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Odd Lots

This Is Why It's So Hard To Cut Public Spending

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.
39:02

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Podcast summary created with Snipd AI

Quick takeaways

  • Cutting public spending is politically challenging as it often involves breaking commitments to essential entitlements like Social Security and Medicare.
  • Historical economic crises reveal varying capacities of governments to implement austerity measures, highlighting the significance of political will and public credibility.

Deep dives

The Role of Government Spending

The discussion highlights the current political atmosphere focused on reducing government spending, particularly under the Trump administration's 3-3 plan which aims for growth, oil production, and deficit reduction. Despite the high unemployment rate, which usually doesn't align with significant deficits, there appears to be a growing impulse to cut spending. However, significant challenges arise in this endeavor due to the limited discretionary spending in the U.S. government budget, which heavily comprises entitlements and defense. Cutting spending often involves breaching promises made to constituencies, such as seniors reliant on Social Security, making it a politically perilous task.

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