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)

1. Why economists see free speech as a feedback mechanism, similar to prices in markets
2. How restricting speech shifts incentives from truth-seeking to conformity
3. Why censorship often hides problems until they become crises
4. How historical disasters, like China’s Great Leap Forward, illustrate the cost of silenced feedback
5. Why tolerating error is essential for democracy, learning, and social progress

Timestamps

• Free 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 conversation

Gene and John’s recent Australian Taxpayers’ Alliance livestreams on free speech:

https://www.youtube.com/live/ZdQ2y96QakI?si=cCKdaqylXJ03FgFa

https://www.youtube.com/live/fvd3usSMT3o?si=oIr7UJrO9C53Fi4c

Chris 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/0735224897

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