatory standpoint, many other cryptocurrencies could face challenges.Decentralised Finance (DeFi): DeFi has the potential to disrupt traditional banking by offering financial services without intermediaries. This space is growing and may offer exciting opportunities for investors.Safe Investing Strategies: Ben advises new investors to start with Bitcoin and be cautious of lesser-known cryptocurrencies, many of which may lack real value and be risky investments.Links relevant to the conversationCollective Shift: https://collectiveshift.io/Ben’s YouTube channel: https://www.youtube.com/@BenCollectiveShiftBen and Bergs podcast: https://open.spotify.com/show/5xir3V8fvtmHTAQy2D9dQdFull transcripts are available a few days after the episode is first published at www.economicsexplored.com.

Gene Tunny welcomes Dr Nicholas Gruen from Lateral Economics to explore the decline of Australia's policy exceptionalism. They delve into the era of microeconomic reforms, the role of neoliberalism, and the challenges current policymakers face. Nicholas provides a historical perspective and discusses potential ways forward. He shares insights from his time advising the Hawke and Keating governments, discussing the successes and failures of Australia’s economic reforms from the 1980s and 1990s.This is the last episode before a four-week break. Economics Explored will return in August 2024. If you have any questions, comments, or suggestions, please email us at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. What’s covered in EP248Introduction to Australia's loss of policy exceptionalism. (0:00)Regulation, economics, and politics in Australia in the 1960s and 1970s. (4:59)Early Australian economic reform and its challenges. (10:45)Australian economic reform under Hawke and Keating governments. (16:20)Car industry policy. (21:36)Free education vs HECS - why was HECS a good reform? (32:06)Airline deregulation. (36:48)Privatisation of public assets and its consequences. (42:55)Economics of toll roads (48:18)TakeawaysSince the early 2000s, Australia seems to have lost the problem-solving spirit and policy exceptionalism of the 1980s and 1990s, struggling in various policy areas like energy.Impact of Neoliberalism: Neoliberal reforms, initially embraced by the left, significantly improved Australia’s economic landscape but also led to unintended consequences.Key reforms included cutting tariffs, higher education policy changes, airline deregulation, and other competition policy reforms, but some privatised infrastructure assets have not been appropriately regulated post-privatisation.Challenges in Current Policy: Australia faces challenges in various policy areas, including energy and housing, indicating a need for renewed reform efforts.Moving forward will require reinvigorating honest, evidence-based policy conversations focusing on problem-solving rather than fixed ideological positions.Links relevant to the conversationNicholas’s YouTube channel where Uncomfortable Collisions with Reality episode will be published:https://www.youtube.com/@NicholasGruenNicholas’s Club Troppo post on economic reform featuring Colin Clark quote:https://clubtroppo.com.au/2008/03/01/compare-and-contrast/Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.

In this episode, Gene Tunny explores the relationship between government spending and wealth creation. He talks about President Obama’s memorable expression, “You didn’t build that”, and how economists think about the role of government and wealth creation. Gene discusses the roles of both the government and private sector in generating wealth and their impact on productivity, GDP and living standards.  If you have any questions, comments, or suggestions, please email us at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. What’s covered in EP247Government role in the economy - private sector vs public sector. (0:00)Government spending and its impact on the economy. (5:52)Keynesian economics and the role of aggregate demand in determining GDP. (11:51)Government spending and its impact on productivity. (18:13)Government intervention in the economy, with a focus on public goods and cost-benefit analysis. (25:11)Government's role in the economy, potential for crowding out the private sector. (31:32)Government impact on the economy and living standards. (38:20)TakeawaysGovernment Spending and GDP: Government expenditures can contribute to GDP, but their efficiency and the type of spending critically determine their economic impact.Private Sector's Role: The private sector is essential in wealth creation due to its efficiency incentives, but it also depends on government-provided infrastructure and services.Crowding-out Effect: Excessive government spending can crowd out private investment, potentially reducing overall economic efficiency and growth.Cost-Benefit Analysis: It is vital to conduct thorough cost-benefit analyses for government projects to ensure that public funds are used effectively and do not become a drain on the economy.Links relevant to the conversationDan Mitchell’s article on the impact of government spending on economic growth:https://www.heritage.org/budget-and-spending/report/the-impact-government-spending-economic-growthDan’s article “OECD Economic Research Finds that Government Spending Harms Growth”https://danieljmitchell.wordpress.com/2016/11/28/oecd-economic-research-finds-that-government-spending-harms-growth/Episode on Alvin Hansen and Evsey Domar:https://economicsexplored.com/2024/06/19/popularizing-keynes-how-alvin-hansen-and-evsey-domar-shaped-post-war-macroeconomics-ep245/Episode on Thatcher:https://economicsexplored.com/2020/12/06/ep64-adam-smith-margaret-thatcher-with-dr-eamonn-butler/Bacon and Eltis’s 1978 book “Britain’s Economic Problem: Too Few Producers”:https://link.springer.com/book/10.1007/978-1-349-15863-8 Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.

This episode features a conversation between Gene Tunny and Stephen Kirchner about the US dollar's dominance in global finance. They examine the reasons behind the dollar's strong position, the effects of US fiscal policy and public debt, and the debate over its future role. Kirchner explains how the US's status as a net oil exporter influences currency dynamics and global trade.If you have any questions, comments, or suggestions, please email us at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. About Stephen KirchnerStephen Kirchner is the Senior Economist at the Business Council of Australia, the former Program Director for Trade and Investment at the United States Studies Centre at the University of Sydney, and a Senior Fellow of the Fraser Institute. An expert in monetary and fiscal policy, financial markets, and trade economics, Mr. Kirchner was formerly a research fellow at Australia's Centre for Independent Studies, an economist with Action Economics, LLC and a former director of economic research with Standard & Poor's Institutional Market Services, based in Sydney and Singapore. He has also worked as an advisor to members of the Australian House of Representatives and Senate.Mr. Kirchner holds a BA (Hons) from the Australian National University, a Master of Economics (Hons) from Macquarie University, and a PhD in Economics from the University of New South Wales. He blogs at www.institutional-economics.com and is active on Twitter (@insteconomics).What’s covered in EP246US dollar's global role as reserve currency, benefits, and potential challenges. (0:00)US fiscal policy and its impact on the US dollar's global role. (8:40)Monetary vs fiscal policy dominance in determining interest rates and exchange rates. (14:39)US dollar's role in global finance and its potential replacement by other currencies. (20:39)China's economy, currency, and trade agreements. (29:59)TakeawaysThe US dollar's dominant role in global finance is largely due to the unparalleled size, depth, and liquidity of US capital markets.Despite concerns about the US fiscal position, the demand for US assets remains strong, which supports the dollar's value.Other economies, like the Eurozone and China, face challenges in rivaling the US dollar due to less developed capital markets.The US becoming a net oil exporter has altered the traditional relationship between the US dollar and commodity prices.Fiscal policy in the US, while concerning, does not currently pose an immediate threat to the dollar's global dominance due to strong international demand for US assets.Links relevant to the conversationStephen’s post on dollar dominance:https://stephenkirchner.substack.com/p/dollar-dominance-if-you-can-keepStephen’s US Studies Centre article “The ‘reserve currency’ myth: The US dollar’s current and future role in the world economy”:https://www.ussc.edu.au/the-reserve-currency-myth-the-us-dollars-current-and-future-role-in-the-world-economyStephen’s post on how the US dollar is now a commodity currencyhttps://stephenkirchner.substack.com/p/why-is-the-australian-dollar-so-weakLumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.

In this episode, show host Gene Tunny explores the influential theories of economists Alvin Hansen, the “American Keynes", and Evsey Domar. The episode was inspired by a first edition copy of Hansen and Perloff’s 1944 book “State and Local Finance in the National Economy” that Gene was gifted. It includes a handwritten inscription from Hansen to Domar, his student at Harvard. Key topics include the Keynesian IS-LM model, the secular stagnation hypothesis, and the Harrod-Domar growth model. The episode provides a rich historical context and examines the relevance of these theories to today's economic challenges.If you have any questions, comments, or suggestions, please email us at contact@economicsexplored.com  or send a voice message via https://www.speakpipe.com/economicsexplored. What’s covered in EP245Book by Alvin Hansen and Harvey Perloff on State and Local Finance in the National Economy. (0:00)Alvin Hansen's contributions to economics, including popularizing Keynes's theory and teaching influential students such as Paul Samuelson and Evsey Domar. (5:06)IS-LM model. (11:13)Keynesian economics and secular stagnation hypothesis. (17:42)Fiscal policy and its impact on the economy. (25:28)Domar's life and growth model. (32:29)Harrod-Domar model and its implications for economic policy. (39:00)Economic growth models and their limitations. (45:22)TakeawaysSecular Stagnation Hypothesis: Hansen's theory suggesting that mature economies could face prolonged periods of low growth due to structural factors.IS-LM Model: Developed by Hansen and Hicks, this model became a foundational tool in macroeconomics for analyzing the effects of fiscal and monetary policy.Fiscal Perversity Hypothesis: Hansen and Perloff's analysis showing that state and local fiscal policies can sometimes exacerbate economic downturns.Harrod-Domar Growth Model: An important Keynesian model that emphasizes the relationship between investment and economic growth, though not fully explaining long-term growth.Legacy and Influence: Both Hansen and Domar significantly shaped the development of economic theory and policy, influencing key areas such as social security and public investment strategies.Links relevant to the conversationInscription from Hansen to Domar on Gene’s copy of State and Local Finance in the National Economy:https://drive.google.com/file/d/167cJbNhxBJpsKRwSYGHxbjupX1Q3Iacx/view?usp=sharingWilliam Easterly’s paper on the Harrod-Domar model:https://papers.ssrn.com/sol3/papers.cfm?abstract_id=11020Fiscal perversity papers:Fabrizio Carmignani’s article “Can public expenditure stabilize output? Multipliers andpolicy interdependence in Queensland and Australia”:https://www.sciencedirect.com/science/article/abs/pii/S0313592615300242?via%3DihubTamim Bayoumi and Barry Eichengreen’s paper “Restraining Yourself: The Implications of Fiscal Rules for Economic Stabilization”:https://www.elibrary.imf.org/view/journals/024/1995/001/article-A002-en.xmlAn abridged version of Skidelsky’s three-volume biography of Keynes:https://www.penguin.com.au/books/john-maynard-keynes-9780143036159Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.