"Econ 102" with Noah Smith and Erik Torenberg Fixing the US Economy: the Debt, Inequality, Biden/Trump Economic Predictions
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Apr 10, 2024 Dive into a lively conversation about the U.S. economy, tackling topics like government spending and the looming national debt. Discover the complexities of wealth taxes and the potential effects on economic inequality. The hosts unravel the nuances of tax rates and their real impact, making a case for improving IRS funding over simply raising taxes. They also explore cultural perceptions of respect across economies, pushing for a society that honors all contributions, regardless of financial status. It's a thoughtful take on crucial economic issues!
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Great Recession Stimulus
- During the Great Recession, the US implemented deficit spending with the ARRA stimulus.
- However, due to austerity measures, the recovery wasn't as robust as some economists, like Paul Krugman, had hoped.
National Debt Concerns
- The national debt becomes a problem when interest rates rise, increasing the cost of servicing the debt.
- This can crowd out other budgetary priorities, as seen in the early 1990s when interest costs reached 3% of GDP.
Debt Reduction Strategies
- Reducing the national debt requires raising taxes and cutting spending.
- However, political factors and the potential need for increased military spending complicate these efforts.