The Strong Towns Podcast

Every year, Strong Towns founder Chuck Marohn releases a list of the best books he read that year. Past lists have included books that shaped the Strong Towns conversation in profound ways: Chris Arnade’s Dignity (2019), Jonathan Haidt’s The Righteous Mind (2017), Cognitive Architecture, by Ann Sussmann and Justin Hollander (2017), and Tomas Sedlacek’s Economics of Good and Evil (2016), to name just a few.

Spoiler alert: 2020’s list will include The Myth of Capitalism, coauthored by Denise Hearn, this week’s guest on The Strong Towns Podcast. Hearn is a Senior Fellow at the American Economic Liberties Project and an advisor to organizations, asset managers, and companies who want to use their resources to support a more equitable future.

In the introduction to The Myth of Capitalism, Hearn and her coauthor, Jonathan Tepper, write that capitalism has been “the greatest system in history to lift people out of poverty and create wealth.” Yet the “capitalism” we see in the U.S. today is so misshapen it hardly qualifies. “The battle for competition is being lost. Industries are becoming highly concentrated in the hands of very few players, with little real competition.” Capitalism without competition, they say, is not capitalism.

If you believe in competitive markets, you should be very concerned. If you believe in fair play and hate cronyism, you should be worried. With fake capitalism CEOs cozy up to regulators to get the kind of rules they want and donate to get the laws they desire. Larger companies get larger, while the small disappear, and the consumer and worker are left with no choice.

In this episode, Marohn and Hearn discuss why reduced competition—in the form of monopolies, duopolies, and oligopolies—hurts us not only as consumers and workers but as citizens and community members. They talk about the collusion (both direct and tacit) that consolidates wealth and power into fewer hands. And they discuss what our economic systems must learn from natural systems, including the role of competition and the importance of “habitat maintenance.” (Fans of Jane Jacobs' The Nature of Economies will love this part.)

Ending on a hopeful note, Marohn and Hearn also discuss the convergence, across industries, of new conversations about how to build stronger towns and stronger economies from the bottom-up.

Additional Show Notes:

• The Myth of Capitalism: Monopolies and the Death of Competition, by Jonathan Tepper with Denise Hearn

• Denise Hearn (Twitter)

• Denise Hearn (Website)

• “My Journey from Free Market Ideologue to Strong Towns Advocate,” by Charles Marohn

• The Ultimate Strong Towns Reading List

What do we call a society that—from Wall Street to Main Street, from Washington, D.C. to your local city council chambers—seems to have been uprooted from facts and time-tested fundamentals, and is being driven instead by whatever stories can be sold as truth? Ben Hunt calls it “Fiat World,” a world declared into existence.

A former hedge fund manager, in 2013 Ben Hunt created Epsilon Theory, a newsletter and website that has become essential reading for more than 100,000 professional investors and allocators across 180 countries. He’s also our very special guest on this week’s episode of the Strong Towns podcast.

Ben tells Strong Towns president Chuck Marohn that massive debt and dislocation, social media, and the 24-hour news cycle (among other forces) have helped shape a world in which everything is presented by declaration. We have to be in this world, Ben says, but “we don’t have to give them our heart. We can maintain a distance of mind, an autonomy of mind, so that we see clearly what’s happening...We’re not going to be the suckers at the table.”

Ben and Chuck discuss some of the new rules—in the economy, media, and beyond—that must be understood, challenged, and changed. They talk about why capital markets and housing markets are too important to be left to the investors.

They talk too about the “zombification” of cities, in which towns and cities are all unwittingly doing the same self-destructive things. Ben and Chuck discuss why this won’t be fixed from the top down and how local leaders can make the right decisions in a Fiat World. We also get an update from Ben on how Epsilon Theory readers have helped distribute N95 and N95-equivalent masks to healthcare professionals and emergency responders through a kind of “underground” PPE pipeline.

Listen to this wide-ranging conversation and you’ll start to see why, back in May, Chuck recommended Ben Hunt and Epsilon Theory to help make sense of our new reality. Chuck wrote: “No matter how badly we want to believe it—and even I, at times, want to believe it—seeing beyond the narrative, realizing its inherent falsehoods, is the most important and empowering first step we can take.”

Additional Show Notes

• Epsilon Theory
• “Fiat World,” by Ben Hunt
• Epsilon PPE Requests
• Ben Hunt (Twitter)
• Chuck Marohn (Twitter)

Here’s a taste of our newest podcast, The Bottom-Up Revolution, hosted by Rachel Quednau. In this episode, you’ll hear from Alexander Hagler, an entrepreneur and urban gardener based in Milwaukee, WI who founded a store called Center Street Wellness, a space for local makers to sell their handcrafted products focused on mental and physical wellbeing. And you’ll learn about how to support entrepreneurs in your own community—or become one yourself. Find out more about this new podcast and keep up with new episodes here: https://www.strongtowns.org/podcast

What is keeping us from doing the things we need to do right now? Why do we outsource the response to urgent problems to the federal government and other distant entities—responses that may never come, or may come with solutions that don’t actually fit our communities?

Consider California governor Gavin Newsom, standing amidst the wreckage of a wildfire in September, saying the United States needs “get our act together on climate change.” The climate crisis, he said, “needs to enliven all of us in this nation…” Or think of Kansas City, Missouri, standing by, apparently, for a federal response to the multigenerational effects of redlining in Kansas City neighborhoods.

Well, what are you waiting for?

The Strong Towns podcast returns this week with a look at why we shouldn’t wait for top-down solutions to problems that can be addressed—at least in part—closer to home. (There are ways California and Kansas City can take action right now to address the important issues of climate change and redlining.) Strong Towns founder Chuck Marohn discusses the dysfunction of the current political moment. He also reminds us that—no matter who wins the presidential election on November 3—there’s much we can (and must) do ourselves.

At the end of the day, Chuck says, we do an injustice to our economy, our culture, our future, our present, our neighbors and ourselves, if we are paralyzed into inaction. No one is coming to save us…and if they do, it may not be the help we need.

In a postscript to the episode, Chuck explains why the podcast has been on hiatus and why there’s a lot to look forward to in the weeks and months ahead.

Additional Show Notes

• “The Local Case for Reparations,” by Charles Marohn

• The Local Leader’s Toolkit

• Strong Towns 101 (Free Course)

• Strong Towns Academy

• Additional Strong Towns podcasts

Two Minnesotans -- Aaron Brown and Chuck Marohn -- are regular commentators on KAXE community radio out of Grand Rapids, Minnesota, and have regular conversations where they dig deep into the issues of the day. The Dig Deep program is hosted by KAXE's Heidi Holton and can be heard on-air as well as by download at KAXE.org.

What a new strip mall reveals about the massive disconnect between what's "good" for the macro-economy and what's actually good for a local community.

Reminder: The subscription bundle for the Strong Towns Academy is only available through Friday, June 5, 2020. This is your chance to get all nine courses at 83% off the a la carte price. These courses unpack the Strong Towns approach to everything from transportation and housing, to economic development and public engagement, and more. Get more information here: https://academy.strongtowns.org/p/subscription-bundle

On the final day of the member drive, Chuck discusses what success means for the Strong Towns movement. Sign up to become a member at strongtowns.org/membership.

Additional Show Notes

• “'Techlash' at Sidewalk Labs could mean smart city rethink,” by Chris Teale
• “Is Strong Towns Anti-Smart City?” by Kea Wilson
• ”In Defense of Dumb Cities,” by Michael McGinn
• Become a Strong Towns Member
• Abby Kinney (Twitter)
• Charles Marohn (Twitter)
• Daniel Herriges (Twitter)
• Gould Evans Studio for City Design
• Theme Music by Kemet the Phantom (Soundcloud)

How do you actually implement a Strong Towns approach? The latest ebook from Strong Towns is The Local Leader's Toolkit: A Strong Towns Response to the Pandemic, a free guide for local leaders looking for a recovery plan for their community.

This week is the Strong Towns Member Drive. Support the Strong Towns movement by going to www.strongtowns.org/membership.