The State Of The Economy: Unpacking The Numbers And Politics
The State of the Economy: Unpacking the Numbers And Politics
Economist Dr. Matt Will joined Tony Katz to break down the latest GDP numbers and the implications of the US’s recent move to prop up the Japanese economy.
The conversation started with a discussion of the US GDP, which grew at a rate of 1.5% in the second quarter. However, Dr. Will argued that this number is misleading, as it doesn’t account for the government’s role in the economy. “The government portion of the GDP was reduced, which is a good thing,” he said. “You and I, everyone listening to the show knows that the smaller government is better.”
The conversation then turned to the topic of inflation, which has been a major concern for economists and policymakers. Dr. Will noted that the inflation rate is still over 5% and that the Federal Reserve’s decision not to raise interest rates is a sign that they’re accepting the current state of affairs. “I don’t agree that we’ve accepted it,” Dr. Will said. “I don’t accept inflation. And if Wall Street is accepting it, shame on them.”
The segment also delved into the recent move to prop up the Japanese economy by buying yen with euros. Dr. Will explained that this move is not just about economics, but also politics. “The US bought yen, took them out of circulation, and made the yen stronger,” he said. “That reduces their inflation, and that’s a good thing for them, but it also makes the yen stronger against the dollar, which weakens our currency.”
Listen to the full segment to hear more about:
- The flaws in the GDP formula and how it affects the way we understand economic growth
- The impact of government spending on the economy and the role of the Federal Reserve
- The politics behind the US’s move to prop up the Japanese economy
- The implications of the current state of inflation and the Federal Reserve’s response
- The ways in which economics and politics intersect in the global economy
Don’t miss this insightful conversation with Dr. Matt Will and Tony Katz. Listen to the full episode here!
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