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

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?

Surfsy: I really don't understand this national debt thing, isn't it like saying I have to pay of the loans and credit card debts of my parents, grand parents and great grand parents etc? For example the UK only recently just finished paying of loans from WW1?

Irish Snow: Can you guys do another talking about where we are today? Just an update? And please bring back more Hank and John explain videos!!!

Jayana Nanayakkara: this made me feel a bit happier

Fernando Ullate: 6 years later....it’s still relevant. Now the interest rate is going up

Phillip S: Current president don t. with his tax cuts to the wealthy has created a deficit of nearly $800 BILLION added to the Nat'l debt. We cannot spend ourselves to success.

Xeeez: put speed on 0.75 for normal

se7ensnakes: This guy in this video looks as stupid and shallow as the things he is saying

250txc: Do not bother with the comments here; It is driven by either BOTs or just ignorance by people who can not even follow the subject matter of the VID in most cases

Lorgic: HOW ABOUT 70 TRILLION PRIVATE DEBT? HOW ABOUT RUSSIA OR CHINA OR RUSSIA AND CHINA CREATING A PARALELAL WAY OF INTERNATIONAL PAYMENT SYSTEM BASED ON GOLD AND BLOCKCHAIN?

Jj Chen: Invasion of Iraq and Libya is fake news. If it was necessary to pay off the debt through wars. And these wars were actually happening. Then the american debt would have been resolved.

Red Wine Please: He's got it mostly right.
> You can't play Monopoly until the Monopoly Banker prints money in the backroom and hands it out to the players. No money. No game.
> China buys Federal debt instruments with money WalMart used to buy their goods. Money returned to US.
> Money creation (Treas/Fed, Comm. Banks) only a problem when production capacity is absent. Then inflation occurs.
> Medicare/Medicaid (Fiscal spending), at worst, might cause price inflation in meds, hip replacements, nurses, oxygen machines, canes and wheel chairs, rehab and hospice care, and such.
> Focus first on where the money is spent, second on the amount. Collective benefits: Defence, infrastructure, research, education, healthcare, energy, environment. Pretty much where we focus federal money today.

ZR1: listening at .75

Kat UPSC: 4:16 reason why you invaded iraq and libya

Jj Chen: us cant just print money because the us has trade deficits. It needs foreign banks like China's central bank to finance american trade deficits.

Mmm Mmm: The deficit will be lower in 2013 regardless of who is elected. The deficit will shoot back up in 2018 after Drumpf.

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