In today's episode, Noah Smith and Erik Torenberg answer listeners' questions and discuss global economic issues such as China's demographic challenges, currency crises, GDP vs. GDP per capita, the efficacy of long prison sentences, and the risks and benefits of economic stimulus, currency depreciation, and trade imbalances.
--
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse.
--
RECOMMENDED PODCAST: Modern Relationships
Check out Modern Relationships, where Erik Torenberg interviews tech power couples and leading thinkers to explore how ambitious people actually make partnerships work. Founders Fund's Delian Asparouhov and researcher Nadia Asparouhova kick off the series with an unfiltered conversation about their relationship evolution.
Apple: https://podcasts.apple.com/us/podcast/id1786227593
Spotify: https://open.spotify.com/show/5hJzs0gDg6lRT6r10mdpVg
YouTube: https://www.youtube.com/@ModernRelationshipsPod
--
Highlights from the Episode:
- The U.S. trade deficit represents IOUs to other countries that must eventually be paid back or partially defaulted on through inflation. A persistent trade deficit is not in America's long-term interest.
- There are two main types of economic crises: currency crises (typically involving inflation) and deflationary depressions. They require opposite policy responses - austerity for currency crises and stimulus for deflationary depressions.
- China is currently experiencing a deflationary crisis due to its real estate bubble burst and debt overhang, leading to falling prices and attempts to export their way out of trouble.
--
SPONSORS:
GiveWell
GiveWell spends 50,000 hours every year doing deep-dives into different charitable programs to try to find the ways to do the most good for your dollar. GiveWell has now spent over 17 years researching charitable organizations and only directs funding to a few of the HIGHEST-IMPACT opportunities they’ve found. Visit https://www.givewell.org to find out more or make a donation. Select PODCAST and enter Econ 102 at checkout to make sure they know you heard about them from us.
NetSuite
More than 40,000 businesses have already upgraded to NetSuite by Oracle, the #1 cloud financial system bringing accounting, financial management, inventory, HR, into ONE proven platform. Download the CFO's Guide to AI and Machine learning: https://netsuite.com/102
đź“‘ Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/
--
SEND US YOUR Q's FOR NOAH TO ANSWER ON AIR: Econ102@Turpentine.co
--
FOLLOW ON X:
@noahpinion
@eriktorenberg
@turpentinemedia
--
LINKS:
Noahpinion: https://www.noahpinion.blog/
https://www.noahpinion.blog/p/good-cities-cant-exist-without-public
https://www.noahpinion.blog/p/macroeconomics-the-predator-of-foolish
