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“Your future is whatever you make it. So make it a good one.”

— Doc Brown

Capitalism is time travel

In the latest EconTalk podcast, Russ Roberts and Mike Munger ask some basic questions — What are markets? What is capitalism? Why do they matter? — with some surprising results.

Munger defines markets as “a set of institutions for reducing the transactions cost of impersonal exchange.”

To help us understand why that matters, Munger starts with the most basic possible example: If I have a banana and you have an apple, but I like apples better than bananas and you like…

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