Why Populist Policies Are Crushing Capitalism with Dr. Norbert Michel | Let People Prosper Show Ep. 153🎙️

Economic myths, government overreach, and why free markets—not central planning—pave the road to prosperity

Hello Friends!

Is capitalism really crushing the middle class—or are bad policies and worse narratives to blame?

In this episode of the Let People Prosper Show, I’m joined by Dr. Norbert Michel, vice president and director of the Cato Institute’s Center for Monetary and Fiscal Alternatives. We dig into his new book, Crushing Capitalism: How Populist Policies Are Threatening the American Dream.

Norbert pulls back the curtain on the false story of a stagnating middle class, exposes the economic harms of tariffs and industrial policy, and makes the principled case for decentralization and free-market capitalism. This is a must-listen if you’re tired of political narratives distorting economic reality and want honest solutions that let people prosper.

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🎯 Key Takeaways

1. The Middle Class Isn’t Dying—But the Narrative Won’t Die
   Norbert explains how claims about middle-class decline are based on cherry-picked data and misleading measurements. There are challenges, but prosperity has increased over the decades, and the American Dream is still alive.

2. Tariffs Are Taxes—And They're Hurting Us
   Tariffs aren’t just a political talking point; they’re a real tax on consumption and production. Norbert unpacks how these protectionist policies fail workers and consumers while stifling innovation and competition.

3. Industrial Policy Doesn’t Work
   Whether subsidies for chipmakers or green energy mandates, government attempts to pick economic winners always backfire. The result? Waste, cronyism, and stagnation.

4. What Populists Get Wrong
   Populist rhetoric often starts with legitimate concerns but ends with destructive solutions. Norbert highlights how emotional appeals to fairness and nostalgia grow government, not opportunity.

5. The Service Economy Is Not a Crisis
   Much of the shift from manufacturing to services is a feature of progress, not a flaw. As technology improves, we should expect—and embrace—economic evolution, not try to centrally plan its course.

6. The American Dream: Self-Sufficiency and Choice
   The real promise of America lies in individual agency. Norbert makes the case that defending capitalism means defending the right of every person to work, save, build, and dream—free from excessive government interference.

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Sound Bites:

• “There’s a lot of political value in bad news.”

• “Tariffs are a positive tax on economic activity.”

• “The American Dream is about self-sufficiency.”

• “We need to get back to the basics of economics.”

• “Populist policies are often solutions in search of a problem.”

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Chapters:

00:00 – Introduction to Norbert Michel and His Work
11:56 – Debunking the Stagnating Middle Class Narrative
15:00 – Political Narratives and Economic Policies
17:59 – The American Dream and Its Challenges
21:01 – The Impact of Tariffs and Subsidies
26:55 – Government Failures and Economic Policies
29:51 – Concluding Thoughts on Industrial Policies

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🔚 Final Thoughts

Capitalism isn’t the problem—it’s the scapegoat. Politicians want you to believe that markets have failed us, when the truth is that failed government policies, excessive spending, and misdirected regulation are what’s really crushing opportunity. Norbert Michel reminds us that the path to prosperity starts with economic freedom, principled policy, and a renewed commitment to letting people—not politicians—prosper.

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