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Progressives have been fighting on the neoliberals’ terms. Nick Hanauer and Eric Beinhocker propose a flip, an approach that is more humane– and that promises a far more prosperous country…

In 1962, the historian of science Thomas Kuhn published a short book that changed how educated people think about intellectual progress. The Structure of Scientific Revolutions argued that knowledge does not advance through the steady accumulation of better facts. It advances through ruptures—moments when a prevailing framework, or paradigm, collapses under the weight of anomalies it cannot explain, and a new one takes its place. The Ptolemaic model of the solar system gave way to the Copernican. Newtonian mechanics gave way to relativity. The shift is rarely smooth or purely rational. People resist. Institutions resist. The old framework doesn’t simply yield to better evidence; it has to be displaced by an alternative that can explain not just the anomalies but everything the old model explained, plus more.

We are living through one of those moments now. The prevailing economic paradigm—the neoliberal consensus that dominated policymaking across the Western world from roughly the mid-1970 to 2020—has collapsed. It has not collapsed quietly, in the pages of academic journals, where it was already in serious disrepute. It has collapsed loudly, publicly, and catastrophically, in the lived experience of hundreds of millions of people who were told the model would deliver prosperity. Instead, they watched it deliver stagnation and insecurity and drew the obvious conclusion: The people running the system either do not know what they’re doing or do not care about them, or both. The democratic consequences of that conclusion are now visible everywhere.

This essay argues three points. First, that the democratic emergency we face—the rise of authoritarian populism across the developed world—is not primarily a political failure but an economic one. It is the result of a failed set of economic ideas: When the neoliberal paradigm lost its intellectual and popular support after the 2008 crisis, there was no credible alternative, and the resulting vacuum was filled by populism. Second, progressive responses—while valuable—have not filled the paradigm vacuum because they have operated largely within the neoliberal frame rather than replacing it. Third, that an emerging modern economic consensus we call Market Humanism has the potential to replace neoliberalism—not by proposing a new set of policies, but by constructing a new paradigm grounded in twenty-first-century science. This new paradigm can not only to help us create an economy that is fair, prosperous, and sustainable, but also repair our broken democracy…

[The authors explain how neoliberalism broke the social contract (and democracy) and why the progressive response has failed. They explain the “scientific revolutions” that set the stage for Market Humanism: “From Selfish Homo Economicus to Cooperative Homo Sapiens,” “From Markets as Efficient Allocators to Markets as Evolutionary Innovators,” “From Value Is Market Price to Value Is Solutions to Human Problems,” and “From Inequality Is Meritocratic to Inequality Is Created by Structure and Power.” They then outline the steps necessary– the four imperatives of Market Humanism: “Grow the economy by making it fairer,” “Grow the economy by supporting the middle class,” “Measure what matters—human flourishing,” and “Make the state a partner in prosperity.” And they explain how Market Humanism can help democracy succeed. They conclude…}

… It is useful to recall what happened during a previous time a major paradigm changed. For most of recorded history—thousands of generations—people looked up at the sky and saw what seemed obvious: the sun moved, the earth stood still. Entire systems of knowledge, theology, and political authority were built on that foundation. Then, in the early seventeenth century, Galileo Galilei perfected the telescope and turned it on the heavens. What he saw—moons rotating around Jupiter and the phases of Venus—was inconsistent with a universe organized around a stationary earth at the center of the universe. Galileo’s theory actually had evidence you could see with your own eyes.

He brought that evidence to the most powerful institution of his day. He showed the Church’s leaders what the telescope revealed. They looked. They understood what they were seeing. And then they told Galileo to shove his telescope where the sun did not shine. He was tried by the Inquisition and spent the rest of his life under house arrest.

Why? Not because they couldn’t see the evidence. But because if the earth was diminished, so were they. The geocentric paradigm was not just a theory of astronomy. It was a foundation of institutional authority, and the people whose power rested on that foundation were not interested in whether it was true. They were interested in whether it was useful—to them.

This is the situation we are in now. The evidence against the neoliberal paradigm is not ambiguous—we can see it right in front of our eyes. But the paradigm has made a small number of people very wealthy, and they have spent decades building the infrastructure that keeps it alive in policy long after it died in the academy. They will not abandon it. They will call the alternative radical, un-American, dangerous. The rich and powerful will circle the wagons and spend whatever it takes.

They will still lose. Not because they suddenly see the light. Because a paradigm that is empirically wrong cannot indefinitely outrun one that is empirically right—not when ordinary people are the ones living the difference and noticing it. The defenders of the old paradigm will lose because stagnant wages, predatory healthcare, and hollowed-out communities are not abstract to the Americans paying their costs. They will lose because ordinary people pick up the telescope, look through it, and refuse to look away.

That is what Market Humanism is. It is not the property of the academics who built it or the policymakers who will implement it. It belongs to the people whose lives it describes—workers, small business owners, teachers, nurses, scientists, young people told their whole lives that the rules of the neoliberal economy are incontestable facts of nature, and who now are beginning to suspect, rightly, that they were scammed.

This paradigm does not need permission from the people in power to take hold. It needs only to be claimed by the people who have been waiting for it. That is how every paradigm that ever displaced a wrong one has won—not because the powerful changed their minds, but because enough ordinary people stopped accepting a story that no longer matched the world they lived in.

That is what is being asked of us now. The telescope is pointing at the sky. The evidence is clear. The alternative is built. What remains is the work of ordinary people, in extraordinary numbers, refusing to live inside a story that no longer explains the world. The people told for 50 years there is no alternative are about to discover that there is—and that it has been theirs all along.

Fascinating, provocative, and eminently worth reading in full: “Market Humanism: A New Paradigm for a New Era,” from @nickhanauer.bsky.social and @ericbeinhocker.bsky.social.

* Adam Smith, Inquiry into the Nature and Causes of the Wealth of Nations, 1776

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As we cultivate change, we might recall that it was on this date in 1991 that Nickelodeon premiered its first three original animated series– “Nicktoons“– Doug, Rugrats, and Ren & Stimpy. One of these was not like the other two.

Ren & Stimpy follows the misadventures of Ren Höek, an emotionally unstable (indeed, psychotic) chihuahua; and Stimpy, a good-natured and dimwitted Manx cat. But while Doug and Rugrats were clearly family fare, Ren & Stimpy featured a surreal blend of dark humor, sexual innuendo, violence, and shock. It’s producers had trouble with Standards and Practices; it’s creator was fired after the first year… but kids loved it. It ran for five seasons and 52 episodes (93 segments).