The hottest Economics Substack posts right now

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Government Science and the Prestige Economy

Richard Hanania's Newsletter • 1219 implied HN points • 14 Jun 25
🔬 Science Research Policy Innovation Economics History
  1. Government funding for science is important because there are some types of research that private companies won't invest in, even though they can benefit society. Basic research is valuable, even if it doesn't have immediate economic benefits.
  2. The idea of crowding out suggests that government funding may take talent away from private companies, but research shows that government support often leads to more innovation in the private sector as well.
  3. Prestige economies, which reward knowledge and research, can motivate scientists to do valuable work even if it doesn't yield direct financial gains. This is different from private sector jobs where profit is the main goal.

If AI Is So Great, Someone Should Tell GDP

The Algorithmic Bridge • 222 implied HN points • 05 Mar 25
🕹 Technology AI Economics Infrastructure Productivity Investment
  1. AI investments have been rising, but there's not much difference in overall economic growth or productivity. This makes us question if spending so much on AI is really worthwhile.
  2. Companies are unsure whether it's better to invest heavily in new AI technology or to optimize what they already have. It’s a tricky balance to strike.
  3. Despite the hype around AI, it hasn't significantly improved things like GDP or human well-being. It's clear that AI is still looking for its true role in boosting our economy.

How Trump’s Tariff Threat Made Apple Jump

Common Sense with Bari Weiss • 570 implied HN points • 24 Feb 25
💼 Business Economics Corporate Trade Investment Leadership
  1. Apple plans to invest $500 billion in the U.S., which could set a trend for other companies. This is a big decision that shows they are responding to economic pressures.
  2. Trump's comments on tariffs indicate he believes they can influence business decisions, like Apple's move to invest domestically.
  3. The situation reflects how political actions can have real effects on large businesses and their investment strategies.

​ GDP=C+G+I+NX

Points And Figures • 772 implied HN points • 04 Mar 25
💰 Finance Economics Investments Market Trends Government spending Inflation
  1. GDP is an important measure of how well an economy is doing. When GDP goes up, it usually means people are earning more and living better.
  2. Different economists have different views on government spending. Classical economists often see it as a negative thing for the economy, while Keynesians believe it can be beneficial.
  3. Current economic uncertainty affects business investment decisions, making it tough for the economy to grow. However, there are signs of recovery, like increased merger activity.

Top Links 653 How US asset managers are muscling into Europe. Japan restarts its reactors. Who buys guns? Mexico's energy revolution.

Chartbook • 429 implied HN points • 18 Feb 25
💰 Finance Investment Economics Global Markets Regulation Energy
  1. US asset managers are starting to play a bigger role in Europe, which could change the market dynamics there.
  2. Japan is bringing its nuclear reactors back online, impacting energy policies and production.
  3. There's a growing discussion about who is buying guns, which raises questions about safety and regulations.
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Why Is Homeowners Insurance Getting So Expensive?

Construction Physics • 35493 implied HN points • 23 Jan 25
💰 Finance Insurance Economics Real Estate Risk management Climate Impact Homeownership
  1. Homeowners insurance costs have risen a lot over the past years, with a 33% average increase between 2020 and 2023. This has made it tough for many to afford insurance, leading some to rely on state-backed options.
  2. While rising construction costs and home sizes explain part of the increase, climate change and more frequent severe weather events are likely major factors driving up insurance prices further.
  3. Interestingly, even though some types of damage have become less frequent, the cost to repair them has increased, particularly for wind, hail, and water damage, which contribute significantly to higher insurance losses.

加油比特币 Let's Go Bitcoin

Crypto Trader Digest • 2281 implied HN points • 28 Oct 24
🔮 Crypto Bitcoin Finance Economics Investment Market Trends
  1. Governments often inflate property bubbles to maintain public support, as owning property ties people's wealth to the state. If people feel secure about their homes, they're less likely to revolt.
  2. China is facing a property bubble crisis similar to those seen in other countries, and it might inject a lot of money into the economy to recover. This could lead to more yuan being traded for Bitcoin as people seek to protect their wealth.
  3. Even though the current stimulus might seem small, once people realize that money is being pumped into the economy, there could be a rush to buy Bitcoin. Historically, Bitcoin tends to rise sharply when significant money is printed.

Aenean Money

Contemplations on the Tree of Woe • 904 implied HN points • 13 Jun 25
🔮 Crypto Bitcoin Economics Finance Decentralization
  1. Money is a tool for exchange and social cooperation. It helps us trade goods and services efficiently, but it can also be corrupting.
  2. Aenean Money aims to blend the positive aspects of past monetary systems while avoiding their flaws. It should be a trustworthy and resilient form of money that everyone can use.
  3. Bitcoin is seen as a leading candidate for Aenean Money because it has unique features that might solve many current economic problems. It operates without central control and reflects real-world value through energy expended in its creation.

The Romance Novel Edition

Why is this interesting? • 965 implied HN points • 14 Feb 25
🎭️ Culture Literature Entertainment Society Gender Economics
  1. Romance novels offer escapism and predictable happy endings that many readers enjoy during tough times. They have become popular among diverse groups of women, from stay-at-home moms to college students.
  2. The romance genre focuses on female pleasure and sexuality while challenging societal views about women's desires. It mixes fun storytelling with important cultural discussions.
  3. Romance novels are a big business, outselling even the Bible. Many readers are not just fans—they are part of a community that engages with the genre through discussions, fan fiction, and events.

When are tariffs good?

Noahpinion • 19353 implied HN points • 06 Feb 25
🇺🇸 U.S. Politics Trade policy Tariffs Economics National Security Manufacturing
  1. Tariffs can help protect national security by ensuring that the U.S. maintains essential manufacturing capabilities for military needs. Having domestic industries ready to switch to military production is crucial in case of conflicts.
  2. Targeted tariffs can support 'national champions,' which are big domestic companies that can thrive by limiting foreign competition. This helps the country's economy by allowing its firms to earn more profit and create jobs.
  3. The infant industry argument suggests that tariffs can help new industries grow by shielding them from foreign competition until they are strong enough to stand on their own. However, broad tariffs should be carefully considered as they might not apply well to every situation.

Economics Roundup #5

Don't Worry About the Vase • 1836 implied HN points • 25 Feb 25
💰 Finance Economics Taxation Investment Debt Trade
  1. Many people believe that average tax rates and structures are unfair or ineffective. This could mean that policies need to evolve to better meet people's needs without creating high penalties for earning more.
  2. Trade barriers impact economic growth negatively, as they create higher costs in trade and limit opportunity for development across regions, both domestically and internationally.
  3. Access to credit can significantly influence people's financial wellbeing. If restrictions are placed on credit availability, it can harm those who are already struggling financially.

Male Workplace Subordination Is the Behavioral Sink

72 Degrees North • 59 implied HN points • 01 Nov 24
🇺🇸 U.S. Politics Capitalism Society Gender Economics Labor
  1. Many people today feel overwhelmed by the pressure of competition in the workplace, leading to a sense of hopelessness. This competition affects their self-esteem and can cause them to feel unappealing and worthless.
  2. Some argue that men are suffering more under current economic systems, feeling subordinate and less attractive due to their work situations. This can lead to a broader crisis that affects relationships and family life.
  3. There is a belief that our society needs to change the way we view work and success. Instead of relying on old structures that don't support everyone, we should create a system where all individuals contribute to and support each other.

Pride and Poverty? Lizzy Bennet's financial prospects.

The Common Reader • 1452 implied HN points • 10 Feb 25
📚 Literature Classics Analysis Feminism Economics Gender
  1. Lizzy Bennet's family has a good income, so she's not in danger of starving or facing true poverty. Even if she stays single, her situation is better than what some people think.
  2. The idea that Austen's characters face extreme poverty is overstated. Rather, their concerns are about losing status and a comfortable lifestyle, not about basic survival.
  3. When discussing genteel poverty, it's important to remember that Lizzy's financial prospects are still well above average for her time, making her situation more about class than actual financial distress.

Should economists read Marx?

Noahpinion • 37588 implied HN points • 13 Jan 25
🚌 Education Economics Philosophy History Theory Social Science
  1. Many economists don't need to read the original works of thinkers like Marx or Smith to understand economics. They usually study practical models and theories that help solve real-world economic problems.
  2. Modern economic education often emphasizes foundational papers by influential economists, which explain key concepts like market failures and public goods, rather than focusing on Marxist ideas.
  3. Reading Marx can be useful, but mainly as a cautionary tale about how economic theories, if misapplied, can lead to disastrous outcomes in real life. It reminds economists to approach their work with humility.

The vibes are bad

Alex's Personal Blog • 65 implied HN points • 04 Mar 25
💼 Business Finance Tech Market Trends Investments Economics
  1. Okta and Gitlab had great stock performances today, showing positive earnings and growth. It's nice to see some companies thriving in a tough market.
  2. The stock market is struggling, with major indices like the DJIA and S&P500 dropping significantly. This could raise concerns about an upcoming recession.
  3. Despite the bad vibes in the market, there are still bright spots like new music releases making waves. It's important to find joy even when things seem uncertain.

Five things most people don't seem to understand about DeepSeek

Marcus on AI • 12133 implied HN points • 28 Jan 25
🕹 Technology AI Deep Learning Software Economics Geopolitics
  1. DeepSeek is not smarter than older models. It just costs less to train, which doesn't mean it's better overall.
  2. It still has issues with reliability and can be expensive to run if you want it to 'think' for longer.
  3. DeepSeek may change the AI market and pose challenges for companies like OpenAI, but it doesn't bring us closer to achieving artificial general intelligence (AGI).

The great American gaslighting

Men Yell at Me • 307 implied HN points • 11 Jun 25
🇺🇸 U.S. Politics Capitalism Private Equity Media Economics Social justice
  1. Private equity firms often hurt the companies they buy instead of helping them. They can make money by cutting costs and stripping businesses rather than supporting them.
  2. The impact of private equity goes beyond businesses; it seriously affects people in communities. When companies shut down, it's not just a loss of jobs but also a loss of community support and services.
  3. Despite challenges in various industries, there are hopeful stories where businesses thrive by focusing on community needs and creativity instead of just profits. People can find better ways to support their industries and communities.

Coreweave is going public!

Alex's Personal Blog • 65 implied HN points • 04 Mar 25
💼 Business Economics Startups Investing Tech industry Market Trends
  1. Coreweave is going public and has seen impressive revenue growth, largely due to a specific focus on AI workloads. They claim that their services are specially built to handle the demands of AI, allowing for high efficiency.
  2. The company is heavily reliant on just a few big customers, with Microsoft providing a significant portion of its revenue. This raises concerns about sustainability if Microsoft decides to cut back on their services.
  3. While Coreweave's expenses are high from investing in infrastructure, they expect to break even on these investments fairly quickly. However, future demand for their services is crucial for their ongoing success.

No, Capitalism Did Not Make America the Richest Country

Erik Examines • 268 implied HN points • 25 Feb 25
🇺🇸 U.S. Politics Economics Socialism History Immigration Capitalism
  1. America's wealth didn't come solely from capitalism or hard work; other factors played big roles too. There are many things we often overlook when we talk about America's economic success.
  2. Many Europeans didn't come to America only to escape oppression. They actually had other options within Europe, and they were often seeking better land and opportunities instead.
  3. The U.S. had vast resources like fertile land and coal, which helped it industrialize faster than many European countries. These natural advantages were a key reason for America's economic power.

Hard Money and Hard Men

Postcards From Barsoom • 3906 implied HN points • 13 Oct 24
🔮 Crypto Bitcoin Blockchain Finance Economics Philosophy
  1. To create good times, we need to focus on becoming great individuals first. It's not just about what you do, but about who you choose to be.
  2. In our current world, there's a lot of distraction and mediocrity. We must resist this and strive for excellence by not settling for average.
  3. History shows us the importance of strength and preparation. To appreciate peace, you must understand the value of being ready for conflict.

Lessons on birth rates: Japan and South Korea

Faster, Please! • 456 implied HN points • 27 Feb 25
🇺🇸 U.S. Politics Demographics Policy Economics Social Issues International relations
  1. South Korea's birth rate has slightly increased, from 0.72 to 0.75. This small rise gives some hope to policymakers about slowing the country's declining population.
  2. Japan faces a significant demographic challenge with low birth rates, which impacts its economy and society. This situation highlights the importance of addressing demographic decline.
  3. Both countries show that while it’s tough, there can be small improvements in birth rates. Understanding what works in one country may help others tackle similar issues.

Yes, Americans are much richer than Japanese people

Noahpinion • 28353 implied HN points • 24 Dec 24
💰 Finance Economics Wealth Income
  1. Americans generally have a higher standard of living compared to Japanese people, especially when you look at their salaries. Even though Japan has a strong economy, many people earn significantly less than their American counterparts, especially for starting jobs.
  2. Living standards in Japan might seem appealing due to factors like safety and good public transportation, but these benefits can be overshadowed by long working hours and less leisure time. While Japan is safe and has beautiful cities, many people still work hard and face economic struggles.
  3. While GDP can show how wealthy a country is, it doesn't capture everything about quality of life. Americans have access to more modern conveniences and have higher average salaries, but Japan offers a safer and healthier living environment, which makes comparing them more complicated.

How do we measure whether China's economy is "ahead" of America's?

Noahpinion • 20059 implied HN points • 04 Jan 25
💰 Finance Economics Trade GDP Currency Growth
  1. There are different ways to measure the size of economies, like using nominal GDP or purchasing power parity (PPP). Depending on the method, we can get very different perspectives on whether China's economy is ahead of America's.
  2. The exchange rate can change the perception of an economy's size, especially if a country's currency is weak. If China's yuan strengthens, it could suddenly appear larger than the U.S. economy in nominal terms.
  3. When comparing economies, it's important to consider local prices and living standards. For a more accurate view of how people live and what they can afford, using PPP is crucial despite its complexity and potential inaccuracies.

American Economic History Midterm This Friday!

Brad DeLong's Grasping Reality • 199 implied HN points • 20 Feb 25
🚌 Education Academic History Economics Lectures
  1. The midterm exam will focus on the readings, so doing them is key to doing well. It's designed to be easy if you're prepared.
  2. The course looks at American economic history through various significant episodes instead of a continuous timeline. This approach highlights important events and their impacts.
  3. Upcoming weeks will cover topics like immigration, feminism, and the rise of Silicon Valley. Each week connects historical discussions to current economic issues.

Shakespeare the economist.

The Common Reader • 992 implied HN points • 06 Feb 25
📚 Literature Shakespeare Economics Human nature Social Issues Debt
  1. Shakespeare understood economics really well. He used themes like wealth and trade in his plays to show how money affects human relationships.
  2. His work highlights the moral issues of money, like debt and lending. For example, in The Merchant of Venice, the harsh realities of financial need lead to serious conflicts.
  3. Shakespeare's stories reflect the changing social dynamics of his time. The rise of the middle class and trade had a big impact on society and he captured that in his writing.

Top Links 649 Dollar overvaluation. Ethiopia's precarious economic reforms. Kashmir and panzootic threats.

Chartbook • 329 implied HN points • 14 Feb 25
💰 Finance Economics Global Trade Market Trends Financial Policy
  1. The dollar is currently overvalued, which could have serious economic impacts. This means that the dollar's strength might not reflect the true value of the economy.
  2. Ethiopia is facing challenges with its economic reforms. These reforms are crucial for the country's future stability and growth.
  3. Kashmir is experiencing threats from panzootic diseases. This situation poses risks to both human health and local wildlife.

Defending Open Source AI Against the Monopolist, the Jingoist, the Doomer and the Idiot

Future History • 200 implied HN points • 19 Feb 25
🕹 Technology Open Source AI Innovation Policy Economics
  1. Open source software, like Linux, is crucial for innovation and economic growth. If it were starting today, too many restrictions could hurt its potential.
  2. Different groups, like monopolists and jingoists, try to control technology by spreading fear or misinformation. This can lead to laws that stifle competition and creativity.
  3. It's important to support open source AI to encourage fairness and competition. When more people can innovate, technology can improve everyone's lives.

Africa's Hustle Generation: Ambition, Innovation, Opportunity

Workforce Futurist by Andy Spence • 146 implied HN points • 26 Feb 25
💼 Business Economics Entrepreneurship Investment Workforce Innovation
  1. Africa has the youngest population in the world, with many young people entering the workforce. This could lead Africa to play a bigger role in global growth by 2030.
  2. There is a thriving start-up culture in Africa, especially in technology and finance. Companies are getting more funding and creating new job opportunities.
  3. As more people in Africa move to cities, the potential for innovation and entrepreneurship increases. Urban centers are becoming major hubs for new businesses and investments.

Are Economic Worries Overblown?

Spilled Coffee • 36 implied HN points • 05 Mar 25
💰 Finance Economics Investing Market Trends Home Sales Policy Impact
  1. The U.S. stock market is down, with the S&P 500 dropping 6% this year due to economic worries. Many people are feeling uncertain about the economy right now.
  2. Pending home sales in the U.S. have hit an all-time low, even worse than during the 2008 financial crisis and COVID-19. This is a significant sign of trouble in the housing market.
  3. There is a lot of volatility in the financial markets due to government changes and spending cuts, creating questions about whether current market conditions are a good buying opportunity.

Hot take on an AI catfight

Marcus on AI • 6165 implied HN points • 22 Jan 25
🕹 Technology AI Infrastructure National Security Economics Environmental Impact
  1. OpenAI is launching a big project called The Stargate Project, which plans to invest $500 billion to improve AI infrastructure in the U.S. Over the next four years, they hope this will help the country's economy and national security.
  2. Elon Musk is skeptical about the funding and the true financial health of OpenAI. He suggests that previous promises may not hold true and questions whether this project will really benefit the American people.
  3. There are several uncertainties about this project, like whether developing AI will actually be profitable and how it might impact jobs. People worry if the profits will help everyone or just the rich, and if the U.S. can truly keep up with China's advancements in AI.

“Nvidia could soon take a serious hit, too”

Marcus on AI • 4228 implied HN points • 27 Jan 25
🕹 Technology AI Market Trends Economics Tech Companies Data Analysis
  1. Nvidia's stock might be facing a big drop, which is a concern for investors. A decline over 10% indicates that something is going on in the market.
  2. The market can behave in unpredictable ways, and this uncertainty can be tough for investors to manage. Today might be a key moment in the stock market.
  3. Overall, the economics of generative AI can lead to unexpected changes, making it a wild area to watch for investors and tech enthusiasts.

How Paul Krugman changed the public face of economics

Noahpinion • 25647 implied HN points • 11 Dec 24
💼 Business Economics Macroeconomics Public Engagement
  1. Paul Krugman changed economics by making it more accessible and engaging. He believed that good ideas come from everyone, not just top experts.
  2. He played a key role in popularizing Keynesian economics, especially during the Great Recession. His work helped explain the importance of government spending to boost the economy.
  3. Krugman critiqued the academic hierarchy and encouraged open discussions. He showed that even big names in economics could be questioned, which opened the door for new ideas.

GDP is a good measure. Don't mess with it for political reasons.

Economic Forces • 14 implied HN points • 03 Mar 25
🇺🇸 U.S. Politics Economics Government Public Policy Political Discourse
  1. GDP measures the total value of goods and services produced in a country, including government activities. It’s not just about private sector spending.
  2. Removing government spending from GDP calculations would create an incomplete picture of the economy and is unnecessary since we already have ways to measure private sector performance separately.
  3. Changing how we measure economic data for political reasons can harm the integrity of statistical agencies and lead to poor decision-making in the economy.

Five possible reasons China's productivity slowed down

Noahpinion • 15529 implied HN points • 28 Dec 24
💼 Business Economics International Trade Productivity Corporate strategy Market Trends
  1. China's productivity growth has slowed down due to hitting natural limits in technology absorption and an aging population. As they reached the tech frontier, it became harder to improve productivity at the same pace.
  2. R&D productivity in China is low, especially in state-owned companies. The focus has shifted to quantity over quality in research, leading to many low-quality studies and less innovation.
  3. China's economy is heavily reliant on investment rather than consumption. Unlike the U.S., which benefits from high consumer spending, China may be missing out on productivity gains from a robust consumer market.

HOISTED FROM THE ARCHIVES: Again, This Year, I Lament I Have No Opportunity to Give My "How to Think Like an Economist" Lecture

Brad DeLong's Grasping Reality • 99 implied HN points • 20 Feb 25
🚌 Education Teaching Methods Economics Higher education
  1. Learning economics requires new ways of thinking, similar to learning a new language. It helps people see the economy more clearly but may also overlook things that are not easily measured.
  2. There's an ideal time in college to teach how to think like an economist. Teaching it too early or too late may not be effective.
  3. Economics is viewed differently based on background; some see it as a science, while others view it as outdated psychology. Both views have some truth to them.

Talkin’ bout an AI Revolution: 3 scenarios

Faster, Please! • 365 implied HN points • 26 Feb 25
🕹 Technology AI Innovation Economics Forecasting Trends
  1. By 2030, we might still be at the start of a major AI development period. It's okay because this means we have a lot of exciting advancements ahead.
  2. More traditional institutions, like big banks, are now seriously talking about AI. This shows that AI is becoming a big deal in the mainstream world, not just in tech circles.
  3. Experts believe that as AI keeps getting better, the 2020s could see various new economic and technological changes. This could change how we live and work in many ways.

Why Japan opened itself up to immigration

Noahpinion • 13059 implied HN points • 31 Dec 24
🇺🇸 U.S. Politics Immigration Economics Policy International relations
  1. Japan used to be very strict about immigration for a long time, unlike many other rich countries. But starting around 2010, Japan began allowing more immigrants into the country.
  2. Despite not taking in many immigrants for years, Japan had a good quality of life during the 1990s and 2000s. However, the country faced issues like low wages and living standards, which led them to change their immigration policies.
  3. Many people think Japan is unique because of its racial homogeneity, but it's actually similar to other developed countries in how it deals with immigration. It's important not to create myths about Japan that could mislead other countries.

Why Are Some Of Our Most Successful Leaders Mentally Ill?

The Ruffian • 510 implied HN points • 22 Feb 25
🇺🇸 U.S. Politics Leadership Psychology Economics Political theory Mental health
  1. Some successful leaders, like Javier Milei and Elon Musk, show traits that could be seen as mentally ill or eccentric. This often helps them think outside the box and act decisively, even in the face of criticism.
  2. Having a lack of empathy can sometimes be a strength in leadership. When leaders don't try to please everyone, they can take bold actions that others may avoid.
  3. While unconventional behavior can lead to positive change, not all 'crazy' actions are beneficial. Sometimes it's just madness without any deeper logic.

Top Links 645 Trump's assault on the North American division of labour continued. How the eurdollar system works. North Korea's aerial trash bombardment & FDR on the Arsenal of Democracy.

Chartbook • 472 implied HN points • 10 Feb 25
🇺🇸 U.S. Politics Trade policy Tariffs Economics International relations Political Analysis
  1. Trump is pushing for tariffs on aluminium and steel imports, which could affect the US economy. It's important to know that the US relies a lot on imported aluminium.
  2. The eurdollar system is explained, which is key for understanding international finance. It plays a significant role in global trade and economics.
  3. North Korea is using aerial trash bombardment as a tactic, highlighting serious issues of conflict. This kind of action reflects the ongoing tensions in the region.