Krishna Kumar

A Conversation with Edmund Phelps, Moderated by Peter Passell

Edmund Phelps, Peter Passell, Krishna Kumar

Co-hosted by RAND and the Milken Institute, this event featured Nobel Laureate Edmund Phelps arguing that a shift from individualism to corporatism since the 1930s has stifled indigenous innovation and halved US productivity growth rates. Phelps highlighted that while established corporations currently leverage regulatory protections to block startups, China is matching historical US innovation rates through technological diffusion and grassroots experimentation. He concluded that reversing the stagnation requires a fundamental cultural shift that prioritizes individual creativity and risk-taking over traditional conformism, as standard economic policies alone cannot restore economic dynamism.