Capitalisn't

The basic premise of capitalism has always been that more people generating more profits will be better for everybody. Oren Cass wants to challenge that premise by prioritizing values over value and over market power.

Oren was formerly an Economic Advisor to the Mitt Romney Presidential Campaign, now executive director of the nonprofit American Compass and author of The Once and Future Worker: A Vision for the Renewal of Work in America (2018). A successful economy, according to him, should not be measured by consumption but by opportunities for all to be productive with a wide range of aptitudes and interests. Luigi, Bethany, and Oren discuss what this means for replacing jobs with AI, China's economic relationship with the US, the idea of "Big Labor", and the interplay of neoliberalism with capitalism.

Plus, Luigi and Bethany discuss Elon Musk and Twitter for the Capital-Is/Ins't section (47:00) Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com

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Since the start of the war in Ukraine, we've discussed its many aspects but we haven't talked to anyone actually in or from the country. On this episode, we do both. Ukrainian economist Tymofiy Mylovanov is the president of the Kyiv School of Economics, advisor to the Zelensky administration, and former Ukrainian Minister of Economic Development, Trade and Agriculture.

Mylovanov shares what has and hasn't surprised him about the war, reveals Russia’s other strategic advantages beyond energy resources, and offers a game theoretical approach to understanding the potential outcomes of this conflict. Along the way, he laments the cost of human lives as the price for democracy, and encourages us to remember history’s lessons.

Please consider supporting the humanitarian aid campaign of the Kyiv School of Economics Charitable Foundation at Mylovanov's institution: https://kse.ua/we-save-lives/

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As the devastation in Ukraine increases, so do the calls to end the war. Among those championing tougher actions is Bill Browder—one of Putin’s most vocal critics—and the man behind the Magnitsky Act, which authorizes the U.S. government to sanction human rights offenders.

Browder has been advocating for expanding the list of sanctioned pro-Kremlin Russian oligarchs. He prescribes that Western lawyers, bankers, and other enablers of these oligarchs should also be held responsible.

Browder's new book, “Freezing Order: A True Story of Money Laundering, Murder, and Surviving Vladimir Putin's Wrath”, is out April 12. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com

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As the war in Ukraine continues, the world is responding not just with various government sanctions on Russia, but also with a voluntary exodus of private corporations from the Russian market. To discuss these "private sanctions" and possible motivations behind them, we invited Richard Edelman, the CEO of one of the largest public relations firms in the world.

Are firms profit-maximizing in their actions? Are they responding to political or consumer pressure? Or are they simply trying to avoid a public relations nightmare? Furthermore, do these actions constitute a precedent to be followed in future conflicts? Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com

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After the fall of the Berlin Wall, political scientist Francis Fukuyama famously proclaimed the "end of history" and of humankind’s ideological evolution. The combination of Western liberal democracy and capitalism were seen as the final, convergent form of global human organization — surpassing geopolitical considerations.

As Russia invades Ukraine, history seems to have restarted. This time the tension is not between capitalism and socialism, but between liberal capitalism and autocratic capitalism, between globalism and nativism, between a state subordinated to economic interests and economic interests subordinated to the state. Amidst this unfolding situation, Luigi and Bethany discuss how sanctions, SWIFT, the energy sector, digital platforms, new geopolitical blocks, and more are coming together to possibly reshape the course of history. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com

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Is private equity a good investment? Jeffrey Hooke, Senior Lecturer at Johns Hopkins' Carey School of Business, claims that private equity has not been a lucrative investment for institutional investors such as pension funds or university endowments. Chicago Booth Professor Steven Kaplan, who has studied private equity for over 35 years, disagrees.

Luigi and Bethany bring both Jeff and Steven on the show to debate this, and the evolution (or lack thereof) in reporting, transparency, and corporate governance in the private equity industry.

What data and metrics should we look at when measuring private equity performance? How should we compare studies and analyses across time and different data sources? Moreover, does adding value to investors also necessarily mean adding value to society?

Jeffery Hooke's new book "The Myth of Private Equity" is out now. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com

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The Federal Reserve is likely to hike interest rates in March due to high inflation and the strong labor market. But where did this inflation come from? Is it transitory or is it here to stay? Whom does it hurt the most and what should be done about it? To discuss this, we invited Chicago Booth professor and former IMF chief economist Raghuram Rajan, who – when he served as India’s central banker – was charged with fighting inflation himself. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com

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Last year, Capitalisn’t featured two episodes on the pluses and minuses of meritocracy. Supporters of meritocracy, such as Adrian Wooldrige, emphasize its ethical dimension. Critics, such as Michael Sandel, emphasize the luck component. At the end of the day, it is an empirical question, albeit a difficult one: How much of “success” is driven by effort versus luck?

Luigi and Bethany sit down with Kathryn Paige Harden, behavioral geneticist, professor of psychology, and author of the book "The Genetic Lottery: Why DNA Matters for Social Equality". Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com

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Yanis Varoufakis is a vocal critic of capitalism. He is a Greek academic, writer, and politician – as former Minister of Finance, led negotiations during the government debt crisis of 2015. But even as the founder of the left-wing political party MeRA25 (European Realistic Disobedience Front) in 2018, he laments the bankruptcy of today’s left.

He describes capitalism as a contradiction with immense advantages (innovation, wealth, gadgets, technologies) but also with an inherent tendency to cause aesthetic, moral, psychological, and financial poverty. Luigi Zingales and Bethany McLean sit down with Varoufakis to understand his diagnosis of the ills of capitalism, not as an unjust system but one that is inefficient and freedom impeding. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com

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Increased polarization in America has meant more political homogeneity across our digital, social, and civic spaces. But what about our workplaces, where so many Americans spend a bulk of their time?

Associate Professor of Finance at Chicago Booth, Elisabeth Kempf, has new data and research out looking at political alignment within corporate executive teams, and whether or how much it has increased over time. We sit down with Elisabeth to understand the factors which could be influencing this trend, legal structures that may or may not protect against discrimination based on political views, executive departures that may be politically motivated, and why we might care about political diversity in the workplace at all.

Link to paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3784969 Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com

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