Economist Stephanie Kelton tells Ali Velshi Joe Biden and the Democrats should go big, despite concerns about the deficit because a deficit is not inherently bad: "A deficit means the government is making a financial contribution to some other part of our economy. Their deficit becomes our financial surplus. The question is for whom?” Aired on 04/10/2021.
» Subscribe to MSNBC:
About The Last Word with Lawrence O'Donnell:
Drawing upon his experience as a former chief of staff on the Senate Finance Committee and as an Emmy-winning executive producer and writer of "The West Wing," Lawrence O'Donnell examines the compelling and impactful political stories of the day. O'Donnell convenes diverse panels of guests, including a variety of politicians and cultural voices, to offer unique viewpoints and perspective. In his signature style, O'Donnell highlights the latest news developments and offers his take on the political stories driving the national conversation.
MSNBC delivers breaking news, in-depth analysis of politics headlines, as well as commentary and informed perspectives. Find video clips and segments from The Rachel Maddow Show, Morning Joe, Meet the Press Daily, The Beat with Ari Melber, Deadline: White House with Nicolle Wallace, Hardball, All In, Last Word, 11th Hour, and more.
Connect with MSNBC Online
Visit msnbc.com:
Subscribe to MSNBC Newsletter:
Find MSNBC on Facebook:
Follow MSNBC on Twitter:
Follow MSNBC on Instagram:
#StephanieKelton #FinancialContribution #MSNBC
Economist: ‘Every Deficit Is Good For Someone … The Question Is For Whom?’ | The Last Word | MSNBC
The problem we got is that we spend tons of money in sheet we don’t need and not enough on the ones we do need! 2.2 T is peanuts, if we want to fix the sheet that’s broken we are going to need a lot more to that number, I ain’t no genius but it don’t take one to know our sheet is falling apart.
“Sheet” is not going to get better. We are basically screwed at this point.
yep you are right … you are no genius
would agree. We need to have the normal infrastructure at least broken even before 2050. Haven’t looked up the recent civil engineers on what needs to be done. (not including broadband, which we need to do. it’s the 21st century electricity)
???? thats makes zero sense
We need something REALISTIC done about affordable housing. There are millions of people being priced out of housing. Even the slumlords are asking rents so high that people on social security, or disability or just working for minimum wage can’t afford a place to live.
It is crazy to demand proof of income 3times the amount of the rent. Just like it crazy to ask $900 or more for a 1 bedroom apartment of less then 400 square feet. Someone taking home $2700 a month is going to want a tiny place like that. That is a subsistence apartment no frills, no aminities barely enough room to move around in.
Thanks President Biden for building back America. We are becoming like the old Soviet Union with failing electrical grids, bridges, roads , airports and more…
Lmfao. That’s a good one!
You fell for it again huh. All talk and no action. That’s your guy. Can’t even walk up some stairs. He represents democrats PERFECTLY
@Stair force one Big guy unlike Conald J Swamp who had 60% of his schedule on executive time , spent $200 millions of tax dollars on his weekly golf course trips, and tweeting. President Biden nearly in the office for 100 days and will rebuild America so we don’t live like the rundown old Soviet Union.
When Republicans run the government the deficit’s not a problem. When Democrats run the government, “we should keep a close eye on the deficit.”
We have a deficit because of government overspending and that’s a problem no matter if Democrats or Republicans are in office Democrats just get us in a bigger spending deficit quicker printing money that you don’t have decreases the value of everybody’s money pretty simple in this chick is clueless
ya because they spend like there is no tomorrow
@Todd Smith Deficit means we spend more than we collect in taxes in a year. That is not a sign of overspending, a sign of overspending is inflation. The Govt always spends by creating money it doesn’t have, it never collects tax revenue for funding. That is how social security is paid for, the military, welfare, is all paid for by creating dollars. Federal tax collection does not provide the Govt with revenue to spend. The type of inflation you are talking about is demand pull type of inflation which can only happen when all resources are in use, economy is at capacity producing all that it can, while unemployment is at 0 or close to 0 percent. When we get to that point is when we can experience more inflationary pressures too much spending whether by Govt sector, private sector or foreign sector.
@Todd Smith Republicans spend on the wealthiest 1% and and of course, lining their (Repukes) pockets. Repukes do not care about the American people. Democrats spend their, or should I say our money on the American people and our country and what is good for our country. The repukes could care less. They said Donny Dumba$$ spent money like a drunken sailor, so there is that!!
@Todd Smith The US Government is not spending enough.
That’s fascinating. I’ve never heard the deficit being framed in this manner, as a net difference between two numbers and as a surplus to others.
@John Dodge not sure I entirely follow… How does the fed printing money add to debt? Might be confused here as I confess my background in finance is limited to just having a debit card and a woefully underfunded pension pot. Tried getting friends to explain this to me and always end up at your conclusion. Overcomplicated.
@John Dodge exactly, and they prey on the fact that know one understands this.
Everyone should learn MMT!
TO THE PENNY, as a matter of accounting.
Every dollar spent is adding a number to someone’s checking account. Every dollar taxed back is subtracting a number from someone’s checking account.
Dollars or both created and destroyed by keystrokes, and mostly by automated keystrokes.
@John Dodge you know the FED has operating expenses maybe 5 to 10% of its total revenue, collected from fees charged to Banks.
The rest of that is paid directly to the US Treasury every year, or I think every 3 months. It does not even go to the IRS.
All bank accounts are records of liabilities owed to depositors. Your bank statement is how much your Bank owes you, in spendable liabilities.
National debt means our net savings, created by Uncle Sam, deposited into United States provided savings accounts, called Treasury Securities accounts.
Our net savings, our net Financial assets, and national debt, are literally the same thing. That is, account balances WE OWN stored by Uncle Sam.
“The eyes of history are on this appointment.” – Buttigeig
1964 Japan’s first bullet trains were put in service and the the first Beatles album was released.
1998 China started the construction of 36,000km of high speed railways and high speed trains.
2021 US still has NO high speed railway and NO high speed trains.
That’s because we have roads that allow us to go everywhere and we have planes that allow us to go everywhere trains only go from point a to point b they’re already obsolete before you even start them doesn’t matter how fast you get from point a to point b it still doesn’t get you the point c or point d we’ve already advanced Way beyond trains at any speed any money spent on high speed trains is money burnt
@Todd Smith very good point. I tell everyone the same thing. People and business in this country shift around all the time. It’s super easy to change a flight path to accommodate growth and movement, incredibly expensive to move train tracks. One just has to look at the exodus out of California to Texas. Planes that fly from New York to San Francisco can now just fly to Dallas instead. Trains that go from New York to San Francisco, would just sit empty.
@Todd Smith Japan and China have PLENTY of cars and plenty of roads. And well, gee… planes(this is meant as sarcasm). Seriously the US could put
real high speed in sensible places like the NE corridor, west coast and, maybe, parts of the mid-west.
@Todd Smith Money is not an object you can run out of for the Federal govt. Labor is something you can waste, metals, peoples time but not money.
AND, we don’t have the Beatles either.
Doggone it she’s good 👍. I’m an old man in my 60s and I have never seen a lesson about the deficit taught like that in such a short and concise way 🤓. It takes a lot to impress me but she just did ✔️.
naw.. you are easily impressed
I love Stephanie Kelton’s book: “Deficit Myth”. Must read.
*This reminds me of Andy Warhol’s saying back in the sixties/seventes (paraphrased of course) The money doesn’t disappear…just someone else has it!*
The problem with this whole thinking is, as soon as the next party comes into office, they will change everything and whatever long term benefits were there will be lost along with the ability to recoup or recover the spending. Neither party or Americans in general have the patience to see anything through for the long haul.
If a party gets into power and delivers to the voters, they won’t get thrown out in the next election. The only option left to voters these days is to keep switching from one party to another looking for somebody who will deliver on their promises.
@Steve Greenberg that’s exactly right. Both parties can only make excuses for so long before people start jumping ship.
I’ve been saying since the pandemic started…taxpayers are dying…working folks are dying. We need people to immigrate to pick up the slack, there wasn’t a pandemic baby boom to balance the population either. Positive vibes from New Hampshire and remember to be kind to each other and yourself during this pandemic and social crisis
👩💻…..it is always best to do your own research.
We have to remember the old political axiom that has proven true, time and time again.
‘ We cannot tax ourselves into prosperity.’
Most recently we saw that Trump opened up the roadmap for economic prosperity left to us by our iconic JFK. We saw great economic prosperity from JFK‘s tax plan which lowered the poverty rate in the USA to levels that we have not seen since the 1960s. All of that ended of course because of the Call vet 19 virus that swept the economies of the world.
Her view of economics and accounting is also for tax cuts. Especially regressive payroll tax. Not only do taxes not fund general federal spending, taxes don’t fund Social Security or Medicare either.
The designation of Social Security and or Medicare as having a separate account, does not make that different from other federal spending.
Point being, families could take home an additional $400 to $600 per month, if payroll taxes are suspended. The only reason to add payroll taxes back on is if wages and incomes are too darn high, and the economy can’t handle that demand.
Stephanie Kelton has many informative lectures on economics and MMT on youtube. Once you understand the big picture, you no longer worry about the federal deficit.
What we are talking about is likely 3 years away… however her points are extremely valid… and very well put.
An Economist from ‘Stony Brook University’, is that a joke or for real?
Stephanie Kelton is correct. Don’t forget that the non-financial private sector-businesses and households- is over $27 Trillion in debt and That Debt has to be paid back and we can’t expect to roll our debt over like the US Government can. So ? Who else can spend the necessary money, but the government.
Another thing to remember is that the other side of debt is credit, if one wants to think in those terms. So, paying back that debt is removing the credit, AKA Money, that helps to make the world go ’round.
Joe Biden needs to forgive at least 50 k in student loans…asap…
Economist throughout history: the deficit is the problem.