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Capitalisn't

Can We Build a Middle Class Without Factories? - ft. Dani Rodrik

Capitalisn't

University of Chicago Podcast Network

Stigler Center, Chicago Booth, Socialism, Antitrust, University Of Chicago Podcast Network, Growth, 087667, Policy, Monopoly, Professors, Distortion, Research, Competition, Capitalisnt, Inequality, Promarket, Politics, Policymaking, Special Interest, Economics, Efficiency, Regulations, Chicago, Business, Markets, University Of Chicago, Kate Waldock, Capitalism, Friction, Bethany Mclean, Government, Macroeconomics, News, Education, Waldock, Georgetown, Microeconomics, Luigi Zingales, Zingales, Finance, Ucpn

4.5584 Ratings

🗓️ 22 January 2026

⏱️ 42 minutes

🧾️ Download transcript

Summary

Is the era of manufacturing-led growth officially over? In this episode, Bethany McLean and Luigi Zingales sit down with Dani Rodrik, Ford Foundation Professor of International Political Economy at Harvard and author of Shared Prosperity in a Fractured World. Rodrik argues that we have "no other choice" but to look toward the service sector to anchor our future economy.

Transcript

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0:00.0

It's not a conclusion that I reach, you know, willingly.

0:02.9

I mean, I reach that conclusion because there is simply no option.

0:06.6

And if my story doesn't convince you, Luigi, that the services-based strategy can deliver some development,

0:13.3

then the alternative is not to say, let's go manufacturing.

0:17.0

The alternative is jumps simply to be very pessimistic about the future.

0:22.4

I'm Bethany McLean.

0:24.1

Did you ever have a moment of doubt about capitalism and whether greed's a good idea?

0:29.3

And I'm Luigi Zengalis.

0:30.7

We have socialism for the very rich, rugged individualism for the poor.

0:36.2

And this is Capital Isn't, a podcast about what is working in capitalism.

0:40.1

First of all, tell me, is there some society you know that doesn't run on greed?

0:44.6

And most importantly, what isn't?

0:46.6

We ought to do better by the people that get left behind.

0:49.5

I don't think we shouldn't kill the capital system in the process.

0:53.0

There's a massive disconnect right now between the economic data and how people actually feel.

0:57.8

The data says inflation is down.

0:59.8

Things are affordable.

1:00.6

You should be happy.

1:01.5

But the voters say the system is broken.

1:04.0

For the last 40 years, the North Star of our economy was simply make things cheaper.

1:09.2

We assume that if goods were affordable, people would be happy.

1:13.0

And by that metric, we succeeded. Consumer goods have never been more accessible. Yet, people are

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