Odd Lots This Is Why It's So Hard To Cut Public Spending
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Feb 10, 2025 
Fritz Bartel, an Assistant Professor of International Affairs at Texas A&M and author of 'The Triumph of Broken Promises', delves into the political challenges of public spending cuts, especially in light of the Trump administration's goals. He discusses the difficulty of slashing entitlement programs like Medicare and Social Security, drawing parallels to historical austerity measures in the Eurozone. Bartel also contrasts how different political systems approach credibility in the face of strict economic necessities, revealing vital lessons from the economic crises of the past.
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Economic Crisis of the 1970s
- Post-WWII economic boom ended in the 1970s, causing resource constraints.
- Both Western and Eastern bloc countries faced similar economic pressures, like stagflation and declining productivity.
Government Promises
- Western governments prioritized abundance with some equality, supporting labor unions and welfare states.
- Eastern bloc countries promised shorter workdays, upward mobility, and housing, focusing more on equality but struggling with abundance.
Soviet Economic Growth and Western Investment
- The Soviet Union experienced rapid growth and industrialization, attracting Western investment in Eastern bloc debt.
- Western financial markets viewed this debt as a safe bet, believing in the Soviet Union's authoritarianism and economic strength.
