Deficits & Debts: Crash Course Economics

The video explores the concepts of deficits and debt, using the fictional country Cliffordonia to illustrate how deficits accumulate into debt. It then shifts focus to the US, discussing its national debt, the importance of viewing debt as a percentage of GDP, and comparing it to other countries. The video highlights government spending, particularly on Social Security and Medicare, and the challenges of future deficits. It explains the debt ceiling and potential economic risks of excessive borrowing. The video concludes with a discussion on the complexity of debt issues and the need for informed policy decisions.

What are the potential consequences of a country defaulting on its debt?

How does the US debt ceiling function, and what are its limitations?

In what ways could the growth in health care costs impact the national debt?