Capital Record

Populism seems to be the driving force of the new right's economic philosophy. The new right has said that they want to take on “libertarian” economics and “free market orthodoxy.” Others have said that “libertarian economics is the same thing as conservative economics” (i.e., laissez-faire, low tax, low regulation, etc.). David suggests the need of the hour is not just more precise definitions, but a truly robust understanding of conservative economics -- one that goes where libertarianism didn't, and goes where populism simply can't.

David takes on the idea that protectionism and globalization are chief rivals, and instead suggests that the chief rival of protectionism is free enterprise itself. He critiques Joe Nocera's recent Free Press article suggesting that the protectionists have been vindicated, and instead suggests that the entire protectionist agenda is essentially the plight of the central planner. A careful critique of the tariff dogma, combined with a non-revisionist view of what has transpired in trade and culture over the last few decades!

How One Family Aims to Break Liberals' Corporate Voting Power

As the Trump administration and Amazon/Bezos almost duked it out over the “shocking” idea of disclosing the impact to prices from taxes on imports, those of us seeking to understand economic application out of cogent economic theory were given a great chance to relearn some lessons from master himself, Friedrich Hayek. It turns out price discovery is important in economics for the same reason transparency is important in political theory -- and this ought to be a very non-partisan belief!

Veronique De Rugy's phenomenal article

If our goal is a monetary policy that minimizes interventions and distortions in the marketplace and most optimally allows capital to find its most efficient use, the last thing we should want is a Fed that is less independent and more captive to political whims and desires. David explains his various criticisms of Jerome Powell this week, but points out how we make things much worse, not better, if we believe it a good idea for the Fed to be a pawn of the president. In this case, it is counterproductive; for future precedent, it is downright dangerous.

With so much talk circulating that Americans need to be deathly afraid of a “strong dollar,” David takes on recent comments from Stephen Miran, chair of the Council of Economic Advisers, suggesting that a strong dollar is really unfair to Americans. Underlying some of these recent allegations about dollar supremacy is a familiar crisis of responsibility. It is time to set the record straight.

David talks about all the things that are right in the dichotomy between the “stock market” and the “real economy,” but then goes into all the things that are wrong – namely, that 99% of the time someone is making this distinction, they are doing it wrong, for the wrong reasons, in the wrong way. Understanding what public equity prices measure versus what broad economic data measures is a good thing, but pitting capital against labor is called “Marxism” – and it can be deadly wrong.

David looks at the wildest week in global financial markets in the last five years in the context of first principles – how the administration's choice to lump allies in with adversaries hurt their cause – and how the need to properly define terms and understand basic economic concepts matters.

David unpacks the economic message of President Trump on so-called Liberation Day.

David takes on tariffs today in advance of the big April 2 announcements everyone is expecting from the Trump administration. David's expectations? No clarity at all -- an ongoing chaos -- and a fever swamp dream for lobbyists.

Time for businesses to return to their essential purpose

"How the Right Sold Out"

David chimes in this week on the U.K. tribunal ruling that an employee was constructively terminated by having their desk moved, but more importantly, on the absurdity of the whole thing. When we ask disinterested third parties like the state to mediate disputes over furniture between employees and employers, we are doing great damage to another party not involved in chair-gate -- and that party is the subject of today's Capital Record.

Be Good Bankers: The Economic Interpretation of Matthew's Gospel, with a Fresh Translation

David makes the case that there are some arguments that are better than others for protectionist economic policy, even if none of them are persuasive, but there are none so counterproductive and misguided as merely calling your ideological opponents “globalists.” If the argument in classical economics against government intervention via protective tariffs is that they hurt American exporters, they hurt American importers, and they hurt American consumers, then the vocalizing of opposition can hardly be connected to “globalism.” For those who play this game, the intent is not to make a coherent argument at all, but to obfuscate, poison the well, and substitute innuendo in place of argument. For those who care for the American worker, we must do better.

Does one need to convert their business success to charitable endeavors to create a “lasting Kingdom legacy”? Or can we say with conviction that our efforts in the marketplace are lasting, are meaningful, and, in fact, are vitally important? David goes after a well-intentioned but deeply misguided sentiment about business vs. philanthropy, and in so doing lays out a vision for economics that gets to the heart of what this podcast is about.

David sounds off on class warfare targeted at private equity firms daring to buy 0.06 percent of homes, and how counterproductive it is to the cause of a free and virtuous society to be going after the wrong people, for the wrong things, all the time.

David wants the CFPB dismantled, and he thinks Russ Vought's philosophy at OMB about deregulation is the right one. But did Vought use a really bad example of “weaponization” this weekend, and are some bad actors bad examples for good deregulation? David unpacks this dilemma of freedom and virtuousness in a quick, needed diatribe.

This is a remedial course in how banking works, the tension between deposit rates and borrowing rates, and the way in which freedom and virtue are cultivated by true relationship banking. An episode you won't want to miss!

https://www.reuters.com/business/finance/jpmorgan-ceo-dimon-derides-in-office-work-pushback-demands-efficiency-2025-02-13/https://www.barrons.com/articles/jamie-dimon-leaked-audio-jpmorgan-return-to-office-7064ee64

LFG (Looking for gamers): CFPB wants to hear about your video game loot

It is amazing how, these days, the word “bipartisan” is always attached to Republicans doing something leftist in economic policy, and never Democrats doing something pro-market. And the bipartisanship of the Hawley-Sanders bill to cap credit card interest rates is a wonderful reason to not be yearning for bipartisanship. In this episode of Capital Record, David provides principle-based reasons for opposing this federal overreach, and it is a set of principles that have held up very well over time. A must listen!

How can we have an honest conversation about tariffs as public policy, let alone one rooted in first principles, if the conversation changes every five minutes? David uses this podcast to focus the attention where it belongs, to separate categories, and to encourage thoughtful and siloed analysis about the American worker, about tax revenue, about trade deficits, about human rights, and about negotiating tactics -- in a coherent and sensible manner. One may just find that the right policy decision on a given matter is easier to come by with good faith, logic, and conversation than bouncing around without focus or purpose.

With the RFK confirmation hearings in the news, could it be that “health and human services” is not just a story about vaccines, snack foods, and the controversy around Robert Kennedy, but is actually an economic story, with a lesson for us all about the reason people use words like “big pharma” and “big business”?

"When Engagement Works"

'Gary Stevenson claims to have been the best trader in the world. His old colleagues disagree'

David heard someone say recently, “All I do is help rich people get richer” (this person, like David, works in wealth management), and this inspired David to do this podcast on how incredibly wrong that sentiment is.

David addresses the economics of the fire disaster in Los Angeles, the public-policy ramifications, and the history of voter action in California that speaks to some of what has happened (or not happened). There is not a lot of political dunking going on here, but there is a difficult and important discussion on municipal finance and the principles by which we think about regulations, environmental stewardship, and federal aid.

David breaks down the huge challenges of what has gone on with Fannie Mae and Freddie Mac, the challenge of where things stand now, and the even bigger challenge of what to do into the future. You will be shocked to hear that he believes the solution to how guarantees are given to support the housing markets must be rooted to some first principles, and he has a few to try on for size.

David does a deep analysis of the arguments for blocking the Nippon Steel acquisition of U.S. Steel and finds them . . . lacking. He unpacks the danger in calling things a “national security threat” disingenuously, and makes the case that the big beneficiary of blocking this deal is an Asian country, but it isn't Japan.

Further reading: “Financialization and Missed Boats” 

As Capital Record completes its fourth year and logs over 200 episodes, we look to what 2025 holds: a new format, a new schedule, and a commitment to the same mission.

David is joined by his favorite, and yours, Renè Aninao of Corbu, as the last guest of 2024. All they do is discuss oil and the dollar as weapons of geopolitical interest, the Xi-Putin-Saudi trades that make sense for markets, and the way in which low-propensity young white male voters can become satisfied with the Trump 2.0 economy. Other than all that, it's just fun and games.

David is joined once again by Dan Clifton, head of policy research at Strategas Research, for a thorough discussion of what to expect in 2025 in the aftermath of the 2024 election: tariffs, trade, taxes (lots and lots of tax discussion), deficits, and so much more. We started 2024 with a huge discussion with Dan, and this new interview with him is a perfect way to begin closing out the year.

David is joined this week by our very own Dominic Pino of National Review to analyze each and every cabinet nominee from President-elect Trump related to economic policy thus far, from Energy to Commerce to Treasury and others. This leads to a discussion on higher education, bureaucracy, spending, transportation, and more. I honestly don't know what could be more fun, besides recording it, than listening to this episode.

2024 Chart Book Examines Spending, Taxes, and Deficits

David is joined again today by Michael Matheson Miller of the Acton Institute, and they continue their robust talk about what markets can do, what they cannot do, what the moral implications of these things are, and much more. The theology is thick (the corrupting impact of sin), the controversy is real (is creative destruction a “tension” or an “evolution”), and the clarity is infectious (mistakes of the moment are repudiated). As all the talks with Miller have been, this is an all-time Capital Record best!

Renewing Labor

Dr. Vance Ginn paper on illegal immigrant cost to MedicareDr. Vance Ginn paper on balancing the budget

David is joined this week by Dr. Steve Jeffery to discuss the parallel economy in depth. Pastor Jeffery's doctorate in physics from Oxford gave him a definition of “parallel” that causes him to wonder if what the “parallel economy” is all about is actually properly defined. David and Steve walk through the whole subject, discuss the priorities believers in business ought to have, and consider at a deeper level how we ought to think about those in our web of economic activity.

David is joined once again by Steve Moore of the Committee to Unleash Prosperity for a thorough discussion of what to expect out of the upcoming election, what the economic stakes are, what to expect in terms of policy, and perhaps most importantly, what to expect in terms of personnel.