Is Uncle Sam Running a Ponzi Scheme with the National Debt? w/ Dr Dan Mitchell - EP235

Economics Explored

In this episode, show host Gene Tunny engages with Dr Dan Mitchell in a frank discussion about the US’s looming debt crisis. The conversation covers Dan’s new book, co-authored with Les Rubin, The Greatest Ponzi Scheme on Earth: How the US Can Avoid Economic Collapse. In the episode, Dan talks about the unsustainable trajectory of federal debt, the consequences of government overspending, and the tough choices needed to avert economic disaster. Hear how Dan reacts to the Modern Monetary Theory view that debt and deficits aren’t a problem.

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About this episode’s guest: Dr Dan Mitchell

Daniel J. Mitchell is a top expert on fiscal policy issues such as tax reform, the economic impact of government spending, and supply-side tax policy. Mitchell is a former senior fellow with The Cato Institute and The Heritage Foundation and served as an economist for Senator Bob Packwood and the Senate Finance Committee. His articles can be found in such publications as the Wall Street Journal, New York Times, Investor's Business Daily, and Washington Times. He is a frequent guest on radio and television and a popular speaker on the lecture circuit. Mitchell holds bachelor's and master's degrees in economics from the University of Georgia and a Ph.D. in economics from George Mason University.

What’s covered in EP235

• Introduction. (0:00)
• US government debt and entitlement programs. (4:48)
• Government spending and its impact on the economy. (9:05)
• US government spending, Social Security, and fiscal policy. (14:06)
• US retirement systems and entitlement programs. (18:32)
• Medicare reform and the federal budget. (24:05)
• US budget deficits and entitlement programs. (27:59)
• Taxes, spending, and economic growth. (33:01)
• Kyle Kulinksi clip. (38:11)
• Dan responds to Monetary Monetary Theory (41:00).
• Entitlement programs and government spending. (44:40)

Takeaways

1. The US federal debt is soaring, with projections showing a large increase in the debt-to-GDP ratio in the coming decades.
2. Government spending, particularly on entitlement programs, is the primary driver of fiscal imbalance.
3. Addressing the debt crisis requires significant policy changes, including reforming entitlement programs like Social Security and, to a lesser extent, Medicare and Medicaid.
4. Reforming Social Security through personal retirement accounts could save trillions over the long run.
5. Lessons from other countries show that fiscal discipline and restructuring can improve economic stability.

Links relevant to the conversation

• The Greatest Ponzi Scheme on Earth: How the US Can Avoid Economic Collapse: https://www.amazon.com.au/Greatest-Ponzi-Scheme-Earth-Economic/dp/1637632770
• Dan’s bio: https://mises.org/profile/daniel-j-mitchell
• Dan’s International Liberty blog: https://danieljmitchell.wordpress.com/
• Dan’s post “OECD Economic Research Finds that Government Spending Harms Growth”: https://danieljmitchell.wordpress.com/2016/11/28/oecd-economic-research-finds-that-government-spending-harms-growth/
• Dan’s post “The IMF, The Laffer Curve, And Supply-Side Economics”: https://freedomandprosperity.org/2022/blog/the-imf-the-laffer-curve-and-supply-side-economics/

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Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au.

Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.