The American Compass Podcast

For decades, economists, armed with elegant models, powerful data, and firm conclusions about how markets should work, have claimed to be practitioners of a hard science. Yet in an era of financialization, political backlash, and rising skepticism of any “expert” consensus, many Americans are wondering whether the profession has grown too insular, too ideological, or simply too detached from reality.

Luigi Zingales, professor at the University of Chicago’s Booth School of Business and director of the Stigler Center, joins Oren Cass to discuss what’s gone wrong. They explore the hierarchy of and conformity within the field, the temptation to defend models because of the conclusions they produce, and the gap between theoretical assumptions and real-world outcomes. The conversation closes with a look at whether a younger generation of economists is prepared to rethink the orthodoxy, and what it would take for economics to regain both its rigor and its relevance.

Capitalism has undergone a profound shift, as our financial system has moved away from its primary role of channeling capital into productive investments. Corporate priorities have instead turned toward maximizing short-term shareholder returns and deploying complex financial engineering that boosts firms’ bottom lines. In the process, American communities and long-term economic growth have paid the price.

Oren joins guest host Chris Griswold to discuss how this process of financialization is distorting the American economy and undermining capitalism itself. He explains how practices like leveraged buyouts, stock buybacks, and speculative financial activity have reshaped corporate incentives, why critics often conflate profit with value creation, and how these trends affect Americans and their communities.

Further Reading:
“The Finance Industry Is a Grift. Let’s Start Treating It That Way” by Oren Cass, New York Times.
“Actually, the U.S. Financial Sector Is Good for the Economy“ by Judge Glock, City Journal.
“‘The Finance Industry Is a Grift,’ Oren Cass Claims in the New York Times. Look Who’s Talking” by Ira Stoll, Washington Free Beacon.
“The Oren Cass Case for Central Planning Does Not Indict Wall Street for Anything” by Capital Record with David Bahnsen.

America’s housing shortage is often framed as a simple supply problem, but building the kinds of homes families actually need has proven far more complicated. While capital continues to flow into large suburban developments and luxury apartment buildings, the market has stopped producing the modest, family-friendly housing that once anchored stable communities and enabled young families to remain in thriving cities.

Bobby Fijan, co-founder of the American Housing Corporation, joins Oren to discuss why the “starter home” has largely disappeared and how development incentives, zoning rules, and capital markets have reshaped what gets built. They explore why current housing designs increasingly favor singles and roommates over families, how housing supply shapes family formation, urban vitality, and economic mobility, and how prefab manufacturing and vertically integrated construction start-ups like the American Housing Corporation could help deliver row homes in established neighborhoods and begin to change the culture.

America’s welfare programs have long operated on the assumption that states and nonprofits could responsibly steward federal dollars with minimal oversight. But a series of explosive fraud cases—from California to Mississippi to Minnesota—have exposed just how broken that system has become, with lax oversight and minimal accountability leading to billions of dollars stolen from taxpayers.
Shad White, Mississippi’s state auditor and author of Mississippi Swindle, joins Oren to explain how his office uncovered one of the largest welfare scandals in modern history and what it reveals about America’s safety net. They discuss why grant-based welfare programs are uniquely vulnerable to abuse, how federalism often undermines accountability, and how practical reforms like stronger enforcement, clearer metrics, and simpler program design can restore public trust while helping the families who need support most.

The annual gathering of the world’s leadership class at the World Economic Forum in Davos bills itself as high-minded forum for increased global cooperation in the now-struggling old international order. But, in practice, it’s more of a concentrated mass of industry titans flexing with their various status badges, “bilaterals,” and AI slogans all while anxiously refreshing their phones for the latest updates on the Trump administration’s next moves.
Filming from his hotel room in the Alps, Oren, our intrepid correspondent in Davos, joins Drew to report what he heard and saw from these often panic-stricken elites. They discuss how the Davos crowd is really reacting to Trump’s approach to alliances and American leadership, why episodes like Greenland trigger outsized panic among our allies, and where legitimate concerns about trust and cooperation get lost in elite groupthink.
Further Reading:
“A Sharp Break over a Piece of Ice,” Oren Cass, Commonplace.