How Bad Is the National Debt?

How unhealthy is the nationwide debt? Simply asking questions.

Our nationwide debt—measured as federal debt held by the general public—is over $27 trillion. That is approaching 100 percent of annual gross domestic product, which is increased than it has been for the reason that finish of World Battle II. So, are we screwed? 

Or are these of us who fear about numbers like this completely misunderstanding the character of presidency debt? There is a college of thought referred to as Modern Monetary Theory (MMT) that claims economists ought to cease worrying and study to like the debt as a result of, when you consider it, the federal government’s deficit is a non-public sector surplus. That is what MMTers imagine.

Becoming a member of us to speak concerning the debt, the rising affect of MMT, and the possible trajectory of an more and more debt-burdened nation is Bob Murphy. He is an economist and writer, senior fellow at the Mises Institute, and host of The Bob Murphy Show and The Human Action Podcast.

Sources referenced on this episode:

1. Federal Debt Held by the Public | St. Louis Fed
2. Federal Debt Held by the Public as Percent of Gross Domestic Product | St. Louis Fed
3. Real Gross Domestic Product | St. Louis Fed
4. Federal government current expenditures: Interest payments | St. Louis Fed
5. Federal spending | U.S. Treasury Fiscal Data
6. Just Asking Questions with Ted Nordhaus
7. Just Asking Questions with Kyla Scanlon
8. Cause TV: “Does National Debt Still Matter? America’s Gamble“
9. Stephanie Kelton: “The big myth of government deficits” | TED
10. Murphy hosts Reason‘s Nick Gillespie on The Human Action Podcast

Chapters:

• 00:00 Introduction
• 01:34 What financial story does the debt inform?
• 05:28 How is that this a lot debt politically possible?
• 09:38 Murphy responds to Jason Furman and Keynesianism
• 14:31 The curiosity paid on the debt
• 17:41 Analogizing alarmism: debt vs. local weather
• 26:03 Easy lesson on Social Safety and entitlements
• 32:40 Responding to MMT and Kelton’s TED speak
• 57:41 Why do MMTers appear so modern?
• 01:00:36 Libertarianism: pessimism vs. optimism
• 01:11:16 Ultimate query

• Producer: John Osterhoudt