Budget Deficits for Dummies: Or how I learned to stop worrying and love $1.4 trillion

[LancairPropJet]

Every democratic president since FDR has has a budget surplus when leaving office. Every republican president during the same period has had a budget deficit (except Nixon's first term). Climaxing with Dumb Bush and his huge 20% deficit which he gladly donated to Obama. Now -for some reason- the republicans don't like deficit spending.

[2JAMMY]

Get rid of the people that run things and get some proper people. The present ones are really shitty at it!

[ricardorae]

I think you're talking about Debt, not deficit.

Deficit is simply the difference between the money a government collects and what it spends over the life of the budget (EG all the tax revenue for a financial year VS the services it spends those tax dollars on).

The debt however, is in the trillions, but this is because it's been accumulating since the very first political party took office.

[tnguyen318]

A budget deficit is not a debt. it is spending more money that you want. a debt is when you owe some body money.

[surrealnumber]

@SonnyTheWhiteDwarf its Satire you idiot.

hum, i could have tried harder on that one

[umrmecheman]

classic lol... it's for the children. how about the 30+ trillion in unfunded liabilities that is medicare and medicaid. Oh wait those programs had good intentions so that means i'm a scumbag.

[TheShnuz]

@SonnyTheWhiteDwarf hehe

[TheShnuz]

@SonnyTheWhiteDwarf To think that Sonny, your credit cards must not have caught up with you yet LOL

[bluecobra95]

This is a conversation I had today:

"Do you know how big the national debt is?"

"Around 5 or 6 trillion?"

"Twelve trillion; with trillion deficits set out for years"

*jaw hits floor*

[natdavi]

what's that word for when ppl say something so crazy you can't tell if they're making fun of the crazies or crazy himself... what's that word again?

[CrackerMcGillicuddy]

You're kidding right? If not, would you like your Kool Aid on the rocks?

[logorrhea]

Holy! 10% of GDP? If we could only choose our legal tender, it would not matter. But the Fed insists that we use the money backed up by... deficit.

[contrarianbastard]

You know, that giveaway of vespa's, books, and vouchers would likely do more for the financial health of this country that any amount of stimulus spending or bailouts ever could.

[3martijns]

By Signing the SPENDING bills, bho has PROVED that he HATES the USA.

[3martijns]

ANYONE in Congress who votes for MORE spending is a TRAITOR.

[earthborg]

All of china's wealth is more illuisonary than ours.we buy their poor quality garbage europe does not want to,and their money's value is based off of our debt.when our currency tanks, they are double screwed because they have artificially deflated its value to prop up their exports and it is based off of buying our worthlessdebt so they missed out on buying power.Anything of value in china is not chinese yet.they are super inefficient and if we tank, they can't even depend on domesticconsumption

[HBSchool]

1. Look up "Capital" and everything it encompasses. They didn't miss out, they built factories, the life blood of economies.

2. The European Union IS THE LARGEST buyer of Chinese goods.

3. Their currency isn't based off of our debt. (It's pegged, as in, not floating on an exchange.)

4. Do you know how many billions are being invested in China? Don't let the fleecing of America fool you. CEO's aren't morons.

Our debt is what % of their GDP per year? It accumulated over how many years?

[jsruss1961]

dilatory, one other option exists. When the dollar completely collapses and bread cost $50 a loaf, gas $200 a gal. etc., and local, county and state governments crumple, and the country can no longer financially maintain a military to defend the country, then politicians will go to the UN, WTO and World Bank to beg for loans and enforce domestic law. The price for loans and law enforcement will be American sovereignty. American elites actively strive for the dollar's collapse, it's planned.

[Zile77]

It's now official, Oblama is the worst president since 1953, according to a new Gallup Poll. His approval rating has fallen faster than any "president" by the third qtr.

[Silvsilvchan]

His approval rating plummeting proves he is the worse president how? Wouldn't having the lowest approval rating (Harry S. Truman, Lyndon Johnson, Richard Nixon, and George Bush Jr. all had lower approval ratings than he does at some point) be the stick by which you measure that? Even then, who says? Public opinion of Franklin Roosevelt according to the gallup polls at the time were at their lowest just before World War Two, but never fell beneath 48%. FDR was one of our worse presidents.

[k1awdttt]

Zoloft! Legal and expensive form of Ecstasy :)

Throw in some opioid and Amphetamine (Adderall/Dexedrine) and I'd be singing the national anthem till my brain is fired :P

All we need is for the pharmaceutical companies to make their legal version of LSD and we officially get a nation on drugs. Beats Rome's lead poisoning any day XD

[earthborg]

the cia figured out the logistics of dosing the nations water supply so "if anyone wanted to theyd know how to stop it". the first research into lsd and human behavior was done by the cia.

[k1awdttt]

Yup! Gotta love how so many drugs were related to the government/military (mainly the US, some German).

It makes sooo much sense that they ban what they created... Maternal (tough) love huh? Oh, it's the "evil" apple again :P

[no123body]

Good video, but I think you should inform people also of the devastating effects that the debt will have on the future of Americans.

[hullolife]

WHAT THE FUCK IS WRONG WITH PEOPLE.

[NoSocialSkillz]

With the coming hyperinflation we should get some cool new currency. An obvious choice would be Lee Majors on the Six Million Dollar Bill.

[Skyler827]

I agree totally; Our annual federal debt is a whopping %60 of our GDP. By the way, have you heard of Germany's Federal debt as a percentage of GDP? Japan's? (~65% and 100%, respectively)

(Don't take this the wrong way, Federal Debt is BAAAD... Germany and Japan will financially collapse soon enough.)

[rochha]

but you left out hyperinflation after all this spending so in about 10 years everyone will be billionaires, but a car will cost a billion US dollars too

[trehansen]

Actually it highly depends on how productive our economy is. It is what prevented severe inflation in the past. Despite whether it is good or not, the system only works if Americans work themselves to death. Is it any surprise Americans work more hours than any industrialized nation in the world?

[guslingus]

It is NO surprise at all that Americans SAY they work more hours than any industrialized nation in the world?

[trehansen]

Actually we quite literally do. This is not just what we say, but there are actually studies that prove it to be true. We are also one of the few if not the only 1st world nation that doesn't have mandatory vacation and sick days.

[earthborg]

christmas is the only reason well have retail jobs this year.

[delatroy]

you dont make anything anymore. Look at your top 3 exports.. Its differnet to the 70s and 30s when you were actually producing stuff. Now you're just plain fucked, running on borrowed sweat from the future to continue to buy your 18' chrome rims. Either you fess you, raise interest rates and have a severe deep depression now or you continue printing and raise interest rates later when you'll have an even deeper, more severe depression.

[earthborg]

that's what inflation is supposed to do to us silly head. that's why we never should have become a nation of employees.

[BobTheRecordGuy]

It's the Fed. The Fed. The Fed. The Fed. The Fed. The Fed. The Fed. The Fed. The Fed. End the Fed = eventually no more national debt, minimal taxes needed from citizens, prosperity. Stay in this debt system and the country will alwayys be indebt over it's head and YOU will always be in debt over your head.

[JimFacebookVids]

I want my fucking vespa. I feel gypped.

[earthborg]

I'm not paying for this debt. Why should I pay for my grandparents and parents to live like entertained fat asses when Im going to be a slave that can't afford basic needs with a college education. taxation without representation. fuck that. peaceful revolution.

[TheMarketAssassin]

so it is safe to say we will ... defult

[naggold]

With a 1.4 trillion dollar deficit the Fed is now having to monitize the debt (i.e. buy the debt and print money out of thin air). That didn't use to happen. Have you noticed the dollar falling like a rock? The politicians need to be given pink slips.

[czubspenx]

It is the elected politicians of this country that have totally ruined the economy. They make laws, rules, regulations, policies, etc., that make absolutely no sense because they are bought and paid for by special interests and corpotate America. They should be tried for treason. Disgusting.

[SATANSbankers]

Bush DOUBLED the DEBT Clinton left us, and with Rising INFLATION, Obama will probably TRIPLE it.

We can NEVER Pay it off.

[earthborg]

so why pay for it at all. most of it went overseas either in bribes to corrupt dictatorships, illegal wars or corporate handouts. im not paying a fucking cent of this debt. why should you? I'm not getting shit out of it anyways.

[SATANSbankers]

Every Inflated Dollar you Own is paying for it, whether you like it or not.

We don't have a choice.

[earthborg]

yeah we do. its called non-participation in the corporate communist system through self reliance and collaboration. we do not need the system as most of us have been programmed to believe. cottage industry is what built the manufacturing and commercial base of this nation and it will save us from collapse and BS government. Why use dollars at all. We can go to a commodity currency economy on our own and not use the system and make our own. easier said than done yes. civil disobedience.

[caltrop69]

earthborg:

If you eat anything that's paid for in dollars, you'll probably get at least one shit. Possibly more.

[earthborg]

oh really, why is that? food grows itself very cheaply. I eat a lot of homegrown food all year already. like im gonna buy all of my food when hyper inflation hits and production stops. ive got seeds and skills. I am self reliant. i am not as dependent on the system like most sheeple. I suggest people start teaching themselves how to provide for themselves without a paycheck and walmarts. I was fortunate to learn from my g-rents a lot about how they survived the depression without money.

[caltrop69]

Hmmm...Maybe you didn't catch my sarcasm.

I was suggesting that you could buy enough food to eat once, or possibly more.

In other words...Not very much.

[Skyler827]

Federal Debt money not paid back is pretty much the exact same as printing money. And our government does a lot of both.

We want to stop it because Federal debt and illegitimate printing of money causes inflation, prompts growth, and if it prompts enough growth that is not substantiated by our GDP, you get an economic crisis like what started in 2007. Nobody is digging the housing market collapse, and if debt had been trillions of dollars instead of millions, it would've been a lot worse.

[earthborg]

all true, but i do not care. I will not be robbed of the fruits of my labor. if people realized that we used to be self reliant, and became a nation of employees about to be serfs then it would seem logical to stops taking paychecks and to stop participating in this BS system. We do not need the blessing of washington for how we choose to remake our society at the local level. We can produce and use our local and state governments to protect ourselves. let washington fail. lets evolve.

[Skyler827]

We can't just not use our United States Dollar. It is enforced by law. I agree totally- I will not be robbed the fruits of my labor, but more importantly, I want to oppose a system that does this. I think that in the end, we are all going to robbed something. That's why I choose to be a Libertarian and fight for the elimination of the Federal Reserve, and for the reduction of Federal power, so in the end, I can at least improve the situation for posterity's sake.

[fireteamforfreedom]

You might wanna check the numbers...because the actual National Debt increased by $1.885 trillion during the fiscal year... some creative accounting going on... apparently

[TheFlex21]

:06

who's that???

[jasoncutbirth]

nice title for the video

[MagnusIan]

Like I always say, end the Federal Reserve or the Federal Reserve will end us.

[soccom8341576]

California wouldn't be so bad if it become a republic by itself.

Can get out of having to pay up the federal debt, and then run off to China for protection.

[LooseLatitude]

Is he related to that guy on CHiPs? What was his name? Poncho?

[fullofdrambuie]

No.

Not Poncho from CHiPs.

Anton Chigurh, friendo.

[averagejoe040]

Every frikkin president from Hoover to present has manipulated interest rates and the money supply to avoid an economic downturn on HIS watch.

This wouldn't be possible without the damnable Fed.

Obama has followed their example but turned a fetish into a full blown perversion.

He's using the whole chicken not just a feather or two.

[highonhayek]

But... but... if you would just BELIEVE that his programs will work then you just have to sit back and let him do the rest to solve this recession!

[whoo689]

In just 80 years or so, America has gone from a rugged individualist nation that believes in INDEPENDENCE from gov't to a nation of whiners, crybabies and dependents. Almost everyone has his hand out for something.

I realize generosity (even though it's with other people's money) is a virtue, but come on, Obama and Congress!

[HBSchool]

There's no virtue in giving what you're forced to give.

[earthborg]

cottage industry and hard honest work is the way to go. if we became self reliant and stopped feeding the corporate machine and cut washington off, it would be a revolution.

"the moral principle of revolution is to instruct, not destroy" -thomas paine

[whoo689]

Jack Murtha has an entire airport named after him?? Oh, god. That's even more ludicrous than all the crap named after Senator Byrd in West Virginia.

And wtf is a "county airport"? Don't airports usually get built in mid or large-size cities? Is a 'county airport' like 5x larger than a regular one? Or is this a smaller county?

[HBSchool]

It's the airport everyone avoids going to. It's convenient but it's usually $200-$300 more to fly out of.

[cat00012000]

Why was it okay for Reagan to grow the deficit and Bush to double it. When conservatives are in control the deficit is all right. They even like increasing it because it will limit spending. As soon a Clinton came in all they wanted to talk about was the deficit. Now it's the same with Obama. Talk about saying one thing and doing another! Listening to conservatives about the deficit is a farce. Do they think their lies are good for the country?

[mwangolatrue]

this is not about donkey or elefant.

Yes they had a deficit and they were idiots for the deficits, but Obama set a new record !

But Obama and Bush are the 2 irresponsable in this history.

[kusari86]

ReasonTV are liberterians. They criticized the Bush administration when they were in office also. Both parties are the same.

[bmcusick]

Reason isn't a conservative outfit. They're Libertarians. Learn the difference.

And to answer your question, it's NOT okay when Reagan and Bush ran deficits.

[arcanekrusader]

it wasn't.

[MooseOfReason]

cat00012000, No one said it was. Besides, they aren't in office right now.

[Betty5150]

Who said it was ok for Reagan and Bush to grow the deficits, are you some political partisan? This guy in the video, and most people who watch this, are not "conservative".

Tell me, does Bush screwing up, give Obama the justification, to do the things that made our economic problems happen(DEFICIT SPENDING)?See, this is the question you guys never answer. You just brush it away, because it's an uncomfortable thought.

Be opened minded,you political partisan. And don't buy the left/right thing

[cat00012000]

Give me a freaking break. Libertarians aren't partisan? If so then you aren't libertarian. You're way off on the right wing, and you know it. You're so far in denial you can't see straight. You like to pretend that you're different, but you're no different. We all have to live in the same world. Bush screwing up does give Obama all the excuse he needs. Clinton had a surplus. It's you worthless conservatives that can't pay your taxes or live within your means.

[TiaSaysSo]

The Clinton surplus is a fiscal illusion.The surplus means nothing because the debt under Clinton never decreased at all and infact increased.And no, Libertarians are not partisans to either Republicans or Democrats -because they are different only in rhetoric and not in practice: Republicrats.If you meant Libertarian are partisan to themselves,then Duh!

[Betty5150]

I remember you. You're the person who was completely ignorant when facing the fact that Obama is doing the same stuff as Bush. And I even wanted to debate you, and sent you a few messages on my position, and all you said, stop following me, not even engaing in the debate. My ideology is classical liberal/libertarian, but I'm not apart of the libertarian party. I believe political parties are posion.

And I'm not a conservative you jackass. I don't hate gays.

[cat00012000]

You're idea of a debate was a one sided lecture. It was like arguing with a post. When you call people names it's a pretty good sign you don't have much to say. Though you may like to think you do. And you don't have to hate gays to be conservative. Like I said it's like arguing with a post.

[Betty5150]

Pff, you're the guy who said something about Obama being a mastermind and making the economy recover a few months ago, and I said that you're wrong, unemployment is still going up, and we are borrowing more and more every day. I never once called you names in that debate, even though you didn't even have a rebuttal.

I "insulted" you here, because you assume I'm a conservative just because I oppose Obama, even though I'm a classical liberal. Yes, it was un-called for, I'll admit that.

[Betty5150]

And I'll debate you any time about Obama's economics, if you're up for it. And I'll be very open, and I'll maybe even learn something I didn't know. And I won't call you names. I have plenty of things to say, but am only willing to share them with you, if you present an argument that is relevant to them. But I doubt you'll want to debate. If you do, only bring facts, non of that "change is a progress, give it time".

[HBSchool]

1. See "Nolan Chart".

2. Consider LIBERal and LIBERtarian.

3. Read about Classical Liberalism.

4. Clinton did not in fact pay off all U.S debt and create a surplus. (See debt graph)

5. He also played with economic indicators among other things. (GDP, Employment).

6. You're reasoning is fallacious (stupid) as hell. Geitner, a democrat, does not pay his taxes. Charles Rangel, a democrat, does not pay his taxes.

[cat00012000]

You, a libertarian, make no sense, but that really wasn't your purpose. Was it? You just like to spout drivel and make yourself feel good.

[pizamoto]

I'm, not a Libertarian, but his post is spot on. Your drivel, is not.

How's that hopey changey thing goin' for ya' now?

R U better off now, than you were 1.42 TRILLION DOLLARS ago?

[cat00012000]

You can't even think up your own words? You have to use mine? First of all if you were at all interested in reality Bush built up that deficit. And Yes I'm sure as hell glad we are not still in the situation we were in. I guess you wish we were still under Republican rule. Can you even imagine where we would be now. I sure don't want to. Care to guess what the umemployment rate would be? The deficit would be a lot larger. Conservatives know that when they are in charge "deficits don't matter".

[sedatedlife18]

Apparently you live in a world where the budget ISN'T approved by congress. Newsflash! Bush's record breaking budget was approved by a democrat controlled congress. Oh look another Newsflash! The democrats still control congress and have more than trippled that record breaking budget defecit. Wow can you even spell the word delusional? Oh and just to make things clear, since you seem to need that, I'm not defending Bush's deficit spending. Just setting the record straight.

[cat00012000]

Apparently you live in a world where someone cares what you believe. It is very convenient to blame congress for what you don't like and then give credit to the president for what you do. As far as spelling goes I've got a few choice words you might like to try, but that would require continuing this which I have no desire to do.

[sedatedlife18]

Funny that you throw out words like "care" and "convenient". Obviously you do care what someone here thinks, maybe not me, otherwise you wouldn't have commented. Oh and how convenient is it for you to blame the obvious problems with this administration on the previous one? No that's just fact right? Jackass

[pizamoto]

You're an out of control child on a rant.

Save yourself and go home, now, before Roman Polanski is released.

[cat00012000]

I looked at the comments on your channel. It seems that you say that to all the guys, a one trick pony so to speak.

[HBSchool]

Does it make it any less true?

[cat00012000]

It just shows you for the fraud that you are. It would be stupid for anyone to pay the least bit of attention to you which makes me wonder why I'm responding. What I have to do is give you the last word so take your best shot as pitiful as it is.

[HBSchool]

1.You weren't replying to me.

2. My "activity" isn't public in my profile so you wouldn't know.

I simply asked if repeating something over and over makes it any less true. Does it Cat?

You're line of reasoning (logic) doesn't make any sense -for instance, saying something over and over doesn't make it untrue or fraudulent as you claim - think about it .

You're obviously daft, bent on saying as much stupid shit as possible, and you're more than welcome to go at anytime. What good are you?

[HBSchool]

Cat,

I wouldn't expect someone to know what a "Nolan Chart" is off the top of their head. You didn't need to rush your comment cat, you could have done a little reading, and then replied. Perhaps we can come to agreement on established facts.

For instance, the political science field hasn't seen a debate on the position of libertarians in years. 1976 was it?

Pick a number, any number, and I will explain it to you: libertarians, the history of YOUR parties philosophy, and even logic.

[Betty5150]

Ignore cat. He's a troll. He has NEVER provided any facts to support his claims. He lives in this world, where he can just say, Bush did it, Obama is fixing it, and that's fact to him. Never mind the fact that the treasury is STILL borrowing money to pay off the debt. That doesn't exists.

[stick1to2the3issue]

I have another one Reason! 1.4 trillion is enough to pay down this years budget deficit!

[NCMan28025]

We could pay off our $800 billion debt to China with that craptastic "stimulus" also. Sad but true.

[Elasaltaculos]

yeah, we should not worry about deficits.....  Unless we want the dollar to be worth a fuck in the next years

[NCMan28025]

The Candadian dollar is now on parity to the U.S. dollar. If it gets to the Mexican peso level..im leaving ;(

[MaladaptiveCatalyst]

$1.4 Trillion, what's that have to do with the price of wheat in Kansas?

[andristic]

favorited for common sense

[Yarcofin]

$4,600 per person doesn't actually seem like that much.... if it were actually going to the right things.

[arcanekrusader]

yeah, in the UK the deficit is £87,000 per household!!! That's about $30,000 per person (and you can be sure that's being wasted/stolen too). Have a nice time! :D

[zzx2847]

Spend baby spend!!

[GasFromDogButt]

We need some medieval laws, some public executions of lawmakers and Presidents for treason.

[darrellmellissa]

Im with you Gas

[nonantianarchist]

Why would the Chinese accept California? I would haggle for Alaska, Texas, or Florida (for vacation property) myself. Or we could sell them Canada. Yes, technically we don't own Canada, but what are they going to do about it? Stop shipping us maple syrup? *sarcasm, no offense intended to any Canadian citizen or person of Canadian descent. Well, not much anyway*

[HBSchool]

China wants Military technology and we're giving it to them. We gave them a 30 year leap during Clinton and we are preparing to give them another.

It's the least we could do (give up Top Secret information)... It's not like we could fight them anyway. Look at what the United States threatened to do with British and French debt during the Suez Canal "crisis". They could lay us to ruin without a single shot.

[nonantianarchist]

Yay! Zoloft for everyone!

[nonantianarchist]

$30,000 a year for elementary school? WFT? My college doesn't cost that much for out-of-state tuition.

[nonantianarchist]

But they HAVE to spend all that money too offset the profligate spending of the Bush years. It's quite simple: Democrats have a reputation as big spenders. George Bush stole that from them. And they're taking it back. But, of course, if the Republicans get back into power, they'll have their own shot at beating the Democrats' record....

[Betty5150]

Republicans have always been big spenders. It's a myth that they actually cut budgets. Reagan increased the deficit and federal government grew 51%+(something like that) under him.

Both parties are big spenders, because they think you can buy you're way out of the problem. Ya know, take the easy road out.

[nonantianarchist]

I know. My point was that they seem to be almost TRYING to one-up each other whenever they're in power.

[JohnJ2427]

Both parties are big spenders because the voters always want more. No one would vote for someone who would actually cut spending.

[oilhammer04]

Cloward-Piven Strategy at work for you.

[Freemarketeer81]

California is not a public good lol. So I don't think selling it is a viable option. Plus that's not my debt, I never asked those thieves to spend one dime. DON'T VOTE...it only encourages them.

[Amy31415]

Don't be ridiculous--it makes much more sense to sell Hawaii...

[soccom8341576]

That's true.

And every island in the Pacific that has a US military base on it. Then China would be fast-forwarded to become the military it has planned to become by 2049 - to be at the doorstep of every other nation.

That won't be popular to Americans.

The US is just going to have to resort to inflation, until the debt has a value of something you can pay for. Never underestimate the federal reserve's ability to crash the economy and reduce any asset value by astronomical proportions.

[soundmoneyfan]

When I talk about the magnitude of these numbers to girls that dont really care that much about what is going on, I use Oprah as my unit of measure. Oprah is worth about $1.1 to $1.2 billion, so TARP was a little under 700 Oprahs, and the deficit this year is over 1,200 Oprahs. It works even tho it is cheesy

[HymerSchmidt]

That's great, and it's hilarious.

[Re5Publica]

That's funny!