Economics Explored host Gene Tunny speaks with David Stockman,  President Reagan’s first Office of Management and Budget director. Stockman discusses his new book, "Trump's War on Capitalism," and shares his frank and fearless commentary on the former president's economic policies. In his foreword to the book, Robert F. Kennedy Jr wrote, “Stockman has become one of the nation’s most steadfast and eloquent crusaders against the corrupt merger of state and corporate power.”

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What’s covered in EP224

• Trump and capitalism. (0:04)
• Trump's fiscal and monetary policies. (4:41)
• Government spending and lockdowns during the Trump presidency. (10:04)
• Trump's handling of the COVID-19 pandemic and its economic impact. (15:06)
• COVID-19 response and blame game. (20:05)
• US economy under Trump, job growth, and performance. (25:51)
• Economic growth and tax cuts during Trump's administration. (30:10)
• Monetary policy and inflation during Trump's presidency. (36:26)
• Corruption in US government and military spending. (41:56)
• Alan Greenspan's legacy and economic challenges. (49:54)

Takeaways

1. David Stockman argues that while Trump portrayed himself as a capitalist, his fiscal and monetary policies like large tax cuts, increased spending and pressure on the Fed to keep rates low were reckless and a threat to capitalism.
2. According to Stockman, the data shows the US economy was not in its strongest position ever pre-COVID, as Trump claimed, with key metrics like GDP growth, job growth and investment lower under Trump compared with some previous presidents.
3. Stockman believes Trump bears responsibility for the unprecedented pandemic spending and deficits, as he could have resisted lockdowns but instead endorsed huge stimulus packages.
4. Stockman views Trump as the worst president for sound money policy due to his pressure on the Fed to keep rates low.

Links relevant to the conversation

Amazon page for Trump’s War on Capitalism:

https://www.amazon.com/Trumps-War-Capitalism-David-Stockman/dp/1510779329

William Greider’s famous 1981 Atlantic article “The Education of David Stockman”:

https://www.theatlantic.com/magazine/archive/1981/12/the-education-of-david-stockman/305760/

Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. 

Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.