The Economics of Feeling Ripped Off | The Professor Is In
Summary
Justin Wolfers and Megan Connors discuss the economic fallacy of lowering absolute prices versus reducing inflation, explaining why deflation risks severe recession. They analyze why wages generally keep pace with inflation through job switching, though current low labor churn and declining labor share exacerbate affordability pain. The episode concludes by linking record public pessimism to eroded trust in institutions and perceptions that businesses are exploiting inflationary periods.
Topics discussed
Intro, sponsors, and episode overview
Why lowering prices is economically dangerous
Affordability crisis and salient price increases
Historical supply shocks: OPEC and Ukraine
Sponsors: DeleteMe, ChatGPT, Brahmi, Resorts World
Job switching as the driver of wage growth
Declining labor share of income
Public pessimism and distrust in institutions
Outro and final sponsor messages
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