⚡ My chat (+transcript) with Virginia Postrel on promoting a culture of dynamism

Big changes are happening: space; energy; and, of course, artificial intelligence. The difference between sustainable, pro-growth change, versus a retreat back into stagnation, may lie in how we implement that change. Today on Faster, Please! — The Podcast, I talk with Virginia Postrel about the pitfalls of taking a top-down approach to innovation, versus allowing a bottom-up style of dynamism to flourish.

Postrel is an author, columnist, and speaker whose scholarly interests range from emerging technology to history and culture. She has authored four books, including The Future and Its Enemies (1998) and her most recent, The Fabric of Civilization: How Textiles Made the World (2020). Postrel is a contributing editor for the Works in Progress magazine and has her own Substack.

In This Episode

* Technocrats vs. dynamists (1:29)

* Today’s deregulation movement (6:12)

* What to make of Musk (13:37)

* On electric cars (16:21)

* Thinking about California (25:56)Below is a lightly edited transcript of our conversation.

Technocrats vs. dynamists (1:29)

I think it is a real thing, I think it is in both parties, and its enemies are in both parties, too, that there are real factional disagreements.

Pethokoukis: There is this group of Silicon Valley founders and venture capitalists, they supported President Trump because they felt his policies were sort of pro-builder, pro-abundance, pro-disruption, whatever sort of name you want to use.

And then you have this group on the center-left who seemed to discover that 50 years of regulations make it hard to build EV chargers in the United States. Ezra Klein is one of these people, maybe it's limited to center-left pundits, but do you think there's something going on? Do you think we're experiencing a dynamism kind of vibe shift? I would like to think we are.

Postrel: I think there is something going on. I think there is a real progress and abundance movement. “Abundance” tends to be the word that people who are more Democrat-oriented use, and “progress” is the word that people who are more — I don't know if they're exactly Republican, but more on the right . . . They have disagreements, but they represent distinct Up Wing (to put it in your words) factions within their respective parties. And actually, the Up Wing thing is a good way of thinking about it because it includes both people that, in The Future and Its Enemies, I would classify as technocrats, and Ezra Klein read the books and says, “I am a technocrat.” They want top-down direction in the pursuit of what they see as progress. And people that I would classify as dynamists who are more bottom-up and more about decentralized decision-making, price signals, markets, et cetera.

They share a sense that they would like to see the possibility of getting stuff done, of increasing abundance, of more scientific and technological progress, all of those kinds of things. I think it is a real thing, I think it is in both parties, and its enemies are in both parties, too, that there are real factional disagreements. In many ways, it reminds me of the kind of cross-party seeking for new answers that we experienced in the late ’70s and early ’80s, where . . . the economy was problematic in the ’70s.

Highly problematic.

And there was a lot of thinking about what the problems were and what could be done better, and one thing that came out of that was a lot of the sort of deregulation efforts that, in the many pay-ins to Jimmy Carter, who's not my favorite president, but there was a lot of good stuff that happened through a sort of left-right alliance in that period toward opening up markets.

So you had people like Ralph Nader and free-market economists saying, “We really don't need to have all these regulations on trucking, and on airlines, and these are anti-consumer, and let's free things up.” And we reaped enormous benefits from that, and it's very hard to believe how prescriptive those kinds of regulations were back before the late ’70s.

The progress and abundance movement has had its greatest success — although it still has a lot to go — on housing, and that's where you see people who are saying, “Why do we have so many rules about how much parking you can have?” I mean, yes, a lot of people want parking, but if they want parking, they'll demand it in the marketplace. We don't need to say, “You can't have tandem parking.” Every place I've lived in LA would be illegal to build nowadays because of the parking, just to take one example.

Today’s deregulation movement