Slate News What Next - Trump’s Getting His Economy. Yikes.
Sep 18, 2025
In this engaging discussion, economist Justin Wolfers from the University of Michigan dives into the recent Federal Reserve rate cut and its implications for the struggling economy. He highlights the risks of rising unemployment and potential stagflation. Wolfers also breaks down how tariffs and erratic policies are undermining economic confidence and disrupting e-commerce. Additionally, he sheds light on the impact of cronyism on startups and the broader costs associated with populism. It's a thought-provoking analysis of the current economic landscape.
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Fed's Language Signaled Stagflation Risk
- The Fed revised its tone from cautious optimism to cautious pessimism noting rising unemployment and slowing jobs.
- Wolfers warns those conditions signal stagflation risks, not a simple cyclical slowdown.
ICE Raid At Hyundai Plant
- Wolfers describes the ICE raid at Hyundai's U.S. battery plant where many Korean experts were detained.
- He uses this to illustrate how immigration enforcement can block essential technology transfer.
Know-How, Not Money, Is The Scarce Input
- Technology transfer is the scarce input for launching complex manufacturing, not just capital.
- Wolfers stresses that human know-how embedded in workers is essential and can't be replaced by money alone.