Understanding the National Debt and Budget Deficit

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 (\(\ ( - -) ((') (')

Comments

Mandy Rana: 21trillions and running

Audrie Allison: Please make a current video explaining the deficit in its current state as this video is from 2012.

Jeffrey Palmer: Cancel the debt and nationalize banking. And demand reparations for the middle class

Dominick Oquin: Just ty.

Dominick Oquin: Ty.

Marisol Alfonso: Hey john wanna do this video again so that it can help me for the January debate topic 😂

woodsboy: god does this guy waffle of what

Kenia Landazuri: does anyone know where he is getting his evidence from i want to cite it

MadSense: Pretty sure this video used to be titled.. "why the national debt doesn't matter".

Bugout Bubba: What if people just started saving their money? And why if it's so easy to pay off the debt, don't we?

opir brain: just saying I know you have done enough outside research by now, but your school degree actually makes you disable if you think its makes you in position to speak , cause school is teaching non senses mostly ..
but someone was condition by school no intellectual waste time on lesioning to him

Chloe Wang: What america has is a massive foreign debt. This is why modern money theory would not apply to america. Because 21 trillion of that debt is foreign. Just go outside and buy something. Nothing is made in america
U.S. Becomes World's No. 1 Debtor Nation
By Stuart Auerbach
June 25, 1986

The United States leapfrogged Brazil and Mexico last year to become the world's largest debtor nation, with foreign interests owning $107.4 billion more in the United States than Americans own overseas, the government reported yesterday."Fundamentally, what we are doing is importing goods and exporting bonds, or IOUs, if you will," said Chimerine.

The problem could worsen if the overseas investors decided to sell their holdings and the United States had to repay capital, as Mexico and Brazil are being asked to do in paying off their loans, instead of meeting only interest and dividend requirements.

Chimerine added that there won't be a turnaround until the United States curbs its merchandise trade deficts, which have set records for four straight years and reached $158.5 billion in 1985.

Chloe Wang: When a govt buys bridges roads schools and military spending from its own people and issues IOUs to pay for it. This is known as the internal debt. It shows that a nation is self sufficient since its able to supply itself goods and services from its own citizens or subjects. But when a govt or nation must buy those same things from foreign nations and issues IOUs to pay for it. This is known as the external debt or foreign debt. It shows a nation isnt self sufficient and isnt incapable of sustaining itself.

Jeremiah Noar: Does anyone know how it got this bad in the first place

Pyrotechnic Redneck: C student? Well he's more qualified then me lol

vishuscirquel: "still working on my punishment...sorry"......LOLOLOL.

Atlan_joe: if you follow MODERN MONEY THEORY (MMT) you would know that the "debt" is not a debt in the real sense, its a accounting balance. The government holds the monopoly on money so it creates money OUT OF THIN AIR, and removes it from the economy by TAXATION. To whom should the government have a debt?? it is its own creator of money it can never run out of money to print.. dont get me wrong, that doesnt mean that it should create more money, because the goal of monetary policy is price stability.


And it can never default, so long you hold the monopoly on money, this is true to all nations with a monopoly on money. Unlike the euro, the single european countries can go broke because the nations ceded this monopoly to the ECB

Jonathan Hughes: Jesus taught us a principle that would have prevented debt. Ask and receive. We were freely given all things. We need to freely give. Economy is not freely give. Jesus did not war. There would be no veterans had people emulated Jesus.

LiveShowVideos: Watching this near the end of 2018 ...” oh shit”

truth*is*treason: what is debt bought with?

Your name:

Your comment:

Video on this topic

Never mix up the debt and deficit again

Never mix up the debt and deficit again

Even politicians mix up the terms debt and deficit. CNNMoney explains the difference so you can sound smart at your next cocktail party.

The U.S. National Debt Explained

The U.S. National Debt Explained

I break down the U.S. National Debt and explain who the U.S. owes money to. What Is Neo-Feudalism?: https://youtu.be/j0R8bXrUCgg The Debt Limit ...

Does U.S. debt matter? | CNBC Explains

Does U.S. debt matter? | CNBC Explains

U.S. government debt stands at more than $21 trillion. Does it matter? CNBC's Elizabeth Schulze explains. ----- Subscribe to us on YouTube: ...

Fiscal Deficits and the National Debt

Fiscal Deficits and the National Debt

This short video explains the difference between government borrowing (the fiscal deficit) and the accumulated level of government debt drawing on data from ...

Lesson 1 National Debt & Budget Deficit Explained

Lesson 1 National Debt & Budget Deficit Explained

Find more about debt to GDP ratio in other nations at the CIA Factbook http://bit.ly/dcZPI Also please read the book "Basic Economics" http://bit.ly/lr4H.

Ep. 12: AN ANIMATED FILM ON THE DEBT & THE DEFICIT | Marshall Curry

Ep. 12: AN ANIMATED FILM ON THE DEBT & THE DEFICIT | Marshall Curry

Ep. 12: AN ANIMATED FILM ON THE DEBT & THE DEFICIT | Marshall Curry CHECK US OUT: http://www.wetheeconomy.com Why do we have budget deficits ...

The National Debt and Federal Budget Deficit Deconstructed - Tony Robbins

The National Debt and Federal Budget Deficit Deconstructed - Tony Robbins

http://www.tonyrobbins.com/ Watch Tony Robbins discuss the $15 trillion U.S. national debt -- how big is it really? And what can we do about the enormous ...

Deficits & Debts: Crash Course Economics #9

Deficits & Debts: Crash Course Economics #9

What is debt? What is a deficit? And do these things have different outcomes for individuals and nations? Adriene and Jacob answer all these questions and ...

Understanding the National Debt and Budget Deficit

Understanding the National Debt and Budget Deficit

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 ...