The Tom Woods Show Ep. 2590 Reagan's Budget Director: What Elon and Vivek Should Do
Jan 9, 2025
David Stockman, former director of the Office of Management and Budget under Reagan, sheds light on urgent federal budget reforms. He proposes $2 trillion in cuts to combat soaring national debt, targeting outdated agencies and entitlement programs. Stockman critiques the inefficiencies of federal oversight and advocates for market solutions in areas like health insurance. He also discusses the need to rethink military spending and interventionist policies, warning of impending financial crises linked to unchecked government spending.
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Urgent Need for Savings
- The US public debt is increasing so rapidly that interest costs are enormous.
- This necessitates $2 trillion in annual savings to avoid a fiscal calamity.
Blueprint for Cuts
- Create a blueprint for cutting $2 trillion by FY2029.
- Divide the savings into three buckets: slashing the fat (non-essential agencies), downsizing the muscle (defense), and cutting the bone (entitlements).
Challenges of Small Cuts
- Eliminating 16 minor agencies saves $11.1 billion and removes 71,000 staff.
- Public perception of agency names makes even small cuts difficult.