Summary: More on banking! Specifically more about a crucial job in the economy’s financial regulation ecosystem– the bank examiner. We hear about a “natural experiment” that shows that, in the absence of bank examiners, banks basically acted liked kids throwing spitballs in a classroom without a teacher! We also hear that we will likely face a shortage of bank examiners in the future. Uh oh! Inspired by this fact, our teaching idea is a career-exploration exercise created by Prof. Natalia Smirnova. Students use the rich BLS data to explore their own futures.
Summary: The February job numbers are out! While they are very strong and beat expectations, the labor force participation rate still remains below pre-pandemic levels. This episode hears five different stories and explores three different explanations for the “missing workers.” The quick, accompanying exercise asks students to explore FRED data and flesh out the story.
The Indicator this week discusses what is happening in the airline industry. After hard hits from COVID-19 they are finally expecting to make profits this year, but there are many factors that could crush those expectations. Limited staffing and picketing from fatigued pilots and higher jet fuel prices due to the limited supply of oil are just some of the major problems facing these airline companies. Ticket prices will go up as consumers bear the brunt of the oil shortage. Airlines are also cutting different flight paths as there is not enough incentive to keep servicing certain routes. The biggest take away is to book your tickets early and be prepared for rising prices.
New York Times bestselling author Alec Ross talks about his new book, The Raging 2020s, and explains how that restore the balance of power between the government, businesses, and citizens a new social contract is needed for modern America.
Discussion Prompt: After listening to the podcast, do you agree that America needs a new social contract for the economy to thrive? While answering this question, use your economic thinking and reflect on ideas like wealth inequality, taxes, and unions.
Even before the pandemic, childcare has been inaccessible and too expensive for families. Experts Beth Mattingly and Tom Weber discuss the childcare crisis and the impact it has on parents, the labor force, and the economy.
2021 Nobel Memorial Prize in Economic Sciences recipient David Card used a natural experiment to challenge the Econ 101 concept that a higher minimum wage drives unemployment. Through his research, Card also discovered a way to possibly address issues like the gender wage gap and the wage gap between nonwhite and white workers.
Later in the segment, Card discusses his recognized research on how immigration does not reduce wages according to the Modern Growth Theory.
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