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Here is today’s post on the importance of economic literacy and my interview on Marketplace Radio.

Decode Econ

The Case for Economic Literacy

As a new academic year begins, students across the world are deciding on their major and which courses to take. One of the most valuable decisions students can make is to prioritize economics, whether as a major or by taking Principles of Microeconomics and Principles of Macroeconomics as electives…

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8 months ago · 9 likes · 10 comments · Dr. Abdullah Al Bahrani

I will maintain this substack as a journal and a more personal outlet. For now, I am fully invested in building the Decode Econ brand and reach.

Thank you for always supporting my efforts and evolving with me as I grow.

Yours,

Dr. A

I have some exciting news to share. Economics with Dr. A is growing up.

Over the past few years, I’ve loved writing to you under my personal brand, sharing my thoughts on how economics connects to our daily lives. But as I’ve grown in my career, I’ve realized that the “Dr. A” label, while personal and familiar, can also be limiting.

I want to build something bigger. Something that’s less about me, and more about the mission we all care about: making economics understandable, relevant, and useful for everyone.

That’s why I’m launching .

Decode Econ is a professional platform dedicated to breaking down complex economic ideas, exploring data, and connecting the dots between policy and personal impact.

Decode Econ will:

• Bring in more voices and collaborators who are committed to improving economic understanding

• Allow for a broader range of perspectives and expertise

• Create a space that feels less like “my newsletter” and more like “our community.”

What this means for you:
Economics with Dr. A isn’t disappearing. This newsletter will serve as a platform for occasional updates and more personal notes. But the bulk of my economic commentary, analysis, and deep dives will now be published at Decode Econ.

If you’ve enjoyed this newsletter, you’ll love what’s coming next. Make sure you’re subscribed to Decode Econ so you don’t miss a thing. First post drops at the end of this week!

Decode Econ

Welcome to Decode Econ

The economy is everywhere, in the prices we pay, the jobs we take, the investments we make, and the policies we debate. But if you’ve ever read an economic headline and thought, “Okay… but what does that actually mean for me?”, you’re in the right place…

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9 months ago · Dr. Abdullah Al Bahrani

Thank you for being part of this journey with me. I’m excited to take this next step together.

See you over at Decode Econ,
Dr. A

But this newsletter isn't about social media trends; it's about economics. The Gen Z stare is a symptom of something bigger: Gen Z is genuinely struggling in the labor market, primarily because older generations are reluctant to welcome the newest workforce entrants. The stare is just another example of the generational divide.

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The Real Problem

Every generation faces workforce transition challenges, but this divide is now showing up in economic data. Gen Z is struggling to find employment, and their transition from education to the workforce has been particularly challenging. What might explain their difficulties? To explain what is happening, we need to discuss unemployment types.

In economics, unemployment typically falls into three categories:

• Frictional Unemployment - Job seekers and openings exist, but information gaps prevent matches

• Structural Unemployment - Workers lack skills needed for available jobs, often during technological shifts

• Cyclical Unemployment - Job losses from economic downturns

Gen Z faces all three simultaneously.

What's Different Now

The Friction Problem

Online job applications seemed like they'd make job searching easier. Instead, they removed all useful friction. When everyone can apply to everything with a single click, employers receive hundreds of applications per posting. It's not about actual skills; it's about the signals of skills. When it is difficult to assess the quality of work of applicants, hiring managers may be less likely to hire them.

Just last week, I attended ’ s dissertation defense—congrats, Dr. A! She presented research showing misalignment between what students perceive their skills to be and what hiring managers think is needed for success in entry-level jobs. Her work reveals a significant information gap between these perceptions.

I expect that this perceived skills gap tends to widen during periods of market uncertainty, which is exactly where we are now.

Structural Changes

AI is reshaping entry points for white-collar professionals in IT, finance, and law. These are traditional stepping stones for college graduates. If AI can handle junior-level tasks, why hire entry-level workers?

Market Uncertainty

While AI gets the headlines, market uncertainty may be the bigger culprit. Uncertainty often hurts entry-level white-collar workers the most, and that's exactly what we're seeing. The data shows that more educated Gen Zers are struggling disproportionately.

The Historic Shift

For over four decades, college graduates have enjoyed unemployment rates below the national average. That trend has now reversed for the first time. Recent graduate unemployment has risen above the national average. This is a surprising and concerning shift.

To be clear, education remains a valuable investment. Young people without degrees still face higher unemployment than recent graduates. However, college graduate unemployment is rising faster than it should, and that's a new trend.

What This Means

For Gen Z: You need stronger signals to hiring managers. That means old-fashioned networking and referrals. You'll need to communicate your value and cultural fit more clearly. Sorry, every generation has had to adapt to the expectations of those with market power, the people making decisions. Any deviations from the “norm” will be perceived as a mismatch.

For Millennials and Gen X: You need to work harder to open doors for Gen Z. The sooner they enter the market, the more you benefit from their skills and energy. Take risks on them, just as Boomers took risks on you. As noted in her defense, there's an expectation now that Gen Z must be "day-one ready" that didn't exist for previous generations. Bring back onboarding and training programs.

Dr. Jeni Al Bahrani

I have officially and successfully defended my dissertation!

I’m EXCITED (and relieved!) to share that I passed my final dissertation defense and am now Dr. Jeni Al Bahrani…

Read more

9 months ago · 4 likes · 6 comments · Dr. Jeni Al Bahrani

The Takeaway

The Gen Z stare might be awkward, but it's not really about soft skills. It's about a generation caught in a perfect storm of technological disruption, information asymmetries, and market uncertainty. The social media trend is another example of how incumbents attempt to maintain their market share in response to entrants in the market.

I wouldn’t be here today if mentors and leaders hadn't taken me under their wings and taught me how to navigate the workplace. Perhaps fewer videos highlighting the Gen Z stare and more videos on how to uplift a generation that is sitting on the sidelines because we won’t let them in.

There is another perspective to consider in this discussion. Are millennials and Gen Xers reluctant to adapt to market changes? In education, we often hear how the incoming students are underprepared to transition to college, or is it that we, the educators, are underprepared to welcome the new generation of students? Who we blame for the mismatch defines how we solve the problem.

Let's talk about it.

— Dr. A

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What is the Gen Z Stare?

Here is a TikTok for those wanting an example of the stare

@lanie_beamsI’m gen z too but like Helloooooo???!?!?!! #fyp #genzstare

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One out of every six adult workers (16%) in the United States is staying in a job they might otherwise leave out of fear of losing their employer-sponsored health insurance.

I remember the first time I realized that quitting a job also meant losing my health insurance. I wasn’t married, I didn’t have kids, and I didn’t need much medical care, but the idea that my ability to see a doctor was dependent on my employer struck me as… odd.

So I did what I do when something doesn’t make sense to me: I researched it. What I found only reinforced my conviction that healthcare should not be tied to employment. The recent changes in tax policy will likely make employer-based healthcare even more prevalent.

Let me walk you through how we arrived at this point and why it's holding back free markets.

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How We Got Employer-Based Health Care

1. World War II and Wage Controls
During World War II, the government imposed wage and price controls to prevent inflation. Employers couldn’t attract workers with higher pay, so they got creative: they started offering health insurance as a fringe benefit. Because it wasn’t considered taxable income, it gave them an edge.

2. The Tax Code Cemented It
In the 1950s, the IRS made it official. The 1954 Internal Revenue Code formalized what had been an unclear 1943 administrative ruling, making employer-sponsored health benefits officially tax-exempt. This created a massive incentive for businesses to offer health insurance instead of higher wages.

The impact was dramatic: research by economist Melissa Thomasson shows that household insurance coverage increased from 63% in 1952 to 76% by 1957, just three years after the tax change was implemented. More importantly, the share of households with group insurance rose from 47% to 66%. The tax subsidy increased coverage, and it fundamentally shifted Americans from individual insurance plans to the employer-based system we know today.

Households in higher tax brackets responded most strongly to these incentives, and the research suggests that this single policy change increased insurance coverage by nearly 10%, while creating the "job lock" problem that we still face today.

3. Labor Unions Pushed It Too
Unions also had a hand in it. Since direct wage increases were restricted, union leaders bargained for better benefits, including health coverage, as part of compensation packages.

Where That Leaves Us Today

Big Firms Have the Upper Hand- large employers can negotiate better rates and provide more attractive benefits, which helps them attract and retain top talent. This is a concern because smaller firms struggle to compete in attracting top talent. It is one reason why innovation and competition can stall: a lack of employees willing to work for smaller, incoming firms.

It's Cost-Efficient for Employers. Offering health insurance can be more cost-effective for companies than offering higher wages, thanks to tax breaks and risk pooling across large employee groups. This is why it is important to discuss total compensation, not just wages, when negotiating job offers.

Employees Are Vulnerable - Most Americans obtain health insurance through their job, so losing a job often means losing coverage. That’s a scary place to be. When considering work, people are also considering healthcare options, which shouldn’t be the case. Those should be two different economic decisions.

The Unemployed Are Often Uninsured - For those without a job, the situation is even more unreliable. Losing employment frequently means losing access to affordable health insurance altogether. While options like COBRA or ACA exchanges exist, they can be expensive, confusing, or challenging to navigate, particularly during a time of financial stress. This creates a gap where the people most in need of care, those under financial strain or in career transition, are least likely to have consistent access to it. That’s not just a health issue; it’s a labor market inefficiency.

The Economic Consequences

1. Job Lock- People stay in jobs they don’t like, or that don’t suit them, just to keep their insurance. That reduces labor mobility, innovation, and overall economic efficiency. One out of every six adult workers (16%) in the United States is staying in a job they might otherwise leave out of fear of losing their employer-sponsored health insurance, according to a West Health-Gallup survey.

2. Uneven Coverage - If you work for a small business or are self-employed, you may face higher costs or fewer options. Our system fragments access based on employment status rather than health needs.

3. Shifting Costs - More employers are passing rising premiums and deductibles on to their workers. Even if you have insurance through your work, you may still be underinsured.

4. Entrepreneurship lock - The potential financial burden of health insurance premiums and out-of-pocket costs can make individuals hesitant to leave a stable job with benefits and venture into the uncertainty of entrepreneurship. This study finds that the Affordable Care Act increased self-employment opportunities.They estimate that a decrease of $50 per month (the average is about $420) in premiums would increase the annual entry rate into self-employment by about 9%

The Takeaway

Government intervention is what got us in this system, price controls and tax incentives tied employment and healthcare together. The government will have to break that relationship or provide an alternative.

The Affordable Care Act helped by creating marketplaces and expanding Medicaid, but employer-sponsored insurance still dominates. And it keeps millions of Americans tied to jobs they’d rather leave. The recent changes introduced by the Big Beautiful Bill will create a shift back to the older system.

Untethering health insurance from employment would unlock entrepreneurship, improve job matching, and reduce the stress that comes from tying your family’s health care to your employer’s decisions. One reason people hold back from entrepreneurship is due to the high costs of healthcare.

A good economy is one where people can move freely, take risks, and find work that suits their skills and values, rather than being stuck in a job they dislike.

Stay informed,

Dr. A

About Dr. A
Dr. Abdullah Al Bahrani is a professor of economics and an award-winning educator passionate about making economics accessible and relevant. His research explores household finance and how we learn (and teach) economics. Through this newsletter, his YouTube channel, and Instagram, he breaks down complex economic concepts to help people make smarter financial decisions and gain a deeper understanding of the world around them. His mission is to improve economic literacy and enhance lives.

Speaking of community, this month, 800 of you decided to subscribe and learn more about economics with me. We're now at roughly 5,000 people on the mailing list, and I'm excited to grow toward my goal of 10,000 for the year. More importantly, engagement and readership continue to increase, which tells me we're building something valuable together.

While most newsletters focus on building a mailing list, the economics of my approach are focused on building a community of passionate and engaged readers. Every business needs to decide what it will maximize. Most focus on profits, some on social impact, and here, I am focusing on community engagement.

To continue building our community, I'd like to introduce a new monthly feature today, highlighting a Reader of the Month and recommending a Newsletter of the Month.

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Quick Question for You

What economic topic would you like me to tackle next? Leave a comment and tell me what's keeping you up at night, whether it's economic uncertainty, inflation, housing costs, job market shifts, mobility, or something else entirely.

Leave a comment

Reader of the Month: Phillip Tussing

This month, I want to highlight Phillip Tussing (), whose thoughtful engagement has made our community discussions even more meaningful.

In this week's post about supply-side economics, Phillip commented:

"I was alive in 1980 ;-). Laffer's curve was perfectly valid -- the only question is at what top marginal income tax rate does income to the government start to fall? The top marginal rate in 1980, when Reagan was elected, was 70% -- he reduced it to 50%"

This insight was helpful, as it is easy to forget how high taxes were in the past and how far they have come down since then.

About Phillip: Phillip teaches economics at Houston Community College, where he shapes the next generation's understanding of economic principles. His academic background includes a degree in the Study of Religion. This journey led him to undergraduate studies in Islam, creating a rich foundation for interfaith dialogue and cross-cultural understanding.

Why I’m Highlighting Phillip: Writing a newsletter can be a lonely experience. You never know who's reading and benefiting from your work. Hearing from readers like Phillip and watching a community develop in the comments section is one of the best things that can happen to a writer. If you haven't looked in the comments section, please do. You'll always learn something from his insights.

How to Get Featured

Want to be highlighted in a future newsletter? Keep engaging! Our community grows through thoughtful comments, constructive discussions, and readers who care about the topic.

Substack of the Month: American Inequality

What Makes Special: This newsletter combines data visualization with storytelling to uncover America's most pressing social challenges. , and co-authors, focus on "data-driven insights on healthcare, housing, education, tech, policy, and entrepreneurship" and use "data visualizations and mapping to highlight America's regional divides."

Their latest post on Gen Z resonated with me. I have been spending a lot of time lately thinking about the economics of being a Gen Z, more on that in future posts.

American Inequality

How America can move from inequality to opportunity through data, maps, and proven solutions

By Jeremy Ney

What's Coming Next

It has been my dream to write, educate, and help make sense of the world we live in through the lens of economics. Your engagement, questions, and insights make this work meaningful. Thank you for being part of our growing community and for allowing me to bring my dream to life through this newsletter.

Be on the lookout for new content next week.

Stay curious,

-Dr. A

Today, as supply-side principles resurface in policy debates, including recent discussions around education legislation, it's worth examining what mainstream supply-side economists get right, what they miss, and how we can use other economic principles to design better policies that improve economic well-being for everyone.

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Traditional Supply-Side Economics: The Basics

Supply-side economics focuses on boosting economic growth by increasing the supply of goods and services rather than stimulating demand. The core idea is that policies making it easier and more profitable for businesses to produce will ultimately benefit the entire economy.

The theory emphasizes three key mechanisms:

• Tax policy is central to supply-side thinking. Proponents argue that reducing tax rates, especially on income and capital gains, gives individuals and businesses more incentive to work, save, and invest. The famous "Laffer Curve" suggests there's an optimal tax rate that maximizes government revenue; increasing it too high discourages economic activity, while decreasing it too low results in insufficient revenue collection.

• Deregulation is another pillar, with the belief that reducing bureaucratic barriers allows businesses to operate more efficiently and allocate resources more effectively. This includes everything from environmental regulations to financial rules.

• Investment incentives like accelerated depreciation schedules or research and development tax credits are designed to encourage capital formation and innovation, which supply-siders see as drivers of long-term growth.

The theory gained prominence during Reagan's presidency, earning the nickname "Reaganomics." Supply-side economists like Arthur Laffer and Robert Mundell argued that tax cuts would pay for themselves through increased economic growth.

Voodoo Economics

Critics argue that supply-side policies primarily benefit wealthy individuals and corporations, can increase income inequality, and that the promised economic growth often doesn't materialize sufficiently to offset tax revenue losses. Some went as far as calling Reagan’s policies “Voodoo Economics.” That was the term George H.W. Bush used to describe U.S. President Ronald Reagan’s economic policies before becoming his vice president. The former vice president believed that supply-side policies were not only going to fall short of stimulating the economy but that they would also drastically increase the country’s national debt.

The Missing Link: Human Capital Investment

Here's what traditional supply-side economics gets wrong: it focuses almost exclusively on capital and largely ignores the productivity of people. But the most dramatic economic growth stories of the past century weren't driven by tax cuts. Massive investments in human capital powered them.

South Korea

Consider South Korea's transformation. In 1960, South Korea's GDP per capita was lower than Ghana's. By 2020, it had become a developed nation with the world's 10th largest economy. South Korea invested heavily in primary education in the 1960s, secondary education in the 1970s, and higher education from the 1980s onward. By 2010, South Korea had the highest percentage of 25-34 year-olds with tertiary education in the OECD. South Korea became known as the "Miracle on the Han River".

This educational investment created a skilled workforce that could absorb advanced technology, innovate, and attract foreign investment. Samsung, LG, and Hyundai didn't become global leaders because they had access to increasingly skilled workers.

Singapore

Singapore tells a similar story. The city-state invested heavily in education and healthcare from its independence in 1965. Today, Singaporean students consistently rank among the world's best in international assessments, and the country has one of the world's most efficient healthcare systems. These investments in human capital helped Singapore become a global financial center and technology hub.

United States Post WWII

The United States followed this playbook after World War II. The GI Bill, which provided education benefits to returning veterans and massive investments in public education and research universities, created the skilled workforce that powered America's post-war economic boom.

What Modern Growth Theory Teaches Us

This insight aligns with what economists have learned about growth over the past 30 years. Economists like Paul Romer, Robert Lucas, and Philippe Aghion developed models where growth comes from within the economic system itself, particularly through:

• Knowledge spillovers: When people get educated, they don't just become more productive individually; they also share knowledge with others

• Learning-by-doing: Experience and education create cumulative knowledge that builds on itself

• Innovation networks: Skilled workers cluster together and create innovation ecosystems

Investment in education and healthcare fits perfectly here through their effects on human capital and productivity. However, this relationship is more nuanced than traditional supply-side tax policy.

• Education as a supply-side investment works by enhancing the quality and skills of the workforce. A more educated population can produce goods and services more efficiently, innovate more effectively, and adapt to technological changes. This increases the economy's productive capacity, which is the fundamental goal of supply-side policy.

• Healthcare investment operates similarly by maintaining and improving worker productivity. Healthier workers are more productive, miss fewer days, and can work longer into their careers. Public health improvements also reduce healthcare costs for businesses, making them more competitive. The reduction in sick days and disability claims effectively increases the available labor supply.

The Takeaway

Supply-side economics isn't wrong; it's just incomplete. If you believe in supply-side economics, you should be thinking about how to increase the productivity of both capital and labor. The most powerful way to increase labor productivity isn't through tax cuts that might encourage a few more hours of work. It's through investments in education and healthcare that workers can dramatically improve what they can accomplish in those hours.

As we evaluate our policies, we must consider the source of innovation and productivity. After all, improving the economy means improving the well-being of the people who live in the economy. By providing them with the necessary tools, health, and incentives, they will innovate and continue to grow.

What are your thoughts? I would love to hear more about the policies you find crticial for economic success.

Stay informed,

Dr. A

Dr. Abdullah Al Bahrani is an economics professor and an award-winning educator. His research focuses on household finance and economic education. In addition to this newsletter, he has a YouTube channel and an Instagram account to share his economic insights. His goal is to improve economic literacy and well-being.

Today, we're examining tariff revenue data released on Friday and inflation data released today.

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Tariff Revenue

On Friday, the Treasury reported an unexpected budget surplus for June. June saw a surplus of just over $27 billion, following a $316 billion deficit in May. Customs duties totaled about $27 billion for the month, up from $23 billion in May and representing a 301% gain from June 2024.

It's important to note that this brought the fiscal year-to-date deficit to $1.34 trillion, a 5% increase from the same period last year.

The increase in surplus means that U.S. firms, consumers, or both paid more in taxes. If firms passed these costs on to consumers, it would lead to higher prices.

Inflation Data

This morning, the BLS released the latest Consumer Price Index (CPI). In the previous month, the CPI increased by 0.3 percent, representing a 2.7% year-over-year inflation rate.

Economists have been waiting for tariffs to show up in the CPI data. While this is only one month's worth of data, and we need to be cautious about how much to rely on it, it's the first sign that tariffs are passing through the economy and starting to impact prices.

Let's see what happens next month!

-Dr. A

About the Author

Dr. Abdullah Al Bahrani is an economics professor and an award-winning educator. His research focuses on household finance and economic education. In addition to this newsletter, he has a YouTube channel and an Instagram account to share his economic insights. His goal is to improve economic literacy and well-being.

This month, Oman introduced a personal income tax, making it the first among the six-member Gulf Cooperation Council (GCC) to take this step. The tax was introduced to help Oman diversify its government revenues away from oil dependency. The 5% tax will take effect in 2028 and will only apply to those earning upward of $109,000 annually. That income threshold reflects the top 1% of earners in Oman. However, income data remains opaque and difficult to pin down in Oman, so the tax authority will need to detail how income data will be collected.

In this article, I cover the tax system, the push to diversify, and the concerns with the tax base.

Tax System

According to KPMG, here are the details of the income tax:

Taxable income (calculated after subtracting exemptions, deductions, and losses from gross income) may include:

• Salary

• Income from immovable property

• Income from industrial/intellectual property

Exemptions may include:

• Income earned outside Oman (granted once for a period of two years)

• Capital gains on the sale of a primary residence

• Capital gains on sale of a secondary residence (one-time)

• Income from inheritance and gifts

• Income from industrial property rights (granted for five years from the date of registration)

Deductions from taxable income may include:

• Education expenses

• Healthcare expenses

• Zakat, charitable donations, and endowments ("waqf")

• Interest on loans financing the acquisition or construction of an individual's main residence (one-time)

The plan was issued last week by royal decree. It remains unclear whether this will inspire other nations in the region to follow suit. However, the International Monetary Fund has predicted that Gulf states may need to impose new taxes in the coming years to diversify government revenues.

Push to Diversify

Oman, like many of its Gulf neighbors, is an oil-exporting nation. It is predicted that this source of revenue could be exhausted within 15 years, a warning I have heard since I was a child in Oman in the early 1990s.

Recent concerns about climate change and supply from new competitors have dampened oil prices, prompting the International Monetary Fund to warn about the importance of cutting spending and diversifying away from oil revenue. The warning from the IMF comes as Bahrain faced defaulting on a loan in 2018 and received a $10 billion bailout from its neighbors. Bahrain's public debt stands at 93% of its gross domestic product.

The IMF has warned the Gulf Cooperation Council (GCC) that:

"with continued improvements in energy-saving technologies, adoption of renewable sources of energy, and a stronger policy response to climate change, the world's demand for oil is expected to grow more slowly and eventually begin to decline in the next two decades. If these expectations materialize, they would reshape the economic landscape of many oil-exporting countries, including those in the GCC."

The Introduction of Income Tax

The lack of income tax has been a boon for development in the Gulf, helping to attract investment and migrants to the region. The introduction of income tax could reduce economic development. However, Minister of Economy, H.E Dr. Said bin Mohammed Al-Saqri, stated that the introduction of income tax

"will further prioritize financial stability by diversifying revenue sources. The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source."

It is hoped that the income tax will help shelter Oman from "fluctuations" in the global energy market.

The Problem

Taxes will not diversify Oman away from oil fluctuations. Government revenues, derived mostly from oil, directly influence spending in Oman's economy. In 2023, government spending accounted for 32.7% of GDP; therefore, tax revenue in Oman will be directly related to oil revenue. When oil prices fall, oil revenue falls, Government spending falls, economic activity declines, businesses and incomes drop, and therefore tax revenue falls. We witnessed this exact problem during the COVID pandemic.

In the 2025 Omani budget, total oil and gas revenue will account for 68% of government income, whereas taxes and fees total 18% of revenue. The introduction of the new income tax may increase the proportion of revenue collected through taxes and fees.

Diversifying the Tax Base

If you have attended my presentations at Majlis Al Khonji, you will recall that I have advocated for diversifying Oman's tax base before imposing an income tax. Oman's business activity, outside of the oil industry, is relatively young and needs time to mature. Introducing a tax on business activities could cause them to depart and relocate, especially when neighboring countries currently provide tax shelters.

The Takeaway

In an attempt to diversify its revenue, Oman imposed the first income tax of its kind in the GCC region. The move was celebrated as an indication of improved financial stability, with Moody's rating agency moving Oman to investment grade. However, the long-term effects remain unclear.

Will this move bring in more economic activity because of the signal of financial stability and strength that taxes provide, or will businesses relocate to neighboring economies and reduce tax revenue?

Stay informed,

Dr. A

About the Author

Dr. Abdullah Al Bahrani is an economics professor and an award-winning educator. His research focuses on household finance and economic education. In addition to this newsletter, he has a YouTube channel and an Instagram account to share his economic insights. His goal is to improve economic literacy and well-being.

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The Problem: Economic Literacy

Thank you for joining me over the past five days as we investigated parts of the Big Beautiful Bill. Today, I'd like to let you know why you should invest in learning more about the economy that you navigate.

In today's economy, economic literacy is a requirement for success; being misinformed is no longer an option.

What I See on Social Media

Last week, I watched an Instagram Reel that claimed the "Rich" pay 37% of their income in taxes. As you now know from what we discussed in this series, that post confused the concepts of marginal and average tax rates.

The result? Millions of views and hundreds of comments spreading misinformation.

This week, I highlighted the differences between Medicare and Medicaid, which are often confused with each other in discourse. A quick scroll through social media reveals how many people hold strong opinions about economic policies, yet lack the economic foundations to support those opinions.

The Scary Statistics

According to the Council for Economic Education:

• Only 28 U.S. states require high school students to take an economics course

• Financial literacy requirements are in place in just 35 states

We are graduating students without the foundation needed to understand the policies they will vote on.

Investing in economic literacy is investing in democracy.

The Politics

I recall my undergraduate years. Perhaps I was naive, but I recall a greater emphasis on evaluating policies and economics. Today, as documented, we perceive ourselves more divided than ever. Our support of policies is based on the letter following the politician's name rather than the content of the policy. “Owning the libs”, or the conservatives, is what drives support for proposals, when it should be the well-being of the economy and people.

When we evaluate economic policies through political tribal lenses rather than economic evidence, we often end up with ineffective solutions that waste resources and sometimes exacerbate problems.

Have you noticed this in your own social media feeds? Do you find yourself initially reacting to economic news based on the source rather than the substance?

Attention Economy

Building a platform to voice your thoughts and expertise has never been easier. I started this journey in 2004 with a blog, then joined Twitter in 2012. When the pandemic hit, I shifted to video-based communication to connect with my students during remote learning. Now, this newsletter has become my primary teaching method; I reach more people through it than I do in a semester of traditional classroom teaching.

Here is the problem, though: the economics that goes viral isn't the type that I write about. My writing isn't doomsday or hyperbole; it is factual. It is balanced by looking at the pros and cons. When my writing favors or argues against a policy, it is because the economics has spoken. Sadly, in our attention-competing economy, this is not the way to grow a following.

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Last Week

Last week, I attended the Governor School of Entrepreneurship because was presenting to the students. While visiting, I talked to the students and learned about the startups they wanted to pitch. Several of them discussed their concerns about biased news or misinformation on social media platforms. One student was developing an app to help people identify reliable sources, while another was working on a platform to fact-check financial advice on social media.

As the students and I discussed, we couldn't determine whether this was a supply or demand issue. In economic terms, we were asking: is the news and information being supplied biased because producers find it profitable to create sensational content, or are consumers actively demanding misinformation and bias because it's more entertaining or confirms what they already believe? Do we gravitate towards the content that entertains or reinforces our biases? Like a pair of scissors that needs both blades to cut, the answer involves both sides of the market. A classic economic response is that most problems have multiple, interconnected causes working together to create the outcome we observe.

The Takeaway

If you’re looking for more content that critically evaluates and shares the economics, this is the place. Economic literacy enables you to make more informed decisions and navigate the complexities of our markets more effectively.

I hope you find a home here and that you invite your friends to subscribe. Like I told the students at the GSE, if we truly want better information, we need to find ways to reward it. After all, we all respond to incentives.

I will focus more on current economic news and help you make sense of the world we live in. I might post more frequently than once a week. If you prefer not to receive my posts frequently, please feel free to unsubscribe. I will totally understand! I have found myself holding back so that it doesn’t feel like I’m spamming you, but good economics doesn’t need to be withheld from the audience.

I'm committed to continuing this work despite the challenges because economic literacy isn't just an academic pursuit; I truly believe in its ability to transform lives.

Stay informed,

Dr. A

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About the Author

Dr. Abdullah Al Bahrani is an economics professor and an award-winning educator. His research focuses on household finance and economic education. In addition to this newsletter, he has a YouTube channel and an Instagram account to share his economic insights. His goal is to improve economic literacy and well-being.

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The latest tax proposals making headlines promise relief for working Americans, introducing no taxes on tips, bigger deductions, and permanent rate cuts. These changes are designed to provide higher tax cuts to high-income earners. With that said, everyone should see lower taxes.

After covering the spending cuts in previous posts, we're now examining the tax aspects of the Big Beautiful Bill. I'll walk you through the key changes, explain why understanding tax brackets matters more than you think, and show you the math behind marginal vs average tax rates.

Making 2017 Permanent

The bill makes permanent the individual income tax rate reductions and bracket adjustments established in the 2017 Tax Cuts and Jobs Act.

New Tax Cuts

The BBB introduces some temporary tax breaks that were part of the president’s campaign promises, but with a slight twist.

• No taxes on tips and overtime pay- Actually, more like a deduction. Workers will still pay taxes but can deduct $25,000 in reported tips and $12,500 in overtime pay from their taxable income on their federal tax returns. This provision will expire in 2028. This is an above-the-line deduction, which means you don't need to itemize to claim it.

• Dedication for interest payments on certain auto loans - This applies to U.S.-made cars. The provision will allow taxpayers to deduct $10,000. This is an above-the-line deduction, which means you don't need to itemize to claim it.

• Enhanced standard deduction for older adults- $6,000 deduction for older adults who earn no more than $75,000 a year.

• Increased child tax credit- Increase the CTC from $2,000 to $2,200

• Increased Standard Deduction- The bill permanently increases the standard deduction, providing relief to a large percentage of taxpayers

  • Single taxpayers: $15,750 (up from $15,000)

  • Joint filers: $31,500 (up from $30,000)

  • Head of household: $23,625 (up from $22,500)

What is a Tax Deduction

These tax deductions are being celebrated because they will increase net income. Tax deductions primarily benefit individuals with a tax liability because they reduce the amount of taxes they pay. For low-income earners, the deduction is helpful, but not as substantial.

For instance, a waitress earning $15,000 in wages and $10,000 in tips already falls into a bracket with little to no federal income tax liability after standard deductions. The new tax structure wouldn’t significantly change their refund.

Marginal vs Average Tax Rates

It is important to understand the difference between marginal and average tax rates. Below is the breakdown of the 2025 tax brackets provided by the Tax Foundation. Let’s take an example of a single filer making $60,000.

According to the table, their marginal tax rate is 22%. That means that if the taxpayer were to make an additional dollar, they would pay 22% in taxes for that new dollar of income. However, this is not their actual tax rate. That is because for the first $11,925, the taxpayer pays a 10% tax. For the money they make between $11,925 and $48,475, they pay a 12% tax. They will pay 22% tax on income between $48,475 and $60,000.

Their tax liability for each bracket will be calculated as follows.

Their total tax liability is

Their average tax rate is

This taxpayer only paid 13.5% of their income in taxes. This calculation did not apply any deductions. If deductions are accounted for, their adjusted gross income would be much lower, and therefore, the taxes they pay would decrease. This is just an example to show the difference between marginal tax rates and average tax rates in a progressive tax system.

The Takeaway

Some supply-side economists will celebrate these tax cuts as focused on long-run growth, tax reform, and incentives to work and invest. This might be a possible outcome. If the gains in growth are substantial enough, they can offset the cuts in spending. What they won’t do is manage how growth is distributed in the economy. A greater share of the gains will go to high-income earners. Whether that is optimal is a matter of personal judgment.

Without growth gains, the Congressional Budget Office estimates these proposals would increase deficits by $3.3 trillion over a decade. Since this money must eventually come from somewhere, we're essentially borrowing from future taxpayers to fund current tax cuts that disproportionately benefit higher earners.

The Generational Transfer. These policies represent a wealth transfer from younger to older Americans. Current workers, many of whom are just starting their careers, will eventually pay higher taxes or receive reduced services to fund today's tax cuts for more established, higher-earning taxpayers.

The Pattern Emerges When you combine these tax changes with the spending cuts discussed in previous newsletters, a clear pattern emerges: reduced investment in programs that help lower-income Americans, paired with tax benefits that primarily help higher earners. Implicit in this model is the assumption that an extra dollar saved in taxes has more value when it goes to someone who already has more dollars. In other words, Trickle Down Economics.

Tax policy that sounds universal often isn't. These proposals will provide minimal benefit to lower-income workers while delivering substantial savings to higher earners, all funded by increased debt that younger Americans will eventually pay.

Understanding how your taxes work, from progressive tax brackets to the function of deductions, is critical for evaluating political promises about tax relief. The next time you hear about tax cuts, ask how they will be implemented.

My biggest concern is what this means for the safety net and support for younger generations. The bottom rung of the ladder just broke.

-Dr. A

About the Author

Dr. Abdullah Al Bahrani is an economics professor and an award-winning educator. His research focuses on household finance and economic education. In addition to this newsletter, he has a YouTube channel and an Instagram account to share his economic insights. His goal is to improve economic literacy and well-being.

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Earlier this week, I discussed the administrative burden and its impact on program enrollment. Today, I want to dig a little deeper into Medicaid and shed some light on its use. I am surprised by how many people think this change will not affect them or their community. To anchor our discussion, I will use Kentucky and Northern Kentucky as specific examples. I will share the data source so you can look up Medicaid information in your area.

What You'll Learn This Week:

• Today: Medicare vs. Medicaid differences and local usage data

• Tomorrow: Tax code changes and impact on your money

• Yesterday: Higher Education

Medicare vs. Medicaid: Not the Same Program

Despite similar names, these programs serve completely different populations with different funding structures. I am surprised by how often these two programs are confused in discourse.

Medicare: The Senior Safety Net

Medicare is federal health insurance primarily for Americans 65 and older, plus some younger people with disabilities. Think of it as earned insurance—you pay into it through payroll taxes during your working years.

The Four Parts:

• Part A: Hospital stays, skilled nursing, hospice care

• Part B: Doctor visits, outpatient services, medical equipment

• Part C: Private Medicare Advantage plans

• Part D: Prescription drug coverage

Medicaid: The Income-Based Program

Medicaid provides health coverage for low-income individuals and families regardless of age. It's jointly funded by federal and state governments, which means coverage varies significantly by state.

Key Coverage Groups:

• Pregnant women and children

• Adults in low-income families

• Elderly adults needing long-term care

• People with disabilities

Medicaid in Kentucky

Using data from KFF (Kaiser Family Foundation), here's how Medicaid usage breaks down locally:

Statewide Overview

• 1.395 million Kentuckians are enrolled in Medicaid

• 21-25% of the state's population relies on the program

• $16.3 billion total spending in Kentucky (2024)

• 82% federally funded, 18% state-funded

What Medicaid Covers in Kentucky

• 44% of all births

• 46% of all children

• 68% of nursing home residents

Northern Kentucky Specifics

In the 4th Congressional District (Northern Kentucky):

• 22% of residents use Medicaid

• 165,900 total participants

• 32,200 adults

• 35,600 individuals with disabilities

• 61,500 individuals are covered by the Affordable Care Act

Regional Contrast: Eastern Kentucky's 5th Congressional District has a 54% Medicaid enrollment rate, more than double that of Northern Kentucky.

Breaking the "Welfare" Myth

68% of Kentucky Medicaid beneficiaries are currently working. There is an assumption that Medicaid supports people who don’t deserve the support. This program is essential healthcare coverage for working families who can't afford private insurance.

The Takeaway

The Big Beautiful Bill will have a significant impact on Medicaid and the millions of people who depend on it. Understanding who uses Medicaid and how it functions is crucial for grasping what's at stake. You would be surprised how many of your friends and family have received government support, but many don’t talk about it.

-Dr. A

Do you have any questions about today's topic? Reply to this email or connect with me on social media. Tomorrow at 8:30 AM, we'll dive into tax code changes.

Subscribe to receive my economic commentary via email

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About the Author

Dr. Abdullah Al Bahrani is an economics professor and an award-winning educator. His research focuses on household finance and economic education. In addition to this newsletter, he has a YouTube channel and an Instagram account to share his economic insights.

Missed Yesterday’s Post?

Higher Education Transformation

It is no secret that higher education is undergoing a critical shift in its market and funding. Higher education leaders are overseeing a change in the role of universities and their impact on local economic development. Whether it is the enrollment cliff, online and remote learning, AI, or declining budget appropriation, it feels like the perfect storm.

For some universities, these challenges will lead to closure. The number and frequency of closures have increased over the past five years.

The Big Beautiful Bill adds another challenge by making college less affordable to students and introduces new accountability measures that will complicate long-term planning for higher education.

Changes to Expect

• Federal student loans get major caps. Graduate students will face new borrowing limits, with Master's students capped at approximately $20,500 per year and professional students (including those in law and medicine) limited to $50,000 annually. The popular Grad PLUS loan program that allowed unlimited borrowing? Gone entirely.

• Parent PLUS loans are now limited. Parents can only borrow up to $65,000 per student, a change that will disproportionately impact Black and Latino families who rely heavily on these loans.

• Income-driven repayment gets gutted. The Biden administration's SAVE plan and other popular repayment options will be eliminated, leaving borrowers with just two choices. Nearly 8 million current borrowers will face higher monthly payments and lose any path to loan forgiveness.

• Colleges face new accountability measures. Programs must prove their graduates earn more than high school diploma holders, or risk losing access to federal student aid. One analysis found that fewer than half of two-year degree programs would pass this earnings test. The accountability measure tracks the median earnings of students by program and compares them to the average earnings of adults ages 25 to 34 with only a high school diploma. If students don’t earn more than adults without a college degree for two out of three consecutive years, then the program would lose access to federal loans for at least two years. (Link)

• Pell Grants see mixed changes. While the program wasn't cut as deeply as originally proposed, students will need to maintain higher credit loads to qualify for full grants. To qualify, students will now have to enroll in 30 credit hours per year, up from 24 hours previously. For most universities, this means that their students will need to take one additional class per semester to be eligible for Pell Grants. On the positive side, Pell Grants will now be available for short-term job training programs.

The Real-World Impact

• For students: Millions will be forced to turn to more expensive private loans or abandon their educational goals entirely. Graduate school becomes less accessible, particularly for students from working-class families.

• For universities: Institutions that rely heavily on graduate programs for revenue will see their bottom lines hurt. The accountability measures could force program closures.

• For families: The changes push millions into "the riskier and more expensive private student loan market."

Summary of Provisions

Inside Higher Education provides a concise summary of the key higher education provisions and their respective functions. (Link)

It Could Have Been Worse

The final version of the bill did not include many of the concerning proposals. Cuts to the Pell Grant program and a 21 percent endowment tax rate were eliminated from the final legislation.

The Takeaway

The Big Beautiful Bill Act will fundamentally transform higher education, making college less accessible for millions of students while shifting costs to families and private lenders. Higher education leaders will have to change how universities operate and who they serve.

Stay tuned for Part 3 of the Big Bill Beautiful series to be released tomorrow. Tomorrow, we dig into who is on Medicaid and the local regional impact. Find out how many people in your region might be impacted by changes.

-Dr. A

If you found value in this post, please share it and help others learn more about the implications of the new legislation

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About the Author

Dr. Abdullah Al Bahrani is an economics professor and an award-winning educator. His research focuses on household finance and economic education. In addition to this newsletter, he has a YouTube channel and an Instagram account to share his economic insights. His goal is to improve economic literacy and well-being.

Do You Miss Part 1?

Glitch or Feature?

The Big Beautiful Bill cuts spending by targeting the social safety net. Specifically, it will impact Medicaid and SNAP by cutting funding and increasing eligibility requirements. In the case of Medicaid, the Bill is expected to cut federal spending on Medicaid benefits by $1.02 trillion and eliminate at least 10.5 million people from the program by 2034. Medicaid is the single most extensive health insurance program in the US. The public program covers 71 million low-income, disabled, and elderly residents in the US. It pays for half of all US births and the care of six out of ten nursing home residents.

You would be surprised by how many people rely on Medicaid. On Tuesday, I will share more information on Medicaid use by state and local regions.

In addition to direct cuts, the BBB also restricts access by leveraging what public policy refers to as the administrative burden. This burden will impact all participants of the program.

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What is Administrative Burden?

Administrative burden is the process of adding friction to program participation or renewal. These burdens introduce friction, hindering smooth and efficient interactions and leading to a decline in the program's use.

Administrative burdens can take various forms:

• Learning Costs: Difficulties in finding information about programs, determining eligibility, or understanding how to apply for and use benefits. For example, the complexities of the Earned Income Tax Credit (EITC) program lead to a significant number of eligible recipients not claiming the benefit due to a lack of awareness or understanding.

• Compliance Costs: The time, effort, and sometimes financial resources needed to complete applications, gather documentation, or navigate bureaucratic procedures. Onerous recertification processes for programs like Medicaid can result in individuals losing coverage even if they remain eligible.

• Psychological Costs: The stress, frustration, anxiety, and sense of stigma that can arise from interacting with government agencies and trying to access benefits.

Why Do Administrative Burdens Matter?

• Impact on individuals: They can limit access to essential services and rights, particularly for individuals with limited resources, and can exacerbate existing inequalities.

• Diminished policy effectiveness: Burdens can undermine the goals and intended outcomes of policies.

• Negative impact on public servants: Navigating burdens can also be stressful and demotivating for frontline staff. Impacting the quality of service provided.

Administrative burdens are often a result of deliberate policy choices, rather than simply unintended consequences of complex systems. Policymakers may use administrative hurdles to limit access to services or rights they oppose. I expect that with the introduction of the BBB, many eligible participants will not receive the care they need because of the administrative burdens introduced.

The Takeaway

Here is what many are missing: adding administrative costs to programs harms everyone. The requirement to prove eligibility, more frequent eligibility checks, or the psychological cost of anticipating whether all will incur these new guidelines will impact everyone equally.

Sadly, this is what most people are missing. Whether you are a legitimate beneficiary of the program or someone abusing the system, you will have to incur the same higher costs to qualify. The increased administrative burden is not an unintended outcome; it is a feature of this new policy.

Tomorrow, I will discuss the impact of the Big Beautiful Bill on higher education and college attainment.

Till then,

-Dr. A

About the Author

Dr. Abdullah Al Bahrani is an economics professor and an award-winning educator. His research focuses on household finance and economic education. In addition to this newsletter, he has a YouTube channel and an Instagram account to share his economic insights.

Historical Examples of Administrative Burden Used to Reduce Program Uptake

Work Requirements in Social Safety Net Programs

TANF (Temporary Assistance for Needy Families): When TANF replaced AFDC in 1996, it introduced work requirements that created a "substantial administrative burden on state agencies," requiring documentation, verification, and tracking of enrollees' participation in approved activities for the required number of hours each month. More than 2 million families have lost all TANF support due to work-oriented sanctions since 1997. (Link)

Medicaid Work Requirements: Arkansas implemented Medicaid work requirements in 2018, resulting in over 18,000 people losing their coverage. Research found "no evidence that the policy succeeded in its stated goal of promoting work" and instead found "substantial evidence of harm to health care coverage and access." (Link and Link)

SNAP Work Requirements: For non-disabled adults without dependents (ABAWDs), work requirements result in "many ABAWDs having very low income because SNAP benefits had been their primary source of income." (Link)

It’s five years since I started sharing my economic education online.

The newsletter is growing with more that 3600 subscribers, YouTube hit 17,000 subscribers, and I am grateful for the opportunities that they have opened up for me.

Build your thought leadership by serving others.

The Big Beautiful Bill (BBB) has just passed the Senate, returned to the House, and is expected to reach the president's desk by the Fourth of July.

Today, I would like to provide an overview of the BBB's main economic provisions and then examine what personal finance principles can reveal about the bill's long-term implications.

Note: These are my thoughts so far. I will continue to study the Bill and share updates.

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The Main Provisions

Benefits

• Research and Development Tax Breaks: The bill includes tax incentives for R&D investments

• Enhanced Child Tax Credit: Parents filing joint returns can claim $2,200 per child (up from $2,000), available to single parents earning up to $200,000 and married couples earning up to $400,000

• Baby Bonds or Trump Accounts: A three-year pilot program providing every American baby born between 2025 and 2028 with a $1,000 government-funded investment account. Parents can contribute up to $5,000 annually, with the funds remaining locked until the child reaches the age of 18. This concept, originally referred to as "baby bonds," was pioneered by economists Sandy Darity and Darrick Hamilton (learn more here and here). Bernie Sanders included it in his presidential run. I actually think it's a solid idea that deserves bipartisan support

• Tax Relief for Workers: Eliminates federal income taxes on tips (up to $25,000) and allows overtime pay deductions (up to $12,500 for single workers)

Drawbacks

• Immigration Costs: Increased fees for asylum applications, work authorization, humanitarian parole, and immigration court filings. This will increase the chances that individuals “fall out” of legal status.

• Medicaid Work Requirements: Recipients ages 19-64 and parents of children 14+ must work, volunteer, study, or train at least 80 hours monthly

• Student Loan Changes: Caps on graduate program borrowing, limits on Parent Plus loans, and elimination of the Graduate PLUS program

Expected Consequences

Healthcare Access: Medicaid cuts will likely lead to the closure of rural hospitals, resulting in healthcare deserts in underserved communities.

Food Security: SNAP reductions could make grocery stores in low-income and rural areas less profitable, potentially reducing access to food. Independent grocers warn that federal support cuts could harm local retailers that provide essential services and jobs in these communities.

State Budget Pressures: States will face difficult choices as federal support for Medicaid and food assistance shrinks. They may need to cut benefits, reduce eligibility, or reallocate funds from education and infrastructure.

Tax Distribution: While all households will see tax reductions, 60% of the benefits will flow to those earning $ 217,000 or more (the top 20%), who will receive an average cut of $12,500. The lowest-income households (earning ~$35,000) receive only $150 on average.

See footnote1

Fiscal Impact

The Congressional Budget Office projects the bill will increase the deficit by $3.3 trillion over the next decade. The legislation also raises the debt ceiling by $5 trillion, allowing the Treasury to borrow more for existing obligations. With the national debt already around $36 trillion, this package will not reduce our fiscal burden.

The Personal Finance Lesson

In personal finance, the path to wealth lies in managing debt, specifically debt service costs. People struggle when interest payments begin consuming resources that could otherwise fund new opportunities or basic necessities.

As U.S. debt continues ballooning, interest payments claim an ever-larger share of government revenues. The more we allocate to servicing debt, the less capacity we have for the government to act as an economic stabilizer or make strategic growth investments.

Each year brings us closer to that tipping point. This bill appears to accelerate that timeline.

Have a happy Fourth of July,

-Dr. A

Dr. Abdullah Al Bahrani is an economist who writes about economics and policy from a personal finance perspective. Subscribe for weekly analysis that cuts through the political noise to focus on what really matters for your wallet and your future.

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It is no secret that every city is competing for people and for businesses to help develop a thriving economy. What differs between cities is their approach to competition and the incentives they offer. Whether it is tax incentives, amenities, or access to resources, firms and people want to locate in cities that support them.

Living in the Cincinnati-Northern Kentucky region, it is interesting to observe how the tri-state area, with its multiple jurisdictions, organizes and comes together to make the region an attractive hub. Attracting businesses and people to the region requires considerable effort and long-term planning. It’s a tough job, but an important one.

Corridor of Commerce

One example of these long-term plans is the strategic vision of a Corridor of Commerce. The Corridor of Commerce is a geographic region that is connected, and Northern Kentucky sits at its center. This vision provides a framework for all stakeholders to collaborate in attracting firms, capital, and talent.

“The Corridor of Commerce is a collection of high-quality assets within 100 miles of Cincinnati"…”

With that said, there is still a lot of work to be done to make this vision a reality. That is why this year, the Center for Economic Analysis and Development (CEAD) is hosting a Midsummer Symposium to share findings from its latest shift-share and cluster identification analysis, highlighting regional strengths and opportunities for growth.

I would love to have you join us and engage in this discussion, learning more about the work we are doing to provide economic expertise that supports our regional economic development.

Event Details:

• Title: Corridor of Commerce

• Date: Thursday, July 17, 2025

• Time: 8:00 – 10:00 AM

• Location: NKU Student Union, Room 107BC

Register

As Associate Dean at the Haile College of Business, I have the privilege of working closely with Janet Harrah, Executive Director of CEAD, and witnessing firsthand the exceptional work she leads in regional and economic development research. Her dedication to understanding and strengthening our economic landscape continues to impress and inspire our entire community.

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This year's symposium showcases the kind of impactful research that defines our mission at the Haile College of Business. I'm particularly excited to highlight the contributions of our Haile Research Lab student and Fellow, Dylan Fogt, who has been an absolute superstar in supporting this critical work. Dylan's involvement exemplifies how our students engage in meaningful research that directly benefits our region.

To Our Current and Alumni Fellows

Your presence would make this event even more meaningful. This annual event has turned into a reunion of sorts and an opportunity for us to network. Please not only attend but also help amplify this invitation within your organizations and professional circles. Your perspectives and continued engagement strengthen the connections between our academic work and real-world application.

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I look forward to seeing familiar faces and meeting new colleagues who share our passion for regional economic growth and development.

Register for the event here https://www.eventbrite.com/e/3rd-annual-mid-summer-symposium-corridor-of-commerce-tickets-1334012169309

Thank you to our sponsor: OneNKY Alliance

I hope to see you all there,

-Dr. A

Dr. Abdullah Al Bahrani is a Professor of Economics and Associate Dean at Northern Kentucky University’s Haile College of Business. His newsletter covers the personal side of economics and finance. If you are new here, subscribe and receive his commentary on the economy in your inbox.

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From the Archives: Economic Analysis

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OneNKY Alliance’s mission is to transform Northern Kentucky by uniting and mobilizing leaders around initiatives that produce tangible, measurable results and drive our community forward.

https://onenkyalliance.com

As an economist, I'm always looking for ways to improve financial literacy and understanding of the economy. An easy way to do that, especially early in your journey, is to develop an understanding of the language and concepts of personal finance and economics. Today, I am sharing with you the social media profiles of educators and creators who produce sound and enjoyable content.

Here are my current favorites on different platforms that blend practical money advice with a fundamental understanding of how economics affects your wallet:

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Newsletter

Money with Katie - Personal finance hot takes you'll actually enjoy, and Katie often references economic research in ways that make sense for everyday decisions. Her takes on housing markets and inflation usually align with what the economic data actually shows. Sign up for the newsletter.

Her book was recently released, and I just purchased my copy. Buy Rich Girl Nation.

Podcast

I Will Teach You to Be Rich by Ramit Sethi - I love the behind-the-scenes look into couples’ finances, but what impresses me as an economist is how Ramit applies behavioral economics to real relationships. His approach to "money scripts" aligns perfectly with what research shows about how our psychology drives financial decisions. Listen to the latest episode below.

Instagram

Personal Finance Club - Clear, data-driven content that doesn't fall for financial fads. Jeremy, a retired 36-year-old, manages the account. His wealth tips are simple: live below your means and invest early. He does a great job translating complex financial concepts without losing the nuance. One of his recent posts that I enjoyed compares the returns to Jerry Buss’ investment in the Lakers to the returns from investing in the S&P 500. Check it out below.

Instagram Runner up

Mckenzie Mack - She's sharing her journey to financial independence with impressive video editing and visual communication skills. What I appreciate most is her honest approach to the behavioral side of money management. She does a great job communicating her values and how she has designed her financial life to support that.

YouTube

The Money Guy Show - Solid, research-backed advice that doesn't chase market trends. Their "Financial Order of Operations" reflects good economic thinking about opportunity costs and marginal returns. Their YouTube channel is an excellent resource for learning about technical concepts. I enjoy watching their episodes while on the elliptical or when I am running on a treadmill.

For Couples

Modern Husband Podcast - Brian Page brings 15 years of personal finance and economics education experience to Modern Husband Podcast. Brian is recognized as the National Educator of the Year, a CNN Money Hero, and a former Working Group Member of the U.S. President's Advisory Council on Financial Capability. I have known Brian for years. He was an educator here in Cincinnati, and a great one. He leverages his teaching skills and ability to communicate to help us understand the world of personal finance.

Along with co-hosts Christian Sherrill and Dr. Bruce Ross, they cover "managing money and the home as a team.” Their show addresses the economic reality that most financial decisions happen in households and the importance of having a united front when it comes to finances.

The Takeaway

The economist in me loves these creators/educators because they understand that good personal finance is, in fact, personal. Spreadsheets help, but only if you know your values, the economy, and the psychology of your financial decision-making.

Your turn: Which creators help you connect economics to your money decisions? I'm building my resource list and would love your recommendations.

What did I miss that should be in the next Personal Finance Starter Kit?

Happy Follow Friday!

-Dr. A

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From the Archives

Got a new job and want to figure out how to set a budget? Check out this newsletter that breaks down how to budget a $60,000 salary.

After fourteen years in economics education, I've learned that great teaching is learned. That's why I'm personally inviting you to join me and other passionate economics educators at JETSET 2025.

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What Makes JETSET Different

• Cross-Level Community: We're the only conference where K-12 teachers collaborate with university professors. This diversity generates better ideas and broader perspectives on student learning.

• Implementation-Ready Content: Every session prioritizes practical application. You'll leave with materials you're able to use right away.

• Publication Pipeline: Our editors run workshops designed to help you publish your classroom innovations in the , expanding your professional impact beyond your campus.

• Strategic Networking: Build relationships with educators who understand your challenges and can accelerate your professional growth.

The Professional Development ROI

In my experience, one great teaching technique can transform an entire semester. One professional connection can shape your career trajectory. One publication can establish your reputation in economics education. JETSET consistently delivers all three.

Join Us in St. Louis

The Federal Reserve Bank of St. Louis provides the perfect backdrop for this year’s symposium. I am excited about the program we have designed and can’t wait to see everyone/

Ready to invest in your teaching? Registration below

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Already attending? Please help us reach other passionate educators by sharing this opportunity through your professional networks.

I look forward to seeing you in St. Louis.

Abdullah

Dr. Abdullah Al Bahrani is the Executive Director of the Journal of Economics Teaching, Professor of Economics, and Associate Dean at Northern Kentucky University’s Haile College of Business.

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Our Keynote Speakers Are Ready to JET SET! Are You?

Many of you have already started your summer breaks, so that means we’re just a few months away from JET SET 2025. Today, we are announcing our keynote speakers for this summer’s symposium! But before we …

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a year ago · Jadrian Wooten

As you know, I am a strong advocate for personal finance and economic literacy. I believe both provide you with toolkits that help you navigate the complexity of today's marketplace. Yet after reading books on personal finance and watching all the “advice” on YouTube, I've found a gap in how we approach wealth building.

I find that most personal finance advice focuses on the wrong thing. The “advice” focuses obsessively on expense and investment optimization. Most of the discussion centers on how to minimize spending, select more effective investment portfolios, or minimize your tax liability. These strategies matter, but they're missing a big part of the equation.

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The real opportunity, especially early in your career, is to focus on increasing your income and your career development. This is why I write so much about professional and career development, it is economic and financial literacy.

True financial freedom starts with a strategy for income growth. This requires finding the right intersection of your skills, market demand, and personal passion, and then leveraging that position for continuous growth. Do not settle for whatever job pays the bills, or worse, climb a predetermined corporate ladder! Sadly, I know too many people who are in jobs solely for the paycheck. You need an income growth strategy.

Work Has Meaning

I write about professional development and economic literacy because I refuse to accept that talented, educated professionals should settle for mediocrity or career dissatisfaction. We need to be honest that work represents more than a paycheck! Work is tied to your sense of purpose, your professional identity, and your long-term wealth-building potential. You deserve to do work that energizes you while building the financial future you envision.

Ways to Boost Your Income:

1. What is Your Income Potential: Instead of asking "Where can I cut expenses?" ask "How can I improve my income potential?" Most professionals can enhance their income by improving their positioning, developing their skills, or strengthening their professional networks. So, how are you investing in these areas?

2. Invest in Income Growth: Your skills, relationships, and reputation are assets that compound. A $2,000 investment in a professional certification that increases your annual income by $10,000 provides a 500% annual return. No investment portfolio can match that. For reference, Historical stock market returns are closer to 8-9%. Education and certificates pay. Perhaps it's time to invest in a graduate degree or certificate?

   Interested in a graduate degree? Learn more about one of my favorite programs below.

3. Optimize for Learning, Not Earning: Counterintuitively, the fastest way to increase income is sometimes to take on roles that maximize learning opportunities rather than focusing on immediate salary. The compound effect of accelerated skill development often produces higher lifetime earnings than optimizing for today's paycheck. One of my best decisions was working for a small firm when I started my career. Because it was small, everyone wore multiple hats, and I gained insight into other areas of the business. In hindsight, what I learned then has helped me throughout my career.

Design the Life You Want

Financial advice has been criticized for suggesting that financial freedom is about minimizing your budget for coffee and avocado toast budget. I, on the other hand, think that financial freedom is about building the lifestyle you want, and that includes a career that you love. Your goal should be to maximize your income and surround yourself with people who support that goal. As I discussed in "Building Your Professional Hype Team," relationships open doors to opportunities that can transform your earning potential overnight.

The Takeaway

The real financial advice should start with career and educational advice. Most financial advice either assumes that you have already found your career or neglects to focus on that side of the equation. Your ability to build wealth is directly tied to your ability to build a career that appreciates in value over time. That strong foundation will help you find new opportunities that you can leverage.

Stop optimizing your budget and start optimizing your career. The math is undeniable: income has unlimited upside potential, expenses have limited downside potential. If you can’t do both, then choose the strategy with unlimited upside.

-Dr. A

Dr. Abdullah Al Bahrani is Professor of Economics and Associate Dean at Northern Kentucky University's Haile College of Business. He provides strategic economic insight to business leaders and has taught economics to thousands of students. His research focuses on economic education and household finance.

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After teaching thousands of students and consulting with professionals across various industries, I've observed a practice that separates high achievers from those who plateau: they treat their CV/Resume* as a living document, not just a tool used to apply for a job.

Most professionals only update their resumes when job hunting. Do not do that! This is a reactive approach that misses the importance of regular career reflection. Today, I'm sharing why I update my CV and resume every six months, along with the professional logic behind this practice. In the pursuit of transparency, I will also share my recent version of my CV/Resume.

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* For international readers: while CV and resume are used interchangeably throughout this text, usage varies by region. In the United States, 'CV' typically refers to academic documents and 'resume' to industry applications. In many other countries, including Oman, 'CV' is the standard term for what Americans refer to as a resume.

The Strategic Framework

Think of your CV/Resume as a quarterly earnings report for your career. Companies monitor performance continuously to make informed decisions. Your career deserves the same analytical rigor.

As Terry Pratchett wrote:

"If you do not know where you come from, then you don't know where you are, and if you don't know where you are, then you don't know where you're going."

Three Strategic Benefits

1. Growth, Recognition, and Success Amplification. When I sit down every six months to update my CV/Resume, I'm forced to catalog accomplishments I might otherwise forget. During my most recent update, I discovered that I'd given over 40 invited presentations. The invitations range from local business councils to international institutions, such as University College London (CTaLE) and Sultan Qaboos University in Oman. Without systematic tracking, I would have drastically undersold this portfolio of activity.

2. Keep Your Old CV/Resumes. I keep versions of my CV dating back to 2010. This enables me to track my progression from assistant professor to associate dean, as well as the projects that have led me to where I am today. Reflecting on history serves as a source of nostalgia and provides me with strategies to advance my career.

   I explored similar principles of strategic career planning in Seven Career Principles from 4 AM Reflections.

3. Skill Gap Identification: Regular reviews reveal areas of stagnation, highlighting opportunities for improvement. If your CV/Resume looks identical after six months, that's valuable data indicating you need new challenges. One of my current students, Princess Nworah, recently shared her resume update insights on LinkedIn, demonstrating how systematic documentation reveals both growth achieved and areas needing attention.

The Implementation Process

Every December and June:

1. Document new achievements and responsibilities

2. Quantify impact with measurable outcomes

3. Update skills and certifications

4. Archive the previous version with a date stamp

5. Identify gaps and set six-month development goals

My Current CV: Transparency in Practice

I'm sharing my current CV to demonstrate the outcome of my 15 years of following this practice.

Abdullah Al Bahrani Cv 6

236KB ∙ PDF file

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The Takeaway

Your CV/Resume is both a job search tool and a strategic career management tool. By updating it every six months, you transform a static document into a dynamic reflection system that enhances self-awareness and positions you for career advancement.

The practice I developed as a PhD student at the University of Kentucky has become one of my most valuable professional habits. The time investment is minimal, but the strategic insight and confidence it provides cannot be quantified.

Start your next six-month cycle today. Your future self will thank you for the clarity it creates.

What does your CV/Resume look like?

-Dr. A

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Dr. Abdullah Al Bahrani is Professor of Economics and Associate Dean at Northern Kentucky University's Haile College of Business. He provides strategic economic insight to business leaders and has taught economics to thousands of students. His research focuses on financial decision-making and economic literacy.