The Impact of Premature Deindustrialization on Building a Middle Class

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Abhijit Banerjee discusses the argument of premature deindustrialization in emerging economies and its impact on building a middle class. He acknowledges the problem of inequality caused by manufacturing in low-cost countries and highlights the need to identify and support the best petty entrepreneurs to become larger.

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Long before Abhijit Banerjee won the 2019 economics Nobel with Michael Kremer and Esther Duflo, he was a fellow graduate student at Harvard with Tyler. For Tyler, Abhijit is one of the brightest economic minds he’s ever met, and “a brilliant theorist who decided the future was with empirical work.” But according to Abhijit, theory and practice go hand in hand: the real benefit of a randomized control trial isn’t getting unbiased estimates, he says, but in testing hypotheses borne out of theory.

Abhijit joined Tyler to discuss his unique approach to economics, including thoughts on premature deindustrialization, the intrinsic weakness of any charter city, where the best classical Indian music is being made today, why he prefers making Indian sweets to French sweets, the influence of English intellectual life in India, the history behind Bengali leftism, the best Indian regional cuisine, why experimental economics is underrated, the reforms he’d make to traditional graduate economics training, how his mother’s passion inspires his research, how many consumer loyalty programs he’s joined, and more.

Read a full transcript enhanced with helpful links.

Recorded December 2nd, 2019 Other ways to connect

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