Milton Friedman - Deficits and Government Spending

[rinopw]

Basically don't worry about the debt but worry about what causes the debt

[thomasjust]

Part of the problem is that when people are stuck in tough patch, like the pandemic or a recession, most expect, the government to bail them out, they expect the government to be some sort of insurance against any disaster, instead of saving or tacking precautionary measures, this includes the private sector, When both Bush and Obama rescued the banks and companies like GM, the industry got the message that if you are big enough big daddy government will come to the rescue

[mh]

I am glad my teacher recommended this video.

[holidayman]

The debt is now closing in on $30 trillion

[OneGenericName]

True then, and still true now. No one listens and history repeats itself.

[LovingPrinceTamayuki]

3:47
The priceless look on his face when he realizes what Milton Friedman is suggesting. 😂😂😂

[barryweiss]

He didn’t seem to care about insulting them

[fzqlcs]

Only Rand Paul would reduce government spending. Everyone under 35 should vote for him for no other reason than that.

[johntighe]

The latest stimulus bill was 1.9 trillion. The Iraq war cost taxpayers between 1.9 and 2.4 trillion. The debt is not the issue, it’s how the money is spent. Milton was a outspoken critic of the gulf and Iraq wars. There’s no telling how he would feel about pandemic assistance but he did advocate for lower taxes. I think he would agree tax credits and direct checks may be the best way to stimulate the economy.

I don’t think the majority of y’all are picking up what Milton is putting down.

[mastershredder]

Bruh, everything that milton has said has fallen on deaf ears. You could even say that they were listening but just did the opposite.

[shadrana]

They'll eventually be forced to run the inflation and dilute the real value of the debt through the inflation.Dishonesty of the first order.

[blurglide]

Milton is the man, but I'll be devils advocate here just to get a conversation rolling. If government spends 50, weather it's on a new airplane or by handing it out to someone else, that money ultimately is spent on privately owned companies or by private individuals....just in a very inefficient way.

[fdelio]

How does he reckon that interest payments have no cost on 'resources'?? What is his definition of resources? Surely any kind of payment in currency is just a representation of a physical resource like labour or materials. If that payment is going to foreign bond holder then that is a resource cost. Maybe I'm just misunderstanding it, please enlighten me.

[TheRoamingWatcher]

The us is the issuer of the ioy thats redeemed through taxation he confuses states with federal. Why would the issuer.for the currency use taxes for spending. When spending. Into the economy. Pays people who pay. Taxes at the state level where. It pay for state level programes what sense does. That make and apparently he never read article 1 section 8 he gets "Macro" and "Micro" confused.

[thetrashmaster]

To simplify:
(Numbers are way out, just think of them as percentages)
I make $100 a year, I spend $50 on taxes and $25 on food,
I have $25 left, I want to buy a $50 car, If I buy a $50 car I will be able to become a taxi and thus make $200 a year, which means I need to borrow $50 so my budget this year will end up being -$50, but next year I'll make $200 which I can pay back, meaning for a short time i had a negative bank account but now I make much more than I did before.

In short, a budget deficit isn't always bad, however, better money management would allow us to make more, For example, the USA would save billions of dollars if it cut spending on the military and spent it on improving healthcare. Similarly, Australia would benefit in building more cities to allow for a bigger population and Canada would benefit from getting more immigration.

Short term, it may look bad, but in the grand scheme of things, we are doing well. It's all about good debt vs bad debt.

[TheRoamingWatcher]

Interest rate payments are paid on us treasurys a literal savings account at the fed.

[aliendroneservices]

2:50 People don't understand that Milton here is arguing for *_UBI._*

[merrileemcdonald]

So the debt is the symptom of the problem

[noelnoel]

Giving more dept (deficit spending) to a business already not paying back their first loan, not paying their dept (deficit spending). Loaers that can't be paid back, dept to their society.

Deficit spending, loaning out money that they already borrowed money they didn't pay back in the first place.

When the working-class doesn't pay back loans. The next loan is at a higher interest rates. A higher "tax" the next time, to pay back the first defaulted loan.

Not raise everyone's intrest rates to pay for other people's bad balanced budget. A common account.

Itemized everybody's taxes. To keep track of everyone's individual balanced budget


If there's going to be any deficit spending, it's going to be on government jobs. Then this free money is earned by a paycheck. Then any private sector companies earn that money by earning that spending habits of said government employee. Everyone's earning their way. No free deficit spending. The deficit spending is going to a government earned income.

Those government jobs are investing in future returns. Say futurewater coming to my house. Than I will be billed. To pay back this water infrastructure.

No free bailouts.

[gaozhi]

2023: $32 Trillion. We can't vote our way out of this.