Has economics fallen to politics? Court economists like Paul Krugman–we might call them "regime economists"–represent a profession in big trouble. Jeff and Bob discuss.

Bob explains the mechanics of modern banking and how liabilities and assets on bank balance sheets differ from popular assumptions. He shows how interest rates and central bank policy shape lending and deposit behavior, and why private companies move money differently than commercial banks. Bob also critiques the perspectives of Richard Werner, Steve Keen, and George Selgin, showing where their explanations align or fall short.

• Bob's Infineo Article, "A Biz vs. a Bank vs. the Fed": Mises.org/HAP513a
• The Charts Used in this Episode: Mises.org/HAP513b

The Mises Institute is giving away 100,000 copies of Hayek for the 21st Century Get your free copy at Mises.org/HAPodFree

Bob takes on a proposal for New York City to run its own grocery stores, dismantling the historical myths, economic fallacies, and rhetorical tricks behind the idea. From Flint’s water crisis to “food deserts,” he explains why government control will create shortages, low-quality food, and wasted resources.

• The Jacobin Article, "Municipal Grocery Stores Are Sensible and Obvious": Mises.org/HAP512a

The Mises Institute is giving away 100,000 copies of Murray Rothbard’s, What Has Government Done to Our Money? Get your free copy at Mises.org/HAPodFree