The Commentary Magazine Podcast Inflation, the Economy, and Drugs
Mar 20, 2025
David Bahnsen, a managing partner at the Bahnsen Group, and Tevi Troy, an author focusing on Big Pharma, dive deep into today's economic landscape. They tackle the Federal Reserve’s inflation talk and the political ramifications of tariffs on housing and market growth. The duo also discusses the pharmaceutical industry's innovations amidst public scrutiny over drug pricing. Additionally, they consider the impact of direct-to-consumer advertising and the potential of AI in drug development, highlighting the balancing act between regulation and innovation.
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Episode notes
Inflation vs. Uncertainty
- Inflation is a quantifiable phenomenon tied to increased prices and reduced purchasing power.
- Uncertainty, however, is subjective and affects investment decisions, not directly impacting inflation itself.
Inflation's Monetary Basis
- Pure inflation is driven by monetary factors, not just supply chain disruptions.
- Increased prices due to events like natural disasters affecting orange crops don't represent inflation in the broader economic sense.
Tariffs and Housing
- Tariffs on Canadian lumber would increase housing costs and worsen the existing supply crisis.
- The U.S. benefits from access to cheaper lumber from Canada.
