Summer School 3: How government decides what to spend our money on

This episode of Planet Money Summer School, titled "You Are What You Pay For," delves into the complexities of the U.S. federal budget, exploring how the government decides to allocate its resources and the implications of the national debt. Robert Smith introduces Aviva Aaron Dime from the Brookings Institution to discuss the Hamilton Project and the challenges of balancing the budget. The episode replays a segment from 2017 that breaks down government spending into categories like Medicare, Medicaid, Social Security, and national defense, while also highlighting the influence of lobbyists and special interests on budget decisions. Dime explains the economic principles behind government spending, focusing on addressing market failures and redistributing income, and the concept of concentrated versus diffuse costs and benefits in political decision-making.