A Hereditary Meritocracy

The promise of capitalism was that anyone could rise to the highest levels of society, purely by merit. Instead, the reality now is that the educational and social requirements for success are inherited, entrenching deep inequalities.

INET President Rob Johnson talks to University of Chicago Booth School Professor Raghuram Rajan about his book, "The Third Pillar: How Markets and the State Leave the Community Behind"

[dumolollen]

Such a loss for India he didnt continue his 2nd tenure as the governor of Reserve Bank of India

[CounterfittXIII]

This may be the only time ever that reading the YouTube comment section restores my sanity a bit.

[yviruss]

I did read through all the comments. I think most of them miss the mark on what he is trying to explain. He intends to identify the "limitations" with the current systems of markets and democracy (form/system of government). In addition, the main point he communicates is that markets and states/governments (typically democratic) are not only interdependent on each other but also codependent on communities---an aspect that has been largely ignored. Some of the comments here suggests that the markets have abused communities, as this is the very nature of markets. This view addresses the dependence between the three components in isolation. Recall that all the three pillars are dependent on each other. The crux of his work in the book is to maintain a balance between the three pillars, specifically by strengthening the weakest pillar---the community. He provides several ways in which this is possible. The earlier we start, the better.

[machine.g]

Not just Rahguram Rajan, Rob Johnson also seemed really smart and concise. Excellent and substantial interview.

[willdehne]

My friends and I are immigrants. All of them successful. Educated in our home country with additional education in the USA. We got education which is in demand by industry AND MOVED WHERE JOBS WERE OFFERED. We moved away when the industry changed or collapsed as in Detroit. We paid a price in having to relocate our families. Our children are spread all over hunting for opportunities. This model works well economically but not necessarily on a family level. Capitalism works but has no compassion. If you want to cushion Capitalism you need enlightened Government. Good luck with that.

[real-patriot-bj]

"It is hard to have a true democracy without free market" - Prof. Raghuraman. (Free of hereditary advantages, religious bias, free of corruption due to lobbying and purchasing of politicians, etc)

[SolidAir]

His main point seems to be that the rich can get a good education while the poor often cannot. This is true. But if you're talking about the failures of capitalism this is not the biggest fish to fry. What about the lack of democracy in the workplace? What about the capitalists taking advantage of lower wages in Asia and leaving their American workers in the lurch? What about capitalist-owed automation replacing workers? What about the growing financial sector being a parasite on the economy? What about the tendency of capitalism to cause increased wealth and income inequality?
The free market is a system where you vote with dollars and not everyone has the same amount of dollars. Especially in capitalism. If you think education is such a problem, dig a little deeper and ask why is it such a problem? Well, because one party always tries to reduce funding for public education. Which party is that? The one that is supported by rich and big corporations. Big _capitalist_ corporations. If capitalism and the free market want better-educated people, why isn't it happening?

[DaveWard-xcvd]

A person's birthright is not the results of chance, it is the results of CAUSALITY.

You exist as you are as a direct result of the countless choices your ancestors made, therefore you justly deserve your birthright. That being your innate talents, your personal achievements and your family inheritance.

A poor person in India could have been born here in the United States, had their parents moved here before they had a child.

Take that back as many generations as you like. It still holds true.

Recipients of affirmative are not entitled to the benefits they receive. The outcomes do not reflect the decisions made by their ancestors.

[MarkoKraguljac]

Platitudes of established politicians (and their cozy cohort) will not draw us together.

[ujean]

No one understands the need for education better than the 1 percent and the upper middle class. They ALWAYS do their best to keep working class people out of education. The problem that never seems to be addressed is what to do about those who don't want or, for whatever reason, can't do school in the way it is taught. We assume competition is a necessary element of education and that testing should be conducted in an assembly line approach; one batch of students each year. Never mind the idea that the sole purpose of education seems to be to train people to serve the economy.

[arthurlanglois]

The thing is, the market economy legitimizes assets (skills, resources) that some communities don't inherently have. The key would be to understand how can the differences in social, economical and cultural capitals be seen as an asset rather than a source of marginalization from the market economy?

[GregDubela]

We are a high tech society living on an outdated infrastructure.

[asadfami]

One of the smartest people I have ever seen and heard on the subject. Love and respect from Canada and Pakistan.

[redrockcrf]

One thing is clear, someone so aligned with the "system that has served us so well" does not have answers that will benefit the 99%. He may have genuine motives, but his opening statements that he wants to keep the system, while moments later saying the same system has failed, show that he isn't facing the real issues nor how the system has shifted compared to the 50's and 60's. (I'm not pitching to return to there...)

[schiffon]

His opening premise and framing about capitalism and democracy in the U.S. is evidence in substantial gaps in his understanding of history and contemporary data.

[sachinsidh]

Professor RAJAN has always given a very very vivid way of doing things (or say developing economies) and with very strong evidences and facts. His views are largely accepted by intellectuals and even those who disagree, love to argue with him in a very conservative manner (discussions). Thanks for all the hardwork you do in researchs. 🙌🏻🙌🏻

[Sagar-wnpo]

In a recent job advertisement, a prominent Indian company in contract with Indian Railways (which is largest employer in world) asked candidates to apply for 3 positions like store manager etc. The condition was that the person should be from a particular caste and male with "good" family background.

[spewter]

"If we have system that works let's figure out why it is failing us."


🤯

[MrVinnyable]

Great talk. In my opinion, no state policy or government intervention can ultimately make up for having good parents that try their best to set you up for success in life.

[virnamisra]

Spellbound Star. 🌟🍷🌟🍷🍷... Sharad Pandey