Share
Cato Event Podcast
The Risks of Expanding FDIC Deposit Insurance
Since the 1930s, the federal government has used the Federal Deposit Insurance Corporation’s (FDIC) deposit insurance to justify its increased involvement in banking. Now, in the name of supporting community banks, some policymakers have proposed raising the FDIC insurance cap from $250,000 to $10 million. They claim that in the wake of the bank failures of 2023, depositors fled from small banks and moved their money to “too big to fail” institutions that enjoy implicit government backing. Increasing the FDIC insurance cap, these policymakers argue, will encourage depositors to stay with community banks.
Yet for nearly a century, Congress and the FDIC have continued to expand and increase federal involvement in banking, creating a complex web of regulation, increasing costs for consumers, and burdening American taxpayers. Despite these changes being implemented in the name of safety, a select few institutions still clamor for special protection.
The proposed expansion will magnify all these problems, making the system more fragile and less resilient, and forcing millions of Americans to bear its cost. Sadly, this latest expansion would come at a time when an incredibly small share of depositors even need additional coverage.
Join leading policy experts for a discussion on why expanding FDIC insurance is not only unnecessary but could also ultimately harm both the economy and the community banks it was designed to protect.
More episodes
View all episodes
China’s Economy and How It Matters for US Policy
01:26:57|How does China’s economy affect US policy? US policymakers have responded to perceived dangers from China by using industrial policy, export controls, and attempting to reduce supply chain vulnerabilities. Some analysts have concluded that China is developing a sizable technological capacity that poses a challenge to the US economy, and potentially constrains US foreign policy. How much leverage has the Chinese economy purchased for policymakers in Beijing? What does the ceasefire in the US-China trade war tell us about the future of US-China competition? Finally, what do these questions about China’s economy tell us about the security threat China potentially poses?Getting the answers to these questions right is essential for crafting an effective US grand strategy. This policy forum brings together two leading experts on Chinese political economy to discuss what China’s economy really looks like and what the implications are for US grand strategy.A Conversation with George White
32:19|George White, CEO of The C.M. Paula Company—an Ohio-based holding company with businesses across several industries—recently joined Scott Lincicome to discuss the impact of the Trump administration’s tariffs on several of C.M. Paula’s affiliated companies. White discussed the intricacies of managing firms with a global network of suppliers, the costs the tariffs have imposed on the companies’ operations, and the adjustments that he and his teams have made to operate amid an uncertain business environment.Buckley: The Life and the Revolution That Changed America
01:19:48|Few people exerted as profound an influence on the postwar conservative movement and the “fusionist” project of attempting to align libertarians with traditional conservatives on issues of shared interest as William F. Buckley Jr. The founder and longtime editor of National Review, Buckley hosted the weekly PBS program Firing Line, wrote a syndicated column, and authored roughly 50 books. He also found time to run for mayor of New York City in 1965. He had no real intention of winning but rather hoped to influence the terms of the debate over how the city was governed.Buckley commissioned Sam Tanenhaus to write his biography. The result is the comprehensive Buckley: The Life and the Revolution That Changed America. Please join us on Monday, November 17, a week before what would have been Buckley’s 100th birthday, for an online discussion of the book and a man who helped shape public discussion for more than five decades.