Robert Higgs Debates James Galbraith on Obamanomics
By David J. Theroux • Sunday April 25, 2010 4:17 PM PDT • 10 Comments
Independent Institute Senior Fellow Robert Higgs debates James Galbraith (Professor of Economics, University of Texas; son of infamous, “liberal”, Keynesian economist John Kenneth Galbraith) on Antiwar Radio regarding the folly of government bailouts for insolvent banks, creation of the Glass-Steagall Act as a means to prevent FDIC insured banks from taking excessive risks, benefits and detriments of public and private regulation and oversight, problems of regulatory capture and revolving door politics, divergent opinions on the causes of the Great Depression and efficacy of the New Deal and the arguments for and against government spending on public infrastructure.
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Download audio file (53 minutes)
Also please see the following books by Dr. Higgs:
Depression, War, and Cold War: Challenging the Myths of Conflict and Prosperity
Crisis and Leviathan: Critical Episodes in the Growth of American Government
Neither Liberty Nor Safety: Fear, Ideology, and the Growth of Government
Tags: American History, Audio, Bailouts, Budget and Tax Policy, Economics, Employment, Federal Reserve, Free Market, Government subsidies, Great Depression, Inflation, Mercantilism, Money and Banking, Presidential Power, Regulation, Social Security, Socialism, Taxation, The State, Unemployment, War, Welfare 
Please ditch Flash as a requirement for listening. It’s simply lazy.
Thanks, however, for the work you do.
Chip Morris | Apr 25, 2010 | Reply
What makes Dr. Higgs so effective as a debator is his amazingly detailed grasp of the details of economic history. Galbraith on the other hand, makes sweeping generalizations—yet Higgs was able to refute them each time.
Very impressive performance by Higgs.
Sukrit | Apr 25, 2010 | Reply
Notice that Galbraith has a highly paid position at a public university (as it happens, my alma mater — times three), while Higgs doesn’t. Academia is closed to non-Keynesians, by and large (and most of the exceptions are Marxists).
Kevin R. C. Gutzman | Apr 25, 2010 | Reply
Very nice. Need a download option.
Steve | Apr 25, 2010 | Reply
Fantastic, thanks. In the last year I’ve come to the conclusion that if Dr. Higgs writes something or speaks, it’s worth paying attention.
Speedmaster | Apr 26, 2010 | Reply
Great listening. Thanks to both debaters. Will we ever get to live under the system advocated by R. Higgs? Doesn’t it seem the only evidence for either side is history? And it seems to me that everyone’s interpretation of the history involved is much influenced by their own interests and philosophies.
Sharon | Apr 26, 2010 | Reply
Social rate of return? Can a retiree use that to pay utility bills?
Craig Bardo | Apr 26, 2010 | Reply
Great conversation Dr. Higgs,
My evaluation is that you held your own, until the Great Depression part, where you could’ve instead started by pointing out how bogus the economic statistics of the period were, how the HIGH WAGE policies of both Hoover and Roosevelt were disastrous and are now discredited by the whole profession. At least!
Getting into an arcane discussion about ‘social rates of return’ and the highway construction and railroad construction easily handed rhetorical points (from the laymans point of view) to Prof Galbraith.
Contemplationist | Apr 27, 2010 | Reply
Wonderful debate Dr. Higgs.
Unfortunately for Galbraith, he is under the impression that “social return” is somehow a quantifiable and justifiable term. Your counter on it being “creative accounting” was dead on target; Galbraith’s economic arguments do not take into account the foundation for Economics in the first place: Individual non-coerced actions. Otherwise its just propaganda for thievery, extortion and force.
DW | Apr 29, 2010 | Reply
Great interview. It was neat to hear Dr. Higgs confirm a suspicion I’d had for a while now about my economics professors’ claims regarding the depression spending (specifically the interstate highways) as a good investment. Sure, government can occasionally figure out how to spend money on things that might actually get used, but when they’re doing it at the expense of private sector investment—taking capital way from more needed, profitable investments—the economy suffers and the recession is prolonged. I didn’t think it was such a novel idea but for some reason it doesn’t ever occur to typical Keynesians who don’t take into account the ‘crowding out’ effect or the true opportunity cost of government spending. They also seem to assume that without Roosevelt building them, they never would have been built (let alone by the private sector).
Nate Andelin | May 5, 2010 | Reply