The Two-Handed Economist

Baker Institute
Baker Institute
  • 5.0 (7)
  • Politics
  • Updated Weekly

“The Two-Handed Economist” delivers timely analysis of economic news from John Diamond, director of the Baker Institute Center for Tax and Budget Policy. Each week, John will dive deep into the latest policy developments — mostly at the federal level, but with insights now and again into Texas and Houston finance as well. Why a two-handed economist? President Harry Truman famously asked for a one-handed economist, tired of hearing, “On the one hand, this,” and “On the other hand, that.” John embraces the complexity that a one-handed economist might shy away from, explaining how it all adds up for consumers, businesses, and policymakers. This show is for anyone looking for a clear-eyed, common-sense perspective on economic policy issues.

  1. Aug 26

    15: Is America Saving the Yen — or the US Treasury Market?

    Japan made financial headlines last week after spending over $50 billion to defend its currency. Even more noteworthy was the U.S. response: For the first time since 1998, the U.S. Treasury intervened to help strengthen the yen, selling euros in the process. In the latest episode of “The Two Handed Economist,” John Diamond dives into these currency moves and explains why the U.S. is intrinsically tied to the stability of the Japanese yen.  This episode explores the yen carry trade, Japan’s enormous holdings of U.S. treasuries, the Foreign and International Monetary Authorities (FIMA) Repo Facility and its potential expansion, and why Washington may have a powerful incentive to prevent Japan — and other foreign holders — from selling American government debt. Diamond also examines the Treasury’s recent decision to dramatically expand long-term bond buybacks and asks whether these moves point to a broader effort to stabilize America’s increasingly vulnerable bond market. This conversation was recorded on Aug. 19, 2026.  Mentioned in this episode: Economist Mohamed El-Erian, https://x.com/elerianm/status/2090058533005836374.  “Economists Warn That Treasury’s Bond Markets Fix Is Short Term,” (NOTUS), featuring RSM’s Chief Economist Joe Brusuelas.  “Treasury doubles debt buybacks as Bessent moves to steady bond market,” (CNBC),  featuring Peter Boockvar, chief investment officer at One Point BFG Wealth Partners.  Follow John Diamond on X (@jw_diamond) and LinkedIn. You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.

  2. Jul 2

    14: The Future of Social Security

    The annual Social Security Trust Fund report, published June 9, 2026, presents a troubling outlook for the future. If no action is taken, the trust fund will be depleted, requiring a 22% reduction in scheduled retirement benefits beginning in 2032. In this episode of “The Two-Handed Economist,” John W. Diamond discusses the history of Social Security, previous reforms to the system, and the need for Congress to act before those reductions take effect. Looking back at the last major reform during the Reagan administration, Diamond outlines possible solutions and compares them with the measures that helped address the program’s financial challenges at that time. Special guest Bill King joins Diamond to discuss the long-term need for reform in light of a shrinking workforce and a growing retirement-age population. They examine a demographic challenge that is reshaping the program’s finances and discuss potential policy approaches to help ensure the long-term sustainability of Social Security. This conversation was recorded on June 18, 2026. Featured guest: Bill King, Fellow in Public Finance Mentioned in this episode: The 2026 OASDI Trustees Report Follow John Diamond on X (@jw_diamond) and LinkedIn.   You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.

  3. May 20

    From 'Baker Briefing:' How the Iran War Is Hitting Americans at Home

    As conflict with Iran intensifies, economic consequences are beginning to extend beyond the battlefield, from rising energy prices to growing concerns about inflation and household costs. Ambassador David M. Satterfield and John W. Diamond, director of the Baker Institute Center for Tax and Budget Policy, discuss what a prolonged conflict could mean for the U.S. economy — and why everyday Americans may soon feel the effects.   This conversation was recorded on May 20, 2026.   Listen and subscribe to “Baker Briefing” on Apple, Spotify, or your preferred podcast platform.   You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.

  4. Apr 16

    From 'Baker Briefing:' Tax Day Edition — Debt, Defense, and Economic Uncertainty

    It’s Tax Day, and this episode steps back from the headlines to look at the forces shaping the U.S. fiscal and economic outlook. From the latest federal budget proposals and rising defense costs to updated projections from the Congressional Budget Office (CBO) and the Treasury Department on deficits and debt, the fiscal picture is facing growing pressure.   Ambassador David M. Satterfield and John W. Diamond examine how the costs of ongoing and potential conflicts factor into an already strained budget environment, alongside broader economic crosscurrents, including private equity stress, immigration trends, tariffs, fiscal stimulus, and the rapid rise of artificial intelligence.   With geopolitical tensions adding uncertainty, this episode asks: How much stability remains in the system?   This conversation was recorded on April 15, 2026.   Listen and subscribe to “Baker Briefing” on Apple, Spotify, or your preferred podcast platform.   You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.

  5. Mar 27

    13: The Federal Budget’s March Madness

    If the Federal Government was scaled down to a household budget, it would make $52,000 a year and be spending $73,000 – a surplus of $21,000 that would quickly put the average American in debt. In this episode of “The Two-Handed Economist,” John Diamond dives into the current financial state of the Federal Government and its connection to the silent but approaching private credit troubles looming in the background. By taking the trillion dollar issue of the Federal Government and moving it into a scalable point of reference, Diamond explains the long-term accountability issues that are only going to worsen in our budget.  On the private credit side, he sheds light onto this opaque, untested market and warns its vulnerability could spill over to the public market and Capitol Hill, pressuring lawmakers to step in and provide relief in their already inflexible financial state.  This conversation was recorded on Mar. 24, 2026. Follow John Diamond on X (@jw_diamond) and LinkedIn. You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.

  6. Feb 24

    From 'Baker Briefing': Supreme Court Tariff Decision: What Comes Next for Trade, Markets, and Manufacturing

    What happens to the economy when the U.S. Supreme Court overturns a major Trump administration tariff strategy? On Feb. 20, 2026, the Court struck down sweeping tariffs imposed under emergency authority, forcing a rapid policy shift and raising new questions about trade, markets, and the federal budget. In this episode of “Baker Briefing,” Ambassador David M. Satterfield is joined by John W. Diamond, director of the Baker Institute Center for Tax and Budget Policy, to break down the economic impact of the ruling. They discuss whether tariffs delivered on promises to boost manufacturing and generate revenue, how their removal could affect deficits and inflation, and why uncertainty — more than any single policy — may shape the outlook for businesses and global markets. The conversation also examines what tariff tools remain available to the administration and what comes next for U.S. trade policy. This conversation was recorded on Feb. 23, 2026.  Featured: Ambassador David M. Satterfield John W. Diamond, Ph.D. Mentioned in this episode: Learning Resources, Inc., et al. v. Trump, President of the United States, et al., U.S. Supreme Court, announced February 20, 2026. This conversation was recorded on Feb. 23, 2026. You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.

  7. Feb 12

    From 'Baker Briefing': Did Trump’s Tariffs Work? What the Economic Data Shows

    The Trump administration has touted its tariff strategy as a historic economic success, citing record stock market highs, falling trade deficits, and “virtually no inflation.” But what do the numbers actually show? In this episode of “Baker Briefing”, Ambassador David Satterfield sits down with John Diamond, Director of the Baker Institute’s Center for Tax and Budget Policy, to examine the data behind the claims. They break down who really pays for the tariffs, what’s driving GDP growth, and whether inflation has truly fallen. This conversation offers an objective assessment of how tariffs are reshaping the U.S. economy and who is ultimately better off as a result.   Featured: Ambassador David Satterfield: https://www.bakerinstitute.org/expert/david-m-satterfield  John Diamond, Ph.D.: https://www.bakerinstitute.org/expert/john-w-diamond   Mentioned in this episode: “Donald J. Trump: My Tariffs Have Brought America Back,” Wall Street Journal.  Two-Handed Economist Podcast, hosted by Dr. John Diamond: https://www.bakerinstitute.org/two-handed-economist-podcast  This conversation was recorded on February 10, 2026.  You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.

  8. 11/06/2025

    12: Shutdown Economics, AI Layoffs, and Trade Deals in Asia

    John Diamond argues that the government shutdown has become an economic tax on ordinary Americans. Meanwhile, the Federal Reserve is heeding warning signals from the labor market as artificial intelligence and automation rewrite the rules for major industries, prompting companies like Amazon, UPS, and Intel to lay off thousands of workers. In other news, President Donald Trump is busy signing trade deals in China and Southeast Asia. But the deals’ actual value depends on how long they’re sustained. This episode was recorded on Oct. 29, 2025.  Follow John Diamond on X (@jw_diamond) and LinkedIn. You can follow @BakerInstitute on X, Instagram, LinkedIn, and YouTube. Learn more about our data-driven, nonpartisan policy research and analysis at bakerinstitute.org.

    12: Shutdown Economics, AI Layoffs, and Trade Deals in Asia
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Ratings & Reviews

5
out of 5
7 Ratings

About

“The Two-Handed Economist” delivers timely analysis of economic news from John Diamond, director of the Baker Institute Center for Tax and Budget Policy. Each week, John will dive deep into the latest policy developments — mostly at the federal level, but with insights now and again into Texas and Houston finance as well. Why a two-handed economist? President Harry Truman famously asked for a one-handed economist, tired of hearing, “On the one hand, this,” and “On the other hand, that.” John embraces the complexity that a one-handed economist might shy away from, explaining how it all adds up for consumers, businesses, and policymakers. This show is for anyone looking for a clear-eyed, common-sense perspective on economic policy issues.

Information

  • Channel
    Baker Institute
  • Creator
    Rice University’s Baker Institute for Public Policy
  • Years Active
    2025 - 2026
  • Episodes
    19
  • Rating
    Clean
  • Copyright
    © 2025 Rice University’s Baker Institute for Public Policy
  • Show Website
    The Two-Handed Economist

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