Scott Horton Show - Just the Interviews
3/7/25 Mark Thornton on the Precarious State of the American Economy
Mar 12, 2025
Mark Thornton, a senior fellow at the Mises Institute and expert in Austrian economics, discusses the precarious state of the American economy. He analyzes the interplay of interest rates and tariffs, predicting looming crises fueled by government spending during the pandemic. Thornton highlights the rise of 'zombie corporations' and the risks facing the real estate market reminiscent of the 2008 crisis. With pressing concerns about inflation and the Federal Reserve's policies, he advocates for reforms to stabilize the financial landscape.
34:48
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Quick takeaways
- Mark Thornton emphasizes the looming risks of a boom-bust cycle in the economy due to inflation and Federal Reserve policies.
- The discussion highlights the negative impacts of tariffs and regulatory changes on entrepreneurship and investment, suggesting a need for careful policymaking.
Deep dives
Current Economic Conditions and Predictions
The speaker analyzes the current state of the economy, emphasizing the potential for another boom-bust cycle driven by inflation and interest rates. There is a belief that recent trends in the stock market, particularly in technology and financial sectors, indicate underlying economic troubles. Despite a bull market since the 2008 financial crisis, the downturn in the NASDAQ and negative employment reports suggest a looming correction. The speaker predicts that if the economy deteriorates significantly, the Federal Reserve would likely respond with interest rate cuts, which could exacerbate economic issues in the long run.
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