Explore the potential economic impact of mass deportations in the U.S. and how industries might cope with labor shortages. Delve into the groundbreaking role of AI in economic decision-making, as ChatGPT challenges human rationality. Uncover the hidden vulnerabilities in Ireland's economy amidst a booming surface, and examine the UK firms' response to recent fiscal policies with planned price hikes. This episode of 'Simply Economics' offers a comprehensive analysis of these pressing issues, providing insights into the intersection of policy, technology, and economic stability.

Sources:

https://www.economist.com/finance-and-economics/2025/01/06/can-americas-economy-cope-with-mass-deportations

https://cepr.org/voxeu/columns/emergence-economic-rationality-gpt

https://www.rte.ie/news/business/2025/0106/1489393-economy-analysis/

https://www.theguardian.com/business/2025/jan/06/uk-firms-plan-price-rises-as-confidence-falls-to-lowest-level-since-truss-budget

Outline:

(00:00:00) Introduction

(00:00:40) Can America’s economy cope with mass deportations?

(00:03:40) The emergence of economic rationality of GPT

(00:06:33) Economy looks good but problems lurk beneath

(00:09:18) UK firms plan price rises as confidence falls to lowest level since Truss budget