"Econ 102" with Noah Smith and Erik Torenberg

How the Macro, Tariffs and DOGE will Impact your Bank Account | Noah Smith on How To Money

98 snips
Feb 14, 2025
This week's guest, Noah Smith, is an economist and author of the Substack "Noahpinion," celebrated for making complex economic topics accessible. The conversation delves into the implications of tariffs and healthcare costs on personal finance. Noah discusses demographic challenges like the baby bust and offers insights on social security funding amidst declining birth rates. They also explore Argentina's economic turnaround under new leadership, blending humor with serious economic discourse.
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INSIGHT

Macro vs. Micro Perceptions

  • Macroeconomic shifts influence personal finances, but people often misattribute broader anxieties to economic assessments.
  • Surveys show people rate their finances well, yet perceive the national economy negatively, influenced by media negativity.
ADVICE

Key Economic Indicators

  • Monitor the 5-year break-even inflation rate to anticipate inflation and Fed policy.
  • Watch the prime-age employment-to-population ratio for a clear view of macroeconomic employment.
INSIGHT

Tariff Impact and Trump

  • Trump's tariff decisions are influenced by stock market reactions, not necessarily economic principles.
  • Tariffs' impact is lessened by dollar appreciation, rerouting, and other mitigating factors.
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