$4 trillion federal deficit isn't the problem, it's how we're spending - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 61 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 51%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

A top economist says the $4 trillion federal deficit isn't the problem — it's how we're spending the money (by paulconstant)

, Professor Stephanie Kelton discussed Modern Monetary Theory, which rethinks the concept of government debt.

The current deficit could be put towards directly helping Americans, unlike stimulus money that's been directed to big business.When the United States went off the gold standard in 1971, our monetary system changed dramatically. Rather than fixing each dollar's worth to an established amount of gold, we adopted a floating exchange rate, and the nature of economics changed.

"We've been indoctrinated by the constant refrain that the government should put its fiscal house in order," Kelton explains. When they rage against the deficit, Kelton says trickle-downers who want to keep government as small as possible use "our understanding of our own personal finances" to convince us that government spending and the accrual of debt is "reckless and irresponsible.

"When the government's budget is in deficit, it simply means that the government is spending more dollars into the economy than it is subtracting back out, mostly through taxation," Kelton says. "So if the government spends a hundred dollars into the US economy, but it only taxes 90 of those dollars back out, we say the government's budget is in deficit."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inside the path to Dun & Bradstreet's $1.7 billion IPO - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Check out our article of a SoftBank company IPO tomorrow
Source: BusinessInsider - 🏆 729. / 51 Read more »

Inside Montenegro's Aman Sveti Stefan, where the rich vacation - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. For each virus headline, two more virus headlines grow. COVID19 is like the mythical monster Hydra. i stayed here back in 2018, it is amazing and worth every penny!!! 🥰🥰
Source: BusinessInsider - 🏆 729. / 51 Read more »

Wealthy Americans spending more time alone is reshaping the economy - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. FOREEE
Source: BusinessInsider - 🏆 729. / 51 Read more »

How I overhauled my spending and saving after COVID-19 upended my life - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

How Facebook boycott participants will change their spend - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »