Why economics and politics don’t mix

Guest: Alan Blinder

By all accounts, the U.S. economy is strong. But, will this strength continue? The federal budget deficit is expected to top $1 trillion by 2020 according to new projections, in large part because of the new tax cuts. There’s also the lingering threat of a trade war with China, as President Trump continues to talk of tariffs and our country’s trade deficit. Princeton professor ALAN BLINDER says these are two examples of how politics often gets in the way of sound economic policy. Blinder, a former vice-chair of the Federal Reserve, joins us to explain the interplay of politics on economic policy in his new book, Advice and Dissent, and explains the divide between economists and politicians and provides a blueprint for closing that gap.