Sean Speer interviews Andrew Potter. Potter sets out his case:
“Here are the factors. One is what Tyler Cowen, the economist, calls the “great stagnation” to convey the three- or four-decade-long stagnation in technological development, innovation, and economic growth that has been going on since the 1970s.
Second, I think Benjamin Friedman, the economist, doesn’t get enough credit for connecting the dots between economic stagnation and its socio-political effects. He wrote a really interesting book about 15 years ago called The Moral Consequences of Economic Growth, where he says, “Look, growth is great not just because it gives you stuff and raises your standards of living, but it also makes you better people.” That is, it makes you more open to immigration, more tolerant and open to diversity, less risk-averse, and generally less fearful about the future. In effect, it makes you more cosmopolitan and less Hobbesian about the world.
This points to the other key factor in what is going on, in addition to the “great stagnation”, which is almost a downstream effect, which is the rise of conservative populist politics. Right-wing populist politics is, in many ways, a consequence of economic stagnation, including in household incomes.
A third element is the rise of the internet and social media, which a lot of people thought was going to amplify productivity and democracy, but which has had the opposite effect. I used to be pretty optimistic and even cavalier about the effect of the internet on our civil discourse, but now I’m very, very pessimistic.
So, together with a stagnating economy, the rise of populist politics, and the toxic effects of social media, you get this toxic brew of lack of trust: lack of trust in institutions, a lack of trust in experts, and a lack of trust in one another.
Finally, there is another element in all of this, which J. Storrs Hall, an engineering sort of tech guy, reflected in his book, Where Is My Flying Car?: A Memoir of Future Past, where he argues, “The great stagnation actually became the great strangulation.” That is, what’s standing in the way of growth is not the fact that we just plucked off the low hanging fruit and we can’t figure out new sources of economic growth, but it’s because we’ve buried our economy in a big mass of regulations and risk-averse bureaucracies. So even if we could resolve the political problems that have arisen in the last few years, there’s a more longstanding issue about whether we’re even capable anymore, as a society, of getting anything done.”
The Hub bears watching.