The Power and Complexity of Market Systems

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Market systems, based on private property and individual initiatives, decentralize decision-making to where information and brains really are. If aligned with social values, it harnesses humanity's intelligence to achieve social goals efficiently. However, challenges include aligning prices with social values, ensuring the distribution of property rights is in accord with societal needs, and addressing externalities such as information and macroeconomic externalities.

Brad DeLong, professor of economics at UC Berkley, OG econ blogger, and Tyler’s Harvard classmate, joins the show to discuss Slouching Towards Utopia, an economic history of the 20th century that’s been nearly thirty years in the making.

Tyler and Brad discuss what can really be gleaned from the fragmentary economics statistics of the late 19th century, the remarkable changes that occurred from 1870-1920, the astonishing flourishing of German universities in the 19th century, why investment banking allowed America and Germany to pull ahead of Britain economically, what enabled the Royal Society to become a force for progress, what Keynes got wrong, what Hayek got right, whether the middle-income trap persists, his favorite movie and novel, blogging vs. Substack, the Slouching Towards Utopia director’s cut, and much more.

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Recorded November 11th, 2022

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