In Praise of Abundance (Ezra Klein, Derek Thompson — Avid Reader, 2025)
Abundance is a timely and insightful book offering a fresh perspective on the developments that led to the Trump revolution while presenting a vision for the future. Its outlook on economics and politics is both creative and, I must say, one I strongly share.
The authors begin with the premise that crises often precipitate paradigm shifts in policy—shifts that both political parties typically embrace. The Great Depression and World War II led to the New Deal: the creation of social safety nets like Social Security, investment in public goods such as highways, and major funding for public education and research. The upheavals of the 1960s and the stagflation of the 1970s resulted in an era of greater freedom and environmental awareness—bringing about civil rights legislation, deregulation, same-sex marriage rights, the founding of the EPA, and the Endangered Species Act.
By the late 2010s, however, frustration was mounting in Middle America, driven by growing inequality, income disparity, the pandemic, the perceived incompetence of the state (as seen in Iraq and Afghanistan), and anxiety over China’s rise. This discontent fueled political polarization and led to extremism on both the right and the left. Trump claimed that America was overextended and exploited by immigrants and foreign nations. Meanwhile, Bernie argued that oligopolistic practices and economic exploitation were to blame and called for broader opportunity-sharing. Despite their differences, both advocated for rebuilding America’s strength. The public, yearning for confident leadership, responded. Obama captured this spirit with “Yes We Can.” Biden emphasized, “Build Back Better.” Trump’s version was, “Yes, I Can.” In contrast, Kamala Harris remarked that there was little she would have done differently than Biden—a comment that failed to inspire. With some hesitation, a narrow majority elected Trump. Many now express buyer’s remorse.
Klein and Thompson argue that the current dysfunction is the product of flawed decisions made by both parties. Republicans embraced the mantra that “government is the problem” and “cannot pick winners.” At the same time, Democrats pushed regulatory agendas focused on equity and environmental impact—efforts that, while well-intentioned, often stifled innovation and entrepreneurship.
However, history shows that public research and policy have been powerful engines of growth. DARPA (the Defense Advanced Research Projects Agency) laid the groundwork for technologies such as weather satellites, GPS, drones, stealth technology, voice interfaces, the personal computer, and the internet—technologies that gave the US a significant edge. The public sector funded research, development, and initial commercialization in these cases, while the private sector deployed and scaled the technologies.
The National Institutes of Health financed the Human Genome Project and research on mRNA vaccines, gene editing, and other medical breakthroughs. Public investments enabled the development of these technologies, which were later scaled by private firms, often with continued public support. This public-private partnership has also driven the introduction of penicillin and many other transformative innovations.
The authors stress that innovation is a continuous process. A breakthrough—typically credited to an individual scientist—is just the beginning. Progress requires sustained support and development. Unfortunately, in recent decades, the US has excelled at discovery but struggled with deployment, while other countries have taken the lead in scaling innovations. For example, US scientists invented solar cells, but China now dominates its production.
As the nation faces the dual challenge of combating climate change and overhauling its infrastructure, its ability to build is hampered by overregulation. A striking example is California’s high-speed rail project, which has repeatedly failed while similar projects move forward in Europe and China.
The central message of Abundance is that we need to rethink our approach to economics and policy. Economists and policymakers must better understand the innovation-to-deployment pipeline, recognize the importance of investing in education, research, and development, and work to reduce bureaucratic obstacles that hinder progress.
Similarly, streamlining regulatory barriers will enable entrepreneurs to implement new technologies. Streamlining is not easy—many regulations were introduced for good reasons: to ensure scientific rigor, protect the environment, and maintain quality of life. However, excessive caution comes at a cost, and these constraints can become paralyzing. We need thoughtful and timely regulatory reform. Policy evaluation must include a benefit-risk assessment and be done periodically.
We must also trust and empower young scientists, providing them the resources to explore bold new ideas. Rethinking zoning laws, allowing for increased housing density, and accelerating the permitting process are key steps toward enabling infrastructure development that fosters growth and reduces greenhouse gas emissions.
We need to develop institutions and mechanisms that allow all members of society to enjoy abundance. Harnessing the potential of artificial intelligence and leverage new insights from psychology and education may revitalize the education system and ensure broader inclusion in the modern economy. Creativity and ingenuity must be devoted to reduce inequality and alienation, and these efforts may require significant transfer of wealth towards the less fortunate, not tax reduction. Openness to the world remains essential. The US has long benefitted from its extraordinary capacity for research and innovation—driven by talent from across the globe attracted by the American education system. That pipeline must remain open and strong. US industries rely on global knowledge and collaboration, and those ties should be deepened, not weakened. Rather than succumbing to fear and scarcity, we should lay the groundwork to cultivate Abundance here and abroad.
