The Economics Show

Mass immigration is demographically essential but politically impossible – so argues Lant Pritchett, development economist and visiting professor at the London School of Economics. As populations age in the rich developed countries, immigrant workers will be needed to help with the burden of providing for the elderly. Removing the barriers might also be the quickest way to raise living standards for people in the developing world. But doing so would require swimming against a rising tide of anti-immigrant populism. Pritchett thinks he has a solution – allowing immigrants to come and work temporarily on strictly time-limited contracts. But does his idea stand up to scrutiny?Martin Wolf is chief economics commentator at the Financial Times. You can find his column hereSubscribe to The Economics Show on Apple, Spotify, Pocket Casts or wherever you listen.Read a transcript of this episode on FT.com

The US has just overcome one abrupt spike in inflation, which may have cost Kamala Harris her bid for the presidency. But now President-elect Donald Trump’s policy agenda threatens to cause another one. That’s according to Larry Summers, the former US Treasury Secretary and President Emeritus of Harvard University. He speaks to the FT’s Martin Wolf – who is standing in for Soumaya Keynes while she is on maternity leave – about the risks to economic stability posed by Trump’s proposed tax cuts, trade tariffs and mass expulsion of illegal immigrants, as well as his threats to the rule of law.Martin Wolf is chief economics commentator at the Financial Times. You can find his column hereSubscribe to The Economics Show on Apple, Spotify, Pocket Casts or wherever you listen.Read a transcript of this episode on FT.com

It’s a treacherous time for the Eurozone. Inflation is falling, yes, but at the same time signs of real economic weakness are growing. And there are risks on the horizon, from rising debt to trade wars to real wars. It’s a perfect time to speak to our guest Philip Lane, chief economist of the ECB and a member of its executive board. And this week we have a co-host as well, Frankfurt bureau chief and ECB correspondent Olaf Storbeck.For Philip Lane’s recent speech on monetary policy uncertainty, see hereSoumaya Keynes writes a column each week for the Financial Times. You can find it hereSubscribe to Soumaya's show on Apple, Spotify, Pocket Casts or wherever you listen.Read a transcript of this episode on FT.com

The UK is lagging behind its peers in the Eurozone. Its per capita GDP trails that of France and Germany, and yet its housing and energy is scarcer and more expensive. A recent essay by Sam Bowman, co-authored with Ben Southwood and Samuel Hughes, argues that Britain has struggled over the past 15 years because it has “banned the investment in housing, transport and energy that it most vitally needs.” Sam Bowman is a founding editor of Works in Progress, has served as director of competition policy at the International Center for Law & Economics and as executive director of the Adam Smith Institute. Today on the show, we ask him if Britain’s failure to launch is really a failure to build. Soumaya Keynes writes a column each week for the Financial Times. You can find it hereSubscribe to Soumaya's show on Apple, Spotify, Pocket Casts or wherever you listen.Read a transcript of this episode on FT.com

Politicians on both sides of the Atlantic are having heated conversations about whether or not governments can be made more efficient. The results include two new agencies, Elon Musk’s ad hoc Department of Government Efficiency, and Labour’s Office for Value for Money. But when it comes to improving public services, the challenges are neither new, nor easy to navigate. This week, we are asking how to make the government more efficient. And we’re asking the UK’s former chancellor of the exchequer, Jeremy Hunt.Soumaya Keynes writes a column each week for the Financial Times. You can find it hereSubscribe to Soumaya's show on Apple, Spotify, Pocket Casts or wherever you listen.Read a transcript of this episode on FT.com

Trump is returning to office with many of the same policies that characterised his last term. And for economists, none looms larger than the prospect of significant new tariffs. But are tariffs really as destructive as feared? After all, the Biden administration maintained most of them and the economy has remained strong. Today on the show, we put the question to Kimberly Clausing, a professor at UCLA, and formerly lead economist in the Biden administration's Office for Tax Policy.Soumaya Keynes writes a column each week for the Financial Times. You can find it hereSubscribe to Soumaya's show on Apple, Spotify, Pocket Casts or wherever you listen.Read a transcript of this episode on FT.com

Michael Clemens of George Mason University is an expert on the economics of migration, and a scholar of its history. With the newly elected President Trump promising to deport millions of immigrants, we thought it was the perfect time to talk about what illegal immigrants mean to the present economy and, more pressingly, what an economy without them might look like.Soumaya Keynes writes a column each week for the Financial Times. You can find it hereSubscribe to Soumaya's show on Apple, Spotify, Pocket Casts or wherever you listen.Read a transcript of this episode on FT.com

In 2025, some major provisions in the Tax Cuts and Jobs Act are going to expire. Meanwhile, spending is likely to rise. That means there is going to be a conversation about tax policy. Natasha Sarin was a counselor to Treasury secretary Janet Yellen at the US Treasury, and is now a professor at Yale and president of the Budget Lab, a research centre analysing US policy. And one thing she has been studying is the tax position of many of the ultra-wealthy. Much of their wealth is in stocks, which aren’t taxed until they’re sold. This week we are going to ask, what is the best way of taxing the top 1 per cent?Soumaya Keynes writes a column each week for the Financial Times. You can find it hereSubscribe to Soumaya's show on Apple, Spotify, Pocket Casts or wherever you listen.Read a transcript of this episode on FT.com

Intuitively, research and development is a building block of a productive future. But exactly how important is it, and can we put a number on it? Heidi Williams is a professor of economics at Dartmouth College, and an expert on innovation policy. She is also a visiting fellow at the Congressional Budget Office. Today on the show, she joins Soumaya Keynes to discuss public and private funding for R&D, how the two sources interact, and what we can know about how much it’s all worth to the economic future of a country. Soumaya Keynes writes a column each week for the Financial Times. You can find it hereSubscribe to Soumaya's show on Apple, Spotify, Pocket Casts or wherever you listen.Read a transcript of this episode on FT.com