Exploring the evolution of middle-out economics from a new theory to mainstream practice, with insights from economists, researchers, and former officials. Discussing the impact of middle-out economics on economic growth, antitrust enforcement, public satisfaction, infrastructure investments, workers' rights, and advocating for a more equitable economic approach.
Middle Out Economics prioritizes investing in the middle class for overall economic prosperity.
Democracy Journal advocates for public investment, worker welfare, and fair competition under middle-out economics.
Legislative efforts like the American Rescue Plan focus on infrastructure, workers' rights, and shared economic growth.
Deep dives
Middle Out Economics as a Solution for Rising Inequality
Middle Out Economics proposes building the economy from the bottom up and middle out, rather than top-down approaches, as a means to address the increasing wealth gap in society. This economic theory suggests that a thriving middle class is essential for overall economic prosperity, benefiting not just middle-class individuals but the entire economy. By investing in the middle and working classes, proponents of this approach aim to create a robust middle class, shifting the economic paradigm towards public investment and worker welfare.
Democracy Journal's Advocacy for Middle Out Economics
Democracy Journal's long-standing advocacy for middle-out economics dates back to the coined term by Nick Hanauer and Eric Liu in 2011. This economic theory advocates for investing in the middle and working classes to achieve a more equitable and prosperous economy. The journal's editor, Michael Tamaski, highlights a dedicated issue discussing the middle-out moment, emphasizing the need to prioritize public investment, promotion of worker welfare, and competition over free market neoliberalism.
Advancing Middle Out Economics Through Legislative Actions
Legislative efforts such as the American Rescue Plan and the bipartisan infrastructure law exemplify concrete steps taken to implement middle-out economics. These bills focus on critical aspects like investing in infrastructure, promoting fair competition, safeguarding workers' rights, and boosting unionization. By combining public investments, labor rights protections, and regulatory measures, policymakers aim to foster shared economic growth and address income inequality.
Evaluation and Impact of Government Interventions
Assessing the impact of government interventions like the American Rescue Plan reveals significant successes in stimulating the economy and supporting lower-income families. By providing stimulus checks, tax cuts, and financial assistance to state and local governments, these interventions have led to robust economic growth, job creation, and reduced unemployment rates. While facing criticisms regarding inflation, the overall benefits of these policies in empowering lower-income individuals and driving economic recovery outweigh the challenges.
Promoting Industrial Policy and Trade for Economic and Democratic Advancements
The Biden administration's focus on industrial policy and public investments emerges as a crucial driver for economic growth, job creation, and climate action. By emphasizing the connection between good economics, job opportunities, and democracy, policymakers aim to strengthen domestic manufacturing, foster clean energy transitions, and combat authoritarianism through economic policies. These efforts seek to enhance economic outcomes, promote democracy, and solidify U.S. leadership in global trade and industry innovation.
Eleven years ago, Democracy Journal released a special issue on "The Middle Out Moment" that explored the implications of what was then the brand-new theory of middle-out economics. The moment may not have fully arrived back in 2013, but no doubt it's here now. So this week, Democracy Journal is publishing a follow-up edition called "The Middle Out Moment Part Two," marking the fact that what was once a new idea has now gone mainstream. In this episode, we'll hear from several of the economists, researchers, and former administration officials who contributed to the special issue as they explore how middle-out economics has been put into practice — and discuss the work that lies ahead as middle-out economics becomes the new mainstream.
Guests include: Felicia Wong, Bharat Ramamurti, Tara McGuinness, Sandeep Vaheesan, Todd Tucker, Ronnie Chatterji, Neale Mahoney, and Heidi Shierholz
