In his latest book, Nobel-winning economist Daron Acemoglu diagnoses a crisis in liberal democracy, blaming elites for failing to meet the needs of the masses. He argues that the abandonment of the working class by liberalism's progressive wing has led to widespread discontent.
The Critique of Elites
Acemoglu contends that both left-liberals and self-styled classical liberals like Peter Thiel share a common foundation in individual rights and constraints on power. However, he asserts that by the mid-20th century, democracy had proven its worth with shared prosperity, but now that consensus has fractured.
He points to the shift in post-industrial societies where the left moved from economic class to identity politics, a diagnosis echoed by figures like Bernie Sanders. Yet Acemoglu himself uses culture-war rhetoric, accusing the left of obsession with social engineering and thought policing.
Proposed Solutions
His solution is a "working-class liberal democracy" contract focusing on improving living standards for the least educated. This includes reducing regulatory hurdles, encouraging community decision-making like citizens' assemblies, and holding social media companies accountable as publishers.
He also suggests legislating for "worker AI" to empower employees with expert systems, though he doesn't mention consulting doctors on this idea. Acemoglu writes smoothly and offers brilliant insights, such as explaining why the US tax code incentivizes automation and how Nordic happiness followed deliberate reforms.
Internal Contradictions
Despite his strengths, Acemoglu's rhetoric leads to inconsistencies. He denounces progressive elites in the same manner as populists, yet concedes liberalism was invented by a learned group of philosophers. His own book, written by a Nobel laureate, is itself an example of the elite debates he criticizes.
Ultimately, the book offers a fascinating analysis but struggles to reconcile its own contradictions. It remains a thought-provoking read for those interested in the future of democracy.
