Sunkara Backs Mises and Firm Failure in Market Socialist Blueprint
Bloomberg
Central planning and traditional social democracy ultimately falter because planners cannot anticipate dynamic consumer demand while private capital can withhold investment, requiring worker-owned enterprises funded by public banks to maintain market discipline without wage labor.
Bhaskar Sunkara outlines a vision of 'market socialism' in his co-authored book *The Blueprint*, arguing that markets, consumer choice, and entrepreneurship are objective goods that should be retained while abolishing private wage labor. (5:00)
Under the proposed framework, new enterprises are financed by public banks via risk-adjusted commercial loans and operated as labor-managed cooperatives where workers share residual dividends. (15:40)
The model embraces firm failure to avoid János Kornai's 'soft budget constraints', while enforcing benchmark wage floors modeled on the Australian award system and Swedish centralized bargaining. (20:00)
Drawing on Singapore's housing system, Sunkara advocates for universal public land and housing ownership combined with a market for rents and state-driven construction to insulate tenants from displacement. (23:07)
On the socialist calculation debate, Sunkara explicitly sides with Ludwig von Mises and Friedrich Hayek over central planners, arguing that artificial intelligence cannot replace dynamic price discovery and human incentive structures. (52:45)
Detailed notes
## Background
Published on October 22, 2026, by Bloomberg on the Odd Lots podcast RSS feed, this episode explores market socialism in the wake of rising American approval for socialism and electoral wins by DSA-aligned politicians like NYC Mayor Zohran Mamdani. The show notes explain that guest Bhaskar Sunkara, founding editor of Jacobin and co-author of 'The Blueprint,' discusses how market mechanisms, entrepreneurship, and monetary policy can be redesigned to function under socialist principles.
## TL;DR
Bhaskar Sunkara outlines the institutional framework of market socialism, arguing that socialist systems must preserve markets, price signals, and consumer choice rather than relying on central planning. Under his model, capital allocation is managed by public banks, private wage labor is replaced by worker-managed cooperatives that distribute equity dividends, and basic sectors like housing and education are decommodified through models inspired by Singapore and universal provision. Sunkara also tackles hard microeconomic constraints, defending firm failure to avoid soft budget issues, siding with the Hayekian perspective in the socialist calculation debate, and addressing civic order concerns like antisocial behavior and school scheduling.
## Atmosphere & style
The conversation is lively, intellectually rigorous, and peppered with humorous banter between the hosts and their guest. Sunkara approaches heavyweight economic theory with pragmatic self-awareness, cheerfully positioning himself as an ideological heterodox who blends socialist ownership with traditional liberal market dynamics and strict views on public decorum. The dynamic feels like an engaging, high-level policy seminar where deep ideological convictions clash comfortably with technical economic practicalities.
## Bulletin
- `05:00` Bhaskar Sunkara outlines a vision of 'market socialism' in his co-authored book *The Blueprint*, arguing that markets, consumer choice, and entrepreneurship are objective goods that should be retained while abolishing private wage labor.
- `15:40` Under the proposed framework, new enterprises are financed by public banks via risk-adjusted commercial loans and operated as labor-managed cooperatives where workers share residual dividends.
- `20:00` The model embraces firm failure to avoid János Kornai's 'soft budget constraints', while enforcing benchmark wage floors modeled on the Australian award system and Swedish centralized bargaining.
- `23:07` Drawing on Singapore's housing system, Sunkara advocates for universal public land and housing ownership combined with a market for rents and state-driven construction to insulate tenants from displacement.
- `52:45` On the socialist calculation debate, Sunkara explicitly sides with Ludwig von Mises and Friedrich Hayek over central planners, arguing that artificial intelligence cannot replace dynamic price discovery and human incentive structures.
## Key takeaways
- `10:00` Market socialism integrates three distinct pillars: a worker-cooperative commodity sector, an expansive non-market public sector, and public banks handling capital allocation.
- `12:00` Markets are defended as an objective social good, with socialist objections focused on unequal income distribution skewing production toward luxuries and exploitative workplace relations.
- `15:40` New firm creation relies on public bank financing and operating charters that allow managerial pay differentials, while granting all employees partner status and residual profit rights from day one.
- `20:00` Benchmark wage floors force firms to compete through better management and productivity rather than wage suppression, while firm failure is preserved to prevent capital misallocation.
- `23:07` Universal public housing modeled on Singapore decouples tenure security from financial speculation while using state-commissioned construction to bypass municipal zoning barriers.
- `26:15` Sunkara argues that maintaining high-quality shared public spaces and transit requires enforcing civic standards and diverting offenders into supportive state services rather than tolerating disorder.
- `30:00` Mass incarceration functions as an austerity-driven shortcut, whereas a truly rehabilitative, progressive justice system with extensive staff training would require significantly higher public expenditures.
- `31:45` Under public housing tenure, tenants could customize living spaces freely, with substantial capital improvements eligible for administrative approval and public reimbursement.
- `37:25` Disparities in public education outcomes in cities like New York stem primarily from upstream social crises—such as housing insecurity and neighborhood violence—rather than per-pupil funding shortages.
- `44:30` Nordic-style social democracy remains politically unstable because sustained full employment triggers capitalist profit squeezes and investment strikes, necessitating a structural shift toward worker ownership.
- `46:45` When workers own residual equity through dividends, they have positive incentives to embrace automation, AI, and productivity gains rather than resisting technological change out of fear of job loss.
- `52:45` Central planning cannot be resolved by artificial intelligence because dynamic human preferences and economic incentives cannot be captured in a static dataset.
- `54:30` A primary practical vulnerability of democratic market socialism is the challenge of political transition and maintaining multi-decade policy continuity across frequent electoral cycles.
## Detailed walkthrough
### `00:00` Odd Lots Intro and the Rise of Socialism in American Politics
Joe Weisenthal and Tracy Allaway open the show with a humorous look at their listener feedback. Joe asks Tracy if she ever receives angry messages on social media from people blaming *Odd Lots* for political outcomes. Specifically, they point to New York City Mayor Zohran Mamdani: when he first appeared on the podcast as a candidate, he was polling around 5%, but within a couple of weeks following that interview, his campaign caught fire and gained serious momentum. Critics now regularly tweet at them complaining that *Odd Lots* "platformed Zohran and now he's our mayor."
Beyond the local New York fallout, both hosts note that socialism is palpably ascendant across national primary contests and in the public consciousness. This rise has sparked an intense conflict over the direction and soul of the Democratic Party, particularly concerning the role played by the Democratic Socialists of America (DSA). Yet while the term "DSA" has turned into a ubiquitous buzzword, Tracy and Joe observe that the broader public rarely understands what it entails. The left encompasses a wide spectrum of distinct traditions and approaches that frequently clash with one another. Joe recalls being in Greece covering the 2012 election, where leftist fragmentation was on full display in public squares:
```mermaid
flowchart TD
accTitle: Leftist Political Fragmentation in Greece
accDescr: Diagram illustrating the splintering of left parties during the 2012 Greek elections observed by Joe Weisenthal.
subgraph Coalition ["Parliamentary Left"]
SYRIZA["SYRIZA (Main Left Tent)"]
end
subgraph Splinters ["Factional Left"]
KKE1["Communist Tent A (Hammer & Sickle)"]
KKE2["Communist Tent B (Across the Street)"]
end
SYRIZA -.->|"Rivalry"| KKE1
KKE1 <-->|"Split Over Differences"| KKE2
```
In Athens, SYRIZA occupied the main tent, but right across the street stood two separate communist party tents, both sporting identical hammer-and-sickle iconography yet refusing to unite because of doctrinal disagreements. This tendency of the left to passionately splinter over seemingly minor factional differences highlights how contested the term "left politics" truly is.
- Zohran Mamdani was polling at roughly 5% before an early campaign interview on *Odd Lots*, after which his bid surged, leading to his mayoral election.
- The hosts note that the internal ideological flavors inside DSA remain largely obscured to casual observers, even as the movement gains national prominence.
`05:00` Bhaskar Sunkara on *The Blueprint* and the Case for Market Socialism
Joe and Tracy introduce their guest, Bhaskar Sunkara—founding editor of *Jacobin*, president of *The Nation*, longtime DSA member, and co-author (alongside Ben Burgis and Mike Beggs) of *The Blueprint: How Socialism Can Work in the Real World*. Joe asks Bhaskar whether the book is aimed outward as a left alternative to the "abundance agenda" to steer the Democratic Party, or inward as an ideological intervention to convince fellow socialists of what a viable socialist economy should look like.
Bhaskar explains that the book speaks broadly to egalitarians, though his own political journey shaped the text. Drawn to socialist politics around age 14, he remembers remaining doggedly committed to those ideals—eventually joining DSA at 17—despite an immediate and nagging practical concern: wouldn't socialism just produce shortages and breadlines? Early on, older organizers would deflect these anxieties by arguing that a line for bread was better than no bread at all, an answer Bhaskar found inadequate for the richest society in human history:
> “And it took me actually encountering other models of socialism, mostly market socialist models, to be like, OK, this could in fact work.”
Historically, the socialist left drew confidence from tangible international counterweights. In the 1930s, despite the authoritarianism and severe economic failures that are obvious today, communists pointed to the Soviet Union; in the 1960s and 1970s, campus activists could romanticize Cuba and join the Venceremos Brigade. Bhaskar and his co-authors felt that in the 21st century, the left must rigorously establish whether a socialist economic order is technically functional before debating whether it is politically desirable:
> “So I think you have to be an egalitarian to get that far with me. But if you are, I think you should be confident that there is a different model in capitalism.”
When Tracy asks how "market socialism" is defined and how it departs from standard socialist orthodoxies, Bhaskar explains that it builds upon structures already operating within modern economic life. Modern capitalism is fundamentally different from 19th-century laissez-faire capitalism; referencing Ezra Klein's quip that the modern United States is "an insurance company with the military" (riffing on the Cold War description of the USSR as a gas station with a military), he points out that welfare safety nets, state planning, and fiscal demand management are already central to market economies.
Market socialism seeks to systematize these realities while transforming enterprise ownership through labor-managed, partner-based enterprises. While workers under capitalism often hesitate to start cooperatives because doing so forces them to commit their personal savings and their labor into the same risky basket, existing labor-managed institutions—from worker cooperatives to large professional partnerships like early Goldman Sachs or the Spanish cooperative conglomerate Mondragon (which became Spain's fifth- or sixth-largest business enterprise)—prove that worker-managed firms function effectively at scale in the real world.
`10:00` Reconciling Markets, Public Banking, and Consumer Choice
Bhaskar Sunkara reflects on how market socialist ideas can be constructed by combining proven institutional models. While he frequently points to Mondragon in Spain as the quintessential worker-cooperative example, he jokes that when speaking outside traditional leftist circles—such as at the Bloomberg offices—he can draw on other real-world precedents. The core question is whether society can integrate three distinct spheres:
1. A commodity production sector for consumer goods and services run by worker-owned cooperatives.
2. An expansive, non-market public sector.
3. A system of public banks designed for social lending.
Together, Sunkara argues, these institutions could produce a society far more egalitarian than capitalism while matching—or even exceeding—its productive efficiency.
Joe Weisenthal notes that a central pillar of Sunkara's book (*The Blueprint*) is the defense of consumer choice. Rather than central planners dictating a uniform ration of goods—such as equal quotas of kale, Dr. Bronner's soap, or almond butter—the model preserves market mechanisms for consumption. Sunkara enthusiastically agrees, joking:
> “I normally don't drink coffee. It would be insane if a demand for a social society was that all three of us should have an equal allocation of coffee.”
He admits that his co-authors are usually more diplomatically cautious when articulating these points to avoid friction with the broader left, quipping that the podcast got the "least careful person." Sunkara maintains that markets themselves are an objective social good. In his view, the standard socialist critiques of markets reduce to two core structural issues:
- **Unequal income distribution distorting production:** When individuals "vote with their dollars," excessive income concentration skews economic output toward luxury goods rather than serving median consumer needs.
- **Exploitative conditions of production:** Goods under capitalism are manufactured under inherently exploitative workplace dynamics.
```mermaid
flowchart TD
accTitle: Market Socialism Three-Pillar Framework
accDescr: Diagram showing how consumer co-ops, public banking, and the public sector interact under market socialism.
subgraph Core ["Institutional Architecture"]
PB["Public Banks<br>(Capital allocation & loans)"]
WC["Worker Cooperatives<br>(Consumer goods & services)"]
PS["Expansive Public Sector<br>(Decommodified services)"]
end
`12:00` Exploitation, Alienation, and the Division of Labor
The hosts and Sunkara banter about how exploitation manifests across white-collar and blue-collar labor. Sunkara points out that junior bank analysts, paralegals, and mid-level law associates are clearly exploited—even if law partners have simply endured that meat-grinder to earn their payout. Beyond high-finance examples, this extraction is felt routinely by industrial and service workers.
Under the market socialist blueprint, this dynamic is neutralized by redesigning enterprise ownership:
- Managers are democratically elected by the workforce.
- Workers receive both a baseline wage and an equitable share of residual profits (dividends).
- Income distributions within enterprises are bounded rather than open-ended.
Addressing deeper philosophical objections from the far left regarding worker alienation, Sunkara positions himself on the pragmatic right wing of a prospective socialist society. While some radical theorists propose mandatory job rotations to abolish the division of labor, Sunkara considers deep specialization an inevitable reality of any modern, technologically advanced economy:
> “Markets are great. I think they're an objective good. And the socialist problem with markets boils down to one, the uneven distribution of income, which means if we are voting with our dollars, then, you know, someone else has a lot more dollars than me skew the economy towards luxury goods.”
---
*(Note: – contains podcast sponsorship breaks for Barclays Brief, Underdog Fantasy, ChatGPT Work Mode, and Edward Jones.)*
---
`15:40` Starting a Business Under Market Socialism: Financing and Governance
Tracy Alloway asks Sunkara to explain the microeconomics of the system: if an entrepreneur wants to start a business—like opening a restaurant—how does funding work, how are employees hired, how are profits allocated, and does the founder receive compensation for risk?
Sunkara acknowledges that capitalists perform genuinely useful functions: they supply entrepreneurial vision, assume organizational risk, and provide managerial labor. Rather than relying on simplistic 20th-century rhetoric labeling entrepreneurs as parasites, *The Blueprint* seeks to preserve entrepreneurship while eliminating wage labor. Drawing on normative Rawlsian liberal philosophy, the model treats the traditional employer-employee wage relation as inherently unjust.
```mermaid
flowchart LR
accTitle: New Enterprise Creation Flow
accDescr: Step-by-step process of launching a firm in a market socialist framework.
A["Entrepreneur develops<br>Business Plan"] --> B["Apply to Public Bank<br>for Capital Loan"]
B --> C["Risk-Adjusted Interest Rate<br>(e.g., Higher for Restaurants)"]
C --> D["Founding Operating Agreement<br>(Elected manager, capped ratios)"]
D --> E["Workers Join as Full Partners<br>(Base wage + residual equity)"]
```
To start a new enterprise, the process operates as follows:
- **Public Bank Financing:** The entrepreneur submits a business plan to a public bank. Capital is disbursed as a commercial loan carrying a risk-adjusted interest rate (e.g., higher borrowing costs for a speculative restaurant than for the expansion of an established utility).
- **Founding Operating Agreement:** The founder partners with incoming workers under an initial charter. This agreement can designate the founder as the manager and permit bounded income differentials (such as a 4-to-1 or 6-to-1 ratio between highest and lowest earners).
- **Residual Profit Rights:** From day one, all workers are firm partners. They receive a standard base wage combined with an equity stake in residual profits, preventing capital owners from appropriating surplus value.
Sunkara notes that *The Blueprint* is the first market socialist model to explicitly combine guaranteed benchmark wage floors with residual profit dividends. He illustrates the necessity of entrepreneurial incentives by citing the historical example of Indian-American immigrants who purchased struggling New Jersey motels running at razor-thin 1–2% margins; by working intense 60-to-80-hour weeks and pooling family labor, they managed to revive distressed assets through sheer operational effort.
> “Capitalists contribute entrepreneurial risk and obviously their own managerial labor. In this case, with new firm creation in the book, *The Blueprint*, we lay out a vision, which is obviously an abstract stylized vision in which there is no wage labor.”
`20:00` Benchmark Wages, Hard Budget Constraints, and Entrepreneurial Upside
Bhaskar Sunkara reflects on how small-scale immigrant capitalism operates in America, citing how Gujarati Indian Americans came to operate an extraordinary proportion of U.S. motels by pooling extended family labor and working grueling hours to acquire the next property. While noting that he personally possesses that same entrepreneurial, hard-working drive, he questions whether any society should demand such self-exploitation. To prevent a race to the bottom, his model relies on benchmark wages—similar to the historic Australian award system or centralized bargaining in Sweden—that set firm wage floors across occupational categories (e.g., establishing that a line cook must earn at least $15 per hour). This mechanism deliberately cuts off the "low road" of wage suppression, forcing enterprises to pursue productivity gains through superior management, higher-quality offerings, or labor-saving capital investments.
```mermaid
flowchart TD
accTitle: Market Socialist Firm Dynamics
accDescr: Diagram showing how benchmark wages force efficiency or firm exit, and how entrepreneurial upside is distributed.
subgraph Regulatory_Floor["Regulatory Floor"]
A["Benchmark Wages (e.g., $15/hr Line Cook)"]
end
subgraph Enterprise_Outcomes["Enterprise Outcomes"]
B["High-Road Firms: Capital investment & better management"]
C["Inefficient Firms: Hard budget constraint & failure"]
end
subgraph Governance_and_Pay["Governance & Pay"]
D["Public Bank Loan Repayment"]
E["Worker-Approved Pay Differentiation for Managers"]
end
A --> B
A --> C
B --> D
B --> E
```
Crucially, Sunkara stresses that market socialism must welcome firm failure to eliminate what economist János Kornai famously diagnosed as "soft budget constraints" in Soviet-style command economies. Because state socialist regimes derived their political legitimacy from guaranteeing full employment, they kept dysfunctional enterprises on life support—such as inefficient screw manufacturers whose failure would have rippled outward to halt the entire computer sector. Sunkara argues: “I think you would need this base to encourage firm failure, which is a good in [itself].” When the hosts ask where the upside goes if an entrepreneur takes risk via a public bank loan while employees hold firm equity, Sunkara clarifies that entrepreneurial reward comes through labor compensation rather than private capital ownership. Just as corporate boards and shareholders vote on CEO salaries under capitalism, workers in a socialist enterprise would democratically vote to grant competent, high-performing managers differentiated, higher pay upon renewing their operating agreements.
- The system adopts sectoral bargaining and benchmark minimums modeled on the Australian award system and Swedish centralized wage agreements.
- Firm failure is preserved to prevent Kornai's soft budget constraints, ensuring capital and labor are not trapped in permanently unproductive enterprises.
- Entrepreneurial returns are earned as labor-based pay differentials approved by fellow worker-owners, analogous to how nonprofit directors or corporate managers answer to governing boards.
---
`23:07` Public Housing, Singapore's Model, and Land Markets
The discussion turns to one of the most radical planks in *The Blueprint*: housing. Sunkara concedes that universal public housing is the toughest sell in the book, noting that even for himself—raised in the New York suburbs with aspirations of buying a quiet home in Long Island—the psychological draw of homeownership is powerful. Yet he contends that what people fundamentally desire from homeownership is not financial speculation, but security of tenure: the peace of mind that a landlord cannot abruptly increase month-to-month rent by $1,000 simply because the unit is under market value.
To reconcile security with consumer preference, Sunkara points to Singapore, where land and housing are publicly owned, yet a dynamic market for leases and rents still exists: “All the land and housing is public, but there's still a market for rents.” Under this framework, individuals desiring prime locations (like Manhattan Beach) pay higher rent, while those tolerant of noise pay less. When high rents signal elevated demand, public authorities commission worker-owned construction firms to build aggressively, bypassing restrictive municipal zoning boards and neighborhood vetoes. If neighborhood rents spike abruptly—such as during the pandemic influx into New York's Hudson Valley—the state administratively smooths the increases to preserve affordability while using high-speed public construction to alleviate the underlying shortage.
- The proposed framework borrows heavily from Singapore's public housing and land ownership model.
- Construction is commissioned by the state and executed by worker-owned contracting firms without traditional zoning or community board obstruction.
- The state deploys administrative rent-smoothing to protect incumbent tenants from regional demand shocks while ramping up supply.
---
`26:15` Public Goods, Antisocial Behavior, and Protecting Shared Spaces
The hosts push on the friction points inherent in public housing and shared infrastructure, observing that the decision to buy a private home is often driven by a need for quiet, stability for raising children, and avoiding disruptive neighbors. This raises the broader dilemma of how a socialist society handles antisocial behavior, crime, and disorder in public parks, transit, and housing without alienating the general public. While parts of the broader left have embraced police abolition, the co-host points out that maintaining public spaces—such as keeping the New York City subway clean and safe—inevitably requires mechanisms to penalize or remove bad actors.
Sunkara acknowledges that shared spaces must be actively defended and maintained to remain attractive, rejecting the tendency of American political culture to swing wildly between uncritical indifference and punitive crackdowns: “Americans tend to vacillate between like libertarianism and fascism.” While an egalitarian society with robust universal safety nets would organically resolve many underlying causes of distress, Sunkara argues that democratic socialists must confront antisocial conduct directly. The distinction lies in the moral focus of the intervention: rather than treating offenders purely through retributive punishment or brushing off bystander concerns, the state must step in—even utilizing criminalization where necessary—as a vehicle to divert individuals into supportive state programs that allow them to recover and realize their full potential.
- Protecting the quality of public transit, parks, and housing is critical to maintaining broad public buy-in for universal provision.
- Democratic socialist governance must address street disorder and disruptive behavior rather than telling citizens to ignore it.
- State intervention and legal enforcement are framed not as punitive retribution, but as a compulsory pathway to connect individuals with healthcare, rehabilitation, and social programs.
`30:00` Policing, Welfare Costs, and Social Decorum
Bhaskar Sunkara reflects on how the United States historically prioritized funding policing and the penal system over a robust social welfare state. While this observation is common among leftists, Sunkara pushes back on a standard progressive assumption: that prisons are inherently more expensive than the alternatives. In reality, a truly humane, progressive justice system—one with professionalized staff, training programs lasting over a year rather than three weeks, and lengthy probationary oversight—would require vast financial outlays and dramatically higher staffing ratios. Cheap mass incarceration has functioned as an austerity-driven substitute for a well-funded social safety net, meaning that reforming it will cost considerably more, not less.
```mermaid
flowchart TD
accTitle: Trade-offs in Justice and Public Order
accDescr: Contrasting cheap mass incarceration against a well-resourced progressive penal and social system.
subgraph AusterityModel["Austerity-Driven System"]
A["Short guard training (3–4 weeks)"] --> B["Low staffing ratios"]
B --> C["Cheaper, punitive mass incarceration"]
end
subgraph ProgressiveModel["Progressive Alternative"]
D["Extensive training (1+ years)"] --> E["High staff-to-inmate ratios"]
E --> F["Expensive, rehabilitative justice system"]
end
C -.->|"Requires major funding shift"| F
```
Turning to public order, Sunkara acknowledges having views on civil standards that lean somewhat conservative. While he cautions against an overbearing majoritarianism that infringes upon personal lifestyle choices, he favors clear boundaries on public nuisance and antisocial behavior. For instance, while adults should be free to smoke a joint in private, municipalities should be empowered to ban recreational dispensaries from mounting garish commercial signs announcing weed for sale directly on the street.
- Standard prison guard training in the current penal system often lasts merely three weeks to a month.
- Sunkara argues that a genuinely progressive correctional model requires over a year of rigorous upfront training followed by formal probationary evaluation periods.
- As Bhaskar Sunkara puts it: “And that is a very typical leftist line, but the traditional leftist line would imply that the costs are equal, or if anything, policing and prisons are more expensive, when in fact, they are actually much cheaper than the amount of, you know, let's say if you're going to have a good prison system in a more progressive society, your staffing ratios would have to be completely different.”
---
`31:45` Housing Customization and Capital Improvements Under Public Ownership
The conversation moves to a practical, consumer-oriented critique of social housing: interior decorating, customization, and personal pride of place. One of the main emotional and financial appeals of private homeownership is total autonomy over one's living space—avoiding sterile rental boxes, building a bespoke kitchen, or adding wallpaper—and then capturing that equity if the property appreciates. The co-hosts press Sunkara on whether a public housing model allows residents to renovate freely, and whether anyone gets compensated for adding real value.
```mermaid
flowchart LR
accTitle: Housing Renovations Under Public Tenure
accDescr: Decision pathway for cosmetic changes versus structural capital improvements in public housing.
A["Tenant Renovation"] --> B{"Nature of Work"}
B -->|"Cosmetic / Eccentric (e.g., wallpaper)"| C["No approval needed; tenant pays out-of-pocket"]
B -->|"Capital Improvement (e.g., HVAC, boiler)"| D["Administrative approval process"]
D --> E["Tenant reimbursed for reasonable cost"]
```
Sunkara responds that minor aesthetic customizations (such as hanging wallpaper or basic painting) should remain entirely at the resident's discretion without requiring bureaucratic approval. However, for structural upgrades, he points to existing tax distinctions—like capital improvements that are exempt from sales tax on installation labor in states such as New York (for example, installing a centralized HVAC system or a commercial-grade boiler). Sunkara proposes that substantial capital improvements would undergo administrative review, and if approved, the tenant would be reimbursed for the reasonable expense. More idiosyncratic or eccentric personal alterations would simply be funded out of pocket.
Citing Singapore's extensive and highly successful public housing apparatus as a historical precedent, Sunkara acknowledges that administrative gatekeeping carries real frictions and bureaucratic layers. Yet he maintains that leveraging the power of the state to spur mass construction creates benefits that vastly outstrip those operational drawbacks.
- Structural renovations—such as boiler replacements and HVAC installations—would require administrative clearance but qualify for public reimbursement.
- Sunkara references New York sales tax law on capital improvements as a functional template for distinguishing ordinary cosmetic alterations from durable capital additions.
- With secure tenure, tenant mobility is expected to be lower overall, meaning residents retain long-term use of the upgrades they fund.
- As Bhaskar Sunkara states: “Obviously, there are both distortions and layers of like bureaucracy that come up as a result of this, which leads to inefficiencies. But I think overall unleashing the power of the state to encourage construction. And that effect will grossly, grossly, grossly outweigh any of these inefficiencies.”
---
`37:25` Public Education, School Quality, and Upstream Social Disparities
The hosts introduce the subject of government-provided education, referencing the contentious public discourse surrounding Nikole Hannah-Jones's essay about enrolling her child in a struggling local public school. The debate quickly fractured into familiar ideological camps: conservatives and moderates championed school choice and vouchers so parents could exit failing institutions, while certain left-leaning commentators criticized parents for being excessively invested in the elite outcomes of their individual children at the expense of communal solidarity. The host notes personal disappointment with this dynamic, wondering why there is not a straightforward universalist consensus demanding that every public school simply be brought up to an excellent standard.
Sunkara addresses the structural complexity behind why parity cannot be achieved through school budgets alone. In major urban districts like New York City, underperforming schools frequently receive higher per-pupil funding allocations than high-performing ones. The persistent performance gaps are not primarily the result of insufficient educational spending inside the classroom, but rather acute upstream social failures in the broader community. When children contend with severe housing instability, parent unemployment, chronic neighborhood crime, and dangerous daily walks to school, academic achievement falters regardless of funding formulas.
- Host observations highlight how discourse often polarizes between market-oriented school choice and criticisms of parental ambition, rather than prioritizing universal school excellence.
- Sunkara emphasizes that within New York City, lower-performing public schools frequently operate with higher per-pupil expenditures than well-regarded schools in affluent neighborhoods.
- External socioeconomic headwinds—unstable home environments, parental job loss, neighborhood violence, and student safety concerns—act as primary determinants of academic outcomes.
- As Bhaskar Sunkara explains: “The tricky thing is in a place like New York, the bad schools are better funded per pupil. So it's not a funding problem, but is a wider problem in society.”
`40:00` Public Education, Inequality, and School Calendars
Addressing the role of public education in addressing societal inequality, Bhaskar Sunkara argues that trying to fix structural economic disparities purely through schools, busing, or school choice misses the deeper root causes. In an egalitarian society with an extensive social safety net, employment guarantees, and a fair distribution of income, many of the vicious battles over public school performance and catchment zones would resolve themselves. Joe Weisenthal pushes back slightly, noting that while he shares skepticism that education alone fixes inequality, learning is inherently valuable and people should rightfully expect access to high-quality schools regardless of economic outcomes. Sunkara agrees, pointing out that American public education is radically better today than a century ago—providing universal literacy and barring children from the labor market until graduation. He argues that resolving overarching background economic anxieties would allow the state to resist narrow local special-interest pressures and enable a healthier bargain with public sector employees.
Sunkara observes that because teachers are chronically underpaid, tenure and absolute job security are treated as the only compensation for low wages, making accountability nearly impossible to enforce. In an abundant society with universal employment guarantees, one could pay teachers significantly more while introducing real performance standards, even allowing districts to dismiss the bottom ten percent annually. He also contends that conservative critics raise legitimate points regarding excessive summer breaks and the bloated roster of school holidays. Anticipating his own child entering the public school system in five years, Sunkara jokes that he wants to campaign against schools closing for Diwali. Weisenthal eagerly offers a coalition trade: as a Jewish parent, he will lobby to prune the number of Jewish school holidays if Sunkara takes on Diwali. Sunkara quips that South Asians and Jews can unite in common civic cause so that parents can take individual religious observances without shutting down entire school districts.
> “I think that wage labor is a condition of exploitation. I think that it's an inequality that a good society should not have.” — Bhaskar Sunkara
- Under the current system, teachers often accept lower pay in exchange for absolute tenure protection, creating contentious contract battles whenever accountability or performance is raised.
- Sunkara suggests that with full employment guarantees and higher baseline compensation, schools could realistically pair higher wages with regular performance evaluations, including letting go of underperforming staff.
- Both Sunkara and Weisenthal express frustration with the sprawling school calendar, arguing that whole districts should not shut down for every cultural or religious holiday.
---
`44:30` Why Market Socialism Instead of Just a Stronger Welfare State?
Tracy Alloway pivots the conversation back to the core philosophical question: if an expanded social safety net, full employment guarantees, and progressive taxation can solve so many problems, why take the radical step toward market socialism rather than settling for traditional Nordic-style social democracy with robust public spending and universal healthcare? Sunkara explains that his position rests on both normative principles and hard historical precedent. On a moral level, he views wage labor under capitalism as fundamentally exploitative. On a practical level, history demonstrates that social democratic welfare states eventually run into an insurmountable structural barrier: the private ownership of capital and the power of capitalists to withhold investment.
```mermaid
flowchart TD
accTitle: The Social Democratic Impasse vs. Market Socialism
accDescr: Diagram illustrating the Swedish dilemma where full employment prompts a capital strike versus the market socialist worker-ownership model.
subgraph SD["Social Democracy (e.g., 1960s–70s Sweden)"]
F["Full Employment & Macro Stability"] --> W["Workers Gain Power & Demand Higher Wages"]
W --> S["Capitalist Profit Squeeze"]
S --> CS["Capital Strike: Withholding of Private Investment"]
CS --> R["Rollback of Welfare State & Re-imposition of Unemployment"]
end
subgraph MS["Market Socialism Alternative"]
OW["Worker Ownership & Dividend Shares"] --> DS["Democratic Investment via Public Banking"]
DS --> ST["Eliminates Threat of Private Capital Flight"]
end
```
In 1960s Sweden, full employment was sustained alongside macroeconomic tools that kept inflation in check, giving workers unprecedented security. However, secure workers inevitably demanded higher wages and democratic control over industry. Faced with shrinking profit margins and union militancy, Swedish capitalists retained the ultimate trump card: the decision not to invest. When combined with global economic shocks like the 1970s OPEC crisis, the social democratic compromise proved politically unstable. Left-wing social democrats attempted to overcome this dilemma through worker-ownership initiatives like the Meidner Plan—gradually transferring corporate equity into worker-controlled funds—but the capitalist class resisted, forcing a retreat toward neoliberal deregulation, spending cuts, and deliberately engineered labor market slack.
> “And especially at contingent things like the OPEC shock and greater globalization starting in the 70s and onward, but it actually turned out to be a system that was economically possible, but politically unstable.” — Bhaskar Sunkara
---
`46:45` Worker Ownership, Automation, and Idiosyncratic Politics
Expanding on the structural failure of social democracy, Sunkara emphasizes the critical difference between the power of "exit" and the power of "voice." While social democracy frees workers from the feudal bounds of serfdom, weak welfare states like the United States leave workers functionally tethered to their jobs because healthcare and core benefits are privatized. Yet even in a generous welfare state with genuine power to quit, workers are denied a democratic voice in how their workplaces operate. Granting workers residual profit rights and democratic governance completely alters incentives surrounding technological modernization. When workers receive dividends rather than facing layoffs from automation, they no longer have reason to hoard knowledge, resist productivity gains, or oppose artificial intelligence tools designed to eliminate mundane labor.
Weisenthal observes that Sunkara occupies a uniquely heterodox political posture: an avowed socialist who embraces markets, prices, and consumer choice like a classic liberal, while simultaneously adopting conservative instincts regarding public safety, policing, and cracking down on unlicensed weed shops. Weisenthal references continental political theory regarding voluntary goods and individual preferences, pointing out that when society starts from atomized individual tastes—such as one person demanding regular milk while another prefers almond milk—classical theorists argued the only path to collective unity was modifying human desires. In contrast, Sunkara’s market socialism seeks to preserve consumer diversity and voluntary exchange without subordinating human life to private capital owners.
> “A workplace filled with people who get residual profits, who get dividends, are less likely, these ordinary workers will be less likely to hide their knowledge from their employer.” — Bhaskar Sunkara
- In a typical capitalist enterprise, workers resist automation and AI because labor-saving efficiencies directly threaten their livelihoods.
- Under worker-owned enterprises receiving dividend-based residual profits, employees directly share the gains of productivity increases.
- Sunkara's blend of socialist ownership, liberal consumer freedom, and civic order challenges conventional ideological divides on both the American left and right.
`50:00` Reconciling Liberalism and Socialism
The discussion turns to the philosophical limits of state power and whether the state should attempt to shape human behavior or homogenize society. Bhaskar Sunkara rejects the extreme communist view of total social modification where the individual ceases to be the unit of politics. Instead, he advocates for a synthesis of individual rights and collective welfare, noting that this balance is already deeply embedded in modern democratic socialist thought. He argues that the state does not have the right to direct an individual's labor, representing a fundamental boundary where liberal rights must be preserved.
At the same time, Bhaskar acknowledges that all states actively shape behavior, and he believes they should do so to minimize antisocial friction. For example, he expresses a desire for the state to curb the intrusive nature of sports betting apps by banning push notifications, even if the apps themselves remain legal. He also points to the historical success of reducing smoking rates through state intervention, noting that with nicotine use rising among Gen Z, the state should create more friction by taxing alternative nicotine products to steer behavior.
“In part, I believe in a reconciliation of liberalism and socialism.”
`51:15` The School Holiday Debate and Economic Trade-offs
The hosts press Bhaskar on his highly controversial stance against school holidays. They ask why a socialist society cannot simply align worker holidays with school schedules so parents can spend quality time with their children, rather than eliminating school breaks. Bhaskar responds by framing the issue around economic trade-offs. While he supports a shorter workweek—suggesting he would gladly find ways to enjoy his leisure time if a 35-hour workweek were legally mandated—he cautions that more holidays inevitably mean less production and a smaller economic surplus for society.
When it comes to education, Bhaskar argues that the system cannot afford further slippage, especially following the learning loss of the COVID-19 pandemic. He advocates for a highly structured educational environment to maximize student outcomes. His specific, self-described "non-socialist" vision for schools includes a nine-to-five school day, a high frequency of low-stakes standardized testing, and the elimination of certain cultural holidays like Diwali from the school calendar, pointing out that Diwali celebrations primarily take place in the evening anyway.
“If there was a law really mandating that everyone really sticks to 35, I guess I would find things to do and I would enjoy it.”
`52:45` Market Socialism and the Socialist Calculation Debate
The conversation shifts to the internal dynamics of the American left and the Democratic Socialists of America (DSA). The hosts observe that the modern left is incredibly broad, ranging from class-focused socialists to hyper-liberals championing causes like the decriminalization of sex work. Bhaskar explains that within this fragmented landscape, market socialism has actually become the mainstream position. However, a debate persists between those who see markets as a permanent necessity and those who believe that future advancements in artificial intelligence will eventually solve the "socialist calculation problem," rendering markets obsolete.
Bhaskar firmly rejects the idea that technology can replace the market mechanism, aligning himself with classical liberal economists on this specific point. He argues that while AI might help construct a static, theoretically perfect plan, it cannot execute that plan in the real world because human wants and needs are constantly changing, and central planning cannot resolve fundamental incentive problems. He points to the success of *Jacobin*—which has become the largest publication on the socialist left in over a century, since the era of the socialist newspaper *Appeal to Reason*—as evidence that a serious, heterodox interrogation of socialist history and market economics is gaining ground.
“I'm on the von Mises-Hayek side of the calculation debate.”
- **The Socialist Calculation Debate:** Bhaskar sides with Ludwig von Mises and Friedrich Hayek, arguing that central planning fails due to dynamic human preferences and incentive issues that AI cannot solve.
- **Jacobin's Reach:** *Jacobin* is identified as the most widely read socialist publication in generations, marking a shift toward more practical, market-friendly socialist ideas.
- **The Role of AI:** While some leftists believe AI can collect enough data to plan an economy without firms, Bhaskar argues that the lack of a static dataset on human desires makes this impossible.
`54:30` Post-Interview Reflections: The Challenge of Democratic Transition
Following the interview, hosts Joe Weisenthal and Tracy Alloway reflect on Bhaskar's unique political blend. They note the fascinating contradictions in his vision: a society with public housing, a public banking system to fund local restaurants, and plenty of consumer choices in the bread aisle, yet one that also features a ban on weed shops, fewer school holidays, and rigorous standardized testing. They contrast this structured, choice-rich market socialism with the traditional, grim stereotypes of state-planned economies.
However, the hosts highlight a massive, unresolved question that the book bypasses: the transition. They discuss the immense practical difficulty of moving an ultra-capitalist society like the United States toward market socialism. In a democratic system with elections every two years, maintaining the long-term continuity required for such a massive structural shift poses a near-impossible political challenge, as a change in administration could easily lead to a reversal of the entire socialist project.
“Getting there, I guess that's always been the challenge, but getting there and then maintaining there so that actually like we have to like stick with it and follow through on it.”
`01:00:00` Outro and Production Credits
Joe Weisenthal brings the episode to a close, running through the show's social handles, community channels, and production team credits. Listeners are directed to follow guest Bhaskar Sunkara on social media, as well as the *Odd Lots* production staff, and invited to keep the conversation going around the clock in the community chat room or through the daily newsletter.
Weisenthal makes a direct appeal to listeners who appreciate deep-dive discussions on economic theory and political philosophy, urging them to leave positive reviews and engage with the video broadcast. He also reminds Bloomberg subscribers how to access an uninterrupted, ad-free listening experience across platforms before exchanging final thanks with the guest. As Weisenthal sums up: “And if you enjoyed this conversation, if you like it when we talk about the different flavors of socialism, then please leave us a positive review on your favorite podcast platform.”
- **Guest handle**: Bhaskar Sunkara (@sunraysunray)
- **Host handle**: Joe Weisenthal (@TheStalwart)
- **Production team handles**: Carmen Rodriguez (@CarmenArmand), Dashiell Bennett (@Dashbot), Kale Brooks (@KaleBrooks), and Kevin Lozano (@kevinllozanno)
- **Community & content links**: Discord community at `discord.gg/oddlots` and the daily newsletter at `bloomberg.com/oddlots`
- **Subscriber benefits**: Bloomberg subscribers can link their account to Apple Podcasts to stream all catalog episodes completely ad-free.
`01:00:46` Sponsor Messages: Underdog Rips, ChatGPT, and UCI Health
The broadcast concludes with sponsor messages spanning digital collectibles, workplace productivity tools, and healthcare programming. Digital sports platform Underdog highlights its "Rips" feature, which allows users to purchase and open digital packs starting at $5 to reveal real physical trading cards across football, basketball, and Pokémon, featuring instant buybacks at full market value or home delivery with values climbing up to $125,000.
A subsequent message highlights ChatGPT for workplace applications, positioning the tool beyond basic question-answering as an engine for converting briefs, project data, notes, and outlines into structured workflows, trackers, and decks on Plus and Pro tiers. Finally, Orange County's academic health system, UCI Health, promotes its *Live Well* podcast series, spotlighting physician-led discussions on preventative wellness, nutrition, and mental health.
## Notable quotes
> `40:00` I think that wage labor is a condition of exploitation. I think that it's an inequality that a good society should not have. — Bhaskar Sunkara
> `52:45` I'm on the von Mises-Hayek side of the calculation debate. — Bhaskar Sunkara
> `50:00` In part, I believe in a reconciliation of liberalism and socialism. — Bhaskar Sunkara
> `37:25` The tricky thing is in a place like New York, the bad schools are better funded per pupil. So it's not a funding problem, but is a wider problem in society. — Bhaskar Sunkara
## Mentioned
Bhaskar Sunkara, Joe Weisenthal, Tracy Allaway, Zohran Mamdani, Democratic Socialists of America, SYRIZA, The Blueprint: How Socialism Can Work in the Real World, Ben Burgis, Mike Beggs, Jacobin, The Nation, Mondragon, Goldman Sachs, Ezra Klein, János Kornai, Nikole Hannah-Jones, Rudolf Meidner, Ludwig von Mises, Friedrich Hayek, Appeal to Reason, Singapore Housing & Development Board, Underdog, ChatGPT, UCI Health
## Video description
<p data-renderer-start-pos="105">In September, Gallup released a poll that showed that 43% percent of Americans viewed socialism positively, the highest approval since Gallup began the poll back in 2010. Since Zohran Mamdani won the NYC mayoral election, the left has made a number of gains across national politics. Still, the majority of Americans view socialism negatively, according to Gallup. As a longtime DSA member and veteran of leftist media, Bhaskar Sunkara is one of socialism's leading advocates, and he's spent much of his career charting what a socialist economy in America might look like. Unlike some other leftists, he believes the market has a place. In fact, he thinks markets and entrepreneurs are an objective good in society. He proposes a vision of so-called "market socialism" in his recent co-authored book <em data-renderer-mark="true">The Blueprint</em>, and he lays out this system for us in today's episode. We talk about how many features of capitalism — from small businesses to monetary policy — might be remade under socialist principles.</p> <p data-renderer-start-pos="1111">Read more:<br><a href="https://www.bloomberg.com/news/articles/2026-10-16/aoc-boosts-abdul-el-sayed-and-2028-talk-with-1-million-check?utm_medium=referral&utm_source=podcast&utm_campaign=odd_lots&utm_content=article" data-renderer-mark="true" data-is-router-link="false" data-testid="link-with-safety">Ocasio-Cortez Boosts El-Sayed and 2028 Talk With $1 Million Check</a><br><a href="https://www.bloomberg.com/news/articles/2026-10-16/an-economist-makes-the-case-for-mamdani-style-populism?utm_medium=referral&utm_source=podcast&utm_campaign=odd_lots&utm_content=article" data-renderer-mark="true" data-is-router-link="false" data-testid="link-with-safety">An Economist Makes the Case for Mamdani-Style Populism</a></p> <p data-renderer-start-pos="1244">Only <a href="http://bloomberg.com/" data-testid="inline-card-resolved-view">Bloomberg - Business News, Stock Markets, Finance, Breaking & World News</a> subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at <a href="https://www.bloomberg.com/subscriptions/oddlots?in_source=oddlotspodcast" data-renderer-mark="true" data-is-router-link="false" data-testid="link-with-safety">bloomberg.com/subscriptions/oddlots</a></p> <p data-renderer-start-pos="1416"><a href="http://bloomberg.com/subscriptions/oddlots" data-renderer-mark="true" data-is-router-link="false" data-testid="link-with-safety">Subscribe to the Odd Lots Newsletter</a><br><strong data-renderer-mark="true">Join the conversation:</strong> <a href="https://discord.gg/oddlots" data-renderer-mark="true" data-is-router-link="false" data-testid="link-with-safety">discord.gg/oddlots</a></p><p>See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.</p>
Bhaskar Sunkara argues in *The Blueprint* that a sustainable socialist economy must preserve market mechanisms, price signals, and consumer choice while replacing exploitative wage labor with worker-managed enterprises financed by public banks.
The Three Pillars of Market Socialism (10:00)
Sunkara defines market socialism around three institutional spheres: a consumer goods and services sector managed by worker-owned cooperatives, an expansive non-market public sector for baseline welfare, and a network of public banks allocating social capital. Rather than relying on central planners to ration identical baskets of goods, the model retains dynamic markets to preserve consumer choice. Sunkara argues that traditional socialist grievances with markets stem not from exchange itself, but from skewed income distributions that redirect production toward luxury goods and from workplace exploitation.
Enterprise Creation and Hard Budget Constraints (15:40)
Under Sunkara's framework, prospective entrepreneurs submit business plans to public banks to secure loans at risk-adjusted interest rates, rather than raising private equity. Incoming employees join as full partners entitled to residual profit dividends alongside standardized benchmark wage floors, modeled on Swedish centralized bargaining and the Australian award system. These wage floors prevent a race to the bottom, compelling enterprises to generate productivity through better management and capital investment.
To reward founders without restoring private capital ownership, founding agreements can permit bounded internal pay ratios (such as 4-to-1 or 6-to-1) and worker-approved managerial pay differentials. Crucially, Sunkara stresses that market socialism must enforce hard budget constraints by allowing inefficient firms to fail, avoiding the resource misallocation that economist János Kornai identified in Soviet-style economies that propped up non-viable enterprises to preserve full employment guarantees.
The Structural Limits of Social Democracy (44:30)
Sunkara contends that traditional Nordic-style social democracy cannot serve as a permanent end-state because it leaves private ownership of capital intact. In post-war Sweden, sustained full employment empowered workers to demand higher wages, squeezing business profits. Because capitalists retained the unilateral power to withhold investment—a dynamic Sunkara describes as a capital strike—the social democratic model proved politically fragile and eventually yielded to deregulation and austerity.
By democratizing firm ownership and capital allocation, market socialism aims to overcome this impasse while altering worker attitudes toward productivity. Sunkara points out that under capitalism, employees rationally resist automation, artificial intelligence, and organizational efficiencies because cost-cutting leads to layoffs. When workers hold equity stakes and receive dividends, they directly benefit from labor-saving modernization without risking their livelihoods.
Public Housing and Regulating Shared Spaces (23:07)
On public infrastructure, Sunkara advocates adapting Singapore's housing framework: the state owns land and commissions worker-owned construction firms to build aggressively without municipal zoning vetoes, while maintaining a market for rents. Administrative smoothing protects incumbent tenants from abrupt demand spikes, and residents can freely make cosmetic changes, receiving public reimbursement for verified structural capital improvements like HVAC systems.
Sunkara also departs from elements of the American progressive left by defending civic standards in public spaces. He argues that public transit, parks, and housing must be actively protected from crime and disorder to maintain universal buy-in, rejecting punitive mass incarceration while acknowledging that progressive, rehabilitative justice models require higher staffing ratios and substantial funding rather than generating immediate cost savings.
While *The Blueprint* presents a stylized institutional model combining market efficiency with egalitarian ownership, podcast hosts Joe Weisenthal and Tracy Alloway observe that the framework leaves open the political problem of transition. In a democratic system characterized by frequent election cycles, executing and sustaining a structural shift away from private capital without facing immediate political reversals remains a formidable hurdle.
[40:00] Bhaskar Sunkara: I think that wage labor is a condition of exploitation. I think that it's an inequality that a good society should not have.
[52:45] Bhaskar Sunkara: I'm on the von Mises-Hayek side of the calculation debate.
[50:00] Bhaskar Sunkara: In part, I believe in a reconciliation of liberalism and socialism.
[37:25] Bhaskar Sunkara: The tricky thing is in a place like New York, the bad schools are better funded per pupil. So it's not a funding problem, but is a wider problem in society.
Original transcript
[0:00] There are some market stories where you want every detail. Joe and I have made quite a few podcasts on that basis, but sometimes you've only got 10 minutes and just want to know what's moving markets fast. That's the Barclays Brief podcast. Every week, experts from Barclays Markets and Research get you up to speed on what's happening and what to watch next. Concise, focused, and brief. Search Barclays Brief wherever you get your podcasts. Some people treat ChatGPT like some kind Thank you. projects. Get started at ChachiPT.com by selecting Work Mode. Available on Plus and Pro plans. Let go of just yet. Have it shipped straight to your door. Want the cash? Sell it back instantly at 100% of its fair market value. No listing, no negotiating, no stranger asking if you'll trade it for a used jet ski, even though jet skis are super sick. Best part? There are some serious grails in the mix with maximum card values reaching up to $125,000 depending on your pack tier. You can also check the live odds and see what you could pull before you rip and what other cards are being pulled by fans. and get in on the chase. Get five free rips packs when you deposit $5. Real rips, real cards, real cash. Only on Underdog. Unleash your dog. 18 plus terms apply. Top grails are extremely rare. Bloomberg Audio Studios. Podcasts. Radio. News. Hello and welcome to another episode of the Odd Lots podcast. I'm Joe Weisenthal. And I'm Tracy Allaway. Tracy, I have a question for you. Do you ever get... angry tweets from people. I mean, I know you get angry. We all do get angry tweets from people. Do you ever get angry tweets from people who say that Zoran is our fault? Oh, yes. I do, too. Yes. So for those who don't know, Zoran Mamdani came on before he became mayor of New York when he was campaigning. He was at like 5% in the polls. Yeah. And then within a week or two of his All Thoughts appearance, he started gaining some real momentum. I regularly get these tweets, usually from people who are very do not like the fellow who are like, oh, yeah, you platformed Zoran and now he's our mayor, etc. But That's not really the point. The point is that Obviously, in New York and across the country in various primaries and in the public's imagination, socialism is on the rise. And, you know, there's a big fight about the future of the Democratic Party, about, you know, like the degree to which DSA or socialism in general will be the direction of the party going forward. Yeah, I don't know what that means, but, you know, no one knows what that means exactly. DSA, definitely a hot buzzword at the moment. And you see lots of people talking about Various flavors of socialism. Or actually, I should say what tends to happen is DSA gets thrown around quite a lot. Yeah. And then you discover once you start digging into it that actually there are different flavors within the party. And those don't necessarily get discussed as much as they should. You know, I was in Greece during the 2012 election. bottles, etc. And then there was the main parties and then there are these small parties. Do some of them have bigger tents than others? They do. That was a joke. Yeah, but it's true. But also, you know, so like the main when I was there in 2012, Syriza, the main socialist party or the left party, they had a tent and then there was a communist tent. And then there were two other communist tents and they were both right across the street from each other. They both had like the hammer and sickle on their logo. And I was like, what's the deal? Like, why are you like not? And they're like, well, that's the We're the ones who don't want to. So when you say there's different flavors of socialism, this is like the classic thing on the left, which is just this extraordinary ability.
[5:00] to splinter itself over small differences. Absolutely. What does even left politics mean is a fight in itself, regardless of then the broader fight about whether the left will gain influence in the Democratic Party and then perhaps the United States. But we're going to talk about a very specific flavor of socialism. One that's kind of controversial among a lot of other socialists, right? That's right. Let's just get right to it. I'm very excited to say we really do have the perfect guest. We're going to be speaking with Bhaskar Sankara, co-author of The Blueprint, How Socialism Can Work in the Real World. He's a longtime DSA member, founding editor of Jacobin Magazine, and currently president of the nation. So truly the perfect guest to talk about all these topics. So Bhaskar, thank you so much for coming on OddLots. Thanks for having me. So this book that you've co-authored with Ben Burgess and Mike Beggs, The Blueprint, we'll get it. We'll get into what The Blueprint is. But I'm curious, like, who the audience is and by which I mean, is this sort of like the left's answer to abundance in which it's trying to sort of influence where the Democratic Party goes? Or is your argument to fellow socialists about what social what flavor or what socialism should be and how it can work? egalitarians. It doesn't necessarily have to be socialist. But I remember I first became interested in socialist ideas when I was 14 years old or so. And many such cases, but they don't follow through, right? I'm very stubborn. I kept my commitments. It took me until I was 17 to join the Democratic Socialists of America. But my first question was, wouldn't this just lead to It was, isn't it better that there's, you know, a line for bread than no bread at all? Which is like a plausible answer if you're living in China in the 1930s, you're living in, you know, but not in the wealthiest societies known to men. And I really was needed convincing. And it took me actually encountering other models of socialism, mostly market socialist models, to be like, OK, this could in fact work. say, we start with our critique of the present and we start with our demands and our demands, our immediate demands are demands that a lot of people who are liberals or even moderates might find agreeable. Like, let's say we should have a single payer health insurance like they have in much of Europe or things like that. But to me, when the left was at its strongest in the 1930s, pretty bad. We now know the Soviet economy wasn't really working in the 1930s. And we now know the depth of the authoritarianism. But the communists could point to that. In the 60s and 70s, there was people on campus that could point to what was going on in Cuba, and they could join the Vence Ramos Brigade. And in a way, I thought it was necessary now, and my co-authors did as well, to really dive into the argument of, is socialism technically possible? Then we can debate whether So I think you have to be an egalitarian to get that far with me. But if you are, I think you should be confident that there is a different model in capitalism. So what's market socialism then? And how does it, I guess, differ from more traditional definitions of socialism? Well, I think to start with, you could say that we're taking a look at what already exists in the real world and we're trying to create a coherent model around it. Monet's capitalism is a lot different than the capitalism of the 19th century. I think it was Ezra Klein who had the line that the United States is an insurance company with the military, which I think, whether he knows it or not, was a play on the line about the Soviet Union. The Soviet Union is like a gas station with a military or something. There was a common refrain in the 80s. So we know that there can be extensive welfare states. There can be certain guarantees. We know that there's tools of demand management that you don't have to be a socialist to believe in. We know there's this huge role for the state. We also know from experience that labor managed firms actually work in practice. There's all sorts of reasons why people wouldn't want to start or participate in a labor managed firm. In part, it often requires putting in your own money. So you're labor and your savings, all your eggs are in one basket. But we do know that once those firms do start. So, for example, Goldman Sachs. There's plenty of models in which there's partner-based firms that... exist and that they work. Mondragon, the Spanish cooperative that at one point was the fifth or sixth largest
[10:00] entity in Spain is the example that I like to use. But now that I'm venturing further afield from the left to places like, you know, the Bloomberg offices, I might pull that one out of my hat, my hat too. But we know that those two work. So how can they work together? Can you have, in fact, a sphere for commodity production where consumer goods and services are produced run by cooperatives? And can you still have an expansive public sector? And we already have public banks of a different purpose? And can you connect the three together into a system that is more egalitarian than capitalism, but is at least reasonably close to its efficiency? I would argue more efficient, but let's say reasonably close to its efficiency. So you mentioned the fact that, okay, we could have entities, organizations, companies that are labor-owned and sort of internally egalitarian. Another thing that you talk about in the book is, you think like basically consumer choice is good or that consumer choice is important. And one way that you sort of maximizing welfare is to not just tell people like you get your fixed allocation of kale and Dr. Bronner soap and almond butter and all this stuff that actually there is an important role for like a market for goods. Yeah, I normally don't drink coffee. It would be insane if a demand for a social society was that all three of us should have an equal allocation. of coffee. My co-authors are more careful in how they articulate this argument than me. They get along better with people on the left at times. We like having the least careful person on the podcast. But, you know, markets are are great. I think they're an objective good. And the socialist problem with markets boils down to one, the uneven distribution of income, which means if we are voting with our dollars, then, you know, someone else is a lot more dollars than me skew the economy towards luxury goods. And yes, there is a trickle down effect from that spending on luxury goods, but it's less useful than an economy rooted towards where the median person is. So they have that criticism. They also have the criticism that the things that we're consuming in markets are produced under conditions of exploitation. And this is obviously a normative argument to use this word. Like junior analysts at a bank. Junior analysts at a bank are absolutely Paralegals and law firms are exploited mid-levels. You know, partners, I imagine like you're a true dream of an alienated... They've gone through the exploitation to become partners. Exactly, exactly. That's kind of an extreme example. But there's also just the exploitation that people feel on factory floors and things like that. So in this model, there's a more equal distribution of income. workers, if management is elected, if people not only receive a wage, but receive a share of residual profits, like a dividend, then it's hard to say that this is a condition of exploitation. Then there's a broader set of criticism that has to do with more philosophical alienation from production and things like that. And honestly, I think that those can maybe be abated if you're really an egalitarian. If you're a member of the far left in a future social society, I might be a right, of this future society. And you could say, well, we're going to have mandatory job rotations and things like that to reduce alienation. But I think that's just a product of living in a society with a very complex division of labor. There are some market stories where you want every detail. Tracy and I have made quite a few podcasts on that basis, but sometimes you've only got 10 minutes and need to know what's moving markets and why. That's the Barclays Brief Podcast. Every week, experts from Barclays markets and research get you up to speed on what matters and what to watch next. About the time it takes to grab a coffee. So search Barclays Brief wherever you get your podcasts. underdog and get in on the chase deposit five dollars get five free packs real rips real cards real cash only on underdog unleash your dog 18 plus terms apply top grails are extremely rare some people treat chat gpt like some kind of smart search engine and some use it to get work done chat gpt work is a new way of working in chat gpt that can take action across your apps
[15:00] files, stay with a project for hours if needed, and turn a goal into finished work. It's designed to help you move from a chaotic starting point to a reviewable first version. So all the source materials, briefs, and scattered information that you have to grind through to turn into something useful can just become something useful. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com by selecting Work Mode, available on Plus and Pro plans. As your wealth grows and your needs change, finding the right financial advisor can make all the difference. Edward Jones offers comprehensive wealth management to help give you a greater sense of confidence and control while you focus on living a life you love. Your Edward Jones advisor takes the time to truly get to know you and provide personalized strategies to help keep your goals on track. Whether you're passionate about charitable giving, considering business succession, or legacy planning with the next generation in mind. are custom built around what matters most to you. Because the key to being rich is knowing what counts. Edward Jones, member SIPC. So just to help us conceptualize the idea of market socialism and the blueprint that you lay out in your book, can you maybe describe if I'm... would-be restaurateur. I want to open a restaurant. Where does the financing actually come from? How am I hiring my employees? How am I distributing, I guess, the profits from my business, although it is a restaurant, so there probably won't be many. But let's just assume there are some. Because when I think about the traditional economy, you know, open up a new business, you go to a bank, maybe you inherit the money. Yeah, increasingly, you keep the profits, you probably exploit some of your low paid, you know, of starting a new business in a market socialist economy and where the money actually goes. And does Tracy get to keep the profit for the risk of opening up the restaurant? Well, I think this gets to the useful things that capitalists do. And I mean useful in the sense that as a socialist, it's very easy to just fall into the hyperbole of calling capitalist parasites or whatever else, at least in the old 20th century language. But capitalists contribute entrepreneurial risk and obviously their own managerial labor. In this case, with new firm creation in the book, The Blueprint, we lay out a vision, which is obviously an abstract stylized vision in which there is no wage labor. And we sort of explain why we believe this to be an exploitative relationship at a normative level. We draw actually on kind of Rawlsian liberalism to do so, which I'm sure will win many favors with me on some parts of start this firm, you would be applying for financing from a public bank the same way you would apply for financing today. You would have to have a business plan. You would have to receive a loan that would be at an interest rate that the bank feels comfortable with. A loan for a restaurant would probably be set at a higher interest rate than a loan for the expansion of an already profitable, successful business. And you would then at that point form with other people who looking to join your firm, a first operating agreement. This first operating agreement would probably set you up as a manager. It'd probably allow you a large differentiation, potentially, in income, a four-to-one differentiation, a six-to-one differentiation, whatever it might be, and you would set up your firm. But from the start, the people who are working at the firm would be partners in the firm. So they're paid in equity, not income. paid both a base rate and paid residuals. And there's many reasons why you have to have this sort of benchmark wage system. And as far as I know, the blueprint is the first sort of model of market socialism that includes this. But for one, when I think about what I would do if I was in this future society, you know, I've started a bunch of entities in the past. I sort of like, and I don't know how much of this is of apocryphal, I hope I'm not going to offend any listeners, I believe this is an accurate story, of the first Indian American who decided to buy a motel in New Jersey. And as far as I know, he encountered a motel that had a very, very low profit rate, maybe like 1-2%, barely surviving. And what he did was essentially fire most of the staff and work 60 to 80 hour days and bring in his children, his wife and others into the business. And they turned it around.
[20:00] It's making enough profit. He's able to buy the next place. Then he brought over his nephew to go run it along the same line. And now an extraordinary amount of hotels and motels in the U.S. are run by Indian Americans, particularly Gujaratis. That is exactly what I would do in a socialist society. I would sweat out my own labor. I like work. I like entrepreneurialism. I have a large extended family. I have lots of first cousins that I development. The question is, do we really want any society, much less a social society, be structured that way? So this system has benchmark wages, which you consider minimum wages for broad categories of professions. And this is not unlike the old award system in Australia. It's not unlike the dynamics of centralized bargaining like you had in Northern Europe and places like Sweden. So basically, you're saying, OK, a line cook must be paid $15 an hour. It's not an extraordinary amount of money, but it ensures that a business pursues the high road of more efficiency and other firms, its investment and labor saving technology. It's these capital investments in a restaurant. It would just be better management techniques and maybe having a better product. And if not, the firm would go under, which is also resolves one of the main problems that socialist economies Janis Korn and I called soft budget constraints, right? So their political legitimacy came from maintaining full employment. So you would have these very inefficient firms that were kept alive and also an inefficient firms that was producing screws. If you got rid of it and try to restructure it, you would end up jeopardizing your computing sector that relied on those because of the nature of command economy. So I think you would need this base to encourage firm failure, which is a good in go under, obviously, there's always the risk of hard budgets, right? You know, there's always a risk of there's a pandemic and all the restaurants go away. Wait, so who gets the upside? Because my employees now have some stake in the company. I did take out a loan from the bank, but it's a public bank and, you know, the interest rate might be relatively high. And then presumably as an entrepreneur, I would like to see some upside as well. You get the upside just merely in terms of what you're being paid for your labor. If you are, in fact, a competent manager, if you are... the person who should be running this, then workers will agree to pay differentiation. So after your first operating agreement, when that expires and getting ready to get another operating agreement, you'd be paid more than your peers. All those entrepreneurial projects that I mentioned before that I've started are either nonprofits or they're subject to a board, right? I think a lot of people actually operate in these conditions. You can think of a CEO of a big company where compensated in large part by their incomes, which are justified and voted for by shareholders under capitalism. It's not so different here. Speaking of hotels, I saw the July 4th, 1999, one of my favorite all time headlines from the New York Times, a Patel Motel cartel to describe the prevalence of Indian America. It was so good. I remember reading that in the high school. It's really good. And it's interesting. You talk about the importance of firm failure. spectrum than the sort of pure laissez-faire failure is good that many people now reduce him to talk to us about like The big one or a big one is housing and the provision. So we have like some public housing in America, but not that much, etc. Talk to us about like a vision of housing, because this is much more important probably than restaurants. It's very funny because I just knew immediately that this would be the hardest sell because this was even a hard sell for me because this is one of the most radical parts of the book. You know, I'm from the suburbs of New York. My dream is homeownership, you know, maybe a nice place in Long Island, escape the city. put some of my savings into home. But when I think about what I actually want from a home, what I actually want from a home is some level of security. I don't want my landlord to be able to say, tomorrow, you're slightly under market rent. Hopefully, he's not a listener. Slightly under market rent goes up by a thousand bucks a month because I'm on a month-to-month lease. So in my There has to be some room to kind of get under the skin of your listeners. All the the they do in Singapore and our listeners probably love Singapore. All the land and housing is public, but there's still a market for rents. So if you want to live on.
[25:00] or manhattan beach or something like that and you know i'm comfortable as i am living on like very loud roads like that's that's been my my trick to surviving rent in the in new york then uh it makes sense that you would pay more for your your house and then if construction is all kind of commissioned by the public sector itself yeah even if individual firms are all worker-owned but the state itself is triggering housing construction then they just start building where there's high demand and rents higher. There would have to be some smoothing because I do believe in security. tenure. So if the market value of your area that you're living in goes up by 20, 30, 40%, like some of our friends in the Hudson Valley had happened around the pandemic, then I think that would have to be smoothed out by the state. So there is some element of administrative price setting, which does create distortions. But the state is making up for it with rapid construction. So there's no zoning barriers, there's no community board barriers. So in a way, it is a very status I was a renter for a very long time. The reason I decided eventually like, OK, I'm going to bite the bullet and buy a home because I have two children. And at that point, it really becomes difficult to move. And so for your point of like secure, I never really cared about homeownership per se until I wanted to solve that problem of I just don't want to be forced to be in a position to move again. So like I had to move. So I, in theory, if I could just have a stable place to live, I would be totally fine with just like being a renter for a very long time. But when we think about like sort of the public provision of housing, one issue that comes up is sometimes your neighbors really suck. You're apparently OK with like really loud noises. I don't like loud noise. I like to get sleep. It's different. three nights a year, someone in a neighboring house will just have like these insane raves. And like, I can't sleep those nights. And I can accept three nights. But sometimes neighbors are not good. And sometimes the answer is police in terms of like, okay, there's just drug use or just insanely loud parties, et cetera. And some people on the left are very uncomfortable. Clearly, there was a big abolish the police movement. I know you've criticized police abolition, but sometimes for public goods, whether we're talking about public housing, public transportation, et cetera, in order for them to be nice, in order for them to be desirable, there has to be like a role for like, we're going to like remove or penalize miscreants. the public provision of goods, how we deal with like, this is not going to be desirable if like I'm in the vicinity of miscrants. Well, I think you have to address antisocial behavior. So I'd probably address it in the same way as you would want to address it. I would maybe put my emphasis a little differently on the actual person doing the antisocial behavior and say, is the person engaging in drug use really important? putting themselves in a position where they're going to reach their God-given potentials, right? Like, I think the social democratic response is basically the same. And I think the democratic socialist response is basically the same. But it's one that centers a little bit more the lives and experience of those engaging in antisocial behavior rather than bystanders. Same thing with if you're passing an encampment on your way to work, I think we hear a lot of concerns of other about the need to actually criminalize the behavior, not to punish people, but to actually get them into state programs where they could kind of get healthy and reach their potentials. But I think the toolkit would be much the same. Okay, but you know, the subway. And I actually think the problems of the subway are way overrated. The subway is very good. I really like the subway. But like, there are two things. There are some people who different from me, they perceive, oh, there's a bunch of lunatics on the subway. And then there are other people who just say like, The lunatics aren't bothering you. It's fine, etc. And this is where I'm trying to get like this is the intro. the left fight, which is like, if we're going to have public provision of these goods, like, how do we make them good and desirable? Yeah, I think Americans tend to vacillate between like libertarianism and fascism. You know, it becomes like, oh, just put your headphones on, who cares? And then it becomes like a very violent response to it. You know, I would say, obviously, public goods have to be protected. For one, in a more egalitarian society, at least a portion of these problems would be solved by just people having access to more or social safety net.
[30:00] It doesn't solve everything, but I think there is a degree to which in the United States, we invested more heavily in policing and prisons rather than the social welfare state. And that is a very typical leftist line, but the traditional leftist line would imply that the costs are equal, or if anything, policing and prisons are more expensive, when in fact, they are actually much cheaper than the amount of, you know, let's say if you're going to have a good prison system in a more progressive society, your staffing ratios would have to be completely different. You would have to, instead of training prison guards for a month or three weeks, you would have to train them for over a year and then put them in a probationary period. It's incredibly expensive to do these things. But I think that would resolve at least a portion of the problems. Other than that, it just is a matter of, yes, there is a role for policing. There is a role for enforcing standards of like decorum. like i i lean on the more conservative side of some of the these questions in terms of like i have a vision of what the good life is i think there are limits to a majoritarian vision of a good life and trampling on the rights of others who want to have a good time and want to smoke a joint or whatever else but i would lean towards to say banning any shop that is selling weed from oh first of all I would just stop there But let say from especially putting up a big sign outside their shop that says, you know, weed for sale. I have a different concern to antisocial behavior and drug use, which is interior decorating. And I actually mean this, I actually mean this kind of seriously, because I take the point that one of the reasons you buy a home is for security so your landlord can't force you out with rent increases. But another reason to buy a home is you get to make it your own. You don't have to live in a white box, you know, with plain walls. You can install a really cool kitchen if you're a cook. You can really customize it. You can improve it. And so the question when it comes to public provision of housing is, A, can I still do that? Can I customize it and make home improvements? And then B, if I make the apartment or the house a lot better. Who captures that upside? Does some of that value come back to me, or does it just fall into, I guess, the public pool of housing? Yeah, I think investments can and should be requested and approved. So there is an administrative level And this is someone has to approve my wallpaper There a difference between investments Let say today if you were to make an investment of your home like a wallpaper change you would be able to do that yourself You could do that in a rental I get you're being like, obviously, a little hyperbolic in that example. But a lot of these changes to your home you could do. But I think a good test would be, is it taxable or not? I'm not a homeowner, so I only vaguely know this. But if I were to, let's say, install a HVAC system in my home or a big boiler or something like that, I would not be taxed on at least the labor to install in a state like New York, right? It would be sales tax free. To me, that's like sort of a capital improvement. That's the thing that would probably have to be approved beyond like normal maintenance. That capital improvement, you should be reimbursed for reasonable capital improvement. Other changes that you're making that are more eccentric, I think that people should be allowed to make those changes. There's secure tenure. So there's probably going to be less turnover of homes unless people are moving or moving job markets. And in those cases, I think people should have to pay out of pocket. But there are, you know, I think functional examples. Singapore is a good one of places with really extensive public housing where this works in history And obviously this is the one part of the book that does lean into the more status end And it does lead into even some of the things I was saying before about rental changes being smoothed out and so on. Obviously, there are both distortions and layers of like bureaucracy that come up as a result of this, which leads to inefficiencies. But I think overall unleashing the power of the state to encourage construction. And that effect will grossly, grossly, grossly outweigh any of these inefficiencies. And the rest of the book is largely focused on, I think, a role for the state that doesn't necessarily play this sort of gatekeeping way. We'll be right back.
[35:00] See which Grails you could pull, then rip it open to reveal a real physical card. And the Grails are no joke. They have cards up to $125,000 in value and plenty to pull. From football and basketball to Pokemon, with new limited edition packs dropping regularly. Even cooler, you can decide to keep the card and Underdog will ship it straight to your home. Or sell it back instantly at 100% of its fair market value. And the cash goes right in your account. in the messages. Just rip, reveal, and cash out instantly. Or make some room on your shelf. Download Underdog and get in on the chase. Get five free rips packs when you deposit $5. Real rips, real cards, real cash. Only on Underdog. Unleash your dog. 18 plus terms apply. Top grails are extremely rare. Some people treat ChatGPT like some kind of smart search engine. and some use it to get work done. ChatGPT Work is a new way of working in ChatGPT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work. It's designed to help you move from a chaotic starting point to a reviewable first version. So all the source materials, briefs, and scattered information that you have to grind through to turn into something useful can just become something useful. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com by selecting Work Mode, available on Plus and Pro plans. As your wealth grows and your needs change, finding the right financial advisor can make all the difference. Edward Jones offers comprehensive wealth management to help give you a greater sense of confidence and control while you focus on living a life you love. Your Edward Jones advisor takes the time to truly get to know you and provide personalized strategies to help keep your goals on track. Whether you're passionate about charitable giving, considering business succession, or legacy planning with the next generation in mind. are custom built around what matters most to you. Because the key to being rich is knowing what counts. Edward Jones, member SIPC. The world of business is constantly evolving. Every day, new challenges, new opportunities, new ways of working. Comcast Business keeps you totally in step with secure AI-backed networking built to power the way modern business gets things done today in more than 100 countries around the world. That's some serious muscle. businesses behind it all network engineers cyber security specialists support teams thousands of experts answering your call at 2 a.m. like it's 2 p.m. always on always ready that's a lot of coffee one partner powering how business gets done for companies of every size all around the globe when you add it all up no one does business like comcast business Let's talk about another important service that the government already provides, and that's education. You probably read the big Nicole Hannah-Jones piece about her daughter going to school. I was very dismayed, I think, actually, by a lot of the discourse it spawned because I saw basically people taking one of two sides. People were like, oh, this is why school choice is important and people should not have to have their children stuck in a failing school, etc. basically saying like it's inegalitarian and counter left to sort of be so obsessed with like the success of your particular child? What's so special about the daughter of the New York Times journalist that they have to be, you know, better educated than their peers, etc. And I did not see many people respond, which is how I responded with like, let's just make every school excellent. Like, my son goes to an excellent public school. When I went to his curriculum night, I got saddened by the fact that this was not the default school kind of rare. And I'm curious why we don't hear more just like, let's just have all schools be great. And let's hold the schools to high standards for educating all children. The tricky thing is in a place like New York, the bad schools are better funded per pupil. So it's not a funding problem, but is a wider problem in society. If people are going to school and they're in unstable living conditions at home, if their parents are struggling with maintaining a job, if there's other issues in their wider community, if there's safety issues. And they feel unsafe walking from school. If in the name of egalitarianism, which I believe in, we have that kid trying
[40:00] traveling across town because we have some form of busing and equalization. All these things, I think, create factors of disparities that people want to resolve purely through public education, where I think, you know, the roots are obviously deeper and a more egalitarian society with an extensive social safety net, with employment guarantees and with a more equal distribution of income. I think a lot of these things would resolve themselves. But, you know, the problem my mind, the school choice end of it. I share the skepticism of education as the solution to inequality. Like I'm skeptical that there's some obvious link, but also I think like education is It's good to learn things. We're given this brand and it's like good to like exercise it. So, yeah, sure. Maybe we could have a society in which the schools you get into are less important for your ultimate economic outcome. But that doesn't necessarily satisfy me if one of my concerns is, no, people should expect that they could get a good education. Yeah. I mean, I think to begin with, we should say that public education in the U.S. is radically better than it was 100 years ago. better than it was for most of human history. We live in a society with universal literacy. We live in a society where we protect children and they're not in the labor market unless they're in, you know, voluntarily from age 15 to 18, but they're not in the labor market until they graduate from high school. And I kind of think that that if you solve the background issues and you have similarly well-invested schools, if you have societies in which the state has a bigger is able to maybe play a heavier hand dealing with special interests, like, let's say, a community group that says, we don't want our children to have to travel 30 minutes away for school, or this sort of local community pressures on education, or people in, you know, deep red districts that want particular tailored curriculum, they don't want a national curriculum, they want to do their I think you would solve part of that problem. And also, obviously, there's the overarching question of public sector employees and public sector employees now are. in a huge battle often when they make contracts because they feel like they're underpaid, which they often are. They feel like the thing that they get for being underpaid is security of tenure. And in a different sort of society where you have full employment guarantees, where you have broadly more abundance, you could probably tell teachers you're going to be paid a But 10% of you are going to be fired every year. And I think that resolved at least some of the questions that actually went unresolved. I think actually the correct right wing opposition to that piece centered around the questions of what are the teachers doing? Are they performing? And why do we have summer breaks that are this long instead of just breaks longer? And how much holidays? Oh, my God. Yeah. And also now it's like, you know, I actually I'm five years until my kid is ready to enter the public school system. launch a campaign against kids getting Diwali off. And you know what? It's a big problem. You and I make a trade here, which is that I'm Jewish. I will lobby for like, let's chill with the number of Jewish holidays that we take off and you campaign for getting rid of day off for Diwali. And then we can have this united thing where all of us agree that some of our holidays don't have to be days off. I think South Asians and Jews can definitely band together to value communalism. Great. Let's do it. This is terrible. No, we don't. No, no, no, no, no. There's so many holidays. It's crazy. And I think everyone should just voluntarily say, you know what, maybe I'll take my student out that day. But the entire school district does not have to shut down for all of our holidays. Moving swiftly on. People are going to love this part of the segment. I have a sort of backup big picture question, but you've mentioned a stronger social safety net a to a more egalitarian society? Why is it necessarily market socialism versus just your sort of classic higher taxes on the wealthy and more government spending and, you know, health care for all, better education, etc. So at least part of this is normative. I'm a socialist. I think that wage labor is a condition of exploitation. I think that it's an inequality that a good society should not have. I think the more practical reason why is that we've already seen plenty of societies that have gone down the road.
[45:00] of building bigger and bigger welfare states. These societies have often had to kind of stop at a certain point. They've had a lot of their gains eroded. And in part, this was because of the political power of capitalists who get to make the decision whether or not to invest or And when you have a condition of full employment like you did in, let's say, Sweden in the 1960s, you have... an economy that's actually functioning with, full employment. It doesn't have runaway inflation as a result of full employment. There's all sorts of tools, macroeconomic tools that the government is doing to keep that into check. But what you do have is workers who feel really comfortable and really secure, and they start demanding higher and higher wages and also more industrial democracy. So you're a Swedish capitalist who could say, yes, I have to deal with this really strong state and these powerful unions, but at least I have instead of my colleagues and friends with their strikes all the time, or in Britain, not nearly a social democratic as a country, but a country with a really deep militant workers movement, at least I have my stability, that capitalist can say, you know, I'm getting squeezed, I'm going to stop investing. And especially at contingent things like the OPEC shock and greater global globalization starting in the 70s and onward, but it actually turned out to be a system that was economically possible, but politically unstable. And as a result, The smart social democrats realized that they had to pursue a different road. I think there was a left-wing, more socialist resolution to this crisis that involved worker ownership. It was tried, like the Minder Plan and other attempts to move shares from capitalists to ordinary workers. welfare state, and we're also going to have to restore, you know, slightly higher unemployment and sort of other constraints on the ability of workers to bargain. So these are certainly better societies than we have now. But I think it is fundamentally a different sort of model. And especially for me, I believe that workers should not have just the power of exit and production. So what social democracy does is, unlike feudalism, we're not serfs, workers can reality in a country with a weak welfare state, or really just like a poorly structured welfare state, I should say, like the US, you're often tied to your employer in such a way that your power of exit is limited. Like maybe I could find a job with comparable salary, but I can't find the benefits or there'll be a disruption or whatever else. Your power of exit is weakened. But you also really have limited voice in the workplace as well. And in my view, there's all sorts of benefits that could come from giving people more voice as well. We're making a very soft claim that we think the system could be comparable to capitalist development. But when I think about these battles over, let's say, AI and labor-saving technology, A workplace filled with people who get residual profits, who get dividends, are less likely, these ordinary workers will be less likely to hide their knowledge from their employer. They'd be less likely to... resist the automation of elements of their work. I actually think there's huge advantages in an economy in which workers have more voice. But obviously, for me, even if there wasn't, I should say I would be in favor of that on egalitarian grounds. You have interesting politics because You're socialist. You also have some liberal tendencies in which you believe in the sort of premise of consumer choice, etc. You're also a conservative because you're sort of like, let's get rid of the weed shops and police are important. It's interesting. I don't usually read a lot of like French, European continental theorists, etc. structures and affects of political bodies. And I thought I loved it. I was surprised. But he argued that the solution to like, I like coffee and you like almond milk, or that basically like he said, like, We can't have like once we start with the the the premise of sort of like voluntary association, voluntary goods. We can see that the unit of society is the individual and that's liberal and that the solution to that is changing people that actually like the solution is modification. And if we like different things, then the answer is like we have to modify.
[50:00] by people so that they all like the same things. And that is the sort of key step on the path to, he's a communist, but that is the step. Why not just like embark on an effort to just make everyone the same or to aspire in a direction of this sort of what he, the word he uses, modification, such that the individual no longer has to be the unit of politics or society. Well, in part, I believe in a reconciliation of liberalism and socialism. I think actually most democratic socialists today have already made that reconciliation. That reconciliation is actually in the bones of its tradition. So by saying the state doesn't have the right to, let's say, direct your labor, why? Why doesn't it? If there's a utilitarian, and why doesn't the state have the right? Because it just doesn't, right? I think there's all sorts of ways in which we should And the question is, though, should the state be involved in the project of shaping behavior? Well, states are. And I think it's a good thing. Right. I think it makes sense that the state should create the very least friction and antisocial behavior. So I would love tomorrow if the state said, even if we're not going to ban sports betting, we at least are going to put a ban on sports betting apps, notifying you on your phone, even even that is, well, maybe I want to be notified if the line changes on the Giants game. There's an end. We're shaping behavior. We have a lot less smoking now than we did when, you know, when I was growing up. But it's coming back. Zoomers are smoking. Yeah. Yeah. Well, we need to create more friction. Right. And we also need to maybe tax other nicotine products. So that's a little bit less expensive. So if you are going to smoke. Wait, can I just I'm stuck on the school holiday thing for a second. This is the most controversial thing I said. Now you're going to. Yeah, no, but I think it relates to some of what we're discussing. So I'm assuming that both of you want to spend quality time with your children. And so your opposition to school holidays is it's a hassle for people who are working. You have to arrange child care. It's a friction that you have to deal with. In a socialist society, could we not just have more worker holidays that line up with school holidays? Wouldn't that be the solution rather than getting rid of the school holidays? Well, like anything, there's going to be a tradeoff, right? We have more worker holidays, then there's obviously less being produced. There's less surplus for society. So obviously, if society wants to make that tradeoff, be a little bit poorer, have a little more holidays, that's fine. Actually, I believe in those tradeoffs, I guess, to some extent. I do believe that a good society would have more leisure time. work 60 hour plus weeks. If there was a law really mandating that everyone really sticks to 35, I guess I would find things to do and I would enjoy it. Well, I think education is like a particular thing where, you know, our children need education. There's obviously been slippage in educational outcomes at the very least since the pandemic. I would actually argue that some of the better parts of No Child Left Behind have been abandoned and we've kept some of the annoying political argument but my vision is kids in school nine to five yeah high frequency of low stakes standardized testing i i don't even know how this is a socialist argument but that's just my vision and no Diwali off. You know, Diwali really starts in the evening anyway. Like it doesn't, it isn't like a, you know, Doesn't make sense. Like I said, I'll trade. I'll take one of mine off the board. I just have one last question. OK, DSA. I've never been to a DSA meeting. I don't know, really, like the left in this country is so broad and some of it to me seems less left and more like hyper liberal. criminalizing sex work. And there are many things that seem to fall under what people call the left in this country. And I don't really know like how many people who self-characterized as the left are sort of like class-based leftists per se. Like if I were to go to a DSA meeting, never been to one, I don't think they'd want me in there. How small or big is your contention? Where do you, how, you know, how much like with just fighting the intrafight of the left, how much do you have to grow yet in order for the Bosker view to be the view that, And what's the general perception of market socialism? I guess classical DSAs. I think market socialism is now the norm on the socialist left. But the question is, how much people say, oh, we need markets now, but maybe in the future, AI will solve calculation problems. And then my response is true. The Soviets didn't have the kind of pricing data that you could get nowadays, right? Yeah, I mean, I think it still doesn't make
[55:00] sense. I think AI can help form a better plan, but it wouldn't actually help you execute that plan. Then if something changes, you would then have to reform the plan. It kind of would be the worst of both worlds in many ways. But my normal response there is to point to incentive problems, and that normally wins the argument, though I am actually a pure believer. I'm on the von Mises-Hajak side of the calculation debate. And I also believe in the inherent good of the This is probably the largest... grouping of a very fragmented set of beliefs, but serious interrogation with the history of socialist economies, and also just thinking and laying out that we spent a lot of the book laying out the normative case and for a very radical form of egalitarianism, but kind of starting with the here's what we believe. actually helps lay the groundwork for making the technical argument. But, you know, Jacobin, for all its heterodox views, is the largest publication on the socialist left in generations since appeal to reason, since over 100 years. You know, I got to the socialist calculation debate. It reminds me of the early, I've been reading a lot about AI lately, because it seems pretty important. The early AI pioneers tried to embed intelligence in the form of an algorithm, and citizen teacher to a computer and it didn't work. It only worked after let's just collect a lot of data. And it was very different from the early AI pioneers. And my expectation is that as AI gets better and better, it will get better at predicting the results of experiments. So you don't have to run the experiment. And if you perceive capitalism as a series of entrepreneurs making hypotheses and then testing them with the firm, I actually, not only do I think it's possible, to essentially a form of communism by which we no longer need the firm as a hypothesis of what will work anyway the ai thing does not work because there's not like a data set to collect like people's wants and needs change constantly and also then it doesn't explain but if you believe in a super intelligent ai we are you know what i will revisit this in 10 years even even the like the most efficient way for the state to build like a railroad and like the correct allocation. But the reason why we have market-driven prices is obviously for the trade-off end of it. AI can create a static... like perfect plan yeah but i i think it would fail in execution but we will see we'll see oscar thank you so much for coming on outlast thanks for having me congrats on the book tracy i thought that was a really fun conversation i have to say my guess is like if the quote the United States or just represented by Bosker and Zoran, that would be an upgrade from many of the voices that you hear across the lab. It's still, as you said, a very interesting mix of politics. No weed shops, but public provision of housing. Consumer choice. You have to apply to the public bank to get your restaurant and then no weed shops. And less exploitation of workers, but fewer school holidays. Fewer school holidays and lots of options at the breadline. Lots of options at the bread aisle, not in a bread line. That $70 sourdough loaf that's on sale in New York. It might still exist. Well, the other thing, and we didn't get into it because the book purposefully doesn't get into it, is the transition, right? Oh, yeah. How do you go from an ultra-capitalist society to something that resembles market socialism? People own their houses right now. They own publicly traded stocks and things like that. And then what happens also, I think this is a really important point, is what happens when you transition to socialism and then four years later, the voters don't like it? Do you transition back to like that? So like part of like the question of like democracy as it's structured is like, all right, you know what? We're going to elect Bernie Sanders president and we're going to embark on this road to socialism. And then it's like four years later. It's like, OK, now we're going to elect Donald Trump, whatever. As a blueprint, it's like very interesting. It's very interesting to think about these things. Getting there, I guess that's always been the challenge, but getting there and then maintaining there so that actually like we have to like stick with it and follow through on it. That strikes me as difficult in a country that has elections every two years. Yeah, for sure. Shall we leave it there? Let's leave it there. This has been another episode of the Odd Lots podcast. I'm Tracy Allaway. You
[60:00] Weisenthal. You can follow me at The Stalwart. Follow our guest, Bhaskar Sankara at Sunray Sunray. Follow our producers, Carmen Rodriguez at Carmen Armand, Dashiell Bennett at Dashbot, Kale Brooks at Kale Brooks, and Kevin Lozano at Kevin Lloyd Lozano. And you can chat about all of these topics 24-7 in our Discord, discord.gg slash oddlots. And for even more Oddlots content, check out our daily newsletter, which you can find at bloomberg.com slash oddlots. And if you enjoyed this conversation, if you like it when we talk about the different flavors of socialism, then please leave us a positive review on your favorite podcast platform. And if you're watching on video and you enjoyed the show, then please like or leave a comment, or better yet, subscribe. And remember, if you're a Bloomberg subscriber, you can listen to all of our episodes absolutely ad-free. All you need to do is find the Bloomberg channel on Apple Podcasts and follow the instructions there. Thanks for joining. Thank you. Games on a break? Don't doom scroll. Try Rips on Underdog. Buy a digital pack, rip it open, and reveal a real physical card. Football, basketball, even Pokemon. Packs start at just $5. Ship it straight to your door or sell it back instantly at full market value. Max value up to $125,000. Download Underdog and get in on the chase. Deposit $5, get five free packs. Real Rips, extremely rare. Some people use ChatGPT to answer questions. Others use it to get real work done. With ChatGPT work, you bring the goal, plus real inputs like briefs, notes, files, feedback, data, and project plans. It can help turn them into an analysis, tracker, deck outline, prototype, or workflow you can review and keep shaping. You stay in control, giving direction and choosing the final output. Put ChatGPT to work on your most ambitious ideas and projects. on Plus and Pro plans. At UCI Health, their mission is simple, to improve the lives of people in the community and beyond. As Orange County's only academic health system, they deliver leading-edge discoveries, train future healers, and provide the highest quality care for you and your family. Now, you can tap into that expertise anytime with the Live Well podcast series, featuring UCI Health experts on wellness, prevention, mental health, nutrition, and everyday ways to improve the lives of people. to just live healthier. Download and stream Live Well by UCI Health wherever you listen to podcasts.