Chicago Booth Review Podcast

Elon Musk’s Department of Government Efficiency (DOGE) has taken a sledgehammer to Washington, closing government agencies and leaving many federal employees unsure if they still have jobs. Will that really make government more effective? Chicago Booth’s Rob Gertner says DOGE may end up creating a less effective and less efficient federal government. Rather than smashing things up, he advises focusing on incentives, funding and management. So how could we structure things to make government agencies worth their funding?

President Trump has accused the Federal Reserve of causing and failing to stop inflation. Instead, Trump says he will take care of the issue by producing more energy and boosting US manufacturing. Will the next four years see a confrontation between the Fed and the White House? We ask Chicago Booth’s Randy Kroszner—a former member of both the President’s Council of Economic Advisers and the board of the Federal Reserve—if the Fed and the White House are on a collision course.

Eric Zwick, a Chicago Booth professor specializing in tax policy, discusses the potential expiration of the 2017 Tax Cuts and Jobs Act. He delves into whether tax cuts truly yield the promised economic benefits and the uneven effects on different income groups. Zwick analyzes the balance between government spending and the national debt, the historical performance of recent tax reforms, and the ideological clash over tax policy. He also explores future proposals for tax cuts and their implications on inflation and government revenue.

Join Randy Kroszner, former member of the President's Council of Economic Advisers and the Board of Governors of the Federal Reserve, as he dives into Trump’s unique economic strategies. They discuss his use of tariffs as negotiation tools and the unpredictability of policy changes. Kroszner examines the implications of government shutdowns on economic stability and reflects on the challenges posed by a strong dollar. The conversation also touches on deregulation and its role in enhancing U.S. competitiveness amidst a complex economic landscape.

Michael Weber, a Chicago Booth researcher focusing on consumer behavior and tariffs, discusses the intriguing impacts of Trumponomics. He reveals how consumer expectations of rising prices are reshaping shopping habits and driving inflation. The conversation touches on the parallels between tariffs and sales taxes, leading to misconceptions that prompt stockpiling. Weber also highlights the tension between the Trump administration and the Federal Reserve, as they navigate the delicate balance between domestic job growth and inflation control.

Lisa Stefanik, an expert in interpersonal dynamics at Chicago Booth, shares valuable insights on the often uncomfortable subject of layoffs. She discusses how to communicate layoffs more humanely and consider the emotional impacts on both affected employees and remaining staff. Stefanik emphasizes the importance of compassionate messaging, strategies for managing these conversations with empathy, and utilizing professional networks post-layoff. She also highlights how to embrace layoffs as potential opportunities for growth.

Thomas Talhelm, a Chicago Booth researcher, dives into how different cultural practices around rice and wheat farming shape our understanding of happiness. He discusses the social dynamics of these communities, revealing that wealth doesn't always equate to joy. The intrigue continues as Talhelm unpacks how social comparison, particularly in the age of social media, impacts our well-being. He emphasizes the importance of focusing on personal growth over societal pressures, offering valuable insights into the happiness paradox.

Luigi Zingales, a Chicago Booth professor and expert on corporate governance, joins Amir Sufi, who studies financial crises and inequality. They explore the enduring factors behind Trump's appeal, highlighting the parallels between past and present electoral dynamics. Discussing economic anxieties, they reveal how inflation and globalization fears shaped voter sentiment. The rise of the far-right globally is also scrutinized, illustrating how systemic inequality and political disenchantment have fueled support for extreme movements, echoing earlier trends.

Stacey Kole, a Chicago Booth economist and expert in workplace management, dives into the often dreaded world of performance reviews. She challenges the traditional approach, advocating for continuous feedback over awkward periodic assessments. Kole discusses how meaningful evaluations can clarify corporate objectives and enhance teamwork. She stresses the importance of linking individual tasks to the company's mission, especially in remote settings, and highlights innovative practices that can improve communication and employee engagement.

James Janega, former journalist turned Managing Partner at Growth Innovation Strategy Group, shares insights on advocating for organizational change through storytelling. He emphasizes the importance of emotional and behavioral dynamics, using the 'do, feel, believe, act' framework. Janega discusses intrapreneurship, explaining how innovators can navigate resistance and foster innovation within established organizations. He highlights the significance of adaptable storytelling, urging listeners to tailor their narratives to engage various audiences and drive acceptance of new ideas.