Leading Indicator
How Political Tribalism Is Enabling Bad Economic Policy | Jessica Riedl
Apr 16, 2025
Economist Jessica Riedl, a Senior Fellow at the Manhattan Institute, dives into the misconceptions around tariffs and trade deficits, arguing they reflect a strong economy rather than a failing one. She critiques the political landscape, highlighting how tribalism skews economic policy, and discusses the disturbing trend of Congress prioritizing spectacle over governance. Riedl also touches upon the influence of the bond market on presidential strategies and the implications of partisan divides on critical budget discussions.
25:25
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Reframing trade deficits as capital surpluses highlights their positive role in fueling economic growth and enabling domestic investment.
- Congress's reluctance to assert authority over tariffs reflects a deeper issue of political tribalism affecting rational economic policymaking.
Deep dives
The Misunderstanding of Trade Deficits
The current administration's perspective on trade deficits is fundamentally flawed, viewing them negatively as if they represent a loss or subsidy to other countries. In reality, a trade deficit merely reflects a situation where one country buys more from another, enabling investment in its economy through purchases like treasury bonds. This flow of capital is crucial for a healthy economy, as it fuels growth and supports consumer spending. Reframing trade deficits as capital surpluses can help destigmatize them, emphasizing the beneficial aspects of foreign investment in the domestic market.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
