The Answer Is Transaction Costs

Author: Michael Munger

"The real price of everything is the toil and trouble of acquiring it."  -Adam Smith (WoN, Bk I, Chapter 5)In which the Knower of Important Things shows how transaction costs explain literally everything. Plus TWEJ,  and answers to letters.If YOU have questions, submit them to our email at taitc.email@gmail.com There are two kinds of episodes here: 1. For the most part, episodes June-August are weekly, short (<20 mins), and address a few topics. 2. Episodes September-May are longer (1 hour), and monthly, with an interview with a guest.Finally, a quick note:  This podcast is NOT for Stacy Hockett. He wanted you to know that.....
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Adam Smith Episode 8: A Nation of Shopkeepers
Episode 19
Tuesday, 30 December, 2025

Send us a textSmith closes Book IV by dismantling mercantilism through the lens of colonial policy, monopoly, and rent seeking, then weighs physiocracy against the system of natural liberty. We trace why colonies grew despite Europe, not because of it, and how “wealth as money” broke policy and fueled war.• mercantilism’s definition of wealth and the balance of trade myth• monopoly and bounties as tools for concentrated gains• chapter 7 on colonies as a case study in institutional design• free ports versus exclusive companies and growth outcomes• enumeration, navigation acts, and distorted incentives• defense costs and the arithmetic of empire• the “nation of shopkeepers” argument and public choice• draconian wool laws, smuggling, and consumer losses• physiocracy’s insights and errors, sector favoritism• the system of natural liberty as Smith’s alternativeIf you have questions or comments, or want to suggest a future topic, email the show at taitc.email@gmail.com ! You can follow Mike Munger on Twitter at @mungowitz