Joel Mokyr on Clans, Corporations, and a Culture of Growth

Joel Mokyr co-won the 2025 economics Nobel for exploring the question that traces back to the beginning of economics: how did sustained economic growth suddenly become normal? For nearly all of human history, cleverness didn't compound. What changed, according to Mokyr, was twofold: first, you need to know why something works, so that one advance can seed the next; second, you need a culture willing to tolerate the disruption. His new book contrasts Europe with China, showing how Europeans learned to cooperate with people they weren't related to, in guilds, monasteries, cities, and universities, while China organized itself around the extended clan. One path led to internal stability and peace; the other, more restless and outward-looking, was the one that decided the world could always be made better. Tyler and Joel discuss European corporations vs. Chinese clans, why the Catholic Church became obsessed with cousin-marriage, how persistent cultural trends really are, why Chinese cities became so populous relative to Europe, why it took so long for European living standards to surpass China's, why sinified invaders kept getting swallowed by the dynasties they conquered, how geography kept Europe fragmented and China unified, where India fits into the story, why the Romans never made spectacles, why British soldiers stood two inches taller than the French, what powered the sudden rise of 19th-century German science, how disruptive winning a Nobel is, and much more. Read a full transcript enhanced with helpful links, or watch the full video on the new dedicated Conversations with Tyler channel. Recorded February 20th, 2026. This episode was made possible through the support of the John Templeton Foundation. Other ways to connect Follow us on X and Instagram Follow Tyler on X Sign up for our newsletter Join our Discord Email us: cowenconvos@mercatus.gmu.edu Learn more about Conversations with Tyler and other Mercatus Center podcasts here. Timestamps: 00:00:00 - Intro 00:00:54 - Europe vs. China's Paths to Prosperity 00:10:22 - China's Growth 00:13:24 - Europe's Growth 00:18:56 - The Fall of Song China 00:21:56 - India 00:25:08 - Industrial Revolution 00:39:52 - 19th-Century German Science 00:43:37 - Being a Nobel Laureate 00:45:29 - Outro Photo Credit: Shane Collins