Should we actually want prices to go down?

Are certain goods rising more than others?

Examples of past damaging supply shocks?

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Politicians keep promising to bring prices down. In this episode of The Professor Is In, Justin Wolfers explains why that's a terrible idea — and why it's not the same thing as slowing inflation. He walks through what actually happens if you force the price level down: wages have to fall too, stores go unprofitable, and the only reliable way to make it happen is to engineer a recession — possibly a depression. The sensible target isn't zero prices, but inflation low enough that you can forget about it.

Justin also digs into why your paycheck feels like it's losing the race even when, on average, it isn't. At least half of Americans saw wages beat prices last year — but the gains mostly go to people who switch jobs, and in today's low-hire, low-fire labor market, that door is barely open. So the raise you'd need to keep up is harder to reach right now, which could help explain why a record 71% of Americans expect prices to outrun their incomes (something that almost never actually happens).

What the $20 Burrito Debate Gets Wrong About Affordability https://omny.fm/shows/platypus-economics/burrito-gate-and-the-affordability-paradox-diving-in  

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Politicians keep promising to bring prices down. In this episode of The Professor Is In, Justin Wolfers explains why that's a terrible idea &mdash; and why it's not the same thing as slowing inflation. He walks through what actually happens if you force the price level down: wages have to fall too, stores go unprofitable, and the only reliable way to make it happen is to engineer a recession &mdash; possibly a depression. The sensible target isn't zero prices, but inflation low enough that you can forget about it.
Justin also digs into why your paycheck feels like it's losing the race even when, on average, it isn't. At least half of Americans saw wages beat prices last year &mdash; but the gains mostly go to people who switch jobs, and in today's low-hire, low-fire labor market, that door is barely open. So the raise you'd need to keep up is harder to reach right now, which could help explain why a record 71% of Americans expect prices to outrun their incomes (something that almost never actually happens).
What the $20 Burrito Debate Gets Wrong About Affordability <a href="https://omny.fm/shows/platypus-economics/burrito-gate-and-the-affordability-paradox-diving-in">https://omny.fm/shows/platypus-economics/burrito-gate-and-the-affordability-paradox-diving-in</a> &nbsp;
🔒 Get 20% off DeleteMe by going to https://joindeleteme.com/WOLFERS and use code WOLFERS to protect your privacy! 🙌
Subscribe on YouTube 👉 https://youtube.com/platypuseconomics Subscribe on Substack 👉 https://newsletter.platypuseconomics.com
Follow on Social Media @PlatypusEconomics and @JustinWolfers

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

The Economics of Feeling Ripped Off | The Professor Is In

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/a8f0d9b9-39b1-463e-bdc3-b4ab01297509/transcript