Elite Networks: The Hidden Driver of Inequality? w/ Vuk Vukovic - EP263

Dr Vuk Vukovic, economist and founder of Oraclum Capital, joins Gene Tunny to discuss elite networks, their economic impact, and the future of democracy. Delving into his research, Dr Vukovic examines how political connections affect income inequality and corporate success. He shares his innovative Bayesian approach to predicting financial and political trends, offering a glimpse into his hedge fund’s methods. The episode also tackles the dangers of centralized political power and explores solutions for empowering communities and fostering trust in democratic institutions.  If you have any questions, comments, or suggestions for Gene, please email him at contact@economicsexplored.com.About this episode’s guest Dr Vuk Vukovic In brief: an academic and practitioner ​Academic...Oxford PhD, LSE Masters, Harvard, Berkeley5-year university teaching experiencePublished in top journals, published a book (@Oxford University Press) => Elite NetworksExpert member of Parliament committee Practitioner...Running a hedge fund in NYC, Oraclum Capital (ORCA), based on our scientific innovation in network theory Before that, founded two companies: market research consultancy & boutique rating agencyMacro-based trader & investor for over 10 years (learning by doing: lots of mistakes, lots of helpful lessons).Timestamps0:00 - Gene introduces Vuk and his work on elite networks and Bayesian analysis3:54 - Vuk explains how they use social network analysis to identify "super forecasters"7:47 - Vuk discusses the performance of his hedge fund Oraclum Capital9:29 - Vuk goes into more detail on their social network survey approach12:54 - Gene and Vuk discuss Vuk’s thesis on how political connections contribute to inequality20:21 - Discussion of Lina Khan and potential risks of Trump-Musk connections25:02 - Vuk discusses how corruption and concentrated power can lead to poor economic outcomes33:30 - Vuk outlines recommendations for decentralizing political power and re-empowering citizens39:13 - Vuk's final thoughts on the role of elites and the need for system design to channel their influence positivelyTakeawaysElite Networks Drive Inequality: Dr Vukovic’s research shows that corporate executives with political connections earn significantly higher salaries, fueling income inequality.Bayesian Analysis Enhances Forecasting: Dr Vukovic argues his approach improves financial and political predictions by weighting opinions based on network diversity and historical accuracy.Centralization vs. Decentralization: Dr. Vukovic argues for reducing centralized political power to lower inequality and enhance democratic processes.Democracy’s Resilience: While acknowledging current challenges, Dr Vukovic remains optimistic about democracy’s ability to adapt through trial and error.Links relevant to the conversation Info on Dr Vuk Vukovic: https://www.vukvukovic.org/ Elite Networks book: https://www.amazon.com.au/Elite-Networks-Political-Economy-Inequality/dp/0197774237 Oraclum Capital: https://oraclumcapital.com/Lumo Coffee promotion 10% of Lumo Coffee’s Seriously Healthy Organic Coffee. Website: https://www.lumocoffee.com/10EXPLORED Promo code: 10EXPLORED  Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.