Planet Money: "Would You Trust an Economist with Your Economy?"
Release Date: August 2, 2025
Host: Amanda Aronczyk, NPR's Planet Money
Introduction
In the August 2, 2025 episode of Planet Money titled "Would You Trust an Economist with Your Economy?", host Amanda Aronczyk delves into the growing distrust in economists and how this skepticism is impacting their ability to influence economic policy and public opinion. The episode explores historical missteps, current challenges, and potential pathways for economists to rebuild trust with the public.
Erosion of Trust in Economists
The episode opens by highlighting a significant incident where President Trump fired the head of the Bureau of Labor Statistics (BLS) amid accusations of falsifying job growth data. This event underscores the increasing scrutiny and skepticism economists face today.
Notable Quote:
"The job of economists is to interpret indicators, but when leaders like Trump accuse them of faking numbers, distrust escalates."
— Amanda Aronczyk [00:50]
Amanda recounts a session from the American Economic Association annual meeting, emphasizing the palpable tension among economists as they grapple with public skepticism.
Notable Quote:
"People don't believe economists. Why should we listen to you?"
— Ben Castleman [04:20]
Historical Missteps and Their Impact
The discussion delves into pivotal moments that have undermined the credibility of economists, notably the 2008 financial crisis. Diane Swonk, Chief Economist at KPMG, reflects on missing the housing bubble burst and the subsequent global financial turmoil.
Notable Quote:
"I missed it. And when you miss the really big things, it's heart-wrenching."
— Diane Swonk [09:37]
Swonk further explains how prominent figures like Jack Welch publicly questioned the integrity of BLS data, fostering widespread doubt in official economic statistics.
Notable Quote:
"There's no conspiracy. There's no, you know, that just isn't how it's done."
— Diane Swonk [11:35]
Current Challenges in Economic Data Trustworthiness
Aaron Sojourner, a labor economist at the Upjohn Institute for Employment Research, discusses the challenges posed by political interference in economic data collection and reporting. He emphasizes the dedication of BLS statisticians to maintain neutrality despite external pressures.
Notable Quote:
"These numbers are produced by civil servants who are dedicated to the reliability and accuracy of these things."
— Aaron Sojourner [13:05]
However, the recent firing of the BLS head by President Trump has left economists like Sojourner uncertain about the future integrity of economic data.
Notable Quote:
"It might serve a political narrative, but it hurts people's ability to make informed decisions."
— Aaron Sojourner [15:12]
Perceptions of Economic Expertise
A cited YouGov survey reveals that only 25% of Americans trust economists, a figure notably lower than trust in other professionals like nurses (84%) and doctors. This statistic underscores the widespread skepticism economists must contend with.
Notable Quote:
"Why on earth should we expect that to be true?"
— Ben Castleman [04:10]
Nick Bloom, a Stanford economist specializing in the dynamics of remote work, illustrates how even well-researched economic findings can be dismissed if they clash with personal experiences or corporate agendas.
Notable Quote:
"There are some CEOs... in their 60s... and they've done it in the office. And that's pretty much their view on how most others should operate."
— Nick Bloom [17:17]
Strategies to Rebuild Trust
The episode transitions to potential solutions for restoring trust in economists. Ben Ho, a professor at Vassar College and author of "Why Trust? An Economist's Guide to the Ties that Bind Us," introduces the concept of "costly signals" as a method for economists to demonstrate their reliability and integrity.
Notable Quote:
"Costly signals take time or money or risk. They're things that are hard to fake and signal we are willing to go that extra mile."
— Ben Ho [26:38]
Ho outlines a three-step approach:
-
Acknowledge Past Mistakes: Economists must openly admit and take responsibility for past errors to demonstrate accountability.
Notable Quote:
"Acknowledging the mistakes we made in the past... is a good first step."
— Ben Ho [28:21] -
Increase Transparency: By making their methodologies and data more accessible and understandable, economists can demystify their work and reduce suspicion.
Notable Quote:
"Increasing transparency is a really important part of trust building."
— Ben Ho [29:02] -
Promise to Do Better: Committing to improved practices in the future serves as a tangible promise to the public.
Notable Quote:
"As an economist, I am making you a promise right now. You know, in the future, we'll do better."
— Ben Ho [30:59]
Ben Castleman adds that personal accountability, such as writing individual apologies or acknowledgments, can further bolster trust.
Notable Quote:
"Economists acknowledging what they have gotten wrong... helps their credibility."
— Ben Castleman [31:38]
Conclusion
Amanda Aronczyk wraps up the episode by emphasizing that while the field of economics faces significant challenges in regaining public trust, there are actionable steps economists can take to bridge the gap. By embracing transparency, accountability, and proactive communication, economists can begin to restore their credibility and effectively influence policy and public discourse once more.
Notable Quote:
"It's going to take time for them to build it back again."
— Ben Castleman [33:41]
Key Takeaways
-
Historical Failures: Events like the 2008 financial crisis have had long-lasting effects on public trust in economists.
-
Current Challenges: Political interference and high-profile dismissals (e.g., President Trump's firing of the BLS head) exacerbate skepticism.
-
Strategies for Rebuilding Trust: Economists need to acknowledge past mistakes, increase transparency, and commit to future improvements through "costly signals."
-
Ongoing Efforts: Initiatives like the replication crisis in economics aim to enhance the reliability and credibility of economic research.
Further Reading: For more insights, Ben Castleman's article in The New York Times titled "Economists are in the Wilderness. Can They Find a Way Back to Influence?" provides an in-depth look at the challenges and potential pathways for economists to regain their standing.
This summary captures the essence of the Planet Money episode, highlighting the critical issues of trust in economics and the proposed solutions to address this growing concern.