Michael Munger

Dec 31, 2024 | thedailyeconomy.org | Michael Munger

Politicians want to create jobs, “good-paying union jobs,” in existing industries. But that’s not what markets do. The “destructive” part of creative destruction eliminates jobs in existing industries. In a dynamic economy, innovations in division of labor can create good-paying jobs  in new industries, but new industries require entrepreneurs, not politicians. Frederic Bastiat had two devastating satires of how policies designed to “create jobs” actually cause economic disaster.

Nov 11, 2024 | capitalismmagazine.com | Michael Munger

We have been hearing a lot about tariffs lately. Some of it is accurate and useful. But not much. Here are five dangerous myths about tariffs. Tariff Myth 1. Tariffs are a “sales tax”A sales tax is (usually) an ad valorem levy imposed at the point of final sale, and added to the listed price of the item. So, a 5 percent sales tax on a $10 widget means the consumer pays $10.50. In the US, sales taxes are transparent, itemized separately on the receipt.

Oct 7, 2024 | econlib.org | Michael Munger

Book Review of What Went Wrong with Capitalism? by Ruchir Sharma. Capitalism has a “Pretty Pig” problem. The reference is to a state fair livestock contest, where there is a judging of the beauty of adult swine. There are only two entrants, because adult swine just aren’t pretty. The first pig is brought out, and the judges are horrified, because it’s ugly. The judges give the “Pretty Pig” award to the second pig, sight unseen.

Sep 24, 2024 | independent.org | Michael Munger

Angry headlines have recently proclaimed “Kroger Executive Admits Company Gouged Prices Above Inflation,” and “Corporate greed exposed: Kroger admits to price gouging on milk and eggs amid antitrust trial.” There are several problems with this account. The first is that recent price increases are caused by “corporate greed.” But there is never any explanation for why greed has somehow increased, and then decreased when price increases have subsided.

Sep 17, 2024 | independent.org | Michael Munger

Nearly ten years ago, I wrote what I thought was a provocative essay about polygamy and the state. Specifically, I claimed that the state acts like a polygamist, enforcing a cruel and explicitly patriarchal regime on single mothers. Perversely, the justification for this repressive regime is compassion, even “social justice.” One of the most corrosive aspects of patriarchy is that it treats women as objects, rather than active moral agents in their own right.