Today, Explained · Podcast summary
Our $40,000,000,000,000 debt
Jared Bernstein, former Chief Economist to Vice President Biden, explains why the national debt is so high, and what we can do about it.
Listen on the show ↗Key takeaways
- 💸The US national debt, currently $40 trillion, averages out to about $116,000 per American.00:43
- 🤝The national debt is a result of collective responsibility, stemming from political decisions, daily life choices, and a historical reluctance to address the issue by both politicians and voters.02:29
- 🧾A significant portion of the national debt is spent on the day-to-day running of the federal government, wars, and social programs like Social Security and Medicare, with an increasing amount going towards interest payments on the debt itself.03:09
- 🏦The US primarily borrows from its own citizens through Treasury bonds (often held in retirement accounts) and from other countries that use these bonds to manage their reserves.03:59
- 📉Rising bond yields indicate a growing skepticism among investors, both domestic and international, about the US government's long-term fiscal sustainability, which in turn increases the cost of servicing the national debt.06:12
- 🗣️Unlike other countries that have faced debt crises and were forced into austerity, the US lacks a political consensus to make the hard choices necessary to address its debt problem.08:00
Chapters
- 0:00💰 Introduction: The $40 Trillion Debt
- 0:36🤷♀️ Whose Fault Is It?
- 4:04💸 Where Did the Money Go?
- 5:56🤝 Who Are We Borrowing From?
- 6:47📈 The Bond Market and Rising Interest Rates
- 11:53🌍 Lessons from Other Countries and the Lack of Political Consensus
- 14:10🛠️ Options for Addressing the Debt
- 15:27📊 Discretionary vs. Non-Discretionary Spending
- 18:35🧠 A Shift in Economic Consensus
- 26:35💡 Jared's Change of Heart
- 35:39🛣️ The Role of Economists and the Path Forward
The digest
Kimberly Adams, host of Marketplace Morning Report, and Sean Rameswaram, host of Today, Explained, discuss the national debt with Jared Bernstein, who served as Chief Economist to Vice President Biden and is currently a senior policy fellow at the Center for American Progress and the Stanford Institute for Economic and Policy Research.
What is $40 Trillion?
$40 trillion is a 4 followed by 13 zeros. It's the distance from the Earth to Pluto and back in feet, depending on where the Earth and Pluto are. It's roughly the amount of water in gallons found in Lake Tahoe. It's 1.2 million years, but in seconds. It's also how much debt the United States has as of this month, which averages out to about $116,000 per American.
Keep reading in The Digest
The full 7-minute article, 10 more sections, and every new episode from Today, Explained and the creators you follow.
- Whose Fault Is It?
- Where Did the Money Go?
- Who Are We Borrowing From?
- The Bond Market and Rising Interest Rates
- Lessons from Other Countries and the Lack of Political Consensus
- Options for Addressing the Debt
- Discretionary vs. Non-Discretionary Spending
- A Shift in Economic Consensus
- Jared's Change of Heart
- The Role of Economists and the Path Forward
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