Transcript
A (0:00)
The Dispatch Podcast is presented by Pacific Legal foundation, suing the government since 1973. Welcome to the Dispatch Podcast. I'm Steve Hayes. I'm joined today by Washington Post columnist Megan McCardell, a Dispatch contributor, and my Dispatch colleagues, national correspondent Kevin Williamson and Executive editor Declan Garvey. On this week's Roundtable, we'll discuss our national debt after President Trump announced a new war on fraud to be led by Vice President J.D. vance, and the president's claim from the State of the Union that he can balance the budget overnight. If we just get rid of some fraud, then the teenage dating recession. Should we worry that teenagers aren't partying in 2026 and aren't really even getting together? And finally, not worth your time are unread emails. Before we get to today's conversation, please consider becoming a member of the Dispatch. You'll unlock access to bonus podcast episodes and all of our exclusive newsletters and articles. You can sign up@thedispatch.com join and if you use the promo code Roundtable, you'll get one month free. And if ads aren't your thing, you can upgrade to a premium membership, no ads, early access to all episodes, two free gift memberships to give away, exclusive town halls with the founders, and much, much more. Let's dive. Megan, I want to start with a question to you. In his otherwise long but mostly forgettable State of the Union address on Tuesday evening, President Trump announced that J.D. vance would be leading the administration's new war on fraud, and the president, in announcing this, said he'll get it done and if we're able to find enough of that fraud, we will actually have a balanced budget overnight. I want to address this in two sort of separate but related conversations. One having to do with the debt overall, the annual deficits that we've been running that are getting worse, and then this question of fraud and how much fraud is a part of our ongoing fiscal challenges. So starting first with fraud, I think pretty much anybody you ask is going to say it's a good thing if the federal government's going after fraud. I think there's one of the reasons that people, particularly on the center right, applauded the thinking behind what led to the announcement of Doge and the goals that Doge pursued. But it's important to remind people for context that Doge started out as an effort to cut $2 trillion from the annual budgets. Then it was $1 trillion. Then it was later revised down to $150 billion was the goal. And if you look at the results of what we found from Doge, in fact, federal spending was higher every single month this year, 2025, than it had been in 2024. So while Doge, I think maybe succeeded in some ways in the overall picture, it failed. Is there any reason for us to believe that the newly launched war on fraud with General Vance will come up with different results?
B (3:35)
No. General Vance may make a valiant charge at fraud. And look, stopping fraud is good. I would argue that it's not always good. This is one of my most controversial opinions is that the optimal amount of fraud is not zero. Which is not to say the ideal amount of fraud is zero. But as with anything else, the amount you have to spend to root out the fraud matters. And there is a point at which, and I think in some ways the United States government is past that point, especially in terms of how much we nickel and dime federal employees in a desperate effort to make sure that they never ever waste a single dollar of taxpayer money, which in the abstract sounds great and in the actual doing of it means that our procurement process are insane. They are so strenuous, designed to prevent any kind of unfairness, any kind of wastage that like they take a ton of time. The canonical example of this is the multi page procedure for buying bottled water for troops or other government workers in the event that there is not potable water on site. Right. Do government employees actually need a memo to tell them when they can run to Costco? Would any other company operate this way? No, because it's insane and in fact it's costly. Right. Having to have all those procedures means things take longer. And what is one of the most expensive things you do? It is waste the time of the people that you are paying a great deal of money to do government work. So that's one issue is how are they going to go after the fraud if they are going to go after it in ways that produce net benefits for the federal government. All to the good people should not be defrauding the United States government. And if they do, they should spend a lot of time in the pokey. The second issue is, is this going to generate like trillions in savings, which is what it would take. The United States budget deficit is almost $2 trillion a year. No, most of what the government does is not fraud. It is mailing checks to people. And like there is not a lot of fraud in Social Security, there's more fraud in Medicare. But it's very hard to root out without causing people to not get their medical bills paid and die, which would be Very unpopular. Most of the budget is just stuff we spend money on. People don't want to believe that because they feel like they don't see it. And I actually wrote a column about this last week. This is especially true with healthcare is that if you think about what healthcare spending looks like, every year we get these new treatments and they're great and they're for things like, you know, in the past decade we have cured cystic fibrosis. Functionally, you have to stay on a medication for life, but you have a normal lifespan. A disease that used to kill people in their 30s, if that. We have cured hepatitis C, we have invented new immunotherapies, we have found a drug that seems to almost cure obesity. And all of those things are quite expensive. And you buy the option to use those things a little bit every year and you pay for that through your health insurance premiums. But the thing is, it's a weird kind of transaction, right? You don't know which of those conditions you're going to have. Mostly you're not gonna get cystic fibrosis, you're not gonna get hepatitis C and so forth. And so it just feels like you're spending a lot of money on nothing, right up to the point where something goes wrong. And then you desperately need whatever expensive thing the government or your private insurer has been paying for. And so there is this illusion that there must be a large sum of money in the government that does not go to some important interest group that does not go to something that people want done. And that's just not the case. If it were easy, it would already have been cut. Believe me. Republicans want to cut taxes, Democrats want to increase spending. And if there were some easy sum of money that you could find to finance those things, it would long since have been exploited.
