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

Episoder(348)

Plain English BEST OF: What’s the Matter With America’s Food?

Plain English BEST OF: What’s the Matter With America’s Food?

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Plain English BEST OF: This Is How the AI Bubble Could Burst

Plain English BEST OF: This Is How the AI Bubble Could Burst

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27 Jan 59min

Plain English BEST OF: The Healthiest "Super-Agers" Have One Thing in Common, According to a 25-Year Study

Plain English BEST OF: The Healthiest "Super-Agers" Have One Thing in Common, According to a 25-Year Study

Throughout December and January, we’re going to be re-airing some of our favorite episodes of the past year and beyond. This list includes interviews that really stuck with me and some others that you...

20 Jan 41min

Plain English BEST OF: The Modern World Is Changing America’s Personality for the Worse

Plain English BEST OF: The Modern World Is Changing America’s Personality for the Worse

Throughout December and January, we’re going to be re-airing some of our favorite episodes of the past year and beyond. This list includes interviews that really stuck with me and some others that you...

13 Jan 47min

Plain English BEST OF: If GLP-1 Drugs Are Good for Everything, Should We All Be on Them?

Plain English BEST OF: If GLP-1 Drugs Are Good for Everything, Should We All Be on Them?

Throughout December and January, we’re going to be re-airing some of our favorite episodes of the past year and beyond. This list includes interviews that really stuck with me and some others that you...

6 Jan 54min

Plain English BEST OF: What Experts Really Think About Smartphones and Mental Health

Plain English BEST OF: What Experts Really Think About Smartphones and Mental Health

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30 Des 20251h 6min

Plain English BEST OF: How Gen Z Sees the World

Plain English BEST OF: How Gen Z Sees the World

Throughout December and January, we’re going to be re-airing some of our favorite episodes of the past year and beyond. This list includes interviews that really stuck with me and some others that you...

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Plain English BEST OF: A Grand, Unified Theory of Why Americans Are So Unhealthy

Plain English BEST OF: A Grand, Unified Theory of Why Americans Are So Unhealthy

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