Economics Happy Hour Podcast

Matt & Jadrian

Economics Happy Hour is a podcast where two economics educators talk through current events, teaching, and research over a drink. Conversations are unscripted and focused on how economists actually think about the world and the classroom. www.econhappyhour.com

  1. 1d ago

    America at 250: What Made the U.S. an Economic Power?

    America turns 250 this year, so we take a step back to ask how the United States became one of the world’s richest economies. We explored the institutions, policies, and cultural factors that fueled economic growth, from entrepreneurship and corporations to highways and property rights. Along the way, we debated which overlooked policies deserve more credit and which challenges could shape America’s future. Finally, we looked ahead to what America might look like by its 300th birthday. In this episode, we talk about: * Why the United States became one of the world’s economic powerhouses. * The role of entrepreneurship, immigration, and risk-taking in the American economy. * Which historical policies quietly transformed economic growth. * The biggest economic challenges facing America today. * What innovations and industries could define America over the next 50 years. If you liked this conversation, you might also enjoy This Week’s Drinks 🍻 This week, we kept things refreshing. Jadrian switched things up with a Bold Rock Blueberry Lemon Hard Cider, a perfect summer drink for the Fourth of July. Matt continued working through his Nova Scotia collection with Tatamagouche Brewing Company’s Hippie Dippie Pale Ale, another souvenir from his trip north. Before diving into economics, we also swapped stories from attending FIFA World Cup matches and compared the very different atmospheres created by fans from around the world. Name That Stat 📊 This week's numbers all tied into America's 250th birthday celebration. We guessed how much Americans are expected to spend on fireworks this Fourth of July, how many people lived in the United States around the time of Independence, and even how many towns across the country are named "Liberty." A few patriotic statistics made for a fun way to kick off a conversation about America's economic history. Show Notes America’s 250th birthday gave us the perfect excuse to ask one of our favorite kinds of economics questions: why did the United States become so economically successful? We start by thinking through some of the country’s earliest advantages. Was it abundant natural resources? Strong property rights? The legal structure behind corporations? Or was it something less tangible, like a culture that rewarded entrepreneurship and encouraged people to take risks? Generations of people were willing to leave everything behind to create a country where trying something new became part of the national identity. From there, we shifted to the policies that quietly changed the American economy. The Interstate Highway System became one of our favorite examples because it connected markets, expanded labor opportunities, and fundamentally changed how people and businesses interacted across the country. We also talked about the Homestead Act, the Federal Reserve, property rights, the GI Bill, and Social Security, along with the challenge of identifying which policies deserve far more credit than they usually receive. Looking at today’s economy, we each picked an area where we think the United States still has room to improve. Housing affordability stood out as one of the biggest challenges, especially as restrictive building policies make homeownership increasingly difficult in many cities. Healthcare was another major topic, but not because the quality of care has failed to improve, but because paying for it has become increasingly confusing and expensive. We also discussed education costs and how expanding opportunity remains central to long-term economic growth. Finally, we looked ahead to America 300. Will artificial intelligence eliminate jobs the same way earlier technologies replaced occupations that once seemed permanent? Could new industries emerge that we can’t even imagine today? We also wondered whether encouraging more entrepreneurship and making it easier for smaller businesses to compete could become one of the defining economic challenges of the next generation. America’s economy has changed dramatically over the past 250 years, and chances are it’ll look just as different 50 years from now. If you had to pick one policy, innovation, or cultural change that mattered most in building today’s economy, what would it be? We’d love to hear your thoughts in the comments. Pop Culture Corner 🍿 Jadrian recommended the new Planet Money book because it felt like all the best episodes of Planet Money merged into a single book. If you enjoy the way the Planet Money team explains complicated economic ideas through fascinating stories, this is an easy addition to your library. Matt’s America 250 recommendation was Molasses to Rum from the classic musical 1776. He wouldn’t name names, but he’s aware that some people watch the musical every Fourth of July as part of their annual tradition. The song describes the 18th-century Transatlantic economy, which was based on the economic cycle that fueled the “Triangle Trade” between the American colonies, West Africa, and the Caribbean. Have a question or topic idea? Reply to this email or drop it in the comments! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.econhappyhour.com

    51 min

  2. Jun 18

    The World Cup Is Making America Look Different

    The World Cup has brought millions of international fans to North America, and many are discovering aspects of American life that locals take for granted. Matt and Jadrian explore why visitors are fascinated by things like massive convenience stores, endless product variety, and regional chains. They also dig into the economics behind World Cup ticket prices, player compensation, and the surprising value of hosting global sporting events. Along the way, they discuss how soccer itself is changing as leagues seek new revenue streams. In this episode, we talk about: * Why World Cup visitors are going viral while discovering everyday American experiences. * How economies of scale help explain Buc-ee’s, giant convenience stores, and product variety. * Whether hosting major sporting events creates meaningful economic benefits. * The economics of ticket prices and why they may not be as outrageous as they seem. * How hydration breaks, advertising revenue, and changing soccer rules could reshape the sport’s future. If you liked this conversation, you might also enjoy This Week’s Drinks 🍻 With a morning recording session on a workday, the drinks menu leaned heavily toward breakfast beverages. Jadrian enjoyed a “non-alcoholic mimosa” (also known as orange juice), while Matt powered through with a Diet Mountain Dew that was specifically rebranded as “American Dew 250.” Name That Stat 📊 This week featured a pair of World Cup-themed statistics. The first number focused on the cheapest resale ticket price available for one of today’s matches. The other looked at the number of World Cup players who were born in a different country than the one they were representing on the field. Show Notes With the World Cup underway, one of the most interesting stories hasn’t been happening on the field. Instead, it’s been unfolding across social media as international visitors document their experiences traveling through the United States. Fans have gone viral for their reactions to Waffle House, Taco Bell, giant soda fountains, and especially Buc-ee’s. What seems ordinary to Americans often looks extraordinary to visitors encountering it for the first time. That observation led to a broader discussion about variety, competition, and economies of scale. Jadrian wrote about this in his Monday Morning Economist newsletter, connecting their experience back to the famous stories about Soviet leader Boris Yeltsin visiting American grocery stores decades ago. While the historical circumstances were very different, both stories revolve around the same reaction: amazement at the sheer number of choices available to consumers. From there, we shifted toward the economic impact of hosting events like the World Cup. Economists are often skeptical of exaggerated claims about sports-driven economic growth, but one potential benefit is much harder to measure: positive publicity. The flood of videos showing visitors enjoying American culture may improve perceptions of the United States as a travel destination long after the tournament ends. We also took some time to explore how ticket prices fit into the broader sports marketplace. While some World Cup matches are commanding hundreds or even thousands of dollars on secondary markets, those prices still look modest when compared to recent NBA Finals tickets. The comparison raises an interesting question about scarcity, prestige, and what people are willing to pay for a once-in-a-lifetime experience. Finally, one of the most intriguing economic storylines of this summer’s games is the introduction of hydration breaks. Officially designed to give players time to cool down, these stoppages also create opportunities for additional advertising revenue. Will soccer leagues around the world eventually adopt similar breaks now that it’s happening on the game’s biggest stage? The “rules of the game” are always evolving, and the best way to see that is looking back at some of Major League Soccer’s famously strange early attempts to “Americanize” soccer, including countdown clocks, shootouts, and eliminating ties. We covered a lot of the economics behind the World Cup in this episode, but we’re curious about something a little different, and we’d love your help. If a World Cup visitor came to your hometown or country, what’s the one place, meal, or experience you’d recommend to help them understand what makes it special? Drop your answer in the comments. If we’re ever in your neck of the woods, we just might add it to our itinerary. Pop Culture Corner 🍿 This week’s recommendation stayed firmly on theme. Jadrian’s recommendation was The Longest Penalty Shot in the World (El penalti más largo del mundo), a Spanish comedy built around an economist’s dream scenario. A backup goalkeeper suddenly finds himself responsible for stopping a championship-deciding penalty kick. Thanks to an unusual twist, the kick won’t happen until the next day. That delay creates endless opportunities for strategy, second-guessing, and game theory. The scene is a fun exploration of interdependence as everyone tries to predict what everyone else will do. Similarly, there is also a great scene from Ted Lasso involving Nate and AFC Richmond’s coaching staff. The coaches spiral into a chain of “he knows that we know that he knows” logic while trying to anticipate their opponent’s strategy. It’s a perfect pop culture example of common knowledge, strategic thinking, and the recursive decision-making that sits at the heart of game theory. Have a question or topic idea? Reply to this email or drop it in the comments! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.econhappyhour.com

    53 min

  3. Jun 4

    The Economy by Decade: The 2010s

    The 2010s were an unusual economic decade as there was a long recovery from the Great Recession without a major economic shock in the United States. We look at the trends that defined the era, including falling unemployment, the rise of smartphones, the growth of the gig economy, and the emergence of Bitcoin. Along the way, we debate whether Obamacare was the decade’s most important policy and whether low interest rates set the stage for some of today’s economic challenges. The result was a fascinating look at how many of today’s economic realities were built during the 2010s. In this episode, we talk about: * Why the 2010s may be remembered as the “recovery decade.” * The economic impact of smartphones, apps, and Bitcoin. * Which trends from the 2010s still shape the economy today. * The rise of gig work and changing labor markets. * Obamacare and the decade’s biggest policy battles. If you liked this conversation, you might also enjoy This Week’s Drinks 🍻 Jadrian is still working through a Sam Adams variety pack, with this week’s contribution being a Breakaway Blonde. Matt just got back from a cruise up to Halifax, and he’s cracking open a Tiny Angus from Breton Brewing Co. The beer itself wasn’t the entire story, though. The real adventure involved hauling a giant box of Canadian beer off the cruise ship after discovering that local liquor stores sold individual cans from regional breweries. Name That Stat 📊 Our numbers this week ranged from timely to topical. Matt shared the annual compensation of FIFA President Gianni Infantino, sparking a conversation about whether that figure is too high, too low, or about right compared to leaders of other major sports organizations. We initially skipped Jadrian’s number entirely, but remembered it midway through the episode. Fortunately, his statistic fit perfectly with our discussion of the 2010s, focusing on the amount of Bitcoin involved in the first-ever commercial purchase of two pizzas. Show Notes When people think back on economic history, they usually remember dramatic moments: crashes, recessions, bubbles, or breakthroughs. That’s what makes the 2010s such an interesting decade. One of the defining features of the period may have been the lack of a single major disruptive economic event in the United States. Instead, the decade was largely shaped by a long recovery from the Great Recession and a steady return to economic normalcy. While events like the European debt crisis, concerns over government debt, and political movements such as Occupy Wall Street and the Tea Party captured headlines, much of the economic story centered on slowly improving labor markets, rising household incomes, and a return to economic stability. Unemployment fell from nearly 10% at the start of 2010 to just 3.6% by the end of 2019. At the same time, labor force participation drifted lower as Baby Boomers retired and some workers left the labor market altogether. The result was an economy that slowly but consistently tightened, eventually producing stronger income growth in the latter half of the decade. With the benefit of hindsight, there are several candidates for the decade’s most important economic development. One contender was the rise of the gig economy. Companies like Uber and Lyft normalized flexible work arrangements and created entirely new ways for people to earn income. What felt revolutionary at the time now feels so commonplace that it’s easy to forget how quickly these platforms transformed labor markets. Several other developments quietly reshaped the economy. Fracking dramatically increased domestic energy production and helped keep energy prices lower than they otherwise would have been. Meanwhile, Bitcoin and cryptocurrency emerged from niche internet experiments into assets that would eventually become part of mainstream financial conversations. But if there was one innovation that connected nearly every major trend of the decade, it was the smartphone, which fundamentally changed how Americans navigate, shop, pay for goods, consume media, communicate, and even work. Ride-sharing apps, mobile banking, streaming services, social media, GPS navigation, and countless other conveniences all became possible because powerful computers migrated into our pockets. Looking back, it’s hard to imagine any other technology having a larger effect on daily life during the 2010s. Finally, no discussion of the decade would be complete without policy. The Affordable Care Act dominated political and economic debates throughout the 2010s, generating intense disagreement that continues today. Of course, this decade also saw regulatory reform, rising federal debt, and the broader political backdrop of the Tea Party movement and Occupy Wall Street. Whether you view these developments as successes, failures, or something in between, they helped define the economic and political landscape that carried into the 2020s. Economists love making lists, and we’re willing to admit ours might be incomplete. What did we miss? If there’s a defining economic moment from the 2010s that deserves more attention, tell us in the comments and make your case. Pop Culture Corner 🍿 Jadrian kept things topical with a look back at Shark Tank, one of the defining television hits of the 2010s. Beyond the memorable pitches and dramatic negotiations, the show offers a surprisingly useful way to teach economics. In the middle of the decade, a group of economists developed lesson plans and classroom activities built around selected clips from the show, using them to explore entrepreneurship, costs of production, and business decision-making. Matt’s selection was Hadestown, the acclaimed musical inspired by the myth of Orpheus and Eurydice. While the story is set in a post-apocalyptic world with strong Great Depression-era influences, it raises questions about migration, opportunity, labor, and economic hardship that connect surprisingly well to many of the issues discussed throughout the episode. Have a question or topic idea? Reply to this email or drop it in the comments! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.econhappyhour.com

    56 min

  4. May 21

    The Economy by Decade: The 2020s

    The 2020s have already delivered one of the strangest economic decades in modern history. We unpack how the pandemic reshaped work, inflation, housing, consumer behavior, and even the way economists think about recessions. We debate whether the pandemic or AI will ultimately define the decade, revisit the policy decisions that still shape the economy today, and talk through why everything from used cars to mortgage rates suddenly felt upside down. Along the way, we explore why the economy has seemed surprisingly resilient despite nonstop shocks, disruptions, and uncertainty. In this episode, we talk about: * Whether the pandemic or AI will be remembered as the defining economic event of the 2020s * Inflation, stimulus policies, tariffs, and the strange post-pandemic economy * How housing, work-from-home, and consumer habits permanently changed * Why the 2020s economy has felt unusually weird and unpredictable If you liked this conversation, you might also enjoy This Week’s Drinks 🍻 Jadrian cracked open a Hardywood Pils, leftover from an end-of-semester cookout with his TAs. He almost grabbed the PBR x Grillo’s Pickle Beer, but decided to save that adventure for a future episode. Matt went with a Hammerhead IPA from Big Oyster Brewery, a West Coast-style IPA brewed with six hop varietals for an intense citrus and grapefruit character with notes of pine. Name That Stat 📊 We originally planned to talk about the economics of higher education, so Jadrian brought in a stat on the number of graduate programs in the U.S., which has grown by roughly 69% since the early 2000s. But once we decided to launch our “economics by the decade” series, Matt pivoted to one of the defining economic indicators of the 2020s: the inflation rate that peaked in June 2022 at its highest level since the early 1980s. Show Notes We’re kicking off a new series that looks back at the biggest economic stories of every decade, starting with the 2020s and working backward through history. We’re taking a shot at making sense of the economic chaos of the 2020s. Honestly, “chaos” might undersell it a little. It should be no surprise that we start with the pandemic, which instantly disrupted employment, supply chains, education, consumer habits, and everyday life. But twenty years from now, will we remember the pandemic as the biggest story, or will the introduction of generative AI ultimately eclipse it? Perhaps the most common theme of the episode is how weird the economy has behaved this decade. Historically, recessions, unemployment, inflation, and growth tended to move together in more predictable ways. The 2020s constantly break those expectations. One easy example: the NBER determined that the pandemic recession officially lasted only two months, even though the traditional shorthand definition of a recession involves two quarters, or six months, of decline. Of course, the disruption lasted much longer than two months, which allowed educators the chance to explain the ways economists define and measure different indicators. The 2020s also included large spikes in inflation without the kind of sustained unemployment that economists might typically expect. The decade saw regional bank collapses, sweeping tariffs, and repeated uncertainty, but markets often just kept chugging along. Even the stock market wasn’t immune to the weirdness. There were also some pretty big policy decisions this decade, not all of which have been consensus picks. A lot of people would argue that the earliest rounds of pandemic relief were necessary to prevent economic collapse, while later stimulus packages may have contributed to inflation once the economy had already stabilized. But did policymakers really know the economy was in a good place at the time? Maybe not. There was no serious economic justification for imposing widespread tariffs on our trading partners, notwithstanding that tariffs are almost universally disliked by economists. One takeaway for listeners is that nearly every major decision of the decade came with enormous trade-offs and very little certainty. Not to be left out, but housing and consumer trends were also contenders for the defining stories of the decade. Ultra-low pandemic-era mortgage rates locked many homeowners into staying put, while newer buyers suddenly faced dramatically higher borrowing costs. Meanwhile, consumers saw a massive uptick in online ordering, curbside pickup, delivery apps, and mobile-first shopping experiences that never really disappeared afterward. In many ways, the 2020s feel like a decade where the economy keeps absorbing shocks that would have seemed unimaginable only a few years earlier. And somehow, despite all of it, things keep moving forward, even if nobody is entirely sure what “normal” is supposed to look like anymore. So tell us: what did we miss? What do you think will define the 2020s economically? And which decade are you most excited for us to cover next? Leave a comment and let us know how wrong we were. Pop Culture Corner 🍿 While it’s not a traditional pop culture contribution, Jadrian shared a book recommendation: Financial Diaries by Jonathan Morduch and Rachel Schneider. The authors draw on the lives of 235 low- and middle-income families over the course of a year, using those diaries to challenge popular assumptions about how Americans earn, spend, borrow, and save. The book highlights how income volatility, not just low income, creates financial stress for many working families. Matt has recently been working on expanding his pop culture reach across new disciplines, including political science and accounting. His contribution this week included a classic scene from Office Space, where “The Bobs” are brought in to audit Initech. The second clip comes from a project on helping accounting professors teach their courses. In the following scene from The Office, Michael Scott puts discount tickets randomly into boxes. The accounting question: how does that liability factor onto the balance sheet? Have a question or topic idea? Reply to this email or drop it in the comments! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.econhappyhour.com

    54 min

  5. May 8

    Why Teens Stopped Working

    Teenagers today are far less likely to work than previous generations. This episode explores the long decline in teen labor force participation and tries to identify some possible causes. The conversation also turns personal, with reflections on the skills we gained from working early. Along the way, we debate whether teenage jobs still provide important lessons in responsibility, communication, and independence. In this episode, we talk about: * Why teen labor force participation has fallen so dramatically since the 1970s * Whether modern teenagers value independence differently than previous generations * How working as a teenager builds confidence, responsibility, and communication skills * The role of extracurriculars and college competition in shaping teen time use * Whether colleges undervalue work experience compared to other activities If you liked this conversation, you might also enjoy This Week’s Drinks 🍻 Jadrian cracked open a Hardywood Fighting Hokie Hefeweizen, although the real story was that he found the unopened can under the seat of his car and has absolutely no idea how it got there. Matt kept things classic with a Dogfish Head 60 Minute IPA. It’s not quite as mysterious, but a reliable go-to. Name That Stat 📊 This week’s statistics covered two very different topics. Jadrian shared an estimate on the share of websites created since 2022 that may have been generated with artificial intelligence. Matt brought data on the share of teenagers participating in the labor force back in 1978, which set up the broader conversation for today’s episode. Show Notes This week’s episode centered on a deceptively simple question: why aren’t teenagers working as much anymore? The decline in teen labor force participation seems to happen in waves, but the long-term trend is unmistakable. One possible explanation is surprisingly simple: fewer teenagers are getting driver’s licenses, which means fewer have the independence or transportation needed to get to work. If there’s no rush to get out of the house and get a car, perhaps teenagers aren’t finding that same rush to get out and go to work. Another possible explanation is financial. With higher household incomes and smaller family sizes, parents may be more able to support their children without requiring them to earn their own spending money. That removes one of the biggest traditional incentives for teenagers to work in the first place. We also discussed how teenagers spend their time differently today. There’s growing pressure to focus on extracurricular activities, sports, leadership positions, and resume-building experiences, especially as college admissions have become more competitive. But that raises an interesting question: why are unpaid extracurriculars often viewed as more valuable than paid work experience? Finally, we explored the idea that some teenagers may avoid work because they don’t see a direct connection between a part-time job and their future career goals. If the payoff is not immediate or obvious, working may feel less worthwhile. In that sense, the decision not to work can become a strategic one rather than simply a matter of laziness or lack of opportunity. We want to hear from the parents out there: do your teenagers want part-time jobs? If not, what do you think changed compared to when you were growing up? Pop Culture Corner 🍿 Jadrian’s contribution had absolutely nothing to do with teen employment. Instead, he used the opportunity to recommend a new book from friend-of-the-show Brian O’Roark. His new book, Potternomics, explores economics through the world of Harry Potter. Hopefully, we can get Brian to join a future episode and talk Hogwarts economics with us. Turns out Matt also didn’t have a teen employment pop culture reference ready to go, so he pivoted to a guest lyric from Jay-Z on a Diamonds from Sierra Leone (Remix) track: “I’m not a businessman, I’m a business, man.” It’s a surprisingly useful way to think about personal finance and self-investment. Have a question or topic idea? Reply to this email or drop it in the comments! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.econhappyhour.com

    53 min

  6. Apr 23

    The Economics of Non-Compete Agreements

    This episode breaks down what non-compete agreements are and why they’ve become such a hot topic in labor economics. Matt and Jadrian explore when these contracts make sense and when they might go too far. They weigh the trade-offs between protecting company investments and limiting worker mobility, while also digging into recent policy debates and what non-competes mean for innovation and entrepreneurship. In this episode, we talk about: * What non-compete agreements are and why companies use them * Whether it’s reasonable to restrict employees from working for competitors * The fairness (or unfairness) of non-competes after leaving a job * The role of non-competes in limiting job mobility and career growth * State-level bans and the brief FTC attempt to outlaw non-competes nationally * Whether non-competes function similarly to patents in protecting investments If you liked this conversation, you might also enjoy: This Week’s Drinks 🍻 This week featured a couple of solid, no-nonsense beer picks. Jadrian went with a Sam Adams Cold Snap White Ale, a citrusy, spiced brew with clementine and orange peel that paired perfectly with chips and homemade salsa. Matt opted for a Founders Centennial IPA, a go-to choice that balances quality with value. Nothing says economist like getting a 15-pack for the price of a 12. Classic Matt. Name That Stat 📊 This week’s stats covered two very different corners of the economy. Matt brought in the surprisingly large number of Bitcoin ATMs in the U.S. after spotting one at a gas station. Jadrian followed up with a stat tied to last week’s conversation, showing that households spend about 5% more on groceries when men do the shopping compared to women. Show Notes Non-compete agreements sound simple at first: you work for a company, and in return, you agree not to work for their competitors. But the reality is much more nuanced. There are two main types: those that apply while you’re employed and those that extend after you leave. The first type makes a lot of intuitive sense. If you’re working for a company, it’s reasonable they don’t want you splitting time or sharing insights with competitors. Things get trickier with post-employment non-competes. On one hand, companies invest real resources into training employees and developing proprietary knowledge. From that perspective, it makes sense to protect that investment. It’s similar to how patents give firms time to profit from innovation before competitors can copy their ideas. But on the other hand, restricting workers after they leave can limit career opportunities and slow down the natural movement of talent in the economy. There can be some vagueness to these agreements that make the situation even stickier. Saying “you can’t work for a competitor” sounds straightforward, but defining a competitor isn’t always obvious. Is LinkedIn a competitor to a job board? Is Google? Without clear boundaries, these agreements can create uncertainty and risk for workers trying to make career moves. Non-competes may reduce job mobility, which is generally seen as healthy for both workers and firms. There’s also the argument that they suppress entrepreneurship. If people can’t leave to start competing businesses, fewer new ideas make it to market. While some claims (like thousands of startups being lost each year) may be overstated, the underlying concern is real. So, do the benefits of non-competes outweigh the economic costs? We’re in another familiar space for economists: it depends. Non-competes can be reasonable in some contexts, but they can also be overused or abused. The challenge is likely in balancing incentives for firms with freedom for workers. Have you ever been subject to a non-compete agreement? If so, did it actually change how you approached your next job search or the opportunities you considered? Pop Culture Corner 🍿 This week’s topic stumped us at first. We couldn’t quickly name a pop culture tie-in for non-competes. After a quick search, we found a great example from Hacks, where Deborah’s non-compete agreement becomes a major plot point. You can see what led up to that moment here: We usually stick to movies, TV, and music, but this time we’re also throwing in a real-world pop culture moment. A quick search reminded us of the famous story of Conan O’Brien navigating a non-compete agreement with NBC in 2010. It’s a good example of how these contracts can play out on a very public stage. Have a question or topic idea? Reply to this email or drop it in the comments! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.econhappyhour.com

    51 min

  7. Apr 9

    How Much Do You Know About Basic Money Questions?

    Explore the current state of financial literacy as we celebrate Financial Literacy Month. We walk through the “Big 3” financial literacy questions and discuss how surprisingly few people answer them correctly. For many people, financial knowledge is learned through experience rather than formal education, but that’s starting to change as more states push for personal finance requirements. In this episode, we talk about: * What Financial Literacy Month highlights and why it matters * The “Big 3” financial literacy questions and how people perform on them * Gaps in financial knowledge across education levels * How personal experiences shape financial understanding * Simple, practical advice for managing money more effectively If you liked this conversation, you might also enjoy This Week’s Drinks 🍻 Jadrian is working through a spring variety pack from Samuel Adams, featuring the Breakaway Blonde. Matt has cracked open an Edelmeister IPA from Poland, even though he’s never been to Poland and isn’t entirely sure where this one came from. It’s the middle of April, which means the end of the academic year is approaching. Things are getting busy, but it’s also a time filled with celebrations, ceremonies, and opportunities to recognize students’ accomplishments. Name That Stat 📊 April is Financial Literacy Month, which sets the stage for a conversation about how well people actually understand basic financial concepts, and the answer is: not as well as you might expect. Matt shares a statistic on the average retirement balance for people in their early forties, while Jadrian highlights how people perform on the Big 3 financial literacy questions across different education levels. Show Notes This week’s conversation focuses on how little formal financial education many people receive growing up, and how most people end up learning about money in practice. Even with advanced degrees in economics, it’s easy to feel unprepared when making real financial decisions for the first time. Much of our own understanding came through trial and error: credit card mistakes, missed payments, and learning how interest works in real life. These experiences can be costly, but they often become important turning points in building financial awareness. The “Big 3” questions cover topics on compound interest, inflation, and diversification, and can serve as a simple benchmark for financial literacy. Many people struggle with them, even though these concepts appear in economics courses. That raises a bigger question: are we teaching these ideas in a way that connects to people’s everyday financial decisions? There may be room to better bridge the gap between economic theory and personal finance. Finally, we share some practical advice based on both experience and common guidance. The most consistent recommendations tend to be: (1) build an emergency fund, (2) understand how interest works, especially on debt, (3) avoid carrying credit card balances, and (4) take advantage of employer retirement matches. More than anything, financial success comes down to building consistent habits rather than chasing perfect strategies. Small, steady decisions matter more than people often realize. Do you think we missed something that should be on that list? Let us know in the comments! Pop Culture Corner 🍿 Jadrian went with the song $ave Dat Money by Lil Dicky, which humorously focuses on cutting costs and avoiding unnecessary spending. He’s trying to do something that other rappers just can’t seem to understand. (Warning - NSFW.) Matt brings up an episode of Cheers where Rebecca, facing financial struggles at the bar, thinks the best plan is to use petty cash to buy lottery tickets. It’s definitely an example of questionable financial decision-making. Matt also recommends two books for those interested in personal finance: To Die with Zero and The Simple Path to Wealth. Both offer thoughtful perspectives on money, though they approach the topic from very different angles. Have a question or topic idea? Reply to this email or drop it in the comments! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.econhappyhour.com

    57 min

  8. Mar 27

    How Early Should You Get to the Airport?

    How early is too early to get to the airport? This episode looks at that question through an economic lens. We explore the tradeoffs between time, risk, and the cost of missing a flight, using data and real travel experiences. What seems like a simple decision turns out to reflect how we think about uncertainty, incentives, and risk. In this episode, we talk about: * The tradeoff between arriving early and risking missed flights * How opportunity cost shapes airport arrival decisions * Real-world data on how early people actually arrive at airports * Why small airports vs. major hubs change optimal timing * Risk aversion in travel decisions and flight planning * Airline incentives, overbooking, and voluntary bumping decisions If you liked this conversation, you might also enjoy This Week’s Drinks 🍻 Spring break might be over, but the drinks still feel like spring. Jadrian is trying a Sam Adams Blackberry Wheat Beer from a new variety pack, and Matt is pouring a Kalik from his recent cruise to the Bahamas. It’s a fitting way to celebrate some big news: Susquehanna has been ranked third in the country for undergraduate business experience by Poets & Quants. Name That Stat 📊 Matt kicked off our new segment with a number that highlights the recent jump in fuel prices from late February to mid-March. Jadrian kept things going with another price increase: how much fresh fruit and vegetables have risen over the past year. Show Notes Today’s episode was motivated by an article Matt read about a family who spent $30,000 on a cruise but lost it all at the gate. The issue? They were scheduled to fly into the cruise port the morning of departure, but their flight was delayed just enough that they missed the cruise entirely. We’re not diving into the economics of delays or cancellations, but the story got us thinking about a different question: how early should you get to the airport? It’s a simple setup that highlights a classic tradeoff. Arrive too early and you’re wasting time at the airport. Arrive too late and you risk missing your flight. The “right” choice depends on how you balance time versus risk. Survey data suggests many travelers aim to arrive one to two hours early, though actual behavior varies widely depending on experience and preferences. We share some of our own strategies, but it turns out that Nate Silver has been thinking about this too. Drawing on data from 800 flights, he offers a framework for when travelers should arrive at the airport. His approach considers many of the same factors we talked about, including things like drive time, airport size, and whether you’re flying through a regional airport or a major hub. George Stigler famously observed, “If you never miss a plane, you’re spending too much time at the airport.” It’s a common experience that is also a useful way to think about everyday decision-making. People differ in their tolerance for risk, how they value time, and how flexible they can be if something goes wrong. Whether it’s arriving early, cutting it close, or accepting compensation to take a later flight, each choice reflects a personal optimization problem shaped by constraints and incentives. Would you rather arrive early and wait, or risk missing your flight to save time? Pop Culture Corner 🍿 In a podcast first (we think), Matt ceded his pop culture segment so Jadrian could share two clips. The first comes from Brooklyn Nine-Nine, where a risk-averse character plans to arrive at the airport five hours early for a domestic flight. His coworkers convince him to go even earlier (seven hours ahead of departure). Despite all that, he still ends up missing the flight, though he had (of course) booked a backup flight just in case. In Jadrian’s second clip, he turns to the question of whether to accept airline vouchers to take a later flight. In Life in Pieces, one family repeatedly volunteers to get bumped in exchange for vouchers, only to end up stuck overnight when the last flight is canceled. They take it in stride, though, because the airline covers the hotel. Have a question or topic idea? Reply to this email or drop it in the comments! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.econhappyhour.com

    48 min
See All (95)

5
out of 5
8 Ratings

About

Economics Happy Hour is a podcast where two economics educators talk through current events, teaching, and research over a drink. Conversations are unscripted and focused on how economists actually think about the world and the classroom. www.econhappyhour.com

Information

  • Creator
    Matt & Jadrian
  • Years Active
    2023 - 2026
  • Episodes
    95
  • Rating
    Clean
  • Copyright
    © Economics Happy Hour
  • Show Website
    Economics Happy Hour Podcast

You Might Also Like