For the latest episode of my American Institute for Economic Research podcast, Econception, I talked to Tony Woodlief of the State Policy Network about how the federal government has been gradually taking over state budgets, often with state policymakers’ consent. Fiscal federalism is a major issue that will become more important as the federal government looks for solutions to ever-expanding deficits. States need to take more responsibility, both for the good of overall fiscal health and to better provide public services to taxpayers.

Next, I discuss the turmoil at the Bureau of Labor Statistics, and what the real problems and imaginary ones are. The BLS does need to modernize, but it is not politically biased, and Trump’s pick to lead the agency does not have the experience or expertise to make the necessary changes.

Then, I talk about how it’s just as easy to make a nationalist case against trade surpluses as against trade deficits. The U.S. has a trade deficit, so we’re used to hearing that version of the argument. But trade surpluses can also be critiqued on nationalist grounds. As Adam Smith said, there’s nothing more absurd than the doctrine of the balance of trade.

For the Paper of the Episode, I cheated a little and did a book, the chapters of which have been republished by the National Bureau of Economic Research as freely accessible papers online: Clashing Over Commerce: A History of U.S. Trade Policy by Douglas Irwin of Dartmouth College. It’s the most readable and comprehensive history of protectionism and free trade available.

Please listen and subscribe to Econception by clicking here.