Debunking Economics - the podcast

Lesotho (pronounced ,li-su-tu0 is a small African nature that President Trump  threatened with 50% tariffs, describing as a country nobody had ever heard of. Maybe that’s enough for his disciples to dismiss the hardship tariffs will place on the country, where youth unemployment is rife and the minimum wage is US$100 per month. Phil says twenty years ago America was trying to help countries like Lesotho, with tariff free trade to help the economy grow. Why? Because as Steve points out, if developing countries grow, they will buy more American goods. Cut their trade off at source and people suffer. Or Lesotho, and other developing nations, develop closer ties with China and expedites its path to being the largest economy in the world. Hosted on Acast. See acast.com/privacy for more information.

There is a huge reliance on data to aid decision making – whether it’s Investors wanting to know where to move money, central banks pretending to understand the economy, governments making policy decisions or companies planning for their future. Sadly, data collection faces two challenges. One is a lack of sufficient government spending. As Steve points out, perhaps Texas would be more prepared for the horrendous flooding of the last few weeks, if they hadn’t sacked so many meteorologists. The other problem is the increasing unwillingness of the public and businesses to complete surveys. Fortunately, as Phil points out, data is now being collective more from primary sources -like bank records or store transactions. That’s a big step forward, but a lot of data is based on answering traditional questions, like what’s our GDP? It’s base don conventional thinking. Phil asks whether we should be paying more attention to money supply whilst Steve says understanding company mark-ups would also be a good predictive indicator. What data sets do you think are missing? Hosted on Acast. See acast.com/privacy for more information.

In real terms the amount the UK spends on healthcare has risen from £500 in 1970 to £3,000 per person today. That’s a massive increase, but the payback has been that we are living 10 years longer. Ask people if they would be prepared to spend 10% of their income to live ten years longer, most would say yes. Yet we have a real problem in having the government spending more on healthcare.As always, it gets back to the question of where is the money coming from? A government provided healthcare system is funded with government created money. A privatised system is vying for a share of your pay packet, using money that is already in circulation.Phil and Steve discuss how our approach to healthcare is based on the standard question of, ‘where does the money come from?’, rather than ‘what can we be doing to make everyone’s life that much better?’ Hosted on Acast. See acast.com/privacy for more information.

Financial markets don’t like it when governments announce plans to spend more money. That’s why there’s concern over Donald Trump’s Big Beautiful Bill, which will add, by some accounts, $4 trillion to the US budget deficit over the next decade. Steve Keen says it’s not a problem. Banks buy up the bonds and the central bank ensures they have the liquidity to do so.  In which case, why are people ditching US bonds in favour of other sovereign debt elsewhere? And isn’t there a risk that higher treasury yields will reduce the differential with corporate bonds, which could discourage investment in the real economy? As Phil and Steve nut it out, they both agree, Trump’s bill is a bad one when it comes to income distribution. It assumes trickle down economics. When has that ever worked? Hosted on Acast. See acast.com/privacy for more information.

The discussion centers on the declining dominance of the U.S. dollar, which has dropped from 71% to 58% in foreign reserves. It highlights the motivations behind de-dollarization, particularly China's shifting role. The complexities of currency dynamics and speculative trading are explored, revealing their impact on international relations and economic stability. A look at alternatives to the dollar and the potential rise of a tech-driven currency system adds depth to the conversation. Historical shifts in financial practices also provide insight into future possibilities.

The podcast dives into the concept of manufacturing fetishism, highlighting its global implications and questioning the wisdom of government support for a sector that may not yield the best economic outcomes. Discussions revolve around the challenges facing American manufacturing, including skill loss and inefficiencies, contrasted with Japan's resilience. The narrative critiques protective tariffs and incentives, urging a balanced view of manufacturing's role versus the service economy. Listeners are encouraged to consider how personal values intersect with economic choices.

The podcast tackles the irony of inheritance tax on farmers while discussing the UK's dependency on food imports. It highlights Jeremy Clarkson's tax loophole from his farm purchase. The conversation encourages UK self-sufficiency in food production, contrasting it with France's high self-reliance. Further discussions explore the impacts of deregulation on health and the environment, alongside innovative farming methods like vertical farming. Ultimately, it addresses the balance between economic sustainability and cultural preservation in agriculture.

Bill Gates envisions a two-day work week thanks to AI, prompting a reevaluation of our workplaces. There's a debate about whether new jobs will emerge as automation takes over existing roles. The discussion highlights rising housing costs and workforce stress exacerbated by neoliberal policies. With automation potentially leading to greater economic disparities, voices call for universal basic income solutions amid concerns about increasing energy consumption from AI. The landscape of labor and tech ethics raises urgent questions about our societal future.

The podcast dives into the insurance industry's struggle with rising premiums and the exclusion of lower-income households. It suggests that insurers might drive climate change action more effectively than politicians, acting as a warning system. Personal anecdotes reveal frustrations with navigating insurance complexities. The discussion also highlights the need for government-run insurance models amidst increasing uninsurable areas and the urgent adaptation required from the industry as catastrophic events surge, marking critical intersections of finance and the environment.

Discussing the unsettling reality of future pandemics, experts predict another outbreak could happen in the next five to eight years. They highlight governmental spending failures and the need for better understanding of economic systems to bolster preparedness. With humor and critical insight, they examine the evolving threat of viruses and the lasting impacts of COVID-19. The conversation also touches on the financial struggles of the NHS and advocates for innovative healthcare solutions to ensure a robust response to looming health crises.