For years, the world worried about overpopulation and our capacity to sustain ever-increasing numbers of people. Now, the worry is underpopulation—and recent numbers are stunning. Fertility rate is the average number of children that are born to a woman over her lifetime. According to the United Nations, this number is currently 1.64 in the U.S.: If it stays this way, in three generations there will only be half as many young Americans as there are today, holding immigration constant. In China, this number is even lower: one child per woman. Just eight countries are expected to account for more than half the rise in global population between now and 2050.Economic theory is based on the idea of expansion, and humanity has been expanding since 1500. If that is about to change, then the very foundation of our economic theory will need rethinking.Acclaimed author, historian, and filmmaker Sir Niall Ferguson (Stanford/Harvard) joins Bethany and Luigi to discuss why we're heading toward a global population decline and what it all means for civilization. They discuss how factors like climate change, immigration, reproductive rights, artificial intelligence, and the trade-offs women face between career and motherhood are influencing decisions to have children. What are the implications of falling birth rates not just for the market economy but also for geopolitics and intergenerational conflict? Can we reverse trends in fertility before it is too late?

While Americans rely on debit transactions for the necessities of life, most are unaware of the networks that drive those transactions, nor are they aware that one company, Visa, has monopolized debit transactions, penalized industry participants that seek to use alternative debit networks, and co-opted innovators, technology companies, and financial institutions to forestall or snuff out threats to Visa's debit network dominance.” So begins the monopolization lawsuit filed on September 24 by the United States Department of Justice (DOJ) against the country’s largest card company, Visa Inc.On one level, the case is simple: The DOJ alleges a clear violation of laws protecting markets against monopolies. But the case gets more complicated when looking at the details, in part because payment systems are mostly invisible part of the financial ecosystem. In effect, the DOJ alleges that Visa is pulling the levers of a really opaque and complex system to preclude competition and squeeze fees out of banks and vendors for itself.To understand the complexities and implications of the case, Bethany and Luigi are joined by Kathryn Judge, Harvey J. Goldschmid Professor of Law at Columbia University. Judge is an expert on banking, financial crises, regulatory architecture, and intermediation design beyond finance. Her book, Direct: The Rise of the Middleman Economy and the Power of Going to the Source (HarperBusiness, 2022), was on the long list for the Financial Times Business Book of the Year Award. Together, the three of them discuss both the surface-level and structural issues of an economy where consumers and small businesses are shortchanged on what is essentially a private sales tax on all debit-card purchases—and how to look for collective solutions when opt-outs aren’t possible.Episode Notes: Also check out the ProMarket article “A DOJ Victory Against Visa May Not Help Merchants or Consumers” by Lulu Wang, Assistant Professor of Finance at Northwestern University’s Kellogg School of Management.

As the United States elections draw near, everyone is wondering who will take control of Washington next. In this week’s Capitalisn’t episode, Pulitzer Prize-winning reporter Brody Mullins reveals how the real winner will be neither Democrats nor Republicans. Rather, it will be the lobbyists.Mullins is the co-author (along with his brother Luke, also an investigative reporter) of The Wolves of K Street: The Secret History of How Big Money Took Over Big Government. Brody joins Bethany and Luigi to discuss how corporations ranging from Genentech to Google participate in the invisible but massively influential lobbying industry to bend government policy toward their favor. Together, the three trace the roots and evolution of political lobbying from the 1970s to now and explore how it penetrates and leverages other spheres of society to abet its operations. How are academia and the media complicit in this ecosystem of influence operations? How has lobbying adapted to the changing attitudes of Americans towards Big Business? How might it change under either a Harris or Trump administration and beyond?Episode Notes: Luigi mentions the transformational work of one figure in American politics who fought back against lobbyists’ substantial influence: consumer advocate Ralph Nader. Revisit our prior conversation and episode with Mr. Nader.

You asked and we answered: Over the last year, we have solicited listeners’ questions via voicemail, email, and social media. In this episode, our producer, Matt, turns the tables on Bethany and Luigi and puts them in the hot seat to answer your burning questions in an Ask Me Anything “AMA” format.How do Bethany and Luigi actually define capitalism? Does universal basic income disincentivize work? Does the adoption of artificial intelligence mean we need to rethink economics? What would Bethany and Luigi do if they were president for a day? And perhaps the scariest one of all: does Luigi believe in taking time off?

Last week, United States presidential candidates Kamala Harris and Donald Trump delivered hour-long speeches outlining their economic policies for the country if they win in November. This week on a special episode of Capitalisn’t, Bethany and Luigi weigh in on the candidates’ economic proposals. What makes this discussion particularly urgent is that neither candidate is espousing a traditional Republican or Democratic platform. Further, despite the length of their respective speeches, there were few specifics. Instead, both candidates are running on "vibes" more than detailed manifestos. With just under five weeks to go before Election Day, Bethany and Luigi sift through the proposals around taxes, tariffs, price gouging, and the “Opportunity Economy,” helping us separate the substance from the slogans.

International technology policy expert, Stanford University academic, and former European parliamentarian Marietje Schaake writes in her new book that a “Tech Coup” is happening in democratic societies and fast approaching the point of no return. Both Big Tech and smaller companies are participating in it, through the provision of spyware, microchips, facial recognition, and other technologies that erode privacy, speech, and other human rights. These technologies shift power to the tech companies at the expense of the public and democratic institutions, Schaake writes.Schaake joins Bethany and Luigi to discuss proposals for reversing this shift of power and maintaining the balance between innovation and regulation in the digital age. If a "tech coup" is really underway, how did we get here? And if so, how can we safeguard democracy and individual rights in an era of algorithmic governance and surveillance capitalism?Marietje Schaake’s new book, “The Tech Coup: Saving Democracy From Silicon Valley,” is available here. Read an excerpt from the book on ProMarket here.

America’s universities have powered its economy by developing an educated workforce and producing transformative technology, including the internet and vaccines. They were seen as vehicles for social mobility; when veterans returned home from World War II, the newly enacted G.I. Bill compensated millions with paid college and vocational school tuition. However, universities today are bloated and expensive, losing the public's trust, and have become a battleground for controversial culture wars. Project 2025, the Heritage Foundation’s blueprint for a second Trump administration, plans significant cuts to university subsidies. A big battle is looming over the future of American universities.To shed some light on what this future might look like, Bethany and Luigi are joined by Hanna Gray, Distinguished Service Professor Emerita of History and President of the University of Chicago from 1978 to 1993 — a period marked by immensely challenging debates on free speech, financial constraints, and leadership decisions. Gray has written that the creation of the modern university “rested on a faith, pervasive in the post-war world, and the potential for education to create a better world, to produce both social mobility and a meritocratic society that would realize the true promise of democracy.” With her trademark humor, sharp wit, and unwavering resolve, she offers insights from her trailblazing experience into whether this promise is more unkept than kept and if faith will be enough for the modern university system to survive.Episode Notes: Read the Kalven Report on the University's Role in Political and Social Action here.

Is race a more consequential determinant of social mobility than class? How and under what circumstances do Americans move up the economic ladder?For years, Harvard economist Raj Chetty has leveraged big data to answer these questions. In his recent paper, Chetty and his team show that Black millennials born to low-income parents have more quickly risen up the economic ladder than previous Black generations, whereas their white counterparts have fared worse than previous low-income white generations. That said, Chetty finds little movement in or out of the top income brackets and that the income gap between Black and white Americans remains large.Chetty joins Bethany and Luigi to discuss these new insights as well as why mobility matters, what costs come in the pursuit of bolstering mobility, and how other factors such as parenting, gender, and social capital factor into the equation. What policies should America pursue, especially against the backdrop of the 2024 presidential election, where many conservatives argue that white working-class Americans are falling behind and liberals argue that Black and brown Americans continue to face systemic inequalities?Show notes:Revisit our Capitalisn't conversation with Oren Cass, who is mentioned by LuigiRevisit our Capitalisn't conversation on Chile, which is mentioned by BethanyCheck out related coverage on ProMarket, including a write-up by Raj Chetty and co-authors on "Lost Einsteins," mentioned in the episode

This week we're taking a quick summer break, but in the meantime, we wanted to re-share a special episode that is relevant in the news again. With the recent federal court ruling that Google engaged in illegal monopolization of internet searches, we thought it would be a great opportunity to share our episode with lawyer Dina Srinivasan. She's an expert in the field of competition policy and a fellow with the Thurman Arnold Project at Yale University. Google is no stranger to lawsuits and has previously defeated many of them, but now, antitrust experts are optimistic that this case against Google's advertising business is even stronger for the government than the Search case that Google lost just last week.To simplify the apparent complexity of the case and understand why and how it matters to consumers, the advertising market, the tech industry, and the economy, Luigi conducted a special bonus interview with Srinivasan. Following the interview, Bethany joins Luigi to discuss the implications of this case for consumer harm, the business model of journalism, democracy, and beyond.Read more on ProMarket: https://www.promarket.org/tag/google-ad-tech-case/ Watch: 2024 Antitrust and Competition Conference | Antitrust Case Studies: Google https://www.youtube.com/watch?v=Aw6-LaVh55U

Harvard professor of international political economy Dani Rodrik has long been skeptical of what he calls "hyperglobalization," or an advanced level of interconnectedness between countries and their economies. He first introduced his theory of the "globalization trilemma" in the late 1990s, which states that no country can simultaneously support democracy, national sovereignty, and global economic integration.At the time when he proposed his trilemma, Rodrik was considered an outcast. However, economists and policymakers have come to accept his theory as governments seek to address populism, trade imbalances, and uneven growth through renewed interest in industrial policy, or government efforts to improve the performance of key business sectors. Rodrik joins co-hosts Bethany and Luigi to discuss changing attitudes towards globalization: its distributional effects, how it affects politics, and how it is still searching for a narrative consistent between academic circles and the media. Together, the three of them discuss what role corporate America should play in our world restructured by economic and political populism and if economics is getting too far away from the rest of the social sciences when it comes to shaping industrial policy and creating the jobs of tomorrow.Show Notes:Read Rodrik's co-authored December 2023 paper on the "New Economics of Industrial Policy"Read an ebook by ProMarket on cutting-edge contemporary debates around industrial policy

In one of this year's bestselling books, "The Anxious Generation: How the Great Rewiring of Childhood is Causing An Epidemic of Mental Illness," New York University social psychologist Jonathan Haidt argues that today's childhoods spent under the influence of smartphones and overprotective parenting has led to the reported explosion in cases of teenage anxiety and depression. He calls this process a "three-act play": the diminishment of trust in our communities, the loss of a play-based childhood, and the arrival of a hyper-connected world.Haidt also believes the problem is solvable. On this episode of Capitalisn't, he joins Bethany and Luigi to discuss parenting, learning, adolescence, and in an age where Congress won't act on regulation, his four proposed solutions to break social media's "collective action trap" on children.But are his solutions feasible? How do we weigh their costs, benefits, limitations, risks, and the roadblocks to their implementation? What are the consequences of an anxious generation for our economy — and what can we really do about it?Read more about Haidt's work here: https://www.anxiousgeneration.com And follow his Substack here: https://www.afterbabel.com

If democracy is a social contract, why don’t we allow everybody who is willing to sign it? Why don’t we have open borders for immigration?In their book "Streets of Gold: America's Untold Story of Immigrant Success," Princeton University’s Leah Boustan and Stanford University’s Ran Abramitzky provide insights from big data to explore how immigration shaped the United States by looking at the economic legacies of immigrants and their children. On this week’s encore episode, hosts Luigi Zingales and Bethany McLean talk with Boustan to unpack how immigrants and their progeny have impacted jobs, wages, and housing prices for native-born Americans. Conversely, how do immigrants’ countries of origin overcome obstacles to socioeconomic change when many of their most-motivated citizens leave? Can data move the U.S. immigration debate beyond the current border crisis?

In the last 60 years, few economists have contributed more to exposing the failures of capitalism than Joseph Stiglitz. Formerly the chief economist of the World Bank and chair of the U.S. Council of Economic Advisers under President Bill Clinton, Stiglitz won the Nobel Prize in Economics in 2001 for his work showing that the possibility of having different information can lead to inefficient market outcomes.On this episode of Capitalisn't, Stiglitz joins Bethany and Luigi to discuss his latest book, "The Road to Freedom: Economics and the Good Society" (W.W. Norton, 2024). The book, as Bethany describes it, is a "full frontal attack on neoliberalism" that provides a prospective roadmap towards a more progressive form of capitalism. Together, the three discuss the role of mis- and disinformation in producing market inefficiencies, the importance of regulation, institutional accountability, and collective action in correcting market failures, and the role of neoliberalism in today's global populist uprising. In the process, they underscore the close link between economic and political freedom.

Is the famed American Dream still attainable for the immigrants and working class of today? What made America the land of opportunity — and if it isn't the same anymore, what happened to it?Joining co-hosts Bethany and Luigi to discuss these questions is David Leonhardt, Pulitzer Prize-winning journalist and author of "Ours Was the Shining Future." In his book, Leonhardt describes what he calls today's "rough-and-tumble" capitalism and distinguishes its laissez-faire characteristics from a more bygone, democratic version. Charting shifts in manufacturing, labor power, and the perennial tension between immigration and wages, Leonhardt and our hosts deliberate over the ramifications of this story for progressive and populist movements in a tumultuous election year and offer potential pathways to rekindle the promise of prosperity and upward mobility.

Critics of the food industry allege that it relentlessly pursues profits at the expense of public health. They claim that food companies "ultra-process" products with salt, sugar, fats, and artificial additives, employ advanced marketing tactics to manipulate and hook consumers, and are ultimately responsible for a global epidemic of health ailments. Companies are also launching entirely new lines and categories of food products catering to diabetes or weight management drugs such as Ozempic.Marion Nestle, a leading public health advocate, nutritionist, award-winning author, and Professor Emerita at New York University, first warned in her 2002 book "Food Politics" that Big Food deliberately designs unhealthy, addictive products to drive sales, often backed by industry-funded research that misleads consumers. This week on Capitalisn't, Nestle joins Bethany and Luigi to explore the ultra-processed food industry through the interplay of four lenses: the underlying science, business motives, influencing consumer perceptions, and public policy.

Over the last few weeks, university politics has captured headlines as students across the country occupy sections of their campuses and demand that their schools divest from Israel in protest of its contentious war in Gaza. Last week for Compact Magazine, Luigi and Nobel Laureate Oliver Hart stressed that one lesson from these protests is that universities need to make transparent their investment strategies and how they contribute to the school’s financial operations, including financial aid.Increased transparency can inform ethical debates about divestment, but can it solve them? Even if students get what they want, will it matter? Or should they be focusing their efforts elsewhere to maximize impact? Who gets to make the decisions about the ethics of college endowment investments, and how should votes be divided between different stakeholders — students, faculty, alumni, and donors? This week on Capitalisn’t, Bethany and Luigi record a late-breaking episode tackling these foundational questions that underlie the governance of today's universities.

The meteoric rise of private credit over the last decade has raised concerns among banks about unfair competition and among regulators about risks to financial stability. Historically, regulated banks have provided most of the credit that finances businesses in the United States. However, since the 2008 financial crisis, banks have restricted their credit lines in response to new regulations. In their place has arisen private credit, which comprises direct (and mostly unregulated) lending, primarily from institutional investors. Estimates peg the current size of outstanding private credit loans in the U.S. at $1.7 trillion.Private credit loans aren't traceable, and there are incentives to lend to riskier borrowers in the absence of regulation. This could lead to catastrophic spillover effects in the event of a financial shock. This week, Bethany and Luigi sit down with Jim Grant, a longtime market and banking industry analyst, writer, and publisher of Grant's Interest Rate Observer, a twice-monthly journal of financial markets published since 1983. Together, they try to answer if private credit is in the public interest.

"The only true aging is the erosion of one's ideals," says Ralph Nader, the former third-party presidential candidate who just turned 90 after more than 60 years of consumer advocacy and fighting for small business in America. From influencing the transformative passage of car safety legislation to advancing numerous environmental protection and public accountability causes, Nader has fought against the proliferation and insinuation of corporate power in our government.In between all of that, Nader has also found the time to develop a prolific writing career. In this week’s episode, Nader joins Bethany and Luigi to discuss his new book, "Rebellious CEO: 12 Leaders Who Got It Right." The three talk about the possibilities of ethically profitable business, Nader’s lifelong pursuit of justice, his views on the state of capitalism today, the political disillusionment of the public, and how we can reclaim democratic control of capitalism.

Given the recent mass layoffs, acceleration of media consolidation, continued decline of local journalism, and rapid uptake of generative AI, the news industry—fundamental to institutional accountability in capitalist democracies—appears to be in deep crisis. Joining Bethany and Luigi to make the case that journalism can not only survive but thrive is Ben Smith, longtime journalist, former New York Times media columnist, co-founder of global digital news publication Semafor, and the author of "Traffic: Genius, Rivalry, and Delusion in the Billion-Dollar Race to Go Viral."How much of today's state of journalism can be attributed to mistakes and how much to inevitability? Where does the marriage between social media and news go next? How can journalism remain financially viable? Offering a nuanced perspective on the opportunities and pitfalls facing the news industry today, the three of them discuss the future of journalism in the age of clicks and a path back to a media landscape that informs, educates, and holds power to account.

Perhaps the biggest evidence that capitalism in America doesn’t work, at least not for everyone, is growing income inequality and the persistence of poverty. But what is the current state of poverty and inequality in the United States? Why do debates still persist about whether poverty has been eradicated? What do the numbers and official statistics tell us, and should we believe them? What do personal stories and experiences with poverty tell us that data cannot? If poverty has indeed been eradicated, what led to that achievement – and if it still persists, what more can be done to abolish it?Last year on this podcast, we did a series about this topic, and we found these episodes to be surprising and more informative than most of the debates about poverty you’ll hear on the news. So, we wanted to condense that series down into a single episode that captures all of the highlights. The first speaker is former U.S. Senator Phil Gramm (R-TX), who argues in his recent book, "The Myth of American Inequality," that poverty is vastly overstated because official government data does not include transfer payments. The second is Princeton sociologist and Pulitzer Prize-winning author Matthew Desmond, who argues in his recent book, "Poverty, by America," that poverty is a terrible scourge, that we have made no progress, and that it is a moral outrage.The result is a nuanced, surprising, and informative debate on a multifaceted but important issue – leaving our hosts, as well as, by extension, our listeners – to formulate their own takeaways on what we can all do about them.Episode notes:Listen to the complete conversation with Sen. Phil GrammListen to the complete conversation with Dr. Matthew Desmond

In his recent book, "The Problem of Twelve: When a Few Financial Institutions Control Everything," Harvard law professor John Coates sheds light on the secrecy, lack of public accountability, concentrated power, and the disproportionate influence of a select few institutions in our financial system.Coates joins Bethany and Luigi to dissect the potential dangers of this era of financial consolidation and explore possible solutions, including accountability and transparency, to ensure a more equitable economic system. Specifically examining the "Big Four" index funds (Vanguard, State Street, Fidelity, and BlackRock) — that collectively hold more than twenty percent of the votes in S&P 500 companies — and the transformative rise of private equity funds, they discuss the challenges posed by concentrated financial power and its impact on markets, economies, and society at large. Show Notes:Read an excerpt of Coates' book (Columbia Global Reports) on ProMarketRevisit our earlier conversation with Hélène Landemore, referenced by Luigi in this episode"The book is available via Columbia Global Reports."    

The Wall Street Journal wrote that “Wall Street's best-known bear is going into hibernation" after the legendary short seller Jim Chanos announced he would close his main hedge funds late last year, in part due to diminishing interest in stock picking. Short selling, which bets on drops in asset prices, wins when companies and governments fail and has gained a predatory reputation over the years. Just last week, the China Securities Regulatory Commission vowed "zero tolerance" against what they called "malicious short sellers," according to Reuters.One of our listeners wrote to Bethany with this question: “What does it say about capitalism if Jim Chanos can’t find enough investors willing to profit from its frauds, fads, and failures, not to mention the competitive forces that are necessary for a functioning market? Is short selling dead?” To discuss this, Luigi and Bethany sat down with Chanos himself, who has been cast as the “Darth Vader of Wall Street,” the “Catastrophe Capitalist,” and the “LeBron James of short selling.” Together, they discuss the relationship between short sellers and our information environment, the fallout from the "meme stock" craze, the effects of the Federal Reserve’s interest rate policies, and how short selling can contribute to market efficiency and resilience. Do short sellers play a positive role by uncovering corporate fraud, mismanagement, and systemic risks? What safeguards are necessary to prevent short-selling abuse and ensure fair and transparent markets?

According to the latest industry statistics, the global influencer economy grew from $1.7 billion in 2016 to $21.1 billion in 2023 — and it's only expected to grow exponentially from here with advances in artificial intelligence. In 1988, Noam Chomsky and Edward S. Herman investigated how mass media sways audiences to conform to social norms without coercion, or what they called “manufacturing consent.” In her new book, “The Influencer Industry: The Quest for Authenticity on Social Media,” Dr. Emily Hund investigates how social media influencers have manufactured a new media economy to which we’ve unwittingly consented.Hund, a research affiliate at the Center on Digital Culture and Society at the University of Pennsylvania’s Annenberg School for Communication, joins Bethany and Luigi to unpack this new digital landscape where influence has become a powerful currency, shaping not only news consumption and consumer behavior but the very fabric of modern capitalism. Together, they discuss whether influencers are empowered entrepreneurs rewriting market rules or victims of a system that commodifies identity. What are the hidden incentives driving influencer messaging and, thus, the news and content we receive?Read an excerpt from Hund's book (Princeton University Press, 2023) on ProMarket.

It's been nearly 16 years since the federal government bailed out Wall Street to the tune of $700 billion in response to the financial crisis that precipitated the Great Recession. The idea that the public must guarantee critical financial institutions that are “too big to fail” was controversial then, but does it still remain an issue? Stanford finance professor Anat Admati, whom the New York Times profiled in an article titled "When She Talks, Banks Shudder," argues it’s become worse.Admati joins Bethany and Luigi to discuss the updated edition of her and Martin Hellwig’s book, The Bankers' New Clothes: What’s Wrong with Banking and What to Do About It. Dissecting new financial developments, including the failure of Silicon Valley Bank, the crypto industry, and shadow banking, Admati lays bare how the current financial system is rigged for the benefit of the few. She also prescribes how we can build and regulate a fairer and more accountable financial system and, thus, a more stable and equitable capitalist economy.Show Notes:Read the 2024 preface of The Bankers' New Clothes on ProMarket.Revisit our 2019 conversation with Anat and Chicago Booth Professor Guy Rolnik, exploring the reasons why market and policy may fail in finance and technology and what we must do to address such failures.Read Anat's contributions to our e-books on George Stigler and Milton Friedman.

After two seasons and 163 episodes, Capitalisn’t hosted its first-ever live event late last year. As part of the University of Chicago Podcast Festival, co-host Luigi Zingales fielded questions from three UChicago undergraduate students — Surya Gowda, Mete Bakircioglu, and Giuseppe Di Cera —and an in-person audience in an “Ask Me Anything.” From the evolution of competition policy to the impact of greener energy sources on prices, from the challenges of regulating the shadow economy to Luigi's struggles with his favorite soccer team, here is our “Ask Me Anything” episode.If you wish to submit your own question for our forthcoming mailbag episode, please do so here. https://www.speakpipe.com/Capitalisnt

The firing, and subsequent rehiring, of OpenAI CEO Sam Altman raises fundamental questions about whose interests are relevant to the development of artificial intelligence and how these interests should be weighed if they hinder innovation. How should we govern innovation, or should we just not govern it at all? Did capitalism "win" in the OpenAI saga?Bethany and Luigi sit down with Luigi’s colleague Sendhil Mullainathan, a professor of Computation and Behavioral Science at Chicago Booth. Together, they discuss if AI is really "intelligent" and whether a profit motive is always bad. In the process, they shed light on what it means to regulate in the collective interest and if we can escape the demands of capitalism when capital is the very thing that's required for progress.

After discussing the trajectory of China's economy earlier this year, Luigi and Bethany turn their attention to the future of another global economic behemoth: India. Joining them is renowned Indian economist Raghuram Rajan, who has a brand-new book out this week, "Breaking the Mould: Reimagining India's Economic Future" (co-authored with Rohit Lamba).In "Breaking the Mould," Rajan and Lamba make the controversial and counterintuitive argument that India should follow an economic development path that is based not on manufacturing, as China has done, but rather on services. In this conversation, we discuss why India's strengths play to services-based development, how India can deal with the economic and educational inequality created by its past, how Western business should engage with India, and why democracy is critical to India's future economic success.We think his perspectives are important for Indian citizens and policymakers, but also for global citizens and policymakers given the critical role India will play in shaping the world of the future. 

After previously exploring the worlds of 'consultants for sale' and 'scientists for sale,' Luigi and Bethany turn their attention to another broken system of 'enablers' - the world of lawyers for sale. With award-winning investigative journalist David Enrich, they discuss David's latest book, "Servants of the Damned: Giant Law Firms, Donald Trump, and the Corruption of Justice." Enrich presents several case studies showing how 'Big Law' firms have used their wealth and influence to capture the justice system, serving the interests of their wealthy clients at the expense of ordinary Americans. With Bethany and Luigi, he discusses: How can we restore the integrity of our legal institutions? What are the broader implications for the rule of law in a society dominated by economic and political interests?Show Notes - also revisit:The Capitalisn't of Consulting: McKinsey and Beyond, with Walt BogdanichScience for Sale, with David Michaels

In his new book "Number Go Up," Bloomberg News investigative reporter Zeke Faux takes readers on a wild ride through the world of cryptocurrency, from its origins in the dark corners of the internet, its meteoric rise to mainstream popularity, and finally its equally precipitous fall. A few days after the 'convicted' verdict in the trial of beleaguered crypto entrepreneur Sam Bankman-Fried (SBF), Faux joins Bethany and Luigi to make a case for why we should judge cryptocurrency by what it has done and not what it can do. They discuss whether it is too soon to write crypto off, what larger commentary it offers about capitalism, and why Luigi, who teaches a popular MBA course on fintech, feels "crypto is money that can only be created by computer scientists who don't understand history."Show Notes: Revisit a 2017 Stigler Center mini-course by NYU Stern Professor David Yermack on the potential implications of blockchain technologies on the future of finance.

In his new book, Sohrab Ahmari argues that the concentration of economic power in the hands of a few corporations has created a new form of tyranny in America. "Coercion is far more widespread in supposedly noncoercive societies than we would like to think—provided we pay attention to private power and admit the possibility of private coercion," he writes.Ahmari, founder and editor of Compact magazine, joins Bethany and Luigi to discuss his book, "Tyranny Inc.: How Private Power Crushed American Liberty--and What to Do About It."  In this episode, they discuss the complex relationship between capitalism, personal freedoms, and political power. The conversation sheds light on what classical liberalism ignores, how today's Right is discovering what the Left may have forgotten, and ultimately, where today's political Left and Right may be able to work together.Show Notes: Also check out two previous episodes mentioned in this conversation:Is Common Good Capitalism The Answer? With Oren CassA Conservative Critique Of Capitalism, With Patrick Deneen

In her brand new book, "The Big Fail: What the Pandemic Revealed About Who America Protects and Who It Leaves Behind," Bethany and her co-author Joe Nocera argue that the COVID-19 pandemic was not simply a natural disaster but also a man-made one.Based on rigorous research and compelling storytelling, Bethany, who is renowned for her incisive reporting, reveals uncomfortable truths that have emerged from the pandemic about capitalism, inequality, and corporate power. In this one-on-one conversation with Luigi, she dissects the policies, decisions, and systemic structures that exacerbated the pandemic's fallout for the most vulnerable in society, shedding light on who benefited and who was left to fend for themselves.

How does science become public policy? It's not always as straightforward as it might seem. In his book "The Triumph of Doubt: Dark Money and the Science of Deception," leading public health expert and former Clinton/Obama administration official David Michaels shows how corporate interests often "manufacture uncertainty" in order to protect their profits. Using wide-ranging case studies from Big Tobacco, Volkswagen, American football, and talcum-based baby powder, Michaels exposes the disinformation playbook deployed by corporate-funded science to sow "doubt, denial, delay, distraction, deflection, and defense." With him, Bethany and Luigi discuss how we can fight back against manipulated science and replace the triumph of doubt with the triumph of truth.Show Notes: Also, check out our previous episode on the "Capitalisn't of Consulting" and the case of McKinsey, mentioned by Luigi in this episode.

In his new book, Regime Change: Toward a Postliberal Future, renowned political philosopher Patrick Deneen argues that the liberal ideology that has shaped capitalism for centuries has also failed to deliver on its promises of freedom, equality, and prosperity. Is he able to offer a compelling alternative that serves the interests of the common good over those of wealthy elites?Deneen, whose previous book "Why Liberalism Failed" was acclaimed by the likes of former U.S. President Obama, joins Bethany and Luigi to discuss his proposed 'Regime Change' and its implications for capitalism and the market economy. Can his vision of a postliberal future offer a more just and sustainable economic system, one that addresses the pressing challenges of our time? Can we have progress without progressivism?

As companies become increasingly big through mergers and acquisitions -- especially in technology, health care, and several other industries -- how should rules and regulations change with the times?Freshly minted and hot off the press: The U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) recently released an updated set of draft "Merger Guidelines," which could reshape the landscape of corporate mergers and acquisitions both in the U.S. and globally. Esteemed Stanford professor and Chief Economist at the DOJ's Antitrust Division, Susan Athey, joins Bethany and Luigi to discuss these changes. Why did the DOJ and FTC make them? How will they impact the way companies approach mergers and acquisitions? And what do they mean for consumers, competition, labor, and the broader economy?Show Notes:Visit our ongoing online symposium on the Merger Guidelines, with a wide range of perspectives and debates from leading experts on the topicHear more from Susan Athey at our 2023 Antitrust and Competition Conference

Is there a fundamental tension between democratic freedom, economic growth, and social equality?Chilean economist and UCLA Professor Sebastian Edwards joins Bethany and Luigi to discuss his recent book, "The Chile Project: The Story of the Chicago Boys and the Downfall of Neoliberalism." The Chicago Boys were a group of free-market economists trained at the University of Chicago who shaped economic policy and reforms in Chile during General Augusto Pinochet's rule. In the book, Edwards (who also received his Ph.D. in economics from the University of Chicago in 1981) outlines the complexities of implementing market-oriented policies in a society undergoing rapid change. With him, Bethany and Luigi discuss: Could the Chilean experience offer lessons for other nations grappling with similar policy choices?We’d like to thank our former Journalist in Residence, Rodrigo Cardenas (Editor at Chilean publication La Tercera), for his continued engagement with the Stigler Center. Upon our request, Rodrigo kindly submitted a couple of insightful questions for consideration in this interview.Show Notes:Read an excerpt from Edwards' book on ProMarket.In conversation with Sebastian Edwards, Arnold C. Harberger reflects on his time at the Department of Economics at the University of Chicago.Also read "The Complicated Legacy of the "Chicago Boys" in Chile," by Chilean journalist and former Stigler Center Journalist in Residence, Daniel Matamala.

A wet hot antitrust summer is in the news, mainly because of the Biden administration appointees continuing to take an aggressive approach to enforcement. Why is this important, and how has antitrust thinking evolved over time? In this conversation, Bethany and Luigi draw from his long-standing research and from the Stigler Center's most recent antitrust conference exploring new paradigms of traditional economic ideas. Together, they trace the evolution of antitrust from its fraught foundations to today's version, shaped by decades of political, economic, and legal minds. In the process, they spell out what a changing antitrust landscape could mean for us all.Show Notes:Read a summary of the antitrust conference on ProMarketWatch the panel hosted by Luigi, which he references in the episodeRevisit our episode from last year on recent research by Luigi and co-authors on declining antitrust enforcement in the U.S.

Republican presidential candidates, such as Ron DeSantis and Vivek Ramaswamy, continue to keep ESG in the national conversation. Ramaswamy in particular called it "woke capitalism" in his book and on our podcast. As we take our summer break, we decided to re-release our conversation with Tariq Fancy, BlackRock’s former global chief investment officer for sustainable investing, whose criticism of ESG is based not on its goals, but rather on an insider's knowledge of how it actually works.We’re taking a short summer break as we put together some fascinating episodes on the past and future of antitrust, the shortcomings of neoliberalism, and whether science and law are for sale in our capitalist system. In the meantime, we thought we might re-share some of our most thought-provoking episodes that are still relevant, maybe even more relevant, today. I hope you get as much out of it on a second listen as we did, and we’ll be back with brand new episodes soon. Thanks for listening. Link to our interview with Ramaswamy: https://podcasts.apple.com/is/podcast/is-woke-capitalism-a-threat-to-democracy/id1326698855?i=1000543737590

In the last episode of our podcast, we had a mini version of a never-ending debate on this show: whether private equity is good or bad. Afterward we talked about doing a full episode debating the pros and cons of PE until we realized, we’d already done it. The debate features Jeff Hooke, author of the book "The Myth of Private Equity," and Chicago Booth Professor Steven Kaplan, once referred to by Fortune Magazine as "probably the foremost private equity scholar in the galaxy."We’re taking a short summer break as we put together some fascinating episodes on the past and future of antitrust, the shortcomings of neoliberalism, and whether science and law are for sale in our capitalist system. In the meantime, we thought we might re-share some of our most thought-provoking episodes that are still relevant, maybe even more relevant, today. Our prior debate on private equity seemed like the perfect place to start. I hope you get as much out of it on a second listen as we did, and we’ll be back with brand new episodes soon. Thanks for listening.  

How can public policy improve upon and fix the mess of U.S. health care? In a new book, health economists Amy Finkelstein (MIT) and Liran Einav (Stanford) argue that's the wrong question. Instead, they suggest we ask: What is it that U.S. health policy should try to accomplish?Finkelstein, also a MacArthur Genius grantee, joins Bethany and Luigi to discuss health care as a social commitment and to make the case for free, automatic, and universal coverage for a basic set of medical services. She argues why the current patchwork system of incremental reforms isn't the answer, why insurance is not the lever to reduce racial disparities in health inequality, and why we must “tear down the system and build from the ground up.”Finkelstein and Einav's new book, "We've Got You Covered: Rebooting American Health Care," is out now.Show Notes: On ProMarket, read:Lowering the Barriers to Entry for Economics Research in Healthcare, by Filippo LancieriRethinking How To Achieve Universal Health Care Coverage in the U.S., by Katherine Baicker, Amitabh Chandra, and Mark ShepardMore Than 20 Years of Consolidation Have Led to a Dysfunctional Health Care Market, by Martin GaynorThe Secret Driver of U.S. Health Care Costs: Politicians Wanting to Get Reelected, by Asher Schechter

"Poverty will be abolished in America only when a mass movement demands it," writes Princeton sociologist and Pulitzer Prize-winning author Matthew Desmond in his new book, "Poverty, by America." Building on his own lived experiences of growing up poor and continued contact with impoverished communities that "forces [him] to be intellectually honest," he claims that poverty persists in America not because we are incapable of preventing it but because society - and especially the wealthy - benefits from it at the expense of the poor.Bethany and Luigi draw from their recent conversation with former U.S. Sen. Phil Gramm, who argued against the premise altogether and said that poverty in America is not as terrible a "scourge" as many like Desmond claim it to be. With Desmond, our hosts discuss his views on the complex and deeply entrenched root causes of poverty, its relationship with the American capitalist system, and how we could build on individual choices - towards which we have otherwise been so stubbornly resistant - to end poverty.Show Notes:In case you missed it, here's Bethany and Luigi's conversation with Sen. Phil Gramm: "Is American Inequality a Myth?"Read related reading on ProMarket: "Monopolies: Silent Spreaders of Poverty and Economic Inequality" and a conversation with Nobel Prize-winning economist Angus Deaton on "The Under-Discussed Driver of Inequality in America."

Thank you to our listeners for the feedback and engagement on last week's episode with former U.S. Senator Phil Gramm. Sen. Gramm was also one of the co-sponsors of the Gramm–Leach–Bliley Act of 1999, which removed part of the Depression-era law separating investment banking from commercial banking, among others. Bethany and Luigi couldn't pass the opportunity to ask the senator about his views on a possible line from his legislation to the 2008 financial crisis and the recent SVB banking meltdown. We hope you enjoy this bonus Capitalisn't segment.In case you missed it, here's our full conversation with Sen. Gramm: https://capitalisnt.simplecast.com/episodes/poverty-and-inequality-in-america-part-1-with-sen-phil-grammAlso, check out ProMarket's extensive coverage on the recent banking crisis: https://www.promarket.org/2023-banking-turmoil/

In his recent book "The Myth of American Inequality," former U.S. Senator Phil Gramm (along with co-authors Robert Ekelund and John Early) challenges conventional wisdom on the state of income inequality in the United States. Gramm argues that the gap between the rich and the poor is not as wide as often claimed because it is measured incorrectly, thus biasing public policy debates. On this episode, he joins Bethany and Luigi to discuss the data and evidence behind his claims, as well as implications on the pursuit of equality of opportunity, the "war on poverty," and the role of government in shaping economic outcomes. This is the first of a two-part series on poverty and inequality in America. Stay tuned for a forthcoming episode with sociologist Matthew Desmond for a perspective opposite from Sen. Gramm and his co-authors.Bonus: While in Congress, Sen. Gramm was one of the sponsors of the Gramm-Leach-Bliley Act of 1999, a piece of legislation that some consider to have significant ramifications on both the 2008 financial crisis and a direct line to the recent SVB banking meltdown. Keep an eye out on our handle @StiglerCenter on Twitter, Instagram, and YouTube for additional Capitalisn't content on this topic.

What if we harnessed the collective wisdom of the crowds and delegated democratic leadership to the masses?In her book "Open Democracy: Reinventing Popular Rule for the 21st Century", Yale political scientist Hélène Landemore proposes a radically new vision for "what genuine democratic representation means and how we could open up our narrow electoral institutions to ordinary citizens, including via [what she calls] open mini-publics." Drawing from ancient Athenian democracy of the past and the promise of harnessing digital technologies of the future, she joins Bethany and Luigi to talk through this vision of participatory democracy. They discuss how to best harness human nature for agency and impact, ensure transparency to provide accountability in the face of private vested interests, and ultimately its implications for market capitalism.

In his new book, "Power and Progress: Our 1000-Year Struggle Over Technology and Prosperity", renowned MIT Professor of Economics Daron Acemoglu (with co-author Simon Johnson) argues that the benefits from technological progress are shaped by the distribution of power in society. In this episode, Acemoglu joins Bethany and Luigi to discuss the key challenges of ensuring that this progress benefits everyone, not just the wealthy and powerful. They discuss the rules, norms, and expectations around technology governance, the unintended consequences of AI development, and how the mismanagement of property rights, especially over data, can reinforce inequality and exploitation.Show Notes:In case you missed it, revisit our recent episode with David Autor, referenced in this discussionRevisit "Democracy and Economic Growth: New Evidence," co-authored by Daron Acemoglu, on ProMarket

On this episode, our hosts Bethany McLean and Luigi Zingales sit down with renowned MIT economist David Autor to discuss the impact of technology, labor markets, and immigration on wage inequality and the economy at large. Autor is best known for his work on the "China Shock," the impact of rising Chinese exports on manufacturing employment in the United States and Europe after China's accession to the World Trade Organization in 2001. His most recent work sheds light on which groups have seen the largest nominal wage gains during the COVID recovery, the connections between wage growth and inflation, and more. Autor discusses how advances in technology have disrupted traditional labor markets, how to make better policy choices about the future of work, and the challenges and benefits of immigration in a globalized economy.Show Notes:Revisit our conversation with R. Glenn Hubbard, which is referenced in the interview with David AutorRead the Autor's paper discussed in the episode here.

It is hard to think of an idea more central to capitalism than economics, particularly economic efficiency. Similarly, public policy is now — and has been for a while — conducted in the language of budgets, models, and cost-benefit analyses. But how accountable is this idea to the public?Elizabeth Popp Berman is a sociologist and historian of economic thought at the University of Michigan and the author of the new book "Thinking Like An Economist: How Efficiency Replaced Equality in U.S. Public Policy." In this episode, she joins Bethany and Luigi to discuss this history of economics as a pervasive influence in the halls of political power in Washington and the challenges of believing in economic models as "truth" in an increasingly complex world. Using case studies in health care, debt forgiveness, pandemic economic recovery, and beyond, the three of them debate whether there are spheres of public and political life where economics has overstepped its bounds and if it belongs there altogether.

Several questions continue to swirl around the collapse of Silicon Valley Bank and its larger implications. In this special episode, Chicago Booth’s Raghuram Rajan – former Governor of the Reserve Bank of India and IMF Chief Economist – joins Bethany and Luigi to explore the risks in the financial system and possible solutions.Rajan discusses a paper he presented (with NYU Professor Viral Acharya) at the Federal Reserve’s Jackson Hole conference in 2022, arguing that the Fed’s liquidity provision left the financial sector more sensitive to shocks, and suggesting that the expansion and shrinkage of central bank balance sheets involves tradeoffs between monetary policy and financial stability. Together with the hosts, Rajan discusses the path forward on inflation, given economic and political pressures, and his recommendations on how to manage risks and tradeoffs.Link to the advertised Chicago Booth Review podcast:https://www.chicagobooth.edu/review/podcast?source=cbr-sn-cap-camp:podcast23-20230320Check out ProMarket's ongoing coverage of the recent banking turmoil, including a summary of Raghuram Rajan's paper and new research by Luigi, referenced towards the end of the episode, on the new dangers of ‘bank walks.’

Read ProMarket's ongoing coverage of the Twitter Files, including the research summary of the Twitter Files prepared by Stigler Center Research Professional Utsav Gandhi in preparation for this episodeRead the Stigler Center's 2019 Report on Digital Platforms, addressing many of the underlying issues discussed in this episode: trust and transparency in social media, business models of journalism, platform regulation when it comes to content moderation, and more.

We had initially prepared an entirely different episode for today, but last week's Silicon Valley Bank collapse, the largest in U.S. history since 2008, meant a quick change of plans.What happened? What is unique about this bank run, and what isn't? How much should regulators be blamed, and how much should bank management be? Do social media and today's frantic digital environment mean this is the end of banking as we know it?Luigi and Bethany talk to two experts with unique insights into the crisis: Chicago Booth Professor Douglas Diamond, who won the 2022 Nobel Prize for his decades-long work on bank runs, and Eric Rosengren, former Boston Fed President, for his view as a regulator. They discuss the factors that led to the collapse, including risky lending practices, lack of oversight, and the challenges of regulating the rapidly evolving world of banking. They also explore the broader implications of the collapse, including the impact on the broader financial system and the role of regulation in promoting financial stability.Show Notes:Nobel Laureate Douglas Diamond on How the Fed Could Have Prevented SVB’s Collapse, by Brooke Fox, on ProMarketHow Do We Avoid the Next SVB? by Chicago Booth Professor Anil Kashyap, on ProMarketLink to the advertised Chicago Booth Review podcast: https://www.chicagobooth.edu/review/podcast?source=cbr-sn-cap-camp:podcast23-20230320