Podcast Summary: The Majority Report with Sam Seder
Episode: 3541 – The Affordability Argument w/ David Dayen
Date: December 9, 2025
Guest: David Dayen (Executive Editor, The American Prospect; co-host, Organized Money podcast)
Main Theme
In this episode, Sam Seder and his co-hosts welcome David Dayen to discuss the "Affordability Agenda"—a deep dive into the structural factors driving America's cost-of-living crisis. The conversation explores why everyday life feels increasingly unaffordable, the failures of regulation across key sectors, the impact of inequality, and the real drivers behind price hikes, all within the context of both short-term headlines and long-term economic shifts. The latter part of the interview shifts to media consolidation, with a detailed discussion about the impending Netflix–Warner Brothers merger and its implications for consumers and creators.
Key Discussion Points & Insights
Introduction & Topical News Roundup
[02:12–05:16]
- Sam and Emma run through pressing political news: ACA subsidies, Supreme Court oral arguments on presidential power, Trump's policy moves, Gaza humanitarian concerns, and COVID vaccine data.
- Quote: “The largest COVID-19 study ever shows vaccine lowers death from COVID by 74%... no increase in four-year mortality.” (Sam Seder, [05:07])
- Sets the socio-political backdrop for the affordability conversation.
The “Affordability” Issue at The American Prospect
[26:28–27:56]
- David Dayen introduces The Prospect's latest print issue focused on affordability.
- Critique that "affordability" has become a meaningless buzzword, used to justify any agenda.
- Quote: “Affordability now has become a word that means nothing… we wanted to look at the long-term drivers of affordability… unless you’re looking at the right part of the problem.” (Dayen, [26:49])
Energy, Utilities, and Regulatory Capture
[27:58–36:27]
- Discussion on how electricity prices exemplify structural regulatory capture.
- State public utility commissions (PUCs) are meant to protect consumers but are dominated by industry.
- Investor-owned utilities get far higher rate increases than public ones.
- Quote: “This system isn’t working… this system of, ‘okay, a private company can own the utility but we’re going to keep it in check,’ isn’t working.” (Dayen, [32:03])
- Sam: Why not take utilities public if monopoly power is inevitable?
- Dayen: Public options (e.g., Tennessee Valley Authority) offer effective models, and more municipalities are pushing for re-municipalization.
Regulatory Failure Across Sectors
[36:27–40:53]
- Similar regulatory dysfunctions seen in healthcare and higher education.
- Examples: CMS doesn’t control quality or costs; Dept. of Education doesn’t leverage student loan tools to force college affordability.
- Dayen highlights the infiltration of private equity into utilities as evidence of weak regulation.
- Quote: “Private equity doesn’t go into these things thinking, ‘oh, these must be low-margin businesses that are tightly regulated’… They know they can dominate this regulatory system.” (Dayen, [39:28])
Other Structural Drivers of Unaffordability
[41:00–49:11]
- Middlemen: Proliferation of intermediaries (like pharmacy benefit managers in healthcare) add costs without value.
- Wage Stagnation: Wages as a share of national income have dropped sharply.
- If wages had kept pace, American workers would have $79 trillion more over 50 years.
- Quote: “If wages stayed at the level they were at 50 years ago, the American worker would have $79 trillion more… $3.9 trillion just in the last year studied.” (Dayen, [41:02])
- Rising inequality is fueling demand for “premiumization”—products priced for and marketed to the wealthy, narrowing options and driving even basics out of reach for many.
- Social media, FOMO, and easy-access credit feed a cycle of overspending and price escalation.
How Inequality and Technology Drive Prices Higher
[44:00–51:04]
- The rich now account for a disproportionate share of spending, pressuring companies to target high-end consumers—at the expense of affordability for everyone else.
- Retailers and suppliers, using fine-grained marketing and AI, manipulate pricing to maximize profit, sometimes personalizing prices.
- Example: Instacart users buying the same basket of groceries at the same time, from the same location, saw 20% price differences.
- Quote: “Personal characteristics, or even just testing, [lead to] millions of little changes in prices… very, very sophisticated. They are not doing it so they can offer discounts… They are doing it so they can maximize and exploit the amount of earnings they get off every single good.” (Dayen, [49:52])
The “Tyranny of Aggregates” in Economic Data
[51:39–54:57]
- Traditional economic metrics (e.g., GDP, Black Friday sales) mask the real economic pain experienced by the majority.
- Aggregate stats are increasingly distorted by the outsize consumption of the top 10 percent.
- Quote: “If there are three people in a room and two of them don’t have any money and the other is Bill Gates, the aggregate of that room is very well off, but it neglects the individual circumstances.” (Dayen, [51:43])
- Sam asks whether there are efforts to recalculate economic indicators to reality-check this disconnect; Dayen says the data is there, but it’s rarely framed or presented properly.
Political Implications and Need for New Metrics
[54:57–56:39]
- Discussion of how this disconnect has repeatedly harmed incumbent politicians and led to "ping ponging" between parties.
- Dayen: For a “durable majority,” politicians need to speak to the actual economic experiences and needs of the public.
Climate Change and Long-Term Affordability
[57:19–59:12]
- A whole article in the issue focuses on climate change as an unaffordability driver.
- Crop failures, extreme weather, shifting pathogen patterns increase grocery and living costs.
- Such factors are rarely discussed as cost-of-living issues, though they are pivotal.
Notable Quotes
-
David Dayen on Regulatory Capture:
“Private equity doesn’t go into these things thinking, ‘oh, these must be low-margin businesses tightly regulated by the government’. They’re going in because they know they can dominate this regulatory system.” ([39:28]) -
On Wage Inequality:
“Wages as a share of national income have gone significantly down over the last 50 years... $79 trillion more if they’d stayed at the same level.” ([41:00]) -
On Premiumization and FOMO:
“We have the FOMO economy… you can buy that in several installments… you can get the things you deserve right now… this access to cheap credit, premiumization and this FOMO economy ends up raising prices over time.” (Dayen, [47:10]) -
On “Tyranny of Aggregates”:
“If there are three people in a room and two of them don’t have any money and the other is Bill Gates, the aggregate of that room is very well off, but it neglects individual circumstance.” (Dayen, [51:43])
Discussion: Netflix–Warner Brothers Merger & Media Consolidation
[59:59–81:00+]
- The second half pivots to the brewing Netflix–Warner Brothers–Paramount mega-merger.
- Concerns span both market power (price, content restriction, reduction in movies) and power over talent.
- Mergers reduce the number of buyers for creative work, driving down pay and output.
- The merger is likely illegal under antitrust law, as recent precedent (Penguin Random House–Simon & Schuster case) showed.
- State Attorneys General, led by high-profile figures like California’s Rob Bonta, could (and should) challenge such mergers even if the federal government is friendly to them.
- Quote: “Netflix’s main competitor gets bought; why would I go with HBO Max as a producer if it might not exist in two years?” (Dayen, [76:23])
- Sam and David agree the deeper problem is the end of legal separation between production and distribution (e.g., loss of Paramount Decrees).
Notable, Memorable, or Humorous Moments
- Sam’s recap of the “FOMO economy”: “[You’re told that] you deserve the finer things in life, and ultimately this ends up raising prices for all of us.” ([46:14])
- Dayen’s explanation for why "aggregate statistics" are misleading:
Detailed, clear, and relatable—making the point with the Bill Gates metaphor. - Discussion about streaming wars/behemoths:
Lively banter over how the collapse of old models led to a feeding frenzy, with Sam recalling the demise of Peacock’s digital venture.
Timestamps for Key Segments
- [26:28] – Intro to “Affordability” issue (David Dayen)
- [27:58] – Regulatory capture in utilities & energy
- [36:39] – Other sectors plagued by regulatory failure
- [41:00] – Wage stagnation and inequality as affordability drivers
- [44:00] – Inequality, premiumization, FOMO, and technology
- [49:51] – Dynamic pricing and its impact
- [51:39] – Tyranny of aggregates: How economic stats mislead
- [54:57] – Political fallout from economic mismeasurement
- [57:19] – Climate as a cost-of-living driver
- [59:59] – Discussion on Netflix/Warner Bros/Paramount merger
- [62:57] – Effects of merger on consumers and talent
- [69:36] – Antitrust, state action, and the prospects of a legal challenge
Conclusion & Where to Find More
- David Dayen: “We don’t have paywalls. We think the value that we produce needs to be accessible… If you believe that information should be free, you can help support us.” ([81:21])
- Find the issue: prospect.org/subscribe
This conversation delivers a comprehensive, accessible tour of the real reasons life is getting harder for most Americans—linking healthcare, utilities, education, inequality, regulatory failure, and market manipulation into one narrative—while warning of the dangers of unchecked consolidation in media and beyond.
For those who want to go deeper, check out The American Prospect’s special issue on affordability, and stay tuned for more from David Dayen and the Organized Money podcast.