Slate Money Money Talks: Philosophy of The Budget
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Jun 10, 2025 
Barry Lam, host of Hi-Phi Nation, dives into the philosophical implications of budget deficits and fiscal responsibility. The conversation explores how historical philosophers like Descartes and Hume influence current financial debates. Lam critiques the methodologies used in budget assessments, revealing their potential manipulation. He discusses Nelson Goodman’s theories on interpreting past data for future predictions and examines the complexities of political projections. The episode also considers language's role in shaping economic discourse and the necessity of skepticism in political dialogue.
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Deficit Changes Depend on Assumptions
- The deficit's future change depends on assumptions about economic growth and tax revenues.
- We assess the bill's impact by comparing hypothetical future deficits, not just year-to-year numbers.
CBO Uses Hypothetical Future Worlds
- The Congressional Budget Office (CBO) scores bills by comparing deficits under the bill vs current law future.
- This comparison focuses on hypothetical 2026 worlds with and without the bill.
Choice of Baseline Changes Deficit View
- The baseline used to score bills critically affects whether a deficit appears to rise or fall.
- Choices like current law baseline vs current tax rates change deficit portrayal entirely.