Innovation Matters

Innovation Matters a podcast of the United Nations Economic Cooperation and Integration Group interviews me on matters related to innovation.

If productivity growth had continued on the WWII-1973 track we would today be living in the world of 2097 rather than the world of 2024.

The education sector in the United States is underdoing a revolution. Since the pandemic we have had millions of children start homeschooling, private education with vouchers and charters are exploding. I hope with AI we can give every student a personal tutor, one who never gets tired, never gets grumpy.

In my view we should be subsidizing degrees with the greatest externalities and yet we are subsidizing degrees with the lowest wages and smallest externalities and we expect innovation out of that…no way, it’s not going to happen.

The US is a welfare-warfare state. We spend a tiny amount on innovation.

There can be multiple equilibria. If you focus on redistribution you can get low growth and then it makes sense to focus on redistribution because that is the only way to get more. But if you focus on innovation you can get high growth and then people are much less concerned with redistribution. Both equilibria can be stable. Which do we want?


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