The Indicator from Planet Money Are we in an economic 'doom loop'?
53 snips
Feb 9, 2026 
Eswar Prasad, economist and Cornell trade policy professor who wrote The Doom Loop, outlines how interacting economic, political, and geopolitical forces create negative feedback cycles. He talks about globalization’s unequal gains, the rise of resentful politics and populists, fracturing international institutions, technology’s risks, and possible paths to break the cycle.
AI Snips
Chapters
Books
Transcript
Episode notes
Economy Caught In A Self-Reinforcing Cycle
- Eswar Prasad defines a "doom loop" as economic, political, and geopolitical forces feeding off each other negatively.
- This cycle makes problems like trade wars, financial panics, and domestic instability self-reinforcing.
Uneven Globalization Fuels Resentment
- Globalization's gains were large but uneven, creating disadvantaged groups within countries.
- That economic discontent fuels the "politics of resentment" and empowers populist leaders.
Populist Leaders Channel Discontent
- Eswar Prasad points to leaders like Jair Bolsonaro, Viktor Orban, and Donald Trump as examples of the politics of resentment.
- He explains these politicians channel discontent by blaming "the other," from elites to foreign countries.
