LAS VEGAS—Steve Forbes, CEO of the Forbes magazine and publishing company, knows the American economy has problems.
The cost of living is rising, housing affordability is an issue, as is the national debt and inflation.
Forbes says he knows who is to blame and he knows who can remedy the issues. Forbes says the best thing the government can do is to stabilize the dollar and let the free market do its work.
Forbes spoke with The Epoch Times senior editor and “American Thought Leaders” host Jan Jakielek at FreedomFest 2026 in Las Vegas on July 11.
Forbes discussed current economic issues, the role of the Federal Reserve, and how the United States should deal with the potential complications in Taiwan and Iran.
But throughout the conversation, Forbes stressed that even with its political and economic problems, the current era presents unprecedented opportunities as well as challenges.
For those seeking wisdom to guide their future decisions, Forbes pointed to the past. He reminded everyone of 1890, when the U.S. Census Bureau reported that there were no tracts of land left without settlers. This is considered the official closing of the American Frontier.
Houses undergo construction in a neighborhood in Austin, Texas, on April 17, 2025. Brandon Bell/Getty Images
“There [was] a real feeling … that we’re just going to stagnate like any other country,” Forbes said. “Turns out the frontier is the mind, not the physical land.”
According to Forbes, in 1890 and in subsequent challenges—the Great Depression of the 1930s and the 1970s’ stagflation-induced economic malaise—some were convinced that America was in permanent decline.
“We’re in one of those periods now. But a free people always finds ways to move ahead, even though times and circumstances change,” Forbes said.
And while the challenges may be formidable, Forbes says the solution is not as difficult. It just takes the will of a free people to implement.
Forbes said government spending and policies create inflation, then the government manipulates currency and interest rates in an attempt to solve the problem it created. He said the government should focus on removing regulations, taxes, and other barriers to progress in addition to providing a stable currency.
The next step is for consumers to get involved in the economic process. He acknowledged that housing costs are high. But he added that some areas are more expensive than others.
Quoting President Calvin Coolidge, Forbes said life is like a river with swift currents, and eddies and pools.
U.S. President Calvin Coolidge (1872–1933) at his desk, circa 1925. Charles Phelps Cushing/FPG/Getty Images
“His philosophy teacher at college said, ‘Get in the river of life. You may not always know where the river is going to go, but you can be part of it,’” Forbes said. “There’s no such thing as a natural resource. It’s all about human ingenuity.”
Forbes added that the government’s responsibilities also extend beyond its shores. In addition to providing stability at home, the United States has made clear it supports stability worldwide.
Such is its approach to East Asia, where the Chinese Communist Party in China seeks to impose its rule over the self-governed democracy of Taiwan.
President Lai Ching-te has said that Taiwan continues to face military threats across the East China Sea, Taiwan Strait, and South China Sea, along with gray-zone harassment.
Chinese Communist leaders have not ruled out the use of force to bring it under its control.
The United States ended formal diplomatic relations with Taiwan in 1979 but has maintained commercial and cultural relations. This includes a commitment to providing the island with the equipment and material it needs to defend itself and maintain the status quo.
A U.S. Navy minesweeping helicopter leads the way for the 12th U.S. reflagged Kuwaiti tanker convoy on Oct. 22, 1987. Norbert Schiller/AFP via Getty Images
It also committed “to maintain the capacity of the United States to resist any resort to force or other forms of coercion that would jeopardize the security, or the social or economic system, of the people on Taiwan.”
Likewise, the United States has a responsibility to maintain free navigation through the Strait of Hormuz, an international waterway, in the midst of its war with Iran.
“No turning the South China Sea into a Beijing lake. No allowing the Strait of Hormuz to have tolls. Freedom of navigation has been a hallmark of U.S. foreign policy for over 200 years. Keep it that way,” Forbes said.
Ultimately, Forbes said, even with all its challenges, the current era is an amazing time to be alive. He pointed out that a lower percentage of people live in poverty around the world.
He issued a word of caution for those who believe socialism is the answer to current economic challenges.
“Anything that’s free has a price attached to it,” Forbes said.
