Plain English with Derek Thompson The Four Biggest Myths of the U.S. Economy. Plus, Omicron in 100 Seconds.
Dec 21, 2021
Morgan Housel, a partner at Collaborative Fund and author of 'The Psychology of Money,' joins the discussion to debunk major U.S. economy myths. He tackles misconceptions about inflation, highlighting the gap between personal experiences and aggregated data. Housel reframes the 'Great Resignation' as a 'Great Reshuffling' where workers seek better opportunities. He also explores the shifting power dynamics in labor relations and addresses the modern retirement crisis, all while providing insights on personal growth and reflections on leadership.
AI Snips
Chapters
Books
Transcript
Episode notes
Personalized Inflation
- The Consumer Price Index (CPI) reports inflation based on an "average" household, but spending patterns vary greatly.
- Consider "your" inflation rate based on your spending, as housing costs heavily influence CPI but don't affect all homeowners equally.
Inflation Basket Examples
- Derek Thompson explains how the government calculates inflation using surveys and a "basket of goods."
- He highlights how individual spending affects personal inflation rates using examples of high and low inflation items.
Transitory Inflation
- The term 'transitory' in relation to inflation lacks a clear definition and can vary in interpretation.
- Morgan Housel suggests the current economic climate mirrors the post-World War II era more closely than the 1970s.
