Firing Line With Margaret Hoover: Maya MacGuineas & Robert Reich

Source:Firing Line With Margaret Hoover- left to right: Margaret Hoover, Maya MacGuineas, and Robert Reich.

"Former Labor Secretary Robert Reich and federal budget expert Maya MacGuineas discuss America's staggering national debt and what should be done about it." 

From Firing Line With Margaret Hoover 

"The Public Broadcasting Service (PBS) is an American public broadcaster and non-commercial,[1][2][3][4][5] free-to-air television network based in Arlington, Virginia.[6][7][8][9] PBS is a publicly funded nonprofit organization and the most prominent provider of educational programs to public television stations in the United States,[10][11][12][13] distributing shows such as Frontline, Nova, PBS NewsHour, Arthur, Sesame Street, and This Old House.[14]

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As of 2020, PBS has nearly 350 member stations around the United States." 

From Wikipedia

A few interesting points here: 

Maya MacGuineas (whose a real life fiscal Conservative, which is rare in Washington and perhaps in America as well) and left-wing economist Robert Reich (who I describe as a Democratic Socialist) agreeing that when the national debt and budget deficit, grows faster than the economy, (meaning economic growth) that is bad for the economy and the country as a whole.

Another interesting point being what Robert Reich said that it doesn't natter how much you borrow, just as long as that government borrowing is used for promote economic growth. And he said those government investments being things like infrastructure, job training, education, all things that I support, but I would disagree that you should borrow the money to pay for those investments. 

The other interesting point being that there's no set number as far as how large the national debt and deficit needs to be, even as a percentage of the economy. But with Maya MacGuineas with the great counterpoint being that we don't want to find out what that number is before out economy crashes because the American dollar is not worth anything and no one, including the U.S. Government can pay any of their bills.

My point for the Robert Reich's of the world: if deficits and debt doesn't matter (which is not what Reich said) then you don't need taxes. for anything that government actually does. Reich said in this interview that there is actually a limit to how much the U.S. Government can borrow before it's too much. But then he said that now is the time for more government borrowing, because the interest rates are now, which just begs a certain question and answer. 

Why are our interest rates so low? Because the Federal Reserve up until last year, kept them low. But then they started raising them last year to deal with high inflation and high borrowing, to deal with the rising national debt and deficit Part of President Biden's and the last Congress's social welfare package from last summer, was to deal with the national debt and deficit, the so-called Deficit Reduction Act.

Anyone who pays taxes and pays their own bills in general, knows that inflation, as well as the debt and deficit, have been major issues in the American economy the last two years. And the Fiscal Responsibility Act of 2023 deals with inflation, as well as the national debt and deficit. 

Again, if deficit and debt doesn't matter, then government, including the U.S. Government doesn't need taxes for anything, because it now has unlimited borrowing authority. And no serious economist actually believes that even the Uncle Sam's government, has unlimited borrowing authority.

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