The transcript is here, with a podcast version, and there is also a YouTube version at the link, with cleaned-up audio compared to any earlier link you may have come across. Luigi was wonderful, and also fantastically witty. The topics included Italy, Donald Trump, Antonio Gramsci, Google and conglomeration, Luchino Visconti, Starbucks, and the surprisingly high productivity of Italian cafés.
Here is one excerpt:
I don’t understand why in the United States the only thing that is really noncompetitive is sports. In Europe, the only thing that is really competitive is sports.
COWEN: …Angela Merkel, overrated or underrated?
ZINGALES: I think she’s probably underrated. I’m impressed by her ability to, number one, run Europe for the interest of Germans in a very effective way.
The longest bit from me is where I compare and contrast Luigi with Gramsci, another theorist of hegemony, and try to sum up Luigi’s work; you can find that on the video or in the transcript.
And again from Luigi there is this:
…when I arrived in this country 27 years ago, you were not really drinking coffee. You were drinking a dark thing that tastes like I don’t say what because we’re online. The culture of coffee did not exist here.
The culture of coffee and a café where you seat and drink, et cetera, what Starbucks is, is an Italian or at most French culture. Why were you unable to export this? This is my little explanation. By the way, the only country in the world where Starbucks has not arrived is Italy.
Luigi then considers when Italian coffee is better tasting and better run at the artisan level, yet without the same possibilities for corporate expansion. I liked this sentence from Luigi:
The extreme agency problems of Italy make it difficult to scale firms.
One thing I can predict fairly confidently is that we are not going to pay the debt.
This is also a worthwhile observation:
When you’re down to one or two kids, the chance that one is an idiot is pretty large.
His favorite film is Visconti’s The Leopard, a good pick. And he was the public choice scholar who forecast the rise of Donald Trump, as we discuss in the chat. Self-recommending.