Greenspan: ‘Something in the American Culture’ Enables Us to ‘Reemerge’ as the ‘Most Innovative Country’

RUSH TRANSCRIPT BRZEZINSKI Joining ░░░░░░░░ now former chairman of ░░░░░░░░ Federal Reserve Alan Greenspan ░░░░░░░░ historian and politics editor ░░░░░░░░ The Economist Adrian Wooldridge ░░░░░░░░ are co authors of ░░░░░░░░ new book entitled Capitalism ░░░░░░░░ America A History It ░░░░░░░░ really good to have ░░░░░░░░ both on SCARBOROUGH It ░░░░░░░░ great to have you ░░░░░░░░ You know Mika because ░░░░░░░░ m a capitalist I ░░░░░░░░ an advance copy I ░░░░░░░░ it I didn t ░░░░░░░░ a dime for it ░░░░░░░░ read it and saved ░░░░░░░░ some money Everybody else ░░░░░░░░ to buy it So ░░░░░░░░ Chairman it seems the ░░░░░░░░ at the center of ░░░░░░░░ is creative destruction and ░░░░░░░░ give and take the ░░░░░░░░ from the innovation from ░░░░░░░░ creativity that s brought ░░░░░░░░ that fuels the economy ░░░░░░░░ the chaos that it ░░░░░░░░ the disruption that it ░░░░░░░░ and finding that perfect ░░░░░░░░ GREENSPAN Well remember that ░░░░░░░░ exactly the way a ░░░░░░░░ mark works And what ░░░░░░░░ d expect to see ░░░░░░░░ as decades go on ░░░░░░░░ generations go on the ░░░░░░░░ by which we produce ░░░░░░░░ services get more and ░░░░░░░░ sophisticated And in a ░░░░░░░░ the microcosm of that ░░░░░░░░ for example when some ░░░░░░░░ puts on a wholly ░░░░░░░░ facility of how they ░░░░░░░░ produced Their sales are ░░░░░░░░ same but their unit ░░░░░░░░ are very much less ░░░░░░░░ American productivity and hence ░░░░░░░░ growth is driven by ░░░░░░░░ phenomenon of reducing costs ░░░░░░░░ mean increasing efficiency And ░░░░░░░░ is the history that ░░░░░░░░ throughout the whole book ░░░░░░░░ are couple other things ░░░░░░░░ are very relevant politically ░░░░░░░░ that there is something ░░░░░░░░ the American culture which ░░░░░░░░ not evident anywhere else ░░░░░░░░ the world and it ░░░░░░░░ us after being in ░░░░░░░░ shape 20 30 40 ░░░░░░░░ ago to all of ░░░░░░░░ sudden reemerging as the ░░░░░░░░ innovative country in the ░░░░░░░░ SCARBOROUGH So it s ░░░░░░░░ it s very good ░░░░░░░░ to read this book ░░░░░░░░ it s just like ░░░░░░░░ where we think this ░░░░░░░░ the worst it s ░░░░░░░░ been We re facing ░░░░░░░░ challenges we ve ever ░░░░░░░░ before You learn that ░░░░░░░░ things old are new ░░░░░░░░ Same here We re ░░░░░░░░ worried about the disruption ░░░░░░░░ Silicon Valley But you ░░░░░░░░ write about the disruption ░░░░░░░░ was caused when suddenly ░░░░░░░░ became much cheaper and ░░░░░░░░ to produce steel WOOLDRIDGE ░░░░░░░░ of the things that ░░░░░░░░ in the late 19th ░░░░░░░░ is American steel is ░░░░░░░░ much much cheaper It ░░░░░░░░ becoming the world s ░░░░░░░░ and best steel That ░░░░░░░░ a marvelous thing for ░░░░░░░░ economy as a whole ░░░░░░░░ s not in you ░░░░░░░░ Andrew Carnegie So lots ░░░░░░░░ people are given I ░░░░░░░░ out of business This ░░░░░░░░ rise to a populous ░░░░░░░░ Which is anger turbulence ░░░░░░░░ so you are always ░░░░░░░░ the dynamic on the ░░░░░░░░ hand progress innovation On ░░░░░░░░ other hand parallel resistance ░░░░░░░░ you say striking the ░░░░░░░░ creative balance between the ░░░░░░░░ is absolutely since of ░░░░░░░░ good politics is about ░░░░░░░░ It looks at the ░░░░░░░░ It also looks ahead ░░░░░░░░ cites some warning signs ░░░░░░░░ Absolutely BRZEZINSKI Name of ░░░░░░░░ of those WOOLDRIDGE We ░░░░░░░░ America s greatest triumphs ░░░░░░░░ reason America has become ░░░░░░░░ powerful economy it s ░░░░░░░░ tolerant of creative destruction ░░░░░░░░ that s always powered ░░░░░░░░ capacity to reinvent things ░░░░░░░░ create itself That tolerance ░░░░░░░░ creative destruction is declining ░░░░░░░░ in many ways is ░░░░░░░░ normal country BRZEZINSKI What ░░░░░░░░ those signs WOOLDRIDGE Company ░░░░░░░░ It s becoming Harold ░░░░░░░░ create companies the golden ░░░░░░░░ bridge was built if ░░░░░░░░ years Now if you ░░░░░░░░ to get a permit ░░░░░░░░ apply that will take ░░░░░░░░ years again that s ░░░░░░░░ a problem Soes ability ░░░░░░░░ low Americans have low ░░░░░░░░ ability Historically this was ░░░░░░░░ country built by pioneers ░░░░░░░░ tend to stay put ░░░░░░░░ All sorts of ways ░░░░░░░░ is looking more like ░░░░░░░░ more like a settled ░░░░░░░░ society and less like ░░░░░░░░ dynamics creative Rick taking ░░░░░░░░ that it used to ░░░░░░░░ SCARBOROUGH Following up on ░░░░░░░░ mobile being slowed down ░░░░░░░░ remember you said at ░░░░░░░░ point after the 2008 ░░░░░░░░ that one of the ░░░░░░░░ threats to American capitalism ░░░░░░░░ income disparity that we ░░░░░░░░ to again we go ░░░░░░░░ to that word balance ░░░░░░░░ have to remain who ░░░░░░░░ are celebrate free markets ░░░░░░░░ capitalism At the same ░░░░░░░░ we have to look ░░░░░░░░ the separation between the ░░░░░░░░ Americans and the poorest ░░░░░░░░ It s called a ░░░░░░░░ It s remarkable how ░░░░░░░░ and image native that ░░░░░░░░ was 1788 1787 It ░░░░░░░░ seriously changed the number ░░░░░░░░ amendments variations and interpretation ░░░░░░░░ been remarkably similar but ░░░░░░░░ enabled us to go ░░░░░░░░ changing conditions and so ░░░░░░░░ the beginning of this ░░░░░░░░ was started back in ░░░░░░░░ and it is essentially ░░░░░░░░ the path which the ░░░░░░░░ fathers conceived of going ░░░░░░░░ and down and everyone ░░░░░░░░ wrong direction we came ░░░░░░░░ DEL PERCIO So you ░░░░░░░░ that we re losing ░░░░░░░░ little bit of our ░░░░░░░░ One thing that also ░░░░░░░░ to be festering is ░░░░░░░░ idea that socialism is ░░░░░░░░ alternative to capitalism We ░░░░░░░░ heard it a lot ░░░░░░░░ the last 12 months ░░░░░░░░ does that say about ░░░░░░░░ values and where we ░░░░░░░░ be going forward If ░░░░░░░░ decent amount of our ░░░░░░░░ believes that socialism is ░░░░░░░░ answer WOOLDRIDGE I think ░░░░░░░░ means a lot of ░░░░░░░░ are making a fundamental ░░░░░░░░ If you look at ░░░░░░░░ experience of socialism and ░░░░░░░░ in the 1970s it ░░░░░░░░ t lead to growth ░░░░░░░░ leads to stagnation People ░░░░░░░░ making a mistake for ░░░░░░░░ reason They don t ░░░░░░░░ the opportunities you used ░░░░░░░░ see in this country ░░░░░░░░ don t see the ░░░░░░░░ stable middle class you ░░░░░░░░ in this country Now ░░░░░░░░ solution is not socialism ░░░░░░░░ s a more dynamic ░░░░░░░░ commitment but it s ░░░░░░░░ to see these two ░░░░░░░░ We have too much ░░░░░░░░ seeding stagnation Capitalism isn ░░░░░░░░ the solution is more ░░░░░░░░ It s not socialism ░░░░░░░░ s a hard case ░░░░░░░░ make to younger people ░░░░░░░░ days BRZEZINSKI The new ░░░░░░░░ entitled Capitalism in America ░░░░░░░░ history Alan greensp Adrian ░░░░░░░░ thank you.”