All Else Equal: Making Better Decisions

For the summer season, All Else Equal will be alternating between new episodes and reruns. On this week’s episode, we’re revisiting our conversation with Mohamed El-Erian on the intricacies of national debt and the best ways to measure it. Mohamed, Jonathan, and Jules explore the broader macroeconomic and geopolitical factors at play. They discuss the importance of demographic shifts as well as recent technological advancements (AI) for economic growth and our fiscal future.El-Erian is the former chair of President Obama's Global Development Council and former CEO of PIMCO. He is a Senior Fellow at the Lauder Institute. You can read Jonathan and Jules’ paper on national debt, “Why Care About Debt-to-GDP?” published May 27, 2025, here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5271557Find All Else Equal on the web: https://lauder.wharton.upenn.edu/in-the-news/all-else-equal/All Else Equal: Making Better Decisions Podcast is a production of the UPenn Wharton Lauder Institute through University FM.

Is the emperor wearing clothes?  Hosts and finance professors Jonathan Berk and Jules van Binsbergen are joined by economist and political scientist Timur Kuran who wrote the book, Private Truths, Public Lies: The Social Consequences of Preference Falsification. This 30-year-old book explains the social phenomenon where people express preferences they do not have.   As political and social tensions have risen in the U.S., the freedom to express views that go against the status quo has become more difficult.  Jonathan, Jules, and Timur discuss what preference falsification is and why people engage in it, historical and contemporary examples, the implications of this behavior in various domains, including politics, business, and academia, and insights into how societies can counteract it. The conversation also addresses the importance of fostering environments, particularly in universities, where open and honest discourse is encouraged.  Find All Else Equal on the web:  https://lauder.wharton.upenn.edu/allelse/All Else Equal: Making Better Decisions Podcast is a production of the UPenn Wharton Lauder Institute through University FM.

Richard Saller, an American classicist and former interim president of Stanford University, joins the hosts to dive into the nuances of academic freedom. He tackles the hypocrisy in university policies that often stifle diverse viewpoints while professing to uphold free expression. The discussion highlights a recent statement from 562 university leaders advocating for academic independence amidst rising pressures. Saller also suggests ways to foster open dialogue in academia, emphasizing the need for universities to genuinely support all perspectives, even the unpopular ones.

John Cochrane, a renowned economist from Stanford University and the Hoover Institution, joins the discussion on the often-misunderstood concept of trade deficits. He reveals that these deficits might actually indicate a capital surplus rather than economic weakness. The conversation dives into the historical myths surrounding trade policies and the detrimental effects of tariffs. Cochrane critiques current protectionist strategies while highlighting how open trade can foster growth and international cooperation, especially in comparison to China’s role in Africa.

Dani Rodrik, Ford Foundation Professor of International Political Economy at Harvard, dives into the economic ramifications of tariffs in this conversation. He discusses how hyperglobalization sparked political discontent leading to recent tariff decisions. Rodrik critiques the effectiveness of tariffs as a modern trade policy tool and emphasizes the need for innovative strategies to rebuild the middle class. He highlights the intricate link between job satisfaction and economic health, advocating for a holistic approach to job quality.

Did you know Ivy League universities face financial pressures despite their massive endowments? The hosts dive into the paradox of hefty billion-dollar funds versus the struggles for federal spending. They explore tuition pricing strategies, revealing how financial aid skews real costs. Harvard's financial health is scrutinized, showing accounting can disguise vulnerabilities. The discussion prompts a reevaluation of sustainability strategies in higher education, emphasizing the need to balance current spending and future financial health.

All Else Equal is taking a little spring break, so on this episode we’re revisiting a fascinating conversation on what happens when universities step off the sidelines and take a stance on contentious issues. Are they boarding a roller coaster that they can’t ever get off? Hosts and finance professors Jonathan Berk and Jules van Binsbergen chat with John Etchemendy, former Provost of Stanford University, for a discussion about institutional neutrality and the long-term unseen costs of any stance institutions elect to take. Submit your questions to the show here: https://bit.ly/AllElseEqualFind All Else Equal on the web: https://www.gsb.stanford.edu/business-podcasts/all-else-equal-making-better-decisionsAll Else Equal: Making Better Decisions Podcast is a production of Stanford Graduate School of Business and is produced by University FM.

Peter Robinson, a distinguished policy fellow at the Hoover Institution and former speechwriter for Ronald Reagan, brings invaluable insights on communication strategies. He discusses the unpredictable nature of Donald Trump's communication style, questioning its intentionality. Robinson contrasts this with Reagan's iconic speeches, sharing behind-the-scenes stories, including the genesis of 'Tear down this wall.' The conversation dives into how both leaders engaged the public, revealing the strengths of structured rhetoric versus off-the-cuff remarks, ultimately reflecting their unique legacies.

This discussion features John Ioannidis, a Stanford professor renowned for his insights into medical research reliability. He delves into the ethical quandaries of medical honesty, questioning if it's justifiable for doctors to withhold information for a patient's benefit. They explore how trust in healthcare has been damaged, particularly during the pandemic, and emphasize the necessity of transparency and shared decision-making. The conversation also touches on the long-term effects of misinformation on vaccine hesitancy and why restoring public confidence is crucial.

Madhav Rajan, Dean of the Booth School of Business at the University of Chicago, brings valuable insights from his extensive background in business education. He discusses the shifting landscape of MBA programs, emphasizing the importance of rigorous education amid declining full-time enrollments. The need for experiential learning to meet market demands is highlighted, along with innovative ideas like modular degrees. Rajan also explores the evolving value of MBAs, the impact on alumni relationships, and how schools can adapt to modern educational trends.