The hottest Economics Substack posts right now

And their main takeaways
Category
Top Business Topics

The Deposit Myth

Altered States of Monetary Consciousness • 481 implied HN points • 08 Mar 24
💼 Business Economics
  1. When it comes to 'bank deposits', the traditional verb-noun pairing can be misleading. The term 'deposit' typically implies something being put in, but with banks, it refers to something issued out by the bank like digital casino chips.
  2. Comparing banks to casinos can help understand the concept better. When you 'deposit' cash in a bank, it becomes their asset, and you receive digital chips as a liability. This is opposite to the usual understanding that a deposit is something put in the bank.
  3. The language around 'bank deposits' can create misunderstandings, especially in economics. An update in how we define and understand 'bank deposits' can help clear up these misconceptions and align with the actual operations involved.

CROSSPOST: 23 Economics Nobel Prize Winners for Kamala Harris

Brad DeLong's Grasping Reality • 238 implied HN points • 31 Oct 24
🇺🇸 U.S. Politics Economics
  1. Many Nobel Prize winners in economics believe Kamala Harris would be better for the economy than Donald Trump. They think her ideas will strengthen the middle class and promote fairness.
  2. Harris's economic agenda focuses on enhancing competition and creating job opportunities. These policies are seen as more beneficial for the country's overall economic health.
  3. In contrast, Trump's policies are viewed as harmful, leading to higher prices and greater inequality. Experts worry that his actions could jeopardize essential economic stability.

NAR: Existing-Home Sales Increased to 4.10 million SAAR in October

CalculatedRisk Newsletter • 19 implied HN points • 20 Nov 25
💼 Business Economics
  1. Existing home sales went up by 1.2% in October, reaching a rate of 4.10 million homes sold per year. This shows a steady trend in the housing market over the last few years.
  2. The median price of homes increased by 2.1% from last year, reaching around $415,200. This suggests that home values are continuing to rise despite changes in sales.
  3. Inventory levels of unsold homes slightly decreased, showing only a small drop compared to typical seasonal trends. This could mean there's still a decent supply of homes available for buyers.

Links to Consider, 11/8/2024

In My Tribe • 227 implied HN points • 08 Nov 24
🇺🇸 U.S. Politics Economics
  1. Bond markets are reacting to expected inflation, not a debt crisis. This means mortgage rates could rise even if the Fed lowers interest rates.
  2. People notice race because they are naturally group-oriented. Racism stems from our tribal instincts, but it's not built into our thinking.
  3. Fertility rates are dropping worldwide, possibly linked to how technology affects social connections. Research is needed to understand this trend better.

Links to Consider, 11/4/2024

In My Tribe • 227 implied HN points • 04 Nov 24
🇺🇸 U.S. Politics Economics
  1. The job market is changing due to AI taking over routine office tasks. However, more complex management roles might still require human skills.
  2. Some believe that good foreign policy relies more on talking than on action. Words can sometimes seem like solutions even when they aren't.
  3. Recent manufacturing job growth is happening in places less affected by international trade issues. Many manufacturing jobs are still not unionized, which means fewer protections for workers.
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Africa's Hustle Generation: Ambition, Innovation, Opportunity

Workforce Futurist by Andy Spence • 146 implied HN points • 26 Feb 25
💼 Business Economics
  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.

Some Thoughts On Using Auctions For Land Valuation

Splitting Infinity • 59 implied HN points • 14 Feb 24
💰 Finance Economics
  1. Auctions can be considered as a method for assessing land values without the need for state-run assessments, allowing the market to determine the value of land.
  2. The use of auctions for land valuation can ensure transparency and fairness by providing everyone with the opportunity to bid on a piece of land publicly.
  3. While auctions may introduce some complexities like bargaining over home prices, they can still lead to reasonably accurate land valuations and generate significant tax revenue.

Hot and cold takes

Samstack • 960 implied HN points • 19 Feb 23
🕹 Technology Economics
  1. Economic growth should not be the sole focus, quality matters too.
  2. Analogies for progress can overlook the importance of innovation.
  3. Consider the reliability and representation of data in discussions and surveys.

Nash's Invention of Non-Cooperative Game Theory (1949-50)

Cantor's Paradise • 221 implied HN points • 05 Nov 24
🚌 Education Economics
  1. Nash developed his idea of non-cooperative game theory during his time at Princeton, focusing on how people can benefit from making decisions independently. His work changed the way games and competitive actions are analyzed.
  2. He introduced the concept of Nash equilibrium, where no player can improve their outcome by changing their strategy alone. This idea is crucial for understanding strategic interactions in economics and beyond.
  3. Despite initial indifference from established economists, Nash's theories gained recognition and eventually earned him a Nobel Prize. His insights made game theory relevant and valuable for various fields, including economics.

The Economics of Altruism

David Friedman’s Substack • 179 implied HN points • 06 Jan 25
📖 Philosophy Economics
  1. Altruism can be understood in economic terms by suggesting that people might care about others' well-being as part of their own happiness. This means that helping others can also benefit the helper.
  2. The 'Rotten Kid Theorem' explains that even selfish behavior in children can lead them to act in ways that are good for everyone, as they understand their actions affect their parent's support.
  3. Altruism may have evolved as a way to help groups survive better. When one person helps others, it can create better cooperation for the whole group, making it more successful over time.

State of the Market

Spilled Coffee • 56 implied HN points • 06 Aug 25
💰 Finance Economics
  1. The stock market had a rough day recently with big drops in jobs reports, but it quickly bounced back the next week. It's surprising how the market can recover so fast.
  2. There have been major downward revisions in jobs numbers for the past few months, removing a significant amount of jobs from the data. This shows there might be issues in the job market that we need to worry about.
  3. Despite bad news like job losses and global tensions, the stock market keeps going up instead of staying down. This raises questions about whether these problems are already reflected in market prices.

Innovation Job Market Papers 2024 (3/3)

New Things Under the Sun • 192 implied HN points • 06 Dec 24
💼 Business Economics
  1. Many new PhD researchers are studying innovation topics in their job market papers. These papers are valuable for understanding current trends in technology and business.
  2. Some research focuses on how companies adapt their innovation strategies in response to challenges like climate change and competition. This shows that innovation is not just about new ideas but also about practical responses to real-world issues.
  3. There is growing interest in how digital platforms influence entrepreneurship. These platforms can help small businesses thrive and increase diversity in the market, which benefits consumers.

An open letter to readers: back to what Unreported Truths does best

Unreported Truths • 57 implied HN points • 02 Aug 25
🏥 Health Politics Economics
  1. Focus on topics you know best, like medicine, to give readers valuable insights. It's important to stick to what you do well.
  2. Listening to reader feedback can help improve your content and ensure it stays relevant. Readers appreciate when their preferences are considered.
  3. Writing about less controversial topics may provide more value than engaging in heated debates. It's better to cover important issues than to get caught up in arguments.

Controlled Demolition Warning: Tokenization

Dr. Pippa's Pen & Podcast • 69 implied HN points • 02 Jul 25
💰 Finance Economics
  1. The global markets are facing big changes, preparing for a major cleanup of issues left from the past financial crisis. This is seen as necessary to fix economic problems that haven't been addressed.
  2. The current financial system is struggling, and there are plans to rewrite how it all works using new technology. This could involve drastic measures to help those affected by the mistakes of wealthier investors.
  3. There are multiple options for dealing with high debt, and one approach might involve using stablecoins to create a new financial system. This could help many people who don't realize the severity of the economic issues.

The Benefits of Bombing

Something to Consider • 5 HN points • 09 Aug 24
💾 History Economics
  1. More bombing during the war led to increased aid for reconstruction in affected areas. This means the damage done was tied directly to the support that helped rebuild.
  2. Reconstruction funding improved agricultural production by helping transport crops effectively. This shows that investment in infrastructure can really boost local economies.
  3. Displaced workers from agriculture moved into industrial jobs due to the new infrastructure, suggesting that rebuilding after destruction can create new job opportunities.

Demystifying Liquidity

DeFi Education • 659 implied HN points • 01 Mar 22
🔮 Crypto Economics
  1. Liquidity means how easily you can buy or sell something without changing its price too much. Cash is the most liquid because it can be used right away.
  2. In crypto, anyone can provide liquidity by pooling two assets for others to trade against. This is not something you can do in regular finance.
  3. Measuring liquidity is important because it helps understand how quickly you can make transactions. If an asset has low liquidity, selling it can be harder and may hurt the price.

The Wrong Price

Ironsides Macroeconomics 'It's Never Different This Time' • 58 implied HN points • 10 Feb 24
💰 Finance Economics
  1. Thematic investing is dominating the price action, with themes like generative AI boom and strong performance in the industrial sector attracting attention.
  2. Misdiagnosis of issues like prohibitive financing costs instead of asset quality is occurring, impacting treasury markets and regional bank stocks.
  3. Outlook on sustainable disinflation post CPI revisions and the association between regional banks and treasury market are key areas of focus.

LECTURE NOTES: 1.1. What the History of Economic Growth Is

Brad DeLong's Grasping Reality • 199 implied HN points • 20 Nov 24
🚌 Education Economics
  1. Economic growth has a long history, with most of it being slow until a major change around 1870. Before then, people lived with little advancement in their living standards for centuries.
  2. Reliable data about economies was mostly unavailable before the 19th century. This makes it hard to understand past living conditions or wealth distribution.
  3. Many technological advancements didn't lead to better lives for common people until recently. Before 1870, despite progress, most still struggled with poverty and poor living conditions.

"The progress of man's welfare"

Hypertext • 99 implied HN points • 14 Nov 23
🇺🇸 U.S. Politics Economics
  1. Milton Friedman advocated for 'progressive negative taxation' as a way to address poverty and ensure welfare progress. The idea was rooted in a guaranteed minimum income based on nutritional needs.
  2. Friedman's negative income tax proposal faced challenges and opposition, particularly in implementation and acceptance among policymakers. It aimed to bridge left-wing and right-wing perspectives on poverty alleviation.
  3. The concept of negative income tax, though not fully realized in policy, showcased the ideological uniqueness of grounding economic theories in practical welfare solutions. It sought to balance efficiency, individual freedom, and incentives in addressing poverty.

What Do You Do With an Idea?

Not Boring by Packy McCormick • 216 implied HN points • 23 Oct 24
💼 Business Economics
  1. Good ideas aren't hard to find; they just need to be used. Many solid concepts from the past are still waiting to be applied today.
  2. Ideas aren’t getting harder to discover but are harder to implement due to regulations and risk aversion. It's about making those ideas actionable.
  3. To make real progress, we need skilled people who can take old and new ideas and bring them to life, along with policies that lower the cost of innovation.

Bringing legendary IP to Web3: a Ragnarok case study

Ronin’s Newsletter • 73 implied HN points • 13 Jun 25
🔮 Crypto Economics
  1. The Ragnarok Landverse game made over $20 million by connecting classic gaming with Web3 technology. This shows how old gaming franchises can thrive in new digital spaces.
  2. A successful launch involved a popular land mint that surged in value, indicating strong community interest. This high demand helped the game quickly become one of the top collections.
  3. Collaboration with partners allowed the game to create a smart system for sharing fees with IP holders. This shows that well-planned partnerships can lead to success in Web3 gaming.

Spill the TEA

The Century of Biology • 453 implied HN points • 28 Jan 24
🕹 Technology Economics
  1. Industrial biotechnology aims to transition our economy to more sustainable biomanufacturing.
  2. Techno-Economic Analysis (TEA) helps forecast new technology's competitiveness in industrial markets.
  3. Synonym's tool Scaler simplifies TEA for synthetic biologists, potentially changing the financing structure of biomanufacturing.

Chips For America

Investing 101 • 46 implied HN points • 09 Aug 25
💼 Business Economics
  1. Investing in domestic semiconductor manufacturing is crucial for the US. It helps ensure that the country can produce its own technology safely.
  2. Despite America's challenges, there is optimism about its potential for solutions and growth. This positive outlook is important for progress.
  3. Research on creating an American semiconductor company highlights its significance in global stability and future conflicts. It shows how interconnected technology and national security are.

Why Job Displacement Predictions are Wrong: Explanations of Cognitive Automation

Scaling Knowledge • 117 implied HN points • 30 May 23
🕹 Technology Economics
  1. Predictions about job displacement due to large language models are often wrong because they lack explanations of how LLMs and human intelligence differ.
  2. Jobs are more likely to be augmented than automated by technologies like LLMs, as human creativity and autonomy are essential in many fields like software engineering, medicine, law, and media production.
  3. Regulations on AI and cognitive automation may hinder progress and knowledge creation, leading to unforeseen consequences and limiting the potential benefits of such technologies.

Electric-Gas Interdependence: History and Transaction Cost Economics

Knowledge Problem • 117 implied HN points • 13 Jul 23
💰 Finance Economics
  1. The interdependence between electric systems and natural gas systems has been highlighted during severe winter storms.
  2. Over the past century, the objectives for electric service have evolved to include resilience, decarbonization, and reliance on natural gas.
  3. Transaction cost economics can help understand the challenges in coordinating reliable input supply between the electric and gas industries.

Substantive Sustainability Gets More Clicks

computers suck • 117 implied HN points • 12 Apr 23
💼 Business Economics
  1. Substantive sustainability work leads to higher click-through rates in online ads compared to greenwashing
  2. Using science-based language in ads, such as carbon emissions reduction stats, is more effective than vague greenwashing claims
  3. Consumers aged 25-54 show significantly higher engagement with ads featuring substantive sustainability messaging

A Mishmash of Monday Readings

crimeandpunishment • 117 implied HN points • 14 Mar 23
🇺🇸 U.S. Politics Economics
  1. Preserving dirt roads is about connecting to nature and heritage, slowing down, and appreciating rural life.
  2. Communities are banning Dollar Stores due to predatory business practices and negative impact on local businesses and communities.
  3. Senator Elizabeth Warren discusses the failures of Silicon Valley Bank and Signature Bank and the need for financial regulations.

Is Network Reliability a Public Good?

Knowledge Problem • 117 implied HN points • 30 Mar 23
🔬 Science Economics
  1. Club goods are goods that can be consumed non-rivalrously but can exclude non-payers.
  2. Network reliability is not necessarily a public good; not everything valuable to the public is a public good.
  3. Investments in reliability may benefit others but can still be individually worthwhile, leading to efficient outcomes without the need for heavy central coordination.

Technofeudalism: What Killed Capitalism (w/ Yanis Varoufakis) | The Chris Hedges Report

The Chris Hedges Report • 146 implied HN points • 29 Jan 25
🇺🇸 U.S. Politics Economics
  1. Yanis Varoufakis argues that capitalism is dead and has been replaced by 'technofeudalism', where power is held by digital platform owners like Amazon and Google instead of traditional capitalists. This means we now work for these tech giants like serfs on a feudal estate.
  2. In today's world, our digital identities and personal data are owned by private companies, which affects our autonomy and privacy. We are constantly being influenced and monitored by these companies, changing how we interact with others and ourselves.
  3. Varoufakis suggests that to reclaim power, we need to combine traditional labor movements with new technology. This could mean organizing strikes and boycotts while also using digital tools to create parallel systems that empower workers and challenge corporate control.

Fighting The Fed

Points And Figures • 426 implied HN points • 27 Feb 24
💰 Finance Economics
  1. Interest rate futures, including SOFR and Fed Funds, are indicating market expectations of rate cuts by the Federal Reserve by the end of the year.
  2. The author predicts that the Federal Reserve will not lower rates in 2024 due to concerns about inflation and unemployment.
  3. Considering predictions about the Fed and interest rates, strategies like buying real estate without waiting for lower rates, buying out-of-the-money puts, and playing butterfly spreads are suggested.

In Spite of All the "Don't Worry" Whispers from Scott Bessent's Affinity, the Rest of Us Are Not Outside But Inside the Chaos-Monkey Cage with Trump

Brad DeLong's Grasping Reality • 169 implied HN points • 19 Dec 24
🇺🇸 U.S. Politics Economics
  1. There's a strong chance for chaos over the next four years, and keeping Trump in check seems very difficult.
  2. Trump's approach to information is problematic, often spreading misinformation which increases the risk of bad policies.
  3. Economists are uncertain about the economic impact of Trump's plans, but history suggests that chaotic decisions will likely lead to negative outcomes.

January Payroll Preview

Ironsides Macroeconomics 'It's Never Different This Time' • 58 implied HN points • 31 Jan 24
💰 Finance Economics
  1. The pre-payrolls labor market data suggests a decrease in job switching affecting wage growth and unemployment rates.
  2. The 'Great Reallocation' from mid-2021 to mid-2022 has evolved into the 'Great Staycation,' impacting wage growth and labor market dynamics.
  3. There are concerns about demand and supply questions in the labor market, leading to a need for potential adjustments and revisions in strategies.

The Marriage Market

David Friedman’s Substack • 161 implied HN points • 03 Jan 25
🎭️ Culture Economics
  1. Marriage can be viewed as a market where people offer certain terms to get a partner. If there are fewer options for one gender, the price or terms improve for the other gender.
  2. Having different qualities can change the 'price' of potential spouses. Attractive or compatible people often have better terms in marriage deals, similar to how desirable products are priced in a market.
  3. Legalizing practices like polygyny or polyandry can shift the demand for spouses, leading to better terms for some while making it tougher for others. It may seem confusing, but more choices can change how relationships are valued.

Tariffs are a necessary tool in the trade arsenal

The Dossier • 181 implied HN points • 26 Nov 24
🇺🇸 U.S. Politics Economics
  1. Tariffs can be an important tool for negotiating better trade deals. They act as a bargaining chip that can encourage countries to agree to more favorable terms.
  2. Having the option to use tariffs is similar to keeping nuclear weapons for defense. It creates a stronger position and may deter other nations from unfair practices.
  3. Recent threats of tariffs from U.S. leaders have prompted other countries to open discussions, showing that the threat of tariffs can lead to positive negotiations.