Transcript
A (0:00)
Marshall here. Welcome back to the Realignment. Before we jump into my latest conversation with my Niskanian center colleague Steve Tallis, I want to shout out the Niskanin Summer Institute, our week long academic program for undergrads interested in the intersection of politics, policy and all of the issues and themes covered on the Realignment. The program is fully funded, so we'll cover your lodging travel and offer a $250 stipend to participants. Students in the class of 2026 or later are eligible. Applications are due on February 27th. You can find the link to the application in the show Notes onto Today's Episode Steve and I cover a lot of ground, but the main focus is the challenge raised by last week's episode how moderates, centrists and technocratically coded movements like Abundance can meet an increasingly populist, anti status quo electorate. I hope you all enjoy the conversation. Steve, welcome back to the Realignment.
B (1:02)
Happy to be here, Marshall.
A (1:04)
The cost of lots of travel in January and the fact that I have actual day to day responsibilities at our think tank, the Niskanon center, means that we have not been able to hop on a recording yet this year. So I'm very excited to do that. Here's the overall theme for the episode 2025 was a big year. A lot of theses were put out there, a lot of takes were had, and a bunch of things were either validated or invalidated. So I wanted to do a broad facing episode where you and I could go over a lot of our takeaways and sort of notes for the future for folks in this audience who are interested in that style of thinking that folks could really take into the not only rest of the year, but really the fact that a lot of these conversations are going to reset after the midterms this November, I wanted to kick off with something you and I both really wanted to discuss which is sort of the cleanest hit that I have taken from the not just like economic populists on the left side, but also just sort of like right wing people who are populist. Which is just that in an anti status quo moment there is a real difficulty when it comes to moderate and center coded movements and ideas like Abundance in attacking and being aggressive against that status quo. I would love to hear your kind of thoughts on that. We can get into it.
B (2:20)
Yeah, so I thought about this a lot. So back in 2017 I wrote a book with also Niskin and Center fellow Brent Glindzi called the Captured Economy, which made the argument that in fact lots of our economy as it's in the title, right. Was in fact captured by entrenched incumbent interests. And that there was a political economy to that. That there was actually ways that whether it was in finance or medicine or intellectual property or housing, you could go down the, down the down the list. Our economy over, you know, over the decades had become more and more brittle that the creative destruction that's supposed to be kind of the argument for capitalism had ground will halt. And so you, you could see this in lots of different, different areas and that people should be met that. Right. That that was an actual breakdown of our politics and that we, and that people had rightly kind of could sense that a lot of our inequality was downstream from politics. And so the first thing I'll say is I was there already before some of these guys got there. And that, you know, any kind of abundance movement worth its salt should also incorporate that kind of what I would say these fancy terms call sort of anti status entrenchment. You know, the same time that we wrote that book, Richard Reeves had a book out that made dream hoarders made similar points about different kind of areas around schools and housing and all kinds of other areas. So I do think that there is a class story that people ought to be able to tell. Now the thing I would say and the thing that differentiates me from economic populists is that to say that you also need a plausible economics. And so when we were looking at status entrenchment in the book, we were mostly focused on economists call rent seeking right areas where people are getting super normal profits because they can prevent market entry. In some ways our book was the cleanest, simplest pure classical economic story. There was no like anti neoliberal thing there. Although it depends what you mean by neoliberalism, which is like an endless pit that I don't want to fall into. I just mean, you know, when you actually sit down and read the economics textbook, it's incredibly radical, right? And when you, if you actually take it seriously, it, you know, implies enormous change all over the place. Now often when we teach this, people sort of ignore actually how radical the implications of it are. But you know, if you say that we should have a non distortionary tax cut sounds very kind of technocratic, right. What it really means is enormous ways that we redistribute upward should be taken away, right? The argument is not that the, you know, somehow the political system is all neutral, all our policy is somehow neutral and all the inequality is coming out of the market. Our argument was a huge amount of that inequality was being generated by politics itself. The politics not just where we weren't regulating things, but it was how we were regulating that was redistributing upward. So the basic argument, I think that comes out of all this is that we should be worried about the reproduction of status. We should be worried about the way that the wealthy insulate themselves from change. But in order to actually have a freer kind of market, right, to actually have more competition. Because one of the values of competition is it forces those who already have status to actually compete for it. Right? Actually compete for customers to compete against other workers, other kinds of things. Right. And it was the breakdown of that competition that's ultimately led to a lot of that upward redistribution. But again, you need to have an actual plausible theory of the economy that isn't just a theory of politics and takes. And that's where I think there's a real difference between what I think of as the abundance adjacent criticism of class and status and the one that I think is. Is often thinks of itself as a rival to normal economic reasoning and evidence and stuff like that.
