Dem Rep. Yarmuth: We Don’t Need to Pay for Our Proposals, Debt, ‘We Are Like the Banker in Monopoly, We Create the Money’

The other question comes ░░░░░░░░ you can t find ░░░░░░░░ resources to do it ░░░░░░░░ do you do and ░░░░░░░░ is part of a ░░░░░░░░ longer topic that I ░░░░░░░░ not going to discuss ░░░░░░░░ this country because we ░░░░░░░░ our own currency and ░░░░░░░░ we borrow and spend ░░░░░░░░ our own currency we ░░░░░░░░ pay for whatever we ░░░░░░░░ to pay for we ░░░░░░░░ tell the treasury to ░░░░░░░░ the bills you write ░░░░░░░░ checks when the bills ░░░░░░░░ in and say well ░░░░░░░░ about the debt 28 ░░░░░░░░ dollars uh are you ░░░░░░░░ that on our grandkids ░░░░░░░░ we re not we ░░░░░░░░ not this is standard ░░░░░░░░ will say conservative rhetoric ░░░░░░░░ even some Democrats well ░░░░░░░░ re putting it on ░░░░░░░░ kids credit card we ░░░░░░░░ been accumulating debt in ░░░░░░░░ country for 230 years ░░░░░░░░ one person has ever ░░░░░░░░ asked to pay for ░░░░░░░░ or her grandfather s ░░░░░░░░ right never happened they ░░░░░░░░ saying this I m ░░░░░░░░ when the national debt ░░░░░░░░ 1 billion dollars under ░░░░░░░░ linc I know they ░░░░░░░░ saying it when it ░░░░░░░░ a trillion dollars under ░░░░░░░░ Reagan because I was ░░░░░░░░ heard all that stuff ░░░░░░░░ there so a trillion ░░░░░░░░ under Reagan it s ░░░░░░░░ 28 trillion has anybody ░░░░░░░░ asked to pay part ░░░░░░░░ that debt no because ░░░░░░░░ don t have to ░░░░░░░░ again we have a ░░░░░░░░ currency we are not ░░░░░░░░ businesses we are not ░░░░░░░░ families we are not ░░░░░░░░ state governments we are ░░░░░░░░ like local governments we ░░░░░░░░ t have to balance ░░░░░░░░ checkbook we are like ░░░░░░░░ banker and monopoly we ░░░░░░░░ the money we hand ░░░░░░░░ the money everybody else ░░░░░░░░ the game with it ░░░░░░░░ are one of only ░░░░░░░░ 10 countries in the ░░░░░░░░ who are positioned to ░░░░░░░░ it that way U ░░░░░░░░ is one United Kingdom ░░░░░░░░ Japan Brazil there are ░░░░░░░░ few but not very ░░░░░░░░ the European Union can ░░░░░░░░ because they should we ░░░░░░░░ and so um I ░░░░░░░░ give you one recommendation ░░░░░░░░ sheriff s question there ░░░░░░░░ a book called the ░░░░░░░░ myth the deficit was ░░░░░░░░ by a woman named ░░░░░░░░ Kelton and it is ░░░░░░░░ the best exposition and ░░░░░░░░ about what s called ░░░░░░░░ monetary theory and modern ░░░░░░░░ theory is exactly what ░░░░░░░░ just described when you ░░░░░░░░ someone currency you can ░░░░░░░░ do whatever you want ░░░░░░░░ whatever you want the ░░░░░░░░ constraint on your spending ░░░░░░░░ you can t put ░░░░░░░░ money into the economy ░░░░░░░░ the economy can restore ░░░░░░░░ theoretically let s say ░░░░░░░░ wanted to give every ░░░░░░░░ a 200 000 voucher ░░░░░░░░ buy a house we ░░░░░░░░ do it you can ░░░░░░░░ out the money create ░░░░░░░░ money um what s ░░░░░░░░ problem with doing that ░░░░░░░░ what would happen buy ░░░░░░░░ house obviously there would ░░░░░░░░ been a house prices ░░░░░░░░ go through the roof ░░░░░░░░ would make that voucher ░░░░░░░░ much worthless for a ░░░░░░░░ of people so that ░░░░░░░░ the constraint but what ░░░░░░░░ happened is that over ░░░░░░░░ last 30 years you ░░░░░░░░ the Milton Friedman school ░░░░░░░░ economics which basically is ░░░░░░░░ we ve all been ░░░░░░░░ under that period of ░░░░░░░░ years if it s ░░░░░░░░ to be not true ░░░░░░░░ mean we ve consistently ░░░░░░░░ The National debt we ░░░░░░░░ not had any serious ░░░░░░░░ in the country we ░░░░░░░░ very low interest rates ░░░░░░░░ low interest rates in ░░░░░░░░ of the federal government ░░░░░░░░ borrowing costs and uh ░░░░░░░░ dollar has basically been ░░░░░░░░ other currencies as it ░░░░░░░░ been historically um people ░░░░░░░░ oh well in the ░░░░░░░░ s budget if we ░░░░░░░░ debt to GDP would ░░░░░░░░ 117 it s the ░░░░░░░░ it s ever been ░░░░░░░░ country s history well ░░░░░░░░ s true but Japan ░░░░░░░░ their debt to generation ░░░░░░░░ 240 more than twice ░░░░░░░░ they have zero interest ░░░░░░░░ on their bonds they ░░░░░░░░ t have any inflation ░░░░░░░░ they re not an ░░░░░░░░ comparison they have their ░░░░░░░░ problems but the point ░░░░░░░░ that there are more ░░░░░░░░ more people more economists ░░░░░░░░ you know perhaps we ░░░░░░░░ been looking at this ░░░░░░░░ issue of debt what ░░░░░░░░ means and one of ░░░░░░░░ people is Jay Powell ░░░░░░░░ chairman of the Federal ░░░░░░░░ who is not a ░░░░░░░░ Democrat he is a ░░░░░░░░ appointee and there are ░░░░░░░░ lot of economists saying ░░░░░░░░ now that we need ░░░░░░░░ start looking at this ░░░░░░░░ because it uh is ░░░░░░░░ the last several decades ░░░░░░░░ anyway that book the ░░░░░░░░ now if you want ░░░░░░░░ have it s a ░░░░░░░░ read it will I ░░░░░░░░ you it will change ░░░░░░░░ way you thought about ░░░░░░░░ and uh may not ░░░░░░░░ think that relying on ░░░░░░░░ is a good idea ░░░░░░░░ I was a total ░░░░░░░░ when I started studying ░░░░░░░░ but anyway I just ░░░░░░░░ to self create summer ░░░░░░░░ not exactly Music but ░░░░░░░░ s written very much ░░░░░░░░ a lay audience it ░░░░░░░░ not really for economists ░░░░░░░░ anyway with that I ░░░░░░░░ say that s what ░░░░░░░░ going on in Washington ░░░░░░░░ it s going to ░░░░░░░░ an interesting uh year ░░░░░░░░ and a half and ░░░░░░░░ I look forward to ░░░░░░░░ very much involved in ░░░░░░░░ major major issues so ░░░░░░░░ s have questions