The Weekly Show with Jon Stewart

Episode: The Wealth of Wall Street with Oren Cass

Air Date: February 11, 2026
Guest: Oren Cass, Chief Economist, American Compass
Host: Jon Stewart

Overview

This episode dives deep into the concept of "financialization" of the American economy: how Wall Street and the financial sector have grown outsized compared to the “real economy” of jobs, manufacturing, and tangible value creation. Host Jon Stewart is joined by Oren Cass—a conservative economist who recently wrote an op-ed critiquing financialization from the right—to discuss the historical shifts in capitalism, the growing dominance of finance, the inadequacies of policy responses, and what a rebalancing might look like.

Key Discussion Points & Insights

1. What is Financialization?

Timestamps: 05:01–08:51

• Definition: Cass explains financialization as "the increasing role of financial markets in the economy where they sort of become ends unto themselves," with activity focused on extracting profit rather than creating real-world value.
• Examples:
  • Hedge funds engaging in high-frequency trading without regard for what’s being traded (05:44).
  • Private equity buying and restructuring companies (like vet clinics or nursing homes), often leveraging them with debt to maximize returns and risking higher bankruptcy (06:40).
• Context: “The share of the activity on Wall Street that actually represents productive investment, actually causing anybody to build anything new and useful in the world, keeps going down.” — Oren Cass (08:38)

2. The Capitalism Debate: Market Fundamentalism vs. Public Interest

Timestamps: 10:01–15:12

• Adam Smith Misread: Cass distinguishes his critique: not anti-capitalist, but saying true capitalism aligns self-interest with public good, not just profit for profit's sake.
• History of Adjustments: Stewart notes how child labor laws and trust-busting were interventions to right “slaps” from the “invisible hand.”
• Policy Drift: Cass traces how, post-WWII, deregulation and financial market loosening shifted focus from public-interest capitalism to “market fundamentalism”—the idea that markets left alone always deliver optimal outcomes.

“The invisible hand sometimes slaps you across the face…” — Jon Stewart (12:55)

3. Pendulum Swings in Economic Policy

Timestamps: 24:47–29:07

• Epochs: Stewart lays out major eras—New Deal as a safety net, the 1970s/80s swing toward supply-side and trickle-down economics, and back.
• Overcorrections: Both agree often reformers overcorrect, e.g., 1970s stagflation leading to excess pro-business deregulation.

4. Diagnosing the Scale of the Problem

Timestamps: 29:54–34:14

• Metrics of Trouble: Stagnant wage growth, rising inequality, the shrinking proportion of real investment vs. financial churning.
• Policy Tools: Discussion of tax incentives, disclosure rules, limits on buybacks—how to reign in Wall Street’s dominance.
• Political Divide: Cass sees less left-right disagreement on the problem itself than in the past, though still divergent on solutions.

5. Limits of Regulation & Financial Sector Agility

Timestamps: 35:58–41:29

• Evading Oversight:
  • Regulations like Dodd-Frank are massive, and finance tends to out-maneuver them by inventing new structures (e.g., private credit, payment for order flow schemes).
• Lobbyist Power: Stewart laments Congress's coziness with Wall Street; Cass says any reform must accept lobbying will be a reality.
• Blunt Instruments: Cass advocates for “clear lines”—simple, broad constraints (e.g., reinstating bans on stock buybacks, clear disclosure requirements).

“There are plenty of ways to make money that are legal in the United States today that most people would still say like, oh, that’s not going to be the top thing for college kids…” — Oren Cass (76:24)

6. Why Restoring Balance is Hard

Timestamps: 41:28–46:15

• Economic Health vs. Stock Market: Stewart notes GDP and S&P 500 don’t reflect the real economy’s health or worker prosperity (44:24–44:44).
• Decline in Productive Capacity: Cass argues U.S. capacity to make things, innovate, and provide good jobs is in retreat—even if headline numbers look strong.
• Changing Republican Stance: Cass: GOP attitudes are shifting—rising voices see need for industrial policy, investment in domestic manufacturing.

7. The Missing Coherent Economic Policy

Timestamps: 46:15–50:27

• Stewart criticizes the Trump era policy as “tantronomics”—impulsive and inconsistent, lacking a steady philosophy for economic correction.
• Cass: Trump’s “non-ideological demolition” paved the way for necessary changes, but no rebuilding philosophy has emerged yet.

“If all you do is demolition and then go find the next thing to demolish, you are less likely to be remembered as a great builder.” — Oren Cass (48:49)

8. Politics and Economics: The Missing Link

Timestamps: 50:27–57:19

• Political Instability: Stewart suggests fixing baseline governance (stable, predictable rules of the road) is prerequisite to deeper economic reform.
• Economists’ Role: Both agree economists act as “priests” defending their discipline, often using technical rigor to shield policy recommendations from critique.

“In debating circles, we refer to that as a Mott and Bailey… you spread out and make very expansive claims… and when you get attacked, you retreat to this much narrower claim you can defend.” — Oren Cass (52:10)

9. Trade, Labor, and the Limits of Mainstream Economics

Timestamps: 57:19–64:41

• Persistent Myths: Cass criticizes economists for downplaying negative impacts of offshoring and trade deficits, clinging to discredited models.
• Consumption vs. Work: He explains that in formal economics, “consumption” is the only good and “work” is a necessary evil, which blinds policy to the importance of meaningful jobs and community.

“The ideal policy would be one where we get just everything we want to consume and don’t have to do any work.” — Oren Cass (62:34)

10. What About ESG and Inclusive Growth?

Timestamps: 65:05–69:28

• ESG Backlash: Stewart asks why environmental, social, and governance (ESG) investing failed to make meaningful change.
• Cass Critique: “ESG” focuses on progressive social priorities (e.g., climate) but ignores real investment in domestic jobs or family-supporting work (66:40).

11. Industrial Policy, Tariffs, and the Future

Timestamps: 69:28–74:31

• Tariffs vs. Targeted Policy: Cass supports programs like CHIPS Act for critical industries but warns piecemeal intervention isn’t enough; broad incentives or tariffs may be needed to shift investment back to the US.
• Challenge: Tariffs risk being regressive (hurting poor consumers), but Cass contends the net effect could benefit workers by raising wages and employment, if executed well.

12. Cultural and Societal Change is Needed

Timestamps: 76:01–78:43

• Beyond Policy: Both acknowledge regulations alone aren’t enough; there must be a broader cultural rejection of the idea that maximizing profit is always virtuous, especially as the system gets ever more dominated by gamified speculation (crypto, prediction markets).

“It is impossible to look at what’s going on at this point and defend it.” — Oren Cass (78:00)
“If you watch the Super Bowl ads this year, you’d think our economy was driven entirely by, you know, chatbots, prediction markets, and weight-loss drugs.” — Oren Cass (78:43)

Notable Quotes

• “The core of the problem is that the entire premise of capitalism... is being distorted so people can make a lot of profit without building up companies or creating value.” — Oren Cass (10:01)
• “The invisible hand sometimes slaps you across the face…” — Jon Stewart (12:55)
• “Lobbyists are a baseline reality. Did you have a plan for there not being the lobbyists?” — Oren Cass (37:02)
• “You can generate a lot of growth, but you are making the most profitable things in the narrow enclaves already doing best. We’ve got to find a way to drive investment into the rest of the country.” — Oren Cass (67:51)
• “Growth is good. The real problem is what metrics of growth are we chasing?” — Oren Cass (76:58)
• “Financialization reflects a market where the incentives are not to do that [support communities and families].” — Oren Cass (64:44)
• “There have always been ways to make money that are just not good things to do, that are embarrassing, frankly.” — Oren Cass (76:24)

Tone and Style

• The conversation is deeply engaged, sometimes humorous and irreverent (frequent jokes and cultural references from Stewart), but often earnest and analytical (especially from Cass).
• Stewart brings left-leaning skepticism and historic context, while Cass articulates a conservative but reformist perspective, often surprising Stewart by naming his critiques as fundamentally “conservative” and supportive of markets.

Important Segments & Timestamps

| Segment | Timestamp | |-----------------------------------------------|----------------| | Defining Financialization | 05:01–08:51 | | Market Fundamentalism & Historical Shifts | 10:01–15:12 | | Deregulation and Trickle-Down Economics | 24:47–29:07 | | Diagnosis vs. Policy | 29:54–34:14 | | Agility of the Financial Sector | 35:58–41:29 | | Declining Productive Capacity | 41:28–46:15 | | Trump Era “Tantronomics” Demolition | 46:15–50:27 | | Economics as Priesthood | 52:00–57:19 | | The Limits of Free-Trade Models | 57:19–64:41 | | ESG and Progressive vs. Working Class Priorities | 65:05–69:28 | | Tariffs, Industrial Policy, and State Competition | 69:28–74:31 | | The Need for Cultural Change | 76:01–78:43 |

Memorable Moments

• Jon Stewart’s “tantronomics” criticism of Trump-era policy (48:02)
• The “Mott and Bailey” discussion about economic argument tactics and economists’ reputation for mean-spirited defensiveness (52:00)
• Lively banter about college kids being most attracted to profit no matter how it’s made, Stewart’s quip about selling Melania meme coin (79:21)

Conclusion

This episode provides a rich cross-ideological discussion about the dangers of an over-financialized economy, the failure of both parties over decades to maintain balance between real industry and speculative finance, and the challenge of rewriting rules to serve broader public good. Oren Cass’s surprise from the right aligns with much of the left’s traditional critique, showing hope for a new, common-sense approach to American economic policy—though both acknowledge the enduring resistance of entrenched interests on Wall Street and in economics departments.

Recommended for: Listeners curious about the intersection of economics, politics, and public policy, especially those seeking nonpartisan diagnoses of systemic economic problems.