"Econ 102" with Noah Smith and Erik Torenberg

Why the Next Age of Globalization Will Be Awesome, a Cheaper US Dollar, and Reducing the Deficit

13 snips
Sep 26, 2023
The discussion kicks off with a deep dive into the US deficit and how public opinion shapes fiscal policies. The speakers reminisce about the austerity lessons from the 1990s, linking them to today's rising interest rates. They also examine China's shifting economic strategies and how this affects global markets. Amid the challenges, there's talk of optimism in the American economy, backed by encouraging indicators. The conversation wraps up with reflections on the future of globalization and emerging investment opportunities in South and Southeast Asia.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Austerity in the 90s

  • In the early 90s, balancing the budget was a primary concern, even for progressives.
  • This 'age of austerity' was driven by high interest rates exceeding economic growth (R > G).
ANECDOTE

Balancing the Budget

  • Noah Smith recalls supporting the balancing of the budget as a child, influenced by his parents' views.
  • Brad DeLong, Smith's co-host on Hexapodia, worked in the Clinton White House, emphasizing budget balancing.
INSIGHT

Rubin's Strategy

  • Robert Rubin, working under Clinton, advocated balancing the budget to lower long-term interest rates and stimulate the economy.
  • This strategy proved successful, as interest rates decreased and the budget was eventually balanced.
Get the Snipd Podcast app to discover more snips from this episode
Get the app