Here is the audio, video, and transcript.  Here is the episode summary:

Daron Acemoglu returns for his second appearance with a new book, What Happened to Liberal Democracy?, which Tyler reads as an attempt to redefine and revitalize liberalism for our times. Where Daron’s first visit was about how states and societies contend for the narrow corridor in which liberty survives, this one asks what liberals themselves got wrong, and the answer implicates the educated elite—that is to say, you.

Tyler and Daron discuss what’s wrong with social contract theories and Rousseau’s general will, whether Acemoglu is more objectivist than Rorty, why he blames left liberalism’s own establishment power for its collapse, what standard is left once you refuse to have a book of higher values, nondomination versus noninterference, who counts as working class, why automation alone will not lead to widespread prosperity, how he can call himself a free speech absolutist while wanting to regulate social media, why he worries we’ve given up on educating Americans, whether teachers’ unions need to be reconstituted, what the life expectancy for an educated twenty year old is today, whether open-source models undercut the centralization worry, what pro-worker AI actually means, why the fertility crisis leaves him strangely close to a real business cycle position, whether AI will raise his own already prodigious paper output, why Armenia has disappointed economically, what he wants to learn next, and more.

For an excerpt, let us start from near the beginning:

COWEN: Richard Rorty had a consensus-based defense of liberal democracy. Is your view the same as his, or are there some metrics along which it’s different? Are you more objectivist in some way?

ACEMOGLU: I wouldn’t say it’s more objectivist. I think my commitment in my mind has always been that it’s impossible for us at any point in time not just to know what’s really the absolute truth, but also to have a clear map of what is the right stance. In the same way that I think many people would agree science makes gradual and sometimes uncertain progress toward some better understanding, I think morally, philosophically, we also have to have gradual uncertain evolution toward what we agree on. Objectivism, in some sense, is too strict.

COWEN: Say we’re not evolving toward greater agreement.

ACEMOGLU: No, sometimes we go back.

COWEN: Today, it seems we’re not evolving toward greater agreement, right?

ACEMOGLU: We’re not. Absolutely not. I think you can blame that on reactions to globalization, reactions to technology, better authoritarian challenges. This is the most uncomfortable part because I see myself firmly within the left liberal tradition. I think it’s partly because of the failure of left liberalism. In some sense, if you think of why did Rome fail or collapse, we can tell a story about the barbarians were really too strong. No, really, Rome collapsed because internally it had problems that opened up weaknesses against outside invaders as well as some inside problems.

It’s the same with left liberalism. I think it became quite influential throughout much of the Western world and some of the emerging economies as well over the last 70, 80 years. It did not use that establishment power just in the right way, creating its own weaknesses that made it much more vulnerable to outside attacks. That’s why I think we are now going back because we are at an interregnum period in which ideas are battling again. In some sense, it’s just like the early 19th century where you had all these very different ideas and they were trying to get a toehold in the imagination of people. I think we are going through a period like that, except that there are really many more confusing ideas out there.

COWEN: Say when we’re not evolving toward greater consensus, what’s the external standard you introduce to judge which are the correct ideas and which not? Like Rorty, you need one, though.

ACEMOGLU: I don’t have one.

COWEN: Then why believe in what you believe?

ACEMOGLU: Okay. I think what I believe is, first of all, not as an external standard—I don’t know whether external standard or internal standard is the right word—but that we have to defend some degree of individual freedom because everything starts from that, both in terms of our meaningful lives, but also any kind of improvement in the human condition requires individual initiative, and that individual initiative is impossible without some amount of freedom, a meaningful freedom, not just saying, “Okay, you have the freedom to pray, but you cannot express that idea with others or you cannot turn it into action.” Some meaningful freedom.

That is the only starting point that we need to have. Around that, we need to build things with some sort of consensus within society. That’s what I think liberalism has to recognize, that you have to enshrine those rights, but then give enough elbow room to people to form their own community-level agreements.

COWEN: You present some different values in the book. One is nondomination. Another is noninterference. There’s others. When they clash, what’s the metric you introduce to decide how to resolve that clash?  

ACEMOGLU: I wish I had a perfect answer for that. I don’t.

COWEN: You have an imperfect answer.

ACEMOGLU: I have an imperfect answer. I think noninterference by itself isn’t enough because, at least as read or as interpreted by some philosophers and economists, it is just about being left alone from higher authority or typically state-level authority, although it could be some other authorities as well. We do also need opportunities and some way of actualizing our intentions and our freedom. That’s what the idea of nondomination, which goes back to Roman Republican times, recognizes.

It is not, in my mind, an extremely interventionist philosophy. It doesn’t say the state knows it best or that the state should always have an opportunity to override individual or group-level decisions. It does emphasize that providing people some amount of protection against those who have much greater physical or other power relative to them is something that cannot be done at the individual level. It has to have a community-level component.

COWEN: That’s a good answer, but is it an answer to the question? If we’re Sidgwick, we might say, when values clash, we look to utility, or maybe it’d be cost-benefit analysis to decide which gets priority. You’re not willing to say that, so why not? What’s wrong with that answer?

Very much interesting throughout.