Why Economist Kathryn Edwards is Optimistic About America’s Future
Mar 26, 2025
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Economist Kathryn Edwards, a Bloomberg columnist known as the "Keds Economist," shares her insights on America’s economic outlook. She discusses the overlooked policy with a big ROI and critiques the reliance on tax cuts for growth. Kathryn emphasizes the need for systemic support for families, arguing that financial stability is essential for raising children. She also addresses the dangers of apathy in civic engagement, highlighting the importance of actively participating in political issues. Her optimistic perspective reveals a path forward through thoughtful policy reform.
Kathryn Edwards argues for a re-evaluation of tax cuts, emphasizing their limited effectiveness in addressing systemic economic issues like inequality.
The podcast highlights the importance of automatic investments and financial apps in simplifying the investing process for newcomers to the market.
Edwards stresses the need for improved worker rights, particularly paid family leave and childcare, to foster economic participation and stability.
Deep dives
Recurring Investments Made Easy
Setting up automatic, recurring investments is a practical way to ensure consistent investing habits. Using a financial app allows individuals to easily create a schedule for monthly investments in stocks and ETFs without the hassle of manual transactions. This method simplifies the process of investing, making it accessible even for those who may feel overwhelmed by the complexities of the market. It's an effective way for novice investors to build their portfolios gradually.
Desire for Progressive Change
There is a strong sense of readiness for unprecedented advancements in worker rights, such as paid sick days and family leave. This desire reflects a growing discontent with the status quo, particularly after experiencing challenging economic conditions over the last several years. The aspiration for systemic changes embraces a future where essential resources like childcare and education are prioritized. Advocates argue that these changes are necessary for fostering a healthier societal structure.
The Ineffectiveness of Tax Cuts
Tax cuts in the U.S. have been framed as a solution to economic issues, but evidence suggests they do little to address underlying problems. Past tax reductions have purportedly failed to significantly improve accessibility to childcare or reduce economic disparities. Critics argue that revenue lost from such cuts often does not translate into measurable benefits for society at large. There is a call for a re-examination of fiscal policies that favor tax cuts over social investments.
Economic Inequality Deepens
High levels of economic inequality have been observed, with stagnant wages for the majority. The disparity is compounded by policies that favor the wealthy, leaving low-income earners with limited opportunities for advancement. The struggle for workers' rights has been diminished through a lack of effective union support, leading to a more precarious economic situation for many. Historical data suggests that when unionization rates are strong, income inequality tends to decrease, indicating the importance of organized labor.
The Economic Impact of Family Structures
Policies surrounding family leave and childcare directly affect economic participation among parents, particularly women. The lack of support for working parents often leads to significant financial strain, especially for lower-income families. Research shows that access to paid sick days and parental leave enhances job stability and overall earnings. These social safety nets are essential in promoting economic growth and stability, yet they remain underfunded and unavailable.
Recession Fears and Economic Resilience
The looming threat of recession has heightened fears among the public, but such economic downturns often impact a small percentage of the workforce. While layoffs and job losses represent significant challenges for those affected, the majority of workers remain employed during such periods. Historical patterns show that recessions can result in increased entrepreneurial ventures as individuals seek new opportunities. Navigating through tough economic conditions requires a combination of preparedness and resilience, reinforcing the idea that recovery is possible.
2025’s financial news cycle feels like a broken wind-up doll, where recession indicators, unemployment numbers, inflation data, and tax cuts are #JustTheTip of an unsettling iceberg. So, this week, we’re joined by economist Kathryn Edwards (aka “Keds Economist”), and I got to ask her about:
🧠 The no-brainer policy with a huge ROI that nobody’s talking about
✂️ The fundamental flaw with using tax policy (read: tax cuts) to stimulate growth
🇺🇸 Her honest POV on America’s economic outlook and “recession-proofing” a household
👊🏼 The limits of “empowerment” rhetoric, which often tries to use cultural or social nudging to solve problems that simply require money
Money with Katie’s mission is to be the intersection where the economic, cultural, and political meet the tactical, practical, personal finance education everyone needs.
