Last summer, Congress passed one of the biggest cuts to food assistance in a generation. SNAP — the program a lot of folks still call food stamps — pays about $188 a month, roughly $6 a day for groceries like milk, eggs, rice, and peanut butter. It's not enough to live on, but it's the thing that lets a parent say yes to fruit this week instead of no.

In this Diving In episode, Justin walks you through what actually happened in four parts: what SNAP is and who leans on it, how the cuts ended up tucked inside Trump's 2025 budget law alongside big tax cuts for rich households, what the law actually changed, and what the data show now. The key detail: the new formula dings states for paying the wrong amount but not for wrongly turning eligible families away — a recipe for a slower, more suspicious system. By spring 2026, more than 4 million people had lost benefits, including an estimated 1.5 million children, even as nearly one in four adults still couldn't reliably afford enough food.

If your mum, your uncle, or your own household counts on this help, this is the shift that decides whether dinner is the thing that gives when the month runs long. Justin's takeaway: when politicians cut a program, don't just ask how much they saved — ask who lost what.

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Trump's new 50% tariffs on Canada bypass USMCA — here's what it really means for you.

President Trump just hit a limited set of Canadian goods with 50% tariffs, and he did it by dusting off Section 338 of the Tariff Act of 1930 — a law last used when Herbert Hoover was in the building. Justin Wolfers walks you through what actually happened, why it's stranger than it sounds, and why the direct cost to the U.S. is smaller than the message behind it.

Here's the twist: throughout the earlier trade wars, being compliant with the USMCA free trade agreement was your escape hatch — roughly 90% of Canadian goods came in duty-free. These new proclamations ignore that agreement entirely. Justin's quick-and-dirty math says the tariffs cover a bit more than $20 billion of imports, about 5% of what we buy from Canada — meaning maybe $50 to $150 a year on your household, plus higher prices from American firms that now face less competition. For Canada it's a real hit: close to 1% of GDP.

But the bigger story is confidence. If a signed trade deal only holds until the next presidential mood swing, it's not really a rule. Justin argues Canada is the test case — a warning to the roughly 60 countries facing new tariffs any week now: retaliate, and your trade deal may not save you.

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In this latest episode of The Professor Is In, Justin answers listener questions and responds to comments from his latest episode dispelling the hype around Trump Accounts. Justin argues that Trump accounts are really two policies bundled together. There’s the attention-grabbing $1,000 payment for newborns, which has a genuine “kernel of genius” if the goal is to introduce families to saving, investing, and compound interest. But that piece is temporary. The larger, more durable part is a tax-advantaged wealth-transfer tool that primarily helps upper-middle-class families pass assets to their children.

Wolfers connects these accounts to other temporary Trump-era tax promises — on tips, overtime, and Social Security — and contrasts those short-lived populist gestures with more permanent tax cuts for the rich. The result, he argues, is a style of fiscal policy that looks pro-worker on the surface while delivering much larger long-run gains elsewhere.

Justin also explains why complexity is not just annoying — but economically harmful. When benefits are routed through a maze of tax rules, account types, and employer provisions, take-up falls. And the people most likely to miss out are often the families who can least afford to, making  an already regressive system even more unequal.

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Diving Into Trump Accounts: https://omny.fm/shows/platypus-economics/the-truth-about-trump-accounts-read-the-fine-print-diving-in 

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In this episode of Off the Clock, Justin and Stacey break down some of the week’s biggest economic news — letting you know what to actually worry about, what you can safely ignore, and where to find some silver linings.

This week they discuss the collapse of the Iran ceasefire and what it might mean for the economy. They also break down the latest inflation numbers, why the relief is probably short lived, and how inflation is starting to show up in less obvious and more surprising ways.

Then, in response to the terrible air quality affecting both Ann Arbor and New York, Justin gives Stacey a quick lesson on public goods, before sharing a surprising good news milestone.

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In this episode of Diving In, Justin Wolfers explains why the new Trump Accounts are actually two very different policies jammed into one. First, there’s the headline-grabbing piece: a one-time $1,000 government deposit for babies born in a narrow window between 2025 and 2028, alongside a permanent tax-advantaged savings account that mainly helps families who can afford to keep contributing.

The central problem, Justin argues, is that the biggest gains go to households with higher incomes, higher tax rates, and employers able to contribute on their behalf. He also takes apart the White House’s eye-popping projections. Those huge future balances depend on years of private saving, unusually optimistic market assumptions, and nominal dollar figures inflated by time and inflation. In other words: the glossy numbers are technically possible, but deeply misleading for ordinary families trying to judge what this policy really means.

Finally, Wolfers asks and answers the practical question: despite these flaws, is a Trump Account still a good choice for you? Depending on your goals, a 529 plan, Roth IRA, or even a standard brokerage account may be a better option. The stakes are high: if you mistake a tax break for populist policy, you miss who really benefits—and make worse choices for your own family’s money.

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The latest CPI report came in better than expected: headline inflation slowed to 3.5% and experienced its largest one-month decline since April 2020. But better-than-expected does not mean problem solved. Falling energy prices were largely responsible for this positive news, and a renewed war with Iran could quickly reverse that progress. As oil prices rise once more, those costs can spread quickly from the gas pump to airfare, shipping, groceries and beyond.

In this episode, Justin also investigates what our current rate of inflation (still historically high) means for your paycheck. Wages may be rising, but higher prices can wipe out those gains. That helps explain why many Americans feel like they’re working just as hard without getting ahead. And while today’s numbers have reduced pressure on the Fed for aggressive interest rate hikes, tariffs, geopolitical shocks, and inflation expectations are still in play, making the road back to price stability far from smooth.

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Justin is back for another episode of The Professor Is In, answering questions, responding to comments, and clarifying his previous takes. The gas price story is not just about your local station—it runs through refining, production constraints, inventories, retail competition, and consumer behavior. When oil prices rise, gas prices can adjust within days, but when they fall, the trip back down is slower—and there are several possible reasons, from tacit collusion to slower consumer search to real production asymmetries.

The conversation also widens into one of the biggest ideas in macroeconomics: sticky prices. Across much of the economy, businesses don’t constantly update prices when demand or costs change, and this stickiness can keep markets from quickly returning to equilibrium. Justin also tackles the slippery question of price gouging. Is there a technical definition? Not really. He explains why economists struggle to define it cleanly, even though ordinary people often feel they know it when they see it. That tension matters for policy debates, including anti-price gouging laws and investigations into unfair pricing.

Chapters
00:35 Does the "Rockets and Feathers" pattern show up in other places?
05:05 Why don't supply chain factors slow prices on the way up?
07:35 What even *is* price gouging?
10:13 What policy tools exist to prevent price gouging?
11:42 Do apps like Gas Buddy help facilitate collusion?
14:18 How are you feeling about your bet on midterm gas prices?

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Oil prices spike and pump signs change almost instantly. But when crude falls, the savings trickle in slowly — if they arrive at all. This pattern, known as "rockets and feathers," is real and measurable across decades of data. But does it prove oil companies are gouging you, or is something else entirely responsible?

In this episode, Justin Wolfers breaks down what the data actually reveal about gas price asymmetry, explores three plausible mechanisms that could create it — from consumer search behavior to tacit strategic interaction to supply chain dynamics — and explains why proving wrongdoing is much harder than spotting the pattern. Most importantly, he shows you when information actually matters: not on the way up (bad news travels fast), but on the way down, where checking a gas-price app or comparing nearby stations can help you find relief faster than waiting for the market to deliver it.

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Justin is back with Stacey Vanek Smith for another episode of Off the Clock just in time for America’s 250th birthday. The two of us dive into the latest economic news, and sift through the noise so you don’t have to.

This week’s conversation covers the latest jobs report (disappointing but far from a disaster), the possible causes of the ongoing disconnect between economic statistics and consumer sentiment, the pros and cons and a less transparent Fed, and America’s newest addition to its tax code—Trump accounts.

To wrap things up, Justin and Stacey look back on the many ways life has improved for Americans over our nation’s 250 years—from income to life expectancy to jobs, and what that might tell us about the future of work and our next quarter-millennium.

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Is a “bad” jobs number is closer to normal than you think?

In this 10-minute breakdown, Justin Wolfers explains how to read the latest jobs report without overreacting to a single headline. June payroll growth came in at 57,000, which looks weak by the standards of a few years ago. But those older standards may no longer fit an economy with slower population growth and lower immigration. The labor market may now need only around 60,000 new jobs a month to stay in balance.

Justin also discusses what’s really driving the labor market. The answer is not manufacturing, but healthcare and social assistance. In fact, more than 100% of net job growth since January 2025 has come from those sectors alone, while the rest of the economy has lost jobs overall. This matters for two reasons. First, it explains why women have received 90% of the jobs created in this expansion. Second, it illuminates why so many Americans feel economic opportunity is shrinking. If you are not in the sectors that are expanding, the economy may feel far weaker than the headline unemployment rate suggests.

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Inflation doesn't just raise prices — it tricks you into staring at bigger dollar numbers instead of asking what those dollars can actually buy. A two percent pay raise sounds great until inflation is running at three percent. Your savings account pays more interest until you realize it's still losing purchasing power. This is “money illusion,” and it costs you real money.

In this episode, Justin Wolfers explains why inflation is like driving through fog: The signals are still there, but they're much harder to read. He walks through the mental shift you need to make — from thinking in dollar signs to thinking in purchasing power — then reveals five practical strategies you can use right now to protect yourself and your wallet. But there is also a deeper lesson revealed: Good economics is about asking what the number you’re seeing really means. Once you start asking it, you're ready to protect yourself during inflationary times.

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