We're only going to tax the rich and only a small amount to we're going to tax everybody and we're going to tax the daylights out of you.

Absolutely.

You know, I think these things are incremental, but it's just when it all adds up.

You're exactly right.

You know, the tax was meant to be small originally.

The first income tax was passed in 1913 in the U.S.

Prior to that, the U.S. was primarily financed by tariffs and things like property tax and so forth.

Why would a person like that say, but I want to expand my company there?

How would you characterize them?

Well, I would say, I wouldn't necessarily say irresponsibly lower, but what makes quantitative easing different is that quantitative easing was not something that was done prior to 2008.

And essentially what the Fed is doing, arguably, is to take away some of the debt management powers of treasuring.

So, you know, Treasury, when they issue new debt, they're deciding how much they want to issue in 10-year bonds versus three-month Treasury bills.

And what the Fed is doing at the same time is the Fed is deciding how much 10-year Treasury bills to take off the market, you know, versus allowed to be on the market when they're engaging in quantitative easing operation, when they buy long-term debt.

And so in a sense, you know, buying up that, you know, those 10-year government bonds is that are out there in the secondary markets and taking them off the market is you're essentially sort of undoing a debt management choice or operation of the treasury.

And so that's this sort of conflict between the Fed and Treasury that started in this period of quantitative easing.

Is that the future?

Is that fair-minded, John, to come with that generality about Kevin Warsh? Good evening to you.

Good evening, John, and thank you so much for having me.

It's an honor to be here with you.

You know, I guess just to set the stage here, Kevin, as you mentioned, really distinguished himself during the Bernanke Fed era.

And it's important to point out that he essentially was Bernanke's a conduit to Wall Street.

And particularly in a time when they were arranging what was sort of referred to as QE1, but really the lender of last resort programs that involved saving and solving banks.

This was largely Kevin leading those efforts.

Is that correct?

John, when we look at the state of capitalism or the free market in those parts of the world where there is a free market, has it gone too far?

If you compare the living standards of today to seventeen seventy-six when Smith was writing, I mean, the living standards today are unbelievable.

Modern economic growth began around this time.

People were considerably poorer on basically every margin.

Uh, life expectancy was very, very short.

This was really the dawn of economic growth and many of the things that we enjoy today.

Technology is a very big part of this.

We're seeing the global economy, which has benefited many people, hurt some as well in recent decades, fracture.