Fed Chair Jerome Powell on 60 Minutes: The US is on an unsustainable economic path
Fed Chair Jerome Powell on 60 Minutes: The US is on an unsustainable economic path
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It's a presidential election year; time for every single Republican to suddenly start talking about a "debt crisis" that for some reason didn't exist while they were running up record deficits to cut taxes for the wealthy.
Not just cut taxes for the wealthy but hand out $2T in cash to wealthy people/companies while us regular people collected the falling pocket change.
It doesn't change the fact that the US has an unsustainable growth in the national debt which continues every year. Broken clock right twice a day etc. The US spending more than it makes on a consistent basis is not good long-term. It's a bipartisan issue, both parties regularly approve budgets well above what we can afford.
Jerome Powell is the fed chair, he was nominated to the post by President Barack Obama in 2012, he was subsequently elevated to chairman by President Donald Trump (succeeding Janet Yellen), and renominated to the position by President Joe Biden.
Cool, why doesn’t he talk about eliminating the carried interest tax dodge for the wealthy?
Because he's being paid not to
He's also a bureaucrat, not an elected official who can change the tax laws. He literally has no standing when it comes to making laws.
He could certainly make a suggestion. Congress is the one that has us on an unsustainable path and he has no problem pointing that out; so why not a solution?
And elected officials would have a fit if he did, 'cause it'd be crossing into their legal territory.
The US spending more than it makes
The national economy of a global imperial power doesn't follow the same rules as your friend who's always broke a few days before pay day.
Talking about one like it's the other is either proof of ignorance or an obvious attempt to deceive.
You're right. We can spend more than we make forever. There will be no consequences to such a fiscal plan. Don't listen to Jerome Powell, he doesn't know what he's talking about.
National debt is not the same thing as spending more than you make.
Have you taken an economics class before?
How is it the federal debt and the public debt are perfectly aligned in that chart? Are those labels wrong? Am I missing something? Seems sus...
I believe this is where it's from. If you look up similar charts you'll see similar data. Most debt is publicly owned in the form of bonds, treasury notes, etc https://econofact.org/why-is-the-u-s-debt-expected-to-keep-growing
Short answer, I misunderstood. "Debt held by the public" sounds like my credit card debt, but it's not. That is (obvious now) private debt.
https://www.crfb.org/papers/qa-gross-debt-versus-debt-held-public
https://research.stlouisfed.org/publications/page1-econ/2020/03/02/making-sense-of-private-debt