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Lex Fridman · 2022-10-20

Balaji Srinivasan: How to Fix Government, Twitter, Science, and the FDA | Lex Fridman Podcast #331

Balaji Srinivasan lays out a sweeping vision for replacing failing institutions, governments, the FDA, science, media, and money, with decentralized, crypto-powered alternatives and the 'network state.'

Balaji Srinivasan: How to Fix Government, Twitter, Science, and the FDA | Lex Fridman Podcast #331
The guest

Balaji Srinivasan: Angel investor, tech founder, and author of The Network State; former CTO of Coinbase and general partner at Andreessen Horowitz. He was also considered for a senior role at the FDA in the Trump administration.

What this episode covers

In this 7-hour conversation, Balaji argues that most 20th-century institutions, from government and the FDA to science, Wikipedia, and the media, are captured, gerontocratic, and decaying, and that the fix is not reform but building decentralized alternatives. He introduces 'the network state': a highly aligned online community that crowdfunds physical territory worldwide and eventually wins diplomatic recognition. He details how crypto can create verifiable 'ledger of record' truth, how the FDA could be exited rather than reformed, and how social media, science, and money can be rebuilt with property rights and decentralization. He frames the geopolitical future as tripolar, woke capital (NYT/Big Tech), communist capital (CCP), and crypto capital, and closes with practical advice to become a 'full-stack engineer and full-stack creator.'

Recommended on this episode

BookRecommendedISBN verified

Reputation and Power: Organizational Image and Pharmaceutical Regulation at the FDA

Daniel Carpenter

“it's a good book... it is well worth reading”
“do you recommend the book it's a good book yeah or it's it's now a little bit outdated okay because... still as a history of the FDA it is well worth reading”— Balaji Srinivasan
MediaRecommended

Limitless

Neil Burger

“the movie Limitless which I love”
“the opposite of like the Icarus or Picture of Dorian Gray kind of thing is the movie Limitless which I love because it's so”— Balaji Srinivasan
ProductRecommended

Brilliant

Brilliant.org

“amazing site I love this site”
“do you know brilliant.org amazing site I love this site brilliant is basically mobile friendly tutorials”— Balaji Srinivasan

The guest's own work

BookBy the guestISBN verified

The Network State: How to Start a New Country

Balaji Srinivasan

“a lot of the stuff will go into the version so I've got you know this book the network State um which which covers some of these topics”— Balaji Srinivasan

Also referenced (named, not recommended)

BookReferencedISBN verified

Exit, Voice, and Loyalty

Albert O. Hirschman

“there's this you know book which I I reference a lot I like it um called exit voice and loyalty by Albert hman”— Balaji Srinivasan
BookReferencedISBN verified

Der Judenstaat (The Jewish State)

Theodor Herzl

“is Der Juden by The Herzel which translates as the Jewish State and that led to the foundation of Israel and that's very real it's worth reading”— Balaji Srinivasan
BookReferencedISBN verified

Seeing Like a State

James C. Scott

“there's a book called seeing like a state which actually talks about the origins of surnames and whatnot”— Balaji Srinivasan
BookReferenced

The Sovereign Individual

James Dale Davidson and William Rees-Mogg

“I've talked about this in the book The Sovereign indidual has talked about this but very roughly you know you go up into 1950”— Balaji Srinivasan
BookReferencedISBN verified

The Forgotten Man: A New History of the Great Depression

Amity Shlaes

“Amy schay you know has written a book The Forgotten man and essentially her thesis and thesis of many others”— Balaji Srinivasan
BookReferencedISBN verified

Red Famine

Anne Applebaum

“because I visited Ukraine I've read red famine by an apple bomb bloodlands Y and it's just just a lot of coverage of the senses”— Lex Fridman
BookReferencedISBN verified

Bloodlands

Timothy Snyder

“I've read red famine by an apple bomb bloodlands Y and it's just just a lot of coverage of the senses”— Lex Fridman
BookReferenced

Mao's Great Famine

Frank Dikotter

“there's a good book I'm read because... like I'm currently reading miles Great Famine by Frank deart yeah which is uh oh boy it's crazy”— Balaji Srinivasan
BookReferencedISBN verified

The Picture of Dorian Gray

Oscar Wilde

“there's this book called The Picture of Dorian Gray right and the concept is sell your soul to you know ensure the picture”— Balaji Srinivasan
BookReferencedISBN verified

The Gray Lady Winked

Ashley Rindsberg

“Ashley rinberg in the great lady wink writes this whole thing up at length so you can go and read it for his account”— Balaji Srinivasan
BookReferencedISBN verified

Viral: The Search for the Origin of COVID-19

Alina Chan and Matt Ridley

“Matt Matt Ridley and alen Chan of in this book you know on um whether the Corona virus was a lab leak or not”— Balaji Srinivasan
BookReferenced

The Man Who Created Fidel

Anthony DePalma

“there's this book on this called the man who created Fidel okay where basically nyt's article was crucial positive press”— Balaji Srinivasan
BookReferencedISBN verified

Red Star Over China

Edgar Snow

“he wrote various books including like red star over China okay and it's just a he geography of of ma”— Balaji Srinivasan
BookReferencedISBN verified

Perfect Spy: The Incredible Double Life of Pham Xuan An

Larry Berman

“perfect spy the incredible double life of Pham fan on Time Magazine reporter and Vietnamese communist agent”— Balaji Srinivasan
BookReferenced

Blitzed: Drugs in the Third Reich

Norman Ohler

“Blitz the book that's talks about the influence of drugs in the Third Reich right were they on meth or something”— Lex Fridman
BookReferencedISBN verified

The Problem of China

Bertrand Russell

“bertran Russell actually wrote this whole long book... about uh the problem of China and one of his observations”— Balaji Srinivasan
MediaReferenced

Dallas Buyers Club

Jean-Marc Vallee

“the kind of stuff that was dramatized in Dallas virus Club where they were preventing people from getting AIDS drugs”— Balaji Srinivasan
MediaReferenced

Ghostbusters

Ivan Reitman

“one is actually the original Ghostbusters okay... so the EPA is actually the villain in that”— Balaji Srinivasan
MediaReferenced

Full Metal Jacket

Stanley Kubrick

“movies like um you know full metal jacket that was meant to be in my my understanding is meant to be like an anti-war movie”— Balaji Srinivasan
MediaReferenced

Minority Report

Steven Spielberg

“Minority Report had the the gesture thing right and the connect was based on that so it's a dystopian movie”— Balaji Srinivasan
MediaReferenced

Inglourious Basterds

Quentin Tarantino

“in glorious bastards there's a scene in the bar do you want talk about it”— Balaji Srinivasan
MediaReferenced

The Soviet Story

Edvins Snore

“there's this movie called the Soviet story it basically shows a lot of Nazi and Soviet propaganda things next to each other”— Balaji Srinivasan
MediaReferenced

Civilization

Sid Meier

“the tech tree model of History you know like Civilization you're play game civilization yeah”— Balaji Srinivasan
MediaReferenced

Minecraft

Markus Persson (Notch)

“you have an individual like Notch who can program Minecraft by himself or Satoshi”— Balaji Srinivasan
ProductReferenced

PillPack

PillPack

“there's a company called uh pillpack which innovated on quote the user interface for drugs by giving people a thing which had like a daily blister pack”— Balaji Srinivasan

Big reveals from this episode

  • Balaji's core thesis: the fundamental flaw of modern government is that you can't peacefully start new opt-in countries the way you start a company or a currency.
  • Argues real names are 'state names' that facilitated 20th-century genocides via lists, and that pseudonymity is itself a form of decentralization.
  • Claims Wikipedia is 'a defamation engine' on political topics, structurally biased toward 'white Western liberals,' even as he praises it on technical topics.
  • Reveals he was considered for a senior FDA role but believes it's easier to start a new country than to reform the FDA.
  • Asserts the FDA's drug lag and refusal to allow COVID challenge trials cost roughly a million American lives.
  • Floats 'genomic reincarnation', synthesizing a person's full chromosome set to print out a clone funded by their crypto community's karma.
  • Sci-fi scenario: a future where the US loses to non-white Chinese communist nationalists abroad and faces a Bitcoin-maximalist 'financial secession' at home.
  • Argues 'woke capital' weaponizes ideology for profit, making the bias case against centralized AI a cover for charging $99 per use.

Worth remembering

  • The episode runs over 7 hours, making it Lex Fridman's longest conversation at the time.
  • Most countries are small: only 14 nations have over 100 million people, while many have fewer residents than large social networks.
  • Benford's law (the 'first digit law') states leading digits in real data sets skew small, ~30% start with 1, and is used to detect fraud.
  • Banting and Best went from idea to a Nobel Prize and continent-scale insulin production within a couple of years, 'Pharma at the speed of software.'
  • Quotes a Genentech CEO comparing the FDA to a Brazilian soldier pointing a machine gun at the pharmaceutical industry: 'they own you body and soul.'
  • Cites a real 2004 case of a child with a myostatin mutation born extraordinarily muscular, 'real-life X-Men.'
  • China built over 23 million gross tons of shipping in 2020 versus ~70,000 tons in US yards, a 100-to-300x ratio.
  • In pre-1978 China capitalism was punishable by death; a farmer was reportedly told even the teeth in his head belonged to the collective.
  • Pravda, the Soviet newspaper, literally means 'truth', echoing the NYT's 'The truth is...' ad campaign.
  • Balaji predicts that by ~2030 the majority of English speakers online will be Indian, 'they speak with an accent but they don't type with an accent.'