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All Else Equal: Making Better Decisions

Ep47 “Is the US National Debt Sustainable?” with Mohamed El-Erian

Sep 18, 2024
Mohamed El-Erian, former CEO of PIMCO and chair of the president's Global Development Council, discusses the sustainability of the US national debt. He explores alternative measures of debt, beyond the debt-to-GDP ratio, and emphasizes historical context and investor confidence. El-Erian highlights the economic challenges posed by demographic shifts and the role of technological advancements like AI in shaping future growth. The conversation raises critical questions about inflation targets and the interplay of national debt with geopolitical stability.
35:36

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Quick takeaways

  • Assessing the sustainability of the US national debt requires understanding various metrics beyond just the debt-to-GDP ratio.
  • Demographic shifts and technological advancements are critical factors influencing economic growth and the implications of rising national debt.

Deep dives

New Beginnings at the Lauder Institute

The Lauder Institute at the University of Pennsylvania has announced a new leadership appointment, with Jules van Binsbergen as the new director. The institute offers a unique joint degree program combining an MBA from the Wharton School with an MA in international studies, aimed at preparing students for roles as global business and political leaders. This partnership with the All Else Equal podcast highlights the relevance of finance and global management concepts to contemporary geopolitical and economic challenges. The discussion reflects a commitment to cultivating skills that meet the demands of today's world.

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