Justin Wolfers on the Cost of War

Justin Wolfers returns to the Hot Dish to unpack the economic and political impacts of the Iran war with Heidi and Joel. This episode offers a clear-eyed view of how markets, government decisions, and public sentiment intertwine during times of crisis.Justin explains the historic lows in consumer sentiment and approval ratings for political leaders, and addresses the real economic costs of the war, including market declines and wealth destruction. He also addresses:How the increased costs of energy and input supplies are impacting rural farmers and urban consumers (10:57)The political implications of leadership styles, democracy, and the "king" mentality in the White House (3:07, 5:01)The demonstration of market correction and its long-term significance, emphasizing the importance of resistance to overconfidence (14:02)The critical role of fiscal policy, debt, and deficits, with insights from Reagan, Clinton, Obama, and Trump eras (36:32)The human toll of war, including displacement and emotional trauma, versus the cold numbers of market losses (27:15, 34:27)How public perception and demonization affect policy, especially in the context of gas prices and military engagement (24:45, 28:19)The importance of connecting economic policy to human stories and moral considerations (33:13)Resources & Links:Justin Wolfers - University of MichiganConnect with Justin Wolfers:TwitterBlueskyThe Hot Dish is brought to you by the One Country Project. To learn more, visit OneCountryProject.org, or find us on Substack (Onecountryproject.substack.com), and on YouTube, Bluesky, and Facebook (@onecountryproject).