Why The U.S. Can’t Go Broke

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The U.S. national debt is now bigger than its economy. That might sound scary, but we’ll explain how the United States can never go broke and can actually pay all of its debts whenever it wants to.

To help us, we spoke to economics professor Stephanie Kelton, author of The Deficit Myth, former chief economist on the U.S. Senate Budge Committee and a former economic advisor to Bernie Sanders.

#NationalDebt #Deficit

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26 COMMENTS

  1. Hey everyone, thank you for watching.

    Obviously, economics is a complex topic, and there are a lot of factors that you can’t squeeze into a 10-minute video. A couple things are worth pointing out: The bulk of this 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. What did you all find most interesting?

  5. Now because Joe Biden is spending then it is Joe and his team that owe. not the people. These mayors and governors owe, not the people. So people you didn't borrow the money and gave it to other countries etc. so why do you owe?

    What I don't get; is why everyone thinks they owe. This is a government and corporation situation. Not a people situation. It's your government that owes not the people of America. It's your government and corporation that borrow money and spend it stupidly mostly, anyway just saying it is NOT THE PEOPLE THAT OWES – and I will be glad when you people stop saying you owe. you people don't owe. Money is made from paper and ink. The only people I know that can get money with no problem is the government and banks etc

  6. there is at least 3 machine that makes american money. If the people need to worry about paying this debt. than we should be able to borrow money from the government, like they borrow money. This whole situation makes people seem stupid. Because our government makes money they really don't need the people money. It's a game. IT'S A GAME. Your government. THERE NOTHING TO DO IN LIFE BUT MAKE GAMES. AND THIS IS ONE OF THE BEST GAMES OF ALL.

  7. Wait until paper money transfer into digital money (AI) . and why you have to pay the government? YOU DON'T-all you have to do is hit some buttons. Like I said what else is there to do in this world but play games.

  8. There is some misinformation here. The US doesn't just get to print money. It issues bonds as debt and then uses that to raise money.

    Previously this was sold to foreign nations like aliens and even china and japan. But now they are not buying as the US is printing so much, they don't see themselves getting repaid.

    So the US is now peddling this to ETFs and those are majority held by 401K/IRA accounts. So essentially the citizens are now financing their governments debt and taking on the risks.

    They hope that by selling these bonds to the biggest ETFs and banks that they wouldn't sell and cause massive inflation. Once the peddle this debt onto their citizens, they raise interest rate to "combat inflation"; aka inciting these bond holders not to sell. And rinse and repeat every print cycle.

    They ran out of foreign buyers and will not be able to peddle trillions onto their citizens for too long.

  12. this is nonsense!!! inflation is running rampant and this guy is saying the us can never go broke. and ironically this is exactly the kind of moronic thinking that leads to overspending and inflation.

  15. This makes perfect sense and cents. As long as the government creates or makes money it could never be in debt unless they ran out of material to print the money.

  22. Thomas Jefferson once said that government large enough to give you everything you need is big enough to take everything that you have

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