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The Limits of Abundance

A new consensus is emerging, or maybe an old consensus is reemerging, within the Democratic Party: namely, that “it’s the economy, stupid.” The party can no longer win on “defending democracy,” protecting rights to abortion and same-sex marriage, and modest defense of preexisting welfare and entitlement programs. The neoliberals who once trafficked in cultural policing have returned to insisting that, when Democrats open their mouths, it should be to say something about the economy. But what should they say? For these newly politically conscious Democrats, this is the difficult part, and this is the backdrop of the furious “abundance debate” consuming left-liberal circles since the debut of Ezra Klein and Derek Thompson’s much-talked-about book…

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Relearning Adam Smith’s Lessons on Trade

Smith des­paired of ever returning to a premercantile system precisely because of the problem of corporate capture. Thanks in no small part to his own efforts, he was wrong. But in reducing The Wealth of Nations to a polemic against tariffs, we have managed to end up exactly where he did not think we should be: allowing corporate interests to wield too much influence over government and undermining the public interest as a result. Nearly a quarter of a millennium after Smith first identified the problem, we are, in a sense, back to where he started. But just as we overcame the infamous abuse of the monopolists who prevailed in earlier times, so can we overcome them again today, as long as we recognize the true nature of the problem. It’s not tariffs: it’s power…

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Coming to Terms with Fiscal and Trade Deficits

U.S. trade deficits measure the gap between the income generated at home and the amount spent on consumption and investment. Without the U.S. government’s deficits, spending demand would have been lower and, unless the trade deficit fell by the same amount, domestic output and employment would have fallen. As the United States had a structural liquidity trap, either the trade deficit had to fall, unemployment had to rise, or the United States had to run a large persistent budget deficit. The decision made in favor of budget deficits was not because they were welcome; rather, the alternatives seemed either unattainable in the case of lower trade deficits, or unbearable in the case of unemployment. It is, however, a policy that is no longer viable, because the rate at which the national debt is rising is much faster than the trend growth rate of national income…

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The Future of Housing and the American Family: A Virtual Forum

Too often, discussions of housing policy and land use ignore families—which are increasingly disappearing from cities—and focus on studio apartments for young urban professionals. At the same time, conservatives focused on cultural issues can sometimes overlook practical policy interventions such as zoning reform that might attract broad popular support and support families. Can these factions find common ground on…

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It’s So Over, We’re So Back: Doomer Techno-Optimism

Prophets and their warnings arise in times of peril, and the arrival of the doomer techno-optimist discourse is fortunate. Simply put, we needed the wake-up call. Yet, if the first step to fixing a problem is admitting you have one, then the second step is actually doing something about it. To that end, what is needed from the next phase of contributions to this discussion are proposals to reboot science and generate breakthroughs, policies to create an environment in which transformative growth is possible, and new economic analyses that more accurately account for the role of technology in growth. In fact, doomer techno-optimists have an opportunity to take their unique blend of harsh reflection on the present and bold vision for a sci-fi future and fuse it with creative and actionable proposals to realize such ambitious dreams. What strategies could the doomer techno-optimists propose? Perhaps the most important approach would be to involve government as a “market maker”…

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Rewriting the Californian Ideology

In this sense, tech today is less Jeffersonian than the first Californian Ideology suggested, celebrating the hacker, the dropout, and the lone builder, with the profound skepticism of centralized power entailed by these archetypes. It is arguably more Hamiltonian, focused on building state capacity at the national level. Whereas the old Californian Ideology captured the liberating power of technology, the new one affirms its constructive power. Tech’s social capital may be uneven, but its intellectual capital is growing. It is generating new ideas faster than most institutions can absorb them. Its ideological adolescence may still be bumpy, but the outlines of maturity are clearly visible, and only getting sharper as they are battle-tested in the political arena. Tech is well-positioned to usher in a new era of thinking and working. In tech’s model of the world, change is assumed to be a constant, and individuals are prized for their ability to invent and build us out of any crisis…

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Democracy’s Demons

Following her defeat in the 2016 general election, Hillary Clinton published a book titled What Happened. While that tome is not considered a classic work of political analysis, its implied titular question animates a good deal of writing about politics these days, including two books released over the past year: Zack Beauchamp’s The Reactionary Spirit and Quinn Slobodian’s Hayek’s Bastards. Both books are attempts to grapple with the significance of the political energies of which Trump’s initial victory was both cause and effect. And each is in different ways trying to articulate a conceptual vocabulary to describe the associated movements for which terms like “conservative” and “right-wing” seem inexact or insufficient. Nonetheless, neither is entirely successful in their attempts, for the same political changes they seek to understand have a way of resisting the categories imposed on them…

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Renewing the Democratic Party

The Democratic Party has lost its way. A party whose very purpose has been to fight for working families has forfeited their trust and confidence. The losses are most obvious among white working-class voters. The self-flattering story Democrats have told themselves is that rising white racism explains the defection of white working-class voters. But that simple story was always undercut by data showing white racism has declined, not increased, in recent decades. And the fable was further undermined in the 2024 election by the defection of many Hispanic, Asian, and black working-class voters as well. What went wrong for the Democrats, and what can be done about it? At a time when the life prospects of Americans are increasingly shaped by economic class, not skin color or gender, Democrats have moved in the opposite direction and time and time again prioritized racial and gender identity…

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The Limits of Consumption Deepening: Why Consuming More Makes Us Poorer

Today’s consumer capitalist societies present us with a paradox: We are told year in and year out that living standards are rising, but many people—especially younger people—can feel their quality of life decline as time goes on. This feeling is palpable and can be seen in the hardest of the quality of life indices, such as the suicide rate and the rates of drug addiction and overdose. Noneconomic measures show a large decline in quality of life in recent years, but economic metrics show it is increasing. The old Marx Brothers phrase comes to mind: “Who are you going to believe, me or your lying eyes?” It is time for economists to admit that their metrics are broken…

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