Today, Explained Why the economy feels bad right now
Jun 2, 2022
Jacob Goldstein, host of "What's Your Problem?" and former NPR contributor, shares insights on the end of the 'Goldilocks Era' in the economy. He discusses the recent turmoil in the stock market and cryptocurrency as signs of broader economic shifts. Goldstein explores why workers are feeling less empowered despite low unemployment and analyzes the implications of rising inflation. The conversation also dives into the evolving role of crypto, questioning whether it can transcend mere speculation in today's shifting landscape.
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The Goldilocks Era
- The Goldilocks era refers to the economic period in the U.S. during the late 2010s.
- It's named after the fairy tale because the economy was "just right" with low inflation, growth, and unemployment.
Reasons for Low Inflation
- Several factors contributed to the Goldilocks era's low inflation despite low unemployment and government spending.
- These include decreased worker bargaining power, globalization, and low inflation expectations.
Impact of Low Interest Rates
- Low inflation allowed the Fed to keep interest rates low, benefiting financial assets like stocks and cryptocurrency.
- Low interest rates make these assets more attractive than bonds or savings accounts.