Podcast Summary: Pitchfork Economics with Nick Hanauer

Episode Title: BONUS: Why Howard Schultz would make a terrible president
Release Date: January 31, 2019
Host: Civic Ventures
Featured Speaker: Nick Hanauer

Overview

This bonus episode debates Howard Schultz’s floated presidential bid, with host Nick Hanauer—a Seattle billionaire and self-described "class-traitor"—explaining why he believes Schultz, and business leaders generally, make poor political candidates. The conversation passionately challenges the concept of "running the country like a business" and critiques centrist, trickle-down economic policies.

Key Discussion Points & Insights

1. Howard Schultz’s Presidential Ambitions

[00:04–00:16]

• The episode opens with Howard Schultz, ex-Starbucks CEO, considering a centrist independent run for president, which sets off a wave of debate among Democrats fearing it would split the vote.

2. Critique of Schultz’s Economic Views

[00:33–01:23]

• Nick Hanauer expresses "enormous respect" for Schultz as a retail businessman but firmly rejects his economic ideology:
  • Schultz is labeled a "straight up trickle downer" who believes:
    • Tax cuts for the rich create growth.
    • Investments in the middle class are unaffordable.
    • Raising wages hurts jobs.
    • The U.S. "can’t afford healthcare, can’t afford education" ([01:15]–[01:23]).
  • Hanauer sees this as running on “a platform of telling us we can’t have nice things” ([01:15], Host).

Notable Quote:

“He is, as far as I can tell, a straight up trickle downer who believes that tax cuts for rich people create growth and investments in the middle class will bankrupt our great country.”
— Nick Hanauer [00:41]

3. Why Business Leaders Make Poor Political Leaders

[01:27–03:55]

• Hanauer outlines his fundamental objection to the idea that business leaders make good political leaders:
  • In business, all employees are hired to agree and take direction—"everyone who works for the business, by definition, has to do what you say" ([01:32]).
  • This is profoundly different from politics, where:
    • “Almost no one agrees with you… it may be a majority or even supermajority of people who actively are trying to subvert you.” ([02:37])
    • The business temperament often melts down when “no one will do what they say”—pointing to President Trump as a canonical example ([02:47]).

Notable Quote:

“The country is not a business. Claiming that you should run the country like a business would be like claiming you should fly the airplane like a unicycle—you will crash.”
— Nick Hanauer [03:40]

4. The Myth of “Centrism” and Middle-of-the-Road Leadership

[03:45–04:34]

• Hanauer is critical of Schultz-style centrism in the Democratic party, calling it “straight up trickle down economics, but without the racism.”
• Urges the need for a different kind of leadership, not more neoliberal orthodoxy packaged as moderation.

5. On Nick Hanauer Running for Office

[04:34–05:07]

• The host jokingly proposes Hanauer for office.
• Hanauer declines decisively, reinforcing that business experience is "not a qualification" for political leadership and acknowledging his work is best done pushing policy ideas forward from the outside.

Notable Quote:

"Howard Schultz is a great example of why people like me should not run."
— Nick Hanauer [04:47]

Memorable Quotes

• “He is, as far as I can tell, a straight up trickle downer…” — Nick Hanauer [00:41]
• “He’s basically running on a platform of telling us we can’t have nice things.” — Host [01:15]
• “The country is not a business... claiming you should run the country like a business would be like claiming you should fly the airplane like a unicycle — you will crash.” — Nick Hanauer [03:40]
• "Howard Schultz is a great example of why people like me should not run." — Nick Hanauer [04:47]

Important Timestamps

• 00:04–00:16 — Introduction: Schultz’s presidential rumors
• 00:33–01:23 — Hanauer critiques Schultz’s trickle-down philosophy
• 01:27–03:55 — Problems with business leaders in politics
• 03:40 — Hanauer’s analogy: Plane vs. unicycle
• 04:34–05:07 — Hanauer explains why he won’t run for office

Tone & Takeaways

The conversation is sharp, candid, and witty—full of skepticism toward centrist billionaire candidates and their economic orthodoxy. Hanauer’s tone is irreverent but rooted in his experience in both business and civic engagement, challenging prevailing myths about what kinds of leaders America needs.