Cato Podcast Cato Cage Match: Monetary vs. Fiscal Policy
23 snips
Sep 9, 2025 Dominic Lett, a fiscal policy expert, argues that entitlement programs like Social Security and Medicare are causing unsustainable national debt. He debates with Norbert Michel on whether fiscal or monetary policy presents a larger threat. They discuss the risks of 'fiscal dominance' after the 2008 economic crisis and stress the urgent need for structural reforms. Both agree that without political restraint, the U.S. economy faces dire consequences, highlighting the complexities of navigating today's fiscal and monetary challenges.
AI Snips
Chapters
Books
Transcript
Episode notes
Entitlements Drive Debt Toward Wartime Levels
- Dominik Lett warns the U.S. is approaching World War II levels of debt-to-GDP, driven mainly by Social Security and Medicare.
- He says mandatory entitlement growth puts the budget on autopilot and makes deficits feel like wartime spending in peacetime.
From Gold To Fiat: Centralized Money Control
- Norbert Michel traces the monetary shift from decentralized metallic standards to a fiat system controlled by the Fed.
- He argues the transition removed natural market constraints and centralized control over base money.
Fiscal Math Creates Political Inertia
- Dominik Lett says fiscal math makes current policy paths unsustainable and politicians avoid hard reforms.
- He highlights uncertainty about debt thresholds and warns deficits already slow growth.
