Pitchfork Economics with Nick Hanauer Breaking Up Big Econ (with David Deming)
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Mar 4, 2025 
David Deming, a Harvard economist and author, sheds light on the concentrated power held by elite universities in shaping economic narratives. He argues that this 'Big Econ' monopolizes perspectives, stifling competition and innovation. The discussion critiques traditional economic theories, particularly regarding income inequality and minimum wage policies. Deming emphasizes the need for diverse voices in economics to address real-world challenges and promote effective societal change. His insights call for a reevaluation of how economics is taught and practiced.
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Interpretive Economics
- Economics is more interpretive than empirical, like humanities.
- This subjectivity contributes to the concentration of power in a few elite universities.
Theory vs. Reality
- Economic theory often misaligns with real-world evidence.
- Theories should be tested against reality, not just be internally consistent or elegant.
Trillion-Dollar Transfer
- A $79 trillion income transfer occurred from the bottom 90% to the top 1% since 1975.
- This was due to rising inequality influenced by flawed economic theories.