The Biggest Lie About Capitalism | Mariana Mazzucato interview
UCL Institute for Innovation & Public Purpose, Professor Mariana Mazzucato, discusses her new book The Common Good Economy: A New Compass and why she believes modern capitalism is failing to deliver for ordinary people.
From Palantir’s NHS contracts and the future of AI governance to Thames Water, steel, industrial strategy, and the green transition, Mariana argues that governments have lost confidence in shaping markets around public purpose. Instead, she says, we’ve created an economy that too often socialises risk while privatising reward.
The conversation explores why governments fund many of the world’s biggest innovations – from the internet and AI to Tesla and SpaceX – yet rarely share in the rewards when those investments succeed. Mariana explains how public investment helped create some of today’s most valuable companies, why she believes Britain’s relationship with business has become increasingly “parasitic”, and what a more mission-driven economy could look like.
The interview also covers Labour’s economic strategy, Keir Starmer’s mission-led government, the future of industrial policy, public‑private partnerships, corporate subsidies, regulation, and the role of the state in driving innovation. Mariana challenges the idea that regulation stifles growth, arguing instead that smart regulation has historically been one of the biggest drivers of innovation and prosperity.
She also explains why governments need clearer goals, stronger contracts, and greater accountability when working with private companies. Whether discussing water infrastructure, pharmaceuticals, AI, or clean energy, her central argument is that markets should be organised around outcomes that benefit people and the planet, not simply around short‑term profit.
If you’re interested in economics, politics, industrial strategy, public ownership, AI, innovation, inequality, growth, Labour politics, public services, climate policy, or the future of capitalism, this conversation is essential listening.