Explaining Labor Hoarding to a Child

In the podcast episode, Erica participates in an Econ Battle Zone challenge where she has to explain the concept of labor hoarding to a child. She creates a children's podcast called 'Planet Money for the Kids' and hosts it with a child named Paul. Through their conversation, Erica explains that labor hoarding occurs when an employer holds onto their employees even when the economy is not doing well. She uses the analogy of a busy toy factory that keeps its workers in case there is still demand for toys in the future. Erica highlights that labor hoarding impacts inflation and delays its decrease.