Pitchfork Economics with Nick Hanauer Inflation: A Guide for Users and Losers (with Mark Blyth)
Sep 9, 2025
Mark Blyth, a political economist and professor at Brown University, dives into the intricacies of inflation and its real-world implications. He critiques traditional economic theories and examines how post-pandemic price hikes affect low-income households disproportionately. Blyth also distinguishes between 'good' and 'bad' inflation, explores the impact of corporate greed on prices, and discusses the need for innovative central bank strategies. His insights challenge misconceptions and provide a roadmap for more equitable economic policies.
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Inflation Is A General Consumption Tax
- Inflation is a rise in the general level of all prices, not just specific items like housing or stocks.
- Mark Blyth argues inflation hits low-income consumers hardest because it functions like a consumption tax.
Four Competing Inflation Narratives
- Four narratives explained the post‑2021 inflation surge: excess fiscal spending, wage‑price spirals, supply shocks, and corporate price‑gouging.
- Blyth and coauthor conclude supply shocks and corporate margin expansion best explain recent inflation.
The 1970s Lesson Is Incomplete
- The 1970s story taught central banks to use interest rates as the primary anti‑inflation tool and become independent.
- Blyth says that lesson is incomplete because it ignores supply shocks and other structural forces.
