Pitchfork Economics with Nick Hanauer

Latest Episodes:

How opportunity zones create windfalls for the uber-rich (with David Wessel) Dec 28, 2021

Show notes

The 2017 Tax Cuts & Jobs Act included a little-known provision establishing something called opportunity zones. The plan, which was lauded as a way to direct investments into under-developed communities in the U.S., created 8,764 tax havens that were almost immediately exploited by the wealthy to gobble up capital gains tax breaks. Pulitzer Prize-winning journalist David Wessel explains how opportunity zones came to be, who is profiting off of them, and why it’s so difficult to tweak the tax code without creating windfalls for the rich.

David Wessel is a senior fellow in Economic Studies at Brookings and director of the Hutchins Center on Fiscal and Monetary Policy. He is the author of two New York Times bestsellers: “In Fed We Trust: Ben Bernanke’s War on the Great Panic” (2009) and “Red Ink: Inside the High Stakes Politics of the Federal Budget” (2012). His most recent book is “Only the Rich Can Play: How Washington Works in the New Gilded Age” (2021). He has shared two Pulitzer Prizes, one in 1984 for a Boston Globe series on the persistence of racism in Boston and the other in 2003 for Wall Street Journal stories on corporate scandals.

Twitter: @davidmwessel

The Rich Have Found Another Way to Pay Less Tax: https://www.nytimes.com/2021/10/10/opinion/opportunity-zones-tax-loopholes.html?referringSource=articleShare

Only the Rich Can Play: https://bookshop.org/books/only-the-rich-can-play-how-washington-works-in-the-new-gilded-age/9781541757196

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

Are you in the 9.9 percent? (with Matthew Stewart) Dec 21, 2021

Show notes

In the U.S., inequality is often framed as the 99% versus the wealthiest 1%. But that’s not quite the right matchup. While the bottom 90% has done dramatically worse over the last several decades and the top 0.1% has done dramatically better, the 9.9% in between those groups still controls more than half of the wealth in the United States. Author and philosopher Matthew Stewart thinks that the 9.9% are not innocent bystanders, and he joins Nick and Goldy to discuss how this group is entrenching inequality and warping our culture.

Matthew Stewart is an author and philosopher. He is the author, among other books, of Nature’s God and The 9.9 Percent.

The 9.9 Percent: https://bookshop.org/books/the-9-9-percent-the-new-aristocracy-that-is-entrenching-inequality-and-warping-our-culture/9781982114183

The 9.9 percent is the new American aristocracy: https://www.theatlantic.com/magazine/archive/2018/06/the-birth-of-a-new-american-aristocracy/559130/

Who are the 9.9% A closer look at the math of American inequality: https://lithub.com/who-are-the-9-9-percent-a-closer-look-at-the-math-of-american-inequality/

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

Moving beyond racial liberalism (with Kyle Strickland) Dec 14, 2021

Show notes

How can we center the role of race in our economic policy and in our politics in a way that will drive real change? Kyle Strickland, the deputy director of race and democracy at the Roosevelt Institute, explains how our leaders have fallen under the sway of racial liberalism, which focuses solely on disavowing personal bigotry and overt discrimination. In order to realize true racial and economic justice, he argues we should move beyond racial liberalism and toward a greater understanding of the systemic injustices built into our political and economic systems.

Kyle Strickland is the Deputy Director of Race and Democracy at the Roosevelt Institute. He is also the Senior Legal Analyst at the Kirwan Institute for the Study of Race & Ethnicity and the Director of My Brother’s Keeper Ohio.

Twitter: @kstrickland_

A New Paradigm for Justice and Democracy: https://rooseveltinstitute.org/wp-content/uploads/2021/11/RI_A-New-Paradigm-for-Justice-and-Democracy_Report_202111-1.pdf

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

The hidden costs of banking while poor (with Mehrsa Baradaran and Cate Blackford) Dec 07, 2021

Show notes

The average family earning $25,000 a year in the U.S. spends about $2,400 on financial transactions. Whether it’s the astronomical interest rates of a payday loan or the costs that come with being unbanked, the extractive practices of the financial services industry are effectively keeping the poor in poverty. Lawyer and author Mehrsa Baradaran and economic mobility expert Cate Blackford join Nick and Steph this week to explain why banking while poor is so expensive, and what states can do to rein in the people who profit from it. This episode was originally released in February 2020.

Mehrsa Baradaran is a professor of law at UC Irvine. She writes about banking law, financial inclusion, inequality, and the racial wealth gap. Her scholarship includes the books How the Other Half Banks and The Color of Money: Black Banks and the Racial Wealth Gap.

Twitter: @MehrsaBaradaran

Cate Blackford was the Director of Outreach and Donor Development at the Bell Policy Center when we recorded this episode, but she is now the Public Policy Director at Maine People’s Alliance. She was the Co-Chair of the 2018 Proposition 111 campaign in CO to limit the interest lenders could charge on payday loans and eliminate fees from payday lending products, which passed with 75% of the vote.

Twitter: @catetiller

Further reading:

Capitol One to end overdraft penalties as CFPB takes aim at ‘exploitative junk fees’: https://www.washingtonpost.com/business/2021/12/01/capital-one-overdraft-fees/

How the Other Half Banks: https://www.hup.harvard.edu/catalog.php?isbn=9780674983960

The Color of Money: https://www.hup.harvard.edu/catalog.php?isbn=9780674237476

If the U.S. Government Treated Poor People as Well as It Treats Banks: https://www.theatlantic.com/business/archive/2015/10/if-the-us-government-treated-poor-people-as-well-as-it-treats-banks/410614/

CO’s Prop 111 explained: https://coloradosun.com/2018/10/22/proposition-111-colorado-2018-explained/

Briefed by the Bell - Predatory Economy: https://www.bellpolicy.org/2018/09/10/predatory-economy/

How Do Payday Loans Work? https://www.incharge.org/debt-relief/how-payday-loans-work/

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

Make the clean stuff cheap (with Eric Beinhocker & Doyne Farmer) Nov 30, 2021

Show notes

Until very recently, the prevailing wisdom cautioned that transitioning to a clean energy economy would be extremely expensive, and therefore only possible if undertaken slowly. New research upends that thinking—when it comes to going green, the faster we go, the cheaper it will be. University of Oxford professors Eric Beinhocker and Doyne Farmer talk with Nick about a new strategy for clean technology that could transform the climate fight.

Eric Beinhocker is a Professor of Public Policy Practice at the Blavatnik School of Government and the Executive Director of the Institute for New Economic Thinking at the University of Oxford’s Martin School. He is also a Supernumerary Fellow in Economics at Oriel College, and External Professor at the Santa Fe Institute.

Twitter: @EricBeinhocker

Doyne Farmer is Director of the Complexity Economics program at the Institute for New Economic Thinking. He is Baillie Gifford Professor in the Mathematical Institute at the University of Oxford and an External Professor at the Santa Fe Institute.

Website: http://www.doynefarmer.com/

Going big and fast on renewables could save trillions in energy costs: https://www.washingtonpost.com/business/energy/going-big-and-fast-on-renewables-would-save-trillions-in-energy-costs/

A new strategy for climate: make the clean stuff cheap - https://democracyjournal.org/arguments/a-new-strategy-for-climate-make-the-clean-stuff-cheap/

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

Why can’t we talk about homelessness? (with Josephine Ensign) Nov 23, 2021

Show notes

The number of unhoused Americans is at a historically high rate right now. This podcast is produced in Seattle, a city with the third highest homeless population in the U.S. Though many Seattleites identify as progressive, we can’t reach a consensus on how to help our most vulnerable populations—or even find agreement on the root causes of the housing crisis. Why are perspectives on homelessness, and possible solutions to it, so polarized? Josephine Ensign, a University of Washington nurse and health care provider for people experiencing homelessness, shares some of her insights from her career on the frontlines of this crisis.

Josephine Ensign is a professor in the School of Nursing and an adjunct professor in the Department of Gender, Women & Sexuality Studies at the University of Washington. Her most recent book is Skid Road: On the Frontier of Health and Homelessness in an American City.

Twitter: @josephineensign

Skid Road: https://bookshop.org/books/skid-road-on-the-frontier-of-health-and-homelessness-in-an-american-city/9781421440132

Homelessness Rises Faster Where Rent Exceeds a Third of Income: https://www.zillow.com/research/homelessness-rent-affordability-22247/

WA Department of Commerce: http://www.commerce.wa.gov/wp-content/uploads/2017/01/hau-why-homelessness-increase-2017.pdf

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

How taxpayers subsidize corporate profits (with Rana Foroohar and David Dayen) Nov 16, 2021

Show notes

Every company you can think of has benefitted from a public investment. Whether it’s direct handouts through the tax code, government research efforts, or employee reliance on programs like EITC or TANF, taxpayers are subsidizing wildly profitable companies. David Dayen, the executive editor of The American Prospect, and Financial Times associate editor Rana Foroohar join Nick and Zach to explain how we let corporate parasites get so out of control—and what we can do about it. This episode was originally recorded and released in January 2020.

Rana Foroohar is Global Business Columnist and an Associate Editor at the Financial Times. She is also CNN’s global economic analyst. She is the author of Makers and Takers: The Rise of Finance and the Fall of American Business and Don’t Be Evil: How Big Tech Betrayed Its Founding Principles and All of Us.

Twitter: @RanaForoohar

David Dayen is the executive editor of The American Prospect. He is the author of Monopolized: Life in the Age of Corporate Power and Chain of Title: How Three Ordinary Americans Uncovered Wall Street’s Great Foreclosure Fraud.

Twitter: @ddayen

Confronting the parasite economy: https://prospect.org/labor/confronting-parasite-economy/

Makers and Takers: https://www.ranaforoohar.com/makersandtakers

How to Cure Corporate America’s Selfishness: https://newrepublic.com/article/150695/cure-corporate-americas-selfishness

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

How the tax system impoverishes Black Americans (with Dorothy A. Brown) Nov 09, 2021

Show notes

We know that the tax system is set up to advantage people with money. And we know that in the U.S., people with money are disproportionately white. But what many people don’t realize is that the tax system actively advantages white families. Tax law professor Dorothy Brown explains how racial inequality is baked into tax policy in non-obvious ways, and how that affects wealth-building.

Dorothy A. Brown is professor of law at Emory University School of Law. She is a nationally recognized scholar in tax policy, race, and class and has published extensively on the racial implications of federal tax policy. She is the author of The Whiteness of Wealth: How the Tax System Impoverishes Black Americans — And How We Can Fix It.

Twitter: @DorothyABrown

The Whiteness of Wealth: https://bookshop.org/books/the-whiteness-of-wealth-how-the-tax-system-impoverishes-black-americans-and-how-we-can-fix-it/9780525577324

Black families pay significantly higher property taxes than white families, new analysis shows: https://www.washingtonpost.com/business/2020/07/02/black-property-tax/

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

The free market economics of synthetic opioids (with Sam Quinones) Nov 02, 2021

Show notes

The opioid crisis in the United States is a textbook example of free market economics. The powerful lie, manipulate, and skirt regulations to make buckets of money, while innocent people suffer. Journalist Sam Quinones joins Goldy and Paul to unpack the economics behind the opioid crisis, and the new threat of synthetic opioids like fentanyl.

Sam Quinones is a journalist best known for his reporting in Mexico and on Mexicans in the United States. He is the author of the award-winning Dreamland: The True Tale of America’s Opiate Epidemic. His new book, The Least of Us: True Tales of America and Hope in the Time of Fentanyl and Meth, is out today.

Twitter: @samquinones7

The Least of Us: https://bookshop.org/books/the-least-of-us-true-tales-of-america-and-hope-in-the-time-of-fentanyl-and-meth/9781635574357

What did the Sacklers know? https://newrepublic.com/article/162148/sacklers-know-patrick-radden-keefe-purdue-opioid-crisis-review

The 'Secret History' Of The Sackler Family & The Opioid Crisis: https://www.npr.org/2021/04/14/987195464/the-secret-history-of-the-sackler-family-the-opioid-crisis

State-Level Economic Costs of Opioid Use Disorder and Fatal Opioid Overdose: https://www.cdc.gov/mmwr/volumes/70/wr/mm7015a1.htm

Massive Costs of the US Opioid Epidemic in Lives and Dollars: https://jamanetwork.com/journals/jama/article-abstract/2780313

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer

How to stand up for voting rights (with Andrea Hailey) Oct 26, 2021

Show notes

Behind every aspect of the voting system that makes it harder to vote, there’s a policy that made it that way. Andrea Hailey, the CEO of Vote.org, joins Nick and Goldy to explain how voter suppression happens, and what reforms would help ensure a truly inclusive democracy.

Andrea Hailey is the CEO of Vote.org, the nation’s largest nonpartisan digital voter engagement organization.

Twitter: @AndreaEHailey

Vote.org: https://www.vote.org/

Website: http://pitchforkeconomics.com/

Twitter: @PitchforkEcon

Instagram: @pitchforkeconomics

Nick’s twitter: @NickHanauer