Marketplace U.S.-EU relationship status: It's complicated
10 snips
Jan 19, 2026 
Michael Waters, a journalist and author, dives into the digital revolution transforming how parents manage allowances through apps and investing tools. He explores the historical roots of allowances and their evolving purpose across different classes. Meanwhile, Sean McHenry traces the evolution of economic vocabulary from Adam Smith, emphasizing its impact on understanding today's economics. Together, they discuss the complexities of U.S.-EU trade relations amid tariff threats, highlighting the unpredictable nature of current policies.
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Europe's 'Bazooka' Response Tool
- The EU's anti-coercion instrument lets it quickly retaliate when another country uses financial pressure to force policy changes.
- Measures include targeted tariffs and restricting companies like Meta or Google from operating in Europe after required negotiation attempts.
Credibility Is Central To Trade
- Sudden tariff threats damage credibility and predictability vital for trade relationships.
- Ethan Strube says ignoring rules makes future cooperation and rule-based trade much harder.
Demand Versus Supply In Housing
- Proposals to let people tap 401(k)s or extend mortgage terms increase buyers' purchasing power but won't raise housing supply.
- Economists warn these moves could push prices higher by adding demand to a tight market.