Professor Alice Kassens, an expert in health and labor economics from Roanoke College, shares her innovative approach to teaching using podcasts. She discusses how her students engage with economic data and debate its implications. The conversation dives into the impacts of a potential government shutdown on the economy and financial markets. Kassens also highlights the disconnect between consumer sentiment and actual economic statistics, shedding light on the anxieties faced by the younger generation in the job market.
Professor Alice Kassens emphasizes the importance of incorporating real-world data into economics education to enhance students' analytical skills and engagement.
The episode highlights the critical role consumer spending plays in economic growth, particularly noting its significant contribution to GDP growth figures.
Discussion reveals the disconnect between consumer sentiment and economic data trends, indicating a need for better communication of economic narratives to the public.
Deep dives
The Significance of Engaging Economics Education
The episode highlights the evolution of teaching methods in economics over the last two decades. Engaging students through active participation rather than traditional lectures has become increasingly essential, as research shows that students remain attentive for shorter periods. Alice Kassens emphasizes incorporating real-world data into lessons, which not only captivates students' interest but also enhances their data literacy and analytical skills. This approach fosters a deeper understanding of economic concepts, encouraging students to connect classroom knowledge to current economic events.
The Impact of Consumer Spending on Economic Growth
The conversation reveals that consumer spending, particularly in retail, is a significant contributor to overall economic growth. In the latest GDP report, it was noted that retail trade accounted for 1.1 percentage points of the 3.1% GDP growth, showcasing the vital role consumer behavior plays in the economy. This indicates that as long as consumers maintain spending, the economy is likely to remain robust. Moreover, the discussion emphasizes the need for ongoing education about the economic indicators that shape consumer behavior and sentiment.
Understanding the Disconnection between Economic Data and Consumer Sentiment
The episode discusses the observation that consumer sentiment often diverges from economic data trends. Despite a robust economy and lower inflation rates, surveys indicate that consumer sentiment remains low, which can lead to confusion. Alice Kassens highlights how consumers' perceptions are strongly influenced by factors such as inflation and political events, which might not align with favorable economic indicators. This disparity prompts questions about how effectively the economic narrative is communicated to the public and the importance of addressing consumers' emotional reactions.
The Effects of Government Shutdowns on the Economy
The guests delve into the potential economic implications of government shutdowns, emphasizing that while historical data suggests minimal immediate impacts, the ongoing uncertainty can create anxiety in financial markets. Non-essential government employees may face pay delays, which can affect consumer spending, especially during the holiday season. Alice points out that even a short shutdown could have broader ripple effects, particularly in sectors reliant on government contracts. Conversations like these underscore the importance of political stability in maintaining consumer confidence and overall economic health.
The Importance of Data Literacy for Future Economists
Alice Kassens shares her innovative approach to teaching economics by incorporating data literacy into the curriculum, preparing students for the realities of the job market. This initiative involves analyzing labor reports and engaging in discussions about economic data and its implications in class. Students participate in a competitive format to enhance their understanding, fostering not just analytical skills but also camaraderie among peers. By equipping students with practical skills in data interpretation, educators can better prepare them to navigate an increasingly complex economic landscape.
The Inside Economics hosts welcome Professor Alice Kassens to discuss her use of the Inside Economics podcast as a teaching tool at Roanoke College. Alice describes how the podcast inspires her students to learn about and debate the meaning of economic releases. After a quick round of the statistics game which Alice dominates, the group discusses the effects of a potential government shutdown on the economy and financial markets.
The Economic View-Real Time information service is the single web-based source that covers the global economy and financial markets around the clock. The service provides real-time analysis of key economic and financial market developments along with analysis of more than 250 economic releases. Economic View enables users to easily access data, analysis of economic events, trends and risks.
Hosts: Mark Zandi – Chief Economist, Moody’s Analytics, Cris deRitis – Deputy Chief Economist, Moody’s Analytics, and Marisa DiNatale – Senior Director - Head of Global Forecasting, Moody’s Analytics
Follow Mark Zandi on 'X' and BlueSky @MarkZandi, Cris deRitis on LinkedIn, and Marisa DiNatale on LinkedIn
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