Macro Musings with David Beckworth
Zachary Mazlish on the Political Implications of Inflation and the Impact of Transformative AI
Dec 2, 2024
Zachary Mazlish, an economist from the University of Oxford, dives into the intricate ties between inflation, the 2024 presidential race, and the macroeconomic shift caused by transformative AI. He highlights how inflation has affected the financial standing of the median voter, critiques wage growth trends, and explores the dual-edged nature of AI’s impact on productivity and asset pricing. The discussion also touches on optimal monetary policy amidst rising productivity and the potential risks of job automation. A thought-provoking listen!
50:02
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Quick takeaways
- Inflation significantly impacted the median voter's economic well-being, influencing voter perception and decision-making leading up to the 2024 presidential election.
- Transformative AI has the potential to reshape economic growth and labor markets, prompting necessary policy considerations regarding job displacement and wealth distribution.
Deep dives
Inflation and Real Wages
The podcast discusses the impact of inflation on the median voter's economic situation, particularly in relation to the 2024 presidential election. It emphasizes that during the Biden administration, median wages did not grow faster than in previous administrations, with the data showing that real wage growth for middle and lower-income groups was notably weak. The distinction between hourly, weekly, and annual earnings is crucial, as many households experienced declines in weekly and overall income during this period, which contrasts sharply with prior trends. This creates a disconnect, as although some data may suggest improved median wages, the reality for most individuals indicates a significant decline in their purchasing power.
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