8 Myths About Federal Debt

Hopping Mad with Will McLeod & Arliss Bunny

16 May 2019 – I promised you that in our next show I would get into the myths about Federal debt. This is that show. In addition, Will talks about why we should be going into space – for real. Some of the ideas sound crazy but I think there is enormous value in doing the work that takes us down those paths, regardless. There is so much possibility, why would we not get serious? At the top of the show we touch on the new agreement, between the UK and the Republic of Ireland, to establish a common travel area. Granted, this is a weak tea solution but it’s not nothing.

In case you want a quick list of the eight myths about Federal debt which I cover, here goes:

1. Carrying debt is bad for the Federal government
2. And the corollary, Federal surplus is good (this article provides perspective)
3. The Federal government uses our taxes to “pay for” government spending
4. There is a fiscal cliff
5. Passing Federal debt on to future generations is bad
6. The Federal government issues Treasury bonds (debt) to fund spending
7. Federal debt “crowds out” investors (Stephanie Kelton crushes Paul Krugman on this subject here.)
8. When all else fails, gibberish explains why debt is bad (a special thank-you to JD Alt for this one!)

We have been busy but we will keep trying to fit shows in as often as we can. Like carrots, there are so many topics and so little time! Cheers! – Arliss