Lesson 1 National Debt & Budget Deficit Explained

Find more about debt to GDP ratio in other nations at the CIA Factbook http://bit.ly/dcZPI Also please read the book "Basic Economics" http://bit.ly/lr4H

Category:

News & Politics

Tags:

• National Debt
• Budget Deficit
• Public Debt
• Obama Budget

[m16adabest]

Thanks for the informative video! I learned some interesting things from listening to it.

[MagicNo7]

Knowledge is power! I'm looking forward to upgrading my "Schoolhouse Rock (TM)" education on economics with this series. Thanks!

[TheFashionforward5]

Your video is so wrong.

The National Debt=every dollar that is circulating in the economy at a given time.

As the economy grows more currency is required by more participants (population growth).

Compare a chart of the National debt to the notional value of GDP and you will see that they grow side by side almost exactly.

Don't "educate" people if you don't know what you are talking about.

[TheFashionforward5]

Your explanation of the National Debt is WRONG. The Fed does not borrow money to bridge the deficit gap.

They simply credit the required accounts electronically.

The bond market fucnctions as a means to control interest rates and inflation.

The Fed can pay off all bonds at any time because they can create currency out of thin air.

The only risk in doing this is inflation.

Please stop perpetuating economic falsehoods.

[buisyman]

@tommym202 Yes, sort of. it's actually calculated on a monthly basis (which, under President Obama gets revised at least twice), and then totaled and averaged.

[buisyman]

@TimothySmithMIPM No, that's not exactly what you said. READ your words, my fine young friend. Remember, there never was a "social security lock box". FDR started Social Security as an extra tax to pay off the war debt. I think President Obama spends like a woman on coke and caffeine. he has now surpassed Carter as the worst President in history.

[TimothySmithMIPM]

@buisyman ?? How do you figure, that is EXACTLY what I said and mean by stating "During Clinton, Social Security took in way more than it paid out"

Again, EVERY administration since Nixon, and maybe even before then too, has masked the real deficit by adding the take from social security into the general funds taken in. So what is your take on Obama's $1.3 Trillion+ deficits??

[buisyman]

@TimothySmithMIPM You're missing 1 basic fact in your equation. the fact that theree were a lot less people drawing social security in the '90's, and more people were paying in.

[buisyman]

@tvalerianopereira Is that the only argument you can come up with? Name calling? You've got no facts, so you name call. You lose right there, buddy.

[buisyman]

@iamtang0 Where's the bias? Japans problems stem from their protectionist policies. No economic growth. Obama's "tax the rich" policies will do the same here. In 2008, Candidate Obama said that President Bush adding 4 trillion dollars in 8 years to the National Debt was un-american. Well, what about President Obama adding over 5 trillion in less than 3 years?

[buisyman]

In February, 2012 (right now), the US debt to GDP ratio exceeds 100%. Is President Obama turning us into Greece? Apparently so.

[iamtang0]

and failed to stimulate their economy effectively.