Professor Greg Mankiw is one of the most influential economists today: a New Keynesian, advisor to Presidents, and a good friend of Betsey Stevenson and Justin Wolfers. In this episode, the three of them discuss what we can learn from financial crises, why globalisation has lost its shine, and how best to communicate economic ideas.

Editor: Alastair Elphick. A Modulated Media production.

Professor Greg Mankiw is one of the most influential economists today: a New Keynesian, advisor to Presidents, and a good friend of Betsey Stevenson and Justin Wolfers. In this episode, the three of them discuss what we can learn from financial crises, why globalisation has lost its shine, and how best to communicate economic ideas.Editor: Alastair Elphick. A Modulated Media production.

From world events to everyday decisions, economics explains it all. Platypus Economics makes it clear, useful, and actually fun.

From world events to everyday decisions, economics explains it all. Platypus Economics makes it clear, useful, and actually fun.

Platypus Economics with Justin Wolfers

A Conversation with Greg Mankiw: Financial Crisis, Recessions and Communicating Economics

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/2956cd6b-cefe-4dc5-ac0e-b4340122fe70/transcript

An inflation report that didn’t tell us much

The July jobs report jolt

How lab-grown diamonds crashed prices

Chart versus Chart — Round 2

Justin Wolfers and Bloomberg's Stacey Vanek Smith pick through a week of confusing economic news on the latest episode of Off the Clock. 

First up, inflation. Inflation came in at 3.4% — not great, not terrible — but here's the part that stings: prices are still rising faster than wages and the average American paycheck buys less than it did a year ago. They also dig into the July jobs report and why it was a real jolt: the economy lost 23,000 jobs when forecasters expected a gain of 80,000, and earlier months got revised down too. 

Then Stacey talks to Justin about how lab-grown diamonds have absolutely crushed prices in this luxury industry (a $6,000 stone now sells for $10 at Walmart). This prompted a fascinating discussion on the diamond-water paradox, thinking at the margin, and why the AI shock to "cognitive work" may be the labor market's version of the same thing. 

Finally, Justin and Stacey cap off the episode with another round of Chart versus Chart. Be sure to vote for your favorite on the channel homepage for Platypus Economics.

Subscribe on YouTube https://youtube.com/platypuseconomics 
Subscribe on Substack 👉 https://newsletter.platypuseconomics.com

Follow on Social Media @PlatypusEconomics and @JustinWolfers
Follow Stacey @svankesmith

Justin Wolfers and Bloomberg's Stacey Vanek Smith pick through a week of confusing economic news on the latest episode of Off the Clock.&nbsp;
First up, inflation. Inflation came in at 3.4% &mdash; not great, not terrible &mdash; but here's the part that stings: prices are still rising faster than wages and the average American paycheck buys less than it did a year ago. They also dig into the July jobs report and why it was a real jolt: the economy lost 23,000 jobs when forecasters expected a gain of 80,000, and earlier months got revised down too.&nbsp;
Then Stacey talks to Justin about how lab-grown diamonds have absolutely crushed prices in this luxury industry (a $6,000 stone now sells for $10 at Walmart). This prompted a fascinating discussion on the diamond-water paradox, thinking at the margin, and why the AI shock to "cognitive work" may be the labor market's version of the same thing.&nbsp;
Finally, Justin and Stacey cap off the episode with another round of Chart versus Chart. Be sure to vote for your favorite on the channel homepage for Platypus Economics.
Subscribe on YouTube https://youtube.com/platypuseconomics&nbsp; Subscribe on Substack 👉 https://newsletter.platypuseconomics.com
Follow on Social Media @PlatypusEconomics and @JustinWolfers Follow Stacey @svankesmith

How Lab-Grown Diamonds Broke the Market | Off the Clock

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/395ff694-8646-4fc5-83ef-b4a6018393d4/transcript

Is this a global story or just American?

Are any countries bucking this trend?

Pros and cons of superstar firms?

What about market power in the labor market?

What’s Justin's policy prescription?

What if more workers owned capital?

Justin Wolfers sits down for The Professor Is In to answer your follow-up questions about labor's declining share of income — the reason a soaring market can coexist with wages that feel stuck. He explains that this isn't just an American story: across industrialized countries, workers have been getting a smaller cut of the pie for decades, which points less to any one country's politics and more at shared forces — bigger "superstar" firms, weaker union bargaining power, and a shared intellectual culture across the developed world.

Justin also unpacks monopsony power — what happens to your wages when only a handful of employers are hiring near you — with the classic example of Hershey, Pennsylvania. Then he gets to what we can actually do about it: stronger, more constructive unions, Australia's superannuation system that turns workers into owners of the stock market, and the "MeganBot 2000" thought experiment that shows why AI could either be utopia or dystopia depending on one very important thing — ownership.

Subscribe on YouTube 👉 https://youtube.com/platypuseconomics
Subscribe on Substack 👉 https://newsletter.platypuseconomics.com

Justin Wolfers sits down for The Professor Is In to answer your follow-up questions about labor's declining share of income &mdash; the reason a soaring market can coexist with wages that feel stuck. He explains that this isn't just an American story: across industrialized countries, workers have been getting a smaller cut of the pie for decades, which points less to any one country's politics and more at shared forces &mdash; bigger "superstar" firms, weaker union bargaining power, and a shared intellectual culture across the developed world.
Justin also unpacks monopsony power &mdash; what happens to your wages when only a handful of employers are hiring near you &mdash; with the classic example of Hershey, Pennsylvania. Then he gets to what we can actually do about it: stronger, more constructive unions, Australia's superannuation system that turns workers into owners of the stock market, and the "MeganBot 2000" thought experiment that shows why AI could either be utopia or dystopia depending on one very important thing &mdash; ownership.
Subscribe on YouTube 👉 https://youtube.com/platypuseconomics Subscribe on Substack 👉 https://newsletter.platypuseconomics.com

If AI Does Your Job, Who Gets Paid? | The Professor Is In

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/d30f0764-9378-427a-833e-b4a5013b827c/transcript

A record low labor share

Paycheck vs portfolio

Accounting for depreciation

Income reporting changes

Big firms changed the game

Power shapes who gains

AI shapes what's next

Putting the story together

The stock market keeps breaking records, but your paycheck doesn't feel like it. In this episode of Diving In, Justin Wolfers explains that disconnect with one number: labor's share of income has fallen to 54.4 cents on the dollar, the lowest share on record. And it’s significantly less than the two-thirds that was common for most of the last century.

Justin fires up the actual data to stress-test the claim — accounting for depreciation and tax-driven accounting tricks. But the decline is real and still stands. Then he sizes what it means for you: a five-point drop in labor's share works out to about $10,000 a year in lost wages for the average worker — while the gains flow overwhelmingly to the very top, where the richest households collect over half of all capital income.

Why is this happening? Giant firms that grow sales faster than payroll, weaker worker bargaining power, and globalization that lets your job move elsewhere. And now AI could either make you more productive and better paid — or automate your job and hand the upside to owners. How we slice that pie is up to us.

Subscribe on YouTube 👉 https://youtube.com/platypuseconomics
Subscribe on Substack 👉 https://newsletter.platypuseconomics.com

Follow on Social Media @PlatypusEconomics and @JustinWolfers

Cited Research:
The Rise of Pass-Throughs and the Decline of the Labor Share: https://zidar.princeton.edu/sites/g/files/toruqf3371/files/syzz2022.pdf
Not a Typical Firm: Capital–Labor Substitution and Firms’ Labor Shares: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/HubmerRestrepo_NotTypicalFirm_Oct2023.pdf
Automation and New Tasks: How Technology Displaces and Reinstates Labor: https://shapingwork.mit.edu/wp-content/uploads/2023/10/acemoglu-restrepo-2019-automation-and-new-tasks-how-technology-displaces-and-reinstates-labor.pdf

One more thing: When I create these videos, I often crunch a few numbers in Stata, with whom I’ve got a paid partnership. Today, I used it to compare labor's share of income with and without depreciation.

You can follow along with me here: https://platypuseconomics.com/stata/labor_share_worksheet.pdf

The stock market keeps breaking records, but your paycheck doesn't feel like it. In this episode of Diving In, Justin Wolfers explains that disconnect with one number: labor's share of income has fallen to 54.4 cents on the dollar, the lowest share on record. And it&rsquo;s significantly less than the two-thirds that was common for most of the last century.
Justin fires up the actual data to stress-test the claim &mdash; accounting for depreciation and tax-driven accounting tricks. But the decline is real and still stands. Then he sizes what it means for you: a five-point drop in labor's share works out to about $10,000 a year in lost wages for the average worker &mdash; while the gains flow overwhelmingly to the very top, where the richest households collect over half of all capital income.
Why is this happening? Giant firms that grow sales faster than payroll, weaker worker bargaining power, and globalization that lets your job move elsewhere. And now AI could either make you more productive and better paid &mdash; or automate your job and hand the upside to owners. How we slice that pie is up to us.
Subscribe on YouTube 👉 https://youtube.com/platypuseconomics Subscribe on Substack 👉 https://newsletter.platypuseconomics.com
Follow on Social Media @PlatypusEconomics and @JustinWolfers
Cited Research: The Rise of Pass-Throughs and the Decline of the Labor Share: https://zidar.princeton.edu/sites/g/files/toruqf3371/files/syzz2022.pdf Not a Typical Firm: Capital&ndash;Labor Substitution and Firms&rsquo; Labor Shares: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/HubmerRestrepo_NotTypicalFirm_Oct2023.pdf Automation and New Tasks: How Technology Displaces and Reinstates Labor: https://shapingwork.mit.edu/wp-content/uploads/2023/10/acemoglu-restrepo-2019-automation-and-new-tasks-how-technology-displaces-and-reinstates-labor.pdf
One more thing: When I create these videos, I often crunch a few numbers in Stata, with whom I&rsquo;ve got a paid partnership. Today, I used it to compare labor's share of income with and without depreciation.
You can follow along with me here: https://platypuseconomics.com/stata/labor_share_worksheet.pdf

No, the K-shaped Economy Isn't Over | Diving In

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/4526d608-a818-4034-bc51-b4a4011b5384/transcript

A Conversation with Greg Mankiw: Financial Crisis, Recessions and Communicating Economics

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