Bloomberg Businessweek Weekend: August 21st, 2026

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1:38Carol Massar:Explore more at 4imprint.com. 4imprint. 4certain. Bloomberg Audio Studios. Podcasts. Radio. News. This is Bloomberg Business Week Daily, reporting from the magazine that helps global leaders stay ahead. With insight on the people, companies and trends shaping today's complex economy. Plus, global business, finance and tech news as it happens. Bloomberg Business Week Daily with Carol Masser and Tim Stenevek on Bloomberg Radio. Hi, everyone. Welcome to the weekend edition of Bloomberg Business Week. Tim is off. Well, this week, traders took stock after U.S. Treasury Secretary Scott Besant announced a surprise increase in long-term bond buybacks to stem a rise in yields that had taken them to a near two-decade high.

2:30Carol Massar:Analysts have warned the plan may be a short-term fix, given concerns about large fiscal deficits and oil-driven inflation. Also a concern, U.S. government debt. We got an update on that this week, coming in at$40 trillion. We also got retail earnings, continued uncertainty over the U.S. war in Iran, a softening trade stance between the U.S. and Canada, and the latest FOMC minutes showing some hawkish sentiment that could re-energize bets for a rate hike come September. All ahead of remarks this coming week from Fed Chairman Kevin Warsh at the annual Jackson Hole Symposium. His lack of guidance on when or whether the central bank will adjust rates has added to uncertainty over the policy outlook.

3:14Carol Massar:As always, the latest on all of this and more can be found on the Bloomberg Terminal and at Bloomberg.com. Now, one of the things we love to do is give a topic, an individual, a leader, a market watcher, an extended amount of time to talk with us. We learn more. We hope you do as well. So last week, we did this on the U.S.'s latest push to secure rare earths and critical minerals. This week, we feature one of the most influential and frequently cited economists in the world. We are talking about Nobel laureate and MIT professor Daron Asamoglu. Our conversation coincided with his new book, What Happened to Liberal Democracy?

3:52Carol Massar:Remaking a Politics of Shared Prosperity. He joins us in just a moment. That chat is chock full of topics for weekend discussions. And since it is the weekend, and because we believe in mixing thoughtful discussions with some fun, And we are going to wrap up with the founder of HSP Brands on how Gen Z is impacting the cocktail hour. All right, let's get to it. And let's begin with one important question. What happened to liberal democracy? That is what Nobel laureate economist and MIT professor Daron Asamoglu explores in his latest book, aptly named What Happened to Liberal Democracy? Remaking a Politics of Shared Prosperity.

4:30Carol Massar:He argues that liberalism is dying primarily of self-inflicted wounds. His solution, what he calls working class liberalism. He began talking with Tim and me about the initial success of the idea. I think liberal democracy is one of the greatest achievements we've had. From our ape beginnings and lives in very unequal circumstances, in very uncertain existence, mired by violence. Today, we live in very complex societies, open to ideas with lots of individual freedom. People participate in politics peacefully, reach compromise, sometimes consensus. And moreover, we get lots of things from the government, including our ability to express our voice.

5:17That is an amazing achievement. And we are, I think, at the cusp of losing it. Liberal democracy, which still, in my mind, is the best framework, definitely something we very much need for the future, is in crisis after decades and decades of actually serving us quite well. So we have to understand that crisis and we have to rebuild liberal democracy unless we want to risk losing it.

5:43Carol Massar:We're going to talk about how you think we can rebuild it, but I want to just get some parameters set here and do some definitions, Because early on in your book, you talk about the definition of liberalism and how it means different things to different people depending on where you live. The European view versus the American view. Just straighten that out for us right now before we dive into this conversation. Yeah, thanks, Tim. And that's very important. Liberalism has had many meanings over the ages. And today it's a big tent. but at the core of it is a commitment to protect individual liberties, also protect the weaker members of society, and also a commitment to progress from which we all benefit.

6:24Those are the defining features of liberal ideas, and they have acted as a rallying cry for people to build a better society. The way that I define it, liberal democracy, is the institutionalization of these ideas. It's carrying them to the actual practice of our lives. And it's been brilliantly successful in the grand scheme of things. We've had decades of very rapid growth under liberal democracy for about four decades following World War II. Those were not just high growth periods, but they were periods in which inequality was remaining stable or sometimes even declining. every demographic group, men, women, bi-race, different education groups, they saw their earnings grow very rapidly.

7:19And, you know, always political disagreements were very important, but generally peacefully. Today, if you look at the picture, it's very different. Shared prosperity doesn't work anymore. Inequality has increased a lot. But worse, in the United States, we've seen about half of the population without a college degree experienced stagnant or declining wages for about four decades while productivity increased, while people with college degrees, postgraduate degrees improved their living standards significantly. And when you ask Americans, they have such negative views of democratic institutions, their trust in Congress, in the Supreme Court, in the presidencies at an all-time low.

8:03the country's polarized and very concerningly all americans but especially the young are much less willing to say that democracy is the best form of government and they're willing to

8:17Carol Massar:experiment with different ideas don't we destined to come here i think people point fingers at a particular president or political figure but we were we destined to be here i I wouldn't say we're destined to be here, but I would also not blame it on a particular president or particular set of choices that are U.S. specific. Because you see very similar trends across many advanced nations and even in the emerging world. So there are some commonalities there. So that's very important to get the diagnosis right so that we know how to deal with it. You actually make the point early on, I mean, this is the way your book begins.

8:59Carol Massar:And Carol and I were both struck by this because we hear a lot about Viktor Orban now and the figure that he is in Hungary. But you make the point that, look, this is somebody who in the late 80s, early 90s was a very different leader and represented something very different, not just for that country, but for Europe. Absolutely. Absolutely. And I think it is sort of telling of the arc of liberalism that he was the poster child for, you know, liberty, for building democratic institutions. And then he turned his back on all of these ideas. You know, the exact circumstances in Hungary, of course, are different.

9:40Post-transition societies had a lot of trouble. Many of them navigated them better than Hungary. But I think the issues that we see in the United States have commonalities with Hungary, but they have a lot of commonalities with what's going on in the UK, in France, in Germany, in the rest of Europe.

9:57Carol Massar:Is there anywhere where this is not happening right now that you would hold up in 2026 as an ideal liberal democracy? Ideal, absolutely not. And I don't think, if you ask me, what is an ideal liberal democracy going back? No, there isn't. Liberalism is always an aspiring ideology. And liberal democracy is always a work in progress. But today, you see different degrees of crisis. And one place where I would say the crisis is also showing up in some ways, but in a less severe form, is Switzerland. And one of the things about Switzerland is that it's much more participatory. And you also see even today in this polarized world that we live in, where people shout at each other, social media has really created a very toxic ecosystem of exchange.

10:46You have recently experienced an amazing achievement in Ireland in the context of the decision on the referendum, which was based on citizens' assemblies, building consensus, changing people's minds, debating it for a long time, and then putting it to vote for the people. where people actually said, this is what we want in two different referendums. So there are ways in which we can make this work even today, but there is a challenge.

11:14Carol Massar:There are challenges. And Tim and I both listened to some different podcasters. One you did with, I think, James Sanger of Harvard that was really, I said, what was wonderful is it was a dialogue, which is so refreshing. The sense of community, though, how important that is. And, you know, I think it might have been with Mr. Sanger, this concept of people or maybe living different worlds, completely separate worlds. Absolutely. And that's a problem. It's a big problem. But let's go back to community because thank you for bringing that up, Carol. Community was quite important for liberal aspirations going back several hundred years.

11:56And when you look at early liberal democracy, communities played a very important role. One of the very bedrock ideas of liberal democracy is that there should be self-government. People, it's not just that you should be free to have thoughts, that you should also be free to put them into practice. That means that to have some control over your life. And it's not enough or it's not even meaningful to say, oh, you can achieve that by going to the polls once every four years or five years and have a vote. No, that starts with local associations, what the Tocqueville saw in the United States more than 200 years, 150 years ago.

12:34And he thought that was just so remarkable. It starts with local governments where people participate. It starts with other organizations like labor unions that were a very important way for many working people to participate in self-government. And all of these, you see, they start at the community level. But there's one thing, something else, and then you actually put your finger on that, Carol, which is that when we have a debate, I think the best way of ensuring that we're not just talking past each other or we're not shouting at each other is that we have some shared values, shared moral understanding, shared principles.

13:13And that, again, comes from communities and then emanates from communities to the national level. So all of these are very important. But liberal democracy over the last several decades has also turned its back on communities. Communities have become more segregated. There has been a deeper division in the United States between, say, not just Republican and Democrat, but between more educated and less educated segments. Their values have diverged. Their networks have diverged. And everything that was a bit of like a melting pot is no longer. One very important one that we actually often overlook is where people work.

13:51The sort of, of course, I'm exaggerating, but the typical firm of the industrial age was like a manufacturing plant where you had managers, you had consultants, you had engineers, You had white-collar workers, blue-collar workers, custodial workers. So it was a real melting pot. Today, the image that you might have in your mind is Google on the one hand and McDonald's on the other. And it's a complete divide in terms of not just income, education and background and who works there. And so we're not getting that melting that will bring those shared principles together on which we can then build something better.

14:30Carol Massar:That was Daron Asimoglu, Economic Nobel Laureate and Institute Professor in the Department of Economics at MIT. Coming up, we'll have more with him, including how the digital technology revolution unleashed a huge increase in inequality. You're listening to Bloomberg Businessweek. This is Bloomberg.

14:54Carol Massar:This is the Bloomberg Tech Minute brought to you by ChatGPT. Now with ChatGPT Work. I'm Carol Masser. Walmart has become a major player in the burgeoning business of quickly fueling electric vehicles, speeding past Costco as well as more established charging companies. Bloomberg's Kyle Stock writes, as of June, Walmart has opened about 46 high-speed public charging stations with 380 cords. There are now EV chargers at about 326 of its U.S. stores, including adding this year four high-speed charging stations in Bentonville, Arkansas, even though the state has been a laggard in transitioning to electric vehicles.

15:34Carol Massar:Walmart has hosted chargers from other companies since 2018. The big difference now? Walmart is building its own network, and quickly. As of March of last year, every EV station at a Walmart is under the company brand. Now, Walmart is still a blip on the U.S. charging map, And yet, it was second only to Tesla among charging networks expanding in the second quarter. That's the Bloomberg Tech Minute brought to you by ChatGPT. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com today by selecting Work Mode, available on Plus and Pro plans. It's time to plan ahead and make sure your brand is showing up in ways that can have an impact.

16:19Carol Massar:That's where 4imprint comes in. 4imprint have promotional products that work as hard as you do. Durable, useful, and designed to make a lasting impression. Think quality apparel your team will wear again and again, including popular and exclusive brands. Drinkware that's enjoyed again and again. Bags, notebooks, tools, and tech items that don't just look good, but actually get used. With thousands of customizable options, 4imprint makes it easy to find what fits your brand and your budget. You'll get expert help, free samples, and their 360-degree guarantee means you can be 4imprint certain your order shows up just right, right on time.

16:56Carol Massar:Whether you're gearing up for fall events or simply planning ahead for the season, 4imprint can help your brand show up, stay useful, and make connections that last. Explore the possibilities at 4imprint.com. 4imprint. 4certain. Let's talk about healthcare for a second. It doesn't always work the way people expect it to. If you've ever waited on a prescription refill or had a hard time getting the care you needed, you know the feeling. The system should just work better for everyone. That's exactly what the people at Optum are trying to do every day. They're a health care company linking patient care and pharmacy services and using data and technology to drive the whole system so care is connected, not complicated, for patients and providers.

17:37Carol Massar:Things like making it easier to get care that looks at the whole person, from primary care doctors to mental health support and even in-home care, and then using technology to make sure they all work together. Technology designed to help doctors spend less time on busy work and more time with their patients. And those prescriptions? Optum is working to bring costs down, save patients money, and make it easier to get refills. Little by little, Optum is helping make healthcare work as one for everyone. Head to business.optum.com to see how. This is Bloomberg Business Week Daily with Carol Nasser and Tim Stenevek on Bloomberg Radio.

18:17Carol Massar:We continue speaking with the author of What Happened to Liberal Democracy? Remaking a Politics of Shared Prosperity. It is written by Daron Asimoglu. He is Economic Sciences Nobel Laureate and Institute Professor in the Department of Economics at MIT. This is actually a perfect question for a segue that we wanted to get to and has to do with technology and your view of technology. Could digital connectivity allow a more direct democracy? Would moving slightly away from representative democracy and to direct democracy help alleviate concerns from those who are losing faith? So two different questions there.

18:52Carol Massar:I wanted to start with the technology one because you have some really interesting views about technology's role in actually moving us away from liberal democracy. What do you think? Well, I mean, let me just say that technology plays a central role in the book in several parts, but centrally in understanding how we transition from an industrial economy to a post-industrial economy. So the Google McDonald's is just a symptom of something much broader about how the economy is organized. And that was a technological transition. Partly globalization played a role as well. But second, algorithms are so much more important today.

19:28They, in some domains, actually rule our lives. So we have to come to grips with the information ecosystem, communication ecosystem created by algorithms. Now, in both how digital technologies influence shared prosperity and how algorithms influence our communication, I don't think there is anything predetermined. Technology doesn't come with a pre-programmed thing that says, I'm going to create inequality. I'm going to destroy communication. It's how we use technology, how we define technology, how we develop it. And on social media, I think it's very telling to go back to how people were viewing it in the late 1990s, early 2000s.

20:13Everybody thought, I mean, almost everybody thought that this was going to democratize communication.

20:19Carol Massar:The Arab Spring. The Arab Spring was Facebook and Twitter in some places. remarkable. The new wikis were going to make information available. And you know, those hopes, okay, they turned out to be not right. We can agree on that. But they weren't completely naive. The reason why they weren't naive is because technology had that capability. We could have built new communities for reliable information, to create new compromises, to find new bridging ways in which we can bring ourselves together. But it turned out that the key decisions that many companies made were not about that. MySpace, for example, one of the first social media sites, is a bit closer to that because it brought communities together.

21:02Carol Massar:Shout out to Tom at MySpace. Okay, fantastic. Yes. But algorithmic feeds that essentially amplified the most incendiary material, the one that gets views because it's extreme, that angers the other side and motivates your side to become even more vocal. Those are the kinds of things that rise up in the algorithmic feed. And on another part, they are the things that create envy and undergird mental health problems. But all of them, you know what they also do? They take their attention towards social media communication. And as a result, Americans interact much less physically with other people.

21:40They have fewer friends, fewer close friends. They spend much less time going to bars, coffee shops. Nobody calls anybody anymore. Nobody calls anybody anymore. That's pretty amazing. And that is very important because the social networks that we form are messy. Yeah. They teach us to make compromises, and they give us a lot of rich contextual information about our lives.

22:01Carol Massar:Do you blame the tech CEOs who run those companies? Oh, we might as well. Why not? Well, because it is an interesting time where you are seeing lawsuits against social media companies, meta platforms. We keep referencing this in their latest earnings. I think it was$2 billion for certain lawsuits. And they said it was a material impact on the company. And it's just the beginning of lawsuits from our reporting team. But I do wonder, what is their responsibility? And this goes to, you get into this too, like the people who run these firms and they're very wealthy. and very influential. And I don't think I'm speaking out of turn.

22:39Carol Massar:And we talk about having a seat at the table, the political table. We don't. It's people with their deeper pockets. Well, you are very influential, Carol and Tim. Thank you. We do have microphones. Actually, you are very influential. But anyway, so, but like all of this. Of course, we all have responsibility. We all have responsibility. If democracy is in crisis, we are all responsible because democracy requires active, vigilant, participating citizens. Why aren't people more active? I think we took some of these things for granted. Okay. We've gone down the path of sort of easy sort of life, and some of what democratic citizenship requires is messy.

23:28Some of the things that we should do in our communities are costly. For example, giving blood. You get very little benefit from that other than the pride that you're contributing to something. And people used to do that much more, and they do that much less. That's just a symbolic thing that shows that if you don't create the right narrative, the right sort of way of drawing on our responsibilities, people are going to start withdrawing a little bit and then a little bit more and then a little bit more. And then the result is we're not participating in communities and we're not participating to defend democracy.

24:02Carol Massar:But I can't help but think of the changing view that Americans have about democracy in recent years. And I think back to the Democratic National Convention in 2024 and the core message from Democrats. And it was I'll never forget this. I was watching this on TV. I watched the Republican one as well. but they played this video that was basically a highlight reel of January 6th. And it was, you know, Carol and I were on air covering January 6th. When it happened, we were speaking to our colleagues who were at the Capitol who, who were, you know, felt under attack. And I remember watching that and thinking, wow, you know, there's no way that Trump is going to win this election because Americans are being reminded of this, right?