Are Rich People Better Than You? Why Everything We Think We Know About Good Economics Might Be Backward, With Nick Hanauer
It turns out Americans have been asking the wrong question: It's not, “What’s the difference between the ‘haves’ and the ‘have nots,’” but rather…“How did those in the 0.1% end up having it all?”
To paraphrase my guest, entrepreneur and venture capitalist Nick Hanauer (https://nickhanauer.com/), “How do [rich people like me] manage to grab an ever-increasing piece of the pie? Is it because rich people are smarter than we were 30 years ago? Is it that we’re working harder than we once did? Are we taller? Better-looking? Sadly, no. It all comes down to one thing: economics.”
My thesis? Capitalism is the economic system that creates wealth, and good economic policy is what ensures that all that wealth doesn’t accrue to a very small group of people.
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Transcripts can be found at https://www.podpage.com/money-with-katie-show/.
Mentioned in the Episode
- Nick Hanaeur's TED Talk "The Dirty Secret of Capitalism": https://www.youtube.com/watch?v=th3KE_H27bs
- Jacob Hacker & Paul Pierson's The Winner-Take-All Economy: How Washington Made the Rich Richer and Turned Its Back on the Middle Class: https://politicalscience.yale.edu/publications/winner-take-all-politics-how-washington-made-rich-richer-and-turned-its-back-middle
- Jared Bernstein & Karen Kornbluh's paper “Running Faster to Stay in Place: The Growth of Family Work Hours and Incomes": https://www.upi.com/Business_News/2004/07/20/Workers-put-in-more-hours-just-to-keep-up/79691090369058/
- Reaganomics, FDR, & deregulation: https://origins.osu.edu/history-news/time-end-deregulation?language_content_entity=en
- "Reaganomics Killed America's Middle Class" from Salon: https://www.salon.com/2014/04/19/reaganomics_killed_americas_middle_class_partner/
- Marginal tax rates in 2022: https://www.nerdwallet.com/article/taxes/federal-income-tax-brackets
- CEO pay 300x the average worker: https://aflcio.org/paywatch
- Reagan quotes via the Reagan Foundation: https://www.reaganfoundation.org/ronald-reagan/reagan-quotes-speeches
- "The Myth of the Welfare Queen" from The New Republic: https://newrepublic.com/article/154404/myth-welfare-queen
- The Commodity Futures Modernization Act & the 2008 financial crisis: https://scholarship.law.cornell.edu/facpub/723/
- The 2000-2001 California electricity crisis: https://www.ppic.org/wp-content/uploads/content/pubs/report/R_103CWR.pdf
- "Voodoo economics": https://www.investopedia.com/terms/v/voodooeconomics.asp
- US GDP & tax revenue in the 1980s: https://fred.stlouisfed.org/series/GDP
- Wealth inequality & GDP growth from OECD: https://www.oecd.org/newsroom/inequality-hurts-economic-growth.htm
- Federal debt under Reagan: https://mises.org/library/sad-legacy-ronald-reagan-0
- Revolve's Gestalt University: https://podcasts.apple.com/us/podcast/resolves-gestalt-university/id1463123745?i=1000510150469
- RAND Corporation on wealth transfers: https://www.rand.org/pubs/working_papers/WRA516-1.html
- "The Prosperity Gospel, Explained" from Vox: https://www.vox.com/identities/2017/9/1/15951874/prosperity-gospel-explained-why-joel-osteen-believes-prayer-can-make-you-rich-trump
- "Amazon Denies Workers Pee in Bottles. Here Are the Pee Bottles" from Vice: https://www.vice.com/en/article/k7amyn/amazon-denies-workers-pee-in-bottles-here-are-the-pee-bottles
- Nick Hanauer in The New Republic, "Biden's Plan to Tax Rich People Like Me is the Best Way to Grow the Economy": https://newrepublic.com/article/163852/tax-rich-people-grow-economy
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