Checking In on the Iran War

Is Skimpflation the New Inflation?

Econ 101: Is Air Quality a Public Good?

This Week's Silver Lining

In this episode of Off the Clock, Justin and Stacey break down some of the week’s biggest economic news — letting you know what to actually worry about, what you can safely ignore, and where to find some silver linings.

This week they discuss the collapse of the Iran ceasefire and what it might mean for the economy. They also break down the latest inflation numbers, why the relief is probably short lived, and how inflation is starting to show up in less obvious and more surprising ways.

Then, in response to the terrible air quality affecting both Ann Arbor and New York, Justin gives Stacey a quick lesson on public goods, before sharing a surprising good news milestone.

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

Follow on Social Media @PlatypusEconomics and @JustinWolfers

Follow Stacey @svankesmith

In this episode of Off the Clock, Justin and Stacey break down some of the week&rsquo;s biggest economic news &mdash; letting you know what to actually worry about, what you can safely ignore, and where to find some silver linings.
This week they discuss the collapse of the Iran ceasefire and what it might mean for the economy. They also break down the latest inflation numbers, why the relief is probably short lived, and how inflation is starting to show up in less obvious and more surprising ways.
Then, in response to the terrible air quality affecting both Ann Arbor and New York, Justin gives Stacey a quick lesson on public goods, before sharing a surprising good news milestone.
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

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

What Reese's Cups and Canadian Wildfires Can Teach Us About Economics | Off the Clock

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/498b707a-117b-4707-b55b-b48a0177d7fb/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

High inflation is still with us

What's actually new today

Two main drivers - tariffs and Iran

Prices up, wages down

Energy ticked down, but not enough

The burrito discourse (yes, really)

What it means for the Fed

Looking ahead to what's next

The newest inflation report is out, and Justin Wolfers walks you through what actually matters. Annual inflation is running at 3.4% — well above what the Fed wants, and high enough to explain why the checkout line still feels uncomfortable. Core inflation, which strips out food and energy to predict where prices are headed, sits at a better — but still high — 2.5%. July's monthly numbers came in almost exactly as economists expected, which is why the report is less "news" than confirmation: prices are still rising quickly, just about the way everyone thought they would.

Here's what it means for you. Prices are outpacing wages, so real (inflation-adjusted) pay has fallen over the past year — the average paycheck buys less than it did twelve months ago. Energy is the main culprit: gas is up 25% over the year, diesel 39%, and airfares have shot up on the back of it. If you're flying anytime soon, that ticket is a whole lot pricier. Justin also digs into the tariff story, the burrito discourse, a record 16% drop in lettuce prices, and the Fed's tough spot between stubborn inflation and slowing employment growth.

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

Follow on Social Media @PlatypusEconomics and @JustinWolfers

The newest inflation report is out, and Justin Wolfers walks you through what actually matters. Annual inflation is running at 3.4% &mdash; well above what the Fed wants, and high enough to explain why the checkout line still feels uncomfortable. Core inflation, which strips out food and energy to predict where prices are headed, sits at a better &mdash; but still high &mdash; 2.5%. July's monthly numbers came in almost exactly as economists expected, which is why the report is less "news" than confirmation: prices are still rising quickly, just about the way everyone thought they would.
Here's what it means for you. Prices are outpacing wages, so real (inflation-adjusted) pay has fallen over the past year &mdash; the average paycheck buys less than it did twelve months ago. Energy is the main culprit: gas is up 25% over the year, diesel 39%, and airfares have shot up on the back of it. If you're flying anytime soon, that ticket is a whole lot pricier. Justin also digs into the tariff story, the burrito discourse, a record 16% drop in lettuce prices, and the Fed's tough spot between stubborn inflation and slowing employment growth.
Subscribe on YouTube 👉 https://youtube.com/platypuseconomics Subscribe on Substack 👉 https://newsletter.platypuseconomics.com
Follow on Social Media @PlatypusEconomics and @JustinWolfers

Inflation Is Still High. Just As We Thought. | Diving In

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/d497d8f4-2a4c-4125-8ad6-b4a4010b2e57/transcript

What Reese's Cups and Canadian Wildfires Can Teach Us About Economics | Off the Clock

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