I had the privilege of joining the set of anchors (Julie Cchatterley, ScarletFu, and Joe Weisenthal on the set of “What’d You Miss” today. The unrehearsed discussion took an unexpected turn when Joe asked about the low volatility.
The anchors were patient and gave me time to provide a sketch of the thesis of my book, Political Economy of Tomorrow, where I suggest a under appreciated factor in the low price of capital is its excess supply. I draw on the ideas of an employee at Brown Brothers, Charles Conant, who writing at start of the 20th century, argued that the main challenge of capital is not its weaknesses, which reformers of various persuasions go about with great enthusiasm to address. Rather, Conant argued the main problem grew out of the success of the market economy. It could not absorb the wealth it created. There was too much capital so the return on it fell.
