John W. Diamond explains why President Donald Trump’s recently announced trade deal with the United Kingdom is a net negative for the U.S. and why despite an additional trade deal with China, we’re still worse off than we were five months ago.
Then, he reviews the progress of Republicans’ “one big, beautiful” tax bill and explains what makes fiscal sense and what doesn’t.
Finally, he explores an executive order from Trump that aims to slash prescription drug prices and explores the potential trade-off between lower consumer costs and incentivizing pharmaceutical innovation.
This conversation was recorded on May 13, 2025.
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“The Two-Handed Economist” delivers timely analysis of economic news from John Diamond, director of the Baker Institute Center for Tax and Budget Policy. Each week, John dives deep into the latest policy developments — mostly at the federal level, but with insights now and again into Texas and Houston finance as well.
Why a two-handed economist, you might ask? President Harry Truman famously asked for a one-handed economist, tired of hearing, “On the one hand, this,” and “On the other hand, that.” John embraces the complexity that a one-handed economist might shy away from, explaining how it all adds up for consumers, businesses, and policymakers.
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