In this episode of Gross Domestic Problem, William is joined by Romina Boccia, Director of Budget and Entitlement Policy at the Cato Institute. Romina addresses the growing fiscal crisis and argues that the United States is on a dangerous economic trajectory, with unsustainable government spending, entitlement programs, and a political system that prioritizes short-term benefits over long-term fiscal stability. She proposes a BRAC-style commission to overcome political gridlock, similar to the Base Realignment and Closure process, which would create an independent mechanism to make tough budgetary decisions. The discussion also highlights how current policies effectively transfer wealth from younger generations to older, wealthier populations, risking future economic collapse through potential currency devaluation, inflation, and reduced private sector investment. Romina emphasizes that the fiscal crisis is not a future problem, but a current reality that requires immediate, creative solutions to prevent the United States from undermining its own economic strength and global standing. Don’t miss this great conversation!
Key topics in today’s conversation include:
- Romina’s Background and Motivation (3:08)
- The Importance of Fiscal Policy and Economic Stability (9:25)
- American Exceptionalism and the Free Rider Problem (11:27)
- Why Good Fiscal Policy Lacks Political Support (15:20)
- The Limits of Political Solutions and the Need for New Approaches (18:18)
- The Simpson-Bowles Commission and Political Obstacles (20:42)
- International Examples and Constitutional Restraints (23:47)
- The Base Realignment and Closure (BRAC) Model (27:57)
- Feasibility of a BRAC-Style Fiscal Commission in the U.S. (31:49)
- Recent Attempts at Fiscal Commissions and Special Interest Opposition (35:37)
- Intergenerational Transfers and Social Security Inequities (38:51)
- Objections to Delegating Congressional Authority (42:14)
- The Growing Political Power of Older Generations (47:31)
- The Danger of Peacetime Deficits and Future Crises (51:09)
- Risks of Foreign Divestment and Treasury Auctions (55:08)
- Conclusion and Final Thoughts (1:00:04)
Gross Domestic Problem is a podcast from Millennial Debt Foundation focusing on America’s biggest financial crisis. Each episode, we break down how we got here, what happens if we don’t act, and the least painful way forward. There’s no do-nothing solution. Subscribe now at grossdomesticproblem.com and join the conversation.
