Capitalisn't Can We Build a Middle Class Without Factories? - ft. Dani Rodrik
94 snips
Jan 22, 2026 
Dani Rodrik, Ford Foundation Professor at Harvard, discusses the shifting economic landscape where traditional manufacturing no longer supports a stable middle class. He emphasizes the need to elevate service sector jobs, which are often undervalued, in order to maintain social cohesion. Rodrik highlights how new technologies can boost productivity in services while warning against platform monopolies that could harm workers. He proposes practical policies to enhance job quality and suggests that meaningful work is crucial for democracy and human dignity.
AI Snips
Chapters
Books
Transcript
Episode notes
Manufacturing No Longer Generates Mass Jobs
- Dani Rodrik argues manufacturing can no longer deliver mass employment because even China lost 30 million manufacturing jobs in 15 years.
- Therefore future middle-class jobs must come from services, making service productivity the central development challenge.
Work Provides Identity Beyond Income
- Rodrik links middle-class stability to meaningful work and social recognition, not just consumption.
- He warns economists underplay job loss's social costs and identity effects, which fuel political backlash.
Tech Is Raising Service Productivity — With Risks
- New technologies are raising service-sector productivity in retail, logistics, and restaurants, narrowing the historic productivity gap with manufacturing.
- But platform-controlled tech can intensify work and concentrate gains unless steered toward worker-friendly designs.
