The Reason Interview With Nick Gillespie
Billionaire Cliff Asness: Can Technology Outrun 'Stupider and Stupider' Government?
May 9, 2025
Cliff Asness, co-founder of AQR Capital Management and a pioneer in quantitative finance, critically discusses the impact of tariffs and trade under Trump’s administration. He expresses concerns about the authoritarianism of populist movements and highlights the inefficiencies capitalism faces from social media influence. Asness shares insights on his libertarian beliefs and the future of free markets amid regulatory challenges, emphasizing the need for vigilant oversight and a nuanced understanding of economic progress.
51:57
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Quick takeaways
- Cliff Asness argues that Trump's tariffs undermine free trade principles, disrupting the economic theory of comparative advantage crucial for market efficiency.
- He highlights the negative impact of social media on market stability, causing emotional decision-making that leads to greater volatility and mispricing of assets.
Deep dives
Cliff Asnes' Views on Trade and Tariffs
Cliff Asnes criticizes Donald Trump's pro-tariff stance, arguing that it fundamentally undermines free trade principles. He emphasizes the economic theory of comparative advantage, where countries benefit when they specialize in producing goods they are most efficient at, thus enhancing overall economic welfare. Asnes posits that tariffs disrupt this mechanism, leading to inefficiencies in the market and attributing Trump’s obsession with tariffs to a deeper aversion to trade itself. This perspective highlights the detrimental effects of protectionist policies on both the domestic economy and global trade relationships.
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