Podcast Summary: The Middle-Out President (with President Joe Biden)

Pitchfork Economics with Nick Hanauer | December 17, 2024

Main Theme & Purpose

This landmark episode features a candid conversation between Nick Hanauer, David Goldstein, and President Joe Biden, focusing on the shift from trickle-down neoliberalism to middle-out economics. President Biden reflects on his economic policies, his commitment to unions and the middle class, America’s global economic standing, and the moral and practical justifications behind his approach to governance. The episode offers rich insights into the philosophy and practical steps taken by the Biden administration to redefine who benefits from America's prosperity.

Key Discussion Points & Insights

1. Biden’s Economic Legacy: The Shift to Middle-Out Economics

• Defining the Approach:

  • Biden sees his main contribution as changing how Americans think about what makes a strong economy: "The stronger the middle class is, the better everybody is. Poor have a way up, and the wealthy still do well." (Joe Biden, 02:36)
  • He rejects trickle-down, crediting the middle class—and unions—with building America: "Wall Street didn't build this country. The middle class did. And unions built the middle class. I'll say it again, unions built the middle class." (Joe Biden, 03:26)

• Union Power & Worker Pride:

  • Biden is proud of his pro-union stance: "I know I'm labeled the most pro union president in American history. I'm proud of it." (Joe Biden, 04:06)
  • He emphasizes union apprenticeships and how union wage increases actually lift wages for all workers, contrary to common criticism.

• "Buy American" Principle:

  • Biden discusses his longstanding effort to have public investments use American products and hire American workers wherever possible: "When a president goes and spends taxpayers money, he should spend it by buying an American product... and by hiring American workers." (Joe Biden, 03:08)

• Competition & Cost of Living:

  • He details fights against corporate monopolies and "junk fees": "I’ve been a pain in the neck for the industry that does all the prescription drug stuff... We passed the prescription drug bill and we've saving over the next 10 years $160 billion in taxpayer money." (Joe Biden, 07:03)

2. America's Post-COVID Recovery & Global Economic Standing

• Comparison to Global Peers:

  • "We're doing better than any other major industrial formation in the world, period." (Joe Biden, 10:04)
  • Cites 16 million new jobs, the lowest unemployment in 50 years, and 20 million new business applications during his presidency.

• Managing Inflation and Supply Chains:

  • Biden explains that global inflation spikes post-COVID were worsened by broken supply chains and corporate profit seeking: "The pandemic really disrupted our supply chains and increased inflation." (Joe Biden, 10:34)
  • He describes U.S. efforts to re-shore manufacturing, particularly semiconductor production: “We invented those damn computer chips...and then they all went overseas. Not me. I want to make sure we build it here and export it.” (Joe Biden, 11:16)

• Infrastructure Investment:

  • Highlights the passage of a $1.3 trillion infrastructure bill: "How the hell can you be the leading nation in the world...without the best infrastructure in the world?" (Joe Biden, 12:48)

• Long-Term Vision:

  • Acknowledges that it takes time for Americans to feel the effects of major investments: "The reason people haven’t felt it yet...is that I know it's going to take time for this to happen." (Joe Biden, 15:44)

3. Building in Red States and Defeating Trickle-Down Economics

• Investing Across Political Lines:

  • Biden consciously directed investments to red states: "We made significant investments in red states...because those red states had such lousy practices and were the ultimate practitioners of trickle down." (Joe Biden, 17:00)

• Restoring Local Pride:

  • Emphasizes bringing manufacturing and economic dignity back to places left behind by plant closures: "What we're trying to do is restore some pride as well." (Joe Biden, 17:39)

4. Personal Motivation and Philosophy

• Rooted in Family Values:

  • Cites his working-class upbringing in Pennsylvania and Delaware: "A job is about a lot more than a paycheck. About your dignity, about respect, about your place in the community." (Joe Biden, 18:34)

• On Political Courage:

  • Offers advice from his early campaign days: "The biggest, most important secret for you to learn is what is worth losing over...because people reward you for that if you explain it." (Joe Biden, 23:47)

• Connection to Civil Rights and Public Service:

  • Biden recounts his start in activism and public defender work following Dr. King’s assassination: "I got involved in the civil rights movement as a kid...you look out for the other guy a little bit." (Joe Biden, 24:43, 25:49)

5. Media, Messaging, and Public Perception

• The Disconnect:

  • Biden expresses frustration that most people don't realize how much the economy has improved or the nature of his accomplishments: “Something only 5, 7% of people under the age of 25 are. Read a newspaper. We pick what we want to hear. It's a totally different deal.” (Joe Biden, 29:06)

• Impact of Media Shifts:

  • He identifies changes in journalism and media technology as central to public confusion or misinformation about government programs and progress.

Notable Quotes & Memorable Moments

• “Wall Street didn’t build this country. Great middle class built this country.” (Joe Biden, 00:18)
• “Unions built the middle class. There would be no middle class in this country were it not for the fact unions existed and were strong.” (Joe Biden, 03:26)
• “I know I'm labeled the most pro union president in American history. I'm proud of it.” (Joe Biden, 04:06)
• “When union wages increase, what happens to the rest of the wages?... it raises the salaries of everybody. Everybody.” (Joe Biden, 05:07)
• “You have 60% of the population never went to college. These are people who are hardworking folks. Well, they have the capacity to do great things.” (Joe Biden, 06:49)
• “We passed the prescription drug bill and we've saving over the next 10 years $160 billion in taxpayer money.” (Joe Biden, 07:03)
• “We’re doing better than any other major industrial formation in the world, period.” (Joe Biden, 10:04)
• “A job is about a lot more than a paycheck. About your dignity, about respect, about your place in the community. It’s about being able to look your kid in the eye and say, honey, it’s going to be okay, and mean it.” (Joe Biden, 18:34)
• “The biggest, most important secret for you to learn is what is worth losing over. What are you willing to lose over rather than change your view. And...people reward you for that if you explain it.” (Joe Biden, 23:47)
• “[The] decisions that we make in the next four, two, four, six years are going to determine what the rest of the world looks like for the next six, seven decades. And I mean that sincerely.” (Joe Biden, 27:13)

Important Segments & Timestamps

• Opening Statements & Middle-Out Economics Defined:
  00:01 – 02:36

• Union Power, Buy American, and Wage Leadership:
  02:36 – 08:42

• Business Growth, Competition, and New Business Applications:
  08:42 – 10:04

• Global Recovery, Chips Act, and Infrastructure:
  10:04 – 15:44

• Why Impacts Aren’t Always Immediately Felt:
  15:44 – 17:46

• Investing in Red States and Rejecting Trickle Down:
  17:00 – 17:46

• On Courage and Motivation in Policymaking:
  18:34 – 24:33

• Personal Reasons for Public Service:
  24:39 – 25:49

• The Role of Media & Public Awareness:
  26:51 – 29:42

• Hosts’ Reflections on Biden’s Legacy:
  29:50 – End

Closing Reflections

Hanauer and Goldstein emphasize the historic importance of having a president who puts middle-out economics at the center of his agenda and the ripple effects of Biden’s leadership, including joining striking workers on the picket line and inspiring a tangible shift away from neoliberalism. They also warn of potential retrenchment, but remain hopeful that the middle-out philosophy will endure.

“If you show me a political system that governs to ensure that the median family is thriving, I will show you a successful society.” (Nick Hanauer, 30:57)

Overall, this episode provides an accessible, heartfelt, and deeply insightful account of the philosophy, strategy, and real-world impacts of Biden’s economic presidency, directly from the president himself and his supporters in the world of economic thought.