Deficit Owls | How Did Bill Clinton Almost Force Socialism On America?? @deficitowls5296 | Uploaded October 2016 | Updated October 2024, 9 hours ago.
Professor Jan Kregel explaining how Bill Clinton's fiscal policy almost turned America into a socialist nation! This is only a minor exaggeration. If the federal government were to eliminate all of its debt, this would reduce the net financial assets held by the private sector. At that point, there would be no way for the Fed to expand the money supply other than by buying private companies.
If you take it to its logical conclusion, continuing to run a government surplus indefinitely implies that the public must be going deeper and deeper into debt to pay the funds to the government. Eventually, there isn't any money left in the economy, and the public would be forced to go directly into debt to, or even sell possessions to, the Federal Reserve in order to obtain the funds to pay the tax!
This is one of many reasons why the government should be running deficits nearly all the time.
Watch the whole lecture here: youtube.com/watch?v=X39M9MXRNyg
Follow Deficit Owls on Facebook and Twitter:
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Professor Jan Kregel explaining how Bill Clinton's fiscal policy almost turned America into a socialist nation! This is only a minor exaggeration. If the federal government were to eliminate all of its debt, this would reduce the net financial assets held by the private sector. At that point, there would be no way for the Fed to expand the money supply other than by buying private companies.
If you take it to its logical conclusion, continuing to run a government surplus indefinitely implies that the public must be going deeper and deeper into debt to pay the funds to the government. Eventually, there isn't any money left in the economy, and the public would be forced to go directly into debt to, or even sell possessions to, the Federal Reserve in order to obtain the funds to pay the tax!
This is one of many reasons why the government should be running deficits nearly all the time.
Watch the whole lecture here: youtube.com/watch?v=X39M9MXRNyg
Follow Deficit Owls on Facebook and Twitter:
facebook.com/DeficitOwls
twitter.com/DeficitOwls
