The Ezra Klein Show ‘This is Something that Traditional Economics Isn’t Prepared to Deal With’
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Dec 23, 2025 
Tracy Alloway, an economics journalist and co-host of Odd Lots, and Joe Weisenthal, also from Odd Lots, dive into the chaos of 2025’s economy. They explore the strange resilience amidst policy upheavals, dissect the impact of tariffs, and unravel the intricacies of AI investment driving growth. The hosts debate the looming risks of an AI bubble and discuss the profound 'vibecession' where rising incomes clash with plummeting consumer sentiment. Their insights reveal a complex economic landscape shaped by technology and politics.
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Macro Data Masks Deep Economic Uncertainty
- The economy looks normal by macro data but feels chaotic and uncertain in reality.
- Traditional economic rules are not fully explaining current outcomes, creating deep ambiguity.
Retailer Stockpiles Ahead Of Tariff Chaos
- A women's clothing retailer told Tracy the tariffs made ordering for the Christmas season chaotic and unpredictable.
- Businesses stockpiled inventory and postponed decisions amid tariff uncertainty.
Tariffs Raised Business Costs Through Uncertainty
- Tariff policy swung from shock to a muddled, high-tariff equilibrium around 15–20%.
- That uncertainty raises the cost of doing business and clouds long-term investment decisions.