Nobel Prize-winning economist Angus Deaton discusses his experiences as a naturalized U.S. citizen, the inside story of the Nobel Prize in economics, and tensions between economics and politics. They also explore the impact of minimum wage increase and distribution of profits, challenges of online dating, the impact of the sexual revolution on women, the debate on Universal Basic Income (UBI), the mystery of suicide, globalization and Trump's rise to power, and the value of seeking knowledge.
Read more
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
Wealth inequality and relational inequalities are more significant than income inequality, as they enable the rich to influence public goods and undermine healthcare and education. 2) The healthcare system in the US faces challenges due to vested interests and lacks a truly free market, resulting in inflated costs and negative consequences on individuals' health. 3) Socioeconomic outcomes are influenced by a complex interplay of factors, including luck, opportunity, and social structures, and addressing these complexities can lead to a fairer and more equitable society.
Deep dives
Income inequality and relational inequalities
Income inequality is not as important as other inequalities, such as wealth inequality and relational inequalities. The issue of income inequality becomes significant when rich individuals have the power to undermine healthcare, public education, and other public goods. The focus should be on addressing wealth inequality and ensuring equal treatment for all individuals, regardless of their socioeconomic status.
Healthcare challenges and vested interests
The healthcare system faces challenges due to vested interests and the absence of a truly free market. The financial sector in healthcare is significantly larger than it should be, resulting in inflated costs. The ability of the rich to influence politics and decisions within the healthcare system can have negative consequences, putting the health and well-being of individuals at risk. It is essential to consider the impact of wealth inequality and the effects of influential stakeholders in healthcare.
Causality, meritocracy, and luck
Determining causality in socioeconomic outcomes is complex, with numerous factors playing a role. Arguments around a just world theory and the belief in individual merit often neglect the influence of external forces and relational inequalities. While luck and circumstances are significant contributors to outcomes, it is crucial to acknowledge that individuals possess varying degrees of agency, and not everyone is on a level playing field. Addressing the complexity and interplay of factors like luck, opportunity, and social structures can help shape a fairer and more equitable society.
The Impact of Welfare Systems in Europe on Deaths of Despair
One of the main ideas discussed in the podcast is the impact of welfare systems in Europe on deaths of despair. The speaker suggests that in Europe, where there is a decent welfare system supported by a value-added tax, people who lose their jobs are treated with more dignity and have better support compared to the United States. The availability of a welfare system may contribute to lower rates of deaths of despair, such as suicide and drug overdose, as people feel more supported during difficult times.
The Role of Healthcare Systems and Education in Deaths of Despair
Another main point discussed in the podcast is the role of healthcare systems and education in deaths of despair. The speaker highlights that in the US, the healthcare system is primarily employer-funded and is based on insuring a person's body rather than their salary. This can lead to higher costs for employers, making it prohibitive to hire low-wage workers. The speaker suggests that the current healthcare system has played a significant role in the loss of good working-class jobs and the decline of certain industries. Additionally, the podcast touches on the importance of education in relation to deaths of despair. It questions the assumption that obtaining a bachelor's degree is the sole determinant of better life outcomes, emphasizing the influence of other factors like intelligence, upbringing, and early childhood experiences on a person's future success. The speaker suggests that creating more diverse pathways to good jobs, as seen in European countries, and addressing issues related to family instability could contribute to reducing deaths of despair.
When economist Angus Deaton immigrated to the United States from Britain in the early 1980s, he was awed by America’s strengths and shocked by the extraordinary gaps he witnessed between people. In this conversation based on his new book, Economics in America, the Nobel Prize-winning economist explains in clear terms how the field of economics addresses the most pressing issues of our time—from poverty, retirement, and the minimum wage to the ravages of the nation’s uniquely disastrous health care system—and narrates Deaton’s account of his experiences as a naturalized U.S. citizen and academic economist.
Deaton is witty and pulls no punches. In his incisive, candid, and funny book, he describes the everyday lives of working economists, recounting the triumphs as well as the disasters, and tells the inside story of the Nobel Prize in economics and the journey that led him to Stockholm to receive one. He discusses the ongoing tensions between economics and politics―and the extent to which economics has any content beyond the political prejudices of economists―and reflects on whether economists bear at least some responsibility for the growing despair and rising populism in America.
Blending rare personal insights with illuminating perspectives on the social challenges that confront us today, Deaton offers a disarmingly frank critique of his own profession while shining a light on his adopted country’s policy accomplishments and failures.
Shermer and Deaton discuss: the science of science is economics • winning a Nobel Prize • what economists do, and how they determine causality • Ludwig von Mises, Friedrich Hayek, Milton Friedman, Ayn Rand • why a college education matters • meritocracy and “Just World” theory • minimum wage • healthcare • poverty • inequality • opioid crisis, alcoholism, suicide • inflation and interest rates • modern monetary theory • think tanks.
Angus Deaton, winner of the 2015 Nobel Prize in economics, is the Dwight D. Eisenhower Professor of Economics and International Affairs Emeritus and Senior Scholar at Princeton University. He is the author (with Anne Case) of the New York Times bestselling book Deaths of Despair and the Future of Capitalism, The Great Escape: Health, Wealth and the Origins of Inequality, and his new book Economics in America: An Immigrant Economist Explores the Land of Inequality, all from Princeton University Press.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode