"Econ 102" with Noah Smith and Erik Torenberg Biden's New Tax Plan, Algorithmic Pricing, and Noah's Media Diet
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May 10, 2024 The discussion dives into the intricacies of Biden's tax plan and its implications for fiscal responsibility, particularly for the middle class. They analyze the potential effects of capital gains taxes on investments, advocating for fairer wealth taxation. The podcast also tackles algorithmic pricing's impact on competition, highlighting concerns over price discrimination. Lastly, they emphasize the importance of media literacy and engaging thoughtfully with opposing viewpoints, encouraging listeners to refine their critical thinking skills.
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High Deficit Spending
- The US government is borrowing more money relative to GDP than ever before outside of major crises.
- This high deficit spending is concerning given rising interest rates and persistent inflation.
Austerity Measures Needed
- Both spending cuts and tax increases are necessary to address the US deficit and rising interest costs.
- Spending is historically high, and taxes are historically low, relative to GDP.
Government Spending and Industrial Policy
- Government spending on industrial policy can be beneficial, such as subsidies for battery factories and EVs.
- However, excessive subsidies to overpriced service industries like higher education and healthcare represent wasteful spending.