Here is the audio and transcript. Here is the summary opener:
Not only is Ben Thompson’s Stratechery frequently mentioned on MR, but such is Tyler’s fandom that the newsletter even made its way onto the reading list for one of his PhD courses. Ben’s based in Taiwan, so when he recently visited DC, Tyler quickly took advantage of the chance for an in-person dialogue.
In this conversation they talk about the business side of tech and more, including whether tech titans are good at PR, whether conglomerate synergies exist, Amazon’s foray into health care, why anyone needs an Apple Watch or an Alexa, growing up in small-town Wisconsin, his pragmatic book-reading style, whether MBAs are overrated, the prospects for the Milwaukee Bucks, NBA rule changes, the future of the tech industries in China and India, and why Taiwanese breakfast is the best breakfast.
Here is one excerpt:
COWEN: Why should I want a tech device in my home at all? Take Alexa — I don’t have one, I’m pretty happy, my life is simple. I don’t want anyone or anything listening to me. What does it do for me? I know I can tell it to play me a song or buy something on Amazon, but that’s one-click shopping anyway, could hardly be simpler. Why do devices in the home have any future at all?
THOMPSON: The reality is — particularly when it comes to consumer products — is that in the long run, convenience always wins. I think people will have them in their homes, and they’ll become more popular because it’s convenient.
You can be doing whatever you want; you can say something like, “Set a timer five minutes,” or “What temperature should I grill my steak to?” And you’ll get an answer with your hands busy, and altogether it’s going to be a more convenient answer than it would’ve been otherwise.
COWEN: How bullish are you on India’s tech sector and software development?
THOMPSON: I’m bullish. You know, India — people want to put it in the same bucket as, “Oh, it’s the next China.” The countries are similar in that they’re both very large, but they’re so different.
Probably the most underrated event — I don’t want to say in human history, but in the last hundred years — is the Cultural Revolution in China. And not just that 60, 70 million people were killed, or starved to death, or what it might be, but it really was like a scorched earth for China as a whole. Everything started from scratch. And from an economic perspective, that’s why you can grow for so long — because you’re starting from nothing basically. But the way it impacts culture, generally, and the way business is done.
Taiwan, I think, struggles from having thousands of years of Chinese bureaucracy behind it. Plus they were occupied by Japan for 50 years, so you’ve got that culture on top. Then you have this sclerotic corporate culture that the boss is always right, stay in the office until he goes home, and that sort of thing. It’s unhealthy.
Whereas China — it’s much more bare-knuckled competition and “Figure out the right answer, figure it out quickly.” The competition there is absolutely brutal. It’s brutal in a way I think is hard for people to really comprehend, from the West. And that makes China, makes these companies really something to deal with.
Whereas India did not have something like that. Yes, it had colonialism, but all that is still there, and the effects of that, and the long-term effects of India’s thousands of years of culture. So it makes it much more difficult to wrap things up, to get things done. And that’s always, I think, going to be the case. The way India develops, generally, because they didn’t have a clear-the-decks event like the Cultural Revolution, is always going to be fundamentally different.
And that is by no means a bad thing. I’m not wishing the Cultural Revolution on anyone. I’m just saying it makes the countries really fundamentally different.