The Economist Next Door

Strings Attached: How Federal Funding to States Transformed the American System

How did a once-small federal government come to control a third of state budgets and shape everyday life across the country? Host Paul Mueller talks with AIER scholars Tom Savidge and Dave Hebert about the history of federal funding to states—from the Founding through the Great Society—and how Washington gradually became the dominant force in American governance. As the saying goes, he who pays the piper calls the tune. Listen in to discover the real impact of federal dollars on state decision-making. Key Themes: * **The Piper Principle:** Why "voluntary" federal money is never actually free. * **The Identity Crisis:** How mobility and federal expansion have shifted our loyalty from state to nation. * **Legalized Money Laundering:** A deep dive into the $10,000-for-$1,000 Medicaid matching game that is bankrupting the federal treasury while subsidizing state-level expansion. Recommended Reading: * A Brief History of Federal Transfers to the States [https://aier.org/article/a-brief-history-of-federal-transfers-to-the-states/] by Thomas Savidge * Understanding Medicaid [https://aier.org/article/understanding-medicaid/] by Thomas Savidge * The Return of Quantitative Easing [https://thedailyeconomy.org/article/the-return-of-quantitative-easing/] by Paul Mueller * Defusing the Social Security Time Bomb [https://thedailyeconomy.org/article/defusing-the-social-security-time-bomb/] by Thomas Savidge * Fusionism: Past, Present, and a Conservative Liberal Future [https://aier.org/article/fusionism/] by Paul Mueller

Adam Smith at 250: Lessons on Markets, Morality, and Government

On the 250th anniversary of The Wealth of Nations, host Paul Mueller sits down with economists Dan Klein, professor at George Mason University and chief editor of Econ Journal Watch, and Eric Matson, senior research fellow at the Mercatus Center and lecturer at Catholic University, to explore Adam Smith's enduring impact. They discuss Smith as both an academic and a moral authority, the lessons of The Wealth of Nations for modern economics and public policy, the invisible hand, the limits of government intervention, and why Smith's insights on markets, human behavior, and social coordination still matter today. Along the way, the thinkers break down the real Adam Smith—not the caricature or "free-market fundamentalist" often invoked in modern debates, but a nuanced and deeply thoughtful observer of human nature and human action.

Learning Resources v. Trump: What the Supreme Court's Tariff Ruling Really Means

Host Paul Mueller interviews AIER President Dr. Sam Gregg and AIER scholar Dr. Dave Hebert on a landmark Supreme Court decision that reshapes presidential tariff authority. In Learning Resources v. Trump, the Court ruled 6–3 that the president cannot use the International Emergency Economic Powers Act (IEEPA) as a blank check to impose tariffs. Paul and his guests break down why the ruling is a win for the rule of law, explore whether tariffs are better seen as foreign policy or taxation, and explain what the "major questions doctrine" really means. They also discuss trade deficits and possible legal workarounds. Will the Supreme Court's ruling prove to be a constitutional reset or just a minor hurdle to the president's trade agenda? Listen and find out!

The SCOTUS Tariff Ruling, a Housing Crunch, and the Public Pension Time Bomb

Paul Mueller breaks down the Supreme Court's ruling limiting presidential tariff power with Tom Savidge and Julia Cartwright, and what it means for executive authority. Then, Tom, Pete Earle, and Jason Sorens dive into America's housing shortages, rising insurance costs, and exploding public pension obligations—exploring how political promises today can saddle taxpayers across generations. Debt, policy activism, and uncertainty collide—who really pays the price?

The Future of Fusionism: Liberty, Virtue, and Conservatism's Path Forward

What's driving the growing infighting on the political right? In this episode of The Economist Next Door, host Paul Mueller is joined by Nathan W. Schlueter and Nikolai Wenzel to revisit fusionism—the postwar effort, associated with Frank Meyer, to reconcile liberty and virtue, free markets and moral order, drawing on a tradition that includes Adam Smith, Edmund Burke, and Alexis de Tocqueville. They examine the Cold War roots of the libertarian–conservative alliance, the rise of post-liberalism, and current disputes over immigration, marriage, and the administrative state. Can liberty and virtue coexist? And does the American founding still offer common ground?