In this conversation, Douglas Holtz-Eakin discusses the pressing issues surrounding America's national debt and fiscal health. He explores the implications of government shutdowns, the role of deficits in economic growth, and the structural challenges posed by entitlement programs. Holtz-Eakin emphasizes the need for political leadership to address these issues and the importance of long-term thinking in economic policy. He also touches on the Federal Reserve's independence, the impact of tariffs, and the future of social security, providing insights into how these factors intertwine with national security and global economic dynamics takeaways America's national debt is a significant concern that has been growing for decades. Government shutdowns have minimal economic impact but highlight political dysfunction. Deficits can hinder economic growth and limit opportunities for future generations. Entitlement programs like Social Security and Medicare contribute to structural deficits. Political leadership has failed to address the looming fiscal crisis effectively. The future of Social Security is uncertain, with potential cuts looming in the next seven years. AI may improve productivity, but it won't solve fiscal issues overnight. Sovereign wealth funds are not a viable solution for the U.S. due to a lack of surplus. Tariffs raise revenue but can harm economic growth and are a regressive tax. Supply chain resilience is crucial for national security and economic stability. Chapters 00:00 Introduction to Douglas Holtz-Eakin 04:49 Government Shutdown Dynamics 07:57 Impact of Shutdown on Fiscal Health 12:49 The Deficit Dilemma 17:44 Entitlement Programs and Structural Deficits 22:46 Potential Solutions for Social Security 26:47 The Role of AI and Sovereign Wealth Funds 30:57 Tariffs and Global Supply Chain Fragility 32:15 Supply Chain Resilience Post-Pandemic 34:02 Government's Role in Supply Shortages 35:30 Long-Term Thinking in American Politics 36:51 Congressional Accountability and Military Actions 38:25 Influence of Special Interests in Politics 38:49 Understanding the Congressional Budget Office 41:54 The Future of the Dollar and Global Trade 44:40 The Federal Reserve's Independence and Its Importance 48:58 Comparing Monetary Policies: U.S. vs. Other Countries 53:54 National Security and Fiscal Policy 57:43 Bipartisan Solutions for Economic Reform Find out more about Douglas Holtz-Eakin and the American Action Forum here