Podcast Summary: Them Before Us Podcast #069 | "Will Debt Cripple Our Children's Futures? Pro-Child Politics" featuring Phil Kirpen
Published: January 31, 2025
Host: Jenn and Katy, Them Before Us
Guest: Phil Kirpin, President of American Commitment and Committee to Unleash Prosperity
1. Introduction
In episode #069 of the Them Before Us Podcast, hosts Jenn and Katy engage in a compelling conversation with Phil Kirpin, a seasoned advocate in fiscal responsibility and American economic policy. Kirpin, who authored the chapter on debt for the Pro-Child Politics series, brings over 25 years of experience from notable organizations such as the Cato Institute, Club for Growth, Americans for Prosperity, and Free Enterprise Fund.
2. Phil Kirpin's Career and Expertise [00:00 - 05:29]
Phil Kirpin traces his extensive career in fiscal policy and advocacy, starting with his internship at the Cato Institute in 1999. He highlights his transition to Club for Growth alongside Steve Moore, aiming to infuse think tank ideas into the political arena by supporting fiscally responsible candidates. After a series of organizational changes and a Supreme Court victory in Free Enterprise Fund v. PCAOB, Kirpin joined Americans for Prosperity (AFP), where he advocated for policy development to empower activists.
In 2012, Kirpin founded American Commitment, focusing on broad economic issues and citizen engagement to influence legislation and regulatory actions. Additionally, he co-founded the Committee to Unleash Prosperity with Steve Moore, Art Laffer, Steve Forbes, and Larry Kudlow, which offers daily educational newsletters on supply-side economics.
Notable Quote:
"We try to COVID the field broadly all the economic issues, but hone in on the things that are really on the margin at any given point in time so that people can have as big an impact as possible."
— Phil Kirpin [04:15]
3. The National Debt and Its Impact on Children [05:29 - 07:50]
Jenn and Katy emphasize the chapter's focus on the national debt's long-term implications for children. Kirpin explains that a newborn today, represented by his friend's grandson Noah, is already burdened with over $78,000 in federal debt—a figure likely exceeding $80,000 as of 2023. He underscores that while the total national debt stands at approximately $35.6 trillion, about $26 trillion is held by the public, excluding intra-governmental obligations like Social Security.
Notable Quote:
"A baby right today owes over $78,000 in federal debt that he had no say in accumulating."
— Phil Kirpin [06:30]
4. Critique of Federal Spending as Economic Stimulus [08:05 - 10:11]
Kirpin challenges the widely held belief that federal spending acts as an economic stimulus. He explains that government spending is inherently funded by taxes, borrowing, or money creation, each of which removes resources from the private sector. Consequently, government expenditure often leads to inefficiency and displaces more productive private investments.
Notable Quote:
"Government spending can't make us richer because every single way the government gets the money to spend makes us poorer."
— Phil Kirpin [09:00]
5. The Misconception of Taxing the Rich as a Solution [10:11 - 15:11]
Addressing taxation, Kirpin argues that increasing taxes on the wealthy does not significantly enhance government revenue due to historical data showing minimal changes in revenue despite substantial tax rate fluctuations. He points out that higher taxes on the rich lead to avoidance, evasion, and reduced economic growth, ultimately exacerbating fiscal challenges without addressing the root issue: unchecked government spending.
Notable Quote:
"The problem is on the spending side. It's not on the revenue side."
— Phil Kirpin [13:45]
6. The Importance of Spending Restraint and Examples at State Level [15:11 - 18:55]
Kirpin highlights successful examples of fiscal restraint at the state level, notably Colorado's tax and spending limitations and Switzerland's constitutional spending caps. He advocates for hard caps on federal spending to enforce prioritization and prevent unchecked fiscal expansion, drawing parallels to successful international models that maintain sustainable economic outcomes through stringent spending controls.
Notable Quote:
"If you have a hard cap in place, then you are forced into discussions of trade-offs and prioritization."
— Phil Kirpin [17:40]
7. Potential Consequences of Inaction on National Debt [18:55 - 21:37]
Kirpin warns of dire outcomes if the U.S. continues its current fiscal trajectory. He compares potential scenarios to Greece's debt crisis, where failure to manage debt leads to economic collapse, necessitating severe austerity measures or resulting in hyperinflation. As the world's reserve currency issuer, the U.S. has more leeway, but he cautions that reliance on money printing could devalue the currency and erode economic stability, adversely affecting future generations.
Notable Quote:
"Debt disaster will visit our children... it is inevitable that there will be a reckoning of some sort at some point."
— Phil Kirpin [19:45]
8. Election Scenarios and Implications for Fiscal Policy [21:37 - 27:33]
Discussing the upcoming elections, Kirpin outlines three potential scenarios based on which party gains control:
- Divided Government: Continuation of current trends with moderate deficits but no explosive spending increases.
- Unified Democratic Control: Risk of substantial spending increases leading to high inflation and deeper deficits.
- Unified Republican Control: Optimistic scenario involves significant spending cuts and deregulation, reducing the debt burden; pessimistic outcome could involve increased defense spending without sufficient domestic cuts.
Kirpin emphasizes the importance of voter engagement and advocacy to ensure that elected officials prioritize fiscal responsibility, regardless of party control.
Notable Quote:
"We need to have some sort of a constraint to force prioritization and trade-offs and a discussion of what really is more important than something else."
— Phil Kirpin [25:10]
9. The Human Element: Stories of Impact on Future Generations [27:33 - 29:36]
Jenn and Katy reflect on the importance of humanizing fiscal issues by sharing stories of how debt and economic policies affect children and families. Kirpin concurs, highlighting the moral imperative to prevent placing an unsustainable debt burden on future generations. He urges that while addressing fiscal issues is politically challenging, the long-term benefits for children and society make it a necessary endeavor.
Notable Quote:
"It's wrong for us to do that to them when we do have the means, if we can muster the political will, to prevent that, to address it now."
— Phil Kirpin [28:00]
Conclusion
In this enlightening episode, Phil Kirpin provides a thorough analysis of the national debt's implications for America's future, particularly focusing on the welfare of children. He debunks common misconceptions about fiscal stimulus and taxing the wealthy, advocating instead for disciplined spending and structural reforms. The discussion underscores the urgent need for informed civic engagement to steer policy towards sustainable economic practices that safeguard the prosperity of future generations.
For more insights and to engage with Phil Kirpin's work, visit UnleashProsperity.com or follow him on social media as provided in the podcast notes.
Notable Resources Mentioned:
- American Commitment: [Website Link]
- Committee to Unleash Prosperity: UnleashProsperity.com
- Free Enterprise Fund v. PCAOB: [Case Details]
Episode Transcript Available Upon Request