Platypus Economics with Justin Wolfers
@platypuseconomics
Right now, the AI boom mostly shows up as investment: chips, data centers, infrastructure. The real question is whether those foundations eventually help workers and firms do more with less.
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Think of an oil shock like a stone tossed in a pond. First splash: gasoline. Then the ripples: airfares, delivery costs, packaging, groceries, construction materials. The ripples are real. Just give them a moment to spread.
A 60-year low in sentiment is a big deal because the baseline is already tough: this survey has lived through recessions, inflation, wars, and financial crises. And yet this is worse. Read the full analysis on Substack: https://newsletter.platypuseconomics.com/p/consumer-sentiment-hits-a-record
A windfall profits tax sounds great as a one-off. But once investors expect it to happen again, it's no longer a windfall tax—it's just a profits tax. And that can discourage the investment you actually want.
$42 million raised sounds enormous. It is. But economics is about compared with what? If the Met Gala creates far more value for fashion brands than for the museum, then the ticket price is probably too low.
“There is no price tag in the economy as tall as gas prices, and that you pass as often.” Visibility matters. Economics isn't just about prices; it's about attention. Gas prices shape how people feel about the economy because they're impossible to ignore.
Economists call this diminishing marginal utility. The first dollars change your life. The billionth doesn't. So the argument stops being about consumption and starts being about power.
The problem with a gas tax holiday? Lower gas prices encourage more driving. If the goal is relief, send checks based on last year's gas spending instead. Similar help for households, without increasing demand.
Kevin Warsh once argued for rates that were too high for the economy, and he now seems politically reluctant to contradict Trump. That's a worrying combo. We'll find out soon enough which one shows up to work.
The key distinction is between nominal wages and real wages. Nominal wages are the dollars on your paycheck. Real wages are what those dollars can actually buy. If prices rise faster than pay, you’re going backwards.
Care work is often treated as somehow less "real" than making tangible goods. Nonsense. It's physically demanding, emotionally demanding, and often highly skilled. That's real work, mate. Check out the full analysis here: https://newsletter.platypuseconomics.com/p/the-pink-collar-economy-is-here
Rep Jim McGovern (D-MA) when GOP pulled an Iran War authorization vote off the schedule
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Faites rayonner vos réalisations et vos collaborations en proposant votre candidature pour le Prix Collaboration scientifique, établi par l'association entre le FRQ et l’Institut d'administration publique du Québec. 📆 Date limite : 10 avril 2026 ➡️ Les détails : https://tinyurl.com/5xb93aen
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[ 🇺🇸 ÉTATS-UNIS | 🇮🇷 IRAN ] 🔸 « Biden et Obama ont inspiré l'Iran à se doter d'une arme nucléaire » - Donald Trump.