Pitchfork Economics with Nick Hanauer

Revisiting the history of Middle-Out Economics (with Michael Tomasky)

Dec 5, 2023

Journalist Michael Tomasky joins the show to discuss the origins of middle-out economics, its contrast with trickle-down economics, and the importance of inclusivity in the economy. They explore the power of storytelling in shaping public perception, the lack of economic literacy in journalism, and the flaws of neoclassical economic theory. They also dive into the theory of middle-out economics, which prioritizes including more people and leveraging their knowledge as the main economic resource.

45:35

Episode guests

Michael Tomasky

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Episode notes

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Quick takeaways

Middle-out economics emphasizes that inclusion of more people in the economy leads to increased productivity, consumption, and entrepreneurialism, challenging the prevailing trickle-down economic narrative.

The book 'The Middle Out' by Michael Tymaski provides a historical exposition of economic paradigms and highlights efforts to challenge neoliberal economic thinking, presenting a narrative grounded in economic cause and effect.

Deep dives

Middle-out economics prioritizes the inclusion of more people in the economy for faster and more prosperous growth.

Middle-out economics emphasizes that the economy grows from the middle-out, as including more people in the economy leads to increased productivity, consumption, and entrepreneurialism. It rejects the notion that economic growth is solely driven by capital and highlights that the economy is ultimately about people. As such, middle-out economics challenges the prevailing trickle-down economic narrative and offers an affirmative alternative that centers around the inclusion of the vast majority of people in the economy.

Introduction

2min

Origins of Middle-Out Economics

24min

Lack of Democratic Accountability and Middle Out Economics

5min

The Lack of Economic Literacy in Journalism

10min

The Economics behind Middle Out Economics

3min

The Power and Theory of Middle-Out Economics

2min

We’ve lived in the shadow of trickle-down economics for over 40 years. During that time, our leaders unquestioningly embraced economic policies that prioritize the wealthiest and most powerful, with the idea that their wealth will eventually “trickle down” to everyone else.Of course, that wealth never has trickled down. Thankfully, our economic understanding has finally started to shift. This has been a landmark year in passing middle-out economic policies that prioritize the vast majority of working Americans over the wealthy few. In a future episode we’ll be discussing the middle-out research and policies that are making a real difference in people's lives, thereby changing the way we think about economic cause and effect. But before we look ahead to the glorious middle-out future, it’s important to revisit the history of middle-out economics via a conversation with journalist Michael Tomasky, author of a recent book detailing the rise of progressive economics in the United States.

This episode originally aired on October 18, 2022

Michael Tomasky is a journalist and author. He’s top editor of The New Republic. He’s editor of Democracy: A Journal of Ideas, as well as a contributing opinion writer for The New York Times.

Twitter: @mtomasky

The Middle Out https://www.penguinrandomhouse.com/books/671443/the-middle-out-by-michael-tomasky

Website: http://pitchforkeconomics.com

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer