Ep.146 – The U.S. Government is not Going Bankrupt
Do you believe the U.S. government is going bankrupt?
It's becoming more of a common question as our national debt levels have ballooned to epic proportions. It might even conjure up emotions of fear if you listen to mainstream media sources.
However, if we go beyond the headlines, we will find that the U.S. is not going bankrupt, and we should likely be thankful for the wealth we have created in part from our increase in national debt.
I call on my friend and economic expert Cullen Roche's writing to help us see that America's fiscal health is far from critical. Why the government, with its monetary might and 'printing press' capability as seen during the COVID crisis, cannot go bankrupt like a typical household.
ADDITIONAL RESOURCES YOU MAY LIKE
1 Big Idea to Think About
The relationship between debt, productivity, and economic stability is crucial to understand in the context of government spending and economic growth.
1 Way You Can Apply This
Examine historical data and current trends to assess how economic policies and government interventions impact inflation rates and overall economic stability.
1 Question to Ask
How can policymakers ensure that government spending is directed towards productive investments that stimulate long-term economic growth while managing debt levels responsibly?
Key Moments From the Show
00:00:03 - Introduction: Emphasizes the importance of the economy in an election year.
00:01:10 - Discussion on government's ability to print money and the impact of debt on inflation.
00:02:06 - Highlighting the significance of productivity in utilizing debt effectively.
00:03:13 - Insight into the wealth and resources of the US economy.
00:05:12 - Observation on media bias towards negative economic news and the importance of optimism.
00:06:34 - Reflection on inflation trends and societal tendency towards anchor bias.
00:07:39 - Conclusion: Wrapping up the discussion on the economy and expressing intent to delve deeper in future episodes.