Scott talks to Jeff Deist about the economic ramifications of the coronavirus, including both the virus itself and the government’s fiscal and monetary response. Deist certainly expects that we could be in for a severe recession, but is mainly of the view that this recession was coming soon anyway. It just took the right event to pop the bubble. Much of the ground that the country appeared to make up since the last crash, he says, has really been a reinflation by the Federal Reserve of the same old asset bubbles—and some new ones. The American economy has been overly financialized for decades, with ultra-low interest rates incentivizing companies to borrow money to fund ill-advised ventures rather than accumulating real savings and capital. A healthy economy that did save, he explains, would be able to endure a month or two of inactivity without the precipitate collapse we’re starting to see today.
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Jeff Deist is president of the Mises Institute, where he serves as a writer, public speaker, and advocate for property, markets, and civil society. He previously worked as a longtime advisor and chief of staff to Congressman Ron Paul, for whom he wrote hundreds of articles and speeches. Follow him on Twitter @jeffdeist.
This episode of the Scott Horton Show is sponsored by: NoDev NoOps NoIT, by Hussein Badakhchani; The War State, by Mike Swanson; WallStreetWindow.com; Tom Woods’ Liberty Classroom; ExpandDesigns.com/Scott; Listen and Think Audio; TheBumperSticker.com; and LibertyStickers.com.
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