Capitalisn't

"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