Econ 101 in the age of COVID-19

As we record this episode in March of 2020, the world is experiencing an unprecedented challenge in responding to the COVID-19 illness. To slow the spread of COVID-19, governments around the world have instituted significant restrictions on social interactions that have disrupted daily life and resulted in a lot of economic uncertainty and personal anxiety. In this episode, we aim to help alleviate that anxiety by explaining what is going on right now with the economy. We discuss the economic impacts of COVID-19, explore why the stock market is fluctuating so wildly, and offer tips for how to navigate your financial situation in these changing economic times. Show Notes1:59 — Ian outs Darren as a true economics geek.3:28 — Alternate episode recommendation if this topic isn’t your jam.5:50 — Why the ability to understand what’s going on with the economy helps our mental health during uncertain times.8:09 — What exactly is going on right now with the financial markets?10:58 — How this situation is different than previous economic downturns.17:10 — Ian suggests the Divinations newsletter by Nathan Baschez as another helpful resource to understand what’s happening now with the economy17:35 — March makes an observation of how an economic slowdown is similar to holding one’s breath.19:39 — Why we are fortunate that the economy was in a growth cycle when this pandemic hit.23:05 — Why the stock market is so volatile right now.27:45 — We discuss how to think about cryptocurrency.30:38 — What is the role of government and regulators and what action is being taken by the US government to help stabilize the economy.37:20 — What does it mean for an economy to be in a recession and what does it mean for ordinary people.43:19 — What does this economic downturn mean for older individuals?45:25 — We find some bright spots in the midst of challenging circumstances.46:20 — What is happening to mortgage rates right now.51:15 — What to do now if you’ve suffered significant losses to your savings.53:15 —What does it mean to simply “do nothing” in response to this economic fluctuation.54:09 — How much emergency cash should you have on hand.56:23 — Darren recommends other podcasts and resources for learning and staying informed about economic issues.Mentions📰 Newsletter: Divinations newsletter by Nathan Baschez🎙️ Podcast: NPR Marketplace🎙️ Podcast: Planet Money🎙️ Podcast: The Indicator from Planet Money🎙️ Podcast: EconTalk with Russ Roberts (for those who want to go REALLY deep into economic theory)