Why Workers Are Getting Less of What the Economy Produces | Off The Clock

Justin Wolfers (0:00)

So the first 100 million dollars, maybe I can keep making my life a little bit better. After 100 million dollars, what is money buying you? I think it is buying you something. The only thing you can buy with 101 million dollars that you couldn't buy with 99 million is power.

The work week may be over, but the economy, it never takes time off. I'm Justin Wolfers, and this is the first ever live edition of Off the Clock from Platypus Economics. This is a very special show because today I'm coming to you live from Stanford University's Initiative for Financial Decision Making. And we have something of a live audience with us. Hey, g'day out there, folks. Say g'day.

Those were some astonishing Aussie accents. You just get them everywhere through California. I am joined once again by my friend and literally America's favorite economics journalist, Stacey Vanek Smith. And we're going to unwind the week's news.

Stacey Vanek Smith (1:11)

Thank you, Justin, for that incredibly generous introduction. Yes, I am a columnist for Bloomberg Business Week and co-host of the podcast, Everybody's Business. And it is very exciting to be in front of a live audience. Hello, everyone. And it's beautiful Stanford where it is very dreamy.

Justin Wolfers (1:27)

Everything is actually kind of amazing here. So great to have you Stacey. Let me just explain a little bit. Well, actually, first of all, there was the big jobs numbers. We're going to talk about that in a separate video. So instead of that, we're going to pick through the week's headlines and tell you what you can be concerned about, what you can safely ignore. And I know you Stacey, always the optimist. You're going to find those silver linings, aren't you?

Stacey Vanek Smith (1:52)

I do try to find silver linings. Yes.

Justin Wolfers (1:55)

And so here's just a little bit of background. We're coming to you from Stanford. Stacey and I were both at a conference on how to teach personal finance. I got to tell you, Stacey, I came away from this conference inspired.

Stacey Vanek Smith (2:09)

Yes, I feel like you said activist. I feel like you've used the word activist.

Justin Wolfers (2:14)

I did not say activist. I said radicalized. Now, activists are radical. Let me tell you what I got radicalized by. First of all, my mission, Platypus Economics, our mission, we want to teach the world economics.

Sometimes when you're a bloke alone in his studio, sitting in his basement, a little secret, that's what Platypus Economics is, feels a little lonely. But to be in a room with 200 people who are out there, taking that mission absolutely seriously, they're trying to teach the world the parts of economics that overlap with, how do you run your economic life, financial life a little more efficiently, ensure that you're going to be good for a rainy day. Make sure those bastards on Wall Street. Do we swear here?

Stacey Vanek Smith (2:56)

I don't know. This is your company. So do we?

Justin Wolfers (3:00)

Well, it's Stanford. So maybe I should use longer words. Yes.

Stacey Vanek Smith (3:05)

You should use longer words.

Justin Wolfers (3:07)

And I should, what's the sort of a tick forward word I could use right now?

Stacey Vanek Smith (3:12)

Disrupt.

Justin Wolfers (3:13)

I could disrupt. And we folks here are trying to disrupt. You nailed that.

11 out of 10

Stacey Vanek Smith (3:19)

Thank you. I'm pretty proud of myself right now, I will admit.

Justin Wolfers (3:23)

You just disrupted my disruption of failing to disrupt. I appreciate you so much. So these folks really are trying to disrupt the financial world. Too much of the financial world is about charlatans trying to hawk, get rich quick programs so they can buy a bigger sports car.

Stacey Vanek Smith (3:40)

Well, and I would argue there's a big appetite for it right now between gambling markets and I mean, I feel like the line between investment and gambling has never quite been this blurry.

Justin Wolfers (3:55)

So blurry.

Stacey Vanek Smith (3:55)

We've got like the stock exchange investing in polymarket and it is an interesting time.

Justin Wolfers (4:01)

So blurry.

Stacey Vanek Smith (4:02)

Managing money.

Justin Wolfers (4:03)

To me, it feels like being in an Australian bushfire.

Stacey Vanek Smith (4:08)

What is an Australian bushfire?

Justin Wolfers (4:09)

Well, okay, it's a fire in the bush. I guess in America you call it a forest fire?

Stacey Vanek Smith (4:14)

Okay. Yes.

Justin Wolfers (4:15)

You didn't know what a bushfire was?

Stacey Vanek Smith (4:16)

Well, I just, I don't like to assume.