Episodes

  • Why Government Infrastructure Projects Always Go Over Budget

    Why Government Infrastructure Projects Always Go Over Budget
    Jun 29 2026
    Episode 81 of Government Spending with Fexingo: Budget, Deficits, and Public Finance Explained. Lucas and Luna dig into a pernicious but little-understood reason why government infrastructure projects routinely blow their budgets: they consistently underestimate the cost of environmental mitigation and community compensation. Using the $4.5 billion overrun on California's high-speed rail as a concrete anchor, they explain how the budgeting process itself creates incentives to lowball these line items. They trace the problem from initial feasibility studies through final appropriations, comparing it to how private megaprojects handle similar risks. The episode also touches on bipartisan efforts to reform cost estimation at the Government Accountability Office, and why the 'optimism bias' in public works is baked into the political calendar. No hot takes — just the fiscal mechanics of why your tax dollars disappear into concrete and lawsuits. #GovernmentInfrastructure #BudgetOverruns #CaliforniaHighSpeedRail #PublicFinance #CostEstimation #GAO #Megaprojects #EnvironmentalMitigation #FiscalPolicy #TaxDollars #InfrastructureSpending #ProjectManagement #OptimismBias #Economics #GovernmentSpending #FexingoBusiness #BusinessPodcast #PublicWorks Keep every episode free: buymeacoffee.com/fexingo
    Show More Show Less
    8 mins
  • How Government Grants Create Dependency Loops

    How Government Grants Create Dependency Loops
    Jun 28 2026
    Episode 80 of Government Spending with Fexingo: Budget, Deficits, and Public Finance Explained. Lucas and Luna examine how government grants—especially in R&D and social services—create dependency loops that persist long after the original problem is solved. Using the Small Business Innovation Research (SBIR) program and community development block grants as case studies, they discuss why grant-funded organizations rarely wean themselves off federal money, how metrics reward continuation over outcomes, and what happens when a grant ends abruptly. The hosts also explore whether 'sunset clauses' and competitive re-bidding could break the cycle. Packed with specific data: 40% of SBIR Phase II recipients have received 5+ awards, and 60% of community development grants go to the same nonprofits year after year. A sharp, data-driven look at a hidden inefficiency in public finance. #GovernmentGrants #DependencyLoop #SBIR #PublicFinance #FederalSpending #GrantInefficiency #SunsetClauses #CommunityDevelopment #R&D #NonprofitFunding #Economics #GovernmentSpending #BudgetDeficits #PolicyReform #FexingoBusiness #BusinessPodcast #LucasAndLuna #GrantReform Keep every episode free: buymeacoffee.com/fexingo
    Show More Show Less
    8 mins
  • How Government Pension Assumptions Cost Taxpayers Billions

    How Government Pension Assumptions Cost Taxpayers Billions
    Jun 28 2026
    Episode 79 of Government Spending with Fexingo digs into a quiet time bomb: the investment return assumptions that public pension funds use to calculate their liabilities. Lucas and Luna walk through the history of how these assumptions drifted from reasonable to optimistic, focusing on CalPERS — the California Public Employees' Retirement System, which assumed 7.5 percent annual returns for years while actual returns lagged. They explain the math: a one-percentage-point drop in the assumed rate can add tens of billions to unfunded liabilities, forcing higher taxpayer contributions or benefit cuts. The episode also covers how pension funds have shifted toward riskier assets like private equity to chase those returns, creating a hidden fiscal risk. No scare tactics — just the numbers behind a problem most states are kicking down the road. A grounded look at how accounting assumptions shape real budgets. #CalPERS #PublicPensionFunds #UnfundedLiabilities #StateBudgets #PensionAccounting #ReturnAssumptions #GovernmentFinance #FiscalRisk #PrivateEquity #CaliforniaBudget #Taxpayers #PensionReform #DiscountRate #GASB #ActuarialAssumptions #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo
    Show More Show Less
    9 mins
  • Why Government Pension Funds Invest in Private Equity

    Why Government Pension Funds Invest in Private Equity
    Jun 27 2026
    Episode 78 of Government Spending with Fexingo explores why public pension funds are pouring billions into private equity, even as returns get harder to predict. Lucas and Luna break down the California Public Employees' Retirement System (CalPERS) target of 13 percent from private equity, the liquidity mismatch, and the hidden fees eating into returns. They discuss the J-curve effect, the challenge of valuing illiquid assets, and what happens when pension funds become the biggest limited partners in buyout funds. A concrete look at the $4.5 trillion public pension system and its growing reliance on opaque private markets. #GovernmentSpending #PublicFinance #Economics #PensionFunds #PrivateEquity #CalPERS #IlliquidAssets #JCurve #CarriedInterest #LiquidityRisk #PublicPensions #FeeStructures #RetirementFunding #StateBudgets #FiscalPolicy #FexingoBusiness #BusinessPodcast #GovernmentSpendingWithFexingo Keep every episode free: buymeacoffee.com/fexingo
    Show More Show Less
    10 mins
  • Why Government Bond Yields Are Actually a Tax on Future Growth

    Why Government Bond Yields Are Actually a Tax on Future Growth
    Jun 27 2026
    Episode 77 of Government Spending with Fexingo unpacks a paradox: as government bond yields rise, future economic growth gets squeezed. Lucas and Luna walk through the mechanics of how higher interest payments crowd out productive investment, using Japan's 1990s debt spiral and the US Congressional Budget Office's latest long-term projections as anchors. They explain the 'interest-to-GDP ratio' — a metric most voters have never heard of — and why a one-percentage-point rise in yields can cost more than entire discretionary programs like NASA or the National Park Service. The episode ties directly to the June 2026 interest-rate environment, where ten-year Treasury yields hover near recent highs, and asks whether the current fiscal path is sustainable without major reform. No alarmism, no partisan spin — just the arithmetic. #GovernmentBondYields #InterestPayments #CrowdingOut #FiscalSustainability #DebtToGDP #CongressionalBudgetOffice #JapanDebtSpiral #TreasuryYields #PublicFinance #BudgetDeficit #EconomicGrowth #InterestToGDP #DiscretionarySpending #NASA #NationalParkService #FexingoBusiness #BusinessPodcast #Economics Keep every episode free: buymeacoffee.com/fexingo
    Show More Show Less
    11 mins
  • Why Government Pay Lags Behind Private Sector

    Why Government Pay Lags Behind Private Sector
    Jun 26 2026
    Episode 76 of Government Spending with Fexingo digs into the persistent pay gap between public and private sector workers. Lucas and Luna anchor on a specific number: the roughly 20 percent pay penalty for federal employees in professional roles, using data from the Congressional Budget Office’s 2024 report. They explore why this gap exists — from wage compression to political constraints — and what it means for talent retention and service quality. The episode balances the headline gap with the nuance that lower-paid workers in government often do better, and discusses how state and local governments face similar squeezes. No broadsides against bureaucracy — just a specific, numbers-driven look at a structural problem that shapes every budget negotiation. #GovernmentPayGap #PublicSectorWages #PrivateSectorCompensation #FederalEmployeePay #CBOResearch #WageCompression #TalentRetention #StateGovernmentPay #LocalGovernmentPay #PublicFinance #BudgetConstraints #LaborEconomics #PayDisparity #GovernmentSpending #Economics #FexingoBusiness #BusinessPodcast #PublicPolicy Keep every episode free: buymeacoffee.com/fexingo
    Show More Show Less
    11 mins
  • Why Government Auctions Leave Money on the Table

    Why Government Auctions Leave Money on the Table
    Jun 26 2026
    Every year, governments sell everything from broadcast spectrum to drilling rights at auction — and systematically leave billions of dollars on the table. In this episode, Lucas and Luna examine why public auction design so often misfires, drawing on the disastrous 2021 UK 5G spectrum auction, where a poorly chosen format cost the Treasury an estimated £1 billion. They break down the mechanics of common auction types (English, Dutch, sealed-bid, Vickrey), explain how incumbents collude or bluff in spectrum auctions, and walk through the infamous 1990s FCC auction experiments that finally got design right. Along the way, they ask a pointed question: why do governments keep repeating the same mistakes, and what would it take to fix the process? Specific, grounded, and surprisingly dramatic. #AuctionTheory #SpectrumAuctions #GovernmentRevenue #FCC #UK5G #PublicFinance #Economics #AuctionDesign #SpectrumLicensing #Treasury #CompetitionPolicy #Regulation #Spending #FexingoBusiness #BusinessPodcast #BudgetDeficits #PublicProcurement #Efficiency Keep every episode free: buymeacoffee.com/fexingo
    Show More Show Less
    12 mins
  • Why Government Departments Pay Different Prices for the Same Drug

    Why Government Departments Pay Different Prices for the Same Drug
    Jun 25 2026
    In this episode of Government Spending with Fexingo, Lucas and Luna explore a striking inefficiency in public procurement: why different US government agencies pay wildly different prices for the same prescription drugs. Lucas walks through a 2024 GAO report showing that the Department of Veterans Affairs pays an average of $1.50 per unit for a common anti-inflammatory, while the Defense Department pays $3.10 and the Indian Health Service pays $4.80 — for the identical generic drug from the same manufacturer. The hosts drill into the root causes: fragmented purchasing authority, statutory restrictions on price negotiation, and the lack of a centralized database. They compare this to the single-payer negotiation model used by the UK's National Health Service, which pays roughly $1.00 per unit. The episode closes with a look at the bipartisan Fair Prices for Public Medicines Act, introduced in early 2026, which would create a common purchasing pool — but faces stiff opposition from pharmaceutical lobbyists and agency turf battles. #GovernmentSpending #PublicProcurement #DrugPricing #GAOReport #VeteransAffairs #DefenseDepartment #IndianHealthService #GenericDrugs #SinglePayer #NHS #FairPricesAct #PharmaceuticalLobby #AgencyTurf #Bipartisan #Economics #FexingoBusiness #BusinessPodcast #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo
    Show More Show Less
    8 mins