This is the Cato Daily Podcast for Friday, October 8th, 2021.

I'm Caleb Brown.

Wealth in the form of venture capital and other investment means innovation, entirely new products,

and research to drive the solutions to future problems.

And all of those ideas mean real economic growth.

Chris Edwards details how wealth drives growth in his new Cato Institute paper.

We discussed his research and

its implications for taxing and spending. Whenever I hear TV financial

reporters talking about the economy and what makes the economy move,

overwhelmingly they lean into consumer spending.

That this is the thing that makes the economy move.

And you would argue that we're underappreciating the role of investment?

That's right. There's an overwhelming Kansian bias in media reporting of the economy.

I mean, even in the Wall Street Journal, in other words, the focus is always on consumers

and where they're spending their money and the like.

But for me, the starting point of our dynamic market

economy is entrepreneurs and capital. Where is the money flowing? Where are

entrepreneurs starting companies? So I wanted to do this new report at Cato called

Wealth Fuels Growth, the role of angel investment, because I wanted to zero in on

this really crucial part of the economy, which is the flows of risk capital to

start up entrepreneurs in places like Silicon Valley, but really in every city in the

country.

...