How the Government Decides Whether a Benefit Is Worth Its Cost

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Aug 12, 2026 · 10m · transcript

The federal government pours hundreds of billions into programs that may not work. But how does it know? In this episode of The Fiscal Policy Podcast, Lucas and Luna dig into the Office of Management and Budget's cost-benefit analysis rules and the controversial use of the 'social cost of carbon' — a number that has swung from under $1 to over $200 depending on who's in charge. They explore the 2023 revisions to Circular A-4, the first major update since 2003, and what it means for everything from clean air rules to highway funding. They also look at why economists argue…