Plain English with Derek Thompson cover image

Plain English with Derek Thompson

What Many Economists (and I) Got Wrong About This Economy

Mar 5, 2024
Judd Cramer, a Harvard economist and co-author of a paper on inflation metrics, challenges common economic perceptions. He explains how traditional inflation measures overlook the staggering impact of soaring interest rates on everyday costs. As housing prices rise, the true cost of living, especially in terms of mortgages and loans, is often misrepresented. Cramer argues that this disconnect fuels economic anxiety and questions the validity of current economic indicators, offering a fresh perspective on what really drives consumer sentiment.
29:55

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Inflation metrics fail to reflect the burden of rising interest rates on living expenses.
  • Government aid reductions, like the child tax credit, have a significant impact on poverty rates.

Deep dives

Challenges in Measuring Inflation for Poor Americans

When discussing the economy, it's crucial to consider the impact of inflation on low-income individuals. While real wages may be rising for the poor, they often face higher inflation rates due to the unique basket of goods they use. Additionally, the reduction in government transfers, like the child tax credit, has affected poverty rates, highlighting the complex interplay between wage growth and cost increases for those at the lower end of the income spectrum.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode