“Government fails because it grows, and it grows because it fails” 
“We must make the building of a free society once more an intellectual adventure, a deed of courage…if we can regain that belief in the power of ideas which was the mark of liberalism at its greatest, the battle is not lost (Hayek, 1949)” 
The second part of the chapter on the reconstruction of the liberal project examines the populist revolt in its various forms and suggests a liberal/cosmopolitan response. Boettke sees left and right forms of the populist critique of the status quo. I have been irritated by a lot of the talk about the rise of populism because there seems to be an assumption that everyone knows what populism means and right now I am feeling left out because I don’t have a handle on what it is except that is supposed to be really bad. I think populism is good when I agree with the result and bad otherwise.
Brexit and the victory of Trump are supposed to be bad populism but I am in favour of both. Maybe it is the motivation that counts as bad – like the British who voted yes because they don’t like foreigners and the people who voted for Trump because they wanted tariffs to protect their jobs.
And then there is the populism of the left, vote buying for every politically correct group and the children’s crusade that backs Bernie Sanders and Jeremy Corbyn. Trump is reviled as a racist by the deranged but he reached out to the ethnic communities and not in the cynical manner of Lyndon Johnston who probably invented the race card.
Insofar as there are arguments to support the idea that capitalism has failed, they bring recall Hutt’s complaint that the success of capitalism in advancing the poor had generated outrage at the poverty that was to that time accepted as inevitable and eternal “the poor are always with us”. He pointed out that the spin was to blame capitalism as though it was the cause of the problem and not the solution.
The main point here is that the failures that upset the populists are caused by big government and the welfare state. Our task is to explain this in a way that recruits the young people who are victims of the mentality that “not to be a socialist at 20 is to lack a heart”. Gook luck with that in the current climate of debate with the demand for equality and minority rights weaponised with the aid of the mainstream media, “our” ABC and the social media. Boettke is up for the contest and there is some probing analysis of the situation in this chapter with the conclusion pointing again to the need for institutional solutions to institutional problems.
And to end on a brighter note “Despite the obvious frustrations with the establishment elite, it is a simple fact that 2015 was the first year in all of recorded human history when less than 10% of the world’s population were living in extreme poverty.” 
Wind and Other update, delivering 13% of demand.
In case you know people who are excited as more wind comes on line, remind them that this will increase the cost of power and reduce the reliability of supply.