Glenn Loury on the Cover Story and the Real Story | Conversations with Tyler

29 Jan 2026 · 62 min
1:01:55

In this hour‑long episode of Conversations with Tyler, host Tyler Cowen interviews economist, public intellectual, and memoirist Glenn Loury. The conversation moves fluidly across a wide range of subjects. Loury begins by linking his personal musical taste—bebop jazz of the late 1950s‑early 1960s and Chicago R&B—to his life story, noting that the music reflects his upbringing rather than any political agenda. He then discusses cultural questions about Motown versus Stax, Michael Jackson, Prince, and bluegrass, offering personal anecdotes and reflections on how music shapes identity. The interview shifts to Loury’s early academic work. He revisits his 1979 Quarterly Journal of Economics paper on firm size and innovation, explains his view that more firms tend to increase the rate of innovation, and reflects on how the field has moved from applied theory to data‑driven empirical work. He critiques the current emphasis on natural experiments and argues that monopoly could, in theory, restrain resource extraction, but that a Pigouvian tax is politically infeasible. Loury recounts his experience at Harvard in the early 1980s, his crisis of confidence, and a memorable episode with Thomas Schelling that highlighted the neurotic culture of elite economics departments. He describes his subsequent move to the Kennedy School, his turn toward public‑policy commentary, and his growing distance from graduate‑student mentorship. The conversation then turns to personal and societal issues: the mental‑health pressures on elite undergraduates, the particular challenges faced by Black students at top schools, and the broader opioid/fentanyl crisis. Loury shares his own history of cocaine addiction, treatment, a brief relapse, and the insights that emerged while drafting his forthcoming memoir. He explains the memoir’s central theme of distinguishing a “cover story” (self‑aggrandizing narrative) from the “real story” (unvarnished self‑delusion), and he reflects on how his religious journey—from evangelical Christianity to a more agnostic stance—has affected his views on abortion, personal responsibility, and mortality. Finally, Loury offers his perspectives on race: he urges the white right‑wing to recognize that the people they label as “ghettos” are also “us,” and he stresses that structural economic inequality, not cultural blame, drives many of the problems they discuss. He contrasts his approach with that of his longtime interlocutor John McWhorter, critiques his own wife’s criticism that he focuses on cultural battles rather than economic foundations, and shares his favorite novels, movies, and thoughts on facing death. Throughout, Loury blends personal narrative, scholarly insight, and cultural commentary, providing a multifaceted portrait of a scholar‑turned‑public intellectual grappling with his past, present, and future.

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