Episode Summary: "How’s … Everybody Doing?"
Podcast: The Indicator from Planet Money
Host: Darren Woods
Release Date: March 25, 2025
Introduction
In this episode of The Indicator from Planet Money, host Darren Woods delves into the current economic landscape by moving beyond traditional economic indicators to capture the nuanced sentiments and experiences of everyday Americans. Faced with economic uncertainty, Woods and his team conducted informal polling across various regions to assemble an "economic audio photo album" that reflects how individuals perceive and react to the present state of the economy.
Economic Uncertainty and Public Sentiment
Woods opens the discussion by highlighting the ambiguity surrounding the economic future, citing Fed Chair Jerome Powell’s recent admission of uncertainty:
“We're at this uncertain moment for the economy and even Fed Chair Jerome Powell said last week, we're going to have to see how things actually work out.” [00:11]
To grasp the public’s perspective, the team conducted interviews from diverse locations, including street parties in the South, a bookstore in LA, and a boardroom in Denver. This approach revealed a common thread of anxiety and caution among Americans regarding the economy.
Inflation and Cost of Living
A significant theme emerging from the conversations was the frustration over high prices and the rising cost of living. Despite official inflation rates cooling to 2.8%, close to the Federal Reserve’s target, people's perceptions remain anchored to past inflation spikes:
“Everything is so expensive. Because the cost of living doesn't meet up with the economy.” [03:21]
This disconnect between actual inflation and public perception is driving behavior changes, with individuals prioritizing saving over spending. For instance, Isis Benson from Brooklyn shares her disciplined approach to saving:
“I'm in a good headspace because I'm living, like, well below my means right now.” [05:13]
Shifts in Spending and Business Impacts
As Americans tighten their budgets, businesses across various sectors are experiencing mixed impacts. While some, like Rob Carpenter’s home cleaning business in Colorado, face significant downturns (“down probably 30% on the year”), others maintain optimism. Daniel Harberger of Woof, a company producing dog treat-dispensing toys, remains confident in his business despite challenges posed by tariffs:
“The tariffs making China costlier have unexpected side effects... We are not only taking away manufacturing markets, but we're also taking away a really valuable tool for innovation.” [06:45]
Harberger discusses his strategy to mitigate tariff impacts by diversifying manufacturing locations and adjusting pricing for new products.
Investment Decisions Amid Market Volatility
Economic turbulence has influenced personal investment strategies. Nathan Gabbard, a lawyer and bookstore owner in LA, opted to liquidate his investments following a stock market decline:
“I liquidate everything from stocks and crypto probably a month ago... I try to lean in when everyone else is scared.” [07:30]
Conversely, individuals like Barb Bruhis in Denver view market downturns as buying opportunities, particularly in real estate:
“I am in the midst of buying a house right now, and I feel like I got a really good deal on it.” [08:15]
However, not all responses are optimistic. Monique Wallace from Brooklyn expresses hesitation about future investments due to economic uncertainties:
“I just want, you know, make sure I save a little bit more money.” [08:45]
Labor Market Insights
Despite a relatively low unemployment rate of 4.1%, Woods uncovers underlying tensions within the labor market. While many individuals feel secure in their jobs, others face instability and underemployment. Erin Fredericks from Brooklyn, recently unemployed, highlights the challenges:
“So right now, not too great.” [09:10]
Additionally, some workers are juggling multiple jobs and feeling underpaid, as illustrated by Priya Skelly:
“I have three jobs, feeling underpaid for the most part and looking to make some more money than I usually have been.” [09:22]
These insights reveal that while the headline unemployment figures appear stable, many Americans are grappling with job insecurity and insufficient income.
Final Reflections: Public Perceptions of the Economy
To encapsulate the public’s view of the economy, Woods solicited single-word summaries from interviewees. The responses ranged from "Anxious" and "Uncertain" to "Blessed" and "Crazy," reflecting a spectrum of emotions:
“Anxious. Uncertain. Cautious. Think it's working. Unfair.” [10:16]
“Terrible. Questionable. Precarious. Difficult. Crazy.” [10:37]
This collection of sentiments underscores the complex and often contradictory feelings Americans hold about the current economic situation.
Conclusion
The episode "How’s … Everybody Doing?" presents a multifaceted portrait of the American economy by blending traditional economic analysis with personal narratives. While official indicators like inflation and unemployment rates suggest stability, individual experiences reveal pockets of anxiety, cautious optimism, and resilience. Woods effectively captures this dichotomy, offering listeners a comprehensive understanding of how economic forces are shaping lives across the nation.
Production Credits:
Produced by Julia Ritchie, Cooper Katz McKim, Angel Carreras, and Lily Quiros. Engineered by Robert Rodriguez and Kwesi Lee. Fact-checked by Sarah Juarez. Edited by Cake and Cannon. The Indicator is a production of NPR.