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Nick Hanauer

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Charlie Rose actually broke from his standard fare which is generally populated by the likes of David Brooks and Tom Friedman and their cohorts in the corporate media and had a conversation with authors Eric Liu and Nick Hanauer about their new book, The Gardens of Democracy: A New American Story of Citizenship, the Economy, and the Role of Government.

After watching this interview, I don't think Mitt Romney will be recommending this particular edition of Rose's show as required viewing any time soon. Both men discussed the fact that if we truly want to get our economy moving, those "job creators" are middle class consumers and the fact that when all of us are doing better and there is shared prosperity. That is something that is still completely lost on our political class these days, with way too many of them still pushing the idea that austerity and tackling our debt without putting Americans back to work is going to solve our problems with our sluggish economy.

If anyone has any doubts about why austerity measures like those pushed by the conservatives both here and in the U.K. are not a model we want to follow, just go look at the chart and read Steve Benen's post here -- Why the U.K. recession matters in U.S. politics.

They cited Henry Ford's theory that it was better to overpay his workers so that they could afford the product they were producing and advocated for taxes going up on the rich and for the taxes on investments to be raised, even if they're kept just slightly lower on those on wages and labor, so not to stifle the incentive for investments in America.

Whether anyone agrees or disagrees with all of the authors' points made during this interview, I think it was a whole lot more healthy discussion than what we're typically treated to from our corporate media. I don't think Rose made up for the countless hours he's allowed of Brooks and Friedman and their ilk to be spouting nonsense on his show unchallenged with this interview, but he certainly took a step in the right direction with having them on and with allowing a conversation where what we've been hearing over and over from Republican politicians on how jobs are created in our economy is challenged.

They both thoroughly debunked trickle-down economics and why it does not work and why Mitt Romney is full of crap with his talking points about being a “job creator” while he was at Bain during this interview.

Here's a short description of their book from Amazon:

American democracy is informed by the 18th century’s most cutting edge thinking on society, economics, and government. We’ve learned some things in the intervening 230 years about self interest, social behaviors, and how the world works. Now, authors Eric Liu and Nick Hanauer argue that some fundamental assumptions about citizenship, society, economics, and government need updating. For many years the dominant metaphor for understanding markets and government has been the machine. Liu and Hanauer view democracy not as a machine, but as a garden. A successful garden functions according to the inexorable tendencies of nature, but it also requires goals, regular tending, and an understanding of connected ecosystems. The latest ideas from science, social science, and economics—the cutting-edge ideas of today--generate these simple but revolutionary ideas:

True self interest is mutual interest. (Society, it turns out, is an ecosystem that is healthiest when we take care of the whole.)

More of their interview below the fold.

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It seems millionaire Nick Hanauer's recent op-ed on why we need to be taxing the rich in America has, as Steve Benen explained, “caused a stir, and with good reason.”

Political Animal – Raise Nick Hanauer's Taxes:

If Hanauer’s name doesn’t sound familiar, he’s a very successful venture capitalist, playing a role in the creation of companies like Amazon.com. This week, he took on a standard Republican talking point: the notion that job creation suffers if taxes go up on the rich. Hanauer explained very well why the GOP’s approach is backwards.

I can start a business based on a great idea, and initially hire dozens or hundreds of people. But if no one can afford to buy what I have to sell, my business will soon fail and all those jobs will evaporate.

That’s why I can say with confidence that rich people don’t create jobs, nor do businesses, large or small. What does lead to more employment is the feedback loop between customers and businesses. And only consumers can set in motion a virtuous cycle that allows companies to survive and thrive and business owners to hire. An ordinary middle-class consumer is far more of a job creator than I ever have been or ever will be.

It appears that Hanauer, unlike GOP policymakers, understands supply and demand, and that three decades of concentrating wealth at the top doesn’t create an economic base that ensures broad prosperity. Republicans can keep lavishing more and more money on the rich, but they’ll only spend so much. [...]

Hanauer’s advice? Raise his taxes, make public investments, and get some money in the pockets of middle-class consumers.

Digby’s take on this rings true: “This is a person who really doesn’t want to kill the golden goose of capitalism but would like to save it. It doesn’t speak well for the future of capitalism that there are so few entrepreneurs like him.”

Damn straight.

Be sure to go read the entire editorial here -- Raise Taxes on Rich to Reward True Job Creators: Nick Hanauer.

Hanauer was a guest on Neil Cavuto's show on Fox Business this Wednesday and he did a great job knocking down every one of Cavuto's arguments and straw men as Cavuto desperately tried to rebut Hanauer's assertions on why the rich aren't paying enough in taxes.

Here's the shortened version of their conversation with a tiny bit of paraphrasing and which does not reflect Cavuto constantly interrupting and talking over Hanauer.

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