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The Realignment

594 | Steve Teles: Hard Lessons for Centrists Trying to Overcome the Mediocrity Challenge + Last Call for Niskanen Summer Institute Applications

61 min episode · 3 min read
·
Steve Teles

Episode

61 min

Read time

3 min

Topics

Career Growth, Productivity, Personal Finance

AI-Generated Summary

Key Takeaways

  • Anti-Entrenchment Economics: The Captured Economy framework identifies rent-seeking across finance, medicine, intellectual property, and housing as sources of upward redistribution. This approach combines classical economics with anti-status quo politics, arguing that competition forces wealthy incumbents to compete rather than extract super-normal profits through market entry barriers. The analysis differs from economic populism by maintaining plausible economic theory rather than pure political critique.
  • Government Consumerism Framework: Abundance functions as a consumerist movement focused on government services for people without private alternatives. This perspective treats working-class constituents who depend on public schools, police, and transit as the primary constituency rather than government employees. The framework enables Democrats to differentiate themselves by prioritizing service delivery over producer interests, similar to how education reform once signaled costly moderation.
  • Materialist Movement Strategy: Abundance should focus on physical world improvements rather than virtual innovation, addressing stagnant productivity in housing, transit, and infrastructure. Factory-built housing could solve local crises like Springfield, Ohio's migrant housing shortage by enabling rapid construction independent of local labor constraints. This materialist focus resonates culturally by addressing concerns about online gambling, pornography, and declining school performance from device usage.
  • Varieties of Abundance Synthesis: Abundance operates as a syncretic ideology mixing with democratic socialism (red plenty), environmentalism (Cascadian abundance), and libertarianism. The shared toolkit includes state capacity reforms and anti-procedural approaches that enable strange bedfellow coalitions across traditional ideological lines. This synthesis provides identity and theory of change for people who reject conventional conservative or socialist labels while pursuing ambitious government reform projects.
  • Collective Differentiation Model: Effective political moderation requires collective action through recognizable brands rather than individual differentiation. Education reform Democrats once formed a squad that took costly signals by challenging teacher unions, creating both voter trust and legislative momentum through repeated reform attempts. Atomized moderation fails because nationalized politics reduces individual differentiation value, requiring teams with multi-year governing programs to overcome generic party brand problems.

What It Covers

Steve Teles and Marshall Kosloff examine how moderate and centrist movements like abundance can succeed in an anti-status quo political environment. They explore the challenge of technocratic politics meeting populist demands, discuss varieties of abundance ideology across the political spectrum, and critique ineffective moderation that lacks substantive policy projects.

Key Questions Answered

  • Anti-Entrenchment Economics: The Captured Economy framework identifies rent-seeking across finance, medicine, intellectual property, and housing as sources of upward redistribution. This approach combines classical economics with anti-status quo politics, arguing that competition forces wealthy incumbents to compete rather than extract super-normal profits through market entry barriers. The analysis differs from economic populism by maintaining plausible economic theory rather than pure political critique.
  • Government Consumerism Framework: Abundance functions as a consumerist movement focused on government services for people without private alternatives. This perspective treats working-class constituents who depend on public schools, police, and transit as the primary constituency rather than government employees. The framework enables Democrats to differentiate themselves by prioritizing service delivery over producer interests, similar to how education reform once signaled costly moderation.
  • Materialist Movement Strategy: Abundance should focus on physical world improvements rather than virtual innovation, addressing stagnant productivity in housing, transit, and infrastructure. Factory-built housing could solve local crises like Springfield, Ohio's migrant housing shortage by enabling rapid construction independent of local labor constraints. This materialist focus resonates culturally by addressing concerns about online gambling, pornography, and declining school performance from device usage.
  • Varieties of Abundance Synthesis: Abundance operates as a syncretic ideology mixing with democratic socialism (red plenty), environmentalism (Cascadian abundance), and libertarianism. The shared toolkit includes state capacity reforms and anti-procedural approaches that enable strange bedfellow coalitions across traditional ideological lines. This synthesis provides identity and theory of change for people who reject conventional conservative or socialist labels while pursuing ambitious government reform projects.
  • Collective Differentiation Model: Effective political moderation requires collective action through recognizable brands rather than individual differentiation. Education reform Democrats once formed a squad that took costly signals by challenging teacher unions, creating both voter trust and legislative momentum through repeated reform attempts. Atomized moderation fails because nationalized politics reduces individual differentiation value, requiring teams with multi-year governing programs to overcome generic party brand problems.
  • Project-Based Politics: Successful abundance leaders like Randy Clark (DC Metro), Scott Wiener (California YIMBY), and Michelle Rhee (DC schools) built careers around sustained reform projects rather than status maintenance. Adrian Fenty lost reelection but left visible infrastructure improvements across DC through risk-taking governance. This approach contrasts with career politicians who accumulate tenure without accomplishments, offering anti-status quo messaging that resonates with voters seeking proof of substantive commitment beyond tested messages.

Notable Moment

Teles reveals that a prominent congressional office proudly stated no one had read the abundance book, viewing association with Ezra Klein-style thinking as politically toxic. This resistance from centrist Democrats contrasts with democratic socialists like Zohran Mamdani openly using abundance and state capacity language, suggesting the framework resonates more with ideological factions than establishment moderates seeking safe differentiation.

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Episode Transcript

Marshall here. Welcome back to the realignment. Before we jump into my latest conversation with my Niskanen subject colleague, Steve Tallis, I want to shout out the Niskanen Summer Institute, our week long academic program for undergrads interested in the intersection realignment. The program is fully funded, so we'll cover your logic, travel, and offer a $250 stipend to participants. Students in the class of twenty twenty six or later are eligible. Applications are due on February 27. You can find the link to the application in the show notes. On to today's episode. Steve and I cover a lot of ground, but the main focus is the challenge raised by last week's episode. How moderates, centrists, and technocratically coded movements like abundance can meet an increasingly populist anti status quo electorate. I hope you all enjoy the conversation. Steve, welcome back to the realignment. Happy to be here, Marshall. The cost of lots of travel in January and the fact that I have actual day to day responsibilities at our think tank in the scanning center means that we have not been able to hop on a recording yet this year, so I'm very excited to do that. Here's the overall theme for the episode. 2025 was a big year. A lot of theses were put out there. A lot of takes were had, and a bunch of things were either validated or invalidated. So I wanna do a broad facing episode where you and I could go over a lot of our takeaways and sort of notes for the future for folks in this audience who are interested in that style of thinking that folks can really take into the, not only rest of the year, but really the fact that a lot of these conversations are gonna reset after the midterms this November. I want to kick off with something you and I both really wanted to discuss, which is sort of the cleanest hit that I have taken from the not just like economic populist on the left side, but also just sort of like right wing people who are populist, which is just that in an anti status quo moment, there is a real difficulty when it comes to moderate and center coded movements and ideas like abundance and attacking and being aggressive on that's against that status quo. I would love to hear your kind of thoughts on that. We can get into it. Yeah. So I thought about this a lot. So back in 2017, I wrote a book with also Niskanen Center fellow, Brent Lindsay, called The Captured Economy, which made the argument that, in fact, lots of our economy, as it's in the title, right, was in fact captured by entrenched incumbent interests, and that there was a political economy to that, that there was actually ways that, whether it was in finance or medicine or intellectual property or housing, you go down the down the, down the list. Our economy …

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  • Teles reveals that a prominent congressional office proudly stated no one had read the abundance book, viewing association with Ezra Klein-style thinking as politically toxic.

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