The unemployment rate has been hovering around 4.2%. But in today’s highly unsettled economy, many people feel this headline number from the Bureau of Labor Statistics doesn’t capture their economic struggles — from slow hiring to working two part-time jobs to recent graduates unable to find work in their fields. But as economist Kathryn Edwards points out, the U.S. Bureau of Labor Statistics also measures underemployment (currently 7.9%) as well as discouraged workers and many other indicators of labor market slack. But there’s one thing the government probably should not measure, and that’s skills mismatch, or being “overqualified” for the job you have. In this episode, we also go way, way back to the Great Depression, when social workers and advocates for the unemployed fought to get the government to measure joblessness at all.

Read more:

• True Rate of Unemployment [Ludwig Institute for Shared Economic Prosperity July 2025]
• Origins of the Unemployment Rate: The Lasting Legacy of Measurement without Theory. [David Card, UC Berkeley and NBER, February 2011]
• THE PHILADELPHIA NEGRO A Social Study — W. E. B. DuBOIS
• Case studies of unemployment, compiled by the Unemployment Committee of the National Federation of Settlements
• Table A-15. Alternative measures of labor underutilization - 2025 M07 Results [U.S. Bureau of Labor Statistics]
• Table A-11. Unemployed people by reason for unemployment - 2025 M07 Results [U.S. Bureau of Labor Statistics]
• Table A-12. Unemployed people by duration of unemployment - 2025 M07 Results [U.S. Bureau of Labor Statistics]

Gross Domestic Product is the big dog of economic numbers. But this measure of the economy’s size has massive blind spots. It ignores income inequality and citizens’ wellbeing. It rewards consumption and thus environmental degradation. Yes, it is vital to know if your economy is growing or shrinking and why. And yet maybe GDP shouldn’t be the lodestar. In fact, as economist Kathryn Edwards relays, the person who invented GDP warned us of its limitations.

The "boys and men crisis" conversation set in motion following the 2024 election is now shooting off in erratic directions, leading to a lot of hand-wringing about college enrollment, long-gone factory jobs, and “loss of purpose.” Still, men’s workforce participation has been on a long, slow slide for seven decades, and it is reaching a worrying level. To address that, though, we need to have harder conversations about what truly affects young men disproportionately – things like substance abuse disorders, other addictions like gambling and video games, and criminal records.

Support the Optimist Economy podcast by becoming a paid subscriber on Substack, or donating at https://buymeacoffee.com/optimisteconomy

About 11% of Americans have a household income that puts them below the official government threshold for poverty. Is poverty a state of being, or a risk? Are the poor people themselves the root cause of poverty? Or are they the outcome of a low-wage labor market that churns people in and out of work? Because how you diagnose the problem matters if you’re looking for solutions. Economist Kathryn Anne Edwards tackles three major misconceptions about poverty.

Support the Optimist Economy podcast by becoming a paid subscriber on Substack, or donating at https://buymeacoffee.com/optimisteconomy

Economist Kathryn Edwards is back with more answers. In Part 2, she talks more about student loans, who actually “lives off taxpayers,” why gold reserves aren’t a great idea anymore, the importance of mobility in worker power, and whether ROI is a good measure for the work of government. If this two-parter was too much, blame the listener who said he didn’t like it when we used the timer back in May.

Support the Optimist Economy podcast by becoming a paid subscriber on Substack, or donating at https://buymeacoffee.com/optimisteconomy

In the first of two mailbag episodes, economist Kathryn Edwards answers questions from optimist listeners on taxation on wages vs. investments, whether student loans are regressive, how bona fide economists wind up on opposite sides of policy debates, and what it really means when a Montana Congressman calls the CBO “historically wrong.” Yeah, this episode has a long title. But there was a lot of talking. And that’s why Part 2 is coming in a few days.

Support the Optimist Economy podcast by becoming a paid subscriber on Substack, or donating at https://buymeacoffee.com/optimisteconomy

The federal minimum wage of $7.25 an hour hasn’t been raised since the era of flip phones. Competing bills introduced in Congress recently would set it at $15 or $17. Is that high enough, and how can we ensure it doesn’t fall so far behind again? Minimum wage debates are dominated by worry about anticipated harms to some businesses, but ignore the proven positive effects for American workers — like narrowing Black-White wage gaps. And most importantly for our resident economist Kathryn Edwards, she gets to revisit her favorite but flawed piece of legislation, the 1938 Fair Labor Standards Act.

Support the Optimist Economy podcast by becoming a paid subscriber on Substack, or donating at https://buymeacoffee.com/optimisteconomy

Complete show notes with links to articles and data at optimisteconomy.com.

Labor unions’ public approval has been increasing since 2009, and is now at levels not seen since the 1960s. And yet rates of union membership have been falling. Today just 10% of U.S. workers are represented by a union, and below 6% in the private sector. What if there were a less adversarial way to get the worker-protection aspects of unions without the brutal shop-by-shop campaigns? Enter “sectoral bargaining,” where boards with worker, employer, and government representatives hash out wages and working conditions for occupational groups. Think all fast food workers, janitorial staff, or health care providers.

Support the Optimist Economy podcast by becoming a paid subscriber on Substack, or donating at https://buymeacoffee.com/optimisteconomy

Complete show notes with links to articles and data at optimisteconomy.com.

You can also find Optimist Economy on:

• TikTok
• YouTube
• Instagram

The Estate Tax is one that half of Americans worry about, but that affects only the richest 0.07% after they die. For nearly 25 years, the U.S. has – through loopholes and ballooning exemptions – undercut a tax that could pay for some nice things, like maybe a children’s trust fund. If we chose to just dent more big inheritances, it’d also reduce the concentration of wealth and power. In this episode, economist Kathryn Edwards gets to go way, way back to the Gilded Age and editor Robin Rauzi still loves a tax story, so the topic is a win-win as far as we are concerned.

Support the Optimist Economy podcast by becoming a paid subscriber on Substack, or donating at https://buymeacoffee.com/optimisteconomy

Complete show notes with links to articles and data at optimisteconomy.com.

You can also find Optimist Economy on:

• TikTok
• YouTube
• Instagram

Newly minted college graduates are having a harder time landing that first job than in recent years. Is it AI? Is college useless? Is it a crisis? (No. No. And not yet.) College graduates under 27 still have much lower unemployment rates (5.8%) than their high-school-diploma peers (6.9%). What economist Kathryn Edwards finds worrying is that these new workers, who are typically a lagging economic indicator, may in this case be a bellwether of a weakening economy.

Support the Optimist Economy podcast by becoming a paid subscriber on Substack, or donating at https://buymeacoffee.com/optimisteconomy

Complete show notes with links to articles and data at optimisteconomy.com.

You can also find Optimist Economy on:

• TikTok
• YouTube
• Instagram