
Zooming In at The UnPopulist Does America Need a Deeper State to Save It? A Conversation with Tyler Cowen and Francis Fukuyama
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Jan 26, 2026 Francis Fukuyama, political theorist focused on state capacity and bureaucracy, and Tyler Cowen, economist and commentator on markets and innovation, spar over whether America’s governing machinery is up to the task. They debate state capacity, regulation and implementation, private-sector versus public successes, lessons from Denmark, and risks of autonomous bureaucracy. Fast-paced, contrarian, and wide-ranging.
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Shapiro's Two-Week Interstate Fix
- Josh Shapiro fixed an I-95 accident in two weeks by suspending rules, even if some actions were technically illegal.
- Fukuyama uses this to show routine end-runs around rules can't be the norm for government operation.
Procurement's Waterfall Kills Modern IT
- Federal IT and defense procurement follows slow waterfall processes that produce obsolete results and costly failures.
- Reforms should create agile feedback loops and allow faster, modular procurement to use modern software effectively.
Litigation Turns Regulation Into Sludge
- Private right of action and heavy litigation inflate permitting and environmental review costs.
- Fukuyama recommends shifting regulation from litigation-led enforcement to bureaucratic implementation to cut transaction costs.










