Rubber Meets The Road Economics: Exploring the forces shaping our economy with Professor Edwin T. Burton
Welcome to ’Rubber Meets The Road Economics,’ where investor Hunter Craig and Professor Edwin T. Burton from the University of Virginia explore the forces shaping our economy. Each episode breaks down complex economic concepts into clear, relatable insights. From globalization and technology to behavioral economics and policy impacts, we cover the topics that influence your daily life. Whether you’re an enthusiast or just curious, join us for engaging discussions that deepen your understanding of economics. Subscribe now and follow us for updates.
Episodes
Saturday Mar 01, 2025
17. The Economics of Healthcare, Debt, and Social Security
Saturday Mar 01, 2025
Saturday Mar 01, 2025
As the U.S. deficit balloons toward $2 trillion annually and total national debt surpasses $36 trillion, the financial sustainability of government spending has never been more uncertain. Economist and UVA professor Edwin Burton joins host Hunter Craig to break down the underlying economic forces shaping America’s future.
Topics Covered:
✅ The impact of rising debt and deficits on the economy
✅ How healthcare spending is driving the debt crisis
✅ The unintended consequences of government-run healthcare
✅ Social Security’s flaws and potential reforms
✅ What policymakers could learn from private insurance models
Key Takeaways:
🔹 Government-run healthcare often leads to rationing and declining quality
🔹 Social Security disproportionately benefits wealthy retirees while failing lower-income earners
🔹 The absence of competitive pricing in healthcare fuels inefficiency and waste
🔹 Policy reforms could introduce more market-driven solutions to control costs
Financial Disclaimer:
The information provided in this podcast is for educational purposes only. It does not constitute financial or investment advice. Please consult with a professional before making any financial decisions.
📩 Have thoughts on today’s episode? Share your insights and join the conversation by subscribing to The Rubber Meets the Road Economics Podcast.
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Email: rubbermeetstheroadeconomicspod@gmail.com
Friday Feb 07, 2025
16. Tariffs vs. Free Trade: Who Pays the Price?
Friday Feb 07, 2025
Friday Feb 07, 2025
In Episode 16, Tariffs are back in the news.
On February 1, 2025, the U.S. announced new tariffs on Canada and Mexico—only to delay them for 30 days. What does this mean for American businesses, workers, and consumers?
In this episode of Rubber Meets the Road Economics, Hunter Craig sits down with Professor Edwin T. Burton of the University of Virginia to discuss the broader economic implications of trade policy.
Professor Burton explains how free trade creates both winners and losers—boosting economic growth overall while disrupting certain industries. The challenge for policymakers, he argues, is not to block trade but to support those who are negatively affected. Using examples from U.S. history, he highlights why tariffs tend to raise prices for consumers, disproportionately impacting lower-income households.
The conversation also turns to the U.S. national debt, currently at $36 trillion and projected to hit $50 trillion in under a decade. Professor Burton explains why healthcare spending—not defense or Social Security—is the biggest driver of America’s debt problem and why economic reforms must address this issue first.
Finally, they discuss Social Security reform, with Professor Burton offering insights on how a defined contribution model could provide better retirement outcomes while keeping the system sustainable.
Disclaimer:
The information provided on this podcast is for educational and informational purposes only. It is not intended as financial advice and should not be relied upon as such. All opinions expressed by the hosts, guests, or participants are solely their own and do not reflect the views of any companies or organizations they may be affiliated with. We recommend consulting with a qualified financial professional before making any financial decisions. Remember, investing and financial decisions carry risks, and it is important to do your own research.
Connect With Us:
Email: rubbermeetstheroadeconomicspod@gmail.com
Key Quotes from the Episode
📢 “Free trade is actually better for everyone—if you compensate the losers.” – Prof. Edwin T. Burton
📢 “Tariffs make all of us poorer, and the people who pay the highest price are lower-income consumers.” – Prof. Edwin T. Burton
📢 “If Detroit is threatened by competition, the right answer is not tariffs—it’s helping those who lose their jobs.” – Prof. Edwin T. Burton
📢 “The U.S. debt crisis is primarily a healthcare problem. If we don’t control healthcare costs, we won’t fix the debt.” – Prof. Edwin T. Burton
📢 “Social Security is fixable. Healthcare is the real challenge.” – Prof. Edwin T. Burton
Friday Jan 31, 2025
15. Why the Fed Paused & The AI Shakeup That Rocked Markets
Friday Jan 31, 2025
Friday Jan 31, 2025
This week on Rubber Meets The Road Economics, investor Hunter Craig sits down with Professor Edwin Burton of the University of Virginia to discuss:
Why the Fed Paused Rate Hikes – The real reason behind the Fed’s decision to hold steady and why Treasury Bill yields tell us everything we need to know.
Treasury Bill Arbitrage Explained – A risk-free trade that could generate billions, if only the Fed allowed it.
AI’s Market Disruption – How three Chinese developers just upended the tech industry, and why DeepSeek might make Silicon Valley nervous.
The U.S.’s AI Spending Problem – Did American tech giants waste billions? A closer look at AI costs, market hype, and what’s next.
What To Watch Next – The yield on one- and three-month U.S. Treasury bills and what they signal for the economy.
A Must-Listen For:
* Investors tracking Fed policy and economic trends
* Tech enthusiasts curious about AI’s financial implications
* Anyone who wants a clearer understanding of economic forces shaping our world
Tune in now!
Edwin T. Burton is a Professor of Economics at the University of Virginia. He specializes in Finance and his “Theory of Financial Markets” and “Behavioral Finance” classes are among the most popular ones in the Economics Department.
Disclaimer:
The information provided in this podcast is for educational and informational purposes only. It is not intended as financial advice and should not be relied upon as such. Always consult with a qualified financial professional before making investment decisions.
Friday Jan 24, 2025
Friday Jan 24, 2025
In Episode 14 of Rubber Meets the Road Economics, Hunter Craig sits down with renowned economist Professor Edwin T. Burton to discuss pressing economic issues, including the looming threat of debt spirals, the Federal Reserve’s role in interest rate policies, and the impact of tariffs on U.S. manufacturing. They dive into the complexities of reserve currencies, tariffs, and the challenges facing the U.S. economy as it grapples with inflation and rising debt.
Key Topics Covered:
What constitutes a debt spiral and how it could impact the U.S.
The role of the U.S. dollar as a reserve currency in international trade.
The economic consequences of imposing tariffs on Canada and Mexico.
Predictions for the Federal Reserve’s upcoming interest rate decisions.
The importance of balancing economic growth and fiscal responsibility.
Connect With Us:
Email: rubbermeetstheroadeconomicspod@gmail.com
Professor Edwin T. Burton is a seasoned economist and former Wall Street executive with decades of experience analyzing economic trends. As a professor at the University of Virginia, he bridges academic knowledge and practical expertise to shed light on complex economic topics. His optimism and deep understanding of historical and modern economics make his insights invaluable to listeners.
Disclaimer:
The information provided on this podcast is for educational and informational purposes only. It is not intended as financial advice and should not be relied upon as such. All opinions expressed by the hosts, guests, or participants are solely their own and do not reflect the views of any companies or organizations they may be affiliated with. We recommend consulting a qualified financial professional before making any financial decisions. Investing and financial decisions carry risks, and it is essential to do your own research.
Friday Jan 10, 2025
13. Treasuries, Inflation, and the Fed: Economic Insights for 2025
Friday Jan 10, 2025
Friday Jan 10, 2025
In this episode of Rubber Meets the Road Economics, investor Hunter Craig sits down with the insightful Professor Edwin T. Burton of the University of Virginia to discuss the latest trends in the debt market, including the dramatic swings in U.S. Treasury yields. The conversation breaks down the complexities of supply and demand in economics, rising interest rates, and their implications on real estate and global markets.
From debunking myths about interest rate inversion to understanding the historical context of high yields, Professor Burton delivers clarity and actionable insights for investors and enthusiasts alike. Whether you’re curious about inflation’s impact on real estate or the Fed’s potential moves, this episode equips you with the knowledge to navigate the evolving economic landscape.
Topics Covered
Why U.S. Treasury yields are climbing and what that means for investors
How inflation and interest rates influence real estate valuations
The role of supply and demand in economic fluctuations
Understanding “flight to quality” during market turbulence
Historical perspective: Mortgage rates in the 1980s vs. today
About Our Guest
Professor Edwin T. Burton is a seasoned economist and former Wall Street executive with decades of experience analyzing economic trends. As a professor at the University of Virginia, he bridges academic knowledge and practical expertise to shed light on complex economic topics. His optimism and deep understanding of historical and modern economics make his insights invaluable to listeners.
Disclaimer:
The information provided on this podcast is for educational and informational purposes only. It is not intended as financial advice and should not be relied upon as such. All opinions expressed by the hosts, guests, or participants are solely their own and do not reflect the views of any companies or organizations they may be affiliated with. We recommend consulting with a qualified financial professional before making any financial decisions. Remember, investing and financial decisions carry risks, and it is important to do your own research.
Friday Jan 03, 2025
12. The Fed, Treasury Yields, and the Real Cost of Debt
Friday Jan 03, 2025
Friday Jan 03, 2025
Investor Hunter Craig sits down with Professor Edwin T. Burton to unpack the latest shifts in the economic landscape. They delve into the Federal Reserve’s recent decision to lower the federal funds rate and its ripple effects on treasury yields, interest rates, and inflation. From the complexities of short-term treasury bill markets to the pressing issues surrounding the U.S. national debt and entitlement spending, this conversation illuminates the intricate connections shaping today’s economy.
Topics Discussed:
•The Federal Reserve’s decision to lower interest rates: implications and motivations.
•The relationship between treasury yields, repo markets, and federal funds rates.
•Why short-term treasury yields are dropping while long-term yields climb.
•A detailed explanation of the “flight to quality” and its impact on bond markets.
•The growing national debt: Can the U.S. solve its deficit without addressing healthcare and Social Security?
•Insights into the private healthcare system and the inefficiencies of the current insurance model.
•Predictions for the economy, stock market, and interest rates in 2025.
More About Dr. Edwin T. Burton
Dr. Edwin T. Burton is a distinguished professor of economics at the University of Virginia, specializing in finance with a focus on behavioral finance and the theory of financial markets. He has held senior roles on Wall Street and has been a leading figure in public service as the longest-standing trustee of the Virginia Retirement System. Dr. Burton’s popular finance courses at UVA have educated thousands of students, and he continues to provide sought-after insights at high-profile events. His publications, including Behavioral Finance, underscore his expertise in understanding complex economic systems.
Key Takeaways:
•Market Dynamics: Treasury yields, repo rates, and federal funds rates are tightly interlinked, and the Federal Reserve’s influence is limited by market forces.
•Flight to Quality: Investors’ concerns over rising interest rates drive demand for short-term treasuries while pushing long-term yields higher.
•Debt and Deficits: Without addressing healthcare and Social Security reform, the national debt crisis will continue to worsen.
•Healthcare Reform: The inefficiencies in healthcare insurance and overutilization of services contribute significantly to the ballooning national debt.
•Economic Forecast: A cautious outlook for the economy, with concerns about higher interest rates and stock market performance in the near future.
Further Resources:
•Priceless by John Goodman – An in-depth look at the inefficiencies in the American healthcare system.
Disclaimer:
The information provided on this podcast is for educational and informational purposes only. It is not intended as financial advice and should not be relied upon as such. All opinions expressed by the hosts, guests, or participants are solely their own and do not reflect the views of any companies or organizations they may be affiliated with. We recommend consulting with a qualified financial professional before making any financial decisions. Remember, investing and financial decisions carry risks, and it is important to do your own research.
Connect with Us:
Have thoughts on today’s episode or questions about the economy? Email us at rubbermeetstheroadeconomicspod@gmail.com and subscribe to stay informed about future episodes!
Thursday Dec 19, 2024
11. The Economic Shift: What to Expect as Policies Change in 2025
Thursday Dec 19, 2024
Thursday Dec 19, 2024
Investor Hunter Craig sits down with Professor Edwin T. Burton from the University of Virginia to decode the complexities of current economic policies and trends. In this episode, they explore the Federal Reserve’s behavior as a follower of market trends, the implications of shifting political agendas, and emerging concerns about AI and Bitcoin as economic bubbles. Professor Burton provides an insightful take on what lies ahead for the U.S. economy in 2025, making this episode a must-listen for anyone trying to navigate the evolving financial landscape.
Key Topics Discussed
The Federal Reserve’s expected rate cut and why it’s following the Treasury bill market
How shifting political agendas from Biden to Trump could reshape key economic sectors
Economic red flags: weakening indicators and policy-driven industry changes
The potential bubble effect in AI and Bitcoin markets
Understanding money supply, inflation, and how interest rates trigger economic movement
Financial Disclaimer
The information provided on this podcast is for educational and informational purposes only. It is not intended as financial advice and should not be relied upon as such. All opinions expressed by the hosts, guests, or participants are solely their own and do not reflect the views of any companies or organizations they may be affiliated with. We recommend consulting a qualified financial professional before making any financial decisions. Remember, investing and financial decisions carry risks, and it is essential to conduct your own research.
More About Dr. Edwin T. Burton
Dr. Edwin T. Burton is a distinguished professor of economics at the University of Virginia, specializing in finance with a focus on behavioral finance and the theory of financial markets. He has held senior roles on Wall Street and has been a leading figure in public service as the longest-standing trustee of the Virginia Retirement System. Dr. Burton’s popular finance courses at UVA have educated thousands of students, and he continues to provide sought-after insights at high-profile events. His publications, including Behavioral Finance, underscore his expertise in understanding complex economic systems.
Stay Connected
Subscribe to The Rubber Meets the Road Economics Podcast to stay updated on the decisions shaping our economic future. Share your thoughts and join the conversation by emailing us at rubbermeetstheroadeconomicspod@gmail.com.
Friday Dec 06, 2024
Will the Fed Cut Interest Rates? Predictions for December 2024
Friday Dec 06, 2024
Friday Dec 06, 2024
Investor Hunter Craig sits down with Professor Edwin T. Burton from the University of Virginia to explore the forces driving today’s economic landscape. Together, they delve into the Federal Reserve’s upcoming interest rate decisions, the impact of tariffs on trade and manufacturing, and the complexities of government spending and national debt. Dr. Burton’s insights shine a light on critical economic policies and their implications for businesses, communities, and everyday citizens.
Key Topics Discussed
The Federal Reserve’s likely 25 basis point rate cut and its impact on the economy
Tariffs as a policy tool and their consequences for U.S. manufacturing
Economic disparities and strategies for community revitalization
The relationship between government spending, GDP, and the national deficit
Financial Disclaimer
The information provided on this podcast is for educational and informational purposes only. It is not intended as financial advice and should not be relied upon as such. All opinions expressed by the hosts, guests, or participants are solely their own and do not reflect the views of any companies or organizations they may be affiliated with. We recommend consulting a qualified financial professional before making any financial decisions. Remember, investing and financial decisions carry risks, and it is essential to conduct your own research.
More About Dr. Edwin T. Burton
Dr. Edwin T. Burton is a distinguished professor of economics at the University of Virginia, specializing in finance with a focus on behavioral finance and the theory of financial markets. He has held senior roles on Wall Street and has been a leading figure in public service as the longest-standing trustee of the Virginia Retirement System. Dr. Burton’s popular finance courses at UVA have educated thousands of students, and he continues to provide sought-after insights at high-profile events. His publications, including Behavioral Finance, underscore his expertise in understanding complex economic systems.
Stay Connected
Subscribe to The Rubber Meets the Road Economics podcast to gain insights into the decisions shaping our economic future.
Share your thoughts and join the conversation HERE or by emailing us at rubbermeetstheroadeconomicspod@gmail.com.
Wednesday Nov 13, 2024
America's Financial Challenges: Debt, Healthcare, and the Path Forward
Wednesday Nov 13, 2024
Wednesday Nov 13, 2024
In this episode, Hunter Craig sits down with renowned economics professor Dr. Edwin T. Burton from the University of Virginia to explore complex yet pressing issues in the U.S. economy. Together, they tackle the roots and realities of the U.S. debt crisis, the complications of the healthcare system, the limitations of Social Security, and the true impact of infrastructure spending on economic growth. Dr. Burton brings clarity to these critical topics, providing a deep dive into how economic policies shape everyday lives, as well as the constraints on solving these challenges through traditional means. From healthcare reform to Social Security alternatives, this episode digs into the policies that could change the financial future of America.
Episode Highlights:
Understanding the U.S. Debt Problem: Dr. Burton explains why simply cutting spending or raising taxes won’t fix the national debt, highlighting the challenges of high marginal tax rates and limited spending options.
Healthcare System Issues: Discussing the inherent flaws in U.S. healthcare, Dr. Burton argues for a system driven by individual accountability and market forces, where insurance is reserved for catastrophic events rather than everyday healthcare expenses.
Rethinking Social Security: With stark insights into Social Security’s financial limitations, Dr. Burton makes the case for mandatory IRAs as a sustainable alternative for Americans’ retirement, emphasizing wealth creation over entitlement payouts.
Infrastructure Spending and Economic Growth: Questioning the efficacy of government infrastructure spending, Dr. Burton outlines the pitfalls of politically-driven projects and the inadequacy of growth alone to solve systemic financial issues.
Quotes from Dr. Burton:
“People are at the breaking point with taxes—raising them won’t solve our debt crisis.”
“In the U.S., we’re spending more on healthcare than any other developed country, yet our outcomes are worse.”
“Social Security is a terrible system; it creates no wealth and leaves no legacy for one’s family.”
“You can’t drive the bus with economic growth alone—there’s a limit to how much can be government-driven.”
“Government is not very good at providing healthcare, and for those who think it is—good luck.”
Takeaways:Dr. Burton’s commentary sheds light on the foundational flaws of current U.S. economic structures, stressing the need for reform in healthcare and Social Security and cautioning against over-reliance on infrastructure spending as an economic solution. His views challenge listeners to rethink policy assumptions and envision more sustainable economic frameworks.
Disclaimer:The information provided on this podcast is for educational and informational purposes only. It is not intended as financial advice and should not be relied upon as such. All opinions expressed by the hosts, guests, or participants are solely their own and do not reflect the views of any companies or organizations they may be affiliated with. We recommend that you consult with a qualified financial professional before making any financial decisions. Remember, investing and financial decisions carry risks, and it is important to do your own research.
Stay Connected:If you enjoyed today’s episode, remember to subscribe and follow for more insights into the forces shaping our economy.
Do you have a question that you'd like Professor Burton to answer? Send us a message, and you may hear it on an upcoming Rubber Meets the Road Economics Podcast episode.
Thursday Nov 07, 2024
The Fed's Next Move: Predicting Rate Cuts and Economic Impact
Thursday Nov 07, 2024
Thursday Nov 07, 2024
In this episode of The Rubber Meets the Road Economics, investor Hunter Craig sits down with Professor Edwin T. Burton from the University of Virginia to analyze the current economic landscape and the factors driving interest rates, inflation, and U.S. debt levels. They dive into the Fed’s anticipated rate adjustments, the impact of election outcomes on Treasury yields, and a masterclass in game theory as applied to economic decision-making.
Professor Burton breaks down complex economic concepts into practical insights, exploring everything from real estate buying strategies to the famous three-door problem in game theory. If you're interested in understanding how economic policies might impact your finances, tune in for a grounded, no-nonsense perspective on the economy’s road ahead.
Key Topics Discussed
The Fed’s likely rate cut and the expected reduction in the prime rate
The relationship between short-term and long-term yields and implications for mortgages
The significance of the rising yield on the 10-year Treasury note and its ties to U.S. debt levels
Game theory applications in real estate and market behavior
Explanation of the three-door problem in probability and decision-making
Financial DisclaimerThe information provided on this podcast is for educational and informational purposes only. It is not intended as financial advice and should not be relied upon as such. All opinions expressed by the hosts, guests, or participants are solely their own and do not reflect the views of any companies or organizations they may be affiliated with. We recommend consulting a qualified financial professional before making any financial decisions. Remember, investing and financial decisions carry risks, and it is essential to conduct your own research.
More about Dr. Edwin T. Burton
Dr. Edwin T. Burton is a distinguished professor of economics at the University of Virginia, specializing in finance, with a particular focus on behavioral finance and the theory of financial markets. His academic career began in 1969, and he has held faculty positions at Cornell University and UVA since 1988. He has also been a key figure on Wall Street, holding senior roles at Smith Barney, Rothschild Financial Services, and Interstate Johnson Lane Corporation.
At UVA, Burton’s courses on finance are among the most popular in the Economics Department, where he has taught thousands of students over his career. In addition to his academic work, he has been deeply involved in public service, serving as the longest-standing trustee of the Virginia Retirement System and holding the position of chairman from 1997 to 2001.
Beyond his academic and professional contributions, Dr. Burton has authored multiple books on finance, with his latest being Behavioral Finance, published in 2014. His broad expertise makes him a sought-after speaker on economic issues, and he regularly presents at high-profile events.
UVA Arts & Sciences
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