The Economy by Decade: The 2010s

The 2010s were an unusual economic decade as there was a long recovery from the Great Recession without a major economic shock in the United States. We look at the trends that defined the era, including falling unemployment, the rise of smartphones, the growth of the gig economy, and the emergence of Bitcoin. Along the way, we debate whether Obamacare was the decade’s most important policy and whether low interest rates set the stage for some of today’s economic challenges. The result was a fascinating look at how many of today’s economic realities were built during the 2010s.In this episode, we talk about:* Why the 2010s may be remembered as the “recovery decade.”* The economic impact of smartphones, apps, and Bitcoin.* Which trends from the 2010s still shape the economy today.* The rise of gig work and changing labor markets.* Obamacare and the decade’s biggest policy battles.If you liked this conversation, you might also enjoyThis Week’s Drinks 🍻Jadrian is still working through a Sam Adams variety pack, with this week’s contribution being a Breakaway Blonde. Matt just got back from a cruise up to Halifax, and he’s cracking open a Tiny Angus from Breton Brewing Co. The beer itself wasn’t the entire story, though. The real adventure involved hauling a giant box of Canadian beer off the cruise ship after discovering that local liquor stores sold individual cans from regional breweries. Name That Stat 📊Our numbers this week ranged from timely to topical. Matt shared the annual compensation of FIFA President Gianni Infantino, sparking a conversation about whether that figure is too high, too low, or about right compared to leaders of other major sports organizations. We initially skipped Jadrian’s number entirely, but remembered it midway through the episode. Fortunately, his statistic fit perfectly with our discussion of the 2010s, focusing on the amount of Bitcoin involved in the first-ever commercial purchase of two pizzas.Show NotesWhen people think back on economic history, they usually remember dramatic moments: crashes, recessions, bubbles, or breakthroughs. That’s what makes the 2010s such an interesting decade. One of the defining features of the period may have been the lack of a single major disruptive economic event in the United States. Instead, the decade was largely shaped by a long recovery from the Great Recession and a steady return to economic normalcy.While events like the European debt crisis, concerns over government debt, and political movements such as Occupy Wall Street and the Tea Party captured headlines, much of the economic story centered on slowly improving labor markets, rising household incomes, and a return to economic stability. Unemployment fell from nearly 10% at the start of 2010 to just 3.6% by the end of 2019. At the same time, labor force participation drifted lower as Baby Boomers retired and some workers left the labor market altogether. The result was an economy that slowly but consistently tightened, eventually producing stronger income growth in the latter half of the decade.With the benefit of hindsight, there are several candidates for the decade’s most important economic development. One contender was the rise of the gig economy. Companies like Uber and Lyft normalized flexible work arrangements and created entirely new ways for people to earn income. What felt revolutionary at the time now feels so commonplace that it’s easy to forget how quickly these platforms transformed labor markets.Several other developments quietly reshaped the econo