This episode explores the concept of "marketcraft," defined as policymakers harnessing private markets to achieve public goals. Against the backdrop of a historical analysis of American economic policy, the discussion reveals a long-standing, bipartisan practice of government intervention in shaping markets, often in response to crises like the Great Depression. More significantly, the conversation delves into the recent resurgence of marketcraft debates, particularly concerning the role of big tech and the increasing bipartisan interest in antitrust actions. For instance, the interview features insights from Chris Hughes, a Facebook co-founder, who discusses his book "Marketcrafters" and the evolving relationship between the private and public sectors. The discussion also touches upon the potential threats to the dollar's status as the global reserve currency and the need for stronger institutions to manage economic challenges. In contrast to the view that market forces self-regulate, the interview emphasizes the necessity of proactive government intervention to achieve desired economic outcomes, illustrated by examples such as the development of the 30-year mortgage and the semiconductor industry. This means for the future of economic policy is a potential shift towards a more active role for government in shaping markets, particularly in addressing issues like the cost of living crisis and the development of artificial intelligence.
