Robert Murphy | The Libertarian Institute

The Bogus “Consensus” Argument on Climate Change

by Robert Murphy | Oct 24, 2019 | Economics, Featured Articles, Libertarianism

One of the popular rhetorical moves in the climate change debate is for advocates of aggressive government intervention to claim that “97% of scientists” agree with their position, and so therefore any critics must be unscientific “deniers.” Now these claims have been dubious from the start; people like David Friedman have demonstrated that the “97% consensus” assertion became a talking point only through a biased procedure that mischaracterized how journal articles were rated, and thereby inflating the estimate. But beyond that, a review in The New Republic of a book critical of mainstream...

Do We Really Have a Decade Left to Solve Climate Change?

by Robert Murphy | May 20, 2019 | Featured Articles, Politics

Wise alecks on social media noted with amusement how Beto O’Rourke recently claimed humans had only ten years to act on climate change, thus one-upping Alexandria Ocasio-Cortez who had previously gone out on a limb by putting the deadline at twelve years. Snark aside, it’s important to point out that the “consensus science” as codified, for example, in the periodic reports from the United Nations do not support such a cliff-hanger mentality at all. Our Political Figures Ignore the IPCC The quickest way to make this point is to reproduce something I highlighted several years ago in an IER...

The Upside-Down World of MMT

by Robert Murphy | Jan 25, 2019 | Featured Articles, Politics

[Editor's note: MMT is back in the news, championed by Congresswoman Alexandria Ocasio-Cortez and former Bernie Sanders advisor Stephanie Kelton. Economists like Brad DeLong and Paul Krugman are giving MMT at least faint praise, and even National Review has favorable things to say. Ironically, MMT is neither modern nor truly "monetary;" instead it is a combination of tired fiscal and monetary policies. Our Senior Fellow Robert Murphy first wrote this article debunking MMT in 2011, but every word applies today.] Modern Monetary Theory (MMT) is a hip economic/financial paradigm apparently...

The Idea That the Fed Is ‘Independent’ Is Absurd

by Robert Murphy | Sep 6, 2018 | Economics, Featured Articles

President Donald Trump sparked controversy — as is his wont — when he recently told CNBC that he was “not thrilled” with the Federal Reserve’s announced hikes in short-term interest rates, which he claimed would hinder the economic expansion for which his administration had worked so hard. “I’m letting them [the Fed] do what they feel is best,” he added, but this assurance was not enough to prevent journalists and policy experts from pronouncing Trump’s remarks as unprecedented interference with the central bank’s independence. It may be unusual for a president to openly voice such...

3 Good Things About "Price Gouging"

by Robert Murphy | Sep 7, 2017 | Featured Articles

As so often happens in the wake of a natural disaster, government officials in Texas are currently investigatingclaims of “price gouging,” which the office of the Attorney General reminds residents is illegal after the governor declares a disaster. This is a classic example of the ostensible contrast between greed and altruism, capitalism and charity. Economists who favor the free market know the standard arguments for letting the price skyrocket to “clear the market” when there are supply shortages and demand spikes. These are important arguments, and indeed I will review them below. At the...

3 Good Things About “Price Gouging”

by Robert Murphy | Sep 7, 2017 | Featured Articles

As so often happens in the wake of a natural disaster, government officials in Texas are currently investigatingclaims of “price gouging,” which the office of the Attorney General reminds residents is illegal after the governor declares a disaster. This is a classic example of the ostensible contrast between greed and altruism, capitalism and charity. Economists who favor the free market know the standard arguments for letting the price skyrocket to “clear the market” when there are supply shortages and demand spikes. These are important arguments, and indeed I will review them below. At the...

Reflections on Donald Trump’s Election

by Robert Murphy | Nov 14, 2016 | Economics, Featured Articles, Politics

As the markets and pundits react to Donald Trump’s enormous upset victory, let me offer my own reactions. As an economist, I will focus on matters pertaining to economic policy. The Danger of Hubris and Denial. Everybody recognizes that the “experts” and polls were totally wrong. Indeed, I was listening to NPR around 6 p.m. Eastern time on Election Night, and these commentators were all but speculating on President Clinton’s Cabinet. Later, around midnight, I was curious how NPR’s anchors would handle the blow. I am only slightly exaggerating when I say that the explanation was, “Trump...