E-Book Overview
For the past several decades, politicians and economists thought that high levels of inequality were good for the economy. But because America’s middle class is now so weak, the US economy suffers from the kinds of problems that plague less-developed countries. As Hollowed Out explains, to have strong, sustainable growth, the economy needs to work for everyone and expand from the middle out. This new thinking has the potential to supplant trickle-down economics the theory that was so wrong about inequality and our economy and shape economic policymaking for generations.
E-Book Content
Praise for Hollowed Out “When will we learn that an economy that works just for the wealthy just doesn’t work? David Madland, one of the nation’s wisest young scholars, explains with clarity and eloquence why trickle-down economics can’t keep its promise of rapid growth—and why a more just economy will provide better results for everyone. This is a truly important book that should shape our debate for many years to come.” —E. J. Dionne Jr., Senior Fellow, Brookings Institution, Professor, McCourt School of Public Policy, Georgetown University, and author of Our Divided Political Heart: The Battle for the American Idea in an Age of Discontent “David Madland marshals reams of data, economic analysis, and social science to make a deeply persuasive case for middle-class economics— not only as a means of achieving sustainable, equitable economic growth, but as the absolutely crucial foundation of American society. Hollowed Out patiently walks us through the factors leading to the recent decline in middle-class income and stability and, crucially, shows how to get the economy back on the right track.” —John Podesta, former Counselor to President Barack Obama and former Chief of Staff to President Bill Clinton “Trickle-down economics is the biggest economic lie ever told, and David Madland expertly and authoritatively shows us why. Meticulously researched and thoughtfully argued, Hollowed Out explains in plain language why growth and prosperity are always built from the middle out, not the top down. This should be required reading for economic policymakers.” —Nick Hanauer, Seattle-based entrepreneur who has helped launch more than twenty companies, including aQuantive Inc. and Amazon.com “The dose is the difference between medicine and poison in economics as in healthcare. Hollowed Out makes the case that US inequality has gone beyond supply-siders’ medicine for growth to poisoning our economy via loss of trust, political polarization, debt-driven consumer demand, and self-perpetuating aristocracy of wealth. Every member of Congress should read this before voting on the next tax cut for the wealthy.” —Richard Freeman, Professor of Economics, Harvard University “Ideas are a powerful force in politics, and David Madland develops a very big and important one. Madland shows that the hollowing out of the American middle class has deeply damaged our economy, and in order to get back on track we need to make the economy work for everyone, not just the rich. Hollowed Out provides an important road map for anyone who wants to understand what is wrong with our economy and what needs to be done to fi x it.” —Neera Tanden, President, Center for American Progress Hollowed Out The publisher gratefully acknowledges the generous support of the Anne G. Lipow Endowment Fund for Social Justice and Human Rights of the University of California Press Foundation, which was established by Stephen M. Silberstein. Hollowed Out Why the Economy Doesn’t Work without a Strong Middle Class David Madland university of california press University of California Press, one of the most distinguished university presses in the United States, enriches lives around the world by advancing scholarship in the humanities, social