Exploring the U.S. National Debt and Its Implications

The video explores the U.S. national debt, explaining that unlike personal debt, the government can issue its own currency, meaning it can't go broke. It discusses the concept of deficits, highlighting that they can benefit the economy by leaving more money in circulation. The real concern is inflation, not debt, as excessive money supply can lead to rising prices. The video challenges traditional views on national debt, suggesting that big policy ideas could be funded through deficit spending, as long as inflation is controlled.

What is the current size of the U.S. national debt?

• $28 trillion

• $18 trillion

• $38 trillion

• $48 trillion

Who is Stephanie Kelton?

• A former U.S. president

• A financial advisor

• A senator

• A professor of economics and public policy

Why can the U.S. government never go broke?

• It borrows from other countries

• It has unlimited gold reserves

• It can issue its own currency

• It has no debt

What is a government deficit?

• When the government borrows money

• When the government spends more than it taxes

• When the government taxes more than it spends

• When the government has no debt

What is the main concern with continuous deficit spending?

• Increased national debt

• Inflation

• Unemployment

• Decreased productivity

How can the government counter inflation?

• By making borrowing more expensive

• By reducing taxes

• By increasing spending

• By printing more money

What does the term 'national debt' actually represent?

• The total amount of money the government has borrowed from its citizens

• The total amount of money the government has spent minus what it has taxed back

• The total amount of money the government owes to other countries

• The total amount of money the government has in its reserves

Why do we still need to pay taxes if the government can create money?

• To increase government reserves

• To borrow more money

• To pay off national debt

• To control inflation

What can taxes be used for besides generating revenue?

• To control inflation and provide incentives

• To increase national debt

• To borrow money from other countries

• To reduce government spending

What is one potential benefit of deficit spending?

• It can stimulate economic growth

• It decreases inflation

• It increases unemployment

• It reduces the national debt