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🚨Scott Bessent on the economy: AI will allow us to "run it hot"

July 26, 2025 / 00:51

This episode discusses the recent positive financial trends in the Treasury, including a surplus for June 2023, the impact of tariffs, and reduced spending. The conversation highlights the potential for economic growth driven by artificial intelligence, drawing parallels to the IT boom of the 1990s.

The speaker reflects on the significance of June being the first positive month for the Treasury since 2015, emphasizing the increase in revenues and the importance of managing spending effectively. This surplus is seen as a promising sign for future financial stability.

Additionally, the discussion touches on the possibility of achieving non-inflationary growth similar to that experienced during the IT boom, suggesting that advancements in AI could play a crucial role in driving this growth.

TL;DR

June 2023 marked a Treasury surplus, with discussions on AI's potential for economic growth.

Video

00:00:00
We're full speed ahead. June was the
00:00:03
first positive June for the Treasury
00:00:05
since 2015. We actually had a surplus
00:00:10
and we did that in a good way. We took
00:00:12
in more revenues, some from tariffs, and
00:00:15
we brought down spending. When I think
00:00:17
about what we can do here, what I'm
00:00:20
really excited about is the idea, you
00:00:23
know, with AI that we can go back to the
00:00:26
paradigm when I was younger in the '9s.
00:00:29
Allan Greenspan was able to run the
00:00:32
economy very hot because it was the IT
00:00:35
boom and we had this very powerful
00:00:39
non-inflationary growth and I think that
00:00:42
it's highly likely we could have that
00:00:45
now and so that kind of growth would
00:00:48
bring down the deficit very quickly.
00:00:50
Right.

Episode Highlights

  • Positive June for Treasury
    June marked the first positive month for the Treasury since 2015, achieving a surplus.
    “June was the first positive June for the Treasury since 2015.”
    @ 00m 03s
    July 26, 2025
  • Excitement for AI's Potential
    There's optimism about using AI to replicate the economic growth of the '90s.
    “I'm really excited about the idea with AI.”
    @ 00m 20s
    July 26, 2025
  • Hope for Non-Inflationary Growth
    The speaker believes we can achieve powerful non-inflationary growth again.
    “We could have non-inflationary growth again.”
    @ 00m 42s
    July 26, 2025

Episode Quotes

Key Moments

  • Surplus Achieved00:05
  • AI Excitement00:20
  • Economic Optimism00:42

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