My excellent Conversation with Luis Garicano
Here is the audio, video, and transcript. Here is part of the episode summary: Tyler and Luis start their conversation with Spain — housing, NIMBYism, and the productivity crisis; Spanish literature and why the Civil War still looms so large; and what Chicago taught Luis about party discipline in European politics. Then to the EU’s […] The post My excellent Conversation with Luis Garicano…
In a recent conversation, Tyler Cowen and Luis Garicano discussed various topics, starting with Spain's housing market, NIMBYism, and productivity crisis. Garicano explained that Spain has been experiencing a productivity crisis despite having extensive growth, immigration, and tourism. The main reason for this is the political economy, where the focus is on pensioners rather than investment in productive assets.
Spain has been governed by and for the older retired population, which has led to a lack of investment in growth-inducing infrastructure.
Garicano then shifted the conversation towards what an optimistic scenario for Spain could look like. He highlighted the country's magnificent fundamentals, such as its vast potential for renewable energy due to solar, wind, and nuclear power, and its diverse geography and climate. By investing in these areas, Spain could potentially become a hub for technology, attracting talent and energy, similar to cities like Florida and Austin, Texas.
The conversation then moved on to Messy Jobs, Garicano's new book. He argued that AI will not lead to mass unemployment but rather make jobs "messier" as AI cannot handle complex, relational, and knowledge-intensive tasks. Garicano suggested that people should be prepared for these changes, as they will have to adapt to new types of work that require human interaction and problem-solving skills.
He also addressed concerns about retraining, stating that it would be necessary but could be managed effectively with the proper support and resources.
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