3min chapter

Eric Beinhocker & Diane Coyle on Rethinking Economics for A Sustainable & Prosperous World (EPE 02)

COMPLEXITY

notes

CHAPTER

Is the Scale Wrong?

Economics has a long tradition of thinking of the economy as a self stabilizing system. Tian: As networks grow, both in scale and complexity, these interdependencies can become too much to cope with. And so even though the macro trend has been increasing scale of cooperation over very long periods of time, that we do have these periods of collapse and retrenchment and unravelling as well.

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Transcript

Episode notes

In the digital era, data is practically the air we breathe. So why does everybody treat it like a product to be hoarded and sold at profit? How would our world change if Big Tech operated on assumptions and incentives more aligned with the needs of a healthy society? Are more data — or are bigger models — really better? As human beings scamper around like prehistoric mammals under the proverbial feet of the new enormous digital monopolies that have emerged due to the Web’s economies of scale, how might we tip the scales back to a world governed wisely by human judgment and networks of trust? Would Facebook and Twitter be more beneficial for society if they were public services like the BBC? And how do we settle on the social norms that help ensure the ethical deployment of A.I.? These and many other questions grow from the boundary-challenging developments of rapid innovation that define our century — a world in which the familiar dyads of state and market, public and private, individual and institutional are all called into question.

Welcome to COMPLEXITY, the official podcast of the Santa Fe Institute. I’m your host, Michael Garfield, and every other week we’ll bring you with us for far-ranging conversations with our worldwide network of rigorous researchers developing new frameworks to explain the deepest mysteries of the universe.

This week on Complexity, we speak with two researchers helping to rethink political economy:

SFI External Professor Eric Beinhocker is the Professor of Public Policy Practice at the University of Oxford, and founder and Executive Director of the Institute for New Economic Thinking at the University’s Oxford Martin School. He is also the author of The Origin of Wealth: The Radical Remaking of Economics and What It Means for Business and Society.

Diane Coyle is the Bennett Professor of Public Policy at the University of Cambridge, and co-director of the Bennett Institute, whose latest book — Cogs and Monsters: What Economics Is, and What It Should Be— was published by Princeton University Press last fall.

In the first episode of this subseries, we spoke with SFI President David Krakauer about how the study of political economy has changed over the last two hundred years due to the innovation of new mathematical and computational methods. In this episode, we examine how the technological milieu that empowered these changes has also transformed the subject of study itself: digital surveillance architecture, social media networks, big data, and (largely inadequate) attempts to formalize econometrics have all had a profound impact on modern life. In what ways do new institutions beget even newer institutions to address their unintended consequences? How should we think about the complex relationships between private and public agencies, and what status should we give the data they produce and consume? What is it going to take to restore the trust in one another necessary for society to remain coherent, and what are the most important measures to help economists and policymakers navigate the turbulence of our times into a more inclusive, prosperous, and sustainable world?

Subscribe to Complexity Podcast for upcoming episodes with an acclaimed line-up of scholars including Ricardo Hausmann, Doyne Farmer, Steven Teles, Rajiv Sethi, Jenna Bednar, Tom Ginsburg, Niall Ferguson, Neal Stephenson, Paul Smaldino, C. Thi Nguyen, John Kay, John Geneakoplos, and many more to be announced…

If you value our research and communication efforts, please rate and review us at Apple Podcasts, and consider making a donation — or finding other ways to engage with us — at santafe.edu/engage. You can find the complete show notes for every episode, with transcripts and links to cited works, at complexity.simplecast.com.

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Mentions and additional resources:

Toward a New Ontological Framework for the Economic Good
by Eric D. Beinhocker

Complexity Economics: Proceedings of the Santa Fe Institute's 2019 Fall Symposium
edited by W. Brian Arthur, Eric Beinhocker, Allison Stanger

Socializing Data
by Diane Coyle

The Public Option
by Diane Coyle

Common as Air: Revolution, Art, and Ownership
by Lewis Hyde

Pitchfork Economics
by Nick Hanauer

The Nature of Technology: What It Is and How It Evolves
by W. Brian Arthur

Geoffrey West on Complexity 35