Capitalisn't

Joined by Ken Rogoff, a Harvard professor and former chief economist for the IMF, the conversation dives into the future of the U.S. dollar as global dominance wanes. Rogoff argues the dollar is in its 'middle age,' facing pressure from rivals like the euro and renminbi while grappling with rising federal debt and economic sanctions. He also explores the impact of cryptocurrencies on traditional finance and elaborates on geopolitical dynamics that threaten U.S. currency supremacy. The discussants illuminate why this shift matters to Americans and the world.

Chris Hughes, co-founder of Facebook and PhD candidate at Wharton, dives into the intricate relationship between government and market structures. He explores the concept of 'marketcraft,' revealing how interventions have historically shaped economies. The discussion touches on pivotal events like the 2008 financial crisis and the COVID-19 pandemic, rethinking capitalism's regulations. Hughes highlights challenges of social media governance under Section 230 and critiques current market dynamics, prompting a reflection on ethical economic strategies.

David Sirota, founder of The Lever and former speechwriter for Bernie Sanders, dives deep into the Democratic Party's current challenges. He argues that the party has strayed from its working-class roots in favor of wealthy donors, leaving its economic populist messaging muddled. Sirota tackles the influence of money in politics, critiques Obama’s ties to Wall Street, and explores the complexities of tariffs and trade. He also discusses why reconnecting with disillusioned voters is crucial for the party's future.

Cliff Asness, founder and CIO of AQR Capital Management, shares his candid insights on market efficiency and investment strategies. He argues that social media and low interest rates are making markets less efficient, causing asset prices to stray from their true values. Asness critiques the legacy of the efficient market hypothesis and discusses how technology is reshaping investment dynamics. He also dives into the complexities of integrating ESG principles into investments, emphasizing the need for transparency and a balance between insights and data in finance.

Joan Williams, a distinguished professor of law emerita at UC Law San Francisco and author of 'Outclassed', dives into the political disconnect between the Democrats and non-college educated voters. She discusses her viral essay explaining Trump’s appeal and introduces the concept of the 'diploma divide.' Williams argues that Democrats need to merge progressive values with economic messaging to reconnect with working-class voters, addressing the importance of class dynamics, shifting political coalitions, and battling identity politics.

Lina Khan, a prominent law professor and former chair of the FTC known for her anti-monopoly stance, shares insights from her controversial term. She discusses the evolving landscape of antitrust law, particularly regarding Big Tech and market dominance. Khan reflects on the challenges of leadership in regulatory reform and the backlash faced from the business community. Her unique perspective emphasizes the need for updated regulations to address modern economic inequalities and the implications of monopolistic practices on everyday Americans.

John Morley, Augustus E. Lines Professor of Law at Yale University and a legal economics expert, dives into the pressing challenges facing law firms in today's political climate. He discusses how some firms have capitulated to Trump's executive orders while others resist, revealing the financial motivations behind these decisions. Conversations explore the transformation of law firms into corporate structures and the implications for their independence and the rule of law. This moment may reshape the future of democracy and capitalism in the U.S.

In this engaging discussion, Rose Chan Loui, a leading expert in philanthropy from UCLA Law, dives into the complexities of OpenAI's evolution from a nonprofit to a hybrid profit model. She explores the ethical dilemmas and corporate drama surrounding this transition, including Elon Musk's legal challenges. The conversation also touches on governance issues, the balance between profit and purpose, and the implications of AI development on society. Loui emphasizes the importance of nonprofit values in shaping a future that prioritizes humanity over mere profitability.

Silicon Valley's tech elites are shifting towards controversial political philosophies like the Dark Enlightenment. This ideology promotes authoritarian city-states controlled by corporate leaders. Accelerationism calls for rapid social change driven by technology, raising alarms about its impact on democracy. The idea of 'freedom cities' critiques self-governing areas that may deepen inequality. Tech billionaires’ ambitions for immortality blur the lines between power and governance, prompting a need to protect democratic values against the rise of oppressive ideologies.

In President Donald Trump's recent joint address to Congress, he said, "To unshackle our economy, I have directed that for every one new regulation, ten old regulations must be eliminated." Elon Musk, whom Trump has assigned to execute this vision, has argued that it is time to get rid of all regulations, or as Musk said, “regulations, basically, should be default gone.”Joining Bethany and Luigi to discuss this intensified commitment to deregulation and laissez-faire capitalism is Sam Peltzman, perhaps the leading living expert on the economics of regulation. Peltzman is the Ralph and Dorothy Keller Distinguished Service Professor Emeritus of Economics at the University of Chicago’s Booth School of Business and director emeritus of the Stigler Center, which sponsors this podcast and is named after his mentor, Nobel-Prize laureate George Stigler. Together, the three of them chart a historical perspective on regulation, from Stigler’s ideas of regulatory capture to the unintended consequences of deregulatory efforts over time to today’s “chainsaw” approach to gutting federal agencies. To understand the costs and benefits of regulation, they discuss how federal agencies have recently intervened in markets, if the private sector could not have accomplished these interventions more efficiently, and if these interventions did more harm than good. Their case studies include the funding, testing, and rollout of the COVID-19 vaccine, the regulation of cryptocurrencies, the management of the collapse of Silicon Valley Bank, and the role of the government in addressing climate change. In the process, they answer the trillion-dollar question: Are Trump's deregulation efforts actually efficient?Episode Notes:Revisit our recent episode with Federico Sturzenegger, the Argentinian Minister for State Transformation and DeregulationRead the op-ed Bethany mentions writing in the wake of the financial crisis: Who Wants a 30-Year Mortgage?At the end of the conversation with Peltzman, Luigi asks him about his recent academic papers tracing marriage and happiness. Read these papers on the Stigler Center’s Working Paper archives: The Socio-Political Demography of Happiness (2023) and The Anatomy of Marital Happiness (2025)