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Larry thinks that economists should maintain political neutrality and communicate directly with the public in order to avoid accusations of collusion that now tarnish even seemingly objective research. In that spirit, I invited him to join last week’s stream to talk about the issue. In this episode of the Glenn show, Larry walks us through debt, social security, taxes, personal income, fiscal policy, and China’s seemingly unstoppable march to becoming the world’s economic powerhouse.
In thinking, I am supported by Larry for not being politically neutral in the economy. However, this particular discussion highlights the practical problems of such a structure. Larry has very harsh words for Donald Trump. Even if his analysis is based solely on his perception of Trump’s economic policies, it’s easy to assume that Trump-friendly but persuasive people might hear Larry (or any number of other experts) refer to the president as a “bitter” and think he’s too politically biased to trust, even if his analysis stands up to scrutiny. Even a non-political economist who carefully avoids any kind of political value judgment may find his work supported or supported by one party or another, or one party or another within a party. Then he will have done “politics,” regardless of what he tried to do.
However, I think Larry’s point that economists should do more to speak directly to the public is a good one. I have to—I’ve been doing it for decades. (In fact, I recently went on Larry’s podcast (to quote the history of The Glenn Show.) When a major economic issue is being compromised, economists must step in to educate the public. And when there is disagreement among economists on specific issues—as is often the case—the debate must be brought to the people in terms that can be understood by any reasonable person. I plan to put my Rolodex to work and do some of that here on The Glenn Show.
In this the conversation, Larry KotlikoffProfessor of Economics at Boston University, Research Associate at NBER, and former Senior Economist at Reagan’s Council of Economic Advisors—and I go through the current administration at some point. Not from a party lens. From first principles.
What follows is difficult and sometimes surprising.
You can hear us cover:
*Why Kotlikoff sees the real deal in capping credit card interest rates — and what it says about the conflict between money and consumers in America’s economy.
* The 401(k) mortgage loan statement: what you don’t understand about savings, housing affordability, and the purpose of a retirement account.
* Tariffs and the capital account: why the trade deficit is a symptom, not a disease – and why tariffs can’t fix what’s broken.
* Financial calculations hidden in plain sight: why raising all federal and state taxes by 25% today still may not be enough—and why the US is in longer-term fiscal trouble than Italy.
* Immigration: US population growth halved by 2025. What does that mean for workers, income, and America’s long-term economic plan
* The Fed, Volcker, and the power of management
* Geopolitical realignment as an economic document: why the current global era may be the most important – and misunderstood – economic issue of our time.
Why this matters now: Every proposal in this discussion goes back to the same arguments—the money system has been quietly handing out money from the young to the old for 70 years, stifling savings, distorting incentives, and putting money into the future. The headlines of each news are indicators. Kotlikoff keeps bringing us back to the analysis. And understanding your wealth requires understanding the country where your wealth resides. This is the conversation.
Disclaimer: The content of the “Treussard Interview” is for informational and educational purposes only and should not be construed as financial advice. The views expressed are those of the host and guests and do not necessarily reflect the views of Treussard Capital Management or its affiliates. Investors should consult their financial provider before making any investment decisions. For public disclosures, visit treussard.com.
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