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How Political Instability Affects the Economy

Dan Drezner appears on NPR's "The Indicator" to discuss how the Capitol building riots could affect economic growth.

This is THE INDICATOR FROM PLANET MONEY. I'm Stacey Vanek Smith. Like most people yesterday, I watched the events unfolding in Washington, D.C., in shock. Watching an angry mob of President Trump's supporters storm the Capitol building was not something I ever expected to see. And frankly, it was a really scary moment. Things felt really unstable, really fragile. And our country just felt very vulnerable and unstable at that moment.

And also, I was confused because the stock market went up. And I know that the stock market isn't the economy. I know. I hear that all the time. And it's true. Still, the stock market is an economic signal. And I wanted to understand I guess more generally, what is the relationship between economic growth and political instability?

So I called up Dan Drezner. He's a professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University. He also writes for The Washington Post. After the break, a conversation with Dan Drezner about economic growth, political instability and the economic indicators that he is watching.

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