288. The economy explained (Part 1 with Evan Lucas)

Most of us only think about the economy when something's gone wrong, and according to economist Evan Lucas, that's by design. In part one of a four-part series, Ana sits down with the author of Mind Over Money to go right back to first principles: what an economy actually is, how we measure it, and why the whole thing behaves more like a circle than a straight line. No jargon, no judgement, just the questions you'd never ask at a dinner party.In this episode we'll discuss:💸 What an economy is actually for, and the "Goldilocks" conditions (2 to 3% growth, ~2% inflation, a neutral cash rate) that almost never all show up at once💸 GDP broken into its four parts, and why household consumption makes up 60 to 70% of it in countries like Australia💸 Supply and demand explained through Wiggles tickets and Nvidia chips, plus what happens when demand outruns supply by a mile💸 Stagflation: what went wrong in the 1970s oil crisis, and whether there's an argument we're seeing shades of it now💸 Why GDP data arrives 65 days late, and the forward indicators (job ads, spending data, consumer confidence) that tell you what's happening right now💸 The Aussie farmers who stockpiled diesel on an expectation, and how that one behavioural choice moved real prices💸 Homo economicus and why Evan reckons the useful distinction isn't rational versus irrational, it's rational versus reasonableEconomics gets treated as maths and graphs, but most of it comes down to how people feel and what they do next. Evan's one-sentence definition: it's the study of how to better society, and the catch is that doesn't always translate to the individual. Stay tuned for parts two, three and four.Happy EOFY from pearler! Sign up in July using the code GETRICHSLOW for 12 months worth of free trades 💸And for existing customers, sign up to a new pearler product and you'll get 12 months worth of free trades too! 💸Case Study Form@tashinvests@anakresina@getrichslowclub@pearlerhqGet Rich Slow ClubPearlerYouTubeHow To Not Work ForeverDisclaimer Any advice is general and does not consider your financial situation needs, or objectives, so consider whether it’s appropriate for you. You should also consider seeking professional advice before making any financial decision.Tash Invests Pty Ltd is a Corporate Authorised Representative #1317713 of Rask Licensing Pty Ltd. Read the FSG available from https://tashinvests.com/linksPearler is an Authorised Representative #1281540 of Sanlam Private Wealth Pty Ltd AFSL #337927. Read the FSG available from https://pearler.com/financial-services-guideIf you are considering any of the products we spoke about during the show, be sure to read the Product Disclosure Statement & Target Market Determination available from the product issuer’s website before deciding. Hosted on Acast. See acast.com/privacy for more information.