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Debt Limit Funny

Yep, pretty much; right to the very end. Especially at the very end.

Comments

  1. Unfortunately most people will not understand or accept the premise of the video.

  2. Probably a waste of typing here, but it is a logical fallacy to directly compare personal debt with government debt. So what’s the point of the video?

  3. I enjoyed the video but for different reasons. I think it exposes the myth that attempts to equate public and private debt. Individuals in the US face spending constraints, the US government does not. I should be careful to say that I;m not advocating spending willy-nilly; all I’m saying is that under the current monetary system, where the public sector is the issuer of currency, there is no solvency constraint at the government level as there might be for households or states.

    If only more people understood the difference between private and public debt politics and economics would be better off. Instead, the myth continues to be propagated and those in charge continue to make policy recommendations based on a fundamental misunderstanding of modern day economics. The other myth that gets thrown around is comparing US debt to Euro debt and concluding that the US economy is on the brink of financial collapse.

    I’m from Australia, so I;m looking at this from a different vantage point (and perhaps I don’t know all the ins and outs of how the debt ceiling works) but to me it seems like a silly, political tool that does more harm than good.

    - It’s silly because the debt that was issued to fund the spending was previously mandated by congress. In other words, congress debated and voted on the spending that resulted in the issuance of debt to fund the spending.
    - If the government’s concern is to cut spending they should do so via normal legislative means and stop holding the economy hostage every few months.

  4. Since we’re on the subject of yooutube and economics, everyone who liked that vid should watch these two:

    “Fear the Boom and Bust” a Hayek vs. Keynes Rap Anthem
    http://www.youtube.com/watch?v=d0nERTFo-Sk
    Fight of the Century: Keynes vs. Hayek Round Two
    http://www.youtube.com/watch?v=GTQnarzmTOc
    (skip to the 1-min. mark)

  5. “but it is a logical fallacy to directly compare personal debt”

    Good, because it doesn’t and is why I view both yours and Alexe’s comments as non-sequitur diversions from the _principles_ the video is designed to illustrate for people who don’t deal in non-sequitur diversions and know apples and oranges when they see them and the difference between the two, but more importantly, the principle similarity.

    But y’all go right on pretending that it’s just too complex, or whatever.

  6. But Nikoley, don’t you know? Has no one told you? …
    You see it’s all about spending, hear the register cha-ching.
    Circular flow, the dough is everything.
    So if that flow is getting low, doesn’t matter the reason.
    We need more government spending, now it’s stimulus season.
    So forget about saving, get it straight out of your head.
    Like I said, in the long run—we’re all dead!
    Savings is destruction, that’s the paradox of thrift
    Don’t keep money in your pocket, or that growth will never lift…

    Can’t argue with that flawless piece of logic right there…