Tyler and Alex revisit Tyler’s 1998 book and trace how commerce disciplines and amplifies creativity. Great artists bargained hard because money buys orchestras and time. “Inspired consumption” means high-quality audiences shape better art. Dynamic, Hayekian competition discovers new genres, while pulp cross-subsidizes the sublime. They disentangle when government support works, why TV improved with entry and subscriptions, how “payola” rhymes with supermarket slotting fees and with Spotify’s algorithmic era, and why some modern art maligned as minimal is, in fact, marvelous. Along the way they touch on reading’s spiky renaissance, textiles as the smartest undervalued collectible, the real story on brutalism (is the DC Metro overrated?), and a sober take on cultural pessimism’s recurring illusions—plus what all this implies for AI-era culture.

Transcript and links: https://www.mercatus.org/marginal-revolution-podcast/praise-commercial-culture

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• Follow Alex on X: https://x.com/ATabarrok
• Follow Tyler on X: https://x.com/tylercowen

See Alex and Tyler's recent posts on Marginal Revolution: https://marginalrevolution.com/

Chapters

• 0:00:00 Why Alex loves the book
• 00:02:05 The challenge of getting it published
• 00:04:10 Mozart was motivated by money
• 00:06:40 Great audiences create great art
• 00:08:25 Economics of the avant-garde
• 00:13:39 Good and bad government art funding
• 00:17:22 Golden era TV
• 00:20:20 Book publishing and reading
• 00:26:43 Competition as a dynamic discovery process
• 00:32:14 The value of modern art and architecture
• 00:38:53 Payola got a bad rap
• 00:42:10 Spotify streaming economics
• 00:46:41 Why cultural pessimism pervades

Recorded 1/13/2025