Pitchfork Economics with Nick Hanauer

The Rise and Fall of the Neoliberal Order (with Gary Gerstle)

Jan 14, 2025

Gary Gerstle, a historian and author specializing in American political and economic history, shares his insights into the rise and decline of neoliberalism. He explores how its roots intertwine with cultural movements of the 1960s and 70s, and how recent political shifts challenge its principles. Gerstle discusses the rivalry between the U.S. and Soviet economies, the elitist tendencies of neoliberalism on democracy, and the potential for a more equitable 'middle-out' economic framework amid today's crises.

45:34

Episode guests

Gary Gerstle

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Episode notes

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Quick takeaways

The failure of trickle-down economics has led to growing inequality, prompting a shift towards a middle-out economic framework for equitable growth.

Neoliberalism's rise was propelled by the economic crises of the 1970s, but its enduring institutions face challenges from emerging populist movements.

Deep dives

The Failures of Trickle-Down Economics

Decades of trickle-down economics have failed to deliver the promised growth and equality, leading to rising inequality and political instability. This economic theory suggests that benefits provided to the wealthy would eventually trickle down to the rest of society, but the reality has shown a widening gap between the rich and the poor. The failure of this model is evident in the current economic landscape, where many citizens feel left behind while a small elite continues to amass wealth. This disillusionment calls for a new approach to economics that prioritizes the middle class as a driver of growth.

Intro

6min

Neoliberalism Unveiled

17min

The U.S. and Soviet Economic Competition: A Historical Perspective

3min

Shifts in Political Economy Post-2016

13min

Neoliberalism and the Crisis of Democracy

6min

Economic Policies Amidst Crisis: The Cycle of Neoliberalism

2min

This week, Nick and Goldy sit down with historian Gary Gerstle, author of The Rise and Fall of the Neoliberal Order, for an in-depth exploration of neoliberalism—its origins, dominance, and decline. Their conversation examines the shifting political landscape shaped by recent presidential administrations, including the Biden administration’s efforts to promote a more equitable “middle-out” economic framework. With a focus on historical context and the enduring power of neoliberal institutions, this episode offers a compelling analysis of the pathways to a new economic order and the critical role of innovative thinking in navigating today’s economic challenges.

Gary Gerstle is an author, historian, and scholar of American political and economic history. He is the Paul Mellon Professor of American History Emeritus at the University of Cambridge and a Professor Emeritus of History at Vanderbilt University.

Social Media:

@glgerstle