This week, Noah Smith and Erik Torenberg explore persistent economic myths and recent developments—from cost disease in services like healthcare and education to stagnating manufacturing productivity, rising higher education costs, drug pricing policies, and student loan debates—while also reflecting on broader intellectual shifts driven by culture wars and foreign aid discussions.

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RECOMMENDED IN THIS EPISODE:

Noahpinion: ⁠⁠⁠⁠⁠https://www.noahpinion.blog/⁠⁠⁠⁠⁠ 

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TAKEAWAYS:

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  Healthcare & Education Cost Trends Reversing: Healthcare price growth has slowed significantly since 2009 and is now growing slower than average costs.


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  Technology's Role in Services: AI potentially solving education through personalized one-on-one tutoring (referencing "The Diamond Age").


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  Student Loans & Market Dynamics: Marginal students are dropping out of college, reducing demand.


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  Pharmaceutical Pricing: Americans actually pay less on average for pharmaceuticals due to cheaper generics.


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  Cultural Commentary: Discussing intellectual debates between prominent thinkers (Tyler Cowen vs. Scott Alexander on foreign aid, Scott Alexander vs. Curtis Yarvin on governance), emphasizing the importance of not getting trapped in the cultural moment of 2020-2021.