Declining TFP and China's economic duality

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Dan Wang argues that China is a nation of engineers while America is a nation of lawyers, and this distinction explains everything from subway construction to pandemic response to why Chinese citizens will never have yards with dogs. His prescription: America should become 20% more engineering-minded to fix its broken infrastructure, while China needs to be 50% more lawyerly so the Communist Party can stop strangling individual rights and the creative impulses of its people. But would a more lawyerly China constrain state power, or just create new tools for oppression? And aren't the American suburbs actually sterling achievements where the infrastructure works quite well?

Tyler and Dan debate whether American infrastructure is actually broken or just differently optimized, why health care spending should reach 35% of GDP, how lawyerly influences shaped East Asian development differently than China, China's lack of a liberal tradition and why it won't democratize like South Korea or Taiwan did, its economic dysfunction despite its manufacturing superstars, Chinese pragmatism and bureaucratic incentives, a 10-day itinerary for Yunnan, James C. Scott's work on Zomia, whether Beijing or Shanghai is the better city, Liu Cixin and why volume one of The Three-Body Problem is the best, why contemporary Chinese music and film have declined under Xi, Chinese marriage markets and what it's like to be elderly in China, the Dan Wang production function, why Stendhal is his favorite novelist and Rossini's Comte Ory moves him, what Dan wants to learn next, whether LLMs will make Tyler's hyper-specific podcast questions obsolete, what flavor of drama their conversation turned out to be, and more.

Read a full transcript enhanced with helpful links, or watch the full video on the new dedicated Conversations with Tyler channel.

Recorded October 31st, 2025.

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Timestamps 00:00:00 - American infrastructure and suburban life 00:05:18 - American vs. Chinese infrastructure buildouts... 00:12:25 - And health care investment 00:17:52 - Chinese suburbs 00:20:10 - The existing lawyerly influence in East Asia 00:25:12 - China's lack of a liberal tradition 00:29:35 - Why China's won't democratize 00:33:49 - China's economic disfunction 00:38:44 - China's expansionism 00:41:55 - Chinese pragmatism and bureaucratic incentives 00:46:50 - Chinese cities and regional culture 00:59:44 - James C. Scott, Zomia, and elite culture 01:06:27 - A 10-day Yunnan itinerary 01:11:57 - On Chinese arts, literature, and cultural expression 01:18:23 - The Dan Wang production function 01:30:34 - Tyler's grand strategy, or lack thereof