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The Indicator from Planet Money

Why the US economy is still the envy of the world

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 14 December 2024

⏱️ 18 minutes

🧾️ Download transcript

Summary

The Economist's Simon Rabinovitch argues the U.S. economy has a set of structural advantages that have allowed it to perform remarkably well in the last couple of years compared to other developed countries. But could President-elect Donald Trump's second term in office put that edge at risk? Adrian Ma spoke with Rabinovitch for a recent episode of The Indicator. This episode is an extended cut of their conversation, previously released for Planet Money+ supporters.

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Transcript

Click on a timestamp to play from that location

0:00.0

NPR. Hey there. It's Adrian Ma. So by now we all know that Donald Trump's victory in the presidential election last month was driven in large part by the fact that a lot of voters were just not

0:21.4

happy about the economy the past couple of years. They were feeling the sting of inflation.

0:26.7

And yet there is a sort of disconnect here because there are some pretty strong economic

0:32.1

metrics that show that the economy the past couple years has been doing pretty well,

0:35.8

from cooling inflation to rising

0:38.9

wages to low unemployment and strong consumer spending. And when you put all this together,

0:45.8

it's actually not an exaggeration to say that the U.S. economy is the envy of the world right now.

0:51.5

And in fact, that is the title of a special report in the economists recently, titled

0:56.1

The Envy of the World. It was co-authored by Simon Rabinovich. So the U.S. has effectively

1:01.9

grown three times as fast as its kind of largest comparable economic block. That block he's

1:09.2

talking about is the G7 group of rich countries.

1:12.9

Places like the UK, Japan, and Germany.

1:16.3

If you take the economies of all the G7 countries and put them in a pie,

1:20.5

he says the U.S. used to be about 40% of that pie.

1:24.2

That was back in the 1990s.

1:26.2

Today, it's grown. It's more than 50% today.

1:31.9

So you look at all of these different basic top line GDP economic output metrics, and

1:39.1

American outperformance is really quite striking.

1:51.1

The big question now, though, is whether that outperformance will continue under a president who's promising some major economic changes.

1:53.9

And that is what we're talking about with Simon and Rabinovich today.

1:57.7

Now, if Simon's name rings a bell, it's because we actually had him on the show just after the election.

2:02.8

Today's episode is an extended cut of that chat.

...

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