The New Bazaar

What is the right foreign economic policy toward China? Did the Fed cut rates in time to avoid a recession? Have agglomeration economies been changed by work-from-home and the dematerializing economy? On September 21st, Paul Krugman joined host Cardiff Garcia live on stage for a sweeping conversation at the #EconTwitterIRL conference in Lancaster, Pennsylvania. They discussed not only Paul’s view of the economy and his achievements in economics, but also his approach to communicating his ideas about economics — which is likely to be as important a part of Paul’s legacy as the (Nobel prize winning) economics itself.Among the other topics they covered: Paul’s hippie-punching days in the 1990s How economic geography has changed through the decadesWhether place-based policy worksWhy a previous regret no longer bothers him muchHow Paul blends style and substance in his writing Why Democrats seem so bad at running big cities The work Paul is most proud ofAnd at the end of this fun, dense, and surprisingly humorous chat, you’ll hear Paul answer the questions he fielded from the audience of economists, journalists, think tankers and others in attendance.  RELATED LINKS: Incidents from my CareerHow I WorkWhat isn’t the matter with American WorkersTPP at the NABEHow Trump Is Undermining the Economy in Some Struggling CitiesGeography and Trade

"The introverts have taken over the US economy."That's the provocative title of a recent Bloomberg column from economist Allison Schrager. As she looked into the data on how Americans have been spending their time since the pandemic, she noticed that they are spending less time socializing with their friends on weekends and more time in front of screens. Even when they do go out, it's increasingly for an early dinner. That's all in addition to the bigger share of Americans who now work remotely, a trend that accelerated during the pandemic and is unlikely to ever fully reverse.Who are the winners and losers from these trends? And what's going on?Obvious explanations include pandemic experimentation, smartphones, better entertainment and telecommunications technologies. But Allison also likes to see these trends through the prism of risk. She tells Cardiff that the "risk-free rate" that Americans can earn from indoor, introverted activity has climbed. With so much choice over the movies, music, and books you can consume in your home, not to mention access to social media and swipe-able dating apps, you are guaranteed to have at least a pretty good time by staying in. Going out means making an "investment" with possibly more upside (meet the love of your life, see a memorable live performance, attend an epic party) but also a vastly more uncertain payoff.Allison and Cardiff discuss these ideas and whether the economy's new introvert-friendliness is likely to stay. They also talk about other trends that could soon favor extroverts, the risks of AI and automation in the labor market, and the skills and traits that will matter for the jobs of the future.Related links:The Introverts Have Taken Over the US Economy (Bloomberg column)Known Unknowns (Allison's newsletter)An Economist Walks Into a Brothel (Allison's book about risk)

When people talk about the crisis at the border between the US and Mexico, what specifically are they referring to?The Department of Homeland Security keeps track of a statistic called “border encounters” at the US border with Mexico. This includes primarily the large number of people who try to cross the border without documentation, or illegally, and aren't crossing at a formal port of entry. It also includes people who do try to cross the border at a port of entry but who are then found not eligible to be admitted into the US. In the past three years, under the Biden administration, the number of these border encounters each year has been more than quadruple the average of what it was throughout most of the previous decade, under the Trump and Obama administrations. The system for processing all these migrants has been entirely overwhelmed. And if you’re a politician or a pundit or someone else pushing an agenda, the temptation is to make it political. To argue that this is either all Joe Biden’s fault for being "too soft" on immigration, or the fault of Donald Trump for not fixing the problem sooner, or Congress for refusing to collaborate on a bill that would address the issue.Today’s guest does something different altogether. Andrew Selee is the head of the Migration Policy Institute, or MPI, which is the think tank Cardiff turns to when he wants factual, nonpartisan, non-stupid commentary on immigration—but especially when he just wants to inform himself on the topic outside the nonsense of how debates on immigration tend to play out in public.So Cardiff speaks with Andrew about the real, fundamental reasons behind the crisis at the border, and what can be done about it. They also talk about legal immigration, which despite many problems has actually been a kind of quiet success of recent years. Other topics they discuss include the two eras of border management, the multi-layered effects of the pandemic on immigration, and a new idea for how to reform immigration to become more responsive to the needs of the US labor market. Related links: Biden at the Three-Year MarkShifting Realities at the U.S.-Mexico BorderMigration at the U.S.-Mexico Border: A Challenge Decades in the MakingA New Way Forward for Employment-Based Immigration: The Bridge Visa

Who is the Magic Johnson of economics? Who was the Adam Smith of basketball?On this fun and oddball episode of The New Bazaar, Cardiff speaks with Tyler Cowen, economist and author of GOAT: Who is the Greatest Economist of all Time and Why Does it Matter? Inspired by the sportswriter Bill Simmons, Tyler wrote his book from the standpoint of a fan—having fun, taking sides, admitting biases, unapologetically trying to entertain the reader instead of presenting sober (boring) analysis. Cardiff and Tyler—both huge basketball fans—first discuss Tyler's ranking of the great economists and his lament for what economics used to be. Tyler also gives his reasons for releasing the book as a ChatGPT trained on its text, the first such book of its kind.Then begins the fun. They take turns finding analogs for the great economists from the history of the NBA. And they do the same in reverse for basketball's own GOATs. Which economist changed the nature of the field similar to the way Steph Curry set off the three-point revolution? Is there an economist whose comprehensive genius rivaled the ability of LeBron James to engineer exactly the outcome he wants on the court? What basketball player matched the charisma, brilliance, and even investment success of Keynes? And why does Cardiff argue that Tyler himself is the Charles Barkley of economists despite their differences in personality, size, and other obvious dimensions? All throughout the chat, Tyler and Cardiff are exploring the common traits that define greatness in both hoops, the social sciences, and perhaps other domains. A treat for fans of either economics or hoops, or who simply enjoy the virtues of fandom itself. Related links: GOATMarginal RevolutionThe Book of BasketballThe Kobe Question

Seth Stephens-Davidowitz has unusually written an unusual book.The data analysis included in "Who Makes the NBA?: Data-Driven Answers to Basketball's Biggest Questions" normally would have taken Seth, a trained economist, multiple years of writing and running code. But because of new artificial intelligence tools, he finished the book in just thirty days. And he used AI tools not just for the coding, but also for the artwork, copy editing, and even to write the appendix.He discusses with Cardiff the lessons he learned about using AI, and what such accelerated productivity might mean for the future of the labor market. Then they discuss the actual findings in the book, an investigation into the backgrounds of the basketball players who make it to the NBA and succeed when they get there. How much of success is genetic? What accounts for the NBA's market failures—the traits of players who get paid too much and too little relative to their contributions? Why do some foreign countries have such astonishing success at sending players to the NBA? Does the choice of college really matter for future success? The answers to these questions are surprisingly revealing about the experiences of non-basketball players, and about the relationships between luck, skill, parenting, undiscovered talent, the economy, and other familiar variables. Related links: Seth's home pageWho Makes the NBA? (Amazon page)

Martha Gimbel and Gopi Shah Goda were formerly economists within the White House Council of Economic Advisors, or CEA. They look back on their time inside an important economic policymaking institution, telling Cardiff about:Their favorite projectsToughest assignmentsThe relationship between CEA and other economic policymakersThe difference between academia and policy work What they might change about itCommon misconceptions about the work of economistsAnd Martha clears up a big misunderstanding about an infamous graph controversy. All this and more!

Angus Deaton—Scottish immigrant, Nobelist, and one of Cardiff's favorite economists—has written a new, forthcoming book titled Economics in America: An Immigrant Economist Explore the Land of Inequality. It’s great, if also hard to categorize. Partly it’s a memoir, about his humble origins in Scotland, where he was born; his studies at Cambridge with better-heeled peers; and his subsequent decades as a Princeton University, Nobel Prize winning economist. The book is also partly a reflection on a lifetime of practicing economics, and the good and bad of the economics profession. There's plenty of both.And finally it’s a series of observations about the American economy, including a fascinating self-analysis of his own ambivalence towards the US, his adopted country—the many great things here, including the lives that he and his family have led; and also, yes, some of the devastatingly grim things about life here for so many others. Related links: Economics in America, by Angus Deaton (available for pre-order)The Great Escape, by Angus DeatonMortality and the economy, featuring Anne Case and Angus Deaton

We're sharing another episode of a podcast we think you might like. It's called The Closer and it's hosted by executive producer of The New Bazaar, Aimee Keane. In each episode, Aimee speaks to dealmakers and insiders about landmark financial deals that have changed our lives in some way. In this episode, Aimee speaks to writer Abraham Josephine Riesman about Vince McMahon's influential dealmaking career. McMahon took over his father’s regional wrestling business in the 1980s, and made it into an international media and entertainment juggernaut valued at billions of dollars. This is the story of how McMahon cleverly bulldozed competitors, acquired rivals and capitalized on the public’s hatred of his tactics. Find The Closer here or by searching for the show on your podcast app of choice.