 |  |  |
| 0:00 | -1:06:29 |
Dust off your calculators, because beloved economic policy wonk Brian Riedl is back on The Remnant to discuss everything you’ve ever wanted to know about the federal budget, spending, taxes, and deficits. He also touches on the right’s curious lurch toward industrial policy and common good capitalism, and why conservatives and progressives alike can’t resist the prospect of a free lunch. Is the Laffer Curve a force for evil? How progressive is the U.S. tax code? And why is Joe Biden so determined to outspend Mack the Knife?
Show Notes:
-Brian’s page at the Manhattan Institute
-Brian’s previous Remnant appearance
-Simpson-Bowles and the art of budget negotiations
-Brian in The Dispatch on taxing the rich
Riedl is great, but the debt doomsday narrative that has been predicted for years won't resonate with enough people in power right now. They say, "doomsday hasn't come yet, why not keep spending?" A new response to MMT's promise of unlimited deficits is needed from deficit hawks.
Towards that end, Brian and Jonah hit on something, that deserves a lot more attention. That is, perhaps the real problem with the growing federal debt isn't so much the size of it as the idea that so many people don't think they have any reason to worry about paying it back. It's a massive psychological shift about taxation and common interests.
Meanwhile, "Tax the rich" isn't about paring the deficit at all. It's just an equity/fairness ploy for people who just don't accept unequal distribution of wealth. MMT says USA can just print money to pay for whatever we want (until we cause inflation-are we there yet?). But, if people believe that, then why would anyone feel any obligation to pay taxes (at least on the federal level) and when will the government stop spending if inflation isn't happening?
I forwarded the link to this podcast to a card-carrying progressive friend in Austin Texas and she is thoroughly annoyed… Thank you for the new material!