The Front Row Podcast #38- Manoj Pradhan: The Great Demographic Reversal
May 26, 2025
In this discussion, Manoj Pradhan, founder of Talking Heads Macroeconomics, delves into the economic implications of aging societies. He reveals how demographic shifts, particularly in China and Japan, are poised to create a more inflationary global environment. The conversation touches on challenges such as rising inequality and healthcare costs, as well as the potential of technology to enhance growth. Pradhan also suggests innovative approaches to manage these demographic changes while offering valuable advice for new graduates entering the workforce.
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China's Workforce Floodgates Open
- China's economic integration was like opening floodgates to a massive skilled workforce.
- This caused nearly a doubling of the global labor supply, unprecedented in history.
China's Deflationary Impact
- China's low-cost manufacturing caused a sustained disinflation in goods prices.
- US domestic goods inflation fell from about 2.5% to negative 2% by the financial crisis.
China's Role in US Wage Inequality
- Inequality rise in the US was mainly due to stagnant wages for the lower 50%.
- Chinese manufacturing competed with lower-skill US jobs, pressuring wages down.
