Pitchfork Economics with Nick Hanauer

Food labor expert Saru Jayaraman joined us earlier this month to expose the lie of marginal productivity, and to reveal how it’s used to take advantage of workers. For the sake of time, we cut a fascinating tangent on the minimum wage and the restaurant industry from that episode, but it’s so insightful we just had to share it with you. Catch it here, with Saru and Goldy’s full conversation. Saru Jayaraman is the Co-Founder and President of the Restaurant Opportunities Centers United (ROC United) and Director of the Food Labor Research Center at the University of California, Berkeley. Saru authored ‘Behind the Kitchen Door’, a national bestseller, and her most recent book is ‘Forked: A New Standard for American Dining.’ Twitter: @SaruJayaramanSaru Jayaraman: How Restaurant Workers Are Inheriting a Legacy of Slavery in the U.S.: https://bioneers.org/saru-jayaraman-restaurant-workers-inheriting-legacy-slavery-u-s-ztvz1712/

In an effort to rethink the conversation around poverty, author Chris Arnade’s new book, ‘Dignity: Seeking Respect in Back Row America’, pushes aside decades of academic detachment, instead encouraging those who have been left out of prosperity to describe their own experiences. This week, Chris joins Goldy for a wide-ranging conversation about poverty, addiction, and inequality. Chris Arnade is a writer and photographer covering addiction and poverty in America. His work has appeared in The New York Times, The Atlantic, The Guardian, and the Washington Post, among many others. Twitter: @Chris_arnadeFurther reading: Our forgotten towns: struggle, resilience, love and respect in ‘back-row America’: https://www.theguardian.com/us-news/2019/jun/05/america-dignity-chris-arnade-book-extract-poverty Dignity on IndieBound: https://www.indiebound.org/book/9780525534730 

Everyone’s favorite human library, Paul Constant, is back with a review of ‘Janesville, An American Story’ by Pulitzer Prizewinning journalist Amy Goldstein. Pair with a Wisconsin-brewed beer.  Buy Janesville on IndieBound: https://www.indiebound.org/book/9781501102233

In July, Nick took the stage at TEDSummit in Edinburgh, Scotland to make the case for a new economics that recognizes people, not capital, as the driver of economic growth. The talk, released by TED last week, explains why unchecked greed will inevitably lead to the collapse of society. In this episode, Nick takes us behind the scenes of the making of the speech and shares his hopes for its impact, and TED Business Curator Corey Hajim gives us insight into the making of a TED conference. To hear Nick's full speech, visit the links below. Video of Nick’s TED Talk: https://www.ted.com/talks/nick_hanauer_the_dirty_secret_of_capitalism_and_a_new_way_forwardAudio of Nick’s talk on the TED Talks Daily podcast: https://podcasts.google.com/?feed=aHR0cHM6Ly9mZWVkcy5mZWVkYnVybmVyLmNvbS9URURUYWxrc19hdWRpbw&episode=ZW4uYXVkaW8udGFsay50ZWQuY29tOjQ4NTQ1&hl=en&ep=6&at=1568658932671 Twitter: @NickHanauer

The theory of marginal product of labor says that every worker is paid exactly what they’re worth—the value that their labor generates. Employers cite marginal productivity to legitimize paying the lowest wages possible, but it’s just another trickle-down scam. Economist Marshall Steinbaum and food labor expert Saru Jayaraman join us this week to expose the lie of marginal productivity and show how it’s been used to exploit workers for centuries. Marshall Steinbaum is an Assistant Professor of Economics at the University of Utah and a Senior Fellow of Higher Education Finance at the Jain Family Institute. He studies market power in labor markets and its policy implications. He was previously a Senior Economist and Fellow at the Roosevelt Institute, and a Research Economist at the Center for Equitable Growth. Twitter: @Econ_MarshallSaru Jayaraman is the Co-Founder and President of the Restaurant Opportunities Centers United (ROC United) and Director of the Food Labor Research Center at the University of California, Berkeley. Saru authored ‘Behind the Kitchen Door’, a national bestseller, and her most recent book is ‘Forked: A New Standard for American Dining.’ Twitter: @SaruJayaramanFurther readingNo, Productivity Does Not Explain Income: https://evonomics.com/no-productivity-does-not-explain-income/ ROC United Diners’ Guide App: https://rocunited.org/diners-guide/Saru Jayaraman: How Restaurant Workers Are Inheriting a Legacy of Slavery in the U.S.: https://bioneers.org/saru-jayaraman-restaurant-workers-inheriting-legacy-slavery-u-s-ztvz1712/Evidence and Analysis of Monopsony Power, Including But Not Limited To, In Labor Markets: https://www.ftc.gov/system/files/documents/public_comments/2018/08/ftc-2018-0054-d-0006-151013.pdfAntitrust and Labor Market Power: https://econfip.org/wp-content/uploads/2019/05/Antitrust-and-Labor-Market-Power.pdfWhy Are Economists Giving Piketty the Cold Shoulder? http://bostonreview.net/class-inequality/marshall-steinbaum-why-are-economists-giving-piketty-cold-shoulder

It’s that time again—Nick and Goldy are answering your messages. This week, Dale from Washington D.C. wonders if rent control is a symptom of low wages or a safeguard from hardship, and Warren calls in all the way from Toronto to ask how capitalism can measure growth in a way that won’t destroy the planet. Fun! Enjoy. Twitter: @NickHanauer, @GoldyHA

Not all minimum-wage studies are equal. Some of the most headline-grabbing negative reports on the effects of the minimum wage were commissioned and promoted by right-wing organizations looking to legitimize trickle-down policies that hurt workers. How can you spot studies that aren’t worth their salt? Economist Ben Zipperer joins Nick and Jasmin to reveal some of the tricks that economists pull, and to help us understand how some studies can conclude that raising wages will kill jobs—even though, as we know, the opposite is true. Ben Zipperer is an economist at the Economic Policy Institute. His areas of expertise include the minimum wage, inequality, and low-wage labor markets. He has published research in the Industrial and Labor Relations Review and has been quoted in outlets such as The New York Times, The Washington Post, Bloomberg, and the BBC. Twitter: @benzipperer, @EconomicPolicyFurther reading: Gradually raising the minimum wage to $15 would be good for workers, good for businesses, and good for the economy: https://www.epi.org/publication/minimum-wage-testimony-feb-2019/Six reasons not to put too much weight on the new study of Seattle’s minimum wage: https://www.epi.org/blog/six-reasons-not-to-put-too-much-weight-on-the-new-study-of-seattles-minimum-wage/Studies mentioned in the episode: New EPI study: The Effect of Minimum Wages on Low-Wage Jobs: Evidence from the United States Using a Bunching Estimator: https://www.nber.org/papers/w25434Card and Krueger: Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: http://davidcard.berkeley.edu/papers/njmin-aer.pdfUniversity of Washington study - Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle: https://www.nber.org/papers/w23532

Under a Federal Jobs Guarantee, rather than distributing unemployment checks, the government would give a living-wage job to everyone that needs one. It’s a concept that’s been gaining popularity recently, and it’s often pitted against universal basic income. For the second episode in this two-part series exploring both ideas, expert Pavlina Tcherneva and Representative Ro Khanna join Nick and Paul to make the case for a Job Guarantee. Pavlina Tcherneva is an Associate Professor of Economics at Bard College and a Research Scholar at the Levy Economics Institute. Her research on the job guarantee has informed the proposals of several members of congress, and she has collaborated with governments around the world on designing and evaluating employment programs. Twitter: @ptchernevaRo Khanna is the U.S. Representative from California’s 17th congressional district. He sits on the House Budget, Armed Services, and Oversight and Reform committees and is first vice chair of the Congressional Progressive Caucus. He also serves as an Assistant Whip for the Democratic Caucus. In 2018, he introduced legislation to ensure that every jobless worker in the country is given the opportunity to earn a living.Twitter: @RoKhanna Further reading: Ro Khanna Has an Ambitious Plan to Put the Unemployed to Work. Just Don’t Call It a Job Guarantee. https://slate.com/business/2018/07/ro-khanna-has-an-ambitious-plan-to-help-the-unemployed-just-dont-call-it-a-job-guarantee.html Trump’s bait and switch: job creation in the midst of welfare state sabotage: http://www.paecon.net/PAEReview/issue78/Tcherneva78.pdf4 big questions about job guarantees: https://www.vox.com/2018/4/27/17281676/job-guarantee-design-bad-jobs-labor-market-federal-reserveThe Federal Job Guarantee - A Policy to Achieve Permanent Full Employment: https://www.cbpp.org/research/full-employment/the-federal-job-guarantee-a-policy-to-achieve-permanent-full-employmentUnemployment: The Silent Epidemic: http://www.levyinstitute.org/pubs/wp_895.pdf The Job Guarantee: Design, Jobs, and Implementation: http://www.levyinstitute.org/pubs/wp_902.pdf

We love books here at Civic Ventures, and writer, book reviewer, and former bookseller Paul Constant is the first person on the team that we go to for recommendations. Today, we’re excited to share his thoughts about ‘Listen, Liberal’ by Thomas Frank in his first book review for the podcast! According to Paul, ‘Listen, Liberal’ just might have the power to make Democrats relevant again. So cozy up, press play, and let Paul tell you about a book. Pair with a cup of tea. Listen, Liberal: http://listenliberal.com/ Twitter: @paulconstantPaul’s website, The Seattle Review of Books: https://seattlereviewofbooks.com/

You can’t throw a rock without hitting a wandering conversation about Universal Basic Income these days—but in our office, we’re still skeptical. For the first in a two-episode series exploring guaranteed income and its sister idea, guaranteed jobs, UBI expert Scott Santens and Sukhi Samra, the executive director of a real-life UBI experiment in California, join Nick and Paul to make the case for a universal basic income. Scott Santens is a prominent UBI advocate with a crowdfunded income via Patreon. As a writer and blogger, his pieces advocating for basic income have appeared in The Huffington Post, The Boston Globe, TechCrunch, Vox, the World Economic Forum, and Politico. He is on the board of directors of the U.S. Basic Income Guarantee Network, a founding member of the Economic Security Project, an advisor to the Universal Income Project, a founding committee member of Basic Income Action, and founder of the BIG Patreon Creator Pledge. Twitter: @scottsantensPatreon: https://www.patreon.com/scottsantens Sukhi Samra is the Executive Director of the Stockton Empowerment Demonstration (SEED), a pilot program to test a universal basic income in Stockton, CA. SEED is the country’s first-ever city-led Guaranteed Income Initiative. Twitter: @stocktondemoFurther reading:Our Vision for SEED: A Discussion Paper: https://www.stocktondemonstration.org/wp-content/uploads/2019/05/SEED-Discussion-Paper.pdfWhat would a universal basic income mean for America? Stockton thinks it has the answer: https://www.latimes.com/local/california/la-pol-ca-basic-income-stockton-reparations-20190415-story.html The Progressive Case for Replacing the Welfare State with Basic Income: https://www.huffpost.com/entry/the-progressive-case-for_b_12236546