The Lunar Society

Key Takeaways

The study of economics is a way of carrying forward big ideas about the world
The best economists have real depth and breadth in their work
Risk aversion is context-dependent
The emergence of AI agents will show that Hayek was right about how decentralized systems evolve
When a nation allows for free trade, a shockingly high percentage of the productivity gains come from the worst firms being bankrupted by the free trade
“My worry is that energy becomes too cheap and people, at very low cost, can destroy things rather easily.” – Tyler Cowen
In the coming world of AI, effective people will segregate their tasks in a way that reflects their comparative advantage; this will lead to a bifurcation of personal productivity

It was a great pleasure speaking with Tyler Cowen for the 3rd time.

We discussed GOAT: Who is the Greatest Economist of all Time and Why Does it Matter?, especially in the context of how the insights of Hayek, Keynes, Smith, and other great economists help us make sense of AI, growth, animal spirits, prediction markets, alignment, central planning, and much more.

The topics covered in this episode are too many to summarize. Hope you enjoy!

Watch on YouTube. Listen on Apple Podcasts, Spotify, or any other podcast platform. Read the full transcript here. Follow me on Twitter for updates on future episodes.

Timestamps

(0:00:00) - John Maynard Keynes

(00:17:16) - Controversy

(00:29:43) - Fredrick von Hayek

(00:47:41) - John Stuart Mill

(00:52:41) - Adam Smith

(00:58:31) - Coase, Schelling, & George

(01:08:07) - Anarchy

(01:13:16) - Cheap WMDs

(01:23:18) - Technocracy & political philosophy

(01:34:16) - AI & Scaling

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Tyler Cowen - Hayek, Keynes, & Smith on AI, Animal Spirits, Anarchy, & Growth

Podcast Notes Playlist: Business