EconTalk Dani Rodrik on Neoliberalism
Sep 23, 2019
Dani Rodrik, a Harvard Professor of international political economy, discusses the pitfalls of neoliberalism. He argues that an unyielding belief in markets has widened inequality and limited growth benefits. Rodrik advocates for an interventionist economic approach, focusing on better-paying jobs and shared prosperity. The conversation explores the importance of community-driven initiatives in revitalizing manufacturing sectors and redefines metrics for well-being, challenging traditional economic models and advocating for a balance between trade and domestic support.
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Markets and Social Arrangements
- Markets aren't prior to social arrangements, they are products of them.
- Therefore, markets can be constructed in different ways to serve different social goals.
Inclusive Prosperity
- Economics should consider the whole distribution of outcomes, not just averages like GDP.
- It must also look at non-monetary factors like health, climate, and political rights.
Beyond Measurable Metrics
- Economists' focus on measurable data like income overlooks crucial aspects of well-being.
- Things like dignity and flourishing are not fully captured by income but vital for human prosperity.