alittleecon

A couple of weeks ago, Politico Magazine published an article by billionaire Nick Hanauer, who – amongst other things – was one of the founders of Amazon. In it he argues that inequality has risen to such an extent that he thinks serious social unrest is inevitable unless something is done to address it. He is advancing ideas he has coined as “middle-out” economics as a rebuttal to the “trickle-down” variety. His approach is more pragmatic than ideological I think, a kind of self-preservation strategy for the top 0.1% if you like, but there’s little doubt what he is proposing would improve things for the great majority of people (while keeping the economic system fundamentally in tact). He argues the fundamental law of capitalism must be:

“If workers have more money, businesses have more customers. Which makes middle-class consumers, not rich businesspeople like us, the true job creators. Which means…

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