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Pitchfork Economics with Nick Hanauer

Why Wall Street gets a bailout and you don’t (with Matt Stoller)

Pitchfork Economics with Nick Hanauer

Civic Ventures

Business, Government, News, Politics

4.81.5K Ratings

🗓️ 26 May 2020

⏱️ 33 minutes

🧾️ Download transcript

Summary

Why are rich corporations getting more stimulus money from the government, and getting it faster, than small businesses and individuals? Matt Stoller returns to the show to explain how recovery funds are distributed: Money isn’t neutral, and how money travels matters. Matt Stoller is the author of BIG, a newsletter about monopoly and finance, and the Director of Research at the American Economic Liberties Project. His recent book, ‘Goliath: The 100-Year War Between Monopoly Power and Democracy’, examines how concentrated financial power and consumerism transformed American politics. Twitter: @matthewstoller Further reading: Subscribe to BIG: https://mattstoller.substack.com/welcome The Cantillon Effect: Why Wall Street gets a bailout and you don’t: https://mattstoller.substack.com/p/the-cantillon-effect-why-wall-street Congress “CARES” for Wealthy with COVID-19 Tax Policy Provisions: https://itep.org/congress-cares-for-wealthy-with-covid-19-tax-policy-provisions/ The Relief Package Ushers in Trump’s Planned Economy: https://www.wired.com/story/the-relief-package-ushers-in-trumps-planned-economy/ End Shareholder Primacy Once and For All: http://bostonreview.net/class-inequality/lenore-palladino-end-shareholder-primacy-once-and-all We All Have a Stake in the Stock Market, Right? Guess Again: https://www.nytimes.com/2018/02/08/business/economy/stocks-economy.html Website: http://pitchforkeconomics.com/ Twitter: @PitchforkEcon Instagram: @pitchforkeconomics Nick’s twitter: @NickHanauer

Transcript

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0:00.0

We've had all these bailouts and some people are feeling the effect of those bailouts,

0:05.0

namely big companies in Wall Street, and some people are definitely not.

0:09.0

When you expand the money supply, which is what happens in a bailout, the people who get that money first are... money bailed out now. They're the ones who spent 6.3 trillion dollars on stock buybacks and dividends.

0:27.6

From the offices of Civic Ventures in downtown Seattle, this is Pitch Fork Economics with

0:38.2

Nick Hanauer.

0:39.9

One American capitalist take on how we got into this mess and how we can get out.

0:44.0

I'm Nick Hanauer, founder of Civic Ventures.

0:51.0

I'm David Goldstein, Senior Fellow at CivicVincher. Civic Ventures.

0:57.0

So Nick, as we record this on May 18th, the stock market is going gangbusters.

1:07.0

I think it's up 3-4 percent today.

1:09.6

So that means the crisis is over, right?

1:12.0

Yeah, well, we've had all these bailouts,

1:14.5

and more is still to come.

1:16.7

And definitely, some people are feeling

1:19.6

the effect of those bailouts,

1:21.4

namely big companies in Wall Street.

1:23.4

And some people, I mean, for sure,

1:25.4

are definitely not feeling the effects of those bailouts.

1:30.0

All the folks I know who run restaurants, low wage workers, those folks mostly unless you're working

1:35.8

for a grocery store are really struggling.

1:38.6

And that speaks to the dynamics of how these bailouts work. You know when they happen some people get lots of money first

1:46.3

and and other people just get dribs and drabs. A lot of the companies who are getting bailed out

...

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