Ken Langone, Adam Smith, Glenn Hubbard discussed on Bloomberg Wall Street Week

Automatic TRANSCRIPT

Than walls to protect workers that we really need In the wall and the bridge Hubbard proposes a series of private and government programs to help workers build a bridge to the future Because in the end even painful change is essential to capitalism which echoing Ken langone is the system that in the long run will do the most people the most good which works better for everybody And there's no doubt in my mind capitalism And we're delighted to be joined now by one of our regular contributors here on Wall Street He's Glenn Hubbard former chairman of the council economic advisers certainly of Columbia business school And most important for this purpose the author of the new book the wall and the bridge Glen thank you so much for being back with us It's a fascinating book An important book In reading through it I have the strong sense part of your motivation was you have some concerns for the future of capitalism Because to some extent inherent in capitalism is a dynamism and a creativity that can lead to some destructive qualities I think that's a 100% right data You know it's like a coin with two sides economists policy makers business people we often talk about the growth and dynamism side of capitalism that's why we're in the game It's hugely important The flip side of its disruption on many of us frankly most of us win from a lot of the disruptions I talk about in the book but not everybody And I think we have to notice those who have been left behind and figure out how do we get everybody to be able to participate in our economy not a new idea It was actually Adam Smith's idea We need to put the liberal back in neoliberalism Classical liberal that is awesome Let me ask you Glenn as an economist Dynamic capitalism inherently lead to increasing inequality I don't know about that but it certainly needs to generate churn and disruption You know many jobs and industries that exist today didn't exist a hundred years ago That's the good news The flip side of that is that people's livelihoods communities firms and industries can be at risk That too is not a bad thing as long as we prepare people You know when that was talked about the wealth of nations he talked about competition and openness And those are good things But I think if Smith were alive today he would talk about the ability to compete in the world we have with technological change in globalization Is everybody really at the starting line I think that's the inequality that would have worn SNP and should worry us Glenn in your book there's a lot of talk about dynamism creativity innovation and how important that is For a society for growth and for the individuals in it At the same time you have a distributive notion as well called mass flourishing that you actually go back to Adam Smith and say man as was consistent with Adam Smith talk to us about mass flourishing Well man's flourishing is more than GDP You know when Smith wrote the wealth of nations there was no GDP although he did talk about maximizing the size of output I also think that the smith of the theory of moral sentiments where he used an expression mutual sympathy and today we might call empathy I think the right economic ideas everybody in the world everybody participating everybody flourishing into the minds of the classical economists flourishing meant participating in the economy the ability to have meaningful work And I think that's really what the book is about How do you build bridges to that kind of work A bridge either takes you to somewhere or brings you back and taking you two could be preparing you for the jobs of today and tomorrow and taking you back is rethinking social insurance Do you have a way to reconnect people who fall out of the boat to the boat What if you knew for a certainty that in order to have truly mass flourishing you had to give up some of the dynamism Would you make that trade I wouldn't and that's the point of the book I think there are a number of people that I note in the book that Adam Smith with school if he were here today It suggests that you can just sort of haircut dynamism The real issue is compensating people who have been left behind We have old expressions in economics the same professor who told you that trade is good or technological advances are good He or she also told him that's because the gainers can compensate the losers And by compensation what I talk about is not writing people check or pinching them off But investing in getting people connect preparing people for work and preparing people who got left behind That's something we used to do in the country The land grant colleges of the 19th century the GI Bill of the 20th century I suggest ways we can bring those life to life today Glen Hubbard thank you so very much He's the author of this terrific fascinating and really important new book The wall in the bridge of course.

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