2min snip

"Econ 102" with Noah Smith and Erik Torenberg cover image

The Vibecession & the Future Economy under Trump vs Biden with Kyla Scanlon

"Econ 102" with Noah Smith and Erik Torenberg

NOTE

The Impact of Interest Rates on Government Borrowing

Government borrowing led to increasing interest costs, causing a strain on the federal budget. Efforts to cut the deficit faced challenges in the past, with moves towards austerity and spending cuts under different administrations. The statement 'Reagan proved deficits don't matter' highlighted a period of low interest rates, influenced by decisions made post-9/11. The prolonged period of low-interest rates continued post-Great Recession until 2022.

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