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Platypus Economics with Justin Wolfers

@platypuseconomics

Economics. Explained. Clearly. That's the mission of Platypus Economics. We’re launching today with big ideas, full hearts, and a lot of hope. Join us on our journey to see the world more clearly.

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More from Platypus Economics with Justin Wolfers

One more sleep until I can tell you what I've been working on. Can't wait.

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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.

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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.

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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.

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Kids often pick up on something economists downplay: people care not just about prosperity, but about whether technologies like AI are changing the world in ways that no longer feel predictable or secure.

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Since Trump returned to office, 86% of net new payroll jobs have gone to women. Women now hold slightly more nonfarm payroll jobs than men — 50.02%.⁣ ⁣ The labor market has shifted. The question is whether our policies and politics have noticed.

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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.

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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

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Debt by itself is a lousy guide. A $500,000 mortgage can be manageable or terrifying depending on salary, rates, and future earnings. Same with countries: the real question isn’t “how much debt?” but “can they carry it?”

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Deficits aren’t inherently good or bad. They’re a tool. The real question is: what problem are they solving? Econ is annoyingly context-dependent like that.

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