Optimist Economy
Optimist Economy is an anti-doomscroll economics podcast hosted by economist Kathryn Anne Edwards and editor Robin Rauzi. Each week they break down one economic problem affecting American life, such as work rules, tax fairness, healthcare, housing, or retirement, and offer a practical solution. They use data, history, humor, and a belief that tools for a better economy exist but remain untried. New episodes arrive on Tuesdays.
Episodes
The U.S. is in the Hole. Will We Stop Digging?
(Originally aired June 10, 2025) The national debt is $36 trillion. That could be a panic-inducing big number. So maybe it will help to understand how we ran up that debt. We've blown 37% of it on tax cuts, with precious little to show for that. But 28% went to stabilize the economy during two major crises (in ‘08-’09 and during the COVID pandemic), which is when you do want the federal g
Occupy! An Unfinished Uprising: The Invitation (Ep. 1)
Optimist Economy is on break this month, but we know that optimist listeners are interested in tales of economic history, issues of inequality and movements for change. So we thought some of you might enjoy "Occupy!" a six-part narrative series about Occupy Wall Street, the 2011 protest village that lasted nearly two months and turned a spotlight on systemic economic inequality in the U.
Stop Donating Your Vacation Days to Your Boss
Nearly 90% of private-sector workers get paid vacation days from their job, but a Pew survey found 46% leave at least some of it on the table. Government survey data also show that the share of workers who are on vacation in any given week has fall by about half between 1980 and 2022. Blame thin staffing, guilt culture, and “PTO bundles” that push people to ration days between vacation da
The Government is Already Paying for Your Health Insurance, Buddy
About 18% of U.S. GDP every year gets spent on health care. Half of that, 9%, is coming from the government, which is about the whole cost of other countries’ public health programs. In other words, for what the U.S. spends on Medicare, Medicaid, Tricare, VA benefits, and the tax write-off for employer-sponsored plans, we could have free basic health insurance for everyone. This is why t
Mr. Justin Time Sets a Cruel Work Schedule
Just-in-time scheduling lets an algorithm decide when — and whether — millions of people work. Surveys find 40% of shift workers (mostly in retail and food service) don’t know their schedule a week in advance. They can also get sent home mid-shift or asked to be on call, unpaid. Studies show that more than 50% of hourly workers’ income swings up to 30% month-to-month, making it hard to bu
Young Americans Should Be Raising Hell About Social Security
Nobody has more riding on any changes to Social Security than people under 40. The trust fund is currently projected to run dry in the fourth quarter of 2032, but it could be sooner. Every election, starting in November, selects the lawmakers who will shape the program’s future. Neglecting to fix its finances will mean an automatic 22% cut to everyone's benefit. But for Millennials and Zo
Simple Immigration Economics: Bigger is Better
(Originally aired 6/24/2025) One in five workers in the United States was born in another country. Without them, the country’s prime-age workforce would be shrinking, and thus so would our economy. So the calumny (Terms & Conditions) directed at immigrants is at odds with the basic fact that the U.S. needs them. What about depressing wages? Research finds such a mixed bag of results t
America at 250: Case for the Defense
It’s the United States’ semiquincentennial … and one of us is not feeling it. The other is literally carrying a flag in her bag — and that’s just her road flag. Kathryn Anne Edwards makes her case for optimism right now: The U.S. is undergoing one of the most dramatic demographic and cultural shifts of any industrialized nation. Americans agree that Congress is broken. And the people's ag
Optimist Q&A: The AI Bubble, the Rapture, and Free Lunch
We can’t give financial advice. Or feedback on your 20-page tax proposal. But economist Kathryn Edwards did take a run at nearly 20 listener questions in under 60 minutes. Among them: Why care about birth rates if robots are taking all the jobs? What happens if the AI bubble bursts? Will the dollar collapse? Can the bond market sway the White House? Plus: Why the minimum wage matters even
Inflation Risk is the Wrong Recession Lesson
This might be the most dangerous economic assertion circulating today: the high inflation from 2021-2023 was caused by government stimulus. The talking point on the right goes: the third COVID-era stimulus checks landed in March 2021, prices took off, case closed. Of course reality is more nuanced. And most serious estimates pin only a point or two of the inflation peak on the bill; the r
Make the Economy Work for Freelancers, Too (#askingforafriend)
Thirty million Americans, more or less, work for themselves. They freelance, do gig work, have solo LLCs, or — as a certain economist says — participate in “ non-employee employment.” The economics of their situation is harder than it needs to be. Making self-employment more viable is good for everyone in the labor market, because when workers have options, they also have more power. Plus
About That College Grad Who Can’t Find a Job…
(Originally aired 7/1/2025) Newly minted college graduates are having a harder time landing that first job than in recent years. Is it AI? Is college useless? Is it a crisis? (No. No. And not yet…) College graduates under 27 still have significantly lower unemployment rates (5.8%) than high school graduates of the same age (6.9%). What economist Kathryn Edwards finds worrying is that thes
Should We Cherish the Ultra-Wealthy? (a.k.a. ‘The Cornfield’)
A certain kind of wealthy American has been griping out loud lately — about taxes, about progressive cities, about how unappreciated they are for the jobs they create, the stuff they buy, and the tips they hand out. A narrative is coalescing around them too: that the top 10% of earners now do so much of the spending, the U.S. economy relies on them. But an economy that depends so much on
No Overtime for the Supervisor of Sandwiches
It wasn’t just hourly factory jobs that were supposed to come with a 40-hour workweek. Even salaried jobs were supposed to get overtime pay, though very few do do anymore. Overtime protections are the only legal mechanism enforcing work-hour limits, and for 50 years, the salary threshold that determines who qualifies to receive overtime has been left to erode. Employers found another work
Can the U.S. Go ‘Cashless?’
Cash is dirty, inconvenient, and so last century. Some 70% of Americans under age 50 think its days are numbered. But we still need those greenbacks, if as an alternative to banks. More than 4% of households are “unbanked,” and three times as many are “underbanked,” meaning bank services mostly don’t work for them, so rely on services like check cashers or payday lenders. And that's befor
The 2026 Economy: Make it Make Sense
Consumer sentiment is in the basement. Jobs aren't being added. Prices keep climbing. GDP barely grew at the end of 2025, and a ‘meh’ 2% last quarter. Shouldn’t this be a recession? Not so far. Economist Kathryn Anne Edwards walks through the clear cause of each bad number: Tariffs explain the prices and foul mood. Mass deportations explain the jobs. The government shutdown explained last
Progress is a Long Game
(Originally aired 5/06/25) What sparks progress? The right political conditions? Social pressure? Economic upheaval? In response to two listeners’ questions, we say… both none of those and all of the above. As an example, we talk through just one bit of the New Deal in the 1930s, which was the law to limit child labor. That movement started decades earlier, and continued decades afterward
The Great Wage Stagnation
Average U.S. wages have barely budged since the early '80s — and if you account for today's labor force being older and more college-educated, wage growth basically disappears. Economists have cycled through explanations: workers lacked technical skills, then couldn't compete with global labor, then lost the policies that once lifted paychecks, like strong unions and a meaningful minimum
Tax Reform Gone Wild
From California to Washington to New York, states are trying to tax the very rich. The press keeps rehashing whether millionaires and billionaires will flee those states. Wrong question. The more important one is why we’re improvising tax policy state to state when it’s the federal government that should be dealing with health care, child care and affordability—all of which are national p
Nobody's Pulling Up Stakes Anymore
Americans used to move a lot in search of opportunity. But in 2024, the share of Americans who moved at all hit a 76-year low. Barely 2% of us moved across state lines. Some of that is by choice: people are more rooted, and that's not nothing. But when workers stop moving, rich cities pull further away from poor ones, wages stagnate, and the gaps between thriving labor markets and struggl
The Optimists Have Questions…
Fourteen questions. Zero softballs. Listeners from Tacoma to Montreal wrote in to ask about retirement savings, taxing capital gains, home-buyer assistance programs, corporate profits in the tariffs era, what one state employee can or cannot accomplish, and whether meaningful economic reform will arrive before Millennials drop dead. And more. The inbox did not disappoint. 00:00 Announceme
Corporate Profits Are Up. Their Tax Bill Should Be Too.
The corporate income tax rate got hacked nearly in half by the 2017 Tax Cut and Jobs Act. So nine years later, how’s that working out? Corporations’ effective tax rate (about 9%) is lower than what the average American household pays (about 14.5%). After-tax corporate profits have hit record highs for the last four years — about 9% of GDP, a figure not hit since 1929. Workers' share of to
If AI Gets Hired, America Can Handle It
Switchboard operators. Typists. Secretaries. Lots of factory workers. The economy has a long history of technology slowly eliminating not just jobs but entire occupations. The U.S. also has a long history of not doing a lot to help those thrown out of work by major economic shifts. Economist Kathryn Anne Edwards, who literally wrote her dissertation on unemployment insurance (her professi
Boomers Didn’t Ruin Everything. Really.
The popular narrative is that baby boomers rode cheap houses and 401(k)s to wealth, dismantled the welfare state behind them, and left everyone else to fight over scraps. But conflating boomers and conservatives lets the latter off the hook for 25 years of tax cuts and disinvestment in children. It erases the Black boomers, poor boomers, and pensionless workers who never got a slice of th
Can $1,000 at Birth Make Us a Country of Savers?
“Trump Accounts” might evoke the president’s other side hustles, like gold-plated mobile phones or meme crypto coins. But these investment accounts for children are one of the actually beautiful things to come out of the "One Big Beautiful Bill." More than 30 years in the making, these accounts have previously been pitched as KidSave, Baby Bonds, the ASPIRE Act, 401Kids. They’ve been prop
Social Security Upgrades for Retirement's Realities
Economist Kathryn Anne Edwards is a Social Security fan girl. Would it be possible for her to love it even more? Yes, if the old-age insurance program got some updates to handle the messy, gradual and interrupted way that retirement truly transpires. Her four blue-sky pitches: changing benefit calculations for caregivers, taking benefits temporarily, a sliding “full” retirement age based
What The Actual Fed.
The Federal Reserve is in the news constantly these days. Beyond the regular will-they-or-won’t-they question on interest rates, there are multiple legal battles with implications for the central bank’s independence, President Trump’s nominee for chairman may (or may not) get a hearing in the Senate soon, and Jerome Powell's may (or may not) leave when his term as chair ends in May. So le
We Don't Have a Housing Shortage. We Have a Paycheck Shortage.
Recent polls show 54% now consider housing unaffordable and the cost of homeownership dominates Americans’ economic anxieties. The popular “abundance” narrative says there’s a housing shortage and suggests cutting zoning or environmental rules will let us build our way out of it. But we don’t have a simple net shortage of units—we have a deep mismatch between what gets built and what wor
Affordability vs. the Poverty Line
An essay went viral by claiming that $140,000 is what a family of four needs to just get by — a number higher than what 70% of American households earn. Conservative economists called it idiotic. Kathryn dismissed it and got a nasty DM. What’s the real controversy? It’s not that the poverty line is misleading. It's that we have no measure for our current affordability crisis. And the Amer
$79 Trillion Worth of Income Inequality
Our own optimist economist Kathryn Anne Edwards worked on a research project several years ago to measure income inequality. Its massive headline number has taken on a life of its own in columns, talking points, memes. We explain how Kathryn and co-author Carter Price managed to answer this question: What would have happened to Americans’ incomes if they’d grown at the same rate as the U.
We're Back with a Backlog of Optimism
Hey optimists! Season two of Optimist Economy is finally here. New episodes coming on Tuesdays starting January 27. More at www.optimisteconomy.com
What’s the Skinny on Laws that Make Salaries Public?
Listener Max did his grad thesis on pay transparency laws in Colorado and found that they narrowed the gender wage gap by 8 cents on the dollar. But some big-name economists reported that such laws can actually reduce wages. So what’s the deal? Kathryn’s answer during our October Q&A was so overlong and multipart that we jokingly called it, “The Max Show.” So here it is, as a mini-epi
Thanksgiving Prep: An Optimist’s Guide to Dinner Table Debate
Your drunk uncle calls Social Security a Ponzi scheme. Your crypto-bro cousin thinks tariffs make China pay. Your grandfather blames working women for tanking wage growth. Economist Kathryn Edwards takes on a dozen hostile dinner-table challenges to help optimists everywhere prepare for dinner table debate. Robin plays every annoying relative you've ever argued with. Pass the [expletive]
Retcon on Season One (+ Executive Orderpalooza)
Optimist Economy got its start almost exactly one year ago with a phone call that began, "Hear me out…" Thirty-two episodes later we ask, “What have we done?” Mostly we conditioned ourselves to keep our eye on the ball – the better U.S. economy and future that are possible – through a lot of very bad news days. In the background, we both moved. Kathryn kept a lot of pregnancy symptoms hid
How Health Insurance Got Shackled to Jobs
Why is anyone’s health insurance tied to their job? It's because of a superintendent in Dallas, World War II wage freezes, a 1953 tax code quirk, and decades of inertia. This accident of history costs America $384 billion a year in tax breaks to corporations for providing coverage. And what do we get for that? A system that locks people in jobs they'd otherwise leave, suppresses wages of
Optimist Q&A: Evidence for UBI, What to Do About Billionaires, and Where Will the U.S. Economy Be After Trump?
In the final Q&A of the season, economist Kathryn Edwards answers listener questions on recent universal basic income experiments, legislative budgeting tricks, and the value of more aggressive IRS auditing. She also explains what eradicating the minimum wage exemption might mean, particularly for disabled and incarcerated workers. We also discuss what people actually do for money whe
Can We Fix America's Broken Unemployment Insurance System?
Just how broken is Unemployment Insurance? Consider this: During every recession since the 1950s, the federal government has had to step in and prop it up. Of people looking for work, only half qualify for Unemployment Insurance. And just half of those actually receive benefits. That’s what you get from a system designed mostly for factory workers nearly a century ago and then left to the
The Ghost Recession: A Brief Economic History of Now
The economic pain that Americans experienced in 2022-23 was dubbed the “vibesession,” suggesting that negative public sentiment was out of sync with a healthy economy. But what we were truly experiencing was more like a “ghost recession.” As the Fed squeezed the economy by raising interest rates from zero to above 5% to get inflation under control, only the extraordinary circumstances of
The Cash-for-Kids Study: Misread and Misrepresented
You might have heard recently that a years-long poverty study “found” that giving $333 monthly to kids with poor parents didn’t make a difference. But here's why that’s the wrong takeaway: The "Baby's First Years" study wasn't designed to test cash payments. It is multi-year, ongoing scientific research into how poverty affects child development. Researchers found "selective impacts on pr
The Case for Going Big on Paid Leave
Paid family and medical leave is a confusing mess: only 27% of private-sector workers get paid leave from their employer. Some others are covered by state programs, but those vary. The rest of us scramble to patch together short-term disability with other paid time off, if we have it. Meanwhile, the United States instead has a federal Family Medical Leave Act that protects unpaid time off
Aren’t Free School Meals a Conservative's Dream Policy?
Free breakfast and lunch for every public school student — an idea associated more with countries like Sweden and Finland — should instead be viewed as a truly American policy that liberals and conservatives can both love. Want complete meritocracy? Then you should be furious that some kids can't focus in class or during tests because they're hungry. Want to compete globally? Eating bette
Looking Beyond the Unemployment Rate
The unemployment rate has been hovering around 4.2%. But in today’s highly unsettled economy, many people feel this headline number from the Bureau of Labor Statistics doesn’t capture their economic struggles — from slow hiring to working two part-time jobs to recent graduates unable to find work in their fields. But as economist Kathryn Edwards points out, the U.S. Bureau of Labor Statis
GDP Was Never Going to Make You Happy
Gross Domestic Product is the big dog of economic numbers. But this measure of the economy’s size has massive blind spots. It ignores income inequality and citizens’ wellbeing. It rewards consumption and thus environmental degradation. Yes, it is vital to know if your economy is growing or shrinking and why. And yet maybe GDP shouldn’t be the lodestar. In fact, as economist Kathryn Edward
How to Actually Help Young Men Struggling in Our Economy
The "boys and men crisis" conversation set in motion following the 2024 election is now shooting off in erratic directions, leading to a lot of hand-wringing about college enrollment, long-gone factory jobs, and “loss of purpose.” Still, men’s workforce participation has been on a long, slow slide for seven decades, and it is reaching a worrying level. To address that, though, we need to
What You Don’t Know About Poverty
About 11% of Americans have a household income that puts them below the official government threshold for poverty. Is poverty a state of being, or a risk? Are the poor people themselves the root cause of poverty? Or are they the outcome of a low-wage labor market that churns people in and out of work? Because how you diagnose the problem matters if you’re looking for solutions. Economist
Q&A Part 2: Working Two Jobs, Incentives vs. Handouts, the Gold Standard, and Government ROI
Economist Kathryn Edwards is back with more answers. In Part 2, she talks more about student loans, who actually “lives off taxpayers,” why gold reserves aren’t a great idea anymore, the importance of mobility in worker power, and whether ROI is a good measure for the work of government. If this two-parter was too much, blame the listener who said he didn’t like it when we used the timer
Q&A Part 1: Tax Philosophy, Liberal vs. Conservative Economists, Marriage vs. Poverty and More
In the first of two mailbag episodes, economist Kathryn Edwards answers questions from optimist listeners on taxation on wages vs. investments, whether student loans are regressive, how bona fide economists wind up on opposite sides of policy debates, and what it really means when a Montana Congressman calls the CBO “historically wrong.” Yeah, this episode has a long title. But there was
A Million Reasons to Raise the Minimum Wage
The federal minimum wage of $7.25 an hour hasn’t been raised since the era of flip phones. Competing bills introduced in Congress recently would set it at $15 or $17. Is that high enough, and how can we ensure it doesn’t fall so far behind again? Minimum wage debates are dominated by worry about anticipated harms to some businesses, but ignore the proven positive effects for American work
Collective Bargaining Without the Unionization Battles
Labor unions’ public approval has been increasing since 2009, and is now at levels not seen since the 1960s. And yet rates of union membership have been falling. Today just 10% of U.S. workers are represented by a union, and below 6% in the private sector. What if there were a less adversarial way to get the worker-protection aspects of unions without the brutal shop-by-shop campaigns? En
The Tax We’re 99.93% Sure That You Will Never Pay
The Estate Tax is one that half of Americans worry about, but that affects only the richest 0.07% after they die. For nearly 25 years, the U.S. has – through loopholes and ballooning exemptions – undercut a tax that could pay for some nice things, like maybe a children’s trust fund. If we chose to just dent more big inheritances, it’d also reduce the concentration of wealth and power. In
About That College Grad Who Can’t Find a Job…
Newly minted college graduates are having a harder time landing that first job than in recent years. Is it AI? Is college useless? Is it a crisis? (No. No. And not yet.) College graduates under 27 still have much lower unemployment rates (5.8%) than their high-school-diploma peers (6.9%). What economist Kathryn Edwards finds worrying is that these new workers, who are typically a lagging
Simple Immigration Economics: Bigger is Better
One in five workers in the United States was born in another country. Without them, the country’s prime-age workforce would be shrinking, and thus so would our economy. So the calumny (Terms & Conditions) directed at immigrants is at odds with the basic fact that the U.S. needs them. What about depressing wages? Economist Kathryn Edwards says that research shows such a mixed bag of re
Work Requirements Don’t Work
Here’s what work requirements rarely accomplish: Getting more people to work or lifting them out of poverty. They are, however, very good at driving people off public benefit programs, which was their primary role during the welfare reform of 1996. Yes, Kathryn Edwards economist/human will tell you that in theory, people will optimize how much they work and “consume leisure” according to
The U.S. is in the Hole. Will We Stop Digging?
The national debt is $36 trillion — a panic-inducing big number. So maybe it will help to understand how the U.S. ran up that debt. We’ve blown 37% of it on tax cuts, with precious little to show for that. But 28% went to stabilize the economy during two major crises (in ’08-’09 and during the COVID pandemic), which is when you do want the federal government to pull out its credit card. G
College Rules! But Student Loans are a Hot Mess!
The U.S. government makes student loans because our economy benefits enormously: Improved human capital. Higher earnings for taxpayers. Innovation and productivity gains. (Side note: Education has also been a $50 billion per year “export” because so many international students come here.) Meanwhile, colleges are basically getting blank checks for whatever tuition prices they pull out of t
OE Lightning Round: Kathryn Edwards Takes Your Economy Questions
Kathryn Edwards answers listeners’ economic questions, with her co-host's stopwatch running. In under an hour, we cover risks to U.S. economic data, college tuition, taxes, bonds, degrowth, mortgages, tariffs vs. income taxes, wealth concentration, and why the future can’t be built on lies. Finally, for those of you not from Wisconsin, do you know how to pronounce Waukesha? Because Robin
The Invisible Hand Doesn’t Want to Change Diapers
Child care is exhibit A that not everything can be solved by private marketplaces. It is too expensive and too scarce — and as Kathryn Edwards points out, nothing will change that fact. (Maybe you’ve heard someone say that preschool costs more than state university tuition? True in 38 states.) Even among those who think that there’s a role for the government to play in early childhood car
A Family Bill for a Shrinking U.S.
The declining birth rate in the United States is often discussed not only as a major demographic shift, but as a looming economic disaster. Ideas being pitched to the White House include a $5,000 baby bonus for new parents and (truly) giving medals to women who have a half-dozen babies. But what are the real contours of this supposed crisis? Indeed, according to economist Kathryn Edwards,
Progress is a Long Game
What sparks progress? The right political conditions? Social pressure? Economic upheaval? In response to two listeners’ questions, Kathryn Edwards says… both none of those and all of the above. (Also, "not a historian.") Still, as an example, we talk through just one bit of the New Deal in the 1930s, which was the law to limit child labor. That movement started decades earlier, and contin
Paid Sick Days for Lady Gaga (and Everyone Else Too)
In the category of low-hanging policy fruit, why won’t any politician pluck the ripe, juicy goodness of federally mandated paid sick leave? About 30 million American workers not only don’t get a paid day off when they have the flu, there’s no law on the books to prevent them from being fired if they call in sick. Economist Kathryn Edwards points out that research has found that the job-pr
AI Suggested Five Horrible Titles for This Episode
A recent article in the Washington Post proposed that U.S. labor data has just started to show the bite artificial intelligence is taking out of U.S. jobs – in this case, for computer programmers. Is AI going to cause mass joblessness? Silicon Valley bros seem to think so. Journalists seem to think so. So what’s with economist Kathryn Edwards' ho-hum reaction? The long view: The United St
Work Rules for the Modern World
Never heard of the Fair Labor Standards Act of 1938? It’s why there’s a minimum wage, overtime pay, and 12-year-olds can’t legally have a job. It’s also due for a 21st-century update. What would these “New Work Standards” include? Let’s start with the right to request remote work, part-time schedules, or non-traditional hours. This shift would be a game-changer for folks with disabilities
Robin Loves a Tax Story
The United States is more than 20 years into a tax experiment – an era of a cumulative $7 trillion in tax cuts. So, asks economist Kathryn Edwards, how’s that working out? Well, we have worsening income inequality and public faith in the tax system is cratering. Meanwhile every social policy is conceptualized as some kind of tax cut/credit. The question for our optimistic future is, are y
Social Security Don’t Miss
What’s with the persistent narrative of Social Security's impending doom? Are the baby boomers draining the trust fund? Are Americans living too long? No and no. There are just two of the many misunderstandings people have about what economist Kathryn Edwards will tell you (for hours if you let her) is, truly, the most popular and effective public program in U.S. history. She’s also optim
Is This a Recession or Not?
Wouldn’t it be funny if we launched a podcast called “Optimist Economy” at the very moment the economy started to slide? Nice timing, us! In this bonus episode we dive into the data that has folks spooked. We also talk about if willy-nilly tariff policy (technical economic term there) is to blame, whether a recession is more like a wildfire or a hurricane, and how a recession might affect
An Elegy for the DEI Boogeyman
Rapidly changed government and corporate policies mean the era of DEI is coming to a screeching halt. But gross racial discrimination in the U.S. labor market persists. Just one example: The black unemployment rate is almost always double the white unemployment rate. In this episode we muddle through what can be said about DEI now at its funeral that wasn’t said during its lifespan.You ca
All We've Tried is Nothing!
Who are we and what in the world is an “optimist economy?”For our first show, we (economist Kathryn Edwards and editor Robin Rauzi) introduce ourselves, explain how we met, and lay out our goals for our new podcast.We want Optimist Economy to empower listeners to understand the economy we have, but also the one we can have so they feel good about the future. The truth is, America’s best e
Welcome to Optimist Economy
Here at Optimist Economy, we recognize that today’s economy isn’t great for a lot of Americans. That is exactly why now’s the time to talk about how it could be so much better — whether you’re hunting for a first job or worried about the future of Social Security.Co-hosts Kathryn Edwards (a labor economist) and Robin Rauzi (an editor) decided to make Optimist Economy because everyone dese
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