Understanding the National Debt and Budget Deficit
Economy | Information | History | Online | Facts | World | Global | Money
In which John discusses the US national debt, the federal budget deficit, plans for shrinking or eliminating the deficit, and tries to provide some context to the political rhetoric and statistics that are constantly thrown around in an election season. Along the way, I hope you'll understand why the United States' sovereign debt hasn't led us to an economic crisis, but also why budget deficits need to shrink in order to ensure that credit remains inexpensive and the US continues to enjoy the trust of the world economy. (Friendly reminder: Educational videos, by extensive precedent, are allowed to be longer than 4:00.) Here's why I think the gold standard is a bad idea: 1. By restricting money supply to the supply of gold, you risk shrinking the money supply just because of a shock leading to a disruption in supply from mining. This creates a lot of volatility in the money supply for no reason. 2. The gold standard limits a government's ability to respond to changes in the market, which can (and has) led to unescapable deflationary spirals. 3. Far from inspiring investor confidence, its implementation would crush it: http://www.ocregister.com/opinion/gold-369936-standard-money.html Posters and stuff: http://dftba.com My tumblr: http://fishingboatproceeds.tumblr.com My twitter: http://www.twitter.com/realjohngreen HERE ARE A LOT OF LINKS TO NERDFIGHTASTIC THINGS: Shirts and Stuff: http://dftba.com/artist/30/Vlogbrothers Hank's Music: http://dftba.com/artist/15/Hank-Green John's Books: http://amzn.to/j3LYqo ====================== Hank's Twitter: http://www.twitter.com/hankgreen Hank's Facebook: http://www.facebook.com/hankimon Hank's tumblr: http://edwardspoonhands.tumblr.com John's Twitter: http://www.twitter.com/realjohngreen John's Facebook: http://www.facebook.com/johngreenfans John's tumblr: http://fishingboatproceeds.tumblr.com ====================== Other Channels Crash Course: http://www.youtube.com/crashcourse SciShow: http://www.youtube.com/scishow Gaming: http://www.youtube.com/hankgames VidCon: http://www.youtube.com/vidcon Hank's Channel: http://www.youtube.com/hankschannel Truth or Fail: http://www.youtube.com/truthorfail ====================== Nerdfighteria http://effyeahnerdfighters.com/ http://effyeahnerdfighters.com/nftumblrs http://reddit.com/r/nerdfighters http://nerdfighteria.info/ A Bunny (\(\ ( - -) ((') (')
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((') (') true! every word!
Long live John! -
Now thats its 20 trillion, lets start selling those hoverboards to pay back the loan.
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Welfare and food stamps would still help increase productivity. Since supermarkets and farmers are motivated by food stamps and agricultural subsidies to continue farming. The price of food and the incentive to produce food would drop if there were less food stamps and agricultural subsidies. An example was back when food prices dropped and farmers rose in protest against free market prices and dumped their produce into the sewage and fields instead of selling it at the new market price.
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Your economic output will never keep up with your debt. Hence why there is always inflation. The goal isnt to keep up with the debt. So long as output is increased then its a good thing. The price of the increased productivity is inflation. But the economic gains are still there.
Lets say in year 1 the price of corn is 1 dollar and you produced 2 bushels of corn for 2 dollars. Then in year two the price of corn rose to 3 dollars, but your produced 5 bushels of corn at 3 dollars each. The consequence of course is that the price of corn has risen 2 dollars per bushel. However, annual production of corn has risen to 5 bushels per year. Leading to more corn per capita and as a whole. -
No. Every country in the world has the ability to print money. The national government, regardless of where and how is the final buyer of government debt when no one else wishes to buy. So if no one in the world wants to invest in your country, or loan you money. Then your government will be the investor and creditor of your own country of last resort.
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so should i vote for Dump or Hitlary
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So if the national debt isn't a serious issue, huh come it always comes up in political discussions and economics. Shouldn't it be clear as this guy said that we shouldn't be worried
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you won a prize in economics but you dont know the US does not issue bonds to raise revenue? its an operation to drain reserves from the financial sector. one of the biggest myths in economics
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america defict is the biggest crime ever,,,, they run a 1 .4 trilion doalr deficit in 2009 or 2010...
still is high of over 400 bilion, is a lack of responsability, criminals behavviour greed for power and revenge,,,
we must bring down the crooks in charge... -
This is almost right but still wrong! The govt. should run a deficit in fact it needs to do so!
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The national debt is a figment of the imagination
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can you pls provide a link to a page that shows foreign debt owned by US like shown in 1:21
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How about an update?
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I know this guy isn't really stupid, he's just paid to make us stupid. but if any company ran an ever increasingly debt they would lose all stock holders and credit leading to closed doors. His comparison was for fools to swallow.
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CPA here...this guy is an idiot
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The US is a sovereign monetary issuer. US pays in dollars and debt is paid in dollars. The US is the only entity that can legally print money or with computers add money to an account with a key stroke. The deficit is money in banks that are our savings accounts. The US can not go broke and it can pay any debt because it is all owed in dollars and we control the printing press.
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ALL THEORY, HYPOTHESIS, EXPLAINATION CONCERNING DEFICIT OR US DEFT ARE ONLY EXCUSE TO STEAL MORE.....THE FACT IS THERE IS NO BUDGET, THERE IS BUDGET CUT, BUDGET DENIED AND SEQUESTRATION. THE QUESTION IS WHY? INSPITE THAT THE USA MONITORS THE WORLD TRADE CENTER AND MILITARY CHANNEL ORGANIZATION. USA MANAGE ALL SCHOOL, PORT, HARBOR, PIER, YARDS, AIRPORT AND MILITARY FACILITIES ALL OVER THE WORLD. WE HAVE 7 HIERARCHY WORLD POSITIONS WITH 25 LORD GENERAL, 120 LORD KNIGHTS AND 1 LORD OF LORDS, WHO ARE OWNERS AND CO-OWNERS OF WORLD BANK. WHO WITHDRAWS FROM THEIR ACCOUNT EVERY 10 YEARS, ALTERNATELY AND PAYS $200BILLION PER OFFICERS TO THE US STABILITY FUNDS. WHERE ARE THEY? WHO ARE IN THIS BIG AND HUGE MANSIONS? HOPEFULLY NOT THEIR MAIDS AND DRIVERS THAT ARE FOOLING ALL AFTER THE 911. THIS IS THE ROOT OF THIS ISSUE THEY ARE GONE. THE US BUDGET SECRETARIAT IS ABDUCTED THUS "NO BUDGET, BUDGET DENIED, BUDGET CUT WORST SEQUESTRATION". IF THE FINANCE SECRETARIAT IS MISSING THE ECONOMIC ISSUE IS CALLED "FINANCE DEFICIT" AND WHEN THE TREASURY OFFICIAL IS MISSING THE HEAD ISSUE WILL BE CALLED "US TREASURY LOST". DO YOU KNOW THIS?
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Great video! I would only disagree about one thing. I would be perfectly fine with our government running deficits during recession, IF it showed the fiscal discipline to pay down said debts AFTER the recession. However our government clearly has no such willingness any more. If you don't have to the ability to pay down a debt when times are GOOD, you have no business going into debt in the first place.
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"Third-best 17-year old economist among all C students in the state of Alabama!" SMACKDOWN!
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Great example using the Marty McFly hoverboard lol
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