Podcast appearances and mentions of richard cantillon

On Economics Explored, host Gene Tunny and guest Dr. Mark Thornton discuss the "Skyscraper Curse," the uncanny correlation between constructing the world's tallest buildings and subsequent global economic crises. Mark explains why these architectural achievements often precede financial downturns. With the resurrection of Saudi Arabia's Jeddah Tower project—destined to become the world's tallest building—set for completion around 2027, could another global economic crisis be imminent?Tune in for an eye-opening discussion that connects skyscrapers, economics, and predictions for our financial future.Additional Resources"The Skyscraper Curse and Austrian Economics with Mark Thornton" (Economics Explored Podcast with Gene Tunney): Mises.org/MI_120_AThe Skyscraper Curse: And How Austrian Economists Predicted Every Major Economic Crisis of the Last Century by Mark Thornton: Mises.org/CurseAn Essay on Economic Theory by Richard Cantillon (edited by Mark Thornton): Mises.org/MI_120_BBe sure to follow Minor Issues at Mises.org/MinorIssues

On October 17, 2024, Jonathan Newman appeared on Wake-Up Call with Bill Lundun to discuss Austrian economics, Donald Trump, and mainstream economists.The original episode is available at News Radio 1120 KPNW.Bill Lundun (BL): News Radio 1120 KPNW, thanks for being with us this morning. We have like two different things that we keep hearing when it comes to this particular election period. And it is that Americans overall trust Trump more on the economy. And that's we're talking about voters, whereas the so-called experts don't. Who to believe to discuss it this morning? It is Dr. Jonathan Newman. He is a fellow at the Mises Institute, which is a nonprofit that promotes the teaching and research in the Austrian School of Economics. And it's in the tradition of Ludwig von Mises and Murray Rothbard. And welcome to the show. We appreciate you being here with us. Thank you, Jonathan.Jonathan Newman (JN): Hey, thanks for having me.BL: Yeah. Talk a little bit about Ludwig von Mises and kind of what he stood for in his branch of, if you will, economic research.JN: Sure, Ludwig von Mises is sort of the godfather of Austrian economics, which is a school of economic thought that's very free market. We don't do a lot of mathematical modeling. We consider the individual as having subjective value, and through people's subjective values, they interact in markets, creating market prices, and those market prices are fundamental for developing an economy, for understanding how resources should be allocated. We should be using the profit and loss test to determine how to most efficiently produce things. And so many of the conclusions of the Austrian school are very free market. And of course, Ludwig von Mises was one of the you know the main figures in Austrian economics. He started his career, obviously in Austria, that's why the name of the school's called Austrian economics. But he had to flee the Nazis. So he was he was under pressure from the Nazis, because he was saying things that were critical of government. Obviously he had to flee that area, and he came over to the United States in New York. And had a very famous seminar where many American economists and others were listening to him, and he sort of sparked the Austrian movement in the United States. And so it's grown and flourished since then, and we have the Mises Institute in Auburn, Alabama, that champions his ideas, champions Austrian economics, and is trying to educate everybody about the best way to think about the economy, the best way to analyze policy proposals from politicians and bureaucrats, and promote free markets along the way.BL: If he were to see the markets today and the way that things are, if you will, manipulated in a number of ways, the way the government policy attempts to manipulate things, what would be his takeaway, do you think?JN: I think Mises would be most disturbed by the fiat money system that we have in place today. So in the United States, we have the Federal Reserve, which is our central bank. They are the ones who are controlling the supply of money. They're manipulating interest rates. And Mises would pin the blame on this monetary policy by the Federal Reserve for creating booms and busts, for creating these artificial booms where employment goes up, stock prices go up, everything seems to be going well, and then all of a sudden it crashes. And so one of the crown jewels of Austrian economics is Austrian business cycle theory, which explains how it's actually government manipulation in credit markets that causes these booms and busts, that causes the business cycle. So he would definitely not like that, but he also, just in terms of the general effects of inflation, he would say that the fact that savings rates are way down, nobody's really saving for the future, is because people's money is losing value. And so it doesn't really make any sense to save money for retirement if that money is going to be losing its purchasing power over time. And so that forces people to save for retirement, for example, by investing in the volatile stock markets. So he would obviously, he would disagree with the monetary policy, he would disagree with the size and scope of government as it exists today, and he would champion a more free market approach, where markets are the ones that are and regulating themselves, where consumers are the ones that are deciding which companies are producing things that we like, and use the profit and loss test of the market to rationally and efficiently allocate factors of production, so that we have a growing progressing economy.BL: Alright. To the very basic question. In polling, there's been a lot of polling in regards to this, and that Americans actually trust Trump on the economy, and yet we have these experts, call them so-called or call them actual experts, that don't and the question is so who to believeJN: Well, I definitely wouldn't put much faith in the so-called experts. The so-called experts have been wrong about so many things in the past. And so I think that the reason why people think that Trump and the Republican Party represents more of a... would represent a turn towards a stronger economy is because they're really the only ones that are talking about decreasing, or at least limiting, the increases in the size and scope of government. So if you look at the rhetoric and the proposals from Democrats, there's this problem in the United States and we can solve it with more government intervention and more government spending. There's this other problem that we can solve with more government intervention and more government spending. And yet only on the Trump side, you have at least some rhetoric about how we need more efficiency in government, we need to decrease the size and scope of government. And so people realize that a lot of the problems that the Democrats are pointing out are ones that are caused or exacerbated by government spending and government intervention. And so it makes sense that Americans are sort of doubtful that the Democrats have any sort of a good plan regarding a stronger economy.BL: What about the criticism that has been made because, you know, Trump has once again talked about tariffs, in particular regarding China, and a lot of the, as we've talked about them, the experts are like, "Oh my God, it's going to do these horrible things to the economy. It's going to cause prices to spike again." What's your take on that?JN: I think it's a valid criticism. I think it's good to be distrustful of tariffs because, I mean, in the end a tariff is a tax. And so I'm not going to be the one that says, you know, everything that Trump has ever proposed is a free market and it's going to be good for the economy. But, of course, what Trump is seeing and what the people in the Republican party are seeing is, you know, hollowed out manufacturing in the United States. They see, you know, loss of jobs. So they see these sorts of the things happening, and so they think the tariffs would be a good way to address it. I think that economic theory going all the way back to the 1700s, I mean, you can go back to Richard Cantillon, to Adam Smith, to those guys. And I think that they very compellingly showed that tariffs and protectionism is not a good way to address those sorts of problems. But, in terms of the grand scheme of things, if we're arguing over should we have, you know, this tariff rate versus that marginally different tariff rate, then that's sort of a side issue. Really, the main thing that I think people are focused on is inflation. It's all of the regulations that are imposed on the economy by the government. It's those sorts of things. So, yes, I do have some quibbles with the with the tariff idea, but I still think that it makes sense that Americans are trusting the Trump side and really the distrust of the establishment and the distrust of the so-called experts.BL: Right. You know, one of the things that you hear from the public individuals is, you know, "I just want to see prices come down," and you look at it and I don't remember any time that prices, maybe a little bit here and there, where once you have a period of inflation, with maybe the exception of gas prices, where prices fall and come down. Unless we're talking about a major case of deflation, which is a whole other you know a whole a whole other can of worms that can be actually worse than inflation. Talk a little bit about that whole idea of prices coming down.JN: I think people are worried about deflation for the wrong reasons. And I think the reason that they're worried about is because they associate it with what happened during the Great Depression, where we had a huge increase in unemployment, where output shrank, and we also had price deflation happening at the same time. And so people sort of associate those things. They think deflation is associated with recessions. But it's worth pointing out that there are quite a few things that could result in deflation. And one of the healthiest periods of, you know, economic growth in the United States happened when we were under a gold standard, where output was increasing but the money supply was not increasing by the same amount. And so we had, you know, steady deflation. And we didn't have – it was a long-term steady deflation that promoted savings that allowed – made it easy – for businesses and for consumers and households to make decisions over the long term. It made it easy for people to save with money as opposed to investing in the stock market. And so if your money is gaining value over time, then you can imagine how that would totally restructure the way that the whole economy is allocating resources. So, if money is gaining value over time, then people have an incentive to save. If people are saving, then we have more capital accumulation. If we have more capital accumulation, then our economy can grow in a sustainable sort of way as opposed to the booms and busts that we have now. So, I think the fear of deflation, or deflation-phobia as some people call it, is just based on that one episode in economic history in the United States where I think we should be more comfortable with the idea of our money gaining purchasing power over time, and it could be a very healthy sort of thing.BL: How is that going to happen though? Because you mentioned and you started off by qualifying it with, "While we were under the gold standard." It's a completely different valuation of the way that the dollar is factored right now. Can that could that happen again on a federal reserve system like we have?JN: Oh, absolutely not. Going back to that sort of system of sound money, and I'm not saying that it has to be a gold standard, but going back to a system where, you know, government is not intervening in money and banking, would require a huge shift. It would require a shift in people's thinking and the way that they vote. It would have to require, you know, ending the Federal Reserve, or at least severely limiting its power. And so you're absolutely right that, you know, going back to a system like that, it would require a big change. But the really the first thing that people think about when somebody proposes ending the Federal Reserve or auditing the Federal Reserve or limiting its power is, they think, "Well, what about deflation?" or "What about booms and busts?" And really what Austrian economists are saying is that, if we did get rid of the Fed, then we would actually have a smoother economic growth. We would have stable deflation where people's money is growing in purchasing power. We wouldn't have all the booms and busts, because Austrian economists point out that it's manipulated interest rates that result in those artificial booms and the painful busts that follow. So, you're absolutely right. It would require a big shift. If people are interested in how we would actually reach that stage where we could go back to sound money as opposed to political money, fiat money, then I recommend that listeners check out the writings by Murray Rothbard. If they go to Mises.org/MyMoney, then they'll receive a free reading from Rothbard, a PDF, where they can get it mailed to them. And so there's great plans offered by Rothbard, a great Austrian economist, that would explain how we get there.BL: All right. Appreciate you joining us on the Wake Up Call. Dr. Jonathan Newman here on KPNW. Thanks again.JN: Thanks for having me.

Mark Thornton reviews Philip Duffy's book about the mysterious Irish banker Richard Cantillon (1680–1734). Many crucial Austrian insights have been found in the economics of Cantillon and his lone surviving publication, Essai sur la Nature du Commerce en General. Indeed, the origins of economic theory itself can be traced to CantilIon.Purchase A Tale of Four Cities: From Invisible Hand to Cancel Culture by Philip G. Duffy at Mises.org/DuffyBook.Download An Essay on Economic Theory by Richard Cantillon (edited by Mark Thornton) at Mises.org/Essai.Order a free paperback copy of Murray Rothbard's What Has Government Done to Our Money? at Mises.org/IssuesFree.Follow Minor Issues at Mises.org/MinorIssues.

Although mainstream economists hold that Adam Smith is the father of modern economics, it was Richard Cantillon that recognized the centrality of entrepreneurship in economic development. Original Article: Creating Wealth: The Cantillon or the Smith Way

Although mainstream economists hold that Adam Smith is the father of modern economics, it was Richard Cantillon that recognized the centrality of entrepreneurship in economic development. Original Article: Creating Wealth: The Cantillon or the Smith Way

Na magnífica Paris, me aprofundo na história de Richard Cantillon, o gênio econômico do século XVII, cujas teorias ainda hoje explicam as crescentes desigualdades em nosso sistema financeiro moderno. Cantillon, testemunha da primeira grande bolha financeira do mundo, nos deixou um legado precioso: o entendimento de como o dinheiro e sua distribuição desigual moldam a sociedade, beneficiando os já ricos em detrimento dos mais pobres. Neste vídeo, eu compartilho insights sobre como esse fenômeno, conhecido como Efeito Cantillon, se manifesta no século XXI, especialmente após crises financeiras globais, e como você pode observar esse processo na prática.

Cantillon 2024, scheduled for 7th March at Ballygarry Estate Hotel, Tralee, marks its 10th year as a pivotal platform for thought leaders, visionaries, and industry experts to delve into the urgent issues arising from the transformation towards a sustainable future. The conference will be an opportunity to hear from industry experts on topics including strategic planning, meeting future talent needs, and the evolving culture of organisations. The conference will explore how business leaders can navigate complex transformation processes, framing transformation not just as a strategic imperative but as a commitment to a resilient and prosperous world for generations to come. Cantillon 2024 is not to be missed for those looking to lead transformation in their organisation. President of MTU, Professor Maggie Cusack, expressed the urgency of the conference, stating: "Tickets are selling fast, be sure to secure your place at Cantillon 2024 which aims to spark innovative solutions to the most pressing issues in securing a sustainable future, honouring the legacy of Richard Cantillon, the pioneering economist." In a rapidly changing global landscape, Cantillon 2024 highlights the importance of the need for transformation across sectors from technology and energy to healthcare and manufacturing. The conference serves as a nexus for industry leaders, policymakers, scholars, and innovators to collectively address challenges and strategically plan for a sustainable future. The need for transformation extends beyond businesses - influencing economies, shaping policies, and necessitating the cultivation of a dynamic talent pool geared for the future. Cantillon 2024 will feature a diverse array of presentations, interactive panel discussions, and networking opportunities, fostering collaboration and knowledge exchange. The conference will emphasise the urgency recognised by governmental bodies to develop and implement policies fostering sustainability. From carbon emissions reduction to incentivising green innovations, policymakers play a crucial role in steering industries towards a secure and sustainable future. Organisers are urging those interested to secure their tickets fast before they are sold out. Highlights from the programme include keynotes from industry leaders: Shane McGibney, Chief Business Transformation Officer at Kerry Group, who will be discussing how to create a transformational culture mindset; Senior Economist at AIB, John Fahey who will be sharing the future transformation requirements from a global economic perspective; Gemma Corrigan of Federated Hermes Limited, focusing on the multi-stakeholder engagement process when leading sustainable transformation; and Disruptive innovation expert Aidan McCullen, who will explain the need to embrace the paradigm shift impacting every facet of global industries, economies, policies, and talent development. Following the keynotes, panel discussions will dissect the seismic shift towards sustainability across industries. The rising demand for professionals with expertise in sustainability, environmental science, and technology will be a central focus, reflecting the changing landscape of the workforce. Expert panellists across a host of industries will include: Mr. Padraig McGillycuddy, CEO Ballygarry Estate Hotel: Transforming the Business Model for a Secure Future Ms. Sheena Dympsey Executive Vice President and Chief Solutions Officer at Indivi.: Navigating Transformation in a Complex Digital Health environment. Mr. Cathal Foley CEO, PACE; CCO, Fexco Drive: Platforming to analyse Carbon Emissions in the Air! Dr Assumpta O'Kane, Business Psychologist: Workforce of the Future: The Competing Forces shaping 2040 and beyond! Dr Alison Hampton, Ulster University:? Transformation through the lens of the Zillenial and AI! With networking opportunities built in throughout the day, key topics of discussion will include the value of collective problem-solving approaches through cross-in...

An Austrian Perspective on the History of Economic Thought, Volume 1: Economic Thought Before Adam Smith In volume one, Murray Rothbard traces economic ideas from ancient sources to show that laissez-faire liberalism and economic thought itself began with the Spanish Scholastics and early Roman, Greek, and canon law. Unfortunately, Adam Smith's labor cost theories became the dominant view, especially in Britain. Rothbard regards Smith as largely a retrograde influence on economic theory. Narrated by Jeff Riggenbach.

Recorded at the Mises Institute Supporters Summit in Auburn, Alabama, 12-14 October 2023. Download the slides from this lecture at Mises.org/SS23_PPT_13

Recorded at the Mises Institute Supporters Summit in Auburn, Alabama, 12-14 October 2023. Download the slides from this lecture at https://Mises.org/SS23_PPT_13

With bitcoin down over 60% in dollar terms for the year we thought it might be helpful to look at eight separate lenses through which you can value the network. For further information on this topic I recommend the Bitcoin White Paper, The Denationalization of Money by Fredrich Hayek, the Essay on the Nature of Trade in General by Richard Cantillon, any of the papers or talks of Murray Stahl, and finally the Michael Saylor Series of interviews on the What is Money Podcast. A transcript of the episode can be found at (https://specialsituationinvesting.substack.com).Remember you can support the show in the following ways:Consider switching to Fountain for all of your podcast needs. Fountain sources its content from the podcast index and allows users to receive and stream bitcoin micro payments between fans and content creators. Get payed just to listen to your favorite show and use our affiliate link to download the app: user7318803752755346-6a82e4d49eTo sign up for Strike visit the following link : https://strike.me/en/To get $10 for you and $10 for me at sign-up use referral code: ZEYDWPOr contribute to the show directly by visiting: https://buzzsprout.com/1923146Once on the shows website you can scan the QR code displayed and donate any amount of bitcoin to show your support

Joe Gulesserian is an entrepreneur and published author of the Practical MBA book series. The pages of the Practical MBA bring to light the roots of our economic order of today, and help explain the world around us, how we arrived here, and what might lie ahead. It is comprehensive, fast-paced, making for magnificent theatre, full of spills and chills, from stock market crashes to sovereign debt default, to the 1944 Bretton Woods reset, the IMF, the WTO, U.S. Dollar reserve, and mercantilism. Through his book, we come to meet the economic thinkers that shape our world today from Adam Smith, Richard Cantillon, John Maynard Keynes, David Ricardo, Murray Rothbard, and Milton Friedman. After earning his MBA from Edinburgh Business School in the U.K., Joe taught Corporate Finance, Capital Markets, Statistics and marketing, as an adjunct professor at Toronto colleges. You can follow Joe Gulesserian and purchase his book at PracticalMBA.ca.***Follow the Greg Krino Show here...GregKrino.comYouTubeInstagramFacebookTwitterLinkedInIf you enjoyed the podcast, please leave a 5-star rating and friendly comment on your podcast app. It takes only a minute, and it really helps convince popular guests to join me.If you have comments or ideas for the show, please contact me at gregkrinoshow@gmail.com.

Want your questions related to economics, libertarian theory and ethics answered by an Austrian Economist? Submit them at AskAnAustrian.com Become a donor to Mises PAC, join the decentralized Re(Love)ution! - LPMisesCaucus.com/donate Follow Mark Thornton's work at the Mises Institute: https://mises.org/profile/bylund Follow Mark Thornton on Twitter: https://twitter.com/drmarkthornton Mark Thornton's free books: The Skyscraper Curse and How Austrian Economists Have Predicted Every Economic Crisis over the Last Century: https://mises.org/library/skyscraper-curse The Economics of Prohibition: https://mises.org/library/economics-prohibition-0?SID=2&Product_ID=144 An Essay on Economic Theory: An English Translation of Richard Cantillon's Essai sur la Nature du Commerce en Général: https://mises.org/library/essay-economic-theory-0 Mark Thornton's books for sale: Tariffs, Blockade, and Inflation: The Economics of the Civil War, with Robert B. Ekelund, Jr.: https://www.amazon.com/exec/obidos/tg/detail/-/0842029613/qid=1074265408/sr=1-2/ref=sr_1_2/103-0574048-9951840?v=glance&s=books The Quotable Mises: https://store.mises.org/Quotable-Mises-The-P218.aspx The Bastiat Collection: https://store.mises.org/eBook-P10480.aspx

Despite his obscurity today, the French Irish economist Richard Cantillon was the first person to put forward a theory of the entrepreneur in the market economy. See acast.com/privacy for privacy and opt-out information.

El escenario económico mundial se las prometía felices tras la pandemia. Los más optimistas adelantaban una fuerte recuperación, tras un par de años lastrados por los efectos del coronavirus. Pero, llegados a la hora de la verdad, no parece que se vaya a cumplir esta profecía. La inflación, la invasión de Ucrania, la crisis de las energías... han complicado la situación.Tanto que ya son muchas las voces que apuntan a que el riesgo de recesión es cada vez mayor. Analistas económicos, bancos centrales, organismos internacionales, think tanks... aseguran que la amenaza es real. Pero más allá de los indicadores económicos más convencionales, hay otra serie de señales, no oficiales, más informales, que a lo largo del tiempo han ayudado a vigilar la salud de la economía global. Es el caso, por ejemplo, del llamado 'índice de rascacielos'. Este indicativo fue creado por el analista inmobiliario británico Andrew Lawrence en 1999. El autor que los ciclos económicos y la construcción de rascacielos están relacionados, que los edificios más altos del mundo se han construido en vísperas de crisis. Lawrence explicó, en una entrevista en 2012, que había estudiado hasta el siglo XIX, y había encontrado numerosas pruebas que confirmaban la correlación entre ambos factores.¿Pero qué teoriza este índice? Que la inversión en rascacielos alcanza su máximo cuando el crecimiento cíclico está agotado, y la economía está lista para la recesión. Lawrence explicó que la finalización de estos rascacielos tiende a "coronar lo que es un gran auge de la construcción". Sin embargo, señaló que el problema no es el edificio alto en sí, sino cuando hay un grupo de estos rascacielos.La lógica detrás de este índice, también conocido como la maldición de los rascacielos, es que la construcción de este tipo de edificios, altos, caros, poco prácticos y ostentosos, es indicativo de derroche en momentos de auge económico, y suelen estar propiciados por la presencia de dinero barato en el mercado. Caldo de cultivo para la creación de burbujas. Y cuando estas explotan, llega la recesión.Este concepto ha sido analizado en el marco de la teoría austriaca del ciclo económico, basado a su vez en las teorías de Richard Cantillon en el siglo XVIII. El economísta Mark Thornton enumeró tres efectos de Cantillon que dan validez al índice de rascacielos. El primero, la disminución de las tasas de interés al inicio de una fase expansiva, que impulsa los precios del suelo. El segundo, la disminución de las tasas de interés, a su vez, permite que el tamaño de una empresa aumente, creando demanda para mayores espacios de oficinas. Y, por último, las bajas tasas de interés proporcionan inversión en las tecnologías de construcción, que permiten romer los récord previos a la altura de edificios. Tres factores que alcanza su máximo al final de la fase de crecimiento.Los ejemplos que confirman la validez de esta teoría son multiples. El primer ejemplo notable lo encontramos en 1907. El pánico financiero que se vivió en aquel año, una de las mayores crisis financieras de la historia de Estados Unidos, vino precedido de la puesta en marcha de dos rascacielos que se convirtieron en los más altos del mundo: el Singer Building y la Met Life Tower. Poco antes del crac del 29 comenzó a contruirse otra cadena de rascacielos que se convertirían en los más altos del mundo. Hablamos del 40 de Wall Street, conocido hoy como la Torre Trump, el Edificio Chrysler y el Empire State. Los heraldos de la gran recesión, los llamó Thornton.¿Más ejemplos? El World Trade Center, en Nueva York, y la Torre Sears, en Chicago, que también se convirtieron en los más altos del mundo, fueron inaugurados en 1973. Coincidió con el crac bursátil y la crisis del petróleo, que lastró la economía durante años. El último caso que señala Lawrence está en Asia. Se trata de las Torres Petronas, los más altos del mundo durante cinco años, que abrieron sus puertas coincidiendo con las crisis financiera asiática.¿Y ahora? ¿Hay alguna construcción de este tipo que indique que podemos estar a las puertas de una recesión? Pues, por desgracia, parece que sí. En 2021 se terminó de construir la torre Merdeka 118, en Kuala Lumput, la segunda más alta del mundo; y la Torre Steninway en Nueva York, el rascacielos más estrello del mundo, y uno de los más altos de occidente. La teoría, por supuesto, tiene lagunas, por lo que ha recibido numerosas críticas. La principal es que es poco fiable, y que recesiones como la posterior a la primera Guerra Mundial, la de 1937 o la de los primeros años 80 no se caracterizaron por proyectos de rascacielos destacados. Otro estudio de 2015 también llegó a la conclusión de que hay cierta relación entre la altura de los edificios y los ciclos económicos, pero no como señala Lawrence. El informe, elaborado por Barr, Mizrach y Mundra, destaca que la evolución del PIB permite predecir cambios en la altura de los edificios, ya que la altura extrema es impulsada por el rápido crecimiento económico. Pero, al revés, la altura no es fiable como indicador de recesiones inminentes.

In today's episode Jason talks about the upcoming show and his predictions for 2022, including shadow demand, urban dweller, rise of suburbia, remote worker, remote working out, multi-generational living, the grapes of wrath migration, supply demand shock, trickle up economics, Richard Cantillon, Joseph Schumpeter, national housing assistance, stagflation, great resignation, digital dollar, PTSD pandemic, tale of 3 markets, Universal Basic Income, Modern Monetary Theory, Socialism, surveillance and censorship society of 1984, crisis and opportunity, client case studies, and more! He also welcomes former dentist turned real estate investor and author Dr. David Phelps, who recently launched his new book "Own Your Freedom: Sustainable Wealth in a Volatile World." David talks about his own experience of gaining financial freedom, going from trading his time for money to building an impressive portfolio of real estate income properties. Dr. Phelps is on a mission to help you achieve and own your financial freedom! Key Takeaways: 8:40 Welcome Dr. David Phelps and his new book "Own Your Freedom: Sustainable Wealth in a Volatile World" 10:50 The safe and secure route then discovering real estate investing 13:54 The real estate light bulb went off 16:22 Owning assets is more powerful than your own efforts trading time for dollars 19:09 Instead of just spending, invest 22:14 Obtain your own financial freedom 24:08 You must put your own oxygen mask on first 26:08 The founding fathers and freedom 28:05 The decades of indoctrination 30:43 Regardless of what you believe, there is an agenda 32:15 Elevate yourself to investor status and the power of association, Ken McElroy and George Gammon and the Collective Mastermind 36:04 The mind of money   Tweetables:  "Power corrupts, and absolute power corrupts absolutely." Voltaire We are here to protect the people, places and profits you care about in these turbulent times. Jason Hartman Money always goes where it's treated best. Jason Hartman The WEALTH TRANSFER is happening FAST! Protect your financial future now! Did you know that 25% to 40% of all dollars ever created were dumped into the economy last year???  This will be devastating to some and an opportunity to others, be sure you're on the right side of this massive wealth transfer. Learn from our experiences, maximize your ROI and avoid regrets. Watch, subscribe and comment on Jason's videos on his official YouTube channel: YouTube.com/c/JasonHartmanRealEstate/videos Free Mini-Book on Pandemic Investing: PandemicInvesting.com Jason's TV Clips: Vimeo.com/549444172  CYA Protect Your Assets, Save Taxes & Estate Planning: JasonHartman.com/Protect What do Jason's clients say?: JasonHartmanTestimonials.com Free Class:  Easily get up to $250,000 in funding for real estate, business or anything else:  JasonHartman.com/Fund Call our Investment Counselors at: 1-800-HARTMAN (US) or visit JasonHartman.com Free white paper on the Hartman Comparison Index™  Guided Visualization for Investors: JasonHartman.com/visualization

Was Adam Smith the founder of modern economics? Not so, says Murray Rothbard in his staggering two-volume An Austrian Perspective on the History of Economic Thought. Dr. Patrick Newman joins the show for a look at Rothbard's treatment of economics before Smith—from the Ancient Greeks all the way to the Scottish Enlightenment—and his take no prisoners revisionist approach. Jeff Deist and Dr. Newman cover Aristotle and Plato, Aquinas, Protestants and Catholics in the Middle Ages, Spanish Scholastics, Mercantilists, French Physiocrats and Turgot, and the criminally underappreciated Richard Cantillon. If you're a fan of economics and non-bowdlerized history, don't miss this! Additional Resources Read Rothbard's important work: Mises.org/APHET Find out more about Dr. Newman's new book: Mises.org/CronyismBook

Was Adam Smith the founder of modern economics? Not so, says Murray Rothbard in his staggering two-volume An Austrian Perspective on the History of Economic Thought. Dr. Patrick Newman joins the show for a look at Rothbard's treatment of economics before Smith—from the Ancient Greeks all the way to the Scottish Enlightenment—and his take no prisoners revisionist approach. Jeff Deist and Dr. Newman cover Aristotle and Plato, Aquinas, Protestants and Catholics in the Middle Ages, Spanish Scholastics, Mercantilists, French Physiocrats and Turgot, and the criminally underappreciated Richard Cantillon. If you're a fan of economics and non-bowdlerized history, don't miss this! Additional Resources Read Rothbard's important work: Mises.org/APHET Find out more about Dr. Newman's new book: Mises.org/CronyismBook

Was Adam Smith the founder of modern economics? Not so, says Murray Rothbard in his staggering two-volume An Austrian Perspective on the History of Economic Thought. Dr. Patrick Newman joins the show for a look at Rothbard's treatment of economics before Smith—from the Ancient Greeks all the way to the Scottish Enlightenment—and his take no prisoners revisionist approach. Jeff Deist and Dr. Newman cover Aristotle and Plato, Aquinas, Protestants and Catholics in the Middle Ages, Spanish Scholastics, Mercantilists, French Physiocrats and Turgot, and the criminally underappreciated Richard Cantillon. If you're a fan of economics and non-bowdlerized history, don't miss this! Additional Resources Read Rothbard's important work: Mises.org/APHET Find out more about Dr. Newman's new book: Mises.org/CronyismBook

Was Adam Smith the founder of modern economics? Not so, says Murray Rothbard in his staggering two-volume An Austrian Perspective on the History of Economic Thought. Dr. Patrick Newman joins the show for a look at Rothbard's treatment of economics before Smith—from the Ancient Greeks all the way to the Scottish Enlightenment—and his take no prisoners revisionist approach. Jeff Deist and Dr. Newman cover Aristotle and Plato, Aquinas, Protestants and Catholics in the Middle Ages, Spanish Scholastics, Mercantilists, French Physiocrats and Turgot, and the criminally underappreciated Richard Cantillon. If you're a fan of economics and non-bowdlerized history, don't miss this! Additional Resources Read Rothbard's important work: Mises.org/APHET Find out more about Dr. Newman's new book: Mises.org/CronyismBook

Was Adam Smith the founder of modern economics? Not so, says Murray Rothbard in his staggering two-volume An Austrian Perspective on the History of Economic Thought. Dr. Patrick Newman joins the show for a look at Rothbard's treatment of economics before Smith—from the Ancient Greeks all the way to the Scottish Enlightenment—and his take no prisoners revisionist approach. Jeff Deist and Dr. Newman cover Aristotle and Plato, Aquinas, Protestants and Catholics in the Middle Ages, Spanish Scholastics, Mercantilists, French Physiocrats and Turgot, and the criminally underappreciated Richard Cantillon. If you're a fan of economics and non-bowdlerized history, don't miss this! Additional Resources Read Rothbard's important work: Mises.org/APHET Find out more about Dr. Newman's new book: Mises.org/CronyismBook]]>

Jason Hartman joins us to talk about how young investors can navigate the current housing market and succeed. We cover inflation - what it is, what it does, and how you can use it to your advantage as an investor; how to think about debt; his favorite asset class; his strategy for financial perpetual motion; and how to think about mitigating risk. Jason's Site: https://www.JasonHartman.com Free Book: https://www.PandemicInvesting.com  --- Transcript   Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: Hey, everyone, and welcome to another episode of the remote real estate investor. I'm Michael Albaum, and today I'm joined by a very special guest, Jason Hartman. Jason is the founder and CEO of the Hartman media company, as well as the Jason Hartman foundation. He's a longtime real estate investor, and also host of the creating wealth podcast. And Jason's gonna be talking to us today about some real estate tips and tricks he has, as well as how to use inflation to our advantage. So let's get into it.   Hey, Jason, super excited to have you on the show today. Thank you so much for taking the time to hang out with us.   Jason: It's my pleasure, good to be here. And we're going to talk about one of my favorite topics, that is a topic most people hate, because they don't know how to use it. for their benefit. We're going to talk about how right all the listeners today and the viewers can use it for their benefit. And that is inflation.   Michael: Ooooh, dun-dun-duun! So before we jump into it, I would love if you could just share with everybody listening and watching who you are, where you come from, and kind of what your background is.   Jason: Sure, sure. Happy to do that. So I've been in real estate since I was 19 years old, I got my real estate license, my first year of college, purchase my first rental property at 20 and a half. I was about to get my license right before my 20th birthday. And I've been doing it ever since I've owned a lot of single family homes. Over the years, I've had a couple of big apartment complexes, 139 units, 125 units, 120 unit, mobile home park, and then you know, just a bunch of single families and in some other stuff like that I have not done any Self Storage, investing. But long term rentals are really my thing. And I know your company helps people with long term rentals, we had your founder on my show before. And and so does my company. So we're in the same space. It's a really big space, and a lot of people just love buying rental properties, rightfully so, you know, I like to say it's the most historically proven asset class in the entire world.   Michael: Yes, yeah. I couldn't agree more. I couldn't agree more. So that's awesome. Do you really done a lot of different things? And I'm just curious, which, which is your favorite asset class? Having seen a bunch of different ones?   Jason: Yeah, you know, that's a good question in the the answer, the real answer is it depends. And why do I say that? Well, I think the best asset is the good old fashioned humble single family home, that really is the best one, all things considered. However, you know, it is a little bit harder to scale it. So if you're a really wealthy investor, you may want to do bigger properties, bigger deals, and fewer of them.   However, in recent years coming out of the Great Recession, we've seen big institutional investors that own 10s of 1000s of single family homes, as you all know. And so that is being scaled pretty effectively by major investors. So you know, it can scale, you just need to treat it like a business have systems in place. One of our investors, you know, I'm not sure the exact number he's up to, but I think he's up to about 70 or 80 houses through our network. And he wants to go to 500 doors in single family.   Michael: Wow.   Jason: You know, I do think single family really is the best one. I think it appreciates the best, I think it's the simplest, and for most people, it's the best thing. But But again, if you've got billions of dollars to deploy, I understand that you may not want to mess around with, you know, hundreds of 1000s of single family homes.   Michael: Maybe a bit too slow, too cumbersome.   Jason: Yeah.   Michael: Love it. Awesome. Well, Jason, can you just give everyone a super simple definition, in your own words of what is inflation? Because I think this word gets tossed around by a lot from people. People love using it. People love to sound smart. But for everyone who might not be super familiar with it, just what is it at its basic form?   Jason: From an economists perspective, the real definition of inflation is just simply increase in the supply of money. Right. But what does it really mean? That's the important thing. And that's the real answer to your question. So, first of all, let's understand how it occurs, in most cases. Milton Friedman, the late great economists, who I'm a big fan of but some people don't like him. He said inflation is everywhere and always a monetary phenomenon. Meaning that there are two major influences on inflation. One is monetary policy, which means the central bank, the Federal Reserve, how they deal with money increases and decreases in the money supply. That's monetary policy.   On the other hand, fiscal policy is the policy of the government. It's the way the government taxes and spends. So when it comes to monetary policy, when the supply of currency units is increase, in our case, it's dollars, right. But it could be yen pesos, Brazilian reals euros doesn't matter, right? Whatever that currency unit when the supply of it increases, you have this effect of more, in our case, dollars, chasing a limited supply of goods and services.   And so naturally in any free market without major distortions, and we can talk about that in a moment, if you like. The price of those goods and services will naturally increase as more currency units chase them, they go into the market and they buy them. So when people feel richer, right, when there's a wealth effect, the value of their real estate goes up their stock market holdings go up. There's a wealth effect, right? They feel richer. So they spend more they spend more freely when they feel more comfortable. And if they think the future is rosy and optimistic, they'll spend more. If they think the future is going to be scary and contractionary, then they'll spend less they'll rein in their spending. And so that will tend to cause deflation versus inflation. Right. So I hope that answers your question. Sorry, for the long answer.   Michael: No, it absolutely does. It absolutely does. It's great. And so why is that something that real estate investors should concern themselves with? Or is it something that real estate investors should even concern themselves with?   Jason: Well, it's interesting that you use the word concern, because most, in most cases, concern would be a bad thing. And for most people, inflation is a bad thing. However, for real estate investors, it's a really great thing. And as much as I philosophically do not like inflation, as a real estate investor, owning income property, I love inflation. Okay. So this is where philosophy and just personal interests diverge, right? They really do.   I don't like inflation, I philosophically disagree with it. I don't think the central bank and the government should cause it, I think it hurts most people. But from a self interested perspective, I'm going to figure out and I'm going to help teach investors how to figure out how to align their interests with the two most powerful forces the human race has ever known - governments and central banks. And so most people from a sort of amateur level, say, well Real Estate's a good hedge against inflation. Why do they say that? They say it, because the price of real estate tends to go up with inflation, or a little better than inflation. So it hedges it, right.   So if inflation is, according to the official stats of the consumer price index, the most widely used metric for measuring inflation, the CPI, if the CPI is just say, for example, at any given time, 3%. And housing appreciates it 6% Well, then you beat inflation, right? You beat it by 3%. And so you're better off, right? You're exceeding inflation. And that's the hedge. That's the amateur view.   But the more advanced view is sort of explained in a phrase that I trademarked many years ago. And it's a mouthful, so I'm just gonna warn you it's a mouthful, and that is inflation induced debt destruction. Say that it's fast. Inflation induced debt destruction, or IIDD. Right. And what that really addresses is this hidden wealth crater, this beautifully hidden wealth creator. When you use leverage when you use a mortgage on your properties, then you're borrowing the money based on today's value. But you are actually not even you were tenants because we outsource our debt obligations to our tenants. Right? Which is another great thing about income property. You, we or our tenants pay it back in cheaper dollars. So that is really a beautiful thing. And that's inflation induced. That destruction, I can unpack that a lot more if you like, depending on how much time we have.   But when I started in this business about 18 years ago, hoping people invest in properties nationwide, I really wanted to come up with some new thinking, some new ideas, some things that made my philosophy of investing unique stuff I hadn't heard before, stuff that really just came out of my own head. And then I did find some examples of some of these techniques out there in the world. And the only one I really heard even alludes to the concept of inflation, which is debt destruction was Sam Zelle, who is a big billionaire real estate investor, who owns a bunch of office properties and apartment complexes and, you know, he's he's a wall street type an investor. And he alluded to this idea about, I want to say maybe 15 years ago, it's the only time I ever heard anyone really allude to it back in the time when I was talking about it, where he talked about his company equity office that owns office properties, how they borrow today's dollars, and pay them back in tomorrow's cheaper dollars. Right. So that's, essentially inflation does that destruction?   Pierre: So Jason, I think the common understanding is that inflation is a wealth distribution from the everyday person to those closest to the money because those closest to the money generation are the ones who get to spend it before the prices in the market react to it.   Jason: Yeah.   Pierre: How is there? You have a different way of thinking about this?   Jason: Yeah, no, that's what you said is you nailed it. Okay. So what you what you just address is something that an economist about 250 years ago named Richard Cantillon. postulated, and it's been called the Cantillon effect. Because the insiders, the banksters, Wall Street crooks, you know, they all have access, that the politicians, frankly, they all have access to this money before it hits the streets, if you will, and before it creates inflation.   So, you know, the folks at Goldman Sachs, for example, they basically, since they're on the inside of the game, right? They know that the money is coming, because they're consulting with Jerome Powell, and the other elites, right. They know what's coming. And they can buy up assets, before the effect of the inflation of those asset values has really happened largely in the market. Now, they'll usually continue to basically dollar cost average into a market as those prices are rising. But the little guys, the fools will be the last in. And, you know, that's, that's what, how it works, right?   And it is a wealth transfer, not just because of the Cantillon effect, which you just mentioned, but it's also a wealth transfer, just because of the way inflation works. So inflation is this insidious, hidden tax, that destroys the value of purchasing power of our savings, our stocks, or bonds, and even our equity in our real estate, because that's all priced in today's dollars, but today's dollars keep devaluing through inflation, right? If inflation is, and just to use that, well, let's do it. This one, let's say, say 10%, inflation occurs, whether that occurs in one year or three years, who cares, right? It happens, right? 10% inflation happens.   So if we own a million dollars in stocks, or a million dollars in bonds, or a million dollars in the bank, we just lost $100,000. Because the value those are denominated in dollars, and the value of those dollars is 10% less, but guess what? What if we have a million dollars in mortgages, and our mortgages have now been devalued? By 10%? Well, that's great. See, it destroys the value of everything denominated in those currency units, so in dollars, and thankfully, it destroys the value of debt too.   So beautiful thing when you're a debtor. So the lesson is, use mortgages, use leverage prudently, don't pay off your properties. You know, I had a question from one of my podcast listeners, the other day, emails me and says, Hey, Jason, should I sell one of my rental properties and use the the equity in that property to pay off another rental property? And I said, No, you should use my refi till you die plan and you should leverage them both to the highest possible value pull cash out and buy another property with that cash from the refinance.   Remember, there's no tax on borrowed money. So this is why my other technique called refi, till you die is a good technique for people, right? Because they take advantage of more inflation do set disruption. And of course, you know, you have to use this with some degree of prudence obviously. Right. But it is a it is a very powerful wealth creator.   Pierre: It's kind of a reversal of the wealth transfer kind of your you're absolutely right. It is. And you know, what's interesting, too, is you started off this conversation asking kind of what it means to young people specifically, and I'm not sure why you brought that up. But, you know, a lot of young people are interested in real estate investors, millennials, Gen Z people. And the interesting thing about inflation is that it is the most powerful method of wealth redistribution, most people think taxation is the most powerful method, but it's, that's not true.   The reason is, is because taxes are too obvious. Right? We all know, if our tax bill went up, there will be people rioting in the streets voting politicians out of office when they raise taxes, right, you know, the first George Bush Read my lips, no new taxes. Well, he lost the next election, because you know, that was the reagan is faced with that one, he gave it to the Democrats, right? And raise taxes.   And so, but inflation is something subtle, right? It's something people don't really notice, they sort of do, but they don't really understand why it's occurring. And they just kind of don't get it most people, right. And so it's a very powerful method of wealth redistribution, because it's subtle. It's sneaky, it's covert. But also, it transfers wealth and redistributes wealth, from lenders to borrowers, as we already talked about. But it also redistributes wealth from old people to young people.   Why is that? Well, I'll tell you why. In most cases, old people have hopefully savings, they own stocks, they own bonds, they have money in the bank. Hopefully they do. Hopefully they do, right. And young people typically don't have many assets, they just have a lot of debts. And so they get the advantage. It's an intergenerational wealth transfer without anybody passing away and having an inheritance, right? Because inflation just automatically transfers that wealth from people who have savings stocks, and bonds to people who have debts, because those debts are reduced through inflation induce debt destruction.   So if you're a young person, and you have a super high mortgage, and you have big student loan debt, and you financed both of your cars, so you're a young couple, right? You financed both your cars, and you've got some credit card debt, which is the worst kind of all right? I'm not recommending any of these consumer debts, obviously. But if inflation comes along, it will reduce the value of those debts and allow you to pay the lender back and cheaper dollars. But those aren't ideal debts. The reason real estate debt is ideal. Well, not real estate, rental property income property debt, is because it's self liquidating debt. We don't pay our own debt back. Right, our tenants pay it back. So we basically delegate the responsibility of the debt to people all tenants. Isn't that a great e quation.   Michael: amazing equation. Amazing equation. And I love the the refi till you die. model. That's great. We had a 1031 exchange, Ron, he said, you know, swap till you drop. So very similar methodology   Jason: Swap till you drop, I love it. That's good.  I am going 2 1031 exchanges on my own properties right now. And I agree with you that the 1031 exchange is a great tool right here.   Michael: I'm in the middle of one myself, and it's Yeah, the best thing since sliced bread. So Jason, I'm curious to get your thoughts because everyone always talks about, maybe not everyone, always, I'm over generalizing here. But a lot of people often talk about leverage and being responsible with it. And so what I'm hearing is that the more leverage you can utilize, the more advantageous it becomes in the long run because of inflation. So how should folks think about balancing that with not over leveraging themselves?   Jason: Yeah, good question. And it all depends first off on the person right and their personal situation. First off, right. But secondly, if you buy good properties, and we like we like to help our clients buy properties in linear Our markets. So we don't like these high flying trophy markets that have big fluctuations in pricing in value, right? We like slow and steady. You know, it's like the old parable, the tortoise and the hare. Okay? You know, it's slow and steady wins the race, right? The reliable properties in these reliable markets, mostly in the southeastern United States right now, that would be the example of it, and what I call linear markets, okay.   And so you have good properties with good cash flow characteristics, and, you know, appreciation is not very reliable, but cash flow is pretty reliable. It really is, even in in times of recession, cash flow is pretty reliable, you know, mostly, you collect the rent, mostly people pay in, you know, the money comes in, I mean, not always, but most of the time, it's pretty reliable.   So, good properties, good, linear markets. And using as much leverage as you can, which typically is not more than 80%, you got to put 20% of your own money into the deal. In most cases, you know, it's self liquidating debt, because the tenant pays the debt. Right? So I would never recommend consumer debt of any time. I don't recommend, you know, auto debt, although, you know, auto, that's pretty cheap. And if you finance your car and use that money that you would have done to pay for a car in cash to buy a property, I think that actually is a good idea. Okay.   Michael: Yeah.   Jason: But don't go out and get a super expensive car that you can't afford, right? That's the first lesson to that. student loan debt is terrible. I think it's a complete scam. And colleges are are just basically creating debt slaves. It's awful what they're doing. But that's a whole whole nother rabbit hole,   Michael: I can say we do a whole nother podcast on that.   Jason: We can I have opinions.   Pierre: So just going back to that younger investor, say they're just starting out, real estate has a pretty high barrier to entry for So to get started, how should younger investors be thinking about getting into real estate? Should they be saving their money for a down payment? Or should they be kind of taking bigger risks and playing in the stock market to build up that?   Jason: Yeah, well, you know, I'm never gonna be a huge fan of the stock market. You know, I, I like to say, Wall Street's the modern version of organized crime. Okay, you know, your Look, I mean, the point is, you're just putting your money, your financial future, your savings into somebody else's hands, right? When you buy properties, you're a direct investor, you control. Right, you you own it, you see if you understand it, but it does take more attention, right, you gotta pay attention to anything.   You know, if you're investing in stocks, you better be paying attention, right? I mean, the one way you are sure to lose or not get maximum return, at least, is to not pay attention, right, you can never just delegate this responsibility to somebody else. So in terms of saving for that first property, and the high barrier to entry, well, it's not really that high. I mean, you can buy a decent rental property with 25 or $30,000. Down, it's higher than it used to be for sure. But it's not impossible. And, you know, we have investors in their 20s, that are vying through our network. And, and they're doing it and, you know, you'd be amazed at it's like the old saying, most people overestimate what they can do in a year. And they massively underestimate what they can do in five years. So just living prudently and saving money for that first property. And, you know, letting that first property go to work for you paying attention to it, being a good manager of that property. And, you know, you'd be surprised in just a few years how things can really change.   You know, you buy a second property, we have an interesting calculator that we use for our clients. And it actually one of our clients kind of developed it, and then we expanded on it quite a bit. And that calculator basically shows people how to create a perpetual motion machine using real estate. And you might have heard about the old tales of how everybody, you know, in the late 1800s, I think it was was trying to invent the perpetual motion machine. And it's,   Michael: I can create it.   Jason: Yeah, it can't be done, at least not so far, right? Because energy, you know, has entropy to it, right? And it just loses its power. So you can't create a perpetual motion machine. The law of physics won't allow it, right. But with finance, you can. And basically, as you build your real estate portfolio, you use the cash flow from those properties, and use the appreciation from those properties. And then you get to a point where you do your first refinance, and use the proceeds from that refinances, tax free proceeds to buy another property. And this ultimately can create this perpetual motion machines. Absolutely beautiful.   Michael: That's incredible. That's incredible. I love that.   Jason: Yeah, we've got a calculator that actually shows people that where they can put in their own numbers, their own plan, how much they have to start with and, and create that perpetual motion machine.   Michael: That's great. As an engineer, I just love the analogy. You know, reformed engineer rather?   Jason: Yeah, yeah, yeah. What kind of engineer?   Michael: So I studied agricultural, but I used to work as a fire protection engineer for almost nine years. It was a lot of fun.   Jason: So if you if you if you got a student loan, that's a useful degree, right? People are actually hiring engineers, right. But they're not hiring for a lot of these other crazy things that there's they're selling fake, useless. putting people into you know, $100,000 worth of student loan debt.   Michael: It's, it's terrible. That's quite, it's like there's a whole generation of people that have a mortgage, they just didn't get a house included with their mortgage. You know, it's, it's ridiculous. Yeah.   Michael: It's it is crazy. It is crazy. Jason, I'm curious to get your thoughts, kind of on two separate investment vehicles. One is I don't have a big fan of the stock market, but curious to your thoughts on index funds. Because a lot of folks say, well, that's a great place to park money. So you don't have to be very active in it, kind of set it and forget it. And then alternatively, syndications, where you're involved in real estate, but not direct ownership.   Jason: Okay, so first off, you know, I have something called the 10 commandments of successful investing. And I must tell you, our 10 commandments has helped 23 commandments.   Michael: Funny how they keep growing.   Jason: You know, we got more. Yeah, so we're up to 23-10 commandments now.   Michael: Love it,   Jason: You know, we do math, government over here, okay. Funny math. Because, anyway, so commandment number three has really resonated with a lot of my podcast listeners and YouTube followers. And commandment number three is, thou shalt maintain control, you know, in other words, try as much as possible in your life to be a direct investor. Because when you are not a direct investor, you don't directly own the asset in which you're investing your money. You leave yourself susceptible to three major problems. Number one, you might be investing with a crook. And we've all heard about the scandals on wall street or Enron WorldCom   Michael: The Madoffs.   Jason: There's so many, Bernie Madoff. I mean, yeah, you know, global crossing. I mean, they're, you know, how long How much time do we have, right? There's just you know, that that Coffee Company in China, what's it called? luck in coffee? You know, there's so many stock market scams, it's unbelievable. So we know about that. And in real estate, there's certainly a lot of scams with syndicators, scamming people fund managers scamming scamming people, right? You know, most people aren't getting scammed. But, you know, there are certainly a good number of crooks out there.   When you're a direct investor, you can avoid these problems, right?   Number two problem, assuming they're honest, they might just be incompetent. And you'll lose money because they're either dishonest or stupid. Right. And that's no fun.   The third problem, assuming they're honest and competent, they take a big management fee off the top for managing the deal. And, you know, we've all seen these ridiculous salaries on Wall Street, as the shareholders are losing money, but they're still paying themselves big bonuses, right? It's just these things are not correlated, like they should.   Michael: Right.   Jason: And so so these are the problems you leave yourself susceptible to, don't directly invest in Listen, I'm not a direct investor, anything, everything I sell, okay, I mean, I have a lot of direct investments. But I have some non direct investments too. You just got to trust the person you're doing it with or the company, you're doing it with their competence. And their, their honesty. Right. So So that's, that's part of it. And then you've just got to look at the deal and see if they're charging ridiculous fees, you know, acquisition fees, disposition fees, management fees, are they using your money in the fund to go out and raise money from other people? Well, I mean, I don't know. Should that be an expensive the funder? Is that like an outside business expense, right? Yeah. So these are, these are questions you have to ask and do due diligence.   Michael: Yeah. Yeah. makes total sense.   Jason: But as far as index funds, the answer your other question. You know, it's, there are a lot of people who say and a lot of they have a lot of evidence for it. But you know, like anything, it's debatable because you can slice and dice things a million different ways that the index funds beat these highfalutin fund managers that charge big fees, right. So just by the index, there may be some wisdom to that.   Michael: Yeah. Yeah.   Pierre: Just thinking about risk taking on, you know, how to mitigate some of the risks that are inherent with taking on this debt, with an we're kind of depending On the government inflation to capitalize on that, what are some other risks that are inherent in government action? Like, there's a lot of talk about when people are deferring their mortgage payments, they're going to lose their homes when the government assistance stops, like, what are some ways to protect yourself.   Jason: Protect yourself? So, I mean, look at everything has risk, there's nothing risk free, even putting your money in the bank is very risky, because well, it's actually not risky. I know for sure what's going to happen with your money in the bank, you're going to lose it to taxes and inflation, guaranteed. Guaranteed loser money in the bank. Okay. That one is, is the guaranteed loss, right? Everything else has a risk, it could go up or down, right. And, you know, there's risk and everything, there's political risk.   So if you are investing in a blue state, the political risk is pretty significant. People are leaving a lot of these places. I live most of my life in California, and California has become a more risky environment with the political environment, they're New York, risky, right. And the other states, they're more business friendly, or a lot less risky. In fact, they're benefiting from the migration that's occurring out of these more or less left oriented places.   So there's political risk, and the political climate can change over time, right? For example, Texas, has always been very business friendly. But that's really kind of changing a little bit in Texas, even right, especially in Austin, which is a great city are really neat city. But politically, it's getting kind of risky here. So these risks are inherent.   But one thing that can really help directly when we're talking about risk in real estate is this. It took me 19 years to discover this, and I've been teaching it for a long time to it's called the Hartman Risk Evaluator. And basically, what the Hartman risk evaluator does, is it shows people by using what I call the LTI ratio, we've all heard of the LTV ratio, the loan to value ratio, right? Hey, you know, we'll give you an 80% loan, you need to put 20% down, that's the LTV ratio, right when you're getting a new loan, but the LTI ratio I invented, and that stands for land to improvement ratio.   So when people buy a property, they usually consider it to be just one thing, but it's really two major items, there is the land. And then there's the improvement for the house or the apartment building sitting on the land. So that's the LTI, the value of the land, versus the value of the improvements sitting on the land, the LTI ratio.   And the Hartman risk evaluator basically shows people that the higher land value markets are much more risky to invest in. And the higher improvement value ratios for that LTI ratio skews toward high improvement value and low land value are less risky to invest in. And I can give you an example of that, that I use personally in my own life. And this is kind of how I discovered a good way to mitigate risk on real estate. One of the first properties I bought out of state when I lived in California. It was interesting, because I was buying two properties at the same time. One was a home for myself in California.   And this was about 2004, I think, and I was buying this house in, in Orange County, California, and it was $815,000. And I was buying another house across the country for $159,000. So you know, you really see the difference there. Right? It was a rental property, that $159,000 pose. And I had this girlfriend at the time, and she was her mom was a new home sales. And she was telling me not to buy this $815,000 house because she just didn't think it was a very good deal. Right. And so we broke up. I bought the house anyway. And there you go.   But I also bought the other house across the country for 159,000. And here's what was interesting. My insurance broker Jennifer was insuring both properties. So she had an office in Irvine, California. And I remember she reached out to me and she said that the out of state property, we're going to give you insurance for $135,000. And you're your personal residence we're going to give you insurance for and I can't remember that one as well. I think about $200,000 Okay.   So basically, we all know the insurance company only insures what the improvement sitting on the land because the house burned down the land walls be there, right? So they don't insure the land value they just insure the house or the improvement. So what's the point of that, what does that tell us? Well, here's what happened. I bought both houses, moved into my personal residence, have a rental property out of state. And here's what happened, the personal residence went way up in value in the first year, even while they were building it, it went way up in value before it was finished. And before I moved in, so it was a great deal, I loved it.   And I moved into the house and about a year went by and I noticed the houses in the neighborhood really going up in price. So I called up my lender that did the original loan and I said, Hey, I think I want to refinance this property, pull some equity out and buy more rental properties. They sent over an appraiser the appraisers name is Eric, I tell you that for a reason. Because he also came back following year appraisal again. And that $815,000 property is now worth 1,300,000. And I thought, Wow, it's only been a year and my property went up. $485,000, do I ever love real estate, and I heard you, but that was in a cyclical market in Orange County, California, a risky market.   So I refinanced the property and pulled some cash out, I bought some more rental properties nationwide. And I really started thinking about that, because when I got the insurance on that property, on the out of state property, they told me, they were going to give me $135,000 worth of insurance, meaning by deduction, the land value was only $24,000. And in the California property, the land value at the time of purchase was about $615,000. So if, if the improvement value goes up, it will only go up by a small amount based on the cost of the construction materials.   And also what happened to the price of lumber went way up, came back down a little bit, etc, etc. But land value is just all over the board. It's not at all logical. land value goes up a lot, and it goes down a lot in rapid succession. And so the risk evaluator basically shows you that the risk is in the high land value markets. And it's a little bit hard to explain this without illustration. But look at it this way. If I've got $600,000 in land value and a property, and that goes down by 50%, I'm going to lose $300,000. And if I got $24,000 in land value in a property, it goes down by half and lose $12,000. The improvement cost is much more stable than the land cost. Because builders won't rebuild more properties if they can't make a profit.   So yes, there are times by during the Great Recession in 2008 or so that properties did sell below the cost of construction. But at the same time properties were selling for half to a third of their land value their prior land value. So the the price of the improvement of the building sitting on the land gives us a stop gap of where it will hold the value much better than high land value markets.   So I hope that makes sense. Again, it's hard to explain without illustrations and slides. But the moral of the story is high land value. cyclical markets are more risky than low land value linear markets. That's the moral of the story. And also, coincidentally, those low land value linear markets have much better cash flow than the high land values.   Pierre That's fantastic.   Michael: That makes a ton of sense. That makes a ton of sense. So I'm curious, Jason, what did you do with that 1.3 million place in Orange County? Did you refi to I mean, you're clearly alive. So not till you die. But did you keep it or did you get rid of it?   Jason: Yeah. So I did, unfortunately, keep it. And I kept living there. And the next year, Eric came back and appraise the house again. It was the exact same appraiser. And he said,   Michael: Good ol' Eric. Yeah, good ol Eric. I have bad news for you, Mr. Hartman. Your house is now only worth 1,215,000. So I lost $85,000 in a year. Okay. But I was still way up. And I still stupidly kept the house. And I stayed there and I kept living there. I wanted to move but frankly, I was just too busy to move. I wanted to move out of state. That's sort of a major decision. And I finally did get out of the Socialist Republic of California about 10 years ago. I'm glad I did. You know, California is beautiful. It's great place but I just don't want to pay the taxes. I just had it.   And so I moved to Scottsdale, Arizona. I lived there for six years. And now I live in Florida. And I just every time I move I lower my tax rate and so for 200 state income taxes. And so I kept the house, and I ended up selling it for only about $100,000 more than I paid. I should have sold it sooner and made $485,000. But you know, I just didn't. And I was just too busy with my business to really manage my real estate, my home as an investment really, really well.   But the moral of the story is, that's a cyclical high land value market, the cost of improvement when I sold it for $915,000, about 100,000 more that I paid, the cost of the improvement did not go down. It actually cost more to build that house seven years later than it did the day. I bought it seven years earlier. But the land value had gone down. Well, it was still up above what I paid for it. But it was still much a lot lower than the peak, which was 1.3 million.   Michael: Got it. And the reason that the property the improvements would have cost more to build seven years later when you sold it was because of inflation, right?   Jason: It just inflation. Yeah. Yeah. Well, it was actually that's a that's a good point, Michael, it was inflation. But it was also inflation caused not just by bad fiscal and monetary policy, but inflation caused by a huge economic and construction boom in China, and to a lesser degree, India, they were just sucking up these raw materials, these commodities used to build houses.   And so if you think about it, another principle I teach is called packaged commodities investing or assembled commodities investing. And what that is, is, if you think of the houses you buy, or the apartment buildings you buy as commodities, just packaged up, right, you know, what are they they're glass, steel, lumber, concrete, petroleum products, copper wire, you know, etc, etc, labor, energy, all these things go into building a house.   And so that's what you're really buying. When you buy in low land value, good linear markets, like we invested. Like, if people go to my website, if they want to see a list of linear markets, just go to jasonhartman.com, click on the Properties page, those are all linear markets, okay, that we'd recommend investing in low land values, high improvement values as an LTI ratio. And you're basically a commodities investor.   And the neat thing about these commodities guys, is they are not attached to any one currency. These commodities, whether they be lumber, concrete, petroleum products, copper wire, they don't care if you're buying them in dollars, yen, Euro, pesos, whatever, it doesn't matter to them. They're they have intrinsic value, and they're used worldwide. And every human on Earth needs them. Because they are the ingredients of the places we live, the places we work, and the places we interact with all day. It's every building is made of these things.   Michael: Interesting. That's a really interesting way to think about it.   Jason: Packaged commodities investing.   Pierre: Yep, that definitely answers my question. Thank you.   Michael: Jason, we want to be super respectful of your time here. Any additional questions for Jason?   Pierre: Just tell our listeners where to find you, link them to your channels?   Jason: Yeah, thanks. So I'm on my podcast is called The Creating Wealth Show. And you can get that just look up Jason Hartman, wherever you get your podcasts, my website, jasonhartman.com. I've also got a special gift for your listeners and viewers. And that is a book a little mini book that is free. And what we did is we took a lot of my strategies that have been teaching for many, many years, and we adapted them to the crazy times we're living in. And that is available totally for free at pandemicinvesting.com, that's pandemicinvesting.com, and it's a small book on pandemic investing that you get right away. It's just emailed to you right away. for free.   Pierre: We'll put that in the show notes as well. So   Jason: Thanks.   Michael: Yeah, can't wait to take a read that sounds awesome. Because he has you mentioned that we are in a bit of a crazy time here.   Jason: You know, it's a really weird time and a lot of things that people expected. I think, you know, it's hard to even remember, try to think back how things were, you know, what, 16 months ago? Right? I mean, just think of what you thought back then. And everybody listening to this. Think of what how you were thinking back in, you know, maybe, I don't know, March of 2020. A lot of people just thought the world was going to end. Right. The economy was going to collapse. You know, there were riots that summer. You know, cities were being destroyed, burnt down. Windows broken, you know, massive looting and all kinds of crazy stuff going on in and and look at what really happened.   That's a lot different than most people would have thought it's counterintuitive, right? Yeah. But it is a wealth transfer. And a lot of people are still suffering. And a lot of people haven't even noticed how bad it is going to get. So it's it's uneven, it's unequal, and it's unfair. And just, you know, for people listening to your show, I know that you're trying to do it, and I'm trying to do it for my audience. You know, we're just trying to help as many people as possible, understand what's happening, and understand really how, how they're being played by the system. And inflation is hurting those people. And if you don't do anything about it, if you don't follow these techniques, you will be the victim rather than the victor.   And but you can you can succeed in this environment, just by aligning your interests with these two most powerful forces the human race has ever known. What are they governments and central banks, they have standing armies, they have aircraft carriers, they have police forces, they have missiles, and you know what, it doesn't matter what we think, or what we believe or whether we philosophically disagree. I do. You know, if they don't care, okay, they're gonna do what they're gonna do. And they have all the power, so we better align our interests with theirs, and follow the same business plan they're following. And that's how we'll succeed.   Pierre: Fantastic.   Michael: Love that Jason, thank you so much for coming on this and sharing this was this was really great. Really, really great stuff.   Michael: Hey, my pleasure. Thanks, everybody.   Michael: Thank you.   Pierre: Thank you, Jason.   Michael: Thanks, take care. Talk to you soon.

Paul Moore, from Wellings Capital, joins us to talk about how to leverage inflation to your benefit, transition from single-family rental properties to multifamily and commercial real estate, force appreciation, and how his company is giving back by helping combat the horrors of human trafficking. Paul Moore, wellingscapital.com Find Paul's podcast here: https://www.wellingscapital.com/podcast --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The remote real estate investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: Hey, everybody, welcome to another episode of the remote real estate investor. I'm Michael Albaum, and today I have with me a very special guest, Paul Moore, you may have heard of him from BiggerPockets, you may know him as the founder managing partner of Wellings Capital, or you might know him better for his fight against human trafficking. And today, Paul is going to be talking to us about some pretty hot topics, specifically with regard to inflation, commercial real estate, and also what Paul and his team are doing to fight human trafficking. So without further ado, let's get into it.   Paul Moore, welcome to the show. Thanks so much for spending the time.   Paul: It's great to be here, Michael, thanks for having me on.   Michael: No, of course, of course. So, before we started recording here, I was learning a little bit about your background. But for all of our listeners who might not be familiar with you would love to learn a little bit more about kind of who you are, where you came from, and how you're involved in real estate today.   Paul: Yeah, absolutely. Um, let's see. So in the early mid 80s, I got an engineering degree, which was my first mistake. And then I went on and got an MBA went to Ford Motor companies spent five years there I actually really liked for but I had this desire to be an entrepreneur. So I quit started my own company. I ended up being entrepreneur finalists for Entrepreneur of the Year, Michigan a couple times and we sold that company to a public firm and 97 came to Virginia started flipping houses, then I started flipping waterfront lots then I built some modular and stick built homes. And I learned something you shouldn't build a house if you don't know how to tighten the doorknob on your own house. I don't know just something I just thought I'd tell people that. And, you know,   Michael: Word from the wise.   Paul: Yeah, right. So but that's one of the values of working with a company like roof stock, you know, you you know, if you're flipping houses or building houses yourself, you know, you might have a full time job or something else, you might not know what you're doing. And it's great to be partnering with somebody who does. That's just a side little advertisement for you guys. But anyway,   Michael: I appreciate the shout out!   Paul: Yeah. So but over the years, I was wondering how to get involved in commercial real estate, but I didn't know how. And so I actually started a website to generate residential leads for buyer's agents. And actually, we I mean, I had like 40,000 people on our list at one time that have come through our lead gen. And sold those to realtors that I'm still getting, you know, leads all the time. I got that running in the background, but at the same time, I started a multifamily and slash hotel and we build it I should say from in North Dakota. Then we did another one next door. My business partner did a hotel, I jumped back into multifamily syndication. And now I do self storage and mobile home parks as well. We have we're on our fourth fund with my company right now.   Michael: That's awesome. And what is the name of your company if folks want to get involved in that space?   Paul: Yeah, that's Wellings Capital.   Michael: Awesome. Is that Wellingscapital.com is the website people can go to?   Paul: Yeah, that's right.   Michael: Hmm. There's so much I want to unpack here, Paul. And we, it sounds like we'll have to have you on for another episode. But I'm just curious, getting back to your engineering degree. What kind was it? And I know, you said it was a mistake. But do you think that there was any value in terms of being mathematically inclined or numbers inclined with that degree to helping you in real estate?   Paul: You know, Michael, I'm glad you asked that. No one's ever asked me that. But I think it really is true. Because like I said, I went on to get an MBA and some things that were really simple to me, like, you know, calculating, you know, weighting weighted averages and things. Other people were just like, what, you know, so, yeah, so yeah, I think it did. I think the discipline of getting an engineering degree did help. I got a petroleum engineering degree.   And it was funny, when I went in in 1982, there were seven graduates coming out of that program, and they had seven job offers each and oil prices were high, you know, and when I got out, four years later, in 1986, there were 89 graduates and they had seven job offers total. And, you know, the oil prices were up and down, and you know, I should have learned right then I should have learned, you know, getting a degree in something like that is quite speculative. I mean, you know, it's not like industrial engineering or other things that have a steady demand. It was kind of like swinging for the fences, even back when I was 18. I joined that program.   And Michael when I got out of when I sold my company, In 97, and started investing and doing other things full time, I should have learned the lesson, but I had to learn it all over again. And that's the difference between investing and speculating, you know, speculating is when your principal is not at all safe, and you've got a chance to make a return. And investing is when your principal is fairly secure, and you have a chance to make a return. And over time, investors went over speculators almost every time.   Michael: Yeah, I'd agree with you. But I think it's such a sad story that we hear so many of these big stories about the speculators hitting it big, you know, Bitcoin AI billionaires all overnight. But what you don't hear is the other 100,000 people that lost it all, in that same speculation.   Paul: It's exactly right. And that's, you know, again, that's, I think that's what your company and our company are both about. And that is, you know, investing, you know, and, you know, expecting a stability and a, you know, an expectation that's not based on a war in the Middle East, or a rumor or a tweet from Elon Musk. I mean, we're talking about the value of Roofstock's. And our real estate didn't go up or down when Ilan musk tweeted, because it's based on real math, writing real foundational stuff, you know,   Michael: Yeah, yeah. No, I love it. I love it. So kind of speaking about speculation, we were chatting before the episode and talking about a topic that I think is really, really relevant to today that I want to dive deeper on. And that's inflation. And so, talk to us a little bit about, in your estimation, why you think real estate is such a great hedge against inflation? Because I think so many investors hear it all the time. Oh, it's a great hedge against inflation. But unless you really understand why I think it becomes so much more impactful to really get the reasoning behind it.   Paul: Yeah, you know, I didn't understand it myself till I really dug in when this inflation started heating up. This is a, this is some $10 trillion bills, these are real from Zimbabwe. And you know, and there's other ones back here from Venezuela. And, you know, inflation is real, I don't think that United States will, in the short term, at least experience any kind of hyperinflation like that. But we obviously have real inflation.   I mean, I think I read that in June, the Consumer Price Index, which doesn't even cover, everything was up point 9% in that one month, and it's up like 5.8% for the year. And if you included all the stuff they used to have in there, I think it would be much higher Cantillion, I believe it was Richard Cantillon, was a famous economist, about three or 400 years ago, and he had something that was called I can tell you, in effect, he basically said that those closest to the printing of the money stand to gain or lose most from that printing.   And if you think about who's you know, the two most powerful forces in the world are the Federal Reserve. I don't mean just the US, but any federal reserve and the government. And you've got a chance here, by investing in real estate to align yourselves. Even if you don't like those guys, the government and Federal Reserve, you've got a chance to align yourself with them by investing in real estate.   Now, here's how specifically, you can look back 5000 years and I'm serious, they did a study on this and interest rates are the lowest they've been in 5000 years. Yeah, yes, you can go back to ancient Egypt, just Google it. And it's, you know, there's some semi credible, I'm kidding. There's some credible sources on there, showing that they've studied this back for 1000s of years. But even if it was just the last 100 years, what a powerful moment in time to have interest rates this low, my son recently got his first house. And now he's a young guy, and he got like a 2.65 or 2.7% interest rate.   We just closed on a commercial a large mobile home park with a 3.0% interest rate with many years of interest only. I mean, it's powerful. But think about this. If you can get your largest expense locked in for years or even decades, at a very low interest rate, and then watch the revenue climb due to inflation or words, the rents are going to go up right in line with inflation. And actually with the housing shortage right now, in America, they're going up higher than inflation. I mean, there's reports of lots of places where houses went up 20 and even 30%. Last year, I know one place that went up 60.   And so we've got rents that are going up, way higher than then inflation but leaving if they stay with inflation, imagine the increase in rents with your largest cost being fixed for either 10 years, 12 years in commercial or 30 years. In residential, it's a powerful, dynamic and the ability that delta, the difference between that increasing revenue and that fixed largest cost is you're increasing cash flow, and then increasing equity you have in this property.   And importantly, for me, we talked about speculation. Also, as that gap widens, you're increasing your margin of safety in case anything goes wrong. So it's three powerful reasons that inflation is a great time to invest in real estate, when there's inflation, it's a great time to invest in real estate. But when there's low interest rate debt, it's even better. I remember the late 70s and early 80s, when, you know, inflation was in the mid or high teens, but so were interest rates. Now we've got a very different situation. We've got increasing inflation, but low interest rates. Very, very amazing time to invest in real estate, take action, folks. Now's the time.   Michael: Yeah, I love that just the visual of your arm saying, okay, here's your revenue, but your your costs and your expenses stay fixed. And so just for everybody listening, that might not even be familiar with the term inflation or really what it means. at its base level, it's the value of the dollar tomorrow is less than the dollar today. So if milk costs $1, today, tomorrow, it costs $1.03. It costs more money to buy those same goods and services. And so if you're not investing in something that generates a higher return, or that keeps up with inflation, your dollar gets left in the dust. And so a lot of people talk about putting their money in their mattress or leaving it in a bank. And you can actually lose money in a sense, because if the value decreases with time,   Paul: Yeah, it's true. And I told somebody the other day who got a 2.9% mortgage or something, they were really young guy, it wasn't my son, it was somebody else. And I said, Do yourself a favor, don't ever pay that off. And he gave me the look, you know, like I said, don't pay extra. Don't try to pay it off early. And he gave me that look, because I think he'd studied Dave Ramsey, and So Robert Kiyosaki said this well, because I've for years gone, okay, Dave Ramsey's, right, but he's not right. And Dave, Kiyosaki said it well, we were in Belize together with the real estate guys about a month ago.   And he said, I'm friends with Dave Ramsey, and he's right, for the vast majority of people, they should pay off their credit cards and their bad debt. But there's also a good kind of debt. And that's the debt against an increasing an asset that's increasing in value, like real estate. And so that's where Dave Ramsey's thinking would get you wrong, you know, he'd say, don't have debt or pay it off quickly. And all that stuff. You know, getting fixed rate debt for a long, long time in real estate is a fabulous move. And it's a way that people have got extremely wealthy for many years, Sam, Zelle said, was one of the keys to his wealth. And he is the most successful real estate investor in America, possibly in the world. And Sam Zell said, that's one of the ways he got wealthy by getting low, low for him six and a half to seven and a half percent interest debt in the 70s. And having an increasing inflation against that.   Michael: Yeah, I think I think it makes so much sense. And once again, people can start to wrap their head around that delta and how that Delta Works over time 99% in their favor, it starts to become blatantly obvious that, hey, this is a really great place to park money,   Paul: Right? It's so true. It's so powerful. And even as I talk about it again, I just want to jump off this podcast and go buy something else, you know.   Michael: Yeah, and something that we talk a lot about in the RoofstockAcademy is running the numbers and really getting a grasp upon Okay, well, how are my dollars working for me? What What is the return look like? And just at a very high level, I mean, if you're borrowing money at 3%, and earning a five 6% interest return on those dollars, you've just created a spread out of thin air. And you know, you've created arbitrage and that's what banks do, they lend money out at certain and then they borrow it at a different rate, and the spread is where they make their money. We're doing the exact same thing.   Paul: Hmm, that's right. And the wealthiest people in the world understand this. And, you know, banks, whether they're loaning money at three and a half percent, or 13 and a half or whatever, it doesn't matter as long as they got that, you know, a couple points spread that that arbitrage is where the you know, where the profit is.   Michael: Love it. So, Paul, let's change gears here a little bit, since I know that you're a multifamily guy. I'm a total the total multifamily guy as well. Talk to me about how you made that transition from single family into commercial multifamily, or how you've seen others do it really well, because I think for a lot of people, it's this whole new landscape. It's a whole New World, commercial mortgages. I could never I could never do that. Yeah. What have you seen successful people do?   Paul: Yeah. So my mentor had about 110. I think it was single family homes, around Cincinnati and other places. And he realized, wow, what if I could buy 110 unit apartment building? Would that be more efficient, and he so he started drilling down and studying that realized, you know, one loan, one big parking lot to scrape snow off of one,   Michael: One roof,   Paul: One set of roofs to repair. Yeah. And so he thought it was a really good idea to go into commercial. And so he did that. And he found, you know, that he ended up selling his single family homes at that point. And a lot of people have made this transition, though, you don't have to, I mean, there's companies, you know, out there that have hundreds or 1000s of single family homes, and they're doing well also.   But at any rate, that the difference really is that one of the big differences I want to point out is this in the residential realm, your value is based generally on comps. So if I bought a house for $200,000, and I added, like 300,000, and improvements, you know, I put in gold plated fixtures and a big, expensive fence, I build out the attic, in the basement made an addition, you know, and I had 500,000 it but I was in a $350,000 neighborhood, it would be hard to sell it for a profit, you know, if I had 500 in it.   In commercial real estate, the value is based on math. And that math is quite simple. It's kind of similar to the P e ratio price to earnings ratio in stocks. The math is this, the value or the value increase is based on the net operating income, or the noi increase divided by the cap rate or the rate of return.   And so let's go over that. So the value the price is based on the income stream. And so it's the gross revenues minus the operating expenses, that will give you the net operating income, that's the numerator. The denominator is the rate of return. So if you're looking for an eight or 10% return, you divide by eight or 10%. Now it's really hard to get deals like that anymore. But cap rates these days are typically four or five 6%. So people are tolerating, if you will, a 5% return.   And so here's the math on that if you have $100,000 a year net operating income, not including the mortgage, and not including any depreciation. But if you have $100,000 noi, and you're willing to tolerate a 5% rate of return, that's a 5% cap rate 100,000 divided by point 05. That'll give you a $2 million value, and you'll have to pay 2 million to get $100,000 annual cash flow stream.   And so if you are the seller, you can think about ways that you could force appreciation Hmm, let me see, if I'm a self storage facility, I could add you know, I could take some of this paint this unpaved grass out here on the side, this three acres and create you know, RV and boats parking and create additional cash flow. If I'm a mobile home park, I could put in like we literally saw a guy we invested with him. He put in a one acre fenced, paved area and added boat and RV parking to a mobile home park added $10,000 a month and let's do the math on that.   Okay, this is crazy. So let's say it was a $5 million mobile home park 3 million in debt 60%. LTV, 2 million in equity. So he had 2 million in cash and we were one of the investors in this okay. Now he added a $100,000 paved fenced parking area. And he said to all the people who had three or four or five or six cars sitting in front of their trailer, you have to park it out here and you can't park your work trailer and your boat and your RV in your yard anymore. So they cleaned up the place which allowed them to increase rents By the way, but they also charge people and they were making a total of $10,000 after a while, renting these slots out in this paved area out front to the people in the park and the community. 10,000 a month. That's 120,000 a year 120,000 divided by a 6% cap rate and it's 120,000 divided by point 06. If I'm not mistaken, that's about a $2 million increase in value. Wait a minute, there it is $2 million.   They only have 2 million in equity in this so they just double the equity and over to the investors got 100% return on their money by this one simple change. Now, my friends, that's called forcing appreciation. It's a very, very powerful thing that commercial real estate has, so if sometimes you can raise rents by 10%. But with leverage, like I just showed you, you can increase the value of the equity by maybe 30%. Or you can add additional empty lots, you know, to a mobile home park, or like I said, parking to a self storage facility, or you can increase occupancy by 10%. There's so many ways you can force appreciation.   So buying from a mom and pop seller, let's say have a mobile home park, that you know that the owner doesn't have the desire or the knowledge or the resources to increase value, buying from them and paying them what in their mind would be a huge price. And then making these improvements can really juice the returns for investors.   Michael: Yeah, that's something that I realized a while back when I first got involved with multifamily is that you're limited on the single family space to comps. If your neighbor's house doesn't take care of the neighbors and take care of their house that affects you. But in multifamily and commercial, if you're able to create because essentially you're buying a business, you're buying and selling businesses, and so that's why it's valued based upon the cash flow. So if you can create and creative ways to generate additional cash flow that has a lot of value.   And in that example, I mean, I'd love that $100,000 investment yields 2 million in value. And the cool thing about that, that I think I want to harken back to is that they don't have to sell that to realize any of that 2 million in value, you can go do a cash out refinance, you can establish a business line of credit and tap into that. So it's usable, tangible dollars that you can access for doing the work. So I love that example.   Paul: Yeah, I mean, you're you're making me think about a self storage facility in Colorado Springs by doing something like that. They were able to just refinance and return all the equity to investors. Now the investors have no risk left on the table. There's nothing they can really lose, because they got their principal back. And now everything is pure profit from then on.   Michael: That's awesome. That's awesome. So if we scale it down a little bit to smaller multifamily, so commercials of five units and plus, where do you see people really succeed in making that leap between single family to commercial multifamily? And then by that same token, where are you see people get burned?   Paul: I think one way, and I'm not sure this will perfectly answer the question, Michael. But one way that it works really well is if you see intrinsic value. And here's what I mean, Michelangelo, the greatest sculptor ever said, I saw the angel inside the block of marble, all I had to do is chisel and chisel till the angel came out. And that sounds silly, but it's really, really powerful. Because basically, it's he was able to identify intrinsic value, meaning he didn't see it as a $300 block of marble, he saw it as a extremely valuable sculpture, and he was able to pull that sculpture out.   And so a great operator can see value where there is not any in order to the extrinsic value, the sale price is, let's say, a million dollars, but he can see, you know, a possibility of increasing that to say, a million and a half by doing something creative. And so I'm thinking back to your question now about the five units. If you can find land that is that like, maybe there's an extra acre there, but nobody seemed to have noticed that and you can go get permits, you know, to add five more units, that is where a lot of value can be created.   One time I bought a five acre parcel of waterfront property that was absolutely not subdividable. But I actually found a way to legally subdivide it into five one acre lots. I mean, there's obviously that was a huge, huge win.   I'm thinking of, Oh, I have a friend. Now this is a little different. But this is kind of cool. He was he had his clients. He's a large realtor in Minnesota. He was having his clients buy these, I thought overpriced, large single family homes near campus. And he I was in the car with him once he was on the speakerphone. And he was telling this guy to go ahead and pay 400,000 for the single family home that rents for 1600 a month and I said that didn't sound like such a good deal, Eric and he smiled. He said it's near campus, all we have to do is furnish it, put two beds in each room, we can rent it for like 600 a bed. And it's the math on that, like he'll make like, you know, his his gross revenue will be over 4000 a month on you know, a property that he paid 400,000 for now, that is a smart way of extracting intrinsic value out of a single family home.   Michael: That's great. That's great. I love it. I'm I'm in the midst of a redevelopment project myself, it was a three unit residential with I think four units commercial three stories trying to out 20,000 square foot building. And I was realizing that the area was starting to pop, and you could even see it just coming down the street, the the transition and changes were coming. And so I'm making it into 15 residential units and two commercial units. So I talked a lot about it on the podcast and prior episodes about some of the brain damage and lessons learned. But once it's done, I'm very excited.     Paul: Oh, you sure? Well, especially in these times, and adding inflation on top of that,   Michael: Yes, yes. And I think just one of the pieces of intrinsic value that people can keep an eye out for, and it's something I talk about all the time when chatting with with newer investors in the academy is look for under market rents. And I think that's so counterintuitive. But if you can find an asset that's priced upon today's rent, but you know that it's undervalued, all you have to do is buy it, increase the rents, and now the investment should be returning even more than you bought it for.   Paul: Yeah, that's absolutely true. You just reminded me You are fond is considering investing with a multifamily operator that does a couple things, he goes in to a municipality and he actually negotiates he'll find an asset that's like $200, under market rents, then he'll go negotiate with the municipality and get a huge tax abatement. And so he'll go in, then he'll be able to raise the rents by let's say, 200, over, say, two years, you know, you don't want to do it day one, necessarily. But if you can take your taxes, which is probably most of the time your second largest expense behind the mortgage payment out of the equation, he's able to get like an 80% tax abatement, sometimes in these opportunities zones, or whatever. It's a massive win for investors.   Michael: Wow, that's incredible. So yeah, I think just to wrap this up with a bow, look for opportunity, where other people might have overlooked. And   Paul: Exactly, I think it's the way to do it.   Michael: Yeah, I think too, that there's this semi vicious cycle of on properties, if someone sees it and passes on the opportunity for whatever their reasoning might be, then it sits a little bit longer on the market, another person might come take a look at it not see an opportunity sits a little bit longer. And so by the time you get a look at it, it might have been on the market, 30 6090 days, whatever. And so you think that there must be something wrong with it. And so that's the reason you pass on it. Versus people might just not be looking at it through the right lens. And so I think give every you know, give every property give every opportunity a shot, and try to look at it through a really objective lens.   Paul: Yeah, it's really true. My son buys land that way, and there's a guys who they're like six or seven land is a very risky thing to invest in. I'm talking about large land tracks, you know, in the mountains, but there's like seven uses for land. Now, you can do solar, you can do cell towers, you can do timber, you can do carbon recapture, and sell those credits to companies. And there's all kinds of things. You can rent to farmers, you can in the Blue Ridge Mountains where I am, you can rent to hunters. I mean, there's so much you can do with one piece of land that might have been overlooked by hundreds of people for years.   Michael: That's incredible. That's incredible. Yeah. So remove, remove the box, and the opportunities become limitless.   Paul: Yeah, right.   Michael: So Paul, I know that you're a pretty big advocate and fight involved in the fight against human trafficking. We'd love to learn a little bit more about that.   Paul: Michael, you wouldn't believe this man. You can take the record profits, not the average, the record profits of Apple, General Motors, Nike and Starbucks, add those together triple that number. And that's less than the annual revenues generated by human trafficking right now. It is a huge problem. I'd like to believe if I was alive in the 1800s, I'd have been like with William Wilberforce fighting to stop slavery. Or I'd like to believe if I was an adult in the 1960s, I would have been fighting for civil rights.   Well, this is a civil right, it is slavery. And it's happening right under our noses. So my company, Wellings Capital, is putting together a program where everybody who invest with us, we are attempting to free a slave for every new investor that comes in and then we're going to give those opportunity those investors access and opportunities to help that person, you know, get back on their feet, etc. So we're doing this through organizations, we're vetting. I mean, as a company, we've that real estate opportunities, but as a company, we are also now and as individuals, we're trying to also that the very most effective organizations who are getting this work done, and man really excited about being part of this.   Michael: Wow, that's really exciting. That's really, really exciting. Thank you for the work that you do. I mean, that's really incredible stuff. And so where can people learn more about how to combat the issue? you other than, of course investing with your company, what are some things setting steps that people can can take action on to help combat the issue?   Paul: Great question. So the first step I would take is I would go on YouTube or anywhere else online and find the movie Nefarious. Nefarious does a great job explaining the problem laying it out there demonstrating, you know, from videos around the world, from Las Vegas to Thailand, what is really happening.   Exodus was put out by an organization that I highly recommend people check out. It's called Exodus Cry. And that's Exoduscry.com, and you should be able to go there and learn all you need to to get started and fighting this.   Michael: Fantastic. Well, thank you. Thank you for that. That's, that's fantastic.   Paul: You bet.   Michael: And so to kind of wrap things up here, I know that you've written several books, and are quite an accomplished speaker, and you're involved with bigger pockets would love if you could share that the titles of your books with everybody listening?   Paul: Okay, great. I wrote a book on residential real estate in 2008. That's more localized here for Virginia. But I wrote a book called a very humble title about multifamily. I don't know what you think. But it's called the perfect investment. And we found out that the perfect investment isn't necessarily perfect if it's overpriced. And so be careful with that title, watch out for that guy. And then my new book coming out from bigger pockets publishing in October, is going to be called storing up profits, how to capitalize on America's obsession with stuff by investing in self storage.   Michael: Amazing, I love it. This seems to be an asset class is beginning a lot of attention. In the last couple of years.   Paul: It really is, you know, self storage and mobile home parks are getting, they're sort of like on the heels of multifamily for getting maybe too much attention. But this book is attempts to just lay it out for a beginner or for somebody who wants to invest in it remotely.   Michael: Okay, that You took the words right out of my mouth, I was gonna ask is this are these books great for beginners who are looking to learn about the asset class and about how they might be able to invest in it?   Paul: Yeah, both of the books are designed for people who want you know, it's as a beginning primer for somebody who wants to get into the asset class, but they also double as an opportunity for somebody who wants to find a great operator and invest with them. It's kind of given a baseline of knowledge, to know where and how to invest.   Michael: Awesome. Well, Paul, this was great, man, I so appreciate you coming on and taking the time to hang out with us. Any final thoughts for investors that are just getting started? And primarily in the single family space?   Paul: Yeah, I would, you know, so when I heard about single family investing, it was 2000. And I was kind of in this weird time, we had started a nonprofit organization here in Virginia. And we were trying to figure out next steps. And my friend, and I said, you know, what, we've learned a little bit about this, read a lot, you know, read a little bit, read some books, read, you know, done this and that, we need to go take action.   And so what we did is on December 20, 2000, we went to our first home auction on the courthouse steps of Martinsville, Virginia, there was snow, there was ice. And we didn't take any money because we said you know what, we're just not ready yet. We're not ready to jump in. We've got to just be careful. And so we went with no money at all. Well, we went and comped the house first. And we came to the conclusion it was worth $65,000. It looked like it was in perfect shape. We peeked in the windows of the vacant house. It didn't look like it needed anything that we could see.   And so we went to the auction, we said, of course, we didn't know what we were talking about. But we thought man, if this comes out anywhere, like 50,000 or below, it'd be amazing. What came out at like $33,000. And there was nobody else bidding on it. We didn't have any money, so we couldn't take action.   Well, we were able to manipulate. I mean, talk the auctioneer into going to Taco Bell for lunch while we ran into the bank and got a cashier's check. And we actually, we actually bought that house. And we had to give them you know, like $3400 down you know, it was about 10% down. And literally Michael Three weeks later in January, we put it back on the market and had a for sale by owner sign in the yard Monday at 8:30am. And we had a full price buyer for $65,000 by noon, and we were off to the races.   So I'd say this, if you've been studying this a while if you're just looking around kicking the tires, take action, jump in, get involved, because there's literally never been a better time that I know of to capture this incredible delta between inflation and low interest rates.   Michael: Love that a better time may have been 6000 years ago prior to that study, but a second to that.   Paul: That's right. Good. Good point.   Michael: Awesome. Well, Paul, thank you again for coming on. Really appreciate you. Sharing all your knowledge and wisdom with folks really appreciate you combating the fight against human trafficking, both really noble causes. And we look forward to I'm sure we'll chat with you again.   Paul: All right. Thanks, Michael.   Michael: Alrighty, everybody, that was our episode a big, big, big, big thank you to Paul. It was a lot of fun, learned a lot. We talked about some really great issues facing kind of humanity as a whole as well as real estate specifically, and we definitely look forward to having him on for future episodes. As always, if you'd like the episode, please feel free to leave us a rating or review wherever it is using your podcast. If you're checking us out on YouTube, hit the like and subscribe button at the bottom of your screen. And we look forward to see you on the next one. Happy investing

ArticlesGyromitra esculentaRichard CantillonJaekelopterusFollow us on the social medias!http://twitter.com/podofwonder & podofwonder at gmail dot comDanny: http://twitter.com/dannyplaysrpgs & http://dannymakesrpgs.itch.ioMorgan: http://instagram.com/morganthefae & http://twitter.com/morgan_the_faeEddie: http://instagram.com/monstersbyed & http://strangebuttruegames.com

The Daily Cast on Kilcullen Diary, a podcast to start Kilcullen's day on Friday the 14th of May 2021. Today's Person of Interest is Richard Cantillon, an Irish-born banker who made a killing in the 18th century on a speculative investment 'bubble', and later disappeared. Our Feature of the Day is again with the late Canon James Horan, this time his thoughts on the apparent apparitions and miracles underpinning the Marian shrine. We also nod to the stories of the day in our local and national online news outlets. Produced by Brian Byrne.

Jason Hartman talks about Richard Cantillon in the same breath as the Federal Reserve. What do these two have to do with each other right now? Go long on real estate! Investment Counselor, Adam, talks with Jason Hartman about how specific real estate markets are doing compared to markets in the Hartman Network. How much growth can you expect, and where should you put your money with such low inventory? Check It Out: jasonhartman.com/protect jasonhartman.com/sweethome jasonhartman.com/charlotte Key Takeaways: [1:20] 2021? Outlook looking good? [2:45] "The Cantillon Effect refers to the change in relative prices resulting from a change in money supply . The change in relative prices occurs because the change in money supply has a specific injection point and therefore a specific flow path through the economy." -aier.org [4:30] Go long on real estate, and stock up on these mortgages while rates are low!  [6:55] "Is this the roaring 20s?" Adam [10:30] How are markets doing in the Hartman Network right now? [17:00] How are Texas properties different as far as investing dollars? [19:00] Are inflation stats wrong today? [22:00] Let's take a look at inflation-induced debt destruction. Websites: jasonhartman.com/protect JasonHartman.com JasonHartman.com/properties Jason Hartman Quick Start Jason Hartman PropertyCast (Libsyn) Jason Hartman PropertyCast (iTunes) 1-800-HARTMAN

EPISODIO #27 UNETE AL PODCAS ES GRATIS El término emprendedor, viene del francés entrepreneur ,fue definido por primera vez por el economista anglo-francés Richard Cantillon como "la persona que paga un cierto precio para crear vender y/o revender un producto a un precio incierto, tomando decisiones acerca de la obtención y el uso de recursos, y admitiendo consecuentemente el riesgo en el emprendimiento". Inscribéte en el curso para emprendedores donde descubriras como inicar tu propio negocio, es fácil y es la guía definitiva para emprender. Aprovecha la oferta con precio especial para los primeros 50 compradores, solo por el mes de noviembre 2020. Dale al link de abajo y aprovecha el descuento.

Dan Oliver, Michael Oliver and Dr. Quinton Hennigh are this week's guests. Alasdair Macleod has often made the comparison of America's rapidly declining financial status with that of the French-originated South Sea Bubble. Similar to the U.S. stock market greed now, market greed in France ran unchecked until the system broke down. Then, for fear of his life, John Law the originator of the French get-rich-quick scheme had to sneak out of France disguised as a woman. But his partner Richard Cantillon, recognized the flaw in Law's dishonest scheme and sold short at the top of the market. The South Sea Bubble is clearly a warning to Americans to exit the current financial markets that are being fueled by the same Kool-Aid-drinking mentality as that of the 1720 South Sea Bubble. Michael returns to update us on his latest view on gold and silver and Quinton will update us on some amazing developments with Novo Resources in Western Australia.

Zitat aus Wikipedia: "Der #Cantillon-Effekt bezeichnet in der Ökonomie den Effekt, dass sich eine Erhöhung der (Giral-)Geldmenge (#Nettokreditvergabe) nicht automatisch gleichmäßig auf alle Bereiche einer Volkswirtschaft verteilt, sondern in Stufen, wobei manche Bereiche (insbesondere der Banksektor, andere staatsnahe Firmen, der Unternehmersektor und politisch begünstigte Gruppen) zuerst profitieren, während der Rest der #Volkswirtschaft später folgt oder gar nicht von der Geldschöpfung profitiert."

In Episode Twenty Three, Professor Richard van den Berg of Kingston University London joins Carlos, Scott, and Gerardo to talk about the life and times, and economic ideas of Richard Cantillon, the early 18th-century Irish-French economist, banker, and financial rapscallion.  Smith and Marx Walk into a Bar: A History of Economics Podcast is supported by the History of Economics Society: www.historyofeconomics.org  

Dr. Mark Thornton, our in-house Cantillon expert, joins the Human Action Podcast to discuss the contributions of this important proto-Austrian thinker. Cantillon may well have written the first true economic treatise, one which lays out a comprehensive theory of production, money, interest, value, method, and trade—almost 150 years before Menger's Principles. And along with the other French physiocrats, Cantillon gave us the concept of lassez-faire that later influenced Adam's Smith's invisible hand. If you want to understand economics today, and the precursors to the Austrian school, you need to know Cantillon and his work. Cantillon's An Essay on Economic Theory, edited by Mark Thornton. Free PDF available. A biography of Cantillon by Mark Thornton. "More on Cantillon as A Proto-Austrian" by Guido Hülsmann. Subscribe and listen to the Human Action Podcast on iTunes, YouTube, Stitcher, Soundcloud, Google Play, Spotify, or via RSS.]]>

Dr. Mark Thornton, our in-house Cantillon expert, joins the Human Action Podcast to discuss the contributions of this important proto-Austrian thinker. Cantillon may well have written the first true economic treatise, one which lays out a comprehensive theory of production, money, interest, value, method, and trade—almost 150 years before Menger's Principles. And along with the other French physiocrats, Cantillon gave us the concept of lassez-faire that later influenced Adam's Smith's invisible hand. If you want to understand economics today, and the precursors to the Austrian school, you need to know Cantillon and his work. Cantillon's An Essay on Economic Theory, edited by Mark Thornton. Free PDF available. A biography of Cantillon by Mark Thornton. "More on Cantillon as A Proto-Austrian" by Guido Hülsmann. Subscribe and listen to the Human Action Podcast on iTunes, YouTube, Stitcher, Soundcloud, Google Play, Spotify, or via RSS.

Dr. Mark Thornton, our in-house Cantillon expert, joins the Human Action Podcast to discuss the contributions of this important proto-Austrian thinker. Cantillon may well have written the first true economic treatise, one which lays out a comprehensive theory of production, money, interest, value, method, and trade—almost 150 years before Menger's Principles. And along with the other French physiocrats, Cantillon gave us the concept of lassez-faire that later influenced Adam's Smith's invisible hand. If you want to understand economics today, and the precursors to the Austrian school, you need to know Cantillon and his work. Cantillon's An Essay on Economic Theory, edited by Mark Thornton. Free PDF available. A biography of Cantillon by Mark Thornton. "More on Cantillon as A Proto-Austrian" by Guido Hülsmann. Subscribe and listen to the Human Action Podcast on iTunes, YouTube, Stitcher, Soundcloud, Google Play, Spotify, or via RSS.

McAlvany Weekly Commentary This week Antoin Murphy joins the program to discuss Richard Cantillon. To buy Antoin Murphy’s book “Richard Cantillon: Entrepreneur and Economist” CLICK HERE John Law – “Let’s just substitute paper money for gold… oops!” Richard Cantillon – “This Is A Bubble… Time To Take My Profit & Get Out” Mystery: Did Cantillon Really Die In […] The post The Biggest Bubble In The 18th Century & The Man Who Got Out In Time appeared first on McAlvany Weekly Commentary.

Richard Cantillon (1680–1734) was perhaps the most important and influential economist of all time, though as Mark Thornton explains, few people have ever heard of him. Murray Rothbard called him the founding father of modern economics. Cantillon was the world's first economic theorist, and in his treatise we find much of what we call economics today. He developed a scientific and positive methodology, performed thought experiments, and created the ceteris paribus assumption. Also in his work we find value theory, opportunity cost, price theory, and entrepreneurship theory. Mark Thornton describes in detail one of Cantillon's greatest achievements: the specie flow mechanism. Supplemental readings for Cantillon: English translation of Cantillon's An Essay on Economic Theory Chapter 12 of Rothbard's An Austrian Perspetive on the History of Economic Thought, Volume I Richard Cantillon: Economist and Entrepreneur by Antoin Murphy The Who Is? podcast is available on iTunes, Google Play, Stitcher, Soundcloud, and via RSS.

TAGS Austrian Economics OverviewAn Essay on Economic TheoryDECEMBER 31, 2014Robert F. HébertCantillon's Essai sur la Nature du Commerce en Général should be rightfully considered one of the most important books ever written. It is the first statement of economic theory and not just a single or limited breakthrough, but a comprehensive treatment that explains the organization of commercial society. Prior to Cantillon, writings about the economy were largely driven by considerations of religion, ideology, and interests groups. After Cantillon, there was a scientific model that could be understood and applied. Most importantly, when it was properly understood and applied, it unleashed the market economy and generated great prosperity (from the Introduction).This audio book is made available through the generosity of Mr. Tyler Folger. It is narrated by Millian Quinteros.Download audio fileREAD MORE

TAGS Austrian Economics OverviewAn Essay on Economic TheoryDECEMBER 31, 2014Robert F. HébertCantillon's Essai sur la Nature du Commerce en Général should be rightfully considered one of the most important books ever written. It is the first statement of economic theory and not just a single or limited breakthrough, but a comprehensive treatment that explains the organization of commercial society. Prior to Cantillon, writings about the economy were largely driven by considerations of religion, ideology, and interests groups. After Cantillon, there was a scientific model that could be understood and applied. Most importantly, when it was properly understood and applied, it unleashed the market economy and generated great prosperity (from the Introduction).This audio book is made available through the generosity of Mr. Tyler Folger. It is narrated by Millian Quinteros.Download audio fileREAD MORE

Dr. Mark Thornton is an economist who lives in Auburn, Alabama. Mark is Senior Fellow at the Ludwig von Mises Institute and serves as the Book Review Editor of the Quarterly Journal of Austrian Economics. Mark’s publications include The Economics of Prohibition; Tariffs, Blockades, and  Inflation: The Economics of the Civil War (2004), The Quotable Mises (2005),The Bastiat Collection (2007), An Essay on Economic Theory (2010), and The Bastiat Reader (2014). Dr. Thornton served as the editor of the Austrian Economics Newsletter and as a member of the Editorial Board of the Journal of Libertarian Studies. He has served as a member of the graduate faculties of Auburn University and Columbus State University. He has also taught economics at Auburn University at Montgomery and Trinity University in Texas. Mark served as Assistant Superintendent of Banking and economic adviser to Governor Fob James of Alabama (1997-1999), and he was awarded the University Research Award at Columbus State University in 2002. Mark is a graduate of St. Bonaventure University and received his PhD in economics from Auburn University. Economics Themes: In this interview, Mark mentions and discusses: Competition, Entrepreneurship, comparative economic systems, economic history, business cycles, value theory, population policy, purchasing power, deflation, monetary policy and bitcoins. Economists and Economic Schools: In this interview, Marina mentions: Ludwig von Miss, Friedrich Hayek, David Hume, Israel Kirzner, Carl Menger, Richard Cantillon, Friedrich von Wieser, Eugen von Böhm-Bawerk, Joseph Schumpeter, Fritz Machlup, Adam Smith, Anne-Robert-Jacques Turgot, Irving Fischer, Milton Friedman, Ben Bernanke, Scott Sumner, George Soros, Nassim Nicholas Taleb, Jim Rogers, Paul Krugman, Austrian Economics, Merchantilists, Physiocrats, French Liberals and Classical Economists. Find out: about the Greek and Roman philosophical roots of Austrian Economics. about the importance of deduction and logic in Austrian thinking. the limitations to Austrian Economic thinking. about Irish economist Richard Cantillon, who remains quite elusive in economics. who Richard Cantillon influenced through his writings. why the Austrian School of Economics is given its name. how von Mises' papers got in the hands of Nazi Germany and then the Soviets. whether von Mises or Irving Fischer was right about the 1929 Stock Market Crash and the subsequent Great Depression. who would support Bitcoins - von Mises or Fischer? why bitcoins were created. how similar bitcoins are with gold and the Gold Standard.To access the shownotes to this epsiode, visit www.economicrockstar.com/markthornton

From the session on "History of Economic Thought," presented at the Austrian Economics Research Conference. Recorded 21 March 2013 at the Ludwig von Mises Institute in Auburn, Alabama.

From An Austrian Perspective on the History of Economic Thought, Volume I. Pages 345-361 in the text. Narrated by Jeff Riggenbach.

Richard Cantillon was quite Misesian before Mises. He wrote of utility theory and the entrepreneur’s uncertainty in the 1970s. Cantillon was a great money practitioner. He became a bank and banker to the Jacobite Stuart line and to John Law who launched paper money inflation.Turgot became finance minister in 1774, but laissez-faire ideas failed. Turgot was Rothbard’s favorite character in the history of thought. He wrote well under time pressure. He wrote of wealth and capital theory and even of Austrian time preference theory and the law of diminishing returns.Cantillon and Turgot preceded Adam Smith, but were not mentioned by Smith. Smith made waste and rubbish of 2,000 years of economic thought. The French theorists were lost. Smith deviated from laissez-faire in practically everything. Malthus got his anti-population stuff from Smith.Hume was a great writer while a confused pre-Friedmanite thinker. He thought fractional reserve banking was fraud.John Stuart Mill originated much of the Ricardian system like the law of comparative advantage. Mill was one of the inventors of libertarian class analysis which proclaims that the only class conflict comes from the state. Mill and Marshall reestablish Ricardianism. That really ushers in the 20th century.The third in a series of six lectures on the History of Economic Thought.