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 (\(\ ( - -) ((') (')
GorillazGames: " businesses spend more than what they take in, as well they should".
I don't know if I agree with that. I own a transportation business, and if I spent more on fuel repairs and Technology then the revenue generated from customers, then I would say that my business is failing
LiuYe: No. Chinese military budget is definitely larger. The american military is just no comparison.
Luiz H. Padovani: dude, i had to check if the video was sped up. was not. you're a machine.
NOBEL DJ: triggered people in comments
Sarah Kuzell: Yeeeeeeah, still confused.
Skinny Bones Jones: Ahhh so Green knows more than Rand AND Ron Paul...hmm
THOMAS million: https://youtu.be/8cT-hNSBF1g
Diego Solis: Speed on 1.5 and this is perfect
Kevin Hawley: The news media must pay off the deficit because they never properly warned us that a 14 trillion dollar deficit was being built up. It wasn't even mentioned on the news today.
James A. Robichaux: You mention that adding - creating - hundreds of billions of dollars would cause inflation, and then you leave it at that and move on, as if creating new money isn't an option to consider.
Do you really think that the US economy is running at full capacity? By some estimates, it is operating at less than 80% capacity, which suggests that at least a trillion dollars could be created out of thin air and handed directly to citizens without causing any debilitating amount of inflation.
Central banks have been fighting deflation for a decade now. Modern technology means that the world produces more products with less labor output, which itself causes deflation, and, then, on top of that, there is more deflation as productive jobs get eliminated and people have less money to spend.
And monopolization is a major factor keeping prices high, and trust-busting could really help there.
So, why such a concern about inflation?
Aaron Cook: War eagle
NOBEL DJ: 2012: its not a problem
2018: 20.5 trillion in US debt and over 50 trillion in unfunded liabilities
Galfor: Just pay it back.
LaHyuuga: It’s about who is the people who benefit from national debt and interests. National banks are owned by banks, wealthy family dynasties like the Rothschild and others. Because we haven’t addressed our debt, these oligarchs invest in our economy as a whole for a living.
Queen TwilightSparkle: If Americans are truly mooching the Government into debt, why can't the Government temporarily cease giving money to American moochers?
billy kobilca: Hate it..unemployment is not an EXPENCE technically.
DONT WE PAY UNEMPLOYMENT INSURANCE WEEKLY AND WE PAY FICA... which is INSURANCE again.
We the workers pay into. Present yourself more clearly sir.
shortbuspileup: A few questions:
Just out of curiosity, what would happen if we paid off the national debt? Would it reduce interest rates to almost zero so that the next time we had to borrow money it would almost be free of interest? Would Social Security be solvent? Would bond holders get their money back and reinvest it in other ventures that stimulate the economy?
Or would it only be a temporary victory because the following year we’d have to increase borrowing to keep the government running because we used all of the budget from the previous year paying off the debt and didn’t fund any other programs?
What is the best way to raise revenue specifically to pay down the debt? Decrease spending on social programs? Write a spending bill that allocates more tax revenue to the sole purpose of paying off the debt? Increase revenue by raising income taxes? Institute a national sales tax?
I crave answers!
mwnciboo: Qualified? No 17 year old should be considered qualified in anything...The lack of real experience and real life experience means...NOPE
shamim: Q, what if people stop believing in the dollar bond.... A...., its happening in already, china and the BRICS
jake black: We need a balanced budget amendment. Even if we only owe money to "ourselves", those areas don't have money if the government can't pay it back. If the US borrowed money from SS and can't pay it back then SS recipients are out that money unless the US prints more, resulting in SS benefits being worth less.
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