Planet Money Indicators of the Year, Past and Future
80 snips
Dec 31, 2025 2025 was a rollercoaster for the economy, with consumer sentiment plunging to historic lows, signaling serious fears. Tariffs soared to unprecedented levels, triggering legal dramas, including a lawsuit from Costco. The CAPE ratio hit dot-com bubble highs, raising alarms about economic inequality and bubbles. As we edge into 2026, eyes are on the federal funds rate and the impact of AI data centers on electricity costs. Consumer spending remains uneven, thriving at the top while the rest face credit challenges.
AI Snips
Chapters
Transcript
Episode notes
Historic Drop In Consumer Sentiment
- Consumer sentiment plunged to historic lows in 2025 and acts as an early warning for economic pain.
- Kenny Malone emphasizes sentiment reflects how people feel about prices, jobs, housing and future prospects.
Tariffs Jumped To Near-1935 Levels
- Tariffs shot up dramatically in 2025, raising the average effective rate from 2.5% in 2024 to 16.8% in 2025.
- Greg Rosalsky frames tariffs as a historic policy shift with ongoing legal and economic consequences.
CAPE Ratio Near Dot‑Com Peak
- The cyclically adjusted price-to-earnings (CAPE) ratio reached heights not seen since before the dot-com bust.
- Darian Woods links the high CAPE to AI-driven stock gains and a K-shaped economy benefiting asset owners.