Podcast Summary: Pitchfork Economics with Nick Hanauer

Episode: Revisiting the Rise and Fall of the Neoliberal Order (with Gary Gerstle)

Date: January 20, 2026
Host: Nick Hanauer, with Goldie and producer Freddie
Guest: Gary Gerstle, historian and author of The Rise and Fall of the Neoliberal Order

Overview

This episode of Pitchfork Economics revisits the “rise and fall” of the neoliberal order, featuring historian Gary Gerstle. The conversation provides a sweeping historical perspective on how neoliberalism became the dominant economic and political paradigm, why it fractured, and what might come next. Gerstle explores the interplay between cultural and economic currents, the political shocks that broke the neoliberal consensus, and the uncertain transition toward a new order—possibly that of “middle-out” economics.

Key Discussion Points & Insights

What is Neoliberalism?

• Gary Gerstle’s Definition:
  Neoliberalism is an ideology that calls for freeing capitalism from virtually all constraints, advocating for deregulation and global free movement of goods, capital, people, and information (06:26).
• Global Project:
  From the start, neoliberalism had global ambition, not just domestic reform—a project only fully realized after the fall of the Soviet Union (07:45).
• Emancipatory Appeal:
  Neoliberalism promised not just economic growth, but the individual freedom to flourish—a seductive vision for both left and right (10:46).

Cultural Roots and Economic Freedom

• Connection to the New Left:
  Gerstle draws parallels between the countercultural demands for freedom in the 1960s–70s and the embrace of economic freedom in neoliberalism (12:32–15:49).

  • Quote (Gary Gerstle, 12:32):
    "I am suggesting this...One of the signature mottos of the 1964 Free Speech Movement at Berkeley was, 'I will not be folded, spindled or mutilated.' ...IBM was the enemy. It embodied massive machines, massive centralization. ...This dream of individuality and emancipation was very profound—bound up with the creators of the IT revolution and the personal computer who began on the left."

• Pop Culture Manifestations:
  References to Apple’s 1984 ad, the Whole Earth Catalog, and Steve Jobs—once hippie radicals, later tech icons—illustrate the ambiguous legacy of individualism (15:32–16:02).

Historical Shocks and the Neoliberal Ascent

• 1970s Crises:
  Economic shocks—foreign competition, oil shocks, and the collapse of Keynesianism—opened space for neoliberal ideas (17:22–22:43).
• Political Orders:
  Gerstle’s theory: Once-latent ideas flourish in moments of crisis, as orthodoxy fractures.
• Fall of the Soviet Union:
  The USSR’s collapse removed ideological competition and cemented neoliberal global dominance (22:43–25:21).

The Fracturing of Neoliberalism

• Turning Point—2016:
  Populist challenges from Trump (right) and Sanders (left) mark the rupture; both opposed free trade, once a centrist bipartisan consensus (25:46).
  • Quote (Gary Gerstle, 25:46):
    "2016 is a moment of real change in the United States...Trump on the right and Bernie Sanders on the left...it's a one, two combo that sort of explodes the neoliberal synthesis."
• Biden Era Policies:
  The Biden administration undertook major departures (industrial policy, green investment, reshoring), but most Americans remain unaware or unaffected in the short-term (28:31–30:51).

Why Don’t People Notice Paradigm Shifts?

• Disconnect with Policy Impact:
  The hosts and Gerstle discuss the gap between sweeping policy changes and everyday experience—benefits (like the child tax credit) are easily forgotten if removed (30:19–31:26).

The Future: “Rogue” Neoliberalism vs. Right-Wing Populism

• Trump Redux and GOP Schism:
  The emerging fight within the Republican Party: Musk-style tech neoliberalism vs. a new ‘Main Street’ populism (32:15–35:48).
  • Notable figures: J.D. Vance, Josh Hawley (potential policy bridges with Democrats), Orin Cass, Julius Krein.
• Biden’s Legacy:
  Republican representatives benefit from green investments placed in red districts, potentially complicating any reversal.

The “Benevolent Dictator” Thought Experiment

• Gary Gerstle’s Prescription:
  Double green energy efforts; expand and deepen policies started under Sanders-Biden alliance (35:59).
  • Emphasizes the need for patience and long-term planning, drawing parallels to the long neoliberal “march through the wilderness” (36:06).

Democracy at Risk

• Authoritarian Drift as Neoliberal Legacy:
  Neoliberalism’s failures to deliver for ordinary people are linked to rising authoritarianism globally (38:22–39:08).
  • Quote (Nick Hanauer, 38:22):
    "I think the answer is neoliberalism. Because for 50 years democratic governments have not delivered the goods to most citizens."
  • Quote (Goldie, 38:51):
    "Neoliberalism is implicitly elitist. They think the wealthy should be in charge. And that, I mean, that is clearly written into the core documents."
• Why Does the Right Benefit?
  Left-populist revolts (e.g., Occupy, Sanders) have proven more fleeting compared to the durable institutional power gained by the right (39:08–40:25).

Long March Ahead

• Historical Perspective:
  Major transitions—from the ancien régime to democracy, from Keynesianism to neoliberalism—are slow and fraught (40:25–41:01).
• Personal Motivation:
  Gerstle is driven by a desire to safeguard democracy and continues the work out of both passion and responsibility (41:06).

Notable Quotes & Moments

• On Neoliberalism’s Core (Gary Gerstle, 06:26):
  "Neoliberalism is an ideology that calls for freeing capitalism from virtually all constraints. Free the animal spirits of capitalism..."

• On the Left’s Role in Economic Freedom (Gary Gerstle, 12:32):
  "I am suggesting this...This dream of individuality and emancipation was very profound—bound up with the creators of the IT revolution..."

• On the Roots of Authoritarianism (Nick Hanauer, 38:22):
  "Because for 50 years democratic governments have not delivered the goods to most citizens."

• On the Challenge for Left Populism (Gary Gerstle, 39:08):
  "I would say the neoliberal order is over...But the institutions of neoliberalism...are still very powerful and influential and controlling...Why are the populist revolts of the left more evanescent, less successful than those on the right?"

Important Timestamps

• [06:26] – Gerstle defines neoliberalism and its promises.
• [12:32–15:49] – Cultural underpinnings: From the New Left to Silicon Valley and Apple’s 1984.
• [17:22–22:43] – Historical shocks that enabled neoliberalism’s rise.
• [25:46] – 2016: The bipartisan break with neoliberal orthodoxy.
• [28:31–30:51] – Why Biden-era policies have low visibility/impact.
• [32:15–35:48] – Tensions within the GOP: Tech neoliberals vs. populist conservatives.
• [35:59] – Gerstle’s “benevolent dictator” answer and call for patience in movement building.
• [38:22–40:25] – How neoliberal failure feeds authoritarianism and the right’s resilience.
• [41:06] – Gerstle’s motivation for his work: defending democracy and understanding history.

Closing Thoughts

The episode closes with the team reflecting on the uncertain future. Will “middle-out” economics replace neoliberalism? Will right-wing populism and entrenched neoliberalism prevail? Hanauer and Goldie express skepticism about a rapid or easy transition. They echo Milton Friedman’s warning: when crisis hits, only ideas “lying around” can fill the void—making it urgent to continue pushing and refining progressive economic thought in time for the moment when real change is possible.

Recommended Reading and Further Resources:

• Gary Gerstle, The Rise and Fall of the Neoliberal Order (link in show notes)
• Pitchfork Economics website