Nick Gillespie

I'm not saying everything would have been fine and it would have been difficult. But the New Deal, it's worth going back and looking at how did the New Deal affect the economy? And did it string out bad times? Because there are two economic depressions in the 30s that economists talk about. And that every government intervention has costs and benefits. And oftentimes, we have lost sight of things.

I'm not saying everything would have been fine and it would have been difficult. But the New Deal, it's worth going back and looking at how did the New Deal affect the economy? And did it string out bad times? Because there are two economic depressions in the 30s that economists talk about. And that every government intervention has costs and benefits. And oftentimes, we have lost sight of things.

Sure.

Sure.

And particularly if I might, that was behavior that was heavily incentivized by the federal government in terms of guaranteeing mortgage loans and things like that.

And particularly if I might, that was behavior that was heavily incentivized by the federal government in terms of guaranteeing mortgage loans and things like that.

No, I mean, but it was the Federal Reserve, first off, like kept interest rates artificially low for a long time. And then the government had a policy of its government sponsored entities buying up all of the mortgage paper that was going. So banks did not do the due diligence. But they jumped into that later. Everybody has some schmutz on their hands from all of this. The schmutz.

No, I mean, but it was the Federal Reserve, first off, like kept interest rates artificially low for a long time. And then the government had a policy of its government sponsored entities buying up all of the mortgage paper that was going. So banks did not do the due diligence. But they jumped into that later. Everybody has some schmutz on their hands from all of this. The schmutz.

I would argue that it's also, you know, we would probably agree on, you know, on a similar path because I suspect, I mean, you know, we went, I was looking this up beforehand in 2000, in 2001, which was Bill Clinton's final budget year as president. You know, he left office in 2000 or early 2001. Fiscal year lasts, you know, a little bit longer. He spent less than $2 trillion.

I would argue that it's also, you know, we would probably agree on, you know, on a similar path because I suspect, I mean, you know, we went, I was looking this up beforehand in 2000, in 2001, which was Bill Clinton's final budget year as president. You know, he left office in 2000 or early 2001. Fiscal year lasts, you know, a little bit longer. He spent less than $2 trillion.

That was the entire federal budget. We are over $7 trillion now. In 2019, the year before COVID, we were spending $4.4 trillion a year. That went up to $6.6 trillion in 2020. It is now $7.2 trillion. um, in spending. And I suspect that you would agree with me that we should not be, it's not clear why we're spending $7.2 trillion.

That was the entire federal budget. We are over $7 trillion now. In 2019, the year before COVID, we were spending $4.4 trillion a year. That went up to $6.6 trillion in 2020. It is now $7.2 trillion. um, in spending. And I suspect that you would agree with me that we should not be, it's not clear why we're spending $7.2 trillion.

But like, why at all? Like, how do you go from, you know, we're post COVID, right?

But like, why at all? Like, how do you go from, you know, we're post COVID, right?

Yeah, no, we can definitely be more effective in intervening in economic, you know, Yeah, I don't think part of the government's role should be like, it's not like going to a personal trainer and you come in and they're like, hey, you're looking a little fat. Let's do some abs today and have the government constantly be smoothing the economy.

Yeah, no, we can definitely be more effective in intervening in economic, you know, Yeah, I don't think part of the government's role should be like, it's not like going to a personal trainer and you come in and they're like, hey, you're looking a little fat. Let's do some abs today and have the government constantly be smoothing the economy.

Or I think it's hubris to think that it can control things. It's one thing when you have a catastrophic adventure.

Or I think it's hubris to think that it can control things. It's one thing when you have a catastrophic adventure.

No, but it's also like, remember, you know, in the early 2000s, you know, we had the tech bubble crash. Yes. And then we had a bunch of, you know, accounting rules that were going to make sure that, you know, big, you know, the financial sector never fucked around with shit anymore.

No, but it's also like, remember, you know, in the early 2000s, you know, we had the tech bubble crash. Yes. And then we had a bunch of, you know, accounting rules that were going to make sure that, you know, big, you know, the financial sector never fucked around with shit anymore.