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a lot of people who came out of third-world countries felt, “We are never going to catch up with the West if we just wait for the market to work its way over hundreds of years.” They looked at, in the ’30s, the Soviet Union and thought, “This is a way to accelerate modernization, industrialization.” They all were much more comfortable with the idea of something that sped up the historical process of modernization.

Milton Friedman used to say that there are two groups of people who don’t like the free market. Academics, intellectuals because they think they can do it better than the market, and businessmen because they don’t like competition. What they really want — this is a variation of the Peter Thiel argument — what they all really want is to be monopolists. That former part is, I think, what explains the Bengali intellectuals.

I think that the reality is, the market is much more powerful than they are in these areas. To give you one simple example, they decided, “Okay, we need to be making high-end chips.” Who do they bet on? They bet on Intel, a company that has failed miserably to compete with TSMC, the great Taiwanese chip manufacturer. Intel is now getting multi-billion-dollar grants from the United States government, from the European Union, because it fills all the categories that you’re looking for: big company, stable and well-run, in some sense, can guarantee a lot of jobs.

But of course, the reality is that chip making is so complicated

Who knew that, actually, it’s Nvidia, whose chips turned out to be designed for gaming, turned out to be ideal for artificial intelligence? That’s a perfect example of how the Hayekian market signals that come bottom-up are much more powerful than a political elite who tries to tell you what it is.

COWEN: What did you learn from the Anglican Book of Common Prayer?

One was a reverence for tradition, and in particular, I loved the hymnal. I think Britain’s great contribution to music is religious music. It doesn’t have anything to compete with the Germans and the Italians in opera and things like that. Religious music, I think the Brits and the English have done particularly well.

The second thing I would say is an admiration for Christianity for its extraordinary emphasis on being nice to people who have not been lucky in life. I would say that’s, to me, the central message of Christianity that I take, certainly from the Sermon on the Mount, and it’s imbued through the Book of Common Prayer: to be nice to the people who have been less fortunate than you. Be nice to poor people. Recognize that in God’s kingdom, the first shall be last and the last shall be first.

There is an enormous emphasis on the idea that those things that make you powerful in this world are not the things that really matter, that your dignity as a human being doesn’t come from that. I think that’s a very powerful idea. It’s a very revolutionary idea

Tom Holland has a very good book about this. He’s a wonderful historian in Britain. I think it’s called Dominion.

He points out what a revolutionary idea this was. It completely upended the Roman values, which were very much, the first shall be first. The powerful and the rich are the ones to be valued. He points out, here is this Jewish preacher coming out of the Middle East saying, “No, the first shall be last, the last shall be first in the kingdom of heaven.”

COWEN: I went to Amritsar the year before, and it was one of the most magical feelings I’ve ever had in any place. I’m still not sure what exactly I can trace it to — I am not a Sikh, of course. But what, for you, accounts for the strong, powerful, wondrous feeling one gets from that place?

I think there’s something about it architecturally, which is that there is a serenity about it. Sometimes you can find Hindu temples that are very elaborate. Sikhism is a kind of offshoot of Hinduism. The Hindu temples can be very elaborate, but very elaborate and ornate. This somehow has a simplicity to it. When you add to that the water — I’ve always thought that water adds an enormously calming effect

Hindi and Urdu are two Indian languages, very related. They both have roughly the same grammatical structure, but then Hindi derives its vocabulary entirely from Sanskrit, or almost entirely from Sanskrit, and Urdu derives its vocabulary almost entirely from Persian. Urdu is a language of Indian Muslims and is the official language for Pakistan. It’s a beautiful language, very lyrical, very much influenced by that Persian literary sensibility.

If you’re speaking one of the languages, there’s a way to alternate between both, which a lot of Indian politicians used to do as a way of signaling a broad embrace of both the Hindu and the Muslim communities. Nehru, India’s first prime minister, used to often do that. He would say, “I am delighted to be coming here to your home.” He’d repeat the word home, first in Urdu, then in Hindi, so that in effect, both constituencies were covered.

Modi, by contrast, India’s current prime minister, is a great Hindu nationalist. He takes pains almost never to use an Urdu word when he speaks. He speaks in a kind of highly Sanskritized Hindi that most Indians actually find hard to understand because the everyday language, Bollywood Hindi, is a mixture of Hindi words and Urdu words

I think the partition of India was a complete travesty. It was premised on this notion of religious nationalism. It was horrendously executed. The person who drew the lines, a man named Radcliffe, had never been to India. He’d never been east of the Suez and was given this task, and he did it in a month or two, probably caused a million-and-a-half to two million lives lost, maybe 10 million people displaced. It broke that wonderfully diverse, syncretic aspect of India.

If you look at cities like Delhi and Lahore, what was beautiful about them is that they mix together all the influences of India: Hindu, Muslim, Punjabi, Sindhi. Now what you have is much more bifurcated. If you go to Lahore, Lahore is a Muslim city in Pakistan, and it has a Punjabi influence. Delhi has become, essentially, much more Indian and Hindu and has lost that Muslim influence. To me, as somebody who really loves cosmopolitanism and diversity, it’s sad to see that. It’s almost like you’ve lost something that really made these places wonderfully rich.

I feel the same way when you read about the history of Europe. You think of a place like Vienna, which, in its most dazzling moment, was dazzling precisely because it was this polyglot population of people coming from all over the Habsburg Empire. A large segment of it was Jewish, and it had, as a result — think about Freud and Klimt and the music that came out of there, and the architecture that came out at the turn of the 19th century. And it’s all gone. It’s like, at this point, a somewhat beautiful but slightly dull Austrian city.

I remember once being asked when I was a graduate student at Harvard — Tony Lake was then national security adviser, and his office called and said — I’d written something in the New York Times, I think — “Mr. Lake would like you to come to the White House to brief him.”

I think, in a sense, Islam fit in within that tapestry very easily, and it’s been around for a while. When people talk about cleansing India, Hindu nationals talk about cleansing India of foreign influences. Islam has been in India since the 11th century, so it’s been around for a long time

I was amazed that America — it wasn’t America; it was where I was at Yale and Harvard and all that — that nobody cared where I came from. Nobody cared.

the syncretic nature of India, that India has always been diverse. Hinduism is very tolerant. It’s a kind of unusual religion in that you can believe in one god and be Hindu. You can believe in 300. You can be vegetarian and believe that’s a religious dictate. You can be nonvegetarian and believe that that’s completely compatible with your religion. It’s always embraced almost every variant and variation.

I walked in and there were five people around the table: Tony Lake; Deputy National Security Advisor Sandy Berger; George Stephanopoulos, who was then director of communications at the White House; Joe Nye, who was a senior professor at Harvard; one other person; and myself. And I kept thinking to myself, “Are they going to realize at some point that I’m not an American citizen? They’re asking me for my advice on what America should do, and I am on a student visa.” And of course, nobody ever did, which is one of the great glories of America.

My thesis topic was, I tried to answer the question, when countries rise in great power, when they rise economically, they become great powers because they quickly translate that economic power into diplomatic and military power. What explains the principal exception in modern history, which is the United States?

My simple answer was that the United States was a very unusual creature in the modern world. It was a very strong nation with a very weak state. The federal government in the United States did not have the capacity to extract the resources from the society at large because you didn’t have income taxes in those days.

COWEN: What put you off academia? And this was for the better, in my view.

ZAKARIA: I think two things. One, I could see that political science was moving away from the political science that I loved, which was a broad discipline rooted in the social sciences but also rooted in the humanities, which was rigorous, structural, historical comparisons. Looking at different countries, trying to understand why there were differences.

It was moving much more toward a huge emphasis on things like rational choice, on game theory There was an economist envy. Just as economists have math envy, political scientists have economist envy. It was moving in that direction

COWEN: After 9/11 in 2001, you wrote a famous essay for Newsweek, “Why Do They Hate Us?” You talked about the rulers, failed ideas, religion. If you were to revise or rethink that piece today, how would you change it? Because we have 23 more years of data, right?

He had a routine, which is, he’d get up about 6:00 a.m. He’d go down to the basement of his townhouse, and at 6:30, he would start writing or working on whatever his next big research project was. He’d do that, uninterrupted, for three hours at least, sometimes four. Then, at about 9:30, 10:00, he would take the subway to Harvard.

His point was, you got to start the day by doing the important work of academia, which is producing knowledge. All the rest of it — teaching, committee meetings, all that — you can do later. He was so disciplined about that, that every five years or so, he put out another major piece of work, another major book

I looked at that, and I said to myself, I do not have the self-discipline to perform at that level. I need to go into something that has deadlines,

It’s all within you, and you have to be able to generate ideas from that lonely space. I’ve always found that hard. For me, writing books is the hardest thing I do. I feel like I have to do it because I feel as though everything else is trivia — the television, column, everything else.

The second piece of it was actually very much related to Huntington. Sam Huntington was quite an extraordinary character, probably the most important social scientist in the second half of the 20th century. Huge contributions to several fields of political science. He lived next to me

ZAKARIA: Yes. Not very much, honestly. The central point I was making in that essay was that if you look at the Arab world, it is the principal outlier in the modern era, where it has undergone almost no political modernization.

The Arab world had remained absolutely static. My argument was that it was largely because of the curse of oil and oil wealth, which had impeded modernization. But along with that, because of that failed modernization, they had developed this reactionary ideology of Islam, which said the answer is to go further back, not to go forward. “Islam is the solution,” was the cry of the Islamic fundamentalists in the 1970s.

COWEN: I’m struck that this year, both you and Ruchir Sharma have books coming out — again, Fareed’s book is Age of Revolutions: Progress and Backlash from 1600 to the Present — that I would describe broadly as classically liberal. Do you think classical liberalism is making a comeback

the reason these books are coming out — and certainly, mine, as you know, is centrally occupied with the problem that there’s a great danger that we are going to lose this enormous, probably the most important thing that’s happened in the last 500, 600 years in human history, this movement that has allowed for the creation of modern liberal democratic societies with somewhat market economies.

If you look at the graph of income, of GDP, per capita GDP, it’s like a straight line. There’s no improvement until you get to about, roughly speaking, the 17th, 18th century in Europe, and then you see a sharp uptick. You see this extraordinary rise, and that coincides with the rise of science and intellectual curiosity and the scientific method, and the industrial revolution after that. All that was a product of this great burst of liberal Enlightenment thinking in the West.

If you think about what we’ve gone through in the last 30 years — and this is really the central argument in my book — massive expansion of globalization, massive expansion of information technology so that it has completely upended the old economy. All of this happening, and people are overwhelmed, and they search in that age of anxiety. They search for a solution, and the easy solutions are the ones offered by the populists.

They’re deeply anti-liberal, illiberal. So, I worry that, actually, if we don’t cherish what we have, we’ll lose what has been one of the great, great periods of progress in human history.

COWEN: Why does your book cover the 17th-century Dutch Golden Age? ZAKARIA: The Dutch are the first modern country. If you think about politics before that — certainly with the exception of ancient Greece and Rome — in modern history, the Dutch invent modern politics and economics. They invent modern politics in the sense that it’s the first time politics is not about courts and kings. It is about a merchant republic with powerful factions and interest groups and political parties, or the precursor to political parties.

It’s the beginning of modern economics because it’s economics based not simply on land and agriculture, but on the famous thing that John Locke talked about, which is mixing human beings’ labor with the land. The Dutch literally do this when they reclaim land from the sea and find ways to manage it, and then invent tall ships, which is, in some ways, one of the first great technological revolutions that has a direct economic impact.

You put all that together, and the Dutch — they become the richest country in the world, and they become the leading technological power in the world. It was very important to me to start the story — because they are really the beginnings of modern liberalism

COWEN: Circa 1800, how large were the Chinese and Indian economies?

Circa 1800, the Chinese and Indian economies are the two largest economies in the world, and people have taken this to mean, oh, the West had a temporary spurt because of colonies and cheap energy, and that the Chinese and Indians are just coming back to where they were.

First of all, the statistic is misleading because in those days, GDP was simply measured by using population. All society was agricultural. The more people you had, the larger your GDP. It was meaningless because the state could not extract that GDP in any meaningful way, and it’s meaningless because it doesn’t measure progress. It doesn’t measure per capita GDP growth, which is the most important thing to look at.

If you look at per capita GDP growth from 1350 to 1950, for 600 years, India and China have basically no movement. It’s about $600 in 1350 and $600 in 1950. The West, by comparison, moves up 600 percent in that period. It’s roughly $500 per capita GDP to roughly $5,000 per capita GDP.

You can also look at all kinds of other measures. You can look at diet. There are economic historians who’ve done this very well, and people in England were eating four to five times as much grain and protein as people in China and India. You can look at the extraordinary flourishing of science and engineering. You can look at the rise of the great universities. It’s all happening in the West.

The reason this is important is, people need to understand the rise of the West has been a very profound, deep-rooted historical phenomenon that began sometime in the 15th century. The fact that we’re moving out of that phase is a big, big deal. This is not a momentary blip. This is a huge train. The West define modernity. Even when countries try to be modern, they are in some way becoming Western because there is no path we know of to modernity without that.

One other way of just thinking about how silly that statistic is: in pure GDP terms, China had a larger GDP than Britain in 1900. Now, look at Britain in 1900: the most advanced industrial society in the world, ruling one-quarter of the world, largest navy in the world, was able to humiliate China by using a small fraction of its military power during the opium era. That’s what tells you that number is really meaningless. The West has been significantly more advanced than the rest of the world since the 16th century at least.

In fact, the news from Wall Street lately has mostly been about retreat from climate goals, rather than recommitment. Banks and asset managers are withdrawing from international climate alliances and chafing at their rules. Regional banks are stepping up lending to fossil fuel producers. Sustainable investment funds have sustained crippling outflows, and many have collapsed.

In some cases, it’s a classic prisoner’s dilemma: If firms collectively shift to cleaner energy, a cooler climate benefits everyone more in the future

in the short term, each firm has an individual incentive to cash in on fossil fuels, making the transition much harder to achieve.

when it comes to avoiding climate damage to their own operations, the financial industry is genuinely struggling to comprehend what a warming future will mean.

A global compact of financial institutions made commitments worth $130 trillion to try to bring down emissions, confident that governments would create a regulatory and financial infrastructure to make those investments profitable. And in 2022, the Inflation Reduction Act passed.

What about the risk that climate change poses to the financial industry’s own investments, through more powerful hurricanes, heat waves that knock out power grids, wildfires that wipe out towns?

“If we think about what is going to be the best way to tilt your portfolios in the direction to benefit, it’s really difficult to do,”

“These will probably be great investments over 20 years, but when we’re judged over one to three years, it’s a little more challenging for us.”

Some firms cater to institutional clients, like public employee pension funds, that want combating climate change to be part of their investment strategy and are willing to take a short-term hit. But they aren’t a majority

And over the past couple of years, many banks and asset managers have shrunk from anything with a climate label for fear of losing business from states that frown on such concerns.

On top of that, the war in Ukraine scrambled the financial case for backing a rapid energy transition. Artificial intelligence and the movement toward greater electrification are adding demand for power, and renewables haven’t kept up

All of that is about the relative appeal of investments that would slow climate change

If you bought some of the largest solar-energy exchange-traded funds in early 2023, you would have lost about 20 percent of your money, while the rest of the stock market soared.

There is evidence that banks and investors price in some physical risk, but also that much of it still lurks, unheeded.

“I’m very, very worried about this, because insurance markets are this opaque weak link,” Dr. Sastry said. “There are parallels to some of the complex linkages that happened in 2008, where there is a weak and unregulated market that spills over to the banking system.”

Regulators worry that failing to understand those ripple effects could not just put a single bank in trouble but even become a contagion that would undermine the financial system.

But while the European Central Bank has made climate risk a consideration in its policy and oversight, the Federal Reserve has resisted taking a more active role, despite indications that extreme weather is feeding inflation and that high interest rates are slowing the transition to clean energy.

“The argument has been, ‘Unless we can convincingly show it’s part of our mandate, Congress should deal with it, it’s none of our business,’”

a much nearer-term uncertainty looms: the outcome of the U.S. election, which could determine whether further action is taken to address climate concerns or existing efforts are rolled back. An aggressive climate strategy might not fare as well during a second Trump administration, so it may seem wise to wait and see how it shakes out.

big companies are hesitating on climate-sensitive investments as November approaches, but says that “two things are misguided and quite dangerous about that hypothesis.”

One: States like California are establishing stricter rules for carbon-related financial disclosures and may step it up further if Republicans win

And two: Europe is phasing in a “carbon border adjustment mechanism,” which will punish polluting companies that want to do business there.

at the moment, even European financial institutions feel pressure from the United States, which — while providing some of the most generous subsidies so far for renewable-energy investment — has not imposed a price on carbon.

The global insurance company Allianz has set out a plan to align its investments in a way that would prevent warming above 1.5 degrees Celsius by the end of the century, if everyone else did the same. But it’s difficult to steer a portfolio to climate-friendly assets while other funds take on polluting companies and reap short-term profits for impatient clients.

“This is the main challenge for an asset manager, to really bring the customer along,” said Markus Zimmer, an Allianz economist. Asset managers don’t have sufficient tools on their own to move money out of polluting investments and into clean ones, if they want to stay in business,

“Of course it helps if the financial industry is somehow ambitious, but you cannot really substitute the lack of actions by policymakers,”

According to new research, the benefit is greater when decarbonization occurs faster, because the risks of extreme damage mount as time goes on. But without a uniform set of rules, someone is bound to scoop up the immediate profits, disadvantaging those that don’t — and the longer-term outcome is adverse for all.

Before the pandemic, a number of variables were statistically significant indicators for consumer sentiment in our model; in particular, the most salient variables appear to be vehicle sales, gas prices, median household income, the federal funds effective rate, personal savings and household expenditures (excluding food and energy).

surprisingly, our pre-pandemic model didn't find a notable relationship between housing prices and consumer sentiment

All this taken together meant Americans were flush with cash but had nowhere to spend it. So despite the fact that the savings rate went way up, consumers still weren't feeling positively about the economy — contrary to the relationship between these two variables we saw in the decades before the pandemic.

Fast forward to 2024, and the personal savings rate has dropped to one of its lowest levels ever (the only time the savings rate was lower was in the years surrounding the Great Recession)

during and after the pandemic, Americans saw some of the highest rates of inflation the country has had in decades, and in a very short period of time. These sudden spikes naturally shocked many people who had been blissfully enjoying slow, steady price growth their entire adult lives. And it has taken a while for that shock to wear off, even as inflation has cre

the numbers align with our intuitive sense of how consumers process suddenly having their grocery store bill jump, as well as the findings from our model. In simple terms: Even if inflation is getting better, Americans aren't done being ticked off that it was bad to begin with.

During the pandemic, the personal savings rate soared. In April 2020, the metric was nearly double its previous high, recorded in May 1975.

However, in our post-pandemic data, when we examined how correlated consumer sentiment was with each indicator we considered, consumer sentiment and median housing prices had the strongest correlation of all****** (a negative one, meaning higher prices were associated with lower consumer sentiment)

"Right before the pandemic, the typical average transaction price was around $38,000 for a new car. By 2023, it was $48,000," Schirmer said. This could all be contributing to the break in the relationship between car sales and sentiment, he noted. Basically, people might be buying cars, but they aren't necessarily happy about it.

That's true even if a family has been able to save enough for a down payment, already a difficult task when rents remain high as well. Fewer people are able to cover their current housing costs while saving enough to make a down payment.

Low-income households are still the most likely to be burdened with high rents, but they're not the only ones affected anymore. High rents have also begun to affect those at middle-income levels as well.

In short, there was already a housing affordability crisis before the pandemic. Now it's worse, locking a wider array of people, at higher and higher income levels, out of the home-buying market

People who are renting but want to buy are stuck. People who live in starter homes and want to move to bigger homes are stuck. The conditions have frustrated a fundamental element of the American dream

In our pre-pandemic model, total vehicle sales had a strong positive relationship with consumer sentiment: If people were buying cars, you could pretty reasonably bet that they felt good about the economy. This feels intuitive — who buys a car if they think the economy

Cox Automotive also tracks vehicle affordability by calculating the estimated number of weeks' worth of median income needed to purchase the average new vehicle, and while that number has improved over the last two years, it remains high compared to pre-pandemic levels. In April, the most recent month with data, it took 37.7 weeks of median income to purchase a car, compared with fewer than 35 weeks at the end of 2019.

during the pandemic, low interest rates, high savings rates and changes in working patterns — namely, many workers' newfound ability to work from home — helped overheat the homebuying market, and buyers ran headlong into an enduring supply shortage. There simply weren't enough houses to buy, which drove up the costs of the ones that were for sale.

Inspired by our model of economic indicators and sentiment from 1987 to 2019, we tried to train a similar linear regression model on the same data from 2021 to 2024 to more directly compare how things changed after the pandemic. While we were able to get a pretty good fit for this post-pandemic model,******* something interesting happened: Not a single variable showed up as a statistically significant predictor of consumer sentiment.

This suggests there's something much more complicated going on behind the scenes: Interactions between these variables are probably driving the prediction, and there's too much noise in this small post-pandemic data set for the model to disentangle i

Changes in the kinds of purchases we've discussed — homes, cars and everyday items like groceries — have fundamentally shifted the way Americans view how affordable their lives are and how they measure their quality of life.

Even though some indicators may be improving, Americans are simply weighing the factors differently than they used to, and that gives folks more than enough reason to have the economic blues.

easy money. In an eye-opening new book, “What Went Wrong With Capitalism,” he makes a convincing case.

“When the price of borrowing money is zero,” Sharma told me this week, “the price of everything else goes bonkers.”

To take just one example: In 2010, as the era of ultralow and even negative interest rates was getting started, the median sale price for a house in the United States hovered around $220,000. By the start of this year, it was more than $420,000.

Nowhere has inflation (in the broad sense of the term) been more evident than in global financial markets. In 1980 they were worth a total of $12 trillion — equal to the size of the global economy at the time. After the pandemic, Sharma noted, those markets were worth $390 trillion, or around four times the world’s total gross domestic product.

But the worst hit is to capitalism itself: a pervasive and well-founded sense that the system is broken and rigged, particularly against the poor and the young. “A generation ago, it took the typical young family three years to save up to the down payment on a home,” Sharma observes in the book. “By 2019, thanks to no return on savings, it was taking 19 years.”

First, there was inflation in real and financial assets, followed by inflation in consumer prices, followed by higher financing costs as interest rates have risen to fight inflation

For wealthier Americans who own assets or had locked in low-interest mortgages, this hasn’t been a bad thing. But for Americans who rely heavily on credit, it’s been devastating.

Since investors “can’t make anything on government bonds when those yields are near zero,” he said, “they take bigger risks, buying assets that promise higher returns, from fine art to high-yield debt of zombie firms, which earn too little to make even interest payments and survive by taking on new debt.”

The hit to the overall economy comes in other forms, too: inefficient markets that no longer deploy money carefully to their most productive uses, large corporations swallowing smaller competitors and deploying lobbyists to bend government rules in their favor, the collapse of prudential economic practices.

“The most successful investment strategy of the 2010s,” Sharma writes, citing the podcaster Joshua Brown, “would have been to buy the most expensive tech stocks and then buy more as they rose in price and valuation.”

In theory, easy money should have broad benefits for regular people, from employees with 401(k)s to consumers taking out cheap mortgages. In practice, it has destroyed much of what used to make capitalism an engine of middle-class prosperity in favor of the old and very rich.

The social consequence of this is rage; the political consequence is populism.

“He promised to deconstruct the administrative state but ended up adding new rules at the same pace as his predecessor — 3,000 a year,” Sharma said of Trump. “His exercise of presidential authority to personal ends shattered historic precedents and did more to expand than restrict the scope of government. For all their policy differences, both leading U.S. candidates are committed and fearless statists, not friends of competitive capitalism.”

We are wandering in fog. And the precipice is closer than we think.

In their place, Trump’s stump speech has become dominated by grievances about the wrongs he believes have been done to him and his promises to get even for them. It doesn’t quite create the festive atmosphere of eight years ago, when many attendees were clearly having a great time. Where the new, more prosaic feeling lacks the uplift of the past, though, it has still managed to generate enough enthusiasm

The lack of catchy slogans might not matter if they were just slogans. But in 2016, they were a symbol of Trump’s willingness to talk about things that other candidates, including other Republicans, shied away from.

Regarding the war in Gaza, he has criticized Israeli Prime Minister Benjamin Netanyahu and called for the conflict to end quickly—but on Israel’s terms.

He had several such policy positions, including breaking with the bipartisan consensus on free trade, pledging to protect Social Security and Medicare, and claiming to have opposed the Iraq War from the start.

The focus on the wall also showed that he was willing to deploy (putatively) “commonsense” ideas that other politicians weren’t. This helped Trump to appeal not just to Republicans but to disaffected voters of all stripes

Where Trump once trumpeted his appointment of justices who overturned Roe v. Wade, he is now fumblingly trying to formulate a position on abortion that doesn’t alienate either his base or swing voters, mostly relying on ambiguity

Trump is emphasizing fewer big transformational ideas compared with 2016. His promises are a scattershot collection of ideas targeted at particular segments of the electorate: ending taxes on salary earned from tips, defending TikTok (a platform he once tried to ban), declassifying files on John F. Kennedy’s assassination, rolling back fossil-fuel regulations. Although he promises to clamp down on the border and deport undocumented immigrants, you won’t catch a “Round ’em up” chant at his rallies. And Project 2025, his allies’ proposal to overhaul the federal government by massively expanding political patronage, doesn’t lend itself to a bumper sticker.

Trump allots a great deal of his stump speech to mocking Biden as incoherent and senile (sometimes awkwardly) while also warning that Biden’s administration has made the United States a failed nation, and that his reelection could be fatal to the country. The disconnect between the images of Biden as doddering fool and as evil schemer is one that Republicans have struggled to reconcile but that Trump has concluded doesn’t need resolving.

Grievance is not a new note at Trump rallies, but four and eight years ago, he used to talk about other people’s grievances and promise to redress them. Now the grievances are largely his own

One big problem for Clinton was the criticism that she had no compelling goal for her candidacy other than that she wanted to be president. Trump’s campaign now is about nothing so much as his desire to be president.

Even Project 2025 is about the accumulation of executive power itself, rather than any particular policy goal

As a young State Department policy planner in the 2000s, she was a lonely voice in Washington raising the alarm about the rise of China. She pushed for tariffs and against trade agreements before it was cool, and was an author of a book called “War by Other Means” about how blind faith in free markets put the United States at a geopolitical disadvantage. For years, she felt like an oddball in Washington, where both parties were still in thrall to neoliberalism.

The Hewlett Foundation hired her as the head of an initiative that has given away $140 million so far to people who are devising a new economic philosophy. Then she served a stint in the White House. Today, she’s an intellectual leader of a growing, bipartisan consensus

She fell in love with economics and studied it at Wake Forest. After she joined a student delegation to a NATO summit in Prague in 2002, a faculty adviser on that trip offered her a job in Washington working at the National Intelligence Council. In those early years, she believed what everyone else in Washington believed about the economy — that governments ought not meddle with it.

if Mr. Trump correctly identified a problem — “China is eating our lunch” — he did not solve it, beyond putting tariffs on Chinese products. His tax cut for the rich hurt rather than helped matters.

It’s the Biden administration that came in with a plan to build an economy that was good for workers, not just shareholders, using some strategies Ms. Harris had been talking about for years.

The thinking behind it goes like this: Unquestioning belief in the free market created a globalism that funneled money to the 1 percent, which has used its wealth to amass political power at the expense of everyone else. It produced free trade agreements that sent too many U.S. factories to China and rescue plans after the 2008 financial crisis that bailed out Wall Street instead of Main Street.

It was her job to track China’s use of subsidies, industrial espionage and currency manipulation to fuel its rise as a manufacturing powerhouse. Ms. Harris argued that tariffs on China were a necessary defense. Nobody agreed. “I was kind of just banging my head against this wall,” she told me. “The wall was a foreign policy establishment that saw markets as sacrosanct.”

Barack Obama campaigned on a pledge to renegotiate NAFTA, but he struck up a new trade deal instead — the Trans-Pacific Partnership. Ms. Harris argued against it. “We didn’t have the foggiest idea” of what it would do to our economy, she told me. Nobody listened.

it sent Democrats back to the intellectual drawing board. Larry Kramer, then the president of the Hewlett Foundation, recruited her in 2018 to promote alternatives to ideas that had guided U.S. policy for decades. He hoped she could do for free-market skepticism what Milton Friedman and his allies had done for free-market fundamentalism, which became policy under the Reagan administration and eventually was embraced by both parties as truth.

She has since rejoined the Hewlett Foundation, where she funds people who are proposing new solutions to economic problems. One grantee, the conservative think tank American Compass, promotes the idea of a domestic development bank to fund infrastructure — an idea with bipartisan appeal.

But the work that Ms. Harris and others in the Biden administration have done is unfinished, and poorly understood. The terms “Bidenomics” and “Build Back Better” don’t seem to resonate

Ms. Harris acknowledges that these ideas haven’t yet taken hold in the broader electorate, and that high interest rates overshadow the progress that’s been made. It’s too early for voters to feel it, she told me: “The investments Biden has pushed through aren’t going to be felt in a month, a year, two years.”

she celebrates the fact that leaders across the political spectrum are embracing the idea that Americans need to “get back to building things in this country.” This election has no candidates blindly promoting the free market. The last one didn’t either. In the battle of ideas, she has already won.

Still others believe that the advent of civil rights laws created, in essence, a second Constitution entirely, one that privileges group identity over individual liberty.

Protestant Christian nationalists tend to have a higher regard for the American founding, but they believe it’s been corrupted. They claim that the 1787 Constitution is essentially dead, replaced by progressive power politics that have destroyed constitutional government.

Catholic post-liberals believe that liberal democracy itself is problematic. According to their critique, the Constitution’s emphasis on individual liberty “atomizes” American life and degrades the traditional institutions of church and family that sustain human flourishing.

The original Constitution and Bill of Rights, while a tremendous advance from the Articles of Confederation, suffered from a singular, near-fatal flaw. They protected Americans from federal tyranny, but they also left states free to oppress American citizens in the most horrific ways

if your ultimate aim is the destruction of your political enemies, then the Constitution does indeed stand in your way.

Right-wing constitutional critics do get one thing right: The 1787 Constitution is mostly gone, and America’s constitutional structure is substantially different from the way it was at the founding. But that’s a good thing

its guardrails against tyranny remain vital and relevant today.

Individual states ratified their own constitutions that often purported to protect individual liberty, at least for some citizens, but states were also often violently repressive and fundamentally authoritarian.

The criminal justice system could be its own special form of hell. Indigent criminal defendants lacked lawyers, prison conditions were often brutal at a level that would shock the modern conscience, and local law enforcement officers had no real constitutional constraints on their ability to search American citizens and seize their property.

Through much of American history, various American states protected slavery, enforced Jim Crow, suppressed voting rights, blocked free speech, and established state churches.

As a result, if you were traditionally part of the local ruling class — a white Protestant in the South, like me — you experienced much of American history as a kind of golden era of power and control.

The Civil War Amendments changed everything. The combination of the 13th, 14th, and 15th Amendments ended slavery once and for all, extended the reach of the Bill of Rights to protect against government actions at every level, and expanded voting rights.

But all of this took time. The end of Reconstruction and the South’s “massive resistance” to desegregation delayed the quest for justice.

decades of litigation, activism and political reform have yielded a reality in which contemporary Americans enjoy greater protection for the most fundamental civil liberties than any generation that came before.

And those who believe that the civil rights movement impaired individual liberty have to reckon with the truth that Americans enjoy greater freedom from both discrimination and censorship than they did before the movement began.

So why are parts of the right so discontent? The answer lies in the difference between power and liberty

One of the most important stories of the last century — from the moment the Supreme Court applied the First Amendment to state power in 1925, until the present day — is the way in which white Protestants lost power but gained liberty. Many millions are unhappy with the exchange.

Consider the state of the law a century ago. Until the expansion of the Bill of Rights (called “incorporation”) to apply to the states, if you controlled your state and wanted to destroy your enemies, you could oppress them to a remarkable degree. You could deprive them of free speech, you could deprive them of due process, you could force them to pray and read state-approved versions of the Bible.

The argument that the Constitution is failing is just as mistaken as the argument that the economy is failing, but it’s politically and culturally more dangerous

Powerful people often experience their power as a kind of freedom. A king can feel perfectly free to do what he wants, for example, but that’s not the same thing as liberty.

Looked at properly, liberty is the doctrine that defies power. It’s liberty that enables us to exercise our rights.

Think of the difference between power and liberty like this — power gives the powerful freedom of action. Liberty, by contrast, protects your freedom of action from the powerful.

At their core, right-wing attacks on the modern Constitution are an attack on liberty for the sake of power.

An entire class of Americans looks back at decades past and has no memory (or pretends to have no memory) of marginalization and oppression. They could do what they wanted, when they wanted and to whom they wanted.

Now they don’t have that same control

Muslims, Sikhs, Jews, Buddhists and atheists all approach the public square with the same liberties. Drag queens have the same free speech rights as pastors, and many Americans are livid as a result.

when a movement starts to believe that America is in a state of economic crisis, criminal chaos and constitutional collapse, then you can start to see the seeds for revolutionary violence and profound political instability. They believe we live in desperate times, and they turn to desperate measures.

“You shall know the truth, and the truth shall set you free.” So much American angst and anger right now is rooted in falsehoods. But the truth can indeed set us free from the rage that tempts American hearts toward tyranny.

AlphaGo’s victory demonstrated the unbridled potential of A.I. to achieve superhuman mastery of skills once considered too complicated for machines.

Mr. Lee, now 41, retired three years later, convinced that humans could no longer compete with computers at Go. Artificial intelligence, he said, had changed the very nature of a game that originated in China more than 2,500 years ago.

As society wrestles with what A.I. holds for humanity’s future, Mr. Lee is now urging others to avoid being caught unprepared, as he was, and to become familiar with the technology now. He delivers lectures about A.I., trying to give others the advance notice he wishes he had received before his match.

“I faced the issues of A.I. early, but it will happen for others,” Mr. Lee said recently at a community education fair in Seoul to a crowd of students and parents. “It may not be a happy ending.”

Mr. Lee is not a doomsayer. In his view, A.I. may replace some jobs, but it may create some, too. When considering A.I.’s grasp of Go, he said it was important to remember that humans both created the game and designed the A.I. system that mastered it.

What he worries about is that A.I. may change what humans value.

His immense talent was apparent from the start. He quickly became the best player of his age not only locally but across all of South Korea, Japan and China. He turned pro at 12.

“People used to be in awe of creativity, originality and innovation,” he said. “But since A.I. came, a lot of that has disappeared.”

By the time he was 20, Mr. Lee had reached 9-dan, the highest level of mastery in Go. Soon, he was among the best players in the world, described by some as the Roger Federer of the game.

Go posed a tantalizing challenge for A.I. researchers. The game is exponentially more complicated than chess, with it often being said that there are more possible positions on a Go board (10 with more than 100 zeros after it, by many mathematical estimates) than there are atoms in the universe.

The breakthrough came from DeepMind, which built AlphaGo using so-called neural networks: mathematical systems that can learn skills by analyzing enormous amounts of data. It started by feeding the network 30 million moves from high-level players. Then the program played game after game against itself until it learned which moves were successful and developed new strategies.

Mr. Lee said not having a true human opponent was disconcerting. AlphaGo played a style he had never seen, and it felt odd to not try to decipher what his opponent was thinking and feeling. The world watched in awe as AlphaGo pushed Mr. Lee into corners and made moves unthinkable to a human player.“I couldn’t get used to it,” he said. “I thought that A.I. would beat humans someday. I just didn’t think it was here yet.”

AlphaGo’s victory “was a watershed moment in the history of A.I.” said Demis Hassabis, DeepMind’s chief executive, in a written statement. It showed what computers that learn on their own from data “were really capable of,” he said.

Mr. Lee had a hard time accepting the defeat. What he regarded as an art form, an extension of a player’s own personality and style, was now cast aside for an algorithm’s ruthless efficiency.

His 17-year-old daughter is in her final year of high school. When they discuss what she should study at university, they often consider a future shaped by A.I.“We often talk about choosing a job that won’t be easily replaceable by A.I. or less impacted by A.I.,” he said. “It’s only a matter of time before A.I. is present everywhere.”

And why was the surge in illegal border crossings so troubling, even for voters who live far from the southern border? Not because they believe Mr. Trump’s florid demagogy about criminals, rapists and residents of mental hospitals pouring in but because they see a country unable to control its borders as a country unable to control its destiny

and as a country that treats strangers better than some of its citizens.

they are part of the same political project. Economic arrangements not only decide the distribution of income and wealth; they also determine the allocation of social recognition and esteem.

Democrats need to acknowledge that the neoliberal globalization project they and mainstream Republicans pursued in recent decades brought huge gains for those at the top but job loss and stagnant wages for most working people

The winners used their windfall to buy influence in high places. Government stopped trying to check concentrated economic power. The two parties joined forces to deregulate Wall Street. And when the financial crisis of 2008 pushed the system to the brink, they spent billions of dollars to bail out the banks but left ordinary homeowners mostly to fend for themselves.

Rather than contend directly with the damage they had done, both political parties told workers to improve themselves by getting college degrees.

The elites who offered this advice missed the implicit insult it contained: If you’re struggling in the new economy, it’s your fault.

as president, despite his centrist career, Mr. Biden turned away from the policies that had prompted populist backlash and empowered Mr. Trump.

Mr. Biden’s ambitious public investments in infrastructure, manufacturing, jobs and clean energy recalled the muscular role of government during the New Deal. So did his support for collective bargaining and the revival of antitrust law. It made him one of the most consequential presidents of modern times.

Still, he remained unpopular. Mr. Biden and his team thought the problem was one of timing: Public investments take time to produce jobs and tangible benefits.

But the real problem was more fundamental. Mr. Biden never really offered a broad governing vision, never explained how the policies he enacted added up to a new democratic project.

Mr. Biden offered no comparable story.When he broke with the era of neoliberal globalization, reasserting government’s role in regulating markets for the common good, he did so with little fanfare or explanation. He did not acknowledge that his own party had been complicit in the policies that had deepened the divide between winners and losers

in the end, it all made for impressive policy but themeless politics. His presidency was a legislative triumph but an evocative failure.

This made him a weak match for Mr. Trump, a candidate with little policy success but whose MAGA movement spoke to the anger of the age.

what does all of this mean for the Harris campaign?

Defeating Mr. Trump means taking seriously the divide between winners and losers that polarizes the country. It means acknowledging the resentment of working people who feel that the work they do is not respected, that elites look down on them, that they have little say in shaping the forces that govern their lives.

To do so, Ms. Harris should highlight a theme that has long been implicit but underdeveloped in Mr. Biden’s presidency: the dignity of work.

The Harris campaign should not only defend these achievements but also embark on something more ambitious: a project of democratic renewal that goes beyond merely saving democracy from Mr. Trump

democracy in its fullest sense is about citizens deliberating together about justice and the common good. The dignity of work is important to a healthy democracy because it enables everyone to contribute to the common good and to win honor and recognition for doing so.

For Ms. Harris, offering concrete proposals to honor work — and to reward it fairly — could force Mr. Trump and Mr. Vance to choose between the working-class party they hope to become and the corporate Republican Party they continue to be.

She should be asking questions that would invigorate progressive politics for the 21st century: If we really believe in the dignity of work, why do we tax income from labor at a higher rate than income from dividends and capital gains? Shouldn’t the federal minimum hourly wage be higher than $7.25?

Mr. Trump has proposed exempting tips from taxes. Well, here’s a bolder suggestion: Why not reduce or eliminate the payroll taxes employees pay and make up the revenue with a tax on financial transactions?

Beyond tax measures: What about public investment in universal child care not only to support those who work outside the home but also to improve the pay and working conditions of caregivers?

Democrats could promote sectoral bargaining so that fast food workers can negotiate wages and working conditions across their industry rather than company by company. Democrats could require companies to give employees seats on corporate boards and classify gig workers as employees

On climate change, rather than imposing top-down, technocratic solutions, what if we tried listening to those who fear their livelihoods will be upended — creating local forums that give workers in the fossil fuel industry and agriculture a chance to collaborate with community leaders, scientists and public officials in shaping the transition to a green economy?

The election season is too short, they might argue, and the stakes are too high; elevating the terms of public discourse is a project for another day.

But this would be a political mistake and a historic missed opportunity. Taunting Mr. Trump as a felon would rally the base but reinforce the divide. Offering Americans a more inspiring democratic project could change some minds, win over some voters and offer some hope for a less rancorous public life.