Does The National Debt Matter? | What's Next For The U.S. Economy

3 роки тому

With the national debt surging past $26 trillion, we asked top economists, analysts and policy makers why the deficit matters. Paul Krugman said the deficit doesn't matter too much and said instead the great danger is that America spends too little. Danielle DiMartino Booth countered by saying such a large debt puts U.S. sovereignty at risk and Congress needs to step up. Mohammed El-Erian said we need to win the war against the threat of a global depression and secure economic peace by creating lasting and effective policy. Robert Reich thought now is just not the time to worry about the national debt. Watch the video to hear more.
Many arguing against aggressive stimulus spending from the federal government cite one critical reason: the national debt. Now totaling over $26.7 trillion, the U.S. debt-to-GDP ratio is one of the highest in the world.
Top economics and policymakers, however, are not concerned.
When asked about the staggering number, Nobel laureate Esther Duflo told CNBC, “That is not something that the general public should be worried about for the time being at all.” She continued, explaining that American credit is one of the safest assets to hold, so in a sense, it is unlikely that the government will ever have to repay this debt.
AFL-CIO chief economist William Spriggs asked us to consider if the national debt is creating money for real economic activity. If so, like in an example where a company or governmental agency takes out a loan to build a factory thus creating jobs, then there should be no reason for alarm.
Former Labor Secretary Robert Reich feels now is not the time to be worried about the national debt for exactly the reason Spriggs mentions. “When you have this much unemployment, when you have this much-underutilized capacity; this is the time when the government has got to be the spender of last resort,” he said.
Although Nobel laureate Paul Krugman was not impressed with the current choices of government spending, he was not concerned with the spending itself. He said “even though we’ve been running budget deficits that are kind of stupid, if you were going to run budget deficits, you should be using the money to build infrastructure to help education, to work on the future. And instead, we’ve been using it to get big windfalls to corporations and rich people.”
When looking at instances where the government bails out private sector companies, take for example the $25 billion in payroll grants for the Airline industry, Dambisa Moyo argued for more collaboration between the private and public sectors to combat the growing size of the government.
Jim O’Neill did see the deficit as a problem in the long run and suggested solving the national debt crisis by giving the Federal Reserve a different target than low inflation. Danielle DiMartino Booth maintained that targeted government spending is necessary for economic recovery but worried that such an expanding debt could leave the U.S. vulnerable to bad actors in the long run.
Watch the video to learn more about why some economists think the national debt may not matter.
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Does The National Debt Matter? | What's Next For The U.S. Economy

КОМЕНТАРІ: 1 100

@CNBC 3 роки тому

What do you think about the national debt? Do you agree or disagree with the experts in the video? Is there someone else you’d like us to interview for What’s Next? Subscribe to CNBC and let us know what you think in the comments below.

@PebbleBeachLife 3 роки тому

You call them experts?

@stephenqumburji1168 3 роки тому

If it didn’t matter then how is going to matter now we’ll keep putting ourselves in debt till the collapse Bc the gdp with never surpass at this rate of spending

@charlesbrightman4237 3 роки тому

Consider the following: The US Fed has a goal of 2% inflation every year. But that is also 2% on all the 2%'s that came before it. That turns out to be a lot of inflation over time. And people's wages and taxes paid to the government do not keep up with the true cost of inflation. Now consider also, space travel has gotten more expensive just in my lifetime, space travel, the ONLY thing that might save any species from this Earth. What is space travel going to cost in the next 100, 1000, 1 million years from now? Economic inflation just might be a contributing factor to the demise of all life upon this Earth. And we did it to ourselves, (or more likely the FED did it to us all, including themselves, and they are supposed to be the 'smart' ones.) But here is probably how the US's ever growing national debt will be taken care of: The 6th mass extinction event has already started due to primarily natural reasons. Earth's magnetic field weakening allowing more harmful cosmic radiation to reach the surface of this Earth, and us, as well as the Earth's magnetic poles moving, and all the issues just these two items alone will cause. Rich people who have chosen to, and the US Government, the US Government doing it with tax payer's money, have been, and continue to, build safe underground bunkers and infrastructure to save their own asses while the rest of their fellow citizens would most probably die a horrible death on the surface. And many of those bunkers were built to withstand even WW3, and those bunkers are not cheap. So now, at a certain point, certain individuals will go into their safe bunkers while the rest of the population suffers and dies. Those that are left will abolish the current US Government with it's massive debt, will write a new 'improved' Constitution, and will start a new government with zero debt and the remaining world's resources at their disposal. And the abolishing the old government and setting up a new government will all be done in accordance with the US's Declaration Of Independence even. What patriots they are. But not to worry, ONLY those species who get off of this Earth, out of this solar system, and out of this galaxy might continue to survive, (if it's even actually possible to do for various reasons), everybody else, including those who hid in the safe bunkers, are still all going to die one day from something, will forget everything they ever knew and experienced, and will be forgotten one day in future eternity, just like the rest of us. I have been asked how much it would cost to do my gravity test for my theory of everything idea. My answer to them is, how much is life upon this Earth worth? Because without artificial gravity for space bases on planets and moons, (and large rotating space ships won't work for space bases on planets and moons), all human life eventually dies and goes extinct. No exceptions, debt or no debt.

@jorgeponce5512 3 роки тому

Wall St LOVES US Treasuries, because there is a chronic scarcity of safe collateral in the repo market. US Treasuries are the SAFEST collateral among all assets.

@williamlai29 3 роки тому

CNBC knows these experts are idiots! They are just wondering do WE ALL KNOW. USA have alienated the entire world thanks to the governments action + inaction. Now, the whole world is paying for their debt. Keep printing money, it won't help, what good is money when it has no value.

@mattbowdenuh 3 роки тому

I love how everyone in government is a Keynesian during a recession or crisis, but forgets the other part of Keynesian economics during growth or boom periods. You're supposed to cut spending and raise taxes during growth periods so that you can expand spending and induce demand during a recession. Without the second part, you'll never reign in any spending or debt, you'll simply be trying to stay in office every election cycle....

@travissnyder9092 3 роки тому

Ya they forget the other half of the equation.

@saberur66 3 роки тому

Wait you think those that support Keynesian economics don’t want to raise taxes?

@user-oy9zy4ds9m 3 роки тому

Because almost everyone is lazy and entitled

@Stri4ker21 3 роки тому

That is why all this new debt is not going to boost the recovery; it will likely prolong the recession. Debt is neither free nor irrelevant, as interventionists want us to believe, even if interest rates are low. More debt means less growth and a slower exit from the crisis, with lower productivity growth and a tepid employment improvement. The often repeated argument that “it would have been worse” if these bailouts and spending plans had not been implemented and that “nothing else could have been done” is easily rebuttable: the countries that will fall the least in 2020, recover first, and do so with the lowest unemployment rates are the ones that have maintained prudent spending plans, preserved the economic fabric, and address the health crisis with serious protocols. South Korea, Taiwan, Singapore, Austria, Switzerland, Sweden, Ireland, Luxemburg, the Netherlands…Many countries have not fallen into the trap of massive government spending, have delivered better health and economic results than most nations, and have done so with lower levels of interventionism.

@mephistopheles6806 2 роки тому

What would Murray Rothbard do?

@Yaxez 3 роки тому

"Don't worry peasants, we have this toootally under control.. "

@LMIMSsoi 3 роки тому

@ Yaxez - ya, that's what I heard

@Rob-fx2dw 3 роки тому

OR to put it another way. - 'Don't worry we have You nearly totally under control but the problem is some of you can actually think rather than just follow like sheep".

@stevieG2015 3 роки тому

China is rubbing it's hands together. If they didn't already own every country prior to this, they'll certainly do so by the end.

@Rob-fx2dw 3 роки тому

@@stevieG2015 I would not be surprised at that.

@Cristoteama25 3 роки тому

🇵🇷YEA YOU TING

@nolanbeardy2262 3 роки тому

IRS: "Pay your taxes or go to jail!" Government: "Do not worry about our national debt we got millions of people that pays taxes money just keep coming"

@1Deejay7 3 роки тому

Absurd right? We should be protesting the hypocrisy. Misuse of funds. Hell with this government. Time for a new one.

@eddied8262 3 роки тому

89 Alpha Why so a new corrupt government can be installed with less representation than the current one? That’s the history of communism.

@1Deejay7 3 роки тому

@@eddied8262 OK know it all, what's your better plan. Enlighten me.

@eddied8262 3 роки тому

89 Alpha Oh idk, maybe...fixing the system we have to make sure everyday people are included in on the game instead of just having nervous fits and throwing Molotov cocktails into the local Target. Also, slinging ad hominems doesn’t prove your rickety world view. Just saying.

@1Deejay7 3 роки тому

@@eddied8262 elaborate on fixing the system. Smart ass.

@justpete2748 3 роки тому

“Britain came out of the war with a debt of 250% of GDP and nothing bad happened” ... Are you mad? Rationing lasted for almost a decade afterwards - even longer than Germany. The Beatles were writing about the effect of the tax rate in the sixities and the long term effect on industries came to a head in the seventies. It was only the discovery of North Sea oil and gas that bailed the U.K. out. They didn’t finish paying WWII debt off until the mid-2000s when the country’s role in the world had been completely diminished. I don’t think that will be acceptable to most Americans. Economists need to stop thinking something is right just because it came out of their mouth.

@jarehelt 3 роки тому

The national debt enslaves us all. It is nothing less than modern serfdom

@Coolrunnings007 3 роки тому

Yo my jaw dropped when I heard that. Glad that other people see how crazy that sounds.

@deathstarwontsaveyou9892 3 роки тому

Yup taxes is the new modern day slavery. Best part is the sheeple still think the government is getting paid to "help people" hahahahahaha stupid liberals.

@ramoth777 3 роки тому

Just Pete...AMEN

@Student0Toucher 3 роки тому

Britains economy was poo poo though, Americas isn’t especially if we invest for the future

@johnmulcahy9903 3 роки тому

As long as enough people keep believing the system works then everything is peachy 😅

@jonyw8851 3 роки тому

Jer Leitoh he's talking about faith, something same as religion like god save us in the end.

@talhakaraman1259 3 роки тому

@Jer Leitoh pretty much yeah

@angelgjr1999 3 роки тому

That’s true. We have been in a debt based economy for decades, most Americans have more debt than they can manage.

@charlied8882 3 роки тому

You can’t pay off debt with debt. You can discharge it though. A system that is not broken cannot be fixed, it’s designed that way. Modern Day Slavery

@papabitcoinycriptos2761 3 роки тому

Got laid-off months ago, got a pregnant wife and a two year old kid. I'm in the brink of depression.

@austin2267 3 роки тому

Wish I could run a debt like the government, but if I did I’d be in court everyday the rest of my life

@lordrisay 3 роки тому

Just so you know debt actually is the process of making money and taxation is the destruction of money and has deflationary effect.

@lordrisay 3 роки тому

@@spectatetodebate8408 Tax money is used to pay the debt installments, as the Central bank owns majority of the debt any payments to it is the destruction if the money. Surpluses inherently have a deflationary effect unless the central bank buys more bonds from the private market to maintain inflation. Remember when the government pays the debt it is the money that was created by the central bank when it bought the debt in the private market and any payments to it is the money removed from the market and thereby destruction of the money.

@lordrisay 3 роки тому

@@spectatetodebate8408 I might not be gettinf what you are saying, it is based on how treasury bonds work and how money is created. Money creation is just the swapping of assets primarily treasury bonds from private ti the central bank. When the central bank buys these bonds they print money. Thereby creating money. Now that the central bank owns the bond when the government tries to pay their debt installments they instead of paying private players pay the central bank. So the money just flows from central bank to private market, to government bias taxation and finally back to the federal reserve where it is destroyed when the government pays its debt. Also the Central Bank is not the government but a different entity, the government creates the debt bonds and the central bank creates money by buying those bonds. Also not sure why you say inflation is a tax it is like saying tax cuts are subsidies. Kind of dishonest and ignore the purpose of maintaining inflation

@lordrisay 3 роки тому

@@spectatetodebate8408 I am not saying deflation will occur just that running a surplus has a deflationary effect but that does not determine if deflation occurs as the federal reserve can buy more debt on the market to maintain inflation. Yes if the federal reserve and the Government are the only players then deflation occurs but as there are many players the debt being payed off does not necessitate that there is deflation.

@boboho3928 3 роки тому

You could, but you must have the biggest weapons:)

@randomreverseroom867 3 роки тому

Money Printer goes brrrrrrr

@georgeemil3618 3 роки тому

And the paper shredder.

@TubersAndPotatoes 3 роки тому

With digital currency, you don't even need to print them anymore.

@Schmexy 3 роки тому

The fed keyboard goes *click tap tap*

@markanthony8249 3 роки тому

HAHAHAHAHA LOL

@henrygustav7948 3 роки тому

@@gregsteele4914 We neither print nor borrow money. Issuing treasury bonds is sort of like just giving free money to the wealthy or well off. Govt spends/creates US dollars first and foremost keystroking money into bank accounts. In order for there to be money in the economy to be taxed or used to buy treasuries that money must have been created by the federal govt first. That is the only logical order, you can't drain a pool unless you filled it up first. Govt spending = BrRrrR, Federal govt taxation = UN BrRrRrR

@csanton3946 3 роки тому

greece just entered the conversation

@nolimit6241 3 роки тому

but Greece has done nothing for its country with its debt but clinged onto the EURO, dragging France , Italy and Germany into a recession.

@larrymcdonald8084 3 роки тому

@Kyaru Momochi As a Greek this is true. Regarding turkey,we drag them cause they want to. Especially france & macron

@seannotaro473 3 роки тому

This is absolutely absurd! It does matter as the dollar loses its purchasing power as the printing press continues. Mega transformational changes are taking place.

@chiefsittingstill6061 3 роки тому

Thank goodness that there's at least one rational person on here. I'm not even going to bother watching the video, as the premise is utterly mad. How on earth can anyone believe that ballooning debts aren't an issue?

@chrissalley9468 3 роки тому

America is going to learn a painful lesson. We think we have the world fooled but the joke is on us

@Student0Toucher 3 роки тому

@@chrissalley9468 America has the most allies and is if we invest heavily in it the economy will come back roaring and especially when the transfer of wealth comes in which is soon as boomers die.

@mephistopheles6806 2 роки тому

@@Student0Toucher yes there will be the largest transfer of wealth in history.

@mickeypigknuckles 2 роки тому

…and your wages increase every year at an average rate that’s slightly greater than inflation.

@aa7raa7r10 3 роки тому

Get your story right the great Britain had to dismantle its empire because of its debts

@Rob-fx2dw 3 роки тому

Exactly But Krugman and others like Duflo don't understand that.

@LG-bd2qf 3 роки тому

And struggled economically for two decades.

@Mondrayish 3 роки тому

Look folks, it's not that complicated. 1. Fed printer go brrrr 2. Receive stimulus checks 3. Buy food and drinks 4. Repeat

@BrandonClark-StocksPassports 3 роки тому

That's the only option until vaccine or we suffer complete collapse

@Mondrayish 3 роки тому

@@BrandonClark-StocksPassports should be the only option forever, vaccine or no vaccine. Who the heck wants to waste their life working when the fed can just brrrr all our problems away?

@adeimantus4224 3 роки тому

Trade without war is wealth prosperity, war without trade is resource exhausting. Mostly people doesn't look at history that way..

@abercrombie4lyfe 3 роки тому

Uhhh... This video was about fiscal policy... Your criticism is about monetary policy.... Duuurrrr

@Mondrayish 3 роки тому

@@abercrombie4lyfe actually this video is about national debt. It's in the title of the video. Fiscal policy is about how the government decides to spend the money it has in its treasury. It's called a debt because the treasury has no money. So where does it get its money from? They issue treasury bonds. Who's buying up these bonds? The Fed. With who's money? The money that the fed is printing. Herp derp.

@reecedrystek2992 3 роки тому

Just imagine going to your financial planner and telling them I make $2,000/month and spend $3,000/month, but Paul Krugman tells me deficits don't matter and the real danger is that I'm not spending enough.

@br8745 3 роки тому

Welcome to modern monetary theory where numbers are imaginary and the rules absurd.

@seanthe100 3 роки тому

It's more like I make $2k a month, but spend $2.1k a month, but in 10 years I'll be making $3k a month.

@gmarefan 3 роки тому

@@seanthe100 US Federal Revenue 3 trillion. Spending 6.2 trillion.

@seanthe100 3 роки тому

@@gmarefan that's for one year, and is totally necessary given the precarious position we find ourselves in.

@smarkwick7814 3 роки тому

The gov has a better credit than any one person and have interest rates lower than inflation

@tonys9413 3 роки тому

Simple. The US will never payback its debt ..... not happening. As for deficit, printing money for fun.

@bluurrrppbleeepboooop4425 3 роки тому

We will pay it back in lives lost during world war 3

@DC-77 3 роки тому

Right! whos bill collector going to come get it?? lol

@aa2339 3 роки тому

D C the bill collector is also the debt creator, which sounds about right.

@Stri4ker21 3 роки тому

@Jeffcrocodile 3 роки тому

debt is fine until it isn't, there is always a tipping point. It just needs for the US to stop being the world currency and be replaced for any other currency for the debt to become a problem.

@BrandonClark-StocksPassports 3 роки тому

Which the us will never be replaced by another country in regards to currency. Not In our lifetime anyway....dont worry about it

@TheOrangeType 3 роки тому

Brandon Clark “A society grows great when old men plant trees who’s shade they will never sit in.” The Greeks knew that thousands of years ago, and we shouldn’t forget it.

@tomr6955 3 роки тому

@@BrandonClark-StocksPassports I love how there is so much alarmism in the world eg the world will end next generation etc etc our children will have no hope etc etc but financially no one ever worries. Eh, it's the next generation's problem

@raunakthakur317 3 роки тому

Scientists: Think and do Economist: Do and think

@slurpii4669 2 роки тому

Thats how economy works, sadly you can't really prove something will work until you try it, thats why its so important to learn about others' failures when studying economics

@tpop3723 3 роки тому

The debt never matters until your the one who ends up stuck paying for it 😉

@StupidBadyXD 3 роки тому

T Pop don’t worry, no one can pay it. America is already in the point of no return after 2008. Now we are just waiting to see how long other country will realize buying our USD is making them poor. America has been officially doing a Ponzi Scheme since 2008

@troyb.4101 2 роки тому

We should have those that made this debt pay for it. It was not spent on behalf of the American people.

@MalavitaOfBB 3 роки тому

They should take Dave Ramsey as a government advisor, we'll eat only rice and beans and all the debt will be paid pronto :)

@mattbowdenuh 3 роки тому

Unfortunately government debt doesn't work like your personal debt. Government spending is a large part of GDP and is the largest employer. If you choose austerity, you end up like those EU nations that had austerity forced upon them. It's a downward cycle. Gov is all about Keynesian economics during a recession, but forgets about the other part of it. During the growth periods, you cut spending and raise taxes so that you have room to expand spending during a crisis.

@ddannydaniel3340 3 роки тому

@@mattbowdenuh that is why Austrian is better cause governments are incompetent

@markyouneva7840 3 роки тому

"Does the Nat Debt Matter?" Only if you're a "fiscal conserative" and there's a Democratic President, then Yes. If there's a Republican president, then No. Blank checks to Wars and tax cuts for the ultra wealthy. Economic armageddon during COVID with tens of millions suffering, republicans: national debt.. we can't saddle our kids with debt, blah blah

@toddwerther188 3 роки тому

I'd like to create a new branch of military because I'm against big gov says the tea cultists

@scottyhaines4226 3 роки тому

I dont think it matters whose president. Theres no question the country as a whole needs to stop spending money on things that don't actually make money. A tax cut shouldn't come without a spending cut. Just like a spending increase shouldn't come without a tax increase. Otherwise we're going to be in debt out of our eyeballs for a long long time

@9876karthi 3 роки тому

As long as USD is international currency, US can print as much as they want, nobody cares. The movement the world move away from USD, it would be worst the US ever seen. When the world is going to realize that...nobody knows, no other country can just print on paper currencies...and still hold.

@scottyhaines4226 3 роки тому

@@9876karthi the US and most of the world is starting to go to a gold backed currency very slowly

@Hjernespreng 3 роки тому

@@scottyhaines4226 never happening. Gold itself is incapable of representing all value in today's ENORMOUS economies, which is why the gold standard was abandoned in the first place.

@PlayNiceFolks 3 роки тому

What I got from this: It's not a problem - another few billion in debt It's only a short term problem - multiple trillions in debt Don't worry about it - tens of trillions in debt What's next?

@Akshay-hn2cj Рік тому

Just reduce in dollar purchasing power high inflation rate nothing much🙂

@JeffersonRah 3 роки тому

Why not just print 1 million doll hairs for everyone if it isn't a problem

@deathstarwontsaveyou9892 3 роки тому

Baby boi the Republicans dont own the media. Like 80 percent of the media is libtard same with the universities. And trump will probably win by electoral vote.

@leeshepherdtrading 3 роки тому

@@deathstarwontsaveyou9892 that aged well 😂

@deathstarwontsaveyou9892 3 роки тому

@@leeshepherdtrading 🤷‍♂️

@LG-bd2qf 3 роки тому

Short answer: Yes Long answer: Yes indeed

@Danny_6Handford 3 роки тому

The answer to the question is YES! The national debt matters! I was well into my forties when I first started to learn how money is created. At first, I could not believe it. This was not what I was taught about money in my younger days. I had to earn it the old fashion way by working 8 to 12 hours a day for a paycheck. To me the most stunning realization was that modern money is created by issuing loans without having the physical money to loan but by manufacturing fake money either by printing paper money or by simply entering the digits into a bank account or computer. In other words, pretending to lend money but expecting to be paid back with money that actually exists and to add insult to injury paid back with interest. When creating money from debt was accepted as a legitimate way to do business in the free market, the flood gates were open and it was “smoke and mirrors” from that point on regardless if it was the government, the central banks or the commercial banks or even private business giving out the fake loans to create money by putting people, businesses and governments into debt. This is essentially a Ponzi scheme since more money needs to be created to continually pay off the ever increasing debt. The only chance this kind of money has of ever being paid back is if the economy is continuously growing and creating money this way is also used to force the economy to grow. Throughout history all money that was created this way eventually became worthless as a result of hyperinflation which destroyed the economy and the wealth of the nation. The idea and thinking that the economy always has to grow for humans to progress and to be successful may be the problem. Presently if the economy is not growing, it is considered a failure. This type of thinking cannot go on uninterrupted on a finite planet with finite resources. There needs to be flexibility in the system for the economy to expand and contract and for a contraction to be considered normal and not a problem. For this type of thinking to work, there needs to be some new economic models developed along with some new types of money and financial systems based on economic sustainability not on economic growth and money inflation. Presently, to create incentives to keep the economy growing, the money supply is continuously inflated by pumping more and more money into the system. This is done by promoting and creating more and more debt especially government debt which of course needs to be paid back with interest by future generations. When the economy is continuously growing, the amount of money representing the value of the economy which is the Gross Domestic Product (GDP) also has to continuously increase. As more money in the form of debt is created, the resulting growth rate in the economy and GDP becomes lower and lower as more and more debt is created. In an effort to keep the economy growing, the debt will quickly increase to more than the value of the GDP and when the debt becomes several more times than the value of the GDP, it will not be possible to ever pay back the debt and the system collapses with the value of the money going to zero. When this happens, the system is reset and the cycle is repeated. During the run up and then the reset, there will be some winners but there will be mostly losers with many casualties and war is also a possibility. This cycle has been repeating continuously throughout history from the Chinese Dynasties to the Roman Empire to Germany after World War One and to Argentine in the 21st century

@riteshshinde3092 2 роки тому

I'm actually impressed, where have you read so much about money? Please recommend some books on the current monetary system if you will, thanks.

@Danny_6Handford 2 роки тому

@@riteshshinde3092 I also learned that there is no lack of rumors and myths about government operations especially when it comes to how the nation’s money is created, managed, controlled and spent. With the explosion of easily accessible information on the internet, there has also been an explosion of information on how banking and financial systems work along with how governments, private central banks and private commercial banks create and manage money. Some good and some bad along with some interesting conspiracy theories. I also tried to list some books and link some good UKpostss on this topic but UKposts uses filters and if it does not like your comment or reply, it will not allow the comment or reply to be posted. You should be able to find them. Try some searches on the topic but as I said, there is some bad information and some conspiracy theories try to avoid these.

@riteshshinde3092 2 роки тому

@@Danny_6Handford looks like the link wasn't sent, just tell me what book to google

@Danny_6Handford 2 роки тому

@@riteshshinde3092 If you read my reply carefully, you will realize that I tried sending you the titles of some books and also some UKposts links but as I said, UKposts uses filters and is not allowing me to post the reply with the book titles and the links. There is a lot of information on the internet on this topic. Just be patient and do some research. Hope this helps.

@riteshshinde3092 2 роки тому

@@Danny_6Handford yah yt's blocking it, i got that, but just tell me some authors you know about?

@yanzx01 3 роки тому

1:51 This guy: Nothing bad happened to Britain British Empire: Am I a joke to you?

@DhrubajyotiRaja01 3 роки тому

Surely Happened but not because of their National Debt baby....

@jackjacob3095 2 роки тому

To everyone who is thinking of starting their own business, believe in yourself and never give up.Your future self will be thankful

@eastonezra2103 2 роки тому

Forex/Bitcoin trading is more profitable and a big chance to make more money nowadays.

@billiecamilla1053 2 роки тому

Yes sure, forex is a more profitable online busines.

@novaholive1290 2 роки тому

Forex? I had interest in forex trading and crypto stocks investments but was discouraged by friends and family, I was being ignorant though

@justicemissy5291 2 роки тому

I have been trading for over 7months now with no good returns rather get loss account blown

@felixfinn7477 2 роки тому

You gotta see investors scared and loose funds due to ignorance

@xGaLoSx 3 роки тому

More debt we have the more interest we need to pay! That means less of our tax dollars being useful!

@ACantu-de8pg 3 роки тому

The US is unable to pay the interest on the national debt from collected taxes alone. So what do they do instead? They pay their creditors by printing money and using that to pay them. What does this mean for you and me? Your money is worth less then it would if they weren't printing money. So yeah, it's kind of a big deal.

@shelleybrown9307 3 роки тому

The rich stay rich by investing like and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich

@tonywest3114 3 роки тому

Well said👏 You are right, investing is the key

@noahrichards1309 3 роки тому

Well that's generally true its concerning that several of the richest most successful investors are sitting on the sidelines right now and waiting for a better entry point

@jennifercooper4692 3 роки тому

So true lol, it doesn't make sense

@jesserodriguez5312 3 роки тому

It be said a little simpler, if you want to be rich then focus on saving and investing, if you want to be poor then focus on spending

@rubiojimenez9611 3 роки тому

Already invested in stocks and I cant really get a good returns from it

@LolLol-zr9jc 3 роки тому

“Nothing bad happened to Britain”, they lost their empire, I think that was good that they did. But it shows they were struggling

@lalalalalala4870 2 роки тому

They did not lose their colonies because of debt you idiot, I guess you have never heard about the rise of nationalism throughout the world especially after the world wars in the global south.

@RehanRC 3 роки тому

Before the real estate crash: Don't worry about the debt.

@1rjona 3 роки тому

UK had 200% debt to gdp and nothing bad happened? Like before that they were an empire and after they were a small country on the fringe of Europe

@seanthe100 3 роки тому

Lmfao the fringe of Europe

@silverdime6278 3 роки тому

Look at canada

@silverdime6278 3 роки тому

India

@etbuch4873 3 роки тому

What's the point you are driving at?

@1rjona 3 роки тому

@@etbuch4873 that huge debts caused a decline of the British empire

@brentsrx7 3 роки тому

The UK never fully recovered from WW2. The empire was completely wiped out.

@eeriewaffle3938 3 роки тому

WE SPEND MORE MONEY ON INTEREST PAYMENTS THAN WE DO ON THE MILITARY....... Enough said......

@eddiekulp1241 3 роки тому

When the debt gets to the point where it cant even be serviced it occured to me that most will be owed to people that are dead , problem solved

@drew123saulpaul 3 роки тому

All of the experts are dead wrong. Debt will matter a lot.

@dexterdextrow7248 3 роки тому

I mean,whether it'll be a problem or not pretty much entirely depend on if continuous growth can be maintained or not. That's very hard to predict though.

@Hal9grand 3 роки тому

We have 26 trillion reasons why America not taking care of America first, did not work.

@naif8493 3 роки тому

It’s when consumer market is down, innovation is decreasing that government debt holders will demand their money back. But that won’t happen any time soon.

@AK88. 3 роки тому

According to the big wigs innovation slowing is expected to be a permanent trend as technology reaches an apex.

@StupidBadyXD 3 роки тому

Well, we are alright in the road of no return. They just lie to ourselves that is okay to have debt.

@SamVillano 3 роки тому

A quality video. Thank you.

@pengfei1394 3 роки тому

If it’s not important, the people don’t have to go to work, and the government can issue money directly.

@Glenacus 2 роки тому

you cant compare a company taking a loan and buying a factory and a government taking a loan and buying some schools computers. If the company cant pay its bills, the factory can be seized and sold to recoup that loss to the lender. How are you going to seize property from the government........what happens is massive inflation then everything suffers

@FinancialShinanigan 3 роки тому

Inflations eat away at the value of money so debt in the future is going to be worth way less than debt now. Politicians won't want to lower the debt because it'll make them unpopular and why do it when it'll be so much cheaper to pay off in the future anyway?

@br8745 3 роки тому

The Weimar Republic would like to have a word with you. Making debt cheaper to pay also means annihilating any way for your citizens to save money or build wealth. You're just cheapening your own currency at that point, which has repercussions.

@dannguyen3645 3 роки тому

yeah, if the US dollars when down, the China yuans gonna be the new world money. And the debt gonna convert from dollar to yuan, and our debt will be in yuan. We always forget history, look at Germany.

@seanthe100 3 роки тому

@@dannguyen3645 China? Who wants Chinese money they're 7% of the world reserves while US is 83%.

@nickl5658 3 роки тому

Tris is why lenders charge interest. The US now spends $300bn in interest payments alone. That is 10% of the US budget goes to interest payments, not to repayments of the principle. Just paying the interest. That portion of the budget gets bigger each year. There will come a day when nearly all the US budget is used to pay interest.

@dannguyen3645 3 роки тому

@@seanthe100 well if rhe dollar worthless, chinese yuan will be considered. Since a lot of investor invested in China. or maybe Euro if you dislike China

@kapildevtiwari730 3 роки тому

A Person or Country should Never have Debt. Be Free of Debt. A Government is an Administration to Manage it's Country with its own Resources. A Government should never take Debt, Otherwise it becomes a Business Losing its Services to People. A Person should Live off Luxury saving Money.

@casienwhey 2 роки тому

What gets left out of this conversation is the question of morality. It's immoral to live beyond your means and then expect the next generation to pay for your lifestyle. Consider it personally, would you buy expensive things that you could not afford and then hand the bill to your kids?

@NathanielMiller 3 роки тому

If "debt interest" were a cabinet-level department, it would be the second-largest department in the government. In FY 2019, interest on the debt was ~$570B; only the department of defense was larger, at $710B. We spent more in debt interest in FY 2019 than Medicaid, by nearly half, and it's not far behind Medicare.

@davidbetancourt428 3 роки тому

Your fooling yourself if you think we're not already doing MMT for the rich and corporates. We might as well do UBI and lower human suffering for the 99%.

@jascrandom9855 3 роки тому

UBI + Land Value Taxation as single tax.

@angelgjr1999 3 роки тому

DAVID BETANCOURT Yup. They little 1,200 dollars we got for closing the economy for months is nothing compared to the trillions of dollars that went to bail out billionaires.

@davidbetancourt428 3 роки тому

@The Billionaire Club Where do we get money for corporations and for huge tax breaks for the rich? The money already exist.. google data is the new oil

@reecedrystek2992 3 роки тому

@@davidbetancourt428 Hmm, I really can't tell if you are serious. We got the money from the corporations in the first place. Me taking $10 from you and then giving $10 back to you is not me giving you $10. It's me not taking your ten dollars in the first place. It's the semantic trick to justify forceful redistribution of wealth.

@darkwarrior7356 3 роки тому

@@jascrandom9855 based and neolibpilled

@agisler87 3 роки тому

Paul krugman and Robert Reich are jokes.

@xtrailz 3 роки тому

There will always be some kind of calamity. There will always be a reason to print and spend.

@figuringitout9956 3 роки тому

My wife and I are always taking about this exact topic. Such a helpful video.

@pokerpaul1000 3 роки тому

so, there is no problem. just keep on printing. doesnt matter. very clever people said so. who am i to argue with nobelprizewinners ey. so, now a cold beer in our lovely garden

@mab1ism 3 роки тому

@Austin Duke inflation is on the rise

@mab1ism 3 роки тому

@Austin Duke It's on the rise because its .3 percent higher than last year. It's not complicated.

@mab1ism 3 роки тому

@Austin Duke www.google.com/search?q=current+inflation&oq=current+inflation&aqs=chrome..69i57.5976j0j4&client=ms-android-mpcs-us-revc&sourceid=chrome-mobile&ie=UTF-8#imgrc=_ It's higher than last year. Who cares anyways. Just keep printing. You'll see inflation rates go up very soon. You can keep your hands out though uncle Sam will print more money for you.

@mab1ism 3 роки тому

@Austin Duke you're just a know it all college student trying to get a handout.

@mab1ism 3 роки тому

@Austin Duke inflation is on the rise. You're wrong.

@user-tb6qr7cu4z 3 роки тому

I think this pandemic has taught people the importance of multiple streams of income unfortunately having a job doesn't mean security. So l really appreciate your transparency and giving people a Fighting chance during these troubling times

@user-lu6yg3vk9z 3 роки тому

Your right job security never existed. All employee are disposable and replaceable. Never rely on a job.

@johnybravo5667 3 роки тому

How these 'experts' that claim debt is cool get Nobel award is beyond me.

@rickdalesandro1109 3 роки тому

It's not just the debt, but that the debt is not being used for any productive means. When you put solar panels in a cave or wind turbines underwater it does nothing for the economy except inflate the price for actual essential goods. Copper, lumber, oil, food, etc are up between 30 & 100 % in the last 3 months.

@dakattack8900 3 роки тому

*sees Reich "Ew why?" *see Krugman *puts gun to head You've got to be kidding...

@LolLol-zr9jc 3 роки тому

Lol ik

@spookylight16 3 роки тому

I really believe sometimes Paul krugman is a professional troll.. just blabbing about non sense

3 роки тому

Talk about the TOTAL DEBT= $82 TRILLION. Or the UNFUNDED LIABILITY= $154 TRILLION. But since you dont, you can print until theyre aware of the true debt. By that time its too late to do anything but default, crash, and collapse.

@RandomUser20130101 3 роки тому

CNBC made a video last year (3/4/2019) interviewing Stephanie Kelton, a Bernie Sanders advisor and an advocate of Modern Monetary Theory. MMT basically says: don't worry about the national debt unless inflation starts to rise. The primary proof that MMT folks cite is Japan, which has a huge amount of debt relative to GDP, but inflation has not been a problem for them. I recommend everyone watch that video.

@enigma194 3 роки тому

Do they mention their high suicide rates? And declining birth rates

@RandomUser20130101 3 роки тому

@@enigma194 What does that have to do with Japan's economy?

@larrymcdonald8084 3 роки тому

@@RandomUser20130101 Without seeing it, I guess they forget to mention the part where the 13T$ debt of Japan is 99% held by Japanese citizens & Japanese banks as trustees and dates back to the 1980s Japan's asset bubble gum.They did in order to inflate the economy.In comparison,U.S. debt is issued in the form of bonds, which are primarily bought by the Fed,and then International banks & treasuries of foreign countries. China alone,has 1.5T$ of U.S. debt in its storage as safeties,if they release just a quarter of it, USD will be instantly devalued leading to rising interest rates.

@jaym2111 3 роки тому

finish my sentence- "if it sounds too good to be true, __ ______ __."

@tomr6955 3 роки тому

.. Just get the Fed to print

@leeshepherdtrading 3 роки тому

Keep printing

@yeavevosucks 3 роки тому

“Britain came out of World War II with 250% Debt/GDP nothing bad happened” except the entire collapse of their economic and political hegemony and dissolution of their empire and social order.

@kentheengineer592 3 роки тому

let me ask you this question what limits the ability of the federal government and state governments to pay back the national debt any guesses? legislation and business models by industry make more laws to bring in more business to provide people jobs to meet there ends meet. But then someone will need to address a number of other problems that need solving before any budget process can be approved.

@GlennTXstate10 3 роки тому

Everyone had interesting takes but Dambisa Moyo's comments were the most impactful to me. Growing governments, decrease in corporations, movement to a more oligarchy type economy which reduces competition. I'd be curious if there is a correlation to increase in government and oligarchy type markets and the decrease in corporations. Government employees and politicians want more reach to secure their jobs and income and the top companies in their markets lobby and donate to politicians for favorable laws and regulations for them that inevitably create higher barriers to entry for new companies into their market.

@snakyjake9 3 роки тому

"Something something Big government something something central bank something something corporations that grow around it" - (definitely not paraphrased) Thomas Jefferson

@BillyBob-bo9tn 3 роки тому

Just keep printing money. I guess it really does grow on trees!

@jaym9846 3 роки тому

> Does Debt Matter? No! That is why we should let citizens print trillions (not just the government's FED).

@joelhunt1803 2 роки тому

You may never pay your house off. The debt is picked up by new owners. If all our gov debt was paid off in ten years I think the inflation would be bearable.

@richardzimmermann9372 3 роки тому

„Britain came out of WW2 with 250% debt to GDP and nothing bad happened.“ - Krugman. Well, they were broke and lost their empire and became a second rate power and had low growth.

@seanowens1006 3 роки тому

Keep printing that cash!- we can pay for everyone's health care, college, housing. And heck throw in a free trip to Hawaii for eveyone while we're at it. That is thebeauty of having credit card, you can just put it all on the tab!

@trentd2152 3 роки тому

Key word is printed on our beloved fiat currency: "Trust"

@Luis-xr6ec 3 роки тому

I stoped caring about my debt ... the brilliant experts told me so.

@lolhs96 3 роки тому

Debt is supposed to be used during crises, but it was too high even before the Great Recession. The US economy is sustained by constant deficit which is unsustainable. Much of the added wealth that justified the debt bolstered finance and technology sectors while leaving ‘real’ sectors to stagnant, keeping the majority of citizens in stagnant or lesser living conditions. Now, when debt is really needed, the thought of ever paying it back in full is unreasonable. The reason debt is not an issue for the foreseeable future is because noone is going to recall their debt. The dollar and us debt are assets held by nations and central banks, so if a dollar crisis happened it would diminish world assets, sending the whole world into a crisis. Its a delicate balancing game of belief in the continuation of US growth and printing presses. US debt is ‘AAA’ only because it has to be.

@gj8550 3 роки тому

The national debt doesn’t matter as long as other countries continue to have confidence in value of the USD. However, the recent ramped up of national debt has created anxiety amongst some countries, notably China and Russia. Both have reduced their holdings, with China announcing that they would continue to shed theirs. What if other countries follow suit?

@XOPOIIIO 3 роки тому

It's okay to rise debt, there's no tomorrow anyway.

@derekmcdaniel6029 3 роки тому

@@easyflowjoe875 easyflow joe is a POS

@georgeemil3618 3 роки тому

Imagine going to a basketball game in which the score is capped at a maximum number of baskets because the NBA is worried about its points deficit. For every basket made, those points DO come out of thin air.

@APennyPinchersGuide 3 роки тому

While there is no shortcut to paying down debt. You can be more efficient by putting extra payments towards the principle and not just the next monthly payment

@leizylromero 3 роки тому

When debt is used as a tool to stimulate the economy it becomes an investment. Investors leverage stocks all the time in hopes of creating a greater a return. Just as long as the money is used to keep the economy moving or even help it grow I don’t think we should be worried about it. If the cards are played right, the national debt has the potential to decrease. I think we’ll start running into issues if we stay stagnant and don’t use the debt to help keep the economy moving. There should be a balance, if the money is being spent frivolously and there’s no economic return (or stabilization), that’s not good for the economy either because it will lead to inflation. Money and debt is a tool. If a tool isn’t being used, it becomes useless. If the tool is used incorrectly it can lead to a burdensome outcome. I have a bachelor’s in economics so I understand the basics but this is a complex issue. Action needs to happen because my generation and future generations will have to face the consequences which is why I have a vested interest on this topic. Thanks for posting videos like this! 🤓

@VictorMartinez-zf6dt 2 роки тому

Except government has no money of its own, cannot create wealth through investment only redistribute it at best and cost us in the future at worst.

@AdaptableAutonomousHouse 3 роки тому

Welcome to post-monetary world!

@spoonbred 2 роки тому

It's not their problem, it's YOUR PROBLEM because they've made you the one responsible for paying it back...

@afederdk 3 роки тому

So much public debt, so little agreement on what it actually ultimately means.

@bengreen5512 3 роки тому

I just got into bitcoin trading and I made my first profit, wish I knew about this earlier

@willycoldberg7076 3 роки тому

For real bitcoin is a life changing business

@christopherjason517 3 роки тому

EXACTLY..the world is now aware of bitcoin

@mullerjackson8614 3 роки тому

Investing in bitcoin now should be at the top of every wise individuals list

@michaeldrake6489 3 роки тому

You are right the market is profiting if you are really a good broker or account manager 😄😄

@colejammy6743 3 роки тому

Bitcoin is the future it's really a big chance to make money

@roshanbaig2 2 роки тому

$30T !

@georgeemil3618 3 роки тому

As long as 1) you're legally the sole issuer of your sovereign currency; 2) you borrow only in your currency; and you tax back only in your currency then "no" the debt doesn't matter because the deficit is only a number indicating the value you are supporting the economy- like a balance sheet, assets equal liabilities. Zero deficit and debt will collapse your economy.

@snakyjake9 3 роки тому

What happens when taxpayer dollars can no longer service the debt? What happens when we no longer hold reserve currency status? What happens when everyone subscribes to MMT and the currency is hyperinflated? What happens when we reach a tipping point of inflating asset prices to the point of mass homelessness and another French Revolution? What happens when all savings and reserve capital that we've been discouraging for decades dries up completely?

@georgeemil3618 3 роки тому

@@snakyjake9 1) There is no debt. Taxpayers dollars aren't used to service any debt. They are used to control inflation. A country can't start an economy if its central government doesn't hand out money first. The NBA doesn't run out of points as long as each team continues to earn them. 2) Doesn't matter. There are lots of countries like the UK, Canada, Australia, China, Japan, who have their own sovereign currency, high levels of what you call debt and aren't reserve currencies. 3)MMT monitors inflation by controlling the money supply through taxation. BTW, hyperinflation won't be achieved as long as the superrich continues to hoard all the money taking it out of the economy and storing it in overseas accounts. This sort of practice creates a shortage of money. 4) Before the tipping point is reached, more money has to be replenished back into the economy to balance what the superrich has removed. This is what is required during recessions when the problem is lack of money. 5) As Alan Greenspan has said "The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default".

@ChalrieD 3 роки тому

Don’t worry about debt but we also need to report inflation in a more honest and defined way.

@Jessica-mp4is 2 роки тому

in a few months or no time people we definitely be kicking themselves regret for missing the opportunity to buy or invest in cryptocurrency..

@isahjames5666 2 роки тому

I'm making a whole lot of profit off trading stock. at the same time, I'd like to invest in forex and Bitcoin as i heard it's really happening

@Hus43 2 роки тому

how do I get a professional broker to trade for me, i have been trading on my own and blowing up my account?

@susan957 2 роки тому

thanks for all this opportunity when I get home!!!

@ahmednjidda1728 2 роки тому

he's good and guaranteed working, with him you get see forex trading from another angle.

@luciler.anderson2531 2 роки тому

can I start with $20,000? I'm a newbie and I want to see how it works?

@LMIMSsoi 3 роки тому

wow, after watching this = debt is cool, all the cool kids have some.

@jonyfrany1319 3 роки тому

Why didn’t anyone mentioned we don’t even need the money printer ?

@yay-cat 3 роки тому

what is the relationship between inflation, the debt, and interest rates? As I understand it the debt is fine as long as it’s payable but it’s only payable if interest rates are low - but controlling interest rates is a useful tool for controlling inflation etc? So then having the debt means you have one less tool to steer the economy which would be bad. I appreciate the explanations that debt can be good if it’s generating more return than the cost of the interest but is that the case or is America just getting a new credit card to pay off an old credit card and maybe a few presents for friends along the way?

@snakyjake9 3 роки тому

The problem with the "it's okay to have debt as long as we invest it properly" argument is that government doesn't invest in / subsidize smart investment. - we bail out financial institutions that acted wrecklessly with mortgages - we maintain a global empire that subsidizes everyone else's trade, even though we as a country haven't needed to for decades - we maintain a broken healthcare system - we send too many kids to college for BS degrees with no chance of them paying it off - we maintain a broken ponzi scheme retirement program that won't be solvent in another decade or so The same people who have been spending recklessly for decades now have the gall to say that because of covid, it would be irresponsible to focus on cutting deficits now. Problem is, they will NEVER be concerned with deficits until it is far too late.

@snakyjake9 3 роки тому

Not to mention, the leading inflation figures are total BS. The inflation has been channeled into propping up equities, real estate, and higher education. With more general cash handouts, we will see the prices of everything else start to catch up.

@beanseason6515 3 роки тому

So just print more money, who cares but can u print me a million too pls

@mosieldest3111 3 роки тому

not how it works but ok

@beanseason6515 3 роки тому

@@mosieldest3111 no they said it no more national debt means we're millionaires now. We're all getting checks

@anthonyb9226 3 роки тому

Yeah just get one side of a argument huh? Typical

@StrongbyLee 3 роки тому

You clearly didn't watch the whole video. 🙄

@masteryoda5150 3 роки тому

@@StrongbyLee Robert Mugabe would like to know your location

@justworkingfortheweekend8504 3 роки тому

Does famous bands in America need to do benefit concerts where the money goes to paying the debt

@thisisgame 3 роки тому

Massive amounts of debt will lead to inflation which is theft. It will also lead to higher taxes which is also theft.

@zacbow8439 3 роки тому

So much inflation took place after the great recession stimulus was passed and executed....

@derekmcdaniel6029 3 роки тому

Inflation is not theft. Every business is free to choose to accept money or not. No one is forcing you to use dollars. You could start a business and only accept gold or bitcoin or trade. You would still owe taxes, but you wouldn't have to accept or save money besides that amount of taxes.

@toddwerther188 3 роки тому

Never seems to matter under a republican, however as soon as a dem is elected FREAK OUT TEA TIME

@kitaroworld 3 роки тому

THESE CLOWNS DON'T KNOW WHAT THEY'RE TALKING ABOUT

@leeshepherdtrading 3 роки тому

If in doubt, get the printer out. 😂

@gmarefan 3 роки тому

Are interest rates going to stay low forever?

@stevenbruce4143 3 роки тому

Seriously wishing we discover intelligent life somewhere else. Its definetly not these economists here.

@PopsGG 3 роки тому

Are you smarter than these guys? Look at history, we have nearly always run a debt, as do most countries. Its normal.

@josephlynch7655 3 роки тому

How many PhDs do you have?

@stevenbruce4143 3 роки тому

@@josephlynch7655 went to the University of Zimbabwe. Does that count? 😂

@goolooggg9005 3 роки тому

Hyperinflation Weimar Republic 2.0 good luck!

@thegreencouchshow4029 3 роки тому

That French lady’s accent though 😲😲 weurid eubaout 🤣

@derekmcdaniel6029 3 роки тому

There are no rules, only guidelines. Debt only matters for what we make of it.

@drgonzotexas 3 роки тому

Math doesn't matter got it, has someone told NASA yet I'm sure theyd be almost as happy as a lifelong socialist finding out that math doesn't matter anymore.

@StupidBadyXD 3 роки тому

The debt matter because if other country stop buying our debt, then our currency will crash into 0 almost instantly. America is literally scamming money out of all other countries because we are the reserve currency. Fortunately other country also have leaders that doesn’t want to speculate what happen if they let the USD crash, so this shitshow is still going. There’s a breaking point where other country won’t be able to support US anymore. That’s when the US will have Monopoly money.

@DhrubajyotiRaja01 3 роки тому

*Nice Joke,You have More* ???

@mikebostic9518 3 роки тому

Honestly the national debt to me has been purely political and has been for a while. At this point I'm not sure if this is the time to worry about the national debt in the midst of a pandemic.

@jessemetro1891 3 роки тому

It all depends where your money is coming from. If you get it from the government, they will run a deficit. Perhaps standard of living should be debated before borrowing. Before deficits were allowed when there was the Gold Standard, you had no choice but to live within means.