Noah Smith, an economist who writes at Bloomberg View and on his personal blog, makes his second appearance on Alphachat. Economics methodology is a frequent subject of Noah’s columns, and I was keen for a podcast segment appraising how economics has evolved since the crisis. Among the issues discussed:
Our guest for this episode was Erica Grieder, a journalist and author of Big, Hot, Cheap, and Right: What America Can Learn from the Strange Genius of Texas. The state of Texas is often stereotyped and thus easily misunderstood. But its economic model — low taxes, light regulation, not much spending on public services — appears to have worked quite well for it. The model allows for meaningful exceptions such as an industrial policy that privileges the interests of businesses and entrepreneurs, and it includes a willingness to learn from earlier mistakes. One example was the implementation of tight restrictions on mortgage lending in response to an earlier lending bust, allowing Texas to escape some of the worst consequences of the recent housing crisis.
Alphachat’s guest this week was Martin Sandbu, economics writer at the FT and author of the daily Free Lunch newsletter, which we highly recommend. Martin has written extensively about both the appeal of a Universal Basic Income and the ways in which economics should re-orient itself in the wake of the financial crises and deep recessions of the past decade. We asked Martin to join us for a chat about UBI and other ideas in economics that once would have been considered radical or excessive, but which now are the subject of serious debate. We focused especially on the potential for these ideas to directly alleviate problems in the labour market and regional inequalities.
Our guest for the entire episode was Steven Johnson, author of the new book Wonderland: How Play Shaped the Modern World, a new history of how our amusements — the things we do and see for pleasure, wonder, enchantment — often have astonishing effects in the more serious realms of life much later on.
Michael Mauboussin, head of global financial strategies at Credit Suisse, joins us again to discuss his recent paper, Thirty years: The ten attributes of great investors. The paper is a reflection on much of what Michael has learned about investing throughout his career, and how the investment landscape has changed over time. Michael thinks deeply about epistemological issues and cognitive biases. One of his books, The Success Equation, is about the difficulty of untangling the roles of luck and skill in our lives. Here’s an excerpt from the opening to the paper:
Our guest on this week’s show is Joe Weisenthal, executive editor of Bloomberg Markets and co-anchor of the TV show, “What’d You Miss?”. The topic of our chat was Joe’s excellent piece on how Donald Trump’s use of language — simple, visual, repetitive, bellicose — fits so well into a new “post-literate” age.
Mary Childs and Alex Scaggs join me this week to discuss the tax plans of the two US candidates for President (yes, we fully acknowledge that one of those two campaigns is currently disintegrating). Then we discuss Brexit and the pound, including an extended chat about the market structure of FX trading. A few links referenced in the chat:
Tim Harford joined me to discuss his latest book, Messy: The Power of Disorder to Transform Our Lives. This was a deeply engaging and fun conversation. Messy is the best longform manifestation yet of Tim’s knack for revealing counterintuitive truths, using social science and original interviews to find the underlying sense in our lives that we often fail to see — and thus fail to appreciate. Here’s an excerpt from Tim’s article in this weekend’s FT Magazine about the concepts in the book:
Ryan Avent is the Free Exchange columnist at the The Economist and the author of The Wealth of Humans, a new book about the challenges and opportunities presented by a world of labour abundance. (Mostly the challenges.)
Dan Drezner, professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University, joins Mary Childs and me to discuss his recent paper for Brookings, Five Known Unknowns about the Next Generation Global Political Economy. And he stuck around for a brief chat of the foreign policy views of Hillary Clinton and Donald Trump. Here’s an excerpt from the introduction to Dan’s paper:
Arlie Russell Hochschild, a sociologist at Berkeley, spent five years in the Louisiana bayou researching her new book, Strangers in Their Own Land: Anger and Mourning on the American Right. An excerpt from the book was published in Mother Jones last week, and we spoke to her on the phone just before the Labor Day break. I’ll write more about the interview and about Trump supporters in a later post.
Canada has a finely cultivated and, for the most part, well-deserved reputation for openness and cosmopolitanism. The existence of Supply Management — the country’s aggressively protectionist and anti-competitive system of production quotas and import tariffs for its dairy, poultry, and egg industries — thus appears starkly out of place. About a month ago Canadian expat George Pearkes, a macro strategist at Bespoke, pointed us to the Supply Management Wikipedia page page, where we learned of the remarkably high tariffs on imported cheese (nearly 250 per cent for imports above the allowable quota) and butter (nearly 300 per cent).
We’re in the peak of the summer markets lull, so in this week’s Alphachat Izabella Kaminska and co-hosts Thomas Hale and Gavin Jackson from the FT’s capital markets desk turn film reviewers as they experiment with bringing economically and financially themed analysis and insight to some well known movie classics. In oblique homage to the Jean-Luc Godard dystopian cult film classic FT Alphaville shares its name with — a tale of what happens when you let computers design economies and societies — the maiden review dives deep into the computer-generated worlds of Tron and Tron Legacy. It’s a new thing. If it’s a thing you’d like to hear again, what films should we look at next? And what sort of names should we invite to help us review films in the future (ideally from the economic, financial or business world)?