Episode 85 of Economics Explored is a conversation on business cases for public infrastructure projects, featuring a case study of an Australian dam project. It includes a discussion of the requirements and processes for the development of public infrastructure business cases in Australia, with a case study of a current business case process relating to an irrigation dam which program host Gene Tunny is involved in. While Australian examples are used, the insights and lessons are relevant internationally. In many respects, Australian processes and requirements for developing public infrastructure business cases are world-leading.
The weight of biblical evidence certainly suggests that he wasn’t a socialist, not that he was a capitalist, but there’s certainly more overlap. And one of the key points would be socialism is involuntary…so any redistribution…it’s by government fiat, by government force. That’s at great odds with the Bible and what Jesus taught…Jesus expected people to follow him voluntarily. He expected them to be generous voluntarily. And, obviously, the free market is all about things being voluntary.
Darren and I had a wide-ranging discussion considering, among other issues, the impacts of religion on economic growth and whether the rich can get into heaven, given you cannot serve both God and Mammon.
Darren’s articles on religion and economics include:
One year on from when many countries started imposing tough COVID-19 control measures, Economics Explored host Gene Tunny asks eminent Australian finance Professor Peter Swan whether lockdowns pass a cost-benefit analysis test. In Episode 79 Running the Numbers on COVID-19 measures, Professor Swan says he stands by his view expressed last year that they do not. Listen to this episode to hear why Prof. Swan believes this is so.
About this episode’s guest– Professor Peter Swan
Professor Peter Swan AO FRSN FASSA is currently in Banking and Finance, UNSW-Sydney Business School. Peter completed his Honours Economics Degree at ANU, his PhD at Monash and after a visiting position at the University of Chicago, joined the Economics faculty at ANU, then to a chair at AGSM (UNSW), and was foundation professor in the Finance Department at the University of Sydney prior to returning to UNSW in 2002 with a Scientia Professorial Award in 2003.
He was elected a Fellow of the Academy of Social Sciences in Australia in 1997 and gained recognition in the Queen’s Birthday Honours lists in 2003 and 2016 with the Order of Australia (AM) and (AO), respectively. In 2018 he was elected a Fellow of the Royal Society of New South Wales (FRSN). His Officer of the Order of Australia (AO) Citation states: “For distinguished service to finance and commerce as a leading academic, journalist, and commentator on domestic investment, and on a range of political and economic issues.” His Member of the Order of Australia (AM) Citation states: “For services to academia as a scholar and researcher and through contributions to public policy in the fields of economics and finance”.
Economics Explored episode 68 COVID and Wartime features a conversation on whether COVID can be compared to wartime, which considers the different scales and scopes of the shocks, and what it all means for prospects for economic recovery. Economics Explored host Gene Tunny, an Australian professional economist and former Treasury official, speaks with businessman Tim Hughes, also based in Brisbane, Australia.
Gene and Tim conclude that a comparison of COVID to wartime isn’t valid. One reason is that World War II required a complete reorganisation of the economy to maximise production for the war effort, while COVID has involved restrictions that have reduced economic activity.
It’s been a challenging year 2020, but one positive development is that regulators in the US and Australia have started challenging the Big Tech companies Google and Facebook over alleged misuses of market power. The US Department of Justice is taking on Google over its search dominance and the Federal Trade Commission is taking on Facebook over allegedly restricting competition by buying up potential competitors such as Instagram and WhatsApp. In Australia, the Media Bargaining Code designed to assist traditional media companies negotiate for a share of ad revenue with Big Tech is currently being considered by a Senate committee. In my latest Economics Explored podcast episode Regulating Big Tech, I provide an update on moves by governments and regulators, and I discuss the relevant economic concepts and policy issues.
When I recorded the latest episode of my Economics Explored podcast last Friday afternoon, the price of one Bitcoin was a bit above US$18,000 after having failed to get beyond US$20,000 in the previous weeks. In my chat with my friend Tim Hughes, I said who knew what it would end up at when the episode was finally released. Well, it turns out that the price of one Bitcoin has finally gone beyond US$20,000 (check out this Coindesk report).
The US$20,000 Bitcoin price is the latest illustration of the Greater Fool Theory. If you’re buying Bitcoin at this price you’re speculating/gambling you’ll find a greater fool who’ll buy it at a higher price. Coindesk suggests there could be a lot of greater fools out there:
Breaking above $20,000, which represented a significant hurdle in the mindset of most traders, is entirely new ground for bitcoin and opens the doors for a climb to $100,000 over the course of 2021, according to some.
The latest episode of my Economics Explored podcast considers the emerging field of behavioural finance, which is basically the application of behavioural economics to finance. It considers lessons from this field for households, investors, and governments. The episode features an interview I conducted earlier this week with Dr Tracey West of the Griffith Business School.
Tracey teaches behavioural finance to undergraduates and postgraduates at Griffith’s Gold Coast (Queensland, Australia) campus. She’s also an active commentator on economic policy issues. For instance, last year, Tracey wrote an excellent Conversation article on 3 lessons from behavioural economics Bill Shorten’s Labor Party forgot about, three lessons which Tracey and I consider in our conversation. Those lessons are:
1. People are loss averse
2. Limited decision-making
3. Now is worth more than later (and much more so than economists would typically assume using typical discount rates).
Tracey and I had a great discussion about behavioural finance theory and practice, including the need for regulation of financial markets and investments. The Storm Financial collapse, which wrecked the finances of many North Queenslanders, was given as an example illustrating the need for regulation of financial investments. I hope you enjoy our conversation. A transcript is available via my business website.
First, I should say that Gillian Anderson nailed Margaret Thatcher’s voice and mannerisms in season 4 of the Crown, but she had to work with some pretty dreadful scripts at times. Thatcher was cast as the villain responsible for high unemployment and social dislocation in 1980s Britain, but we weren’t reminded of crisis-ridden 1970s Britain which Thatcher inherited and needed to repair. There was the 1976 IMF Crisis and the 1978-79 Winter of Discontent, among other debacles. During the latter, with council workers on strike, Leicester square in London’s West End was turned into a temporary garbage tip. The country was literally a mess, and the heavy state intervention, which Thatcher partly wound back in the 1980s, was to blame. Certainly, the Iron Lady had her flaws, but she deserved a much fairer portrayal than was given her in the Crown.
I recently spoke about Margaret Thatcher, and Adam Smith, too, with Dr Eamonn Butler, Director of the Adam Smith Institute, and our recorded conversation is now available as Episode 64 of my Economics Explored podcast. We spoke about the lessons of Adam Smith, why Thatcher’s economic measures were necessary, why the Adam Smith Institute is unashamedly neoliberal, and finally about the deleterious consequences of wage and price controls which have been observed since Babylonian and Roman times. I hope you enjoy our conversation.