Human Action Podcast: Debunking Economic Myths

Introduction

• Host: Dr. Bob Murphy
• Focus: Debunking economic, political, and cultural myths

Announcements

• Event: Mises Institute Event in Phoenix, Arizona
  • Date: April 26th
  • Speakers: Dr. Robert Malone, Tom Woods, and Tom DiLorenzo
  • Topics: Bureaucracy, public health, and federal bureaucracy
  • Tickets: $100 for members, $120 for non-members
  • Raffle: Free ticket entry at mises.org/phoenixraffle25 by April 1st

Interview with Patrick Newman

• Background: Prominent figure at Austrian Economics Research Conference
• Discussion: Government spending's inclusion in GDP statistics
  • Historical Context: Debate initiated by Murray Rothbard and now publicized by figures like Elon Musk

Key Topics Discussed

Government Spending in GDP

• Traditional View: Included as a measure of economic output
• Criticism: Lacks basis in true economic contribution
  • Simon Kuznets' Concerns: No profit and loss, taxes as forced payments
• Alternative Views: Libertarian Critique
  • Advocacy: Exclude government spending from GDP for more accurate economic health

Historical Debate

• World War II: Shift in GDP methodology to accommodate war spending
• Kuznets vs. Department of Commerce
  • Outcome: Government spending included to justify war mobilization
  • Kuznets' Argument: Doubted if government spending reflected true economic value

Modern Implications

• Current Relevance: Discussion revived by figures like Elon Musk
• Austrian Perspective: Rothbard’s concept of "Private Product Remaining"
  • Methodology: Subtract government’s economic impact from GDP

Future Work and Research

• Book Project: Anti-Modern Monetary Theory (MMT) Essays
  • Focus: Critique of government spending and its economic impacts
• Further Research: Developing comprehensive metrics like "Private Product Remaining"

Closing Thoughts

• Podcast Wrap-Up: Importance of revisiting economic statistics
• Next Steps: Publication of new book and further exploration of Austrian economics

Additional Resources

• Man Economy and State (Rothbard): Discussion on GDP and government spending
• Robert Higgs’ Work: Analysis of World War II economic myths
• Mises Institute: For further reading and upcoming events