The Human Action Podcast

Is economics a hard science? The discussion dives into critiques of mainstream economic practice and defends the Mises-Rothbard perspective of economics as praxeology, focusing on human action rather than lab experiments. Bob examines concepts like opportunity cost, unexpected market crashes, and the implications of the Efficient Markets Hypothesis. He argues that while economics cannot predict crises with precision, qualitative warnings about systemic risks are crucial. Ultimately, he likens economic theory to geometry—rigorous and deductive, rather than empirical.

Dr. Jonathan Newman joins the Human Action Podcast to discuss his recent QJAE article disputing the claim that 'sticky prices' prevent markets from clearing--i.e., when the quantity supplied equals the quantity demanded. Dr. Newman applies Mises’s “plain state of rest” to show that each voluntary exchange equates quantities supplied and demanded, so observed “stickiness” doesn’t imply non-clearing markets."There Ain't No Such Thing as a Sticky Price": Mises.org/HAP525aThe Mises Institute is giving away 100,000 copies of Hayek for the 21st Century. Get your free copy at Mises.org/HAPodFree

Is paying down the federal debt a recession trigger? Bob takes on the MMT claim and checks the record, citing US debt payoffs, Canada’s 1990s reforms, and ECB case studies. Conclusion: real wealth beats accounting tricks and paydowns aren’t a mechanical path to recession.Read More on Fiscal Austerity: Mises.org/HAP524aThe Upside-Down World of MMT: Mises.org/HAP524bDo Balanced Budgets Cause Depressions?: Mises.org/HAP524cThe Mises Institute is giving away 100,000 copies of Hayek for the 21st Century. Get your free copy at Mises.org/HAPodFree

Alex Pollock joins the Human Action Podcast to explain his recent Congressional testimony on the Fed’s growing insolvency and mandate overreach. The Fed now admits to $243 billion in operating losses and nearly $1 trillion in mark-to-market losses, leaving it with negative capital of about $197 billion. Pollock explains how the central bank transformed itself into “the biggest 1980s-style savings and loan in history” — funding short while buying long, and bleeding cash as interest rates rose.Read the Congressional Testimony: Mises.org/HAP523aRead More from Alex Pollock: Mises.org/HAP523bThe Mises Institute is giving away 100,000 copies of Hayek for the 21st Century. Get your free copy at Mises.org/HAPodFree

In this episode of the Human Action Podcast, Bob unpacks Lerner’s Symmetry Theorem—the classic result that, under tight conditions, an import tariff is equivalent to an export tax. He applies the framework to recent 100% China‑tariff headlines, explaining why the dollar might strengthen in theory yet sometimes weakens in practice once retaliation and policy signaling are factored in.The Human Action Podcast on Trump's Tariff Strategy: Mises.org/HAP522a The Lerner Symmetry Theorem: Mises.org/HAP522bThe Mises Institute is giving away 100,000 copies of Hayek for the 21st Century. Get your free copy at Mises.org/HAPodFree

Bob dives into the fears surrounding AI and automation, countering claims of mass unemployment with economic principles. He discusses how skilled labor can coexist with less-skilled workers and how innovation typically improves living standards. Historical comparisons to past technologies reveal the need for nuance. Explore how lower production costs from AI can benefit consumers and decrease prices. Bob also tackles existential fears about AI dominance while highlighting the importance of cooperation over conflict.

Jonathan Newman returns to join Bob in a critique of Eliezer Yudkowsky’s viral theory of investment bubbles. Yudkowsky states that the bad investment during bubbles should be felt before the bubble pops, not after. They argue that his perspective—while clever—fails to consider the Austrian insights on capital structure, time preference, and the business cycle. They use analogies from apple trees to magic mushrooms to show why Austrian economics provides the clearest explanation for booms, busts, and the pain that follows.Eliezer Yudkowsky's Theory on Investment Bubbles: Mises.org/HAP520aBob's Article "Correcting Yudkowsky on the Boom": Mises.org/HAP520bBob's on The Importance of Capital Theory: Mises.org/HAP520cJoe Salerno on Austrian Business Cycle Theory: Mises.org/HAP520dDr. Newman's QJAE Article on Credit Cycles: Mises.org/HAP520eThe Mises Institute is giving away 100,000 copies of Hayek for the 21st Century. Get your free copy at Mises.org/HAPodFree

Georgy Ganev, a monetary economist and author, joins Bob to delve into the origins of money, arguing that the barter theory remains relevant against critiques by David Graeber. They discuss how anthropological evidence supports this theory and outline Mises' regression theorem as a solid explanation for money's value. Ganev critiques claims against barter, suggesting that even rare examples, like Radford's POW camp cigarettes, demonstrate the transition to money. The conversation emphasizes that once surplus trade starts, money quickly emerges.

In a thought-provoking solo discussion, Bob debunks the narrative that private equity firms are solely to blame for rising home prices. He argues that speculators can stabilize markets instead of destabilizing them and critiques policies like land taxes. Bob emphasizes that zoning restrictions and the Federal Reserve's actions are significant factors behind soaring prices. He also explores the dynamics of investor buying and the myth that corporate landlords will eliminate home ownership. The conversation invites a deeper understanding of housing economics.

Bob talks with economist Jeff Degner about his new book Inflation and the Family. Drawing inspiration from Guido Hülsmann’s The Ethics of Money Production, Professor Degner shows how central bank policies and interest rate manipulation create ripple effects beyond prices and GDP. From marriage formation to fertility decisions and divorce trends, he explains how inflation fosters short-termism, debt culture, and moral hazard within households.Join Jeff Degner and other Mises faculty on November 1st for our first student-only event at Cornerstone University in Grand Rapids, Michigan. Find out more at Mises.org/Cornerstone25Inflation and the Family: Mises.org/HAP517aThe Mises Institute is giving away 100,000 copies of Hayek for the 21st Century. Get your free copy at Mises.org/HAPodFree