Why Economists Defend Free Speech

AI can write essays, generate code, and assist with research, but does that mean it will replace human workers? Economist Benjamin Shiller, author of AI Economics, joins show host Gene to discuss how AI may instead make human creativity and ideas even more valuable. In this conversation with Gene Tunny, they explore AI’s potential impact on jobs, productivity growth, education, and inequality, as well as the risks the technology could pose. Gene would love to hear your thoughts on this episode. You can email him via [email protected].  About this episode’s guest: Benjamin Shiller Benjamin Shiller is an Associate Professor of Economics at Brandeis University. His research on personalized pricing, ad-blocking, and technological change has been published in leading journals and covered in The Atlantic, The Economist, Forbes, Fortune, The Guardian, and The Washington Post. Takeaways AI may increase the value of human ideas. Benjamin Shiller argues that while AI is excellent at turning ideas into polished text or code, it still struggles to generate genuinely original ideas. That means creativity, judgment, and insight may become more valuable in the AI age. Workers who know how to use AI will have an advantage. Rather than fully replacing professionals, AI may function as a “co-pilot.” Graduates who can effectively use AI tools — prompting them, checking outputs, and integrating them into workflows — could be in strong demand. AI could dramatically improve education through personalised tutoring. Shiller highlights Bloom’s two-sigma problem, which shows that personalised tutoring can dramatically improve student outcomes. AI tutors could provide personalised learning at scale, potentially transforming education systems. Productivity gains from AI may take time to appear. Like earlier technologies such as electricity or computers, AI may require years before its benefits show up in productivity statistics as businesses learn how to integrate it effectively. 5. AI brings serious risks alongside its benefits. While AI could boost productivity and living standards, Shiller warns about potential downsides — including labour market disruption, social isolation from AI companionship, and the possibility of automated AI-driven warfare. Timestamps 00:00 – Introduction 03:08 – Using AI to write a book 06:11 – The explosion of AI-generated content 15:11 – AI, jobs, and the labour market 21:23 – Can AI automate research? 25:57 – AI blind spots and the “kangaroo problem” 31:29 – Bloom’s two-sigma problem and AI tutors 37:42 – Will AI boost productivity? 42:30 – Inequality, regulation, and AI risks 49:19 – AI and the dangers of automated warfare 53:34 – Key takeaways and closing Links relevant to the conversation Benjamin Shiller’s website: https://benjaminshiller.com/ AI Economics: How Technology Transforms Jobs, Markets, Life, & Our Future: https://www.amazon.com/dp/B0G45MKBZT Lumo Coffee promotion 10% of Lumo Coffee’s Seriously Healthy Organic Coffee. Website: https://www.lumocoffee.com/10EXPLORED   Promo code: 10EXPLORED 

Australia’s productivity growth has slowed to its weakest rate in decades — and that matters because productivity ultimately drives rising living standards. In this episode, Gene Tunny explores why productivity is so central to higher wages, economic growth, and sustainable prosperity. The episode features insights from Danielle Wood, Chair of the Productivity Commission, on why policymakers need a “growth mindset,” followed by highlights from a lively roundtable discussion on the policies shaping productivity in Australia — including energy costs, taxation, regulation, and government spending. Gene would love to hear your thoughts on this episode. You can email him via [email protected].  What You’ll Learn Why productivity growth drives living standards over the long run. How productivity sets the economy’s “speed limit” for non-inflationary growth. Why wages growing faster than productivity can lead to inflation and unemployment. How policy settings — including taxes, regulation, and energy costs — influence productivity. Why innovation, investment, and entrepreneurship are essential to productivity growth. Timestamps Australia's Productivity Growth and Its Impact on Living Standards (0:00) Introduction of Danielle Wood and Her Views on Productivity (3:02) Discussion on Productivity and Its Practical Implications (9:15) Energy Costs and Their Impact on Productivity (17:27) Tax Reforms and Their Potential to Boost Productivity (24:34) Conclusion and Key Takeaways (35:24) Links relevant to the conversation Markets & Motives Ep. 1 – Dr Danielle Wood with Isabella Sciacca: https://youtu.be/L0BP_pGbHuQ?si=aA914CAhw4iZ8_to Beyond the Roundtable: Real Solutions for Australia’s Productivity Plunge - ep295: https://economics-explained.simplecast.com/episodes/beyond-the-roundtable-real-solutions-for-australias-productivity-plunge-ep295 Damian Coory’s The Other Side: https://www.youtube.com/@OtherSideAus The Whitlam Era book, published by Connor Court: https://www.amazon.com.au/WHITLAM-ERA-REAPPRAISAL-GOVERNMENT-POLITICS/dp/1925826945 Lumo Coffee promotion 10% of Lumo Coffee’s Seriously Healthy Organic Coffee. Website: https://www.lumocoffee.com/10EXPLORED Promo code: 10EXPLORED 

Argentina was on the brink: inflation near 300% a year, real wages collapsing, poverty rising, and a large fiscal deficit. Voters elected libertarian economist Javier Milei, who promised deep spending cuts and radical reform. Many predicted a disaster. Two years on, inflation has fallen sharply, and real wages are projected to rise. In this episode, show host Gene Tunny chats with John Humphreys (Australian Taxpayers’ Alliance Chief Economist) and Michael Arbon (adviser to Senator Ralph Babet) on how disinflation works, why fiscal credibility matters, and what Argentina’s experience could mean for Australia — particularly on energy policy and political risk. Gene also briefly touches on developments in the Iran war and their potential global economic implications. Gene would love to hear your thoughts on this episode. You can email him via [email protected].  What You’ll Learn How credible fiscal and monetary reform can rapidly reduce inflation. Why cutting government spending doesn’t automatically cause a recession. What economists mean by a “political risk premium.” How uncertainty about future policy affects investment decisions. Why major reform often involves short-term pain — and political risk. Timestamps Global Economic Uncertainty and Iran Conflict (0:00) Economic Implications of Higher Energy Prices (2:06) Argentina's Economic Crisis and Reforms (3:56) John Humphreys on Argentina's Economic Reforms (6:33) Lessons from Argentina's Reforms (7:40) Political Risk and Investment in Argentina (22:11) Potential Application of Argentina's Reforms in Australia (28:10) Conclusion and Future Prospects (29:31) Links relevant to the conversation John’s Substack post, “What can we learn from Milei's Argentina?”: https://austaxpayers.substack.com/p/what-can-we-learn-from-mileis-argentina Lumo Coffee promotion 10% of Lumo Coffee’s Seriously Healthy Organic Coffee Website: https://www.lumocoffee.com/10EXPLORED Promo code: 10EXPLORED

What would tax reform look like if the goal were higher wages and stronger long-term growth — rather than more revenue? In this episode, Gene Tunny and John Humphreys examine capital gains tax, bracket creep, and income tax reform through the lens of productivity and living standards. While the discussion focuses on Australia, the principles apply everywhere. How should governments tax capital versus labour? Should tax brackets be indexed to inflation? And how can tax systems encourage saving, investment, and innovation? This episode explores the economic ideas behind a genuinely pro-growth tax reform agenda. Gene would love to hear your thoughts on this episode. You can email him via [email protected].  What You’ll Learn Why productivity growth—not redistribution—is central to rising real wages and living standards. How capital gains tax works, and why inflation and the time value of money complicate its design. Why economists worry that taxing capital income can discourage investment. How bracket creep quietly increases tax burdens even when real wages aren’t rising. What a pro-growth tax reform agenda looks like. Timestamps Introduction to the Podcast and Episode Theme (0:00) Discussion on Productivity and Tax Reform (2:17) Capital Gains Tax Discussion (7:22) Proposed Tax Reforms and Economic Benefits (19:56) Indexing Tax Brackets to Eliminate Bracket Creep (45:41) Conclusion and Final Thoughts (49:03) Links relevant to the conversation The Australian Taxpayers’ Alliance livestreams that this episode borrows from… Bold tax cut proposal for a new opposition || #32: https://www.youtube.com/live/HYsNOmJ1tKc?si=ZCqtX2f5FWmxDo0C Taxes are going up || #31  https://www.youtube.com/live/UkQWVCo1Qko?si=Cyp-SBtjdYI3nBRp Related ATA newsletter articles: https://austaxpayers.substack.com/p/bold-tax-proposal-for-a-new-opposition https://austaxpayers.substack.com/p/tax-hikes-on-alcohol-and-petrol Lumo Coffee promotion 10% of Lumo Coffee’s Seriously Healthy Organic Coffee. Website: https://www.lumocoffee.com/10EXPLORED Promo code: 10EXPLORED 

Adam Smith is often invoked as the intellectual godfather of modern capitalism — but he was also a moral philosopher. Judo Bank founder and former CEO Joseph Healy joins Gene Tunny to argue that Australia’s market economy has drifted from Smith’s vision. From weak competition and high household debt to corporate scandals and lobbying influence, this episode explores whether capitalism has been “hijacked by capitalists” — and why complacency may be Australia’s greatest economic risk.Gene would love to hear your thoughts on this episode. You can email him via [email protected]. About this episode’s guest: Joseph HealyJoseph Healy is an experienced Australian banking executive and the author of What Would Adam Smith Make of Modern Australia? He has had a long career in financial services in Australia and internationally, including as a co-founder and former CEO of Judo Bank, a specialist SME bank. Joseph has a longstanding interest in Adam Smith’s work as both an economist and moral philosopher. In his book, he draws on The Wealth of Nations and The Theory of Moral Sentiments to assess the state of modern Australian capitalism — examining competition, corporate governance, banking, regulation, education, and the relationship between economic performance and societal wellbeing.What You’ll LearnWhy Adam Smith must be read as both an economist and a moral philosopher.How shareholder value thinking reshaped corporate incentives from the 1980s onward.Why weak competition in banking, airlines, retail, and energy may be generating economic rents in Australia.How the shift of bank lending toward housing may have created systemic risk and underinvestment in SMEs in Australia.Why Joseph gives Australia a C+ overall — and why that grade could deteriorate.Timestamps02:25 – Why Joseph wrote to The EconomistThe 250th anniversary of The Wealth of Nations and reclaiming Smith’s legacy.09:18 – Why Moral Sentiments still matters“Loved and lovely” — Smith’s moral framework explained.16:30 – The legal test vs the moral test“It’s not ‘Will we get caught?’ — it’s ‘Is this the right thing to do?’”18:29 – Shareholder value and the erosion of restraintHow incentives shifted corporate behaviour from the 1980s onward.27:39 – Banking concentration and the shift to mortgagesBig Four dominance and declining SME lending.31:05 – Systemic risk and household leverageIs Australia too exposed to housing debt?36:10 – Lobbying and barriers to competitionWhy reform is politically difficult.40:45 – Five areas of reformGovernment size, competition, tax reform, governance, trade unions & education.48:34 – The Qantas exampleLobbying, protection, and consumer impact.51:39 – What would Adam Smith make of Australia?The “report card”: A for trade, D for competition, C+ overall.55:11 – Reclaiming capitalism“Capture it back again so it’s working for everybody.”Links relevant to the conversationJoseph’s book, What Would Adam Smith Make of Modern Australia?https://majorstreet.com.au/products/what-would-adam-smith-make-of-modern-australia-br-i-small-by-joseph-healy-i-smallLumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED 

What do we actually count as economic activity — and what do we leave out? In this episode, Gene speaks with economist Misty Heggeness about Swiftynomics, her new book on women’s work, unpaid care, and the limits of standard economic statistics. Misty uses Taylor Swift as a narrative anchor for a broader argument about care, work, and economic growth. She argues that large amounts of productive activity — especially care and household work — sit outside GDP. The conversation explores unpaid labour, the gender pay gap, universal childcare, and whether rethinking what we measure could lead to better economic policy.Gene would love to hear your thoughts on this episode. You can email him via [email protected]. About this episode’s guest: Misty HeggenessMisty L. Heggeness is an associate professor in the School of Public Affairs and Administration and an associate research scientist in the Institute for Policy and Social Research at the University of Kansas. She has over a decade of experience leading high-profile research that informed decision-making within the U.S. federal government. Her research focuses on poverty & inequality, gender economics, and the high-skilled workforce and has appeared in outlets like The New York Times, Wall Street Journal, NPR, The Economist, and Science.https://spaa.ku.edu/people/misty-heggenessTakeawaysGDP measures market activity — but ignores much unpaid care and household work.Women, on average, do more total economic activity per day once unpaid work is included.How we measure the economy influences which policies governments prioritise.TimestampsIntroduction to the Podcast and Guest (0:00)Discussion on the Book's Theme (2:31)Taylor Swift's Relevance and Personal Experiences (4:34)Defining Swiftynomics and Its Broader Implications (12:08)Policy Proposals and Universal Child Care (14:03)Gender Pay Gap and Workplace Flexibility (18:43)Affirmative Action and Gender Quotas (28:54)Conclusion and Key Takeaways (36:53)Links relevant to the conversationSwiftynomics: How Women Mastermind and Redefine Our Economy:https://www.amazon.com/Swiftynomics-Women-Mastermind-Redefine-Economy/dp/0520403118The Care Board:https://thecareboard.org/ Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED 

What does free speech have to do with economics? A lot more than you might think. In this episode, Gene Tunny is joined by John Humphreys to explore free speech as a core institutional pillar of prosperous societies. From Mao’s Great Leap Forward to modern Australia, they show how restricting speech distorts incentives, breaks feedback loops, and leads to catastrophic policy failure. Even well-intentioned speech laws, they argue, can have dangerous unintended consequences.Gene would love to hear your thoughts on this episode. You can email him via [email protected]. Key takeaways (What you’ll learn)Why economists see free speech as a feedback mechanism, similar to prices in marketsHow restricting speech shifts incentives from truth-seeking to conformityWhy censorship often hides problems until they become crisesHow historical disasters, like China’s Great Leap Forward, illustrate the cost of silenced feedbackWhy tolerating error is essential for democracy, learning, and social progressTimestampsFree Speech and Its Importance (0:00)The Role of Free Speech in Democracy (4:16)Historical Context and Legal Perspectives (9:00)Tolerance and the Enlightenment (11:03)The Impact of Free Speech Restrictions (16:02)The Politics of Free Speech Legislation (20:21)The Evolution of Anti-Speech Legislation (22:15)The Role of Multiculturalism and Social Cohesion (22:31)The Future of Free Speech Legislation (32:45)Links relevant to the conversationGene and John’s recent Australian Taxpayers’ Alliance livestreams on free speech:https://www.youtube.com/live/ZdQ2y96QakI?si=cCKdaqylXJ03FgFahttps://www.youtube.com/live/fvd3usSMT3o?si=oIr7UJrO9C53Fi4cChris Berg’s Institutional Theory of Free Speech:https://chrisberg.org/2017/02/an-institutional-theory-of-free-speech/The Coddling of the American Mind: How Good Intentions and Bad Ideas Are Setting Up a Generation for Failure:https://www.amazon.com.au/Coddling-American-Mind-Intentions-Generation/dp/0735224897Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED

Auckland’s upzoning reforms have become a global case study in housing policy. Gene Tunny and John August dig into the data behind claims that loosening zoning rules boosted housing supply and eased rent pressures. They explore the statistical methods used, the critiques raised by sceptics, and the limits of zoning reform on its own. The episode also examines infrastructure constraints and whether complementary policies are essential for real housing affordability gains.Gene would love to hear your thoughts on this episode. You can email him via [email protected]. TimestampsAuckland Upzoning and Housing Affordability (0:00)Introduction of John August and Initial Discussion (3:41)Statistical Analysis and Critiques (3:59)Cameron Murray and Tim Helm’s analysis (7:33)Broader Economic Context and Infrastructure (25:23)Conclusion and Future Directions (46:23)TakeawaysRigorous statistical studies find a strong link between upzoning and increased housing consents in Auckland.Critics argue that zoning reform alone cannot overcome development cycles, infrastructure bottlenecks, or land banking.Development approvals are a useful, though imperfect, proxy for actual housing supply growth.Infrastructure provision is crucial—densification without follow-through can reduce amenity and limit affordability gains.Zoning reform works best as part of a broader policy package, potentially including land value taxation to fund essential infrastructure.Links relevant to the conversationThe impact of upzoning on housing construction in Auckland by Ryan Greenaway-McGrevy and Peter C.B. Phillips:https://cowles.yale.edu/sites/default/files/2024-02/p1863.pdfZoning and housing supply: empirics in search of a theory by Tim Helm and Cameron Murray:https://ace2025.org.au/wp-content/uploads/2025/07/01-Tim-ACE-2025-Tim-Helm-TAKE-II.pdfLumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED 

Show host Gene Tunny speaks with cybersecurity expert Bruce Schneier of the Harvard Kennedy School about his new book, Rewiring Democracy, which explores the profound and often underappreciated ways AI is already reshaping democratic institutions. From AI-powered political campaigns and legislative drafting to citizen engagement and court systems, Schneier lays out both the potential and the peril of this technological transformation.Gene would love to hear your thoughts on this episode. You can email him via [email protected]. TimestampsIntroduction (0:00)Bruce Schneier's New Book "Rewiring Democracy" (1:44)Impact of AI on Democracy and Humanity (4:25)AI in Government Administration and Courts (9:12)Examples of AI in Citizen Assemblies and Public AI (12:02)Challenges and Opportunities with AI in Democracy (18:10)Regulation and Accountability of AI (22:04)TakeawaysAI is already transforming democracy. It plays roles in political campaigning, lawmaking, courtrooms, and public service—even if we don’t always notice it.The real danger is corporate control. Schneier stresses that AI’s trajectory is largely shaped by a small group of powerful tech companies and calls for “public AI” as a counterbalance.AI is a tool, not a force. Whether AI supports democracy or authoritarianism depends entirely on how humans use it.Citizens can be empowered by AI. Projects from CalMatters and make.org show how AI can help amplify civic voices and improve transparency.Urgent regulation is needed. Schneier argues that AI, like cars or planes, must be regulated for safety, transparency, and accountability—especially to prevent manipulation and abuse.Links relevant to the conversationBruce’s book - Rewiring Democracy: How AI Will Transform Our Politics, Government, and Citizenshiphttps://mitpress.mit.edu/9780262049948/rewiring-democracy/Lumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED 

Gene responds to thoughtful listener feedback on record-low fertility rates and explores why childcare, IVF, and returning to work for fortysomething mothers can be so economically challenging. He then travels back to ancient Rome to unpack a curious moment after Augustus’s victory over Antony and Cleopatra, when treasure flooded into Rome, interest rates plummeted, and land values soared—and explains how this fits neatly into modern monetary economics. Finally, Gene revisits remarkable exchanges between Milton Friedman, Alan Greenspan, and Ronald Reagan that shed fresh light on the perennial debate over the gold standard.Gene would love to hear your thoughts on this episode. You can email him via [email protected]. TimestampsIntroduction (0:00)Childcare Costs and Staffing Ratios (5:15)IVF Costs and Penalties for Women Returning to Work (9:52)Rise of Singleton Households and Economics of Smaller Populations (17:32)Economic Impact of Ancient Rome’s Influx of Gold and Treasure (22:56)Milton Friedman and the Gold Standard (42:01)TakeawaysChildcare costs are structurally high due to labour intensity, mandated staff–child ratios, and qualification requirements.The “motherhood penalty” is real and appears driven partly by human capital loss during career breaks and partly by occupational choices for flexibility.Augustus’s influx of treasure into Rome increased real money balances, pushing interest rates from ~12% to ~4% and boosting land prices—an excellent real-world example of short-run monetary non-neutrality.Milton Friedman and Alan Greenspan both advised Ronald Reagan NOT to pursue a gold standard, arguing fiscal discipline and controlled monetary growth matter more than metal backing.Links relevant to the conversationReferenced Previous EpisodesIs Gold Flashing a Warning Sign? https://economics-explained.simplecast.com/episodes/is-gold-flashing-a-warning-sign-ep303The Great Baby Busthttps://economics-explained.simplecast.com/episodes/the-great-baby-bust-why-it-happened-and-what-it-means-for-us-ep300The Gender Pay Debate: Understanding the Factors Behind the Gap w/ Dr Leonora Risse - EP230https://economics-explained.simplecast.com/episodes/the-gender-pay-debate-understanding-the-factors-behind-the-gap-w-dr-leonora-risse-ep230The Gender Pay Gap w/ Dr Leonora Rissehttps://economics-explained.simplecast.com/episodes/the-gender-pay-gap-with-dr-leonora-risseChina’s falling population & global population update - EP174https://economics-explained.simplecast.com/episodes/chinas-falling-population-global-population-update-ep174U.S. Census data on rising singleton householdshttps://www.census.gov/library/stories/2023/06/more-than-a-quarter-all-households-have-one-person.html  “The Motherhood Wage Penalty: A Meta-Analysis” – Social Science Research paperhttps://www.sciencedirect.com/science/article/pii/S0049089X20300144Florida childcare staffing ratioshttps://www.elcslc.org/parents/vpk-locator/licensing-files-what-to-look-for/state-of-florida-mandated-adult-to-child-ratios/Australian childcare qualification requirementshttps://earlychildhood.qld.gov.au/careers/qualifications-and-pathways/approved-qualificationsBooks MentionedTom Holland’s translation of Suetonius – Lives of the Caesarshttps://www.amazon.com.au/Lives-Caesars-Suetonius/dp/0241186897Sebastian Mallaby – The Man Who Knew: The Life and Times of Alan Greenspanhttps://www.amazon.com.au/Man-Who-Knew-Times-Greenspan/dp/0143111094Mark Blaug – Economic Theory in Retrospecthttps://www.amazon.com.au/Economic-Theory-Retrospect-Universiteit-Amsterdam/dp/0521577012Cassius Dio – Roman Historyhttps://penelope.uchicago.edu/Thayer/e/roman/texts/cassius_dio/51*.htmlLumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED