9 - Deficits & Debts

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Deficits & Debts - CrCo > .

Why The U.S. Can’t Go Broke - AJ+ > .

Impact of Mounting Sovereign Debts - "Autodidact" - Goodfellows > .

23-7-2 Global Debt & Productivity | Global Assets vs GDP - EcEx > .

22-10-28 How China Is Helping to Reduce Inflation - Patrick Boyle > .

22-10-27 Xina's Economy 60% Smaller Than Claimed - Macro > . skip > .

22-10-27 GDP Deflator - Macro > .

2017 Who Controls All of Our Money? - Fusion > .

2020 How is Money Created? – Everything We Need to Know - Fusion > .

GDP is Not a Perfect Measure of Economic Well-Being - Many Lessons > .

2021 Which Countries Have The Biggest National Debt? - General Knowledge > .

2001-2021 Global Shift in Nation Debt as % of GDP - General Knowledge > .

22-10-15 Japan - national debt, liquidity trap vs artificial inflation - VisEco > .

Economics - CrCo >> .

Economics - Primer >> .

● Economic Principles ..

1) Budget deficit - the amount by which a government's spending exceeds it's income over a particular period of time.
a. Debt - the accumulation of budget deficits.
b. In the same way our GDP grows every year, due to population growth and productivity increases.
And our ability to sustain debt grows along with our income.
2) "Default"- the investors who loaned the government money lose billions and the government loses all credibility, and it causes massive recession.
3) Debt ceiling - limit on the amount of national debt that can be issued by US Treasury.

The bulk of the Can't Go Broke video uses the United States as an example, but generally you can apply these ideas to any country that issues its own sovereign currency, like the UK, Japan, etc.

Another thing to note is that Japan has an even bigger national debt than the U.S. when you compare their debt-to-GDP ratios. The debt number used at the beginning of the video ($28 trillion) is the gross national debt of the United States. Some economists prefer to focus on a different, slightly smaller number, called the “public debt.” That number takes the overall debt and subtracts from it any intergovernmental debt — in other words, debt owned by different parts of the U.S. government.

With the deadline to file tax returns coming up in the U.S., one of the things we found most interesting is that taxes don’t need to be collected first before a government spends; it flips our whole understanding of why we are taxed and what the limitations to government investment could be.