Things aren’t looking so good for the U.S. dollar. Though it’s spent decades as the world’s reigning reserve currency, it’s been weakening lately thanks to tariffs and uncertainty in the U.S. economy.

But its declining value, has been in the making for a while, according to Harvard economist and author of the new book, “Our Dollar, Your Problem,” Kenneth Rogoff.

“The problem we’re facing is that, independent of this dollar phenomenon, interest rates are going up,” said Rogoff. “And if you’re the world’s biggest debtor, that’s tough.”

Rogoff joins Kai and Kimberly to unpack how the greenback became the world’s go-to currency, what a reserve currency actually is, why it’s been losing some of its value lately and what might take its place. Plus, how does military power tie into all this?

We’ll also get into some potential cryptocurrency regulation coming down the pipeline and discuss the troubling parallel between Trumpism and Brexit.

Then, you tell us what books help you reset – from classic literary romances to an apocalyptic sci-fi tale. And, our intern, Zoha Malik (hi!) shares her answer to the Make Me Smart question.

Here’s everything we talked about today:

• “Our Dollar, Your Problem,” by Kenneth Rogoff from Yale University Press
• “How Trump Could Dethrone the Dollar” from Foreign Affairs
• “Why Is The US Dollar Weakening? Trump’s Tariffs Push Dollar Index To 3-Year Low.” from Forbes
• “Senate advances landmark crypto bill with Democrats divided” from Politico
• “Senate Advances Crypto Regulation Bill With Bipartisan Support” from The New York Times
• “Senate advances a major crypto regulation bill on a bipartisan vote” from NBC News
• “Brexit’s Failures Could Foreshadow Trump’s. Just Not in the Way You Might Think.” from The New York Times

Got a question or comment for the hosts? Email makemesmart@marketplace.org or leave us a voicemail at 508-U-B-SMART.

Walmart had said it would raise prices in response to tariffs. Then, it got a call from the White House. Now, the retailer says it will swallow some of the costs. This has us wondering: where have all the free market diehards gone? Plus, Kimberly reflects on the tornadoes that hit her hometown of St. Louis, Missouri and explains FEMA’s plan to shift disaster costs to the states. Also? Did the GOP really name their reconciliation bill the “One Big Beautiful Bill?”

Here’s everything we talked about today:

• "Bessent says Walmart will absorb 'some tariffs' after speaking with retailer's CEO" from Fox Business
• "FEMA will shift more disaster recovery responsibilities to the states, acting chief says" from PBS News
• "Here’s the latest information on Friday’s tornado in St. Louis" from STLRP
• "Trump's bill advances in rare weekend vote as House conservatives negotiate changes" from NPR

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On today’s show, Kai makes a special annoucement! But first, Moody’s knocked the United States’ government’s credit rating down a peg below Triple-A. We’ll break down what that actually means and why it matters. Plus, we’ll explain why, even with a majority, the House GOP hasn’t been able to pass its budget bill. And, we’ll play a round of Half Full/Half Empty and nerd out on “Star Wars” spin-off shows.

Here’s everything we talked about today:

• "House budget panel rejects GOP megabill amid conservative opposition" from Politico
• "Army to place large metal plates on DC streets to protect them from tanks during June parade" from WTOP News
• "U.S. Loses Last Triple-A Credit Rating" from The Wall Street Journal
• "Airbnb Is in Midlife Crisis Mode" from Wired
• "Why banks still have branches — and why some are motivated to add more" from Marketplace
• "Gen Z's 'conscious unbossing' should be a wake-up call for businesses" from Business Insider
• ​​"Is the Next Great American Novel Being Published on Substack?" from The New Yorker
• "Warner’s Streaming Service Has New Name: Its Old One. Meet ‘HBO Max.’" from The Wall Street Journal

Got a message for the hosts? Email makemesmart@marketplace.org or leave us a voicemail at 508-U-B-SMART.

In today’s show, Kimber-Kai are answering your questions about all the wild things going on in the U.S. economy. Isn’t the 30% tariff rate on China still crazy high? And, how are local governments preparing for potential federal funding cuts? We’ll discuss how states are weighing their next moves, and how the “Trump Slump” has taken shape in California. Then, we’ll get into the Federal Reserve’s wait-and-see tariff strategy.

Here’s everything we talked about today:

• “State of U.S. Tariffs: May 12, 2025” from The Budget Lab at Yale
• “States, Cities Face Funding Collapse Threat With Trump Cuts” by Bloomberg
• “Higher prices or higher unemployment? The economy could face a no-win dilemma” by NBC News

Join us tomorrow for “Economics on Tap.” The YouTube livestream starts at 3:30 p.m. Pacific time, 6:30 p.m. Eastern.

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On today’s show, Kimberly continues to make us smart about the GOP’s massive tax bill. This time, we’re digging into a small (but important) detail buried in the bill that could have enormous consequences for the regulation of artificial intelligence: a clause that would block states from enforcing AI laws for ten years. We’ll break down what’s at stake. And, the U.S. dollar is getting weaker. We’ll explain what it could mean for the economy.

Here’s everything we talked about today:

• "House panel advances tax portion of Trump agenda bill after marathon meeting" from The Hill
• "State AI laws would be banned under clause buried in House budget bill" from Stat News
• "G.O.P. Targets a Medicaid Loophole Used by 49 States to Grab Federal Money" from The New York Times
• "US Is Not Negotiating for Weaker Dollar as Part of Tariff Talks" from Bloomberg

• "Republicans push for a decadelong ban on states regulating AI" from The Verge

  
  

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Today we’re ditching the drama on Earth and talking about K2-18b, an exoplanet 120 light-years away. K2-18b recently made headlines after researchers claimed to observe possible “signs of life” in the planet's atmosphere. So, did we find aliens? Michaela Musilova, an astrobiologist and analog astronaut, said it’s too early to tell. On the show today, Musilova breaks down the debate over K2-18b, why better telescopes are needed to find definitive proof of life on another planet, and why President Trump’s proposed funding cuts to NASA could disrupt this search. Plus, what’s it like to be an analog astronaut, and what do they actually do?

Then, why a healthy reading diet contains both “broccoli” and “chocolate pie” books. And, Jessamine Chan, author of “The School for Good Mothers,” answers the Make Me Smart question.

Here’s everything we talked about today:

• "Astronomers Detect a Possible Signature of Life on a Distant Planet" from The New York Times
• "Does exoplanet K2-18b host alien life or not? Here's why the debate continues" from Space
• "Experts alarmed as White House proposes 'largest single-year cut to NASA in American history'" from Space
• "NASA’s Don Pettit Shot 220 Days of Amazing Photos From the I.S.S." from The New York Times
• "What’s in Trump and Republicans’ giant tax and immigration bill?" from The Washington Post

• "Republican Tax Plan Boosts SALT Deduction, Ends Green-Energy Breaks" from The Wall Street Journal

  
  

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House Republicans’ newly released tax plan includes trillions in tax breaks. But those tax cuts will come at a cost. We’ll get into it. And, Apple plans to raise iPhone prices but won’t point fingers at President Trump’s tariffs. We’ll unpack how all the tariff chaos could lead to elevated prices, no matter what they actually cost companies. Plus, sci-fi escapism and Pope Leo XIV’s love of baseball make us smile.

Here’s everything we talked about today:

• "Exclusive | Apple Considers Raising iPhone Prices, Without Blaming Tariffs" from The Wall Street Journal
• "With China tariffs on hold, will Americans stop stockpiling goods?" from Marketplace
• "House GOP unleashes sweeping tax legislation" from Politico
• "House tax writers eye SALT deduction cap rejected by key lawmakers last week" from The Hill
• "Why Tolkien thought "sub-creation" was the secret to great fantasy and science fiction" from Big Think

• "Pope Leo asks fan 'Sox or Cubs?' as he signs a baseball" from The Chicago Sun-Times

  
  

  Got a question or comment for the hosts? Email makemesmart@marketplace.org or leave us a voicemail at 508-U-B-SMART.

As the Trump administration heads into a weekend of trade talks with Chinese officials, the President is floating a new tariff rate on Chinese imports: 80%. While it’s much lower than the current tariff rate of 145%, it’s still far too high for many businesses. We’ll get into it. And, a recent legal win for Epic Games could shake up Apple’s App Store. Plus, we’ll weigh in on mass producing orchids and going cashless during a round of Half Full/Half Empty!

Here’s everything we talked about today:

• "DOJ, FTC open inquiry into the concert industry" from The L.A. Times
• "Fortnite applies to launch on Apple's App Store after Epic Games court win" from CNBC
• "How Apple Created a Legal Mess When It Skirted Judge’s Ruling" from The New York Times
• "Ahead of China-US talks, Trump says 80% tariff 'seems right'" from Reuters
• "Revenge RTO: Workers are coming in late, leaving early and stealing snacks as they find small ways to get back at their bosses" from Fortune
• "Trump Revives Push for Higher Taxes on the Rich" from The New York Times
• "How the Exotic Orchid Became a Mass-Market Commodity" from The Wall Street Journal

• "The drawbacks of an increasingly cashless society" from Marketplace

  
  

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