What Many Economists (and I) Got Wrong About This Economy

What Many Economists (and I) Got Wrong About This Economy

One of my New Year’s resolutions for 2024 was to do more episodes with people who think I'm wrong about something. For example, I've done several episodes about how the U.S. economy is doing much better than most Americans think. Today’s guest says my analysis (and that of many economists and economic commentators) is missing something big. Official inflation measures do a poor job of capturing the effect of higher interest rates. When a home goes from $200k to $220k, that’s a 10 percent increase in the value of the home. But, with higher rates, the monthly cost of living in that house with a mortgage might go up 300 percent. The same is true for financing a new car with higher interest rates. Or paying credit card debt. Judd Cramer, an economist who teaches at Harvard University, is the coauthor of a new paper on how our inflation data doesn't properly account for skyrocketing interest rates—and why the so-called "vibecession" isn’t as much of a mystery as we think. If you have questions, observations, or ideas for future episodes, email us at PlainEnglish@Spotify.com. Host: Derek Thompson Guest: Judd Cramer Producer: Devon Baroldi Learn more about your ad choices. Visit podcastchoices.com/adchoices

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Can "Touch-Grass Populism" Save America?

Can "Touch-Grass Populism" Save America?

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Everybody Thinks AI Is a Bubble. What If They’re Wrong?

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Two weeks ago, in one of our most popular podcasts of the year, the investor and author Paul Kedrosky explained why he thinks AI is a bubble. In the last few days, practically everybody seems to agree...

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The Future of Entertainment, Part 2: What’s the Matter With Broadway?

The Future of Entertainment, Part 2: What’s the Matter With Broadway?

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The Future of Entertainment, Part 1: Is Hollywood's Business Model Broken?

The Future of Entertainment, Part 1: Is Hollywood's Business Model Broken?

The film and TV business has quietly—or, if you work in the industry, not so quietly—been in a depression for the past few years. Original TV work has plummeted. In 2024, Americans bought about 40 per...

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Why Money Doesn't Buy Happiness in America

Why Money Doesn't Buy Happiness in America

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Is AI Really About to Solve Human Disease?

Is AI Really About to Solve Human Disease?

I’ve had the privilege of talking to many brilliant people about artificial intelligence. And when you ask them to imagine the most beneficial consequences of this technology, they almost always give ...

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How America Became a Nation of "Free Speech Hypocrites"

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The past few weeks have marked a low point for free speech principles in America. The head of the FCC openly threatened ABC for the language of a comedian. The president told a reporter that networks ...

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What’s the Matter With America’s Food?

What’s the Matter With America’s Food?

In the past few weeks, we’ve done several episodes on obesity, GLP-1 drugs, and nutrition science. What we haven’t talked about as much is the politics of food. And today’s guests say: If you really ...

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