Prof @ Duke U
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Articles by Michael Munger
Die wehrhafte Demokratie scheitert an ihrer eigenen Logik
Im Kern verlangt der Liberalismus Demut und Toleranz. Ist Toleranz aber möglich, wo die Demut fehlt? Der Dichter William Butler Yeats hat das Problem auf den Punkt gebracht: Things fall apart; the centre cannot hold; Mere anarchy is loosed upon the world, The blood-dimmed tide is loosed, and everywhere The ceremony of innocence is drowned; The best lack all conviction, while the worst Are full of passionate intensity.
Zoning and the American Way
A friend of mine was once mayor of a small city, about forty thousand souls. A local landowner petitioned to develop single-family homes on a parcel he owned, about 20 acres. It was “ranch land,” given over to meadows with a few copses of trees. Lovely place. When the hearing was held over this development, there was a surprise waiting: all six neighbors showed up to insist, vociferously, that the rancher must not be allowed to develop the land. They said they preferred the meadows and trees.
Threading the Development Needle
“Once you sink that first stake,” the ur-developer Robert Moses liked to say, “they’ll never make you pull it up.” His style of full-speed-ahead urban planning led to the creation of some of the public works that shape New York City to this day: five bridges, two tunnels, multiple highways and expressways, a system of public parks, pools, beaches, and more. Moses’s imperial style, of course, had its critics.
The Cultural Theory of YIMBY
How does anything get built? What are the political precursors to development? Michael Munger has an interesting, and at times persuasive, argument that self-interest combines with particular institutional designs, such as public hearings, to create a prisoner’s dilemma where everyone knows that development is in aggregate desirable but wants that development to be in the next town over. This is, in many ways, the conventional story of NIMBY (not-in-my-backyard) politics.
Put It in Your Own Backyard
On a chilly Thursday evening last December, citizens in Dorr, Michigan, a small community about a half-hour south of Grand Rapids, attended a town hall meeting to discuss the possible construction of a data center on the north end of town. Some of the attendees came from families who had lived in Dorr for generations and, worried about the disruptions posed by a new data center, came ready to defend their town.
Hearts, Minds, and Dollar Signs
September 9, 2026 Aspiring builders do have a problem, but democracy isn't it. Much hinges on the liberty to build. A man who can’t build a factory loses his liberty to run a manufacturing business. A man who can’t find a house in his hometown (because they’ve outlawed building houses) loses his liberty to live, work, and raise his family there. Law and liberty come to a head at the local planning commission.
The NIMBY Prisoner's Dilemma
In the last thirty years or so, the United States has seen persistent shortages of housing, waste disposal facilities, electricity generation, and oil refineries. More recently, we have begun to see the difficulties in building data centers, portending new shortages. This is confusing in a wealthy nation. A “shortage” occurs when there is too little of a good or service at the prevailing price.
The NIMBY Prisoner's Dilemma
In the last thirty years or so, the United States has seen persistent shortages of housing, waste disposal facilities, electricity generation, and oil refineries. More recently, we have begun to see the difficulties in building data centers, portending new shortages. This is confusing in a wealthy nation. A “shortage” occurs when there is too little of a good or service at the prevailing price.
Baseball Is Being Watched More Than Ever. But Fewer People Are Falling in Love With It. Original
Few American institutions illustrate the dynamics of creative destruction quite so vividly as baseball in the 21st century. Television empires have emerged and then been destroyed; streaming platforms have filled the void. New rules have been implemented, games have gotten shorter, and computers call balls and strikes. Attendance has stabilized after years of hand wringing about the game dying. Baseball is being seen by more people, in more ways, than ever before.
Foundations of Public Choice: A Primer
Public Choice is more than you think. The usual quick definition—“applying economics to the study of politics”—is not wrong, but it’s facile. Public Choice asks how political actors use information and respond to incentives. That’s a lot more than just an application of economic tools to a new context. Public Choice was born of a dissatisfaction with the lazy habit of identifying a “market failure” and then dispatching a unified, benevolent, and competent “government” to correct it.
Seeing with Two I’s: States, Markets, and Some Advice for Us Liberals
Liberalism has two mutually reinforcing aspects. The first is humility: I can’t assume I’m right. The second is toleration: I can’t assume you’re wrong. The practice of liberalism therefore rests on a strong, but rebuttable, deference to individual agency. That practice requires a deep skepticism of concentrations of power. Historically, the different flavors of liberalism have privileged some kinds of power and handicapped others.
Warum Adam Smith immer noch missverstanden wird (Englisch) - Why Adam Smith Is Still Misunderstood – Schweizer Monat
Wir brauchen Ihre Unterstützung — Jetzt Mitglied werden! Weitere Infos Zum Inhalt springen Das könnte Sie auch interessieren Ausgaben-Archiv In unserem Archiv finden Sie 260 Ausgaben. Digital. Zum Durchblättern und Lesen. Alle 260 Ausgaben ansehen
Why Adam Smith Is Still Misunderstood – Schweizer Monat
Wir brauchen Ihre Unterstützung — Jetzt Mitglied werden! Weitere Infos Zum Inhalt springen Das könnte Sie auch interessieren Ausgaben-Archiv In unserem Archiv finden Sie 260 Ausgaben. Digital. Zum Durchblättern und Lesen. Alle 260 Ausgaben ansehen
Adam Smiths «Wohlstand der Nationen» erschien vor 250 Jahren: Fünf Gründe, warum es bis heute wichtig ist – Schweizer Monat
Read the English version here. Vor 250 Jahren ist das Hauptwerk von Adam Smith, «The Wealth of Nations» (auf Deutsch: «Der Wohlstand der Nationen»), erschienen. Es war konzipiert als Werk der «politischen Ökonomie». Wichtig ist, dass Smith ziemlich direkt darauf besteht, dass dieser Ansatz als «ein Zweig der Wissenschaft des Staatsmannes oder Gesetzgebers» zu betrachten sei.
Adam Smith’s “Wealth of Nations” at 250: Why It Still Matters – Schweizer Monat
https://schweizermonat.ch/wp-content/uploads/2026/03/adam_smith_250_male.mp3 Lesen Sie die deutsche Version hier. Adam Smith’s “The Wealth of Nations” was published 250 years ago. The central thesis of The Wealth of Nations involves both a mechanism and a means. The mechanism is the full development of the motor of prosperity and growth, which Smith called “opulence.” This wealth is access to the necessities and conveniences of life, rather than bullion or assets.
Die Zerschlagung der digitalen Giganten wäre ein Fehler – es gibt einen klügeren Weg – Schweizer Monat
Read the English version here. In der Fabel «Hans und die Bohnenranke» tauscht Hans seine Kuh gegen ein paar Zauberbohnen, die über Nacht zu einer gigantischen Ranke heranwachsen. Hans klettert hinauf. Er erklimmt die Ranke, trifft auf einen gefährlichen Riesen, stiehlt dessen goldene Gans, wird reich – und lebt glücklich bis ans Ende seiner Tage. Furcht vor den Riesen kennen nicht nur Kinder aus ihren Märchen.
We can’t crush big platforms without destroying their big social benefits – but there’s a better solution – Schweizer Monat
Lesen Sie die deutsche Version hier. In the fable “Jack and the Beanstalk”, Jack trades for some magic beans, which grow into enormous size. Jack climbs the beanstalk, and finds a dangerous giant who threatens him. Jack steals the goose that lays golden eggs, becomes rich, and lives happily ever after.
Duke's Tent City 'K-Ville' — Still Crazy After 40 Years | The Daily Economy
In January of 2026, just like every January since 1986, a basketball Brigadoon will rise on Duke’s campus. This village, locally known as “Krzyzewskiville,” exists for just a few short weeks every year, and then disappears. But while it lives, it is a beehive of activity, with surprisingly specific and aggressively enforced rules. K-Ville is not just a place, but a student-organized system of governance with its own rules, enforcement, and dispute resolution mechanisms.
Adam Smith's Nation of Shopkeepers
This the eighth in our series of podcasts with Mike Munger in anticipation of the 250th anniversary of The Wealth of Nations. The recording is also available via Munger's podcast, "The Answer is Transaction Costs" [TAITC]. Want to explore more? Explore the Pamphlet Debate on the American Revolution Collection at the Online Library of Liberty. Explore our collection of essays on Adam Smith and the American Founding at AdamSmithWorks.
What Uber and AirBnB Really Sell: Sharing with Transaction Costs Slashed
Americans love a garage, but we don’t park cars there. We store old bikes with bent wheels, parts of beds and dressers, and a wide variety of tools and old clothes. Personally, I have a box of old electronic parts and cables that I’m sure I’ll use…. someday. It was not always like this. People had only a few things, and shared by allowing reciprocal borrowing. Often there was some communal arrangement for bigger things, as with the neighborhood bread ovens of medieval Europe.
Five Myths About Tariffs
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.
We Have Never Been Austere
Austerity comes from the Greek word “austeros,” connoting harsh, bitter, astringency. The first instance of the word to mean fiscal discipline was in 1937, when John Maynard Keynes admonished a fretful President Roosevelt that “the boom, not the slump, is the right time for austerity at the Treasury.” That view appears to have changed slightly, in the sense that now austerity, even during “the boom,” is suspect.
Playing Chicken with the Federal Budget: The Rational Stupidity of Shutdowns
“Chicken” is a game where two people, or two groups, want different things, in a context where “I win/you lose.” That is, there are no gains from exchange or compromise, and the loser is not only worse off, but embarrassed. Government shutdowns are chicken games. Knowing that gives us a way to understand what is happening. When I teach “chicken” I tell students to imagine you and James Dean, both in souped up 1967 Mustangs, are facing each other on a narrow road, about 1 mile apart.
Before Capitalism: Smith’s Real Theory of Capital
This the fourth in our series of podcasts with Mike Munger in anticipation of the 250th anniversary of The Wealth of Nations. The recording is also available via Munger's podcast, "The Answer is Transaction Costs" [TAITC]. Questions for Discussion: Does Smith’s parsimony/previous accumulation sufficiently explain the very first pools of capital, or does Marx’s state-driven primitive accumulation better fit the historical record of England and the Netherlands?
Peak Population: Prepare for a Shrinking World
Climate panic and coercive family planning created a new global crisis: shrinking, aging societies headed for demographic disaster. Commentary Earth is going to hit “peak population” before the end of this century. Within 25 years, most of the world’s developed nations will be facing sharp population declines, with shrinking pools of young people working to support an ever-aging population.
Earth's population will begin to shrink in a few decades. That's bad news for everyone
(The Daily Economy) — Earth is going to hit “peak population” before the end of this century. Within 25 years, most of the world’s developed nations will be facing sharp population declines, with shrinking pools of young people working to support an ever-aging population. The reason is not famine, war, or pestilence. We did this to ourselves, by creating a set of draconian solutions to a problem that didn’t even exist.
Peak Population: Prepare for a Shrinking World
Earth is going to hit “peak population” before the end of this century. Within 25 years, most of the world’s developed nations will be facing sharp population declines, with shrinking pools of young people working to support an ever-aging population. The reason is not famine, war, or pestilence. We did this to ourselves, by creating a set of draconian solutions to a problem that didn’t even exist.
Burger Chef and the McDonald's Happy Meal: A Case Study in Creative Destruction
Joseph Schumpeter famously said that creative destruction is the “essential fact about capitalism.” Entrepreneurs are the moving force in Schumpeter’s drama, but they are victims as often as heroes. The reason is that having an idea is not enough; you have to make it work in the marketplace. The invention of ideas, and the fast borrowing of those ideas, reflect both the destruction and the creation of Schumpeter’s insight.
Justice and Exchange in Commercial Society
wealth of nations self-interest impropriety exchange administration of justice August 19, 2025 The Wealth of Nations. An overview and covering the introduction in Book One. This episode walks through key ideas in Book I, including the famous examples of the pin factory and the woolen coat, used to illustrate the productivity gains from the division of labor.
【國際瞭望】農作物保險、賽車及安全帶：安全措施越多 風險越大| 台灣大紀元
⊙Michael Munger 「鑑於我們（在發生事故時）會筆直的撞上去。我們的鼻子會被撞扁在儀表板上。因此，我們會有一個安全氣囊，在我們撞車時，氣囊會膨脹起來保護我們。 「現在我們可以開得更快，更不必顧及他人了：我們會沒事的。你不覺得如果我們真的在乎駕駛安全，我們可以考慮用一排尖釘來代替氣囊嗎？」 當然我們明白，這些並不是嚴肅的建議，只是調侃而已。 在過去的六十多年裡，許多人從不同角度闡述了「安全尖釘」觀點。這個悖論的形式涵蓋從風險補償（risk compensation，指投資人因承擔風險而要求的、超過貨幣時間價值的那部分額外報酬），到「檸檬問題」（lemons problem，指在市場中，當買方與賣方存在資訊不對等時，市場中的商品品質會一直下降的經濟現象），再到保險中的「道德風險」（moral hazard，指當一個經濟參與者不用負擔產生風險的全部成本時，將會造成誘因，使他主動增加暴露在風險中的程度）等。人們可能根本不會知道這些悖論是誰首先提出來的。 然而至少從這裡的特定用語來看，似乎可信的「第一人」是1960年代初的美國經濟學家戈登．塔洛克（Gordon...
【國際瞭望】從安全帶說起：安全措施越多 風險越大| 台灣大紀元
⊙Michael Munger 「鑑於我們（在發生事故時）會筆直的撞上去。我們的鼻子會被撞扁在儀表板上。因此，我們會有一個安全氣囊，在我們撞車時，氣囊會膨脹起來保護我們。 「現在我們可以開得更快，更不必顧及他人了：我們會沒事的。你不覺得如果我們真的在乎駕駛安全，我們可以考慮用一排尖釘來代替氣囊嗎？」 當然我們明白，這些並不是嚴肅的建議，只是調侃而已。 在過去的六十多年裡，許多人從不同角度闡述了「安全尖釘」觀點。這個悖論的形式涵蓋從風險補償（risk compensation，指投資人因承擔風險而要求的、超過貨幣時間價值的那部分額外報酬），到「檸檬問題」（lemons problem，指在市場中，當買方與賣方存在資訊不對等時，市場中的商品品質會一直下降的經濟現象），再到保險中的「道德風險」（moral hazard，指當一個經濟參與者不用負擔產生風險的全部成本時，將會造成誘因，使他主動增加暴露在風險中的程度）等。人們可能根本不會知道這些悖論是誰首先提出來的。 然而至少從這裡的特定用語來看，似乎可信的「第一人」是1960年代初的美國經濟學家戈登．塔洛克（Gordon...
My Disagreement with John Tamny on SALT Deductions
In a recent essay, John Tamny, at RealClearMarkets got rather SALTy. Worth reading. John (whom I know and like, and have hosted to give a talk to my big undergrad “Intro to Capitalism” class at Duke) is taking issue with the claims I made about state and local tax deductions (SALT) here, at AIER’s The Daily Economy. Now, John is a fine, smart man. But we really do disagree about this.
The Penny Problem Has a 3rd Option: Buy Them Back-With Interest
The Image Party/Shutterstock
【國際瞭望】社媒內容泛濫與選擇困難症 | 大紀元 | 社媒 | 名家專欄 | 台灣大紀元
⊙Michael Munger 這個著名的實驗表明，在某些時候，有太多的選擇可能會讓人不知所措，實際上似乎會讓人的生活變得更糟。類似的研究一共有三項，但由於某些原因，「果醬實驗」（Jam Experiment）最廣為人知。 研究1：果醬選擇實驗 果醬實驗是在一家美食店進行的，店內設有試吃區，分別提供6種或24種果醬。大約60%的購物者駐足仔細觀察了多種選擇的展示台，40%的購物者走近了選擇較少的展示台。然而，令人驚訝的是，在選擇較少的展示台品嘗商品的購物者中，有30%的人購買了果醬，因為優惠券背面的代碼可以告訴研究人員，每位最終購買的消費者看到的是哪種展示；而在更多選擇展示台試吃的購物者中，只有3%的人最後購買了果醬。這個實驗結果表明，更多的選擇可以引起更多的興趣，然而實際的購買行動卻明顯較少。 研究2：作文題目選擇實驗 在這個實驗中，實驗者為大學生分別提供了6個或30個作文題目，讓他們選題作文。實驗的結果是，與拿到30個題目的學生相比，只拿到6個題目的學生更有可能完成作文，寫出的文章品質也更好。而過多的選擇可能會打擊學生的積極性。 研究3：巧克力選擇實驗...
The Scottish Enlightenment and Smith's Origins
david hume sympathy self-interest lord kames mandeville stadial theory social contract July 22, 2025 AdamSmithWorks is delighted to introduce a NEW series of podcasts with Mike Munger in anticipation of the 250th anniversary of The Wealth of Nations. The recording is also available via Munger's podcast, "The Answer is Transaction Costs" [TAITC]. Join us as we travel back to 18th-century Edinburgh to rediscover the roots of some of the most enduring ideas in liberty, markets, and civil society.
Adam Smith recognized the importance of the “make or buy” decision. It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy…What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom. One of the most basic dilemmas of business, household management, and international trade is the “make or buy” problem.
SALT in the Wound: How Tax Deductions Reward Fiscal Irresponsibility
On May 22, Donald Trump celebrated the House’s passage of HR1 , proclaiming THE ONE, BIG, BEAUTIFUL BILL has PASSED the House of Representatives! This is arguably the most significant piece of Legislation that will ever be signed in the History of our Country! Incredibly, the actual formal name of the bill, in the legislation itself, is “The One Big Beautiful Bill” Act.
How Interest Rates Set Asset Prices: One Weird Trick
What determines the price of a stock, bond, or other income-producing asset? Interest rates play a larger role than most people recognize, and the political fight over Interest rates is going to be one of the central themes of the next decade. In describing why that’s true, it’s useful to start with “this one weird trick”: consols. You have likely never heard of consols, but after reading this, I hope you never forget them.
Inside US Air Traffic Control: Conflicts of Interest and Absence of Oversight
Milton Friedman famously recognized that policy change only happens in crises: Only a crisis — actual or perceived — produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes the politically inevitable.
My $100 Tomato: Is Self-Sufficiency Overrated?
The main principle of trade policy is make or buy. “Economics” comes from the Greek word oikonomia, deriving from oikos, meaning “house” or “household,” and nomos, meaning “law” or “rule”. Thus, oikonomia originally meant “prudent household management,” including labor, finances, and property, to ensure stability and self-sufficiency for the family.
Three-Dimensional Trade Chess, Explained
Supporters of tariffs claim that mainstream economists don’t understand the game. This “game” has been described by Peter Navarro as three-dimensional chess. I want to take that claim at face value, break down its dimensions, and then evaluate whether Trump’s actions are likely to lead to his desired outcomes. And the answer is “no,” because the administration is playing three quite different, inconsistent games all at once. That isn’t a strategy at all; rather, it’s a scheme for certain failure.
The Social Media Jam: Why Too Many Choices Leave Us Feeling Stuck Original
There’s a famous experiment involving jams. Not problems, and not what old people call music, but the third thing: sweetened and thickened fruit spreads. Theexperiment famously showed that at some point having additional choices is overwhelming, and actually appears to make people worse off. There were actually three studies, though for some reason the “jam experiment” is the most famous.
The Social Media Jam: Why Too Many Choices Leave Us Feeling Stuck
Commentary There’s a famous experiment involving jams. Not problems, and not what old people call music, but the third thing: sweetened and thickened fruit spreads. The experiment famously showed that at some point having additional choices is overwhelming, and actually appears to make people worse off. There were actually three studies, though for some reason the “jam experiment” is the most famous.
Crop Insurance, NASCAR, and Seatbelts: Why the Safer We Get, the More Risks We Take
Commentary In his famously odd 1975 book, “Platform for Change,” the British business professor Stafford Beer made the following observation: “So we follow our noses. Our noses are going to be smashed up on the fascia board. Story continues below advertisement “So we will have an air cushion that inflates when we crash to protect us. “Now that we can drive much faster and with less regard for others: we shall be all right.
Duke’s administration should speak publicly about the University’s vital interests
The Trump Administration’s cost-cutting measures threaten Duke and other U.S. colleges and universities. Duke leaders are obviously grappling with the implications for research programs and other activities. We write to encourage them to speak out publicly in defense of Duke’s mission, explaining how the announced policies would harm programs that serve the national interest.
‘Fine, I’ll Bake Your Stupid Cake’ Free Association Fuels Free Enterprise
Flower Mound, Texas, is about thirty miles northwest of Dallas. It straddles two counties: Denton, in which Trump won 56 percent of the vote, and Tarrant, which was evenly split between Trump and Harris in 2024. Folks are mostly friendly, and the area has been designated a “top US suburb” by some of the organizations that do that sort of designating. It is also the location of Hive Bakery, owned and operated by local resident Haley Popp. And Ms. Popp has become famous.
Understanding Thomas Piketty’s Capital in the 21st Century
Table of Contents Introduction A Closer Look Piketty: The Details Part One: Inequality Conclusion Academic thinkers routinely identify flaws in capitalism, and propose reforms. That process is important, even healthy, as society thinks about what commercial society does and how it sustains itself. To date, however, the most breathless forecasts of capitalism’s demise have been too pessimistic, and in some cases damaging.
Want Progress? Lose the Spoon Jobs
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.
Ideology and the Theory of Political Choice
Our holiday sale is on! Save 50% on all orders with promo code HOLIDAY24 at checkout. By Melvin J. Hinich & Michael C.
5 Myths About Tariffs
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.
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