Cato Podcast Shutdowns and Shadow Dockets
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Oct 2, 2025 Joining the discussion are Jeffrey Miron, a Harvard economics lecturer and expert on fiscal policy, and Thomas A. Berry, a constitutional studies director and Supreme Court editor. They dive into the implications of government shutdowns, questioning their actual economic impacts and potential for mass layoffs. The conversation spans legal challenges around layoffs, the Supreme Court's upcoming term, and critical constitutional issues, including the administration's approach to tariffs and independent agencies. Insightful debates on reform proposals and the judicial landscape make this a must-listen!
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Shutdowns Rarely Change Big Economic Outcomes
- Government shutdowns often have limited measurable macroeconomic effects even when long.
- Short duration and political quirks make shutdowns poor tools for permanent fiscal change.
Layoffs Risk Political Backlash
- Using shutdowns to force mass layoffs may save money but risks public backlash.
- Layoffs could make small-government advocates seem heartless and harm long-term reform credibility.
Vought's Layoff Theory Is Legally Novel
- The administration's legal theory that shutdowns nullify statutory duties is legally novel and vulnerable.
- Even if legally shaky, executive action can take effect before courts unwind it, creating irreversible consequences.
