EconoFact Chats

Economies have been subjected to profound disruptions from technological change in the past -- from the adoption of weaving machines in the 19th century, to the mechanization of agriculture, and the use of robotics in manufacturing. Yet, these disruptions very often led to a broad increase in societal wealth, and the creation of entirely new occupations. Will generative AI both disrupt and benefit economies? Michael Strain joins EconoFact Chats to make a case for AI optimism, highlighting how America's experiences with technology-driven disruption have proved a net benefit historically. Mike is the Director of Economic Policy Studies, and the Arthur F. Burns Scholar in Political Economy at the American Enterprise Institute. He is also a member of EconoFact's board of advisors.

Charitable giving in the United States as a percentage of national income, about 2%, is significantly higher than the comparable percentage in other rich countries. How do people decide which causes to support? One approach is “effective altruism” which focuses on what’s important (primarily saving lives, no matter where), what’s effective but neglected (saving lives in extremely poor countries), and what’s tractable (by being able to quantify the efficacy of charity). Jonathan Meer joins EconoFact Chats to discuss these tenets, the assumptions behind them, whether charity can, and should, replace the role of government assistance, and offers some critiques of effective altruism as a way to make the world a better place. Jonathan is a Professor of Economics at Texas A&M University.

The United States bills itself as a land of opportunity; where economic and social advancement depend on abilities, skills, and drive, rather than the circumstances into which one is born. But is this characterization accurate? How does the U.S. compare to other countries in terms of socio-economic mobility across generations? And does the ability to change one's economic lot differ much by race, income, and national origin? Steven Durlauf of the Harris School, at the University of Chicago joins EconoFact Chats to discuss these issues, and to highlight ways policymakers can broaden opportunity for socio-economic advancement across racial and income groups in the U.S. Steven is the Director of the Stone Center for Research on Wealth, Inequality, and Mobility at the University of Chicago. Note: This podcast was first published on 18th June, 2023.

Middle-income jobs have been declining over the past decades, leaving behind a polarized workforce, with one group of people doing high-skilled, well remunerated work, and another growing set, that are in low-wage, relatively economically insecure positions, that don't have much of a career ladder. Automation, globalization, and the shrinking role of unions have all contributed to the hollowing out of middle-wage jobs, exacerbating wage inequality among American workers. In the current economic recovery, however, there are hopeful signs that labor demand, and worker activism might improve conditions for low wage workers. This week on EconoFact Chats, David Autor discusses the economic forces behind the hollowing out of the middle class, and what types of policies can help expand opportunities for those left behind.  David is Ford Professor in the MIT Department of Economics and co-director of the NBER Labor Studies Program. Note: This podcast was first published on 19th December, 2021.

How do people come to their views on issues like income inequality, tax policy, and immigration policy? What is the role of personal experience in forming these opinions?  Do people’s views change when they are confronted with new information that challenges their existing ideas? This week on EconoFact Chats, Stefanie Stantcheva explains how divergent social and political views can become entrenched, and why facts alone often aren’t sufficient to change one's mind. Stefanie is the Nathaniel Ropes Professor of Political Economy at Harvard University and founder of its Social Economics Lab. Note: This podcast was first published on 3rd April, 2022.

To what extent does where you live determine how you live? In particular, does growing up in a poor neighborhood reduce one's chances for economic and social advancement, greater educational achievement, and better health? Poor people typically live in poor neighborhoods. But would those people do better living in better-off settings? If so, what government policies could help? To discuss these issues, Lawrence Katz of Harvard University joins EconoFact Chats. Larry is the Elizabeth Allison Professor of Economics at Harvard. He served as Chief Economist at the U.S. Department of Labor. His research focuses on labor economics, and on the impact of public policies designed to address social problems. He led the Moving to Opportunity study, a major randomized housing mobility experiment sponsored by the U.S. Department of Housing and Urban Development. Note: This podcast was first published on 23rd October, 2022.

There's evidence that economically better-off voters tilt Republican. But there is a paradox. While richer voters tilt Republican, richer states tend to vote Democrat. To discuss this apparent paradox, as well as issues of poll accuracy, and how much the state of the economy has mattered in recent mid-term elections, EconoFact Chats welcomes Andrew Gelman of Columbia University. Andrew is a professor of statistics and political science at Columbia. His work has focused on a range of topics, including why it is rational to vote, and why campaign polls are so variable, when elections are often predictable. Note: This podcast was first published on 6th November, 2022.

Doug Irwin joins Michael Klein on EconoFact Chats this week to discuss how ideas about free trade have changed over the last 250 years. While most economists today agree that free trade improves productive efficiency and offers consumers better choice, some of the objections to trade expressed by historical figures ranging from Alexander Hamilton to John Maynard Keynes still resonate in contemporary debates. The author of numerous books, including most recently, 'Clashing Over Commerce: A History of US Trade Policy,' Irwin breaks down their arguments while explaining some of the central concepts of international trade relevant to the world economy today.  The conversation explores the relationship between trade and industrialization and the role of technological change in manufacturing employment.  Note: This podcast was first published on 7th June, 2021.

Presidential candidates promise economic prosperity. Yet views on how to achieve economic prosperity can diverge significantly — as they do between the policies of President Biden, which are likely to be largely adopted by the new Democratic nominee, and those of Presidential Candidate Trump. Will their proposed policies on taxes, immigration, tariffs, and subsidies foster economic growth, low inflation, a vibrant labor market, and a healthy macroeconomy? Mark Zandi, Chief Economist at Moody’s Analytics joins EconoFact Chats to discuss the macroeconomics of the outcome of the Presidential and Congressional elections based on a new analysis co-authored with Brendan La Cerda and Justin Begley. Note: This podcast was recorded on 19th July, 2024.

Many view the greater integration of the world economy as a relatively modern phenomenon. Christopher Meissner puts the current level of international trade, the depth of global capital markets, and immigration in historical context, drawing on his new book One From the Many: The Global Economy Since 1850. Christopher explains how both technological and political changes since the mid-19th century have affected the integration of the world economy. He also discusses how trade, capital flows, and migration have created benefits that made many people better off, but this has been uneven and some people have been left behind. Christopher is a Professor in the Department of Economics at the University of California, Davis, and a Research Associate of the National Bureau of Economic Research.