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.
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Monetary Policy Disagreements
- Scott Horton asks Mark Thornton about the current economic situation, particularly concerning interest rates and tariffs.
- Horton mentions Trump's preference for low interest rates and how this contrasts with Ron Paul's hard money stance.
Economic Downturn Indicators
- Mark Thornton believes the economy is showing signs of turning for the worst, citing the stock market downturn and rising gold prices.
- He suggests the Federal Reserve will likely cut interest rates in response to a potential crisis.
COVID and Economic Bubbles
- Thornton agrees with Horton's assessment of the recent economic history, including Trump's attempts to delay a crash and the impact of COVID-19 lockdowns.
- He emphasizes the inflationary nature of government intervention and the inevitability of bubbles popping.
