It's Time to Found a New Republic

[Commentary] Today, faced with serious economic and political dysfunction, we are in need of another round of deep institutional renewal: a Third Republic. We need to coalesce around how best to create shared prosperity. This necessitates increasing productivity — the growth of which has been weak of late — and creating more well-paid jobs as well as finding better ways of redistributing the gains from new technologies and globalization in the fairer way.

Redesign antitrust for the era of big data: The role of large, dominant corporations in the U.S. economy has reached alarming proportions. The conventional commercial doctrine is that data are proprietary to the companies that collect them. This needs to change profoundly and completely since the playing field can only be leveled by making data available to all potential competitors. One way of achieving this is to ensure data belong to the people who generate the information, i.e., to individuals who drive cars, surf the internet, and buy goods. Enforcing this principle will ensure that data can be accessed by all, but also that individuals are compensated for the activities that generate information, at the same time as receiving a strong degree of privacy protection. The American Third Republic needs to clean up the influence industry and strengthen the institutional foundations of our democracy.

[Daron Acemoglu is a co-author with James A. Robinson of Why Nations Fail: The Origins of Power, Prosperity, and Poverty. imon Johnson is the Ronald A. Kurtz Professor of Entrepreneurship at MIT Sloan School of Management.]