EconoFact Chats

The Undersecretary of the Treasury for International Affairs plays a key role in shaping how the United States engages with the world financial system. Jay Shambaugh, Undersecretary of the Treasury for International Affairs in the Biden administration joins EconoFact Chats to discuss his time in office, focusing on negotiations with China over industrial subsidies and non-market trade barriers, foreign investments in sensitive US technologies, and the challenges of dealing with sovereign debt defaults given the wide array of lenders today. The discussion also focuses on the International Affairs Department's role in monitoring exchange rate policies, and its interactions with Congress, the White House, and other domestic agencies. Before his term as Undersecretary, Jay served on the Council of Economic Advisors. He is currently a Professor of Economics and International Affairs, and the Co-Director of the Institute for International Economic Policy at George Washington University.

Binyamin Appelbaum, a journalist at The New York Times, joins fellow journalists Scott Horsley (NPR), Larry Edelman (Boston Globe), and Heather Long (The Washington Post) to dissect pressing economic issues. They tackle the impact of the newly passed budget bill and the downgrade of U.S. debt, discussing implications for lower-income Americans. The panel delves into tariff volatility, looming recession threats, and the concerns over Medicaid work requirements. Their insights reveal how these factors could shape the future of American fiscal policy and global investment.

Since the mid-1990s, the U.S. social safety net has been geared towards policies that encourage and reward work. While steady jobs and decent wages are the surest routes out of poverty, evidence shows that safety-net work requirements rarely translate into higher employment among beneficiaries of the Supplemental Nutrition Assistance Program (SNAP–formerly known as “food stamps”). Diane Schanzenbach joins EconoFact Chats to explain how stricter mandates often push people off SNAP without pulling them into the labor market, a dynamic that becomes more relevant as Congress weighs bills that would make continued SNAP and Medicaid benefits contingent on having or actively seeking work. Diane is the Margaret Walker Alexander Professor of Human Development and Social Policy at Northwestern University. She is also a member of the Food and Nutrition Board of the National Academy of Science, Engineering and Medicine. She recently testified in front of the House Committee on Agriculture on the issue of increasing SNAP's mandatory work requirements.

This week, EconoFact Chats features an abridged version of the EconoFact Ask Me Anything Webinar held on April 22nd, featuring Maurice Obstfeld, former Chief Economist at the IMF, and a member of the Council of Economic Advisors. Maury answers questions on the role of international trade in the US economy, tariffs and their consequences, dollar weakness, and prospects for the U.S. and the global economy. EconoFact’s monthly Ask Me Anything Webinars are exclusively available to our Premium Subscribers. The modest $50 annual fee for becoming a Premium Subscriber supports EconoFact and its efforts to bring timely, accessible, unbiased, and nonpartisan analyses on important economic and social policy issues to the public. You can sign-up for a Premium Subscription at https://secure.touchnet.net/C21525_ustores/web/store_main.jsp?STOREID=157

Robert Lawrence, the Albert L. Williams Professor of International Trade and Investment at Harvard Kennedy School, dives into the decline of manufacturing jobs and its impact on those without college degrees. He discusses whether this decline is a natural evolution of economies and if manufacturing can still offer pathways to stable employment. Lawrence emphasizes the importance of policies like training programs and wage insurance to support job mobility and foster inclusive growth, all while considering the critical role of manufacturing in national defense and technology.

About one in five Americans receive retirement, survivor, disability, or supplemental income Social Security benefits. These payments represent a vital financial safety net, especially for retirees who have had modest lifetime earnings. This importance of Social Security makes reducing its benefits the “third rail” of American politics. But its pay-as-you-go structure – where today’s workers fund today’s retirees – threatens its fiscal solvency as fertility rates fall and aging baby boomers exit the labor force. Is there a way to keep the safety-net solvent? What's at stake if Social Security reform is unaddressed? Gopi Shah Goda joins EconoFact Chats to discuss these issues. Gopi is the Director of the Retirement Security Project, the Alice M. Rivlin Chair in Economic Policy, and Senior Fellow in Economic Studies at The Brookings Institution. She served as a Senior Economist for the Council of Economic Advisors in 2021 to 2022.

The U.S. dollar is the most widely used currency in global commerce. Many commodities are priced in dollars. Much of world trade in goods and services, as well as in financial instruments, is denominated in dollars, even when U.S. residents are not party to either side of the transaction. U.S. Treasury bonds have been the world’s safe-haven asset. Has the U.S. benefited from the dollar's role in international trade and finance? Is dollar dominance waning under current U.S. policies? If so, what are the likely consequences? Paul Blustein joins EconoFact Chats to discuss these issues. Paul is a Senior Associate at the Center for Strategic and International Studies. He is the author of 'King Dollar: The Past and Future of the World's Dominant Currency.'

This EconoFact Chats episode is an abridged version of the EconoFact Ask Me Anything Webinar held on March 26th that featured John Campbell (Harvard), one of the leading authorities on finance and financial markets. John addressed questions on stock market performance, the links between financial markets and the broader economy, the need for consumer financial protection, and strategies for personal financial security. John's forthcoming book is 'Fixed: Why Personal Finance is Broken and How to Make it Work for Everyone.' EconoFact’s monthly Ask Me Anything Webinars are exclusively available to our Premium Subscribers. The modest $50 annual fee for becoming a Premium Subscriber supports EconoFact and its efforts to bring timely, accessible, unbiased, and nonpartisan analyses on important economic and social policy issues to the public. You can sign-up for a Premium Subscription at https://secure.touchnet.net/C21525_ustores/web/store_main.jsp?STOREID=157

United States Treasury bonds have long been viewed as a highly liquid investment with very little risk of default. They have served as a safe haven for investors and also provided a benchmark interest rate for mortgages, car loans, corporate debt, and other bonds. Typically, Treasury bond yields fall at times of financial stress as demand for Treasury securities rise. But this time is different. Bond prices have fallen and yields have risen in the wake of the policy volatility of the past month. Jeremy Stein joins EconoFact Chats to discuss the reasons for the increase in interest rates, its possible consequences, and policies to calm the bond market. Jeremy is the Moise Y. Safra Professor of Economics at Harvard University. Previously, he served as a member of the Board of Governors of the Federal Reserve. He was also an advisor to the Treasury Secretary during the 2008 Global Financial Crisis.

Ben Harris, a former Treasury Chief Economist, and Wendy Edelberg, director at the Hamilton Project, tackle the pressing issue of U.S. federal debt and its potential economic fallout. They discuss the unsustainable growth of debt relative to income and its implications for Social Security, particularly for future retirees facing possible cuts. The conversation highlights the need for bipartisan solutions to ensure fiscal solvency and maintain equitable support for the economy. Tune in for insights on the balance between government spending and the financial security of individuals!