Does Minimum Wage Reduce Investment... | Marginal Babble Ep.41 with Professor Matthew Gustafson

Max Dorey speaks with economist Sanjeev Goyal about how empires form, expand, and fall. Drawing on mathematical modelling, Goyal explains how resources, geography, institutions, and military technology shape rulers’ decisions (and how one victory can trigger a cycle of expansion by opening access to neighbouring territories). The conversation explores examples from Rome, ancient China, and Spain, including how ambition and technology can overcome natural barriers. Goyal also discusses why some empires are replaced by new powers while others fragment and considers what the model can, and cannot, explain about modern conflicts. Professor Sanjeev Goyal:https://www.econ.cam.ac.uk/people/academic/sanjeev-goyal The Strategy of Conquest:https://www.econ.cam.ac.uk/publications/journals/strategy-conquest Networks: An Economics Approach:https://www.econ.cam.ac.uk/node/69858 Timestamps:00:00 How do Empires Form?08:16 Sanjeev’s Research17:09 What Factors Allow Empire Expansion?26:09 Empires that Fit the Model31:43 What Stops Empires Growing?37:26 Can We Predict How Empires Fall?43:20 Can the Model Predict Future Empires?51:41 What Future Research We Need Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/ 

Europe’s climate goals may require far more investment than current estimates suggest. Economist Joko Kapeller joins Max to unpack the EU’s climate investment gap, the limits of relying on carbon pricing, and why private finance may not deliver the long-term investment the transition demands.They explore whether wealth taxes could help fund climate action, how different tax designs might work, and why wealth concentration matters beyond questions of fairness: it also shapes investment, political power, and social stability. From heat pumps and grid upgrades to the role of public policy, this conversation connects climate goals with the choices societies make about wealth and collective responsibility.Professor Jakob Kapeller:https://www.uni-due.de/soziooekonomie/kapeller.php“Can a European wealth tax close the green investment gap?”:https://www.sciencedirect.com/science/article/pii/S092180092300112XTimestamps:00:00 Intro01:35 Will the EU Meet Its Climate Change Targets?06:24 What Are the EU’s Environmental Goals?13:18 Localised Impacts of Limiting Green Investment19:56 What are Wealth Taxes?29:22 Why Wealth Taxes (Over Other Taxes)?37:55 Wealth Taxes VS Debt Financing40:43 Wealth Tax Designs to Implement48:28 What’s Misunderstood About Wealth Taxes?52:32 What Future Research is Needed?Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/

The Tenant Fees Act 2019 did something rare in housing policy, it actually worked… Tenants saved hundreds of pounds, letting agents absorbed the shock and the market did not collapse. If you care about renting, regulation, or why some policies deliver exactly what they promise, this conversation is for you. Max and Nikhil break down the economics behind tenant fees, why the old system was a textbook case of opaque pricing, and how banning those charges changed behaviour across the rental market. They also get into drip pricing, market power, house-building targets, NIMBY politics, the Green Belt, devolution, and the renters' rights bill. Professor Nikhil Datta:https://nikhil-datta.com/ “Successful caps on English letting agents’ fees disprove the idea that it’s unwise to meddle with free markets”:https://theconversation.com/successful-caps-on-english-letting-agents-fees-disprove-the-idea-that-its-unwise-to-meddle-with-free-markets-240708 “The Equilibrium Effects of Regulating Junk Fees: Evidence from the Rental Brokerage Market”:https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5200278 Timestamps:00:00 Intro01:05 Tenant Fees Act 201905:18 Can Regulation Make the Market More Efficient?10:27 The Effects of the Tenant Fees Act 201912:16 Why Economic Theory Failed…15:16 More Effects of the Tenant Fees Act 201920:43 Why Was THIS Policy Successful? (and not others…)24:27 How to Design Better Housing Policy33:12 Is Building New Towns the Answer?41:04 Should New Towns Offer Financial Incentives?45:28 The North-South Divide in Housing48:45 Will De-centralisation Help?54:46 Effects of the Renters Rights Bill01:04:31 What Future Research Should be Conducted? Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/ #housingregulation #rentalmarkets #economics

In this episode, we dive into the world of labour economics, specifically, into how minimum wage policy affects business investment and productivity. Professor Matthew Gustafson and I unpack the real-world effects of minimum wage policy, from employment and capital expenditure to productivity, automation, and long-term economic growth. Professor Matthew Gustafson:https://directory.smeal.psu.edu/mtg15 ‘Higher Minimum Wages Reduce Capital Expenditures’:https://pubsonline.informs.org/doi/10.1287/mnsc.2022.4430 Timestamps:00:00 Intro01:26 Why Study Minimum Wage Economics?03:50 What is Minimum Wage Policy?05:30 Does Minimum Wage Policy Work?08:21 Does Minimum Wage Affect Investment? (Matthew’s Research)17:58 Context Matters21:38 The Data Behind Matthew’s Research24:38 How Important is Private Investment to the Economy?27:59 Can Minimum Wage Policy Be Improved?33:55 Arguments For/Against a Minimum Wage37:42 Future Research We Need41:44 Common Misunderstandings About Minimum Wage44:05 How Will Minimum Wage Rhetoric Change… Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/

The global sex work industry generates an estimated $69 billion annually (worldmetrics.org, 2026) and provides income for millions of sex workers globally. In the UK alone, there are approximately 72,800 sex workers according to the English Collective of Prostitutes. In this episode of the Marginal Babble podcast, we explore the economics of sex work, from global industry scale to how researchers estimate hidden populations. We discuss why data relating to sex work is so hard to measure, how legal status affects market size, and how internet platforms have changed safety, pricing, and regulation. Professor Stefan Adriaenssens:https://www.kuleuven.be/wieiswie/en/person/00002299 SEX WORK BY NUMBERS: Bridging Economics and Social Sciences to Understand the Hidden World of Commercial Sex:Free: https://www.emerald.com/books/monograph/20949/Sex-Work-by-NumbersBridging-Economics-and-SocialAmazon: https://www.amazon.com/Sex-Work-Numbers-Understand-Commercial-ebook/dp/B0FV2QKM3D  Timestamps00:00 Intro00:40 Do You Make Sex Boring?01:26 The Scale of the Sex Industry06:08 How Do Economists Estimate Sex Work?09:09 The Objectives of the Book (plus feelings…)        11:54 Does Sex Work Match Economic Theory?20:31 Remuneration for Loss of Reputation24:14 How the Internet Has Affected Sex Work31:18 Affects of Legalisation/Criminalisation of Sex Work36:34 Surprises in Writing the Book38:29 Policy Recommendations41:52 Misconceptions About Sex Industry43:00 Where Do We Need More Research?44:27 Final Thoughts Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/

Americans are paying more for healthcare than almost any other nation… Yet the system remains flawed, shaped by a century of strategic battles, PR campaigns, and powerful interest groups. In this episode of Marginal Babble, we examine the roots of today’s high costs, uneven access, and entrenched privatization going back nearly a hundred years. Professor Alsan unpacks how the private healthcare system in America was built through a politically orchestrated campaign by the AMA and innovative PR firms like Whitaker & Baxter. Aggressive tactics turned a voluntary, doctor-led prepayment model into the foundation of today’s complex, profit-driven industry. This early battle set the stage for modern issues: lack of price negotiation power, skyrocketing costs, and persistent inequalities. “Why Doesn’t the United States Have National Health Insurance: The Role of the American Medical Association”:https://academic.oup.com/qje/article/141/3/2147/8669893?login=false Professor Marcella Alsan:https://alsan.scholars.harvard.edu/ Timestamps:00:00 Intro00:41 American Healthcare Before WWII06:02 Influence of the AMA (American Medical Association)10:43 Whitaker & Baxter (the First Political Consultants)16:12 Introduction of Health Insurance22:33 How Private Healthcare Changed Over Time27:30 Was Private Healthcare Possible Without Whitaker & Baxter29:41 Legacy of Whitaker & Baxter31:14 Challenges of Private Health Insurance Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/

This episode explores how six medieval kings helped shape the English state. From John and the Magna Carta to Edward III’s reforms and Richard II’s downfall. Professor Caroline Burt & Professor Richard Partington explain how war, taxation, common law, Parliament, and the struggle for lawful rule turned kingship from a personal power into something more accountable and institutional. We unpack what made a “good” ruler during this period, why charisma and temperament mattered, and how Christianity and European politics influenced governance. Arise, England: Six Kings and the Making of the English State:University of Cambridge Publications: https://www.hist.cam.ac.uk/publication/arise-england-six-kings-and-making-english-stateAmazon: https://www.amazon.co.uk/Arise-England-Kings-Making-English/dp/0571311989 Professor Caroline Burt:https://www.hist.cam.ac.uk/people/dr-caroline-burt Professor Richard Partington:https://www.joh.cam.ac.uk/research/academics/fellows/richard-partington Timestamps:00:00 Intro00:45 Early ‘English’ Governance05:57 Synopsis of English Kings (1199 to 1399)16:43 What Constitutes a Good King?22:45 Is John Over Villainised?28:07 The Importance of Charisma31:28 Did John’s Cruelty Lead to Magna Carta?36:27 The Surprising Success of Henry 3rd42:24 How Christianity Influenced the English State50:00 A Great & Terrible King: Edward 1st55:40 Do Bad Rulers Follow Good Rulers?58:51 The Reign of Edward 3rd01:06:19 The Tragedy of Richard 2nd01:12:45 Were the English Kings…English?01:19:20 What 7th King Would they Add?01:23:19 What Lessons Can we Learn? Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/

Uncover the surprising truths behind cousin marriage and its global prevalence.Shocking data shows consanguinity occurs in approximately 10% of marriages worldwide, with some countries like Pakistan occurring in at least half of all marriages.But what are the real health and societal impacts?In this eye-opening episode, economist Munir shares groundbreaking research using 40 million genealogical histories from the US, revealing that children of cousin marriages face a five-year reduction in lifespan, with effects extending throughout life, not just childhood. You'll discover how cultural, economic, and societal factors sustain these practices, even in wealthy nations with strong education systems, challenging common assumptions. Professor Munir Squires:https://economics.ubc.ca/profile/munir-squires/ “Health Effects of Cousin Marriage: Evidence from US Genealogical Records”:https://www.aeaweb.org/articles?id=10.1257/aeri.20230544 Timestamps:00:00 Intro00:41 How Common is Cousin Marriage?05:24 Health Effects of Cousin Marriage (Academic Literature)10:52 Munir’s Research24:46 Results of Munir’s Research30:19 Navigating Cultural & Religious Sensitivity32:31 Broader Social & Economic Implications43:43 Why Industrialisation Changed Marriage Patterns54:26 Why cousin marriage persisted historically57:22 Future Research? (Economic & Social Impacts) Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/

Small economies often defy expectations, thriving despite limited resources and geographic challenges. This episode explores their surprising resilience and unique strategies, revealing lessons that could transform larger nations' approaches to growth. Discover how globalization, digital trade, and strategic specialization propel these nations to success, and learn about their governance agility and stability. Despite facing global shocks, many small economies have shown remarkable resilience. Join us for insights from development economist Robert Read, as we uncover the real drivers of economic success and the future of small nations. Professor Robert Read:https://www.lancaster.ac.uk/lums/people/robert-read “Growth volatility and resilience in small economies: The impacts of the 2008 financial crisis and the Covid-19 pandemic”:https://www.taylorfrancis.com/chapters/edit/10.4324/9781032703893-5/growth-volatility-resilience-small-economies-harvey-armstrong-robert-read Timestamps:00:00: Intro00:39: Why Study Small Economies?08:06: What is a Small Economy?14:29: Robert’s Research26:18: Why Have Small Economies Been Successful?35:50: Are Natural Resources a Curse?43:57: Why Have Large Economies Done Badly?49:50: Economic Policy & Money in Small Economies59:42: Strong Small Economies During Financial Crisis01:05:34: Lessons for Small Economies01:14:52: Climate Change Impacts on Small Economies01:17:15: Future Research on Small Economies & Takeaways Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/

Most countries focus on the political virtues of representation, but what if quotas actually change the quality of governance? I sit down with Professor Patrick Francois to uncover how strategic use of political quotas, especially in India, can break the grip of identity-driven politics and elevate governance standards. As ever, please like and subscribe if you enjoy! 😊 Professor Patrick Francois:https://economics.ubc.ca/profile/patrick-francois/ ‘Reservations and the politics of fear’:https://www.sciencedirect.com/science/article/abs/pii/S0047272723001457 Timestamps:00:00: Intro00:42: What are Political Quotas?02:42: Political Quotas in India08:25: Are Political Quotas D.E.I?13:50: How Common are Political Quotas?16:57: Political Quotas & Socialism23:37: Patrick’s Research & the ‘Politics of Fear’32:48: How Political Quotas Improve Governance37:08: Are Political Quotas Needed in Strong Liberal Democracies?44:03: How Do You Measure Governance Quality?51:34: Are Political Quotas Pragmatic to Implement?58:17: Future Research to Build Upon Patrick’s Findings Socials:TikTok: https://www.tiktok.com/@marginalbabbleInstagram: https://www.instagram.com/marginalbabble/X: https://x.com/marginalbabbleBluesky: https://bsky.app/profile/marginalbabble.bsky.social/Website: https://marginalbabble.co.uk/