How the World Recovered: The 2008 Financial Crisis Ten Years Later

Recorded on September 28, 2018 Ten years ago, the worst financial crisis since the Great Depression hit the United States and spread to other countries, including the United Kingdom. Here to discuss what happened then and where the world is now are former Federal Reserve governor Kevin Warsh and former chancellor of the exchequer George Osborne. Kevin Warsh and George Osborne discuss the 2008 financial crisis, how they dealt with it at the time, what they would have done differently, and whether the economy is headed toward another downturn. Warsh discusses how the United States failed to realize how bad the crisis was until it was already too late. The crisis had a huge impact on Europe and the United States and set off a global panic. However, within two years the economy was already growing by 2 percent and the quantitative easing used by the Fed was no longer needed as the world changed. Warsh and Osborne analyze the state of the US and UK economies today and the trade war with China. They argue that there are two ways to approach China: either try to contain it or co-opt it. Innovation and growth in the United States are necessary to prevent China from gaining more purchasing power and greater influence on the international market.  Osborne analyzes the effects Brexit could have on the single market and trade with the UK’s geographically closest trading partner, France, and airs his concerns about what Brexit means for the UK’s future. He argues that Margaret Thatcher, who helped create the single market in the EU, would never have voted to leave it. While a future financial crisis is always possible, Warsh and Osborne end on optimistic notes: that there is still room for growth in the two countries’ economies and that a better financial future for many Americans and British is still possible through good economic policies, including lower taxes and less regulation.

Om Podcasten

For more than two decades the Hoover Institution has been producing Uncommon Knowledge with Peter Robinson, a series hosted by Hoover fellow Peter Robinson as an outlet for political leaders, scholars, journalists, and today’s big thinkers to share their views with the world. Guests have included a host of famous figures, including Paul Ryan, Henry Kissinger, Antonin Scalia, Rupert Murdoch, Newt Gingrich, and Christopher Hitchens, along with Hoover fellows such as Condoleezza Rice and George Shultz. “Uncommon Knowledge takes fascinating, accomplished guests, then sits them down with me to talk about the issues of the day,” says Robinson, an author and former speechwriter for President Reagan. “Unhurried, civil, thoughtful, and informed conversation– that’s what we produce. And there isn’t all that much of it around these days.” The show started life as a television series in 1997 and is now distributed exclusively on the web over a growing network of the largest political websites and channels. To stay tuned for the latest updates on and episodes related to Uncommon Knowledge, follow us on Facebook and Twitter. For more than two decades the Hoover Institution has been producing Uncommon Knowledge with Peter Robinson, a series hosted by Hoover fellow Peter Robinson as an outlet for political leaders, scholars, journalists, and today’s big thinkers to share their views with the world. Guests have included a host of famous figures, including Paul Ryan, Henry Kissinger, Antonin Scalia, Rupert Murdoch, Newt Gingrich, and Christopher Hitchens, along with Hoover fellows such as Condoleezza Rice and George Shultz. “Uncommon Knowledge takes fascinating, accomplished guests, then sits them down with me to talk about the issues of the day,” says Robinson, an author and former speechwriter for President Reagan. “Unhurried, civil, thoughtful, and informed conversation– that’s what we produce. And there isn’t all that much of it around these days.” The show started life as a television series in 1997 and is now distributed exclusively on the web over a growing network of the largest political websites and channels. To stay tuned for the latest updates on and episodes related to Uncommon Knowledge, follow us on Facebook and Twitter.