Wolff Responds: "How Deficits & The National Debt Rips Us Off" Dated December 11, 2024

[@alpetterson9452]

There's something about how you explain stuff that makes it understandable. And interesting. Thanks

[@levvolgin9621]

God Bless You, Dr. Wolff. You are doing Godly things. Keep going.... Do not give up.

[@Lords1997]

I wish you could be the keynote speaker at my graduation. Your words are always so inspiring and thought provoking. I go to CUNY, Bronx Community College.

[@KC-lc8dx]

Thats a great idea, I hope he does this for you!

[@vivalaleta]

Dear Professor, please do be the keynote speaker!

[@Lords1997]

oh woah didn’t think this would get so much attention lol, thank you everyone!

[@a.randomjack6661]

"Wealth is addictive, the rich will eventually destroy society" -Socrates and friends (paraphrasing)

[@renfrewsummer6150]

Richard, I am glad you educate us on the matters of life. Your college class mate Ms. Yellen no thankyou. She cannot compete with you. I am glad I found you.

[@anandagarwal7237]

Excellent analysis

[@burrellsusuki]

I listen and study your material everyday Dr. Rick😑 ...you are one the most valuable people in the country..

[@kimwalter8753]

He's a good man a good soul.

[@JohnM-l3o]

I just shared your economic reality lesson with my close friends recently. Told them listen and prepare accordingly. As always thank you for your knowledge and guidance. Have a wonderful holiday.

[@Nopse6]

Habe gerade Ihr neues Buch bestellt! Vielen Dank für Ihre verständlichen Vorträge!

[@geoffreynhill2833]

Schuss! 👍🤔( from London, UK )

[@peterkerruish8136]

Thankyou Mr Wolff.

[@leogje4141]

That is nothing new to me, but when I tell it to my people they just looked at me like I am crazy😢

[@CollinYongule]

This is the most important program of the time, making financial education and geopolitical education accessible to everyone from a practical point of view , especially under circumstances of ongoing crises. You are laying a legacy that will not fade away without impact. My sincerest gratitude.

[@raviramaswamy6941]

The deficit and national debt of the US government can be reduced a lot if it stops interfering in the affairs of other countries and starts new wars in some parts of the world every year.

[@JohnDaniels]

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless" -Thomas Jefferson

[@mr.winkie]

U know what use to baffle me? How some of society’s most educated people (professors, doctors, lawyers, other small business owners, etc.) aren’t necessarily amongst the wealthiest; definitely not amongst the world’s elite. To become an Elon Musk, Jeff Bezos, Trump, etc. it takes a lack of sympathy and empathy, not the finest education. Not genuinely caring about others, and only caring about urself, is an important and unfortunate path to monetary success in the world of capitalism

[@arabcadabra8863]

The only thing that baffles me about your comment, which is good by the way, is your inclusion of small business owners with society's most educated people.

[@TheBigGSN5]

Ask Musk how SpaceX would be doing without government spending.

[@richarde.plante3292]

Right, when his companies rocket came back down and settled itself, he was cheered as a true American hero. Most common folks don't understand how he funds his projects or his life. ON THE BACK OF THE GOVERNMENT.

[@Nemesisnxt]

Can’t blame the guy for winning a government contract. A contract that will ultimately save tax pays billions compared to NASA.

[@stonedsoup3535]

Hey Prof Wolff! THanks again for doing all these videos and educating those of us who want serious change in the USA. A personal request: Could you talk sometime about the CEO shooting? Thanks!

[@kimwalter8753]

Yes, his take would be beneficial.

[@patricialongo5870]

People who want change are retreating into academic matters, today?

[@Nemesisnxt]

He did. He praised it and encouraged others on the socialist program podcast.

[@salz2406]

From my understanding, fed gov does not collect Tax money into an account or use said money to pay for their budget. The fed gov sets a budget and then the fed reserve creates that money to spend into existence. Fed taxes are collected in an effort to regulate the money supply and keep inflation down. Since we create our own currency, a debt is instantly created once we create a dollar. And that there would be no money in the economy, in people’s bank accounts, if we collected the same money back that was issued. I’d appreciate any comment or critique as I am just learning this stuff and curious how true and accurate that is

[@thecaliforniadream1973]

Sounds perfectly accurate to me.

[@paulrasmussen3858]

Thank you Richard.

[@thomasbialzik3060]

Perhaps tax cuts for the elite are not such a good idea. That 1.1 trillion per year in tax breaks might have been useful to tackle the debt.

[@Nemesisnxt]

Tax revenue increased following the tax cuts. Laffer Curve. Have a great day.

[@GeorgePence]

We need to try to spread this lesson as wide as possible to anyone who will listen.

[@momorsey9112]

Thanks!

[@brianarmstrong6215]

I’m so use to the bad roads that I have learned to accept it. I not only pay high taxes, I also have to pay for garbage pickup, a sewer bill that is really just a %300 tax on my water. .63 cents on every dollar spent in personal property taxes goes straight to the teachers union! My 1000sqft house is costing me $2600 a year. I just paid $67.00 for a sticker to pay for yearly vehicle registration. Ha ha! I’ve been getting nothing for my money! And I’m paying %12.4 into social security and medicade! You lost me. Let it crash!

[@NandoSilva-px2ir]

Thank you Professor Wolff, great news! greetings from Oklahoma City, Ok.

[@davidluckens3479]

thank you Professor Wolff

[@__WJK__]

The interesting thing about excessive government taxation, over spending, and a government that constantly fails to maintain public services to high standards, is that the government "once upon a time" had enough to go around and also held public services to a much higher standard, longgg before income tax was introduced (via the 16th Amendment) by Congress on July 2, 1909, and ratified on February 3, 1913 ... which I would argue, is when the government was infiltrated by crooks, looking to directly take advantage and fleece "We The People" for the foreseeable future. I would actually argue, had the founding fathers lived long enough to witness the drafting of the 16th Amendment, America would have very likely seen a domestic revolutionary war, soon as the rough draft of the 16th amendment saw the light of day, and if not then, certainly longgg before it had a chance of being passed by congress.

[@jgalt308]

A former IRS agent, Joe Bannister produced a two volume book entitled "The Law that Never was"...which challenged the fact of the claimed ratification of the 16th amendment, as well as the 14th and 17th, by examining the records held by the several states. Each of these was critical in the dismantling of the "constitutional republic" which was completed by FDR in 1939. This book is no longer available due to the government's attempt to acquire the information of those who purchased this book. ( used copies are...but the price is excessive. )

[@levvolgin9621]

Healthcare for all program should be budgeted under Department of Defense Budget? It should resolve the dillema, who is paying for it once and for all.

[@belconnen1]

Mr, Richard, one thing I don’t understand about this debit of USA, Why US government is borrowing money if they can just print money? Also at the end of the day don’t you think government of US can just wipe out the debt?

[@kimwalter8753]

I wonder about that too.

[@wittynclever]

You cant just wipe out the debt because then nobody would ever lend you money again. They borrow money by selling Treasury bills and bonds at very low interest rates because the US government has never defaulted on a payment. So they essentially do just print money to pay the debt.

[@splodgen]

Some countries have tried this, the trouble i guess is that it just devalues that currency, so other countries won't want that currency. also imports would become more expensive heading to more inflation.

[@kinawosindani884]

The us government and the federal reserve are seperate. The fed loans the government money, so the government can't print but the fed can. Where/why the federal reserve is able to do this is a rabbit hole...

[@CynicalBastard]

@@kinawosindani884 Gooooold MY GOLD I OWN IT SO I CONTROL IT, CAT FISH?

[@richardthut7071]

This world should be called mathematics not earth the reason is everything is a number.

[@patricialongo5870]

Wow, what an amazing retreat from politics at this juncture.

[@OneHipNinja]

I wish Uncle Rick would engage with MMT when this topic comes up. We know he is familiar with it, and while he may not agree with its premise or conclusions, it would be illuminating if he would grapple with it when debt and deficit are discussed.

[@mirotodor]

the students at the colleges you're talking about don't know the multiplication table ....

[@johnsmith100]

Many Americans suffer a lot financially under Capitalism. They simply don't understand that Capitalism is what they should channel their frustrations at, rather than at one another, or at China or Russia. Under Capitalism financial crises are created every certain number of years, it's not a stable economic system. The Capitalism approach that is supposed to bring a trickle down economy, has been proven again and again not to be working. As long as so many Americans continue to vote for the two mainstream political parties (Republican and Democratic), both which are aligned with the extreme implementation of Capitalism in the United States, the country will continue to endure financial hardship caused by inflation and other adverse outcomes of Capitalism, such as huge inequality. The U.S. government (and many of its people) thinks it still manages / controls the world. It no longer does ... It's time for implementing Socialism in North America, similar to the one with Chinese characteristics that's implemented in China.

[@Nemesisnxt]

😂

[@OPTHolisticServices]

💗🍃🙏🏻

[@marksmit8112]

My math says $1.84 trillion from taxes goes in interest payment

[@robertlazar6422]

🌹

[@AlmaMercer]

And my question is how much has all this gone up since they established these programs for the people? And how much has the government enlarged its department is what I would like to know?

[@jdcjr50]

Congress can cut the Federal Reserve, making finance insolvent, aka a Debt Jubilee. Then Congress can raise taxes to 90%, as before, and prop up the insolvent banks. Print a few trillion dollar platinum coins to pay down all the existing bondholders. Life goes on with a freer electorate. Capitalists will survive somehow. Hiccup.

[@__WJK__]

Exactly!

[@NikiGraham-r2s]

Peace

[@philippirrip8761]

Very interesting, but you must admit that some of the spending is wasteful, like perhaps two government agencies tasked with the same responsibility - I think that is what Musk and Ramaswamy are going to be trying to discover.

[@pierreapan8197]

How do I contribute to this program?

[@AstraKiro-q9q]

I DONT REALLY BELIEVE WHEN THEY MAKE STATEMENTS ABOUT THE AMOUNT OF EACH COUNTRYS DEBT, THEY COULD SAY ANY HIGH AMOUNT IS OWING HENCE TAXES PAID INCREASED AND THE PUBLIC WOULDNT BE THE WISER.

[@steved2667]

The St.Louis Fed: "As the sole manufacturer of dollars, whose debt is denominated in dollars, the US govt can never become insolvent, ie, unable to pay its bills. In this sense the govt is NOT dependent on credit markets to remain operational."

[@Rojonia]

Sorry, Richard, but you have got it backwards, like most people. A currency-issuing government does not borrow money. It ISSUES money. What appears to be borrowing is nothing more than a "savings account". The money deposited IS NOT USED for expenses. The government owes nothing but a bank statemment. You should read Warren Mosler and Stephanie Kelton.

[@Victoria-Enzula]

There is never an excuse to not fully fund good social programs

[@Nemesisnxt]

Yes there is. Government dependency is a dangerous thing for numerous reasons. What a silly statement.

[@Ge1Ri4]

@RichardDWolff if the federal government raises spending money through taxes, where did the first taxed dollar come from? How does it borrow more dollars than already exist? Who does it borrow dollars from when the only entity legally entitled to produce dollars is the US Federal Reserve, which is a part of the US government?

[@thecaliforniadream1973]

All you'll get is crickets. He will never admit he's wrong.

[@johnkruk6929]

What “STUPIDITY “you want to be number one ! Use your loaf .😂😢

[@scottgeorge4268]

Great way for idiots to learn the truth about government expenditure and important economics... Listen to Richard Wolff.❤❤

[@Nemesisnxt]

His blind follower are definitely idiots.

[@carlywright5127]

What happens when billionaires abd Government does not abide to The Social Contract.

[@jgalt308]

Do you have a copy of this contract?

[@BpS58]

100% True all of it

[@Nemesisnxt]

No, it’s not.

[@Victoria-Enzula]

The richest should pay all the debt because they're the ones that benefited.

[@jgalt308]

You have to admire the professor to actually demonstrate his economic and historical ignorance all in one place and a comment section that thanks him for his explanation because they think they now understand what they did not before or actually agree with him because they, too, share this economic and historical ignorance, now that's chutzpah! 0:00 Welcome Friends to another wolf 0:03 response today we're going to talk about 0:06 the national debt many of you have 0:08 written or communicated with us that you 0:11 would like an analysis of what all this 0:14 talk is about the government's debt the 0:17 deficits and all of that you're quite 0:21 right to ask either this stuff is never 0:24 taught in school or the newspapers 0:27 either don't understand it which you 0:28 would be surprised how often that 0:31 happens or they just don't communicate 0:33 it well that happens often too in any 0:37 case it isn't all that complicated and 0:39 it is an important part of what's going 0:43 down in this country and that's why it's 0:46 important for us to talk about it let's 0:49 egin so make sure everybody's on the 0:51 same 0:53 page in the United States as in most 0:57 countries this Society in its government 1:00 has given 1:02 itself certain rights and 1:06 obligations and these obligations and 1:09 rights are given to the government by 1:11 the 1:12 government we go along with it we vote 1:15 in the elections Since our Professor spent four years at Harvard to secure a bachelors in HISTORY, one might ask if this is what he learned there..." in the United States...government has given itself certain rights and obligations and these obligations and rights are given to the government by the government. We go along with it ( when ) we vote in the elections ..." None of that is true...and the words used...such as "rights" and "obligations"...are WRONG...although it does explain why most people believe the claim that we are a "democracy" when reading... " We go along with it ( when ) we vote in the elections ...". One could easily "fact check" the nonsense that the professor spews out here and every time he babbles away...but they never do...and one could easily find what the U.S. owes both China and Japan... to the total of all "debt" that is "foreign owed," and it is nowhere the near the 36 trillion+ that is the current number. This brings us back to the last economic update on Monday when our professor did his little semantical dance about systems "working"...and including "education" in his list...and yet in this bit of nonsense, he demonstrates that Harvard didn't "educate" him, and that he isn't educating anyone either...or the word "educate" has also been rendered "meaningless." I'm pretty sure that if you tried really, really, really hard, you could find many history books written on the subject of the "revolution" and "constitutional republic" it produced, including those who actually debated it at the time of its "ratification"...and none of it confirms this "explanation" by our professor. We return you now to your regular PROGRAMMING...

[@distortiontildeafness]

Why cant the state/govt borrow from itself ? Whatever happened to that

[@jgalt308]

Article One, section 10

[@anthonyn9096]

cover the ceo

[@Nemesisnxt]

He did. He praised it and encouraged others to follow in the socialist program podcast.

[@georgharutunian9258]

Was this video sponsored by Federal Reserve?

[@LarryMoonLee]

Thank you for explaining the debt clearly for me. Can the U.S. just print paper money to pay the interest? Can you give us an analysis of why this solution would not work? Thanks.

[@jayleeper1512]

The printing of money is inflationary because the value of the money comes out of the value already in circulation. This, in essence is a tax. The current target rate of inflation is 2% per year. This devalues the currency at a rate of 2% per year. In reality, this is a profit rate for the private banks that are the Fed. If the government took control of the creation of money, this 2% would go to reducing the debt and would buffer the cost of living increases this inflation causes. The theory giving the money supply to private banks ( the Fed) was to keep political influence out of the equation. It is very debatable that it has had this effect

[@thecaliforniadream1973]

What a load of CRAP.

[@melissazwieg2988]

🥇🥇🥇🥇🥇🥇

[@Democratsrock]

With all due respect sir, I’m going to guess that you will get a pretty good tax break when the orange clown initiates his tax cuts that are supposed to help the middle class. Just kidding 😂, those tax cuts are gonna help the well off only.

[@johnb4639]

Sorry Richard, I know your intention is to be both honourable and progressive in support of the welfare of the working class ... but your construct of national monetary operations is demonstrably wrong! Even worse, you simply reiterate neoliberal economic orthodoxy - the basis on which Pelosi & her like use to convince the general population that the government has no money for social causes and must therefore impose austerity policies. We've experienced 40 yrs of such macroeconomic nonsense and look where it has landed the common US citizen - 60% suffer near poverty. You state at ~3m "How can the government do that? [ie raise money] It's given itself two ways to raise the money one way is called taxation. The Government Can tax individuals and institutions like Enterprises, factories offices stores and so on - and finally the government can raise money by borrowing it.." Wrong on both counts. The US national govt. is a fully sovereign currency issuer - by virtue of constitutional decree. Fact:- The national govt creates new money each time it spends - authorised by the passage of a targeted money bill through Congress. Congress levies taxes - but NOT to source citizen held funds for expenditures. Taxes are levied to regulate economic activity - among other things, to free up assets needed by the national govt. to build infrastructure, citizens social needs etc. Fact: Federal taxes can only be paid by transfer (destruction) of USD banking reserves to Treasury from the private banking systems Federal Reserve account. Upon receipt the taxpayers debt is marked 'paid' - the reserve thus cancelled. Neither Treasury or the Fed Reserve are authorised(by law) to recreate (re-spend) /create unencumbered reserves. Thus Federal tax receipts cannot be re-spent into the economy - ONLY Congress has that legal authority. A mind exercise - where did the first person that pays Federal tax get the dollars to pay their tax bill? Answer: It was issued by the Fed Govt. to pay for a service provided by that taxpayer. Taxes destroy dollars in circulation. "..the government can raise money by borrowing it ..." Not so. "Borrowing" is a monetary operation to control the interbank 'cash' interest rate - thus achieving the Fed Reserve daily interest rate target. A govt. that issues its own currency does NOT need to borrow money already in circulation. Agreed that interest paid on bonds issued is income for those who already have surplus money - but that interest money is sourced out of Fed Resv 'profits' or by a suitable money creation act of Congress. The US 'debt' is the sum total of all bonds on issue - those bonds are repaid out of the funds those bondholders deposited at the Fed Resv on initial purchased of those bonds. Who owns the bonds is irrelevant- they paid their money in - they get their capital money back upon maturity. That enough for today.

[@jgalt308]

What "money"?

[@steved2667]

Federal govt does not borrow its own SOVEREIGN currency. Why would it? Federal deficits add growth dollars to the economy.