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Platypus Economics with Justin Wolfers Podcast
Should We Actually Be Worried About the National Debt | Diving In

Should We Actually Be Worried About the National Debt | Diving In

Platypus Economics with Justin Wolfers vor 3 Monaten

0:00

15:28

In this opening episode for Platypus Economics, Justin Wolfers
explains why the federal budget deficit is one of the best
examples of how economics can clarify a debate that politics
often mangles. The central point is simple: deficits are not
automatically good or bad, but a tool. And the only serious
question is whether borrowing makes sense given the economy, the
emergency, and the country’s ability to pay.

In a crisis, large deficits are often smart policy—stabilizing
incomes, supporting jobs, and keeping an economic downturn from
becoming a disaster. But today’s U.S. deficit is different.
America is currently running a very large deficit—about 5.8% of
GDP—without the usual crisis justification. The stakes are not
instant collapse, but a slower erosion of fiscal capacity,
institutional credibility, and the ability to spend on things
that could actually improve your life.

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