The Capitalism and Freedom in the Twenty-First Century Podcast

Consumer Sentiment, Junk Fees, Medical Debt, and the Future of Economic Policy with Neale Mahoney

Feb 28, 2025
Neale Mahoney, a Stanford Economics Professor and former Special Policy Advisor in the Biden Administration, dives into revealing insights on consumer sentiment and its influence on economic conditions. He discusses the troubling rise of junk fees and their opacity in consumer markets. Mahoney also tackles the serious issue of medical debt, exploring policy initiatives aimed at alleviating financial strain. Finally, he highlights how evidence-based policies can bridge divides, bringing progressive and centrist factions together in support of consumer protection.
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ANECDOTE

Mahoney's Upbringing

  • Neale Mahoney grew up in Amherst, Massachusetts, in an academic family.
  • His parents, a food science professor and a nutritionist, fostered an environment of policy discussion.
INSIGHT

Politicized Sentiment

  • Consumer sentiment has become increasingly politicized, with Republicans showing stronger reactions than Democrats.
  • This polarization affects sentiment surveys, explaining part of the gap between sentiment and economic indicators.
INSIGHT

Consumer Inflation Perception

  • Consumers perceive inflation based on price changes relative to their memory of normal prices, not just year-over-year changes.
  • This explains why sentiment can remain low even when measured inflation is near normal levels.
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