Economics Explored

This episode explores the resurgence of industrial policy in the US and Australia. We critically analyze whether government interventions can truly shape industries or if they are doomed to repeat past mistakes, such as those experienced during the 1970s and with the Concorde project. The episode includes clips featuring Saxon Davidson from the Institute of Public Affairs and Eamonn Butler from the Adam Smith Institute. 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 EP243Introduction to Industrial policy and its potential consequences. (0:00)Budget, inflation, and economic policies in Australia. (8:34)Climate change policy and government incentives for renewable energy. (13:59)Australian economy, productivity, and government intervention. (19:44)UK's economic struggles in the 1970s, including strikes. (29:41)The failure of the Concorde supersonic jet project. (35:59)Failures of activist industrial policy - e.g. in Australia's car industry. (49:16)TakeawaysRevival of Industrial Policy: Governments in the US and Australia are reintroducing industrial policies to shape their economies, sparking debate among economists.Historical Lessons: The economic turmoil of the 1970s and failures such as the Concorde serve as cautionary tales against heavy government intervention in industry.Climate Policy Challenges: The push for renewable energy in Australia raises concerns about the rapid transition and its impact on the economy and energy grid reliability.Productivity Focus: Effective economic policies should enhance productivity through structural reforms rather than picking winners.Government's Role: While there is a place for government to address market failures, extensive intervention often leads to inefficiencies and unintended consequences.Links relevant to the conversationAustralian Taxpayers’ Alliance Budget Chat:https://www.youtube.com/live/MYX35Lk_ZYA?si=0kJzBt47Yh_5sUnSGene’s CIS issues analysis paper on the Australian budget, co-authored with Robert Carling:https://www.cis.org.au/publication/budget-fails-important-policy-tests/Episode with Eamonn Butler on Thatcher:https://economics-explained.simplecast.com/episodes/adam-smith-and-margaret-thatcher-with-dr-eamonn-butler-1oXNvQg_Episode on Concorde:https://economicsexplored.com/2022/03/20/concordes-economic-lessons-a-closer-look-ep131/Previous episodes on Australia’s energy transition:https://economicsexplored.com/2023/08/24/australias-net-zero-transition-successes-challenges-w-andrew-murdoch-arche-energy-ep202/https://economicsexplored.com/2022/12/19/aussie-energy-crisis-net-zero-transition-w-josh-stabler-energy-edge-ep170/Australia’s Hydrogen Production and Critical Minerals Tax Incentives:https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/hydrogen-production-and-critical-minerals-tax-incentivesLumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee until 30 June 2024.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.

Daniel Lawse, Chief Century Thinker at Verdis Group, helps many organizations, such as Seattle Aquarium, become more sustainable and contribute positively to the environment. Daniel joins Gene Tunny to discuss how organisations can make meaningful climate and environmental actions. They cover regenerative practices, the journey from sustainability to net-zero emissions, and the crucial role of long-term strategic planning. They also discuss the degrowth movement and how Warren Buffett’s annual Berkshire Hathaway meeting boosts local businesses in Omaha, where Verdis Group is based.  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 EP242Introduction. (0:00)Climate action plans and sustainability implementation for organizations. (3:05)Regenerative systems, circular economy, and ecosystem types. (10:29)Sustainability and environmental economics, enlightened self-interest and long-term thinking. (16:09)Sustainable growth and development, comparing nature’s regenerative approach with human economies. (23:15)Growth vs degrowth. (29:20)Warren Buffett’s impact on Omaha. (34:20)TakeawaysThrough climate action plans, organizations can take practical steps to reduce their environmental impacts and work towards goals like net zero emissions.Shifting mindsets from short-term to long-term thinking and considering impacts on future generations can drive more sustainable decision-making.Nature provides many examples of regenerative and circular systems that organizations can learn from using approaches like biomimicry.Enlightened self-interest and purpose-driven values can be strong motivators for sustainability action in addition to regulatory requirements.Balancing economic and environmental considerations is an important topic for debate.Links relevant to the conversationVerdis Group: https://verdisgroup.com/Seattle Aquarium case study: https://verdisgroup.com/case_studies/seattle-aquarium/Patagonia - Don’t Buy This Jacket, Black Friday and the New York Times: https://www.patagonia.com.au/blogs/stories/don-t-buy-this-jacket-black-friday-and-the-new-york-timesBooks on the role of energy in growth and relevant to the degrowth debatehttps://www.e-elgar.com/shop/gbp/the-economic-growth-engine-9781849804356.htmlhttps://www.amazon.com.au/Civilization-Distinguished-Professor-Emeritus-University/dp/0262035774https://www.amazon.com.au/Growth-Microorganisms-Megacities-Vaclav-Smil/dp/0262042835Previous episode on degrowth:https://economicsexplored.com/2023/10/06/growth-or-degrowth-w-oliver-hartwich-nz-initiative-ep208/Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee until 30 June 2024.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.

Consumers have noticed bags of chips, chocolates, and many other products have shrunk, but prices have not come down. This episode of Economics Explored features a detailed discussion on shrinkflation with Gene Tunny and Arturo Espinoza Bocangel. They analyze various examples of shrinkflation and its impact on the cost of living. The episode also considers the potential for regulatory and other measures to address this practice. For instance, a US Senator wants to outlaw shrinkflation, and a French supermarket chain puts a sticker on shelves identifying shrunken products. Gene and Arturo also consider the high degree of market concentration in the grocery sector and what the FTC in the US and the ACCC in Australia can do about it.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 EP241Introduction to Shrinkflation (product shrinking in size while price remains the same). (0:00)Shrinkflation in the food industry, with examples of product size reductions and price increases. (5:04)Senator Casey’s proposal to stop corporations from deceiving consumers through shrinkflation. (10:05)Shrinkflation and its impact on consumer prices. (13:38)Shrinkflation as a business strategy. (19:10)Market power and concentration in the Australian supermarket industry. (25:25)Supermarket competition in Australia, with a focus on Coles and Woolworths. (30:12)Supermarket power and calls for regulation. (35:47)Coles and Woolworths' market power and supplier squeeze. (40:41)TakeawaysShrinkflation Explained: Shrinkflation occurs when manufacturers reduce the size of products while maintaining the same price, effectively increasing the unit price without consumers' direct awareness.Impact on Consumers: This practice can be deceptive, as it often goes unnoticed by consumers who end up paying more for less, affecting their purchasing power and overall cost of living.Supermarket Power: Large supermarkets like Coles and Woolworths have significant market power, which they can use to negotiate lower prices from suppliers. There are allegations of unfair use of this market power and there are a couple of government inquiries investigating this among other market power issues. Regulatory Responses: There are ongoing discussions and legislative efforts, such as those led by Senator Bob Casey in the US, to classify shrinkflation as a deceptive practice and regulate it more strictly.Market Concentration: The high level of market concentration in the supermarket sector, particularly in Australia and to an extent in the US, means that major supermarkets can allegedly make it harder for new entrants like Aldi and Costco to compete effectively.Links relevant to the conversationSenator Casey's Report on Shrinkflation: https://www.casey.senate.gov/imo/media/doc/shrinkflation_report.pdfABS on how shrinkflation is accounted for in CPI calculation:https://www.abs.gov.au/articles/quality-change-australian-cpiCarrefour’s Shrinkflation Warning:https://www.bbc.com/news/business-66809188  Sanjoy Paul's article on eight ways Woolworths and Coles squeezed their suppliers and customers:https://theconversation.com/8-ways-woolworths-and-coles-squeeze-their-suppliers-and-their-customers-223857Details on the exchange between the Woolworths CEO and an Australian Senator during an inquiry - “Greens senator threatens Woolworths CEO with six months in prison for contempt of Senate”:https://www.abc.net.au/news/2024-04-16/woolworths-ceo-threatened-with-contempt-by-senate-committee/103728244Bloomberg report on Lina Khan and FTC:https://www.theguardian.com/us-news/2024/mar/09/lina-khan-federal-trade-commission-antitrust-monopoliesPrevious episodes discussing supermarkets and market power with Simon Cowan and Danielle Wood:https://economicsexplored.com/2023/08/31/how-to-improve-housing-affordability-and-why-the-greedflation-thesis-is-wrong-w-simon-cowan-cis-ep203/https://economicsexplored.com/2024/03/12/from-the-vault-antitrust-with-danielle-wood-now-australian-productivity-commission-chair/Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee until 30 June 2024.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.

Stephen Brittain, co-founder of Insurtech Gateway, explains how insurance technology, ‘insurtech,’ provides solutions to real-world problems. From aiding farmers in India to deal with the ‘hot cow’ problem to rethinking commercial flood insurance in the US, startups incubated by Insurtech Gateway are crucial players in helping people and businesses better handle risks.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 EP240Introduction. (0:00)Incubating startups in the insurance industry, reducing early stage risk. (4:53)Innovation in insurance industry, including use of data and AI to predict risk and personalize policies. (9:40)Using parametric insurance to manage flood risk. (14:28)Flood insurance and risk management using technology. (19:36)Using technology to mitigate risks in agriculture and the insurance industry. (24:44)Disrupting the insurance industry with new technologies and innovations. (31:21)De-risking climate innovation and insuring against natural disaster risks. (37:17)Using technology to manage natural disaster risks. (40:48)TakeawaysInsurtech is leveraging technology to fundamentally change the relationship between insurers and customers, focusing on transparency and proactive risk management.Technological advances in the insurance sector are now tackling real-world problems by enhancing predictive models and using data more effectively to mitigate risks.InsurTech innovations improve customer service and efficiency and can also address big challenges such as climate change and disaster management.Collaboration between tech innovators and traditional insurance companies can potentially redefine industry standards and expectations, leading to more tailored insurance products.Regulatory challenges remain significant, but the evolving landscape of insurtech suggests a promising future.Links relevant to the conversationInsurtech Gateway website:https://www.insurtechgateway.com/ (scroll down for the video summary of what they do)Article about the cost-benefit analysis Gene did for IND Technology:https://adepteconomics.com.au/early-fault-detection-for-rural-power-lines-can-reduce-bushfire-risk/FloodFlash:https://floodflash.co/us/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.

This episode delves into Adam Smith’s four maxims of taxation and examines their relevance in today's economic environment. Host Gene Tunny explores the balance between efficiency and equity, discussing historical perspectives and contemporary debates, such as the proposed billionaire tax.Please email us at contact@economicsexplored.com or send a voice message via https://www.speakpipe.com/economicsexplored  with any questions, comments, or suggestions. What’s covered in EP239Introduction. (0:00)Important taxation principles. (5:33)Taxation principles and maxims from Adam Smith's "The Wealth of Nations". (13:19)Wealth inequality and proposed taxes on billionaires. (20:30)A classically liberal perspective from Simon Cowan. (28:33)Taxation principles, including horizontal and vertical equity, convenience, and efficiency. (33:29)Taxation and its impact on economic activity. (41:19)Adverse impacts of high taxes: example from Australia's tobacco industry. (47:54)Wrap up of taxation principles from Adam Smith's "Wealth of Nations." (54:04)TakeawaysAdam Smith’s maxims of taxation remain highly relevant, advocating for efficiency, equity, certainty, and convenience in tax systems.Contemporary tax debates often reflect a trade-off between efficiency (minimizing economic distortions) and equity (ensuring fairness across different income groups and treating similar people in the same way).The episode highlights the potential adverse consequences of high taxation, such as reduced economic growth and black markets and organized crime.Discussions on billionaire taxes illustrate ongoing disagreements about how to design tax systems that balance economic incentives and equity.The taxation principles discussed are essential for understanding governmental approaches to raising revenue while minimizing negative economic impacts.Links relevant to the conversationRecent episode with Dan Mitchell on US debt:https://economicsexplored.com/2024/04/17/is-uncle-sam-running-a-ponzi-scheme-with-the-national-debt-w-dr-dan-mitchell-ep235/Episode featuring Simon Cowan on tax:https://economicsexplored.com/2024/02/23/the-tax-reform-debate-cutting-through-the-spin-w-simon-cowan-cis-ep228/Episode with Miranda Stewart on Billionaire and inheritance taxes:https://economicsexplored.com/2021/11/06/ep112-taxing-the-rich-billionaire-and-inheritance-taxes/Episode with Steve Rosenthal on Tax rules benefiting tech titans and hedge fund managers:https://economicsexplored.com/2021/11/22/ep114-tax-rules-benefiting-tech-titans-and-hedge-fund-managers/Adam Smith’s The Wealth of Nations: Books IV-V: https://www.amazon.com.au/Wealth-Nations-Books-IV-V/dp/0140436154One of Dan Mitchell’s posts at International Liberty on the adverse impact of taxation on economic growth:https://danieljmitchell.wordpress.com/2018/03/10/new-imf-study-shows-u-s-would-benefit-from-lower-tax-rates-and-less-government-spending/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.

This episode explores the profound influence of Reaganomics and its enduring legacy in American economic policy with tax expert and former US Treasury attorney Ed Oswald. He is the author of a new book, “From Ronald to Donald: How the Myth of Reagan Became the Cult of Trump”. Oswald discusses the transition from Reagan’s tax reforms to Trump's tax policies, highlighting the continuity in supply-side economics and its implications for fiscal policy and the national debt.Please email us at contact@economicsexplored.com or send a voice message via https://www.speakpipe.com/economicsexplored  with any questions, comments, or suggestions. About this episode’s guest: Edwin G. OswaldEdwin G. Oswald is a partner with the law firm of Orrick, Herrington & Sutcliffe LLP, resident in Washington D.C. He served as an attorney-advisor in the United States Treasury's Office of Tax Legislative Counsel during the Clinton Administration. He is a Fellow of the American College of Tax Counsel and a frequent lecturer on financing State and local infrastructure and the federal taxation of municipal debt. The book is a personal project of Mr. Oswald's and the views and opinions expressed herein are those of the co-authors and do not represent the views and opinions of Orrick.What’s covered in EP238Reagan's economic policies and their impact on the US deficit. (0:00)Supply-side economics and its impact on US deficits. (6:55)Reaganomics and its impact, and the impact of Clinton administration policies (e.g. NAFTA, repeal of Glass-Steagall). (16:14)Reagan and Trump similarities, tax cuts, and budget. (26:24)Tax policy and its impact on the economy. (33:22)TakeawaysReagan’s economic policies, particularly his tax cuts, have had a lasting influence on American politics, setting a precedent followed by later administrations, including Trump’s.Ed Oswald argues that supply-side economic policies from Reagan to Trump show a consistent belief in tax cuts for the wealthy as a means to stimulate economic growth, despite debates about their effectiveness and impact on the national debt.In Ed's view, addressing the US debt will likely require a balanced approach of tax increases and spending cuts.Links relevant to the conversationEd’s book: https://www.amazon.com.au/Ronald-Donald-Reagan-Became-Trump/dp/1476690324Ed’s bio: https://www.edwingoswald.com/Recent episode with Dan Mitchell on US debt:https://economicsexplored.com/2024/04/17/is-uncle-sam-running-a-ponzi-scheme-with-the-national-debt-w-dr-dan-mitchell-ep235/

According to the Wall Street Journal, this episode’s guest, Andy Lee, is “The Tax Whiz With the Strangest Hustle on Wall Street”. He’s the founder and CIO of Parallaxes Capital, and he joins us to talk about tax receivable agreements (TRAs). Andy explained what TRAs are, how they come about for companies going public such as Shake Shack in 2015, and why he’s investing in them. Disclaimer: Nothing in this episode should be construed as financial or investment advice.  Please contact us 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: Andy Lee,  Founder and CIO of Parallaxes CapitalAndy founded Parallaxes Capital in 2017. Previously, he was with Lone Star Funds, focused on investing in the Americas. He began his career at Citigroup.Andy graduated from the University of Illinois at Urbana-Champaign with a Masters in Accountancy and a Bachelors in Finance and Accountancy.Andy has been featured in publications including Wall Street Journal, Capital Allocators, Institutional Investor, NBC, Forbes, ReOrg Radio and Fitch’s LevFin Insights. He has spoken at events and conferences for organizations such as the Association of Asian American Investment Managers (“AAAIM”) and leading academic institutions including the University of Illinois, University of Pennsylvania and Texas Christian University (“TCU”)When Andy is not working, he enjoys taking his corgi (Taco) on long walks.Fun Fact: Andy, rarely one to back down from highly ambitious goals, ran a marathon less than 180 days from ACL, MCL and PCL surgery.Source: https://parallaxescapital.com/our-team/What’s covered in EP237Introduction. (0:00)TRAs for companies going public in the US. (6:18)TRAs agreements and their value for private equity investors (i.e. pre-IPO owners). (12:52)Tax refunds, risk management, and investment opportunities. (19:57)TRAs and investment strategies. (24:47)TRAs and their potential as a diversified investment. (30:55)TakeawaysTRAs convert future corporate tax savings (e.g. from depreciation expenses) into current income streams.TRAs provide long-dated, typically 15-year income streams that can be sold by pre-IPO owners (e.g., private equity investors).   Private equity firms use TRAs to increase their earnings from the sale of businesses they’ve invested in. Ideal Candidates for TRAs are large, stable companies with predictable long-term profitability (e.g. Shake Shack), rather than high-growth tech startups which often lack immediate profitability.US tax expertise is required to properly analyze and invest in TRAs.Links relevant to the conversationWSJ article about Andy, “The Tax Whiz With the Strangest Hustle on Wall Street”: https://www.wsj.com/finance/investing/tax-whiz-strange-hustle-wall-street-d51ddbc6Parallaxes Capital: https://parallaxescapital.com/Lumo Coffee promotionLumo Coffee Discount: Visit Lumo Coffee (lumocoffee.com) and use code EXPLORED20 for a 20% discount until April 30, 2024.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.

This episode of Economics Explored features a deep dive into the ongoing housing crisis in Australia with John August, a Pirate Party of Australia official and Sydney radio host. Gene and John discuss the significant influence of immigration rates and building restrictions on housing availability and prices. They also consider potential policy solutions to ensure more equitable housing access, including developing a charter city named Turing. Please contact us 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: John AugustJohn August is the Treasurer of the Pirate Party Australia. John does computer support work in retail and shareholder communication. He is passionate about justice and ethics in our world, particularly as it plays out in law generally and intellectual property in particular. He has stood on behalf of the Pirate Party in the Federal seat of Bennelong and also as a Councillor for Ryde City Council.Along with technology and law John is also interested in spoken word and poetry. He broadcasts on community radio and hosts the program “Roving Spotlight” on Tuesdays from noon-2pm on Radio Skid Row Marrickville Sydney, and writes about his ideas on the website www.johnaugust.com.au. You can keep up to date with what John is up to via his Facebook page: https://www.facebook.com/profile.php?id=100063805005395What’s covered in EP236Introduction. (0:00)Housing crisis in Australia, with a focus on supply and demand issues, affordability, and government policies. (2:44)Population growth, immigration, infrastructure, and housing affordability in Australia. (8:04)Housing affordability and land value taxation. (13:40)A Georgist approach to taxing land. (22:05)Immigration and foreign aid in Australia. (31:24)Reducing immigration and addressing housing challenges in Australia. (37:46)Immigration policy, infrastructure, and zoning regulations in Australia. (41:45)Potential for charter cities (e.g. Turing) and high-speed rail links. (47:34)Foreign aid, shipping, and taxation. (53:35)TakeawaysThe housing crisis in Australia is exacerbated by high immigration levels and stringent building restrictions, which affect affordability.Policy debates are intensifying around whether to restrict immigration to ease housing demand or to relax zoning restrictions on development to boost supply.The concept of "upzoning," similar to Auckland’s approach, could be a viable solution to create more housing in existing urban areas.Proponents of high immigration levels often overlook the infrastructural and social costs associated with a rapidly increasing population through high immigration rates.The discussion of housing involves not only economic metrics but also the quality of life and housing accessibility for all population segments.Links relevant to the conversationLeith Van Onselen on immigration and housing: https://www.macrobusiness.com.au/2024/04/albo-lies-his-way-out-of-rental-crisis/Previous episode with Natalie Rayment: https://queenslandeconomywatch.com/2021/04/16/missing-middle-housing-podcast-chat-with-natalie-rayment-of-wolter-consulting/John’s conversation with Cameron Murray on housing: https://www.mixcloud.com/Johnorg/roving-spotlight-28-november-reviewing-a-pirate-look-at-the-housing-market-with-cameron-murray/Freightened documentary about the cost of shipping: https://thoughtmaybe.com/freightened/Lumo Coffee promotionLumo Coffee Discount: Visit Lumo Coffee (lumocoffee.com) and use code EXPLORED20 for a 20% discount until April 30, 2024.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.

In this episode, show host Gene Tunny engages with Dr Dan Mitchell in a frank discussion about the US’s looming debt crisis. The conversation covers Dan’s new book, co-authored with Les Rubin, The Greatest Ponzi Scheme on Earth: How the US Can Avoid Economic Collapse. In the episode, Dan talks about the unsustainable trajectory of federal debt, the consequences of government overspending, and the tough choices needed to avert economic disaster. Hear how Dan reacts to the Modern Monetary Theory view that debt and deficits aren’t a problem. Please contact us 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: Dr Dan MitchellDaniel J. Mitchell is a top expert on fiscal policy issues such as tax reform, the economic impact of government spending, and supply-side tax policy. Mitchell is a former senior fellow with The Cato Institute and The Heritage Foundation and served as an economist for Senator Bob Packwood and the Senate Finance Committee. His articles can be found in such publications as the Wall Street Journal, New York Times, Investor's Business Daily, and Washington Times. He is a frequent guest on radio and television and a popular speaker on the lecture circuit. Mitchell holds bachelor's and master's degrees in economics from the University of Georgia and a Ph.D. in economics from George Mason University. What’s covered in EP235Introduction. (0:00)US government debt and entitlement programs. (4:48)Government spending and its impact on the economy. (9:05)US government spending, Social Security, and fiscal policy. (14:06)US retirement systems and entitlement programs. (18:32)Medicare reform and the federal budget. (24:05)US budget deficits and entitlement programs. (27:59)Taxes, spending, and economic growth. (33:01)Kyle Kulinksi clip. (38:11)Dan responds to Monetary Monetary Theory (41:00).Entitlement programs and government spending. (44:40)TakeawaysThe US federal debt is soaring, with projections showing a large increase in the debt-to-GDP ratio in the coming decades.Government spending, particularly on entitlement programs, is the primary driver of fiscal imbalance.Addressing the debt crisis requires significant policy changes, including reforming entitlement programs like Social Security and, to a lesser extent, Medicare and Medicaid.Reforming Social Security through personal retirement accounts could save trillions over the long run.Lessons from other countries show that fiscal discipline and restructuring can improve economic stability.Links relevant to the conversationThe Greatest Ponzi Scheme on Earth: How the US Can Avoid Economic Collapse: https://www.amazon.com.au/Greatest-Ponzi-Scheme-Earth-Economic/dp/1637632770 Dan’s bio: https://mises.org/profile/daniel-j-mitchellDan’s International Liberty blog: https://danieljmitchell.wordpress.com/Dan’s post “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/Dan’s post “The IMF, The Laffer Curve, And Supply-Side Economics”: https://freedomandprosperity.org/2022/blog/the-imf-the-laffer-curve-and-supply-side-economics/Lumo Coffee promotionLumo Coffee Discount: Visit Lumo Coffee (lumocoffee.com) and use code EXPLORED20 for a 20% discount until April 30, 2024.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.

In this episode, we delve into the controversy surrounding the Prospera charter city in Honduras, which has embraced libertarian principles and adopted Bitcoin as legal tender and a unit of account. The city is currently embroiled in a legal battle with the Honduran government. Gene asks Jeffrey Mason, from Charter Cities Institute, what it all means for the future of charter cities. Jeffrey provides some good examples of how charter cities still have a lot of potential, and he talks about projects CCI is involved in in Africa, particularly in Zanzibar. Tune in to gain insights into the intersection of governance, economics, and innovation in the context of charter cities.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: Jeffrey Mason, Head of Research, Charter Cities Institute Jeffrey joined CCI as a Researcher in 2019. His research interests include urban economics, structural transformation, special economic zones, and technology ecosystems. He has worked on policy advisory projects in Nigeria, Tanzania, Zambia, and Honduras, among other countries. Prior to joining the Charter Cities Institute, Jeffrey worked as an MA Fellow at the Mercatus Center at George Mason University. He holds a BA in economics from the University of Maryland and an MA in economics from George Mason University. His writing has been featured in publications including City Journal, Works in Progress, Investment Monitor, Quartz Africa, and The American Mind.What’s covered in EP234Introduction. (0:00)Honduran ZEDEs: zones for employment and economic development. (4:12)Honduran ZEDEs and impacts on local communities. (9:41)Investor-state dispute settlement mechanisms. (15:15)Charter cities and their potential to improve governance and economic growth. (20:37)Charter cities and urban development in Zanzibar. (26:15)Affordable housing development in Zanzibar, Tanzania. (30:56)Urban development and new city projects. (39:27)TakeawaysThe controversy surrounding Prospera in Honduras highlights the risks and uncertainties involved in charter city projects.The concept of charter cities is evolving, with a growing emphasis on affordability, local engagement, and sustainable development to ensure their long-term success.Legal and political stability, along with government partnerships, are crucial for the success of charter cities, as demonstrated by the contrasting experiences of Prospera and the Zanzibar project, Fumba Town, that Charter Cities Institute is involved in.Links relevant to the conversationJeffrey’s bio: https://chartercitiesinstitute.org/people/jeffrey-mason/Ryan Grim’s report at the Intercept “Honduras Ratchets Up Battle With Crypto-Libertarian Investors, Rejects World Bank Court”: https://theintercept.com/2024/03/19/honduras-crypto-investors-world-bank-prospera/Counter Points report “Honduras GOES TO WAR With Crypto Bros”, CCI's involvement with Fumba Town: https://chartercitiesinstitute.org/fumba-town/Fumba Town: https://chartercitiesinstitute.org/fumba-town/EP147 with Kurtis Lockhart on charter cities: https://economicsexplored.com/2022/07/11/charter-cities-a-public-private-partnership-ppp-model-w-kurtis-lockhart-ep147/Lumo Coffee promotionLumo Coffee Discount: Visit Lumo Coffee (lumocoffee.com) and use code EXPLORED20 for a 20% discount until April 30, 2024.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.