Has neoliberalism narrowed our understanding of what governments can do? What role should the state play in shaping markets rather than merely correcting them? And how can economic systems be redesigned to promote shared prosperity rather than concentrated wealth?

Fred Block is Research Professor of Sociology at the University of California, Davis and one of the leading scholars of political economy and state capacity. His work examines the historical development of capitalism, the role of public institutions in fostering innovation, and the limits of market fundamentalism. He is the author of Capitalism: The Future of an Illusion and co author of The Power of Market Fundamentalism, where he critiques the ideological dominance of neoliberal economic thought.

In this episode, we explore Fred’s argument that markets are always embedded within political and institutional frameworks. He explains how the myth of self regulating markets has obscured the vital role of government in driving technological innovation, supporting infrastructure, and stabilizing economies. We discuss how public investment and strategic state action have historically played central roles in economic growth, even when political rhetoric celebrates private enterprise alone.

Our conversation also turns to the future of capitalism. Fred challenges the assumption that inequality and instability are inevitable features of modern economies. Instead, he argues that institutional design and political choices shape economic outcomes. For education, this raises critical questions about how economic narratives influence public policy and civic understanding. This episode invites listeners to reconsider the relationship between markets and the state, and to imagine forms of capitalism that prioritize democratic accountability and collective well being.