Biden’s break from neoliberalism to invest in the middle class could create ‘the mother of all economic booms’ – an economic commentator explains why

  • Date: 08-May-2021
  • Source: Business Insider
  • Sector:Economy
  • Country:Middle East
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Biden’s break from neoliberalism to invest in the middle class could create ‘the mother of all economic booms’ – an economic commentator explains why

On this week's episode of "Pitchfork Economics," Nick Hanauer and David Goldstein talk with Anusar Farooqui, who writes probing analytic essays about economic policy on Substack under the pseudonym Policy Tensor. 

Farooqui researches and thinks deeply about some of the most complex systems shaping our world today, and he's not afraid to take big swings on bold predictions. One such prediction in a recent essay, "The Making of the Mother of All Economic Booms," caught Hanauer's attention

In the piece, Hanauer says, Farooqui "argues that the Biden administration is making a really profound break with the last 45 years of neoliberalism, and that that break is going to create probably the biggest economic boom in collective memory, probably since the '60s." 

If Farooqui is right, the consequences of that boom would be world-changing. Hanauer explained that it would "absolutely create the kind of broad-based growth and benefits that should both transform the economy and also potentially transform politics, which is an even more important achievement."

The pandemic's economic impact

Farooqui says that it's now common knowledge that we've seen a slowdown in growth and an increase in income inequality in the decades since the broad global adoption of trickle-down economics as the dominant economic theory. 

"What