The Money with Katie Show Personal Finance is Broken—Can These Economists Fix It?
43 snips
Sep 10, 2025 In this engaging discussion, economists John Campbell, a Harvard professor and co-author of "Fixed," and Tarun Ramadorai from Oxford, explore how the financial system drives wealth inequality. They highlight that many personal finance issues stem from structural flaws rather than individual failings. The conversation delves into the shortcomings of financial products and the need for reform. They propose innovative solutions, including a personal finance starter kit aimed at improving accessibility and equity for consumers in a predatory financial landscape.
AI Snips
Chapters
Books
Transcript
Episode notes
Finance Magnifies Inequality
- The financial system amplifies inequality by giving richer people higher returns and cheaper borrowing.
- Small differentials in returns, borrowing costs, and saving rates can greatly widen wealth gaps over decades.
Shopping And Bargaining Hurt The Less Advantaged
- Poorer consumers face material disadvantages from worse shopping and weaker bargaining power for financial products.
- These behavioral and informational gaps raise costs for less-advantaged borrowers independent of collateral.
Not Just Fixed Costs Hurt Small Savers
- Fixed costs make small accounts proportionally expensive, but other avoidable forces also disadvantage poorer savers.
- Rip-off index funds and risk aversion further reduce returns for less-educated investors.
