"Econ 102" with Noah Smith and Erik Torenberg The New Axis, Neoliberalism, and Germany [Mailbag]
23 snips
Sep 5, 2024 In this lively discussion, listeners hear about the surprising vibrancy of Poland's economy and its cultural spirit. The hosts dive into the reliability of economists as predictors and China's evolving industrial strategies. They explore complex geopolitical dynamics, including potential US-China conflicts and the advantages for smaller nations. The dialogue extends to the challenges of drug pricing and taxation in the U.S., as well as Germany's energy policies and the legacy of neoliberalism, sparking ideas for new economic frameworks.
AI Snips
Chapters
Transcript
Episode notes
Economist Predictions
- Economists accurately predict many things, like the impact of minimum wage hikes and tax changes.
- Macroeconomic forecasting, like recessions and inflation, remains challenging due to limited data.
Corporate Tax Cuts
- Corporate income taxes have been lowered and replaced with other taxes, like in Trump's tax reform.
- This boosted investment somewhat, but tax distortions generally don't seem as large in reality.
Taxing Unrealized Gains
- Repealing the step-up basis, which wipes capital gains at death, is simpler than taxing unrealized gains.
- Taxing unrealized gains could incentivize the wealthy to consume more, potentially exacerbating consumption inequality.