Public Forum – January 2019 – Federal Debt Reduction

We owe you an explanation of the national debt that will hold your interest. Get it? Interest? Anyway, here’s the video. (LD will be posted early next week.)

TIME STAMPS:

Basic Concepts 6:35
Framework and Definitions 28:07
Pro Arguments 44:55
Con Arguments 1:02:14
Final Thoughts 1:18:59

SOURCES:

New York Times 2018 (Great overview of debt in current policy context): https://www.nytimes.com/2018/02/09/upshot/the-era-of-fiscal-austerity-is-over-heres-what-big-deficits-mean-for-the-economy.html

United States Debt Clock: http://www.usdebtclock.org/

Committee for a Responsible Federal Budget, Actual 2018 Deficit Numbers (Oct. 2018): http://www.crfb.org/blogs/treasury-2018-deficit-was-779-billion

The Hill, 2019 Deficit Projection: https://thehill.com/homenews/administration/397445-white-house-budget-projects-1-trillion-deficit-in-2019

The Balance, Who Owns the U.S. National Debt? (December 2018): https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124

A Solid, Brief Summary of Keynesian Theory from IMF: https://www.imf.org/external/pubs/ft/fandd/2014/09/basics.htm

Keynes vs. Hayek “Fight of the Century” Rap Battle: https://www.youtube.com/watch?v=GTQnarzmTOc

Heritage Foundation, How the Debt Will Weaken the Economy (2013): https://www.heritage.org/budget-and-spending/report/how-the-united-states-high-debt-will-weaken-the-economy-and-hurt

Caner, Grennes, Kohler-Geib, Finding the Tipping Point: When Sovereign Debt Turns Bad (2010): http://siteresources.worldbank.org/INTDEBTDEPT/Resources/468980-1238442914363/5969985-1295539401520/9780821384831_ch03.pdf

CRFB, Can the Budget Be Balanced Without Cutting Social Spending? (2015): http://www.crfb.org/blogs/budget-can-realistically-be-balanced-without-touching-social-security-or-medicare

NYT, What Could Raising Taxes on the 1% Do? (2015): https://www.nytimes.com/2015/10/17/business/putting-numbers-to-a-tax-increase-for-the-rich.html

Peter G. Peterson Foundation, Summary of Actual Plans to Reduce the Debt: https://www.pgpf.org/finding-solutions/comprehensive-plans

CBO Debt and Deficit Projections Through 2048 (Full Analysis): https://www.cbo.gov/system/files?file=2018-06/53919-2018ltbo.pdf

CBO Projections at a Glance (with money quotes on future harms): https://www.cbo.gov/publication/54477

CBO Budget Projection Slides (contains specific interest rate projections at slide 9) (Also, slide 22 has a nice “solution” scenario for reducing debt to GDP growth): https://www.cbo.gov/publication/54472

The Balance, Explaining How U.S. Treasury interest rates affect private interest rates: https://www.thebalance.com/how-are-interest-rates-determined-3306110

The Balance, On Greek Austerity Measures: https://www.thebalance.com/austerity-measures-definition-examples-do-they-work-3306285

2011 U.S. Army War College Thesis on Debt as National Security Threat: https://apps.dtic.mil/dtic/tr/fulltext/u2/a564995.pdf

Brookings Institution 2012, The Real National Security Threat: America’s Debt: https://www.brookings.edu/opinions/the-real-national-security-threat-americas-debt/

James Buchanan, The Deficit and Our Obligation to Future Generations (1987): https://imprimis.hillsdale.edu/the-deficit-and-our-obligation-to-future-generations/

Mises Institute, Deficit Spending is a Moral Issue (2017): https://mises.org/power-market/deficit-spending-moral-issue

Rich Roberts, Medium, Do the Rich Capture All the Gains from Economic Growth? https://medium.com/@russroberts/do-the-rich-capture-all-the-gains-from-economic-growth-c96d93101f9c

Forbes, Federal Debt Is Reaching $20 Trillion & That’s Not A Bad Thing (2017): https://www.forbes.com/sites/michaelfoster/2017/11/08/federal-debt-is-reaching-20-trillion-and-i-dont-care/#b324f0f32ba4

Frances Coppola, Forbes, (Basically Summarizing Why Debt Isn’t A Problem) (2018): https://www.forbes.com/sites/francescoppola/2018/04/17/everything-youve-been-told-about-government-debt-is-wrong/#2d885306314f

Center for Budget and Policy Priorities on why balancing the budget would be disastrous (2018): https://www.cbpp.org/research/federal-budget/constitutional-balanced-budget-amendment-poses-serious-risks

Economic Policy Institute, A Balanced Budget Amendment Would Be Extraordinarily Dangerous for the Economy (2018): https://www.epi.org/blog/a-balanced-budget-amendment-would-be-extraordinarily-dangerous-for-the-economy/

Alice Rivlin, Congressional testimony on why growth and debt reduction must go hand in hand (2013):
https://www.brookings.edu/testimonies/growing-the-economy-and-stabilizing-the-debt/

New York Times, Storm Clouds on the Horizon for American Economy (November 2018): https://www.nytimes.com/2018/11/28/us/politics/us-economy-health-recession.html

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