TED: Stephanie Kelton: 'The Big Myth of Government Deficits'

Source:TED- economist Stephanie Kelton.

"Government deficits have gotten a bad rap, says economist Stephanie Kelton. In this groundbreaking talk, she makes the case to stop looking at government spending as a path towards frightening piles of debt, but rather as a financial contribution to the things that matter -- like health care, education, infrastructure and beyond. "We have the resources we need to begin repairing our broken systems," Kelton says. "But we have to believe it's possible."

From TED 

"Vice-president Dick Cheney famously boasted, “Reagan proved deficits don’t matter.” He was wrong.

Deficits do matter, but not the way we’ve been taught to believe. We’ve been told that China is our banker and that Social Security and Medicare are pushing us into crisis. We’re told the U.S. could end up like Greece and that deficits will burden future generations. These are all myths.

Deficits can be used for good or evil. They can enrich a small segment of the population, driving income and wealth inequality to new heights, while leaving millions behind. They can fund unjust wars that destabilize the world and cost millions their lives. Or they can be used to sustain life and build a more just economy that works for the many and not just the few." 

From Stephanie Kelton 

I've blogged about this before on The New Democrat: 

"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." 

Stephanie Kelton makes one good point here. I don't completely agree with it, but she's right about inflation where she says and I'm paraphrasing: 

"It's inflation that matters, not deficits. When inflation becomes a problem, (like right now) that's when you know your deficit is too high."

Well, guess what, when you run trillion-dollar deficits every year (and we've been doing that since 2020) inflation will be a problem. 

Inflation is what the Federal Reserve worries about the most. Raising interest rates, which can also be a big problem for middle class consumers, is the Fed's way of telling Congress and The White House, that your deficits are too high and you need to get them down for the sake of the economy. The Fed fights inflation by raising interest rates. 

Higher interest rates, makes it harder for not just government's to borrow money, but everyday Americans as well. This is money that could be sued to buy an apartment, a house, start a new business, expand a current business, buy a new car, save money for college, etc, all very important features in the American economy. 

When interest rates are high, the average American, (which is most of the country) can't afford to borrow money for things that they need to do to live well. When inflation is too high, the basic necessities in life become too expensive for most Americans. 

Deficits don't matter? Try convincing average Americans who work very hard everyday just to pay their bills, that their government's deficit doesn't matter and that inflation an high interest rates are just a myth. 

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TED: Barbara F. Walter: Is The US Headed Towards Another Civil War?

Source:TED- democracy expert Barbara F. Walter speaking.

"Based on her work for a CIA task force aimed at predicting civil wars, political scientist Barbara F. Walter examines the rise in extremism and threats to democracies around the globe -- and paints an unsettling picture of the increasing likelihood of a second civil war in the United States." 

From TED

Is the United States headed to a civil war? Interesting question, but there is no easy answer to that. Are we going to have a civil war even within the next 10 years or so? I would still say of course not and I'll explain that later.

I'll just explain why I don't think America is actually in danger or having a civil war in the near future. 

I think you should look at the possible factions in America that could start that war, if they were actually serious about that. 

You could look at the so-called Far-Left in America (Socialists and Communists) people who are always claiming that America is racist, sexist, homophobic, materialistic, overprivileged, etc. They always are the first to say what a hellhole (or use stronger language than that) America is and are saying how much America sucks and that we should be like Europe, not just ethnically and racially (as we are now) but politically as well. And are the first people to say that they will leave America, if so and so is elected, but then actually never leave the country. 

I think the main problem with assuming that the Far-Left would start a civil war against the U.S. Government, is that they don't believe their own bullshit. (To be frank) I'm sure there are some real Socialists and Communists in America who at the very least, tend to believe what they say. 

But far-leftists in America by in-large are just political hipsters who think it's cool to put down America down from a left-wing perspective. But as they're doing that, they're drinking their capitalist coffee house coffee, capitalist alcohol, looking at their capitalist smartphone and laptop, hanging out in the most yuppie and overprivileged parts of America, with the most yuppie and overprivileged Americans that you could dream of, enjoying American liberal democracy and capitalism as much as everyone else. So don't expect the Far-Left to start an American civil war. 

People, especially in the so-called mainstream media, always look at the Far-Right, people who are called Christian Nationalists. But the fact is there's nothing very religious, or even Christian about thee folks by-en-large, at least not in the classical and traditional sense. Just saying Jesus Christ is your lord and savior, doesn't make you Christian or religious. You actually have to believe in and practice the values of Jesus and Christianity, to be a real Christian. 

The other thing with the Far-Right (and there are exceptions to every rule) is that they tend to be the biggest loser of the losers in this country. People who are not very educated, tend to have at least done some time in prison and are at least somewhat familiar with the criminal and justice system, who in a lot of cases were kicked out of mainstream society because mental issues, or for being prone to violence and end up in some militia/cult, because these are the only groups that would accept them and welcome them in their community. 

The folks on the Far-Right, simply don't have the resources, including money, but training, education, and experience, to take on the most powerful uncle in the world, meaning Uncle Sam. Every time they do, they end up doing long stretches in prison. Just look at 2021 insurrection, or Tim McVeigh from 25 years earlier, and there are a lot more examples like that.

Every free society has fringes in it that would like to see their country be a lot freer and perhaps even take over the government, if they could do that. But one of the things that makes America exceptional, is we love freedom so much and have created government that's simply in the business to defend our freedom, as well as rule of law, and limited government, and our other great liberal democratic values, that most American cherish, but perhaps take for granted too much.

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TED Talks: Mara Pavula- 'If You Think Politics is a Circus, Think Again'

Source:TED- Mara Pavula, speaking to TED.

"Would you say that sometimes political processes can become… a circus? Consider this the next time you want to use this metaphor — in reality, the circus is a tight-knit community of hardworking individuals with a deep trust in one another.

"The circus’ diverse history can teach us a lot about cultivating a diverse and inclusive society — Māra Pāvula, a facilitator of contemporary circus in Europe — shows us how. Mara is an enthusiast of a very unique and special culture - that of contemporary circus. She had been studying Intercultural Relations between Latvia and France when in 2012 Mara headed to Paris to fulfill her dream of entering the circus world, as France had always played an important role in the evolution of contemporary circus culture.

"While studying her Masters in University 8 of Paris, she established “Next Door Circus”, a platform dedicated to contemporary circus in the Baltics. Since 2013 she has been co-organizing the contemporary circus festival Re Riga! In 2016 Mara returned to Latvia, established the artist residency program "Sansusī", and continued her research and production activities. As of  September 2017, Mara has been running the Riga Circus School, a platform that provides amateur and professional educational activities as well as audience development strategy under the Riga Circus."

From TED Talks

According to Google a circus is: "a traveling company of acrobats, clowns, and other entertainers which gives performances, typically in a large tent, in a series of different places."

Now think about the U.S. Congress for a moment and then I suggest to you return to your real world where you can maintain your sanity: you're talking about 535 members of Congress that work in two chambers, that travel to Washington and around the rest of country giving performances, ( that they call speeches ) what members of Congress from both the House and Senate do for a living at taxpayers expense, doesn't look much different from a professional circus. You're talking about people who come to Washington from all over the country to work and then go home 1-2 times a month sometimes less than that, depending on where they actually live and how important in Congress that they are. Plus whatever other responsibilities that they have to their party.

Trust me: ( even it's just for a second ) I actually don't get pleasure from making fun of members of Congress or any other group of politicians that American taxpayers are forced to pay for the lack of services that they receive from these people. There are at least 100 other things that I rather do. But sometimes you have to call a dog, a dog and a cat, a cat. You need to cut through the bullshit ( pardon my language ) and call things what they are.

Calling American politicians by enlarge and there are some good people who are paid at taxpayer expense who are actually good, intelligent, productive people, including politicians, but politicians as a profession look like not much more than a large group of performers. Except that every taxpayer in America is required to pay these performers salaries.  

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