Marc Andreessen is the brains behind the Mosaic web browser, that paved the way for the web interfaces that made the Internet useable. He’s, quite rightly, a billionaire. You could even say he has delivered a social surplus, in that we have all benefited from his invention to a value many more times than we was rewarded with personal income. Well done to him. But his belief that technology is unbounded is way off the mark. In a recent blog post – The Manifesto on Techno Optimism – he argues that technology has solved all of mankind’s problems so far, and it will continue to. Once we have resolved the constraints of energy, with fusion for example, we will be able to increase consumption a thousand times over, thanks to the unbridled benefits of technological development. Phil wonders whether we want so much more than we already have, whilst Steve says his manifesto is a fast track to destroying the planet. Maybe that’s why we are planning space flights to Mars.

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Entrepreneur Nick Hanauer says he is one of the richest 0.1% of people, but he’s a defender of the people. That’s why he’s exposed the lies we are fed in his latest book ‘Corporate bullshit - exposing the lies and half-truths that protect profit, power and wealth in America’. Once you realise it’s not about facts, it’s about power, it changes how you engage with the information fed from these companies. But, not only do these companies have power, they also have the influence that can convince thousands of others to do their bidding for them. Often playing on people’s self-interest. Nick’s hope is that his new book will alert more people to the techniques used by corporations to convince us that their self-interest is for the good of everyone. Even if they die of cancer I the process. Or the planet is ravaged by the impact of climate change. Nick joins Phil and Steve to talk about the book and what he hopes to achieve through it.

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A simple challenge on the podcast this week – how do you fix world poverty? When he was President of the World Bank Jim Yong Kim set a target of ending world poverty by 2030. In 2019 just 8.4 percent f the global population were living in extreme poverty. Sadly, the pandemic added another 70 million people live below the extreme poverty line, lifting it to 9.3 percent of the global population. World leaders seem more intent on fixing the short-term issue of illegal migration rather than fixing the core issue of why people are escaping to the west. This week Phil and Steve discuss why some countries are poor and what we can do about it.

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Rishi Sunak is seemingly proud to have cancelled the only real nation building project Britain has had for decades. Instead, the money will be spent on sticking-plaster solutions to existing infrastructure, without any business case or overarching strategy. The reason? It all got too expensive. The other reason, Mr Sunak obviously thinks it’s a vote winner and he is well behind in the polls. This week Phil asks what’s happened to the £25 billion that has already been spent. The answer, of course, is that it has been pumped into the broader economy, aiding economic growth well before anyone enjoys the benefits of the completed project. There’s discussion about why public sector investment doesn’t need to undergo the rigorous cost-benefit analyses of private projects and why the UK is so bad at delivering large scale engineering projects. Will we see any visionary engineering feats again in our lifetime?

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Economists like to believe human behaviour is predictable. Otherwise, they probably wouldn’t have a job. Steve Keen argue that we do tend to behave like the rest of the herd, but how many herds are there? Phil asks if economists need to develop the sort of demographic segmentation modellers that marketers use? It’s certainly a long way from the basic assumption that we all act the same – as one representative agent, driven by fear and greed. But if we develop a more sophisticated approach, predicting behaviour for a number of segments of society, wouldn’t we arrive at a model so complicated, so full of assumptions, that it renders the model useless? In other words, can we ever really understand the psychology of human behaviour?

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Liz Truss is back. She kept a fairly low profile after very short tenure as the UK Prime Minister, but popped up again for a speech at the Institute for Government, arguing that she was right about supply side economics and the need to fight against 25 years of economic consensus. She seems to think if everyone had read Milton Friedman the world would be a better place. There’s no surprise that Steve Keen disagrees with almost every point Truss made, but the law of averages suggests she must be right on some things. Phil and Steve analyse the speech and look for some bits of it that might actually be worthwhile. Whilst, of course, dismantling the rest of it.

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The US dollar is creating real problems right now. Speculators are buying it up as US Treasuries (bonds) offer higher yields at lower prices than other forms of sovereign debt. US shares are also proving popular as talk of a US soft landing intensifies, suggesting they’ll be more scope for company growth in the US than just about anywhere else. All of that is adding to the strength in the US dollar, which is weakening the value of other currencies. That means other countries pay more for importing goods, adding to the inflation that central banks are trying to bring down. It’s a scenario that wasn’t foreseen by Friedman when he advocated for floating exchange rates. He believed floating exchange rates would balance out terms of trade, but clearly that’s not happening. So, Phil asks Steve this week, is there a case for some form of capital controls, or other restraints on the flow and value of currencies?

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There’s a vain hope in investment circles, and amongst politicians, that we can still enjoy economic growth on the road to NetZero. There are those who believe that we can decouple our economic growth from our consumption of fossil fuels. In other words, we can continue to enjoy growth driven capitalism whilst avoiding the impacts of catastrophic climate change. Steve Keen is less convinced. He fits into the zero-growth camp, where the only way to reduce our impact on the planet is to stop increasing our consumption. So, what would that look like? For many people it might not be too different to life now, with vast segments of the population seeing their wages falling and living standards reduced. But the top echelons of society would feel the difference. Also, how do companies innovate if they lose the profit motive. And isn’t it all part of some global conspiracy for a new world order controlled by the elite, led by Bill Gates, who is merely a puppet for shape shifting reptilians working to destroy humanity?

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Are we earning too much? Many of us are now spending less than we earn on day-to-day consumption items We’re putting our excess income into our future earnings, through our pension funds, who use a chunk of that the money to buy non-productive assets, liking investing in shares on the secondary market, to no-benefit of the companies we invest in. Phil talks to Steve about why we have this imbalance between earnings and spending when, at an aggregate level, our income should equal our productive outputs. The difference is, of course, that we borrow a great deal, particularly to buy a house. It’s this reliance on borrowing which is increasing our consumption beyond the outputs we provide to the economy. And we borrow more than we can afford on the assumption that house prices will rise. So the question isn’t whether we should earn less, but whether we should borrow less.

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If he managed to stay out of gaol and makes it to the White House, Donald Trump has proposed a flat 10% tariff on all goods coming into America. He’s called it the Ring Around the Collar of America – which has led some to suggest the policy is a nasty stain that will be difficult to get out. But as phil Dobbie discovers, Trump has one supporter in the shape of Steve Keen. Steve talks from Hungary, where he is currently on assignment, suggesting this form of protectionism will be good for America. But will it come at the expense of GATT (the General Agreement on Trade and Tariffs). Could we be entering an era when all nations are imposing trade barriers and the prospect of free trade disappears. “I won’t be shedding any crocodile tears over that,” says Steve. Listen in to see why Steve is a Trump supporter on this particular issue.

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