I have previously referred to billionaire Nick Hanauer, and his clear-eyed view of what economic evidence tells us. Hanauer has, for example, explained multiple times why raising the minimum wage, not cutting taxes, creates jobs: it’s when people have enough disposable income to buy your widgets that employers hire people to make them. (When Seattle ignored the plutocrats’ warnings and raised its minimum wage, Hanauer’s position was vindicated.)
In 2023, Hanauer and a co-author wrote a book titled “Corporate Bullshit,” intended to help readers identify the “pernicious propaganda” promulgated by the wealthy. The book identified six categories of falsehoods that Hanauer says repeatedly thwart progress on issues ranging from civil rights, to wealth inequality, climate change, voting rights, and gun responsibility.
As Hanauer points out, Americans have a bad habit of giving credence to arguments made by the wealthy and powerful simply because those making the arguments are wealthy and powerful. (It always reminds me of that lyric from Fiddler on the Roof’s “If I Were A Rich Man.” “The most important men in town would come to call on me, asking questions that would cross a Rabbis eyes–and it won’t make one bit of difference if I answer right or wrong…When you’re rich they think you really know.”)
Recently, on Facebook, Hanauer shared a letter he’d sent to one of the “movers and shakers” who spoke at Davos. Since he publicly shared it, I assume I can share it as well.
Here’s his letter:
I listened closely to your remarks at Davos, and you’re right about the core problem: capitalism is losing public trust because prosperity has left too many people behind. I warned us all about this when I wrote “The Pitchforks Are Coming for Us Plutocrats” back in 2014. You’re also correct that GDP and market caps are terrible proxies for whether an economy is actually working for working people.
But here’s the thing—this isn’t a mystery anymore, and it hasn’t been for a long time.
For more than a decade now, I’ve been having conversations—often with people who run large institutions, manage serious capital, and employ thousands—about exactly what to do next.
On Pitchfork Economics and in conversations across the ecosystem, we’ve talked with people like Joseph Stiglitz, Heather Boushey, Mariana Mazzucato, Robert Reich, Todd Tucker, Elizabeth Anderson, Mark Blyth, and many others who have laid out, in plain language, what will actually fix this problem.
They all point to a similar set of solutions:
–Tax extreme wealth and income at levels that reflect their real social cost
– Rebuild antitrust enforcement and curb monopoly power
– Strengthen labor markets and worker bargaining power
– Invest aggressively in public goods that make broad-based prosperity possible
None of this is radical. In fact, it’s how the U.S. built the most prosperous middle class in history. So when you say the answer is more “conversation,” I have to strongly disagree. We’re past the conversation phase. There are many ideas on the table, from every corner of the world. The evidence is overwhelming. And the political backlash you’re worried about is already here precisely because action hasn’t followed conversation.
On behalf of the handful of us zillionaires who have benefited from this system, we don’t need more panels or better messaging. We need the courage to support policies that will redistribute power, not just wealth—and to do so even when it’s uncomfortable or expensive for people like us.
You said that in order to solve inequality, the mountain—meaning Davos—needed to come down to earth. It’s a nice image, but it doesn’t reflect reality. What really needs to happen is the mountain needs to stop extracting from everyone else.
It’s fashionable these days to bash all billionaires, and a large number of them certainly deserve that bashing. But billionaires–like all other groups of people–are not a monolithic category. Just as all Somalis aren’t guilty of fraud in Minneapolis, all Jews do not support Israel’s activities in Gaza, and (possibly) all ICE agents aren’t thugs. We lose our grasp of reality when we fail to recognize the differences within identifiable populations.
Billionaires aren’t all like Jeff Bezos and Larry Ellison. There are also people like Nick Hanauer and Abigail Disney. When the people with pitchforks come for the billionaires, as Hanauer has warned, they’ll need to be selective….
