1/ I have a new piece out today in @TIME about the moment we’re witnessing — a departure from free-market orthodoxy, and the realization that the market depends on the state to create prosperity. The tl;dr thread: https://time.com/5956255/free-market-is-dead/

2/ The recent shift in support for more public investment is not a temporary COVID phenomenon. We are witnessing the most profound realignment in American political economy in 40 years.

3/ We’ve had regulations, public investment, and macroeconomic management to varying degrees over the last century. This moment is different because Americans across party and class are using a new framework to explain what makes markets work.

4/ This is more than an economic agenda -- it is a new story about how the economy works. Markets managed by government create more prosperity and stability and for more people in the long run.

5/ The last time a paradigm shift like this happened was in the 1970s. Intellectuals and policymakers propagated a new narrative that the government created our problems and markets would solve them.

6/ This new "free market" outlook was supposedly value neutral, backed by supply & demand curves. Hard work would lead to success, no matter a person’s race or class. Efforts to address injustice would “intervene” in the natural economy.

7/ But in 2008, the first cracks in the widespread faith in free market orthodoxy began to appear. The crisis that cost millions their homes and jobs largely resulted from free market reforms.

8/ Free markets failed empirically to live up to their promise. Lower taxes were supposed to create economic growth. Growth was supposed to boost incomes. Less regulation was supposed to lower costs for consumers. But the opposite happened.

9/ Trump’s election scrambled the conventional wisdom of political economy. Then, the coronavirus pandemic struck. For the second time in 12 years, free markets had broken down, and government stepped up.

10/ The new, emerging conventional wisdom is simple: markets need management to create prosperity. Regulation, public investment, and macroeconomic guidance can boost growth and make our economy more stable and resilient.

11/ This is bigger than Bidenomics. It is a paradigm shift that will define the next decade and enable us to imagine solutions to problems that would have been unthinkable only a few years ago.