Uncommon Knowledge

The American economy’s biggest problem is growth. To achieve growth, Hoover Institution fellow John Cochrane argues, America needs to simplify the tax code and deregulate the economy. He discusses how government agencies must conduct serious, transparent, and retrospective cost-benefit analyses, get rid of special interests, and remove disincentives if they want businesses to flourish. Cochrane notes that the US economy needs more innovation, deep tax reform, and better regulations to unleash growth. When business owners can depend on good policy and not pay for play, they will start and invest in their companies and the economy will expand. Cochrane discusses the future of American economic growth and how he believes it can be fixed. Cochrane encourages us to have more faith in democracy because if the right policies are put in place the economy will quickly improve and everyone will be better off. According to Cochrane, "America needs better policy and governance under the rule of law." He also discusses the benefits of lowering and even ending corporate taxes to reduce price inflation and outsourcing jobs overseas. Cochrane points out that the ability to bring people together to get good bills through is what a great politician like Lincoln did; it is hoped that the next president will do this. Robinson and Cochrane further debate technological innovation, the role of robots in the economy, and whether Americans need to be concerned about robots taking over our jobs.

Hoover Institution fellow Thomas Sowell discusses inequality and how it is part of the human condition. Sowell notes that political and ideological struggles have led to a dangerous confusion about income inequality in America. We cannot properly understand inequality if we focus on the distribution of wealth and ignore wealth production factors such as geography, demography, and culture. What is important is not inequality but human capital; once human capital is unleashed it creates an enormous amount of wealth for people of all classes. In addition there needs to be a sense of humility and gratitude for the generations that have gone before us for the prosperity we have today.

Hoover Institution fellows Terry Moe and Peter Robinson have a lively discussion on whether the Constitution is outdated and thus incapable of dealing with societal and structural problems facing government today. For example, immigration has been broken for decades, yet Congress has been incapable of passing new laws to keep up with the reality of the needs in the twenty-first century. So we have an immigration policy that does not make sense and laws that are not being enforced. To solve this, Moe would shift power in the direction of the president so the president could make a proposal for fast-track legislation: Congress would then vote up or down, thus expediting immigration reform. This shifts legislative power to the president so he or she can participate in passing laws that make sense for a functioning and productive society.

John Hennessy discusses his tenure as president of Stanford University and how he helped make it into an elite school: encouraging technological innovation on campus, working on ideas that push humankind forward and maintain academic excellence, and having one of the best athletic programs in the country. Hennessy notes that one key to Stanford’s success is building quality infrastructure around interdisciplinary themes in a cross-disciplinary space, making it possible to fire up smart people and challenge them with colleagues from varied backgrounds to develop innovative ideas and solutions to some of the world’s most complex problems.

James Buckley discusses his life and upbringing as well as the genesis of Firing Line and the success of his brother Bill. James describes Bill as a fresh spirit who wanted to meet all types of people and listen to different viewpoints. Bill loved a good debate. James notes that his parents were literate and that education and speaking well were important. They trained their children to work hard, be genteel, and listen to the other side. James notes that we make progress in society, such as during the Reagan years, if someone can demonstrate the causes and effects of socialist-type policies so that people are more apt to understand, embrace, and thrive in the free market. James ends by saying that although we may become pessimistic about the American experiment, hope is always around the corner because virtue and good sense reside in the people.

Each branch of the federal government has strayed from its original purpose and no candidate for president will be able to fix the underlying issues that plague it. Governor Abbott makes his case for proposing a Convention of States to make amendments to restore constitutional order.

General Jack Keane briefly describes the history and rise of ISIS and its aim in the Middle East. Keane then discusses the concrete steps America should take to defeat ISIS, including partnerships with Sunni tribes and a more comprehensive air war.

In Part II of our interview with Charles Koch, he covers politics and the role of corporations in our society. Koch, making the case to end corporate welfare, tells us what he admires about Bernie Sanders and why he is less sanguine about President George W. Bush. He also believes technology can be used to promote free market ideals over democratic socialism, especially for the younger generation.

Charles Koch discusses his journey, from engaging in manual labor as a youth to attending MIT and working as a consultant. Having learned the principles of classical liberalism through his education and work, he now applies those principles to building and managing Koch Industries. He attributes much of his success to creating value for others and operating with integrity.

From members of Congress more concerned about reelection than debating the real problems to a president espousing post-constitutional ideas, Americans need a renewed understanding of the Constitution. Senator Sasse discusses the issues plaguing Congress and how the current president ignores the Constitution when it suits him. However serious the challenges that America is facing, Senator Sasse believes it is not too late to restore the Constitution and thus Congress.