Hi everyone, this is Dr. Nitin Chhoda. Welcome to Ignition Time. Thank you so
much for making our channel one of the fastest growing channels
on the web when it comes to politics, personal finance, stimulus news,
unemployment benefits. If you learn something new from this video
please click like, please subscribe and also please share it with your friends
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from our content. So please consider sharing our content with friends and
family. With all that being said, let me jump right in.
I'm going to answer the question should we be concerned
about the deficit? Should we be concerned about the rising debt?
Especially since we've borrowed, since we've generated a lot of money
to pay for all the stimulus. All the money for the stimulus is not coming
from our taxes because we don't have enough money. We're simply generating
money. We're lowering the interest rate so that
we can borrow the money from our future selves. That's basically what's happening.
In fact, on your screen you'll see an article
from the Washington Post that reads the US government debt will nearly equal
the size of the entire economy for the first time
since World War II. So this is quite significant and you know as you know
the government has borrowed
a ton of money uh to help us combat this this pandemic. So for the first time
since world war II, the the debt of the us government will
equal the size of the entire economy by the end of the year, according
to the non-partisan congressional budget office. Now this is again due to the
surge in new spending. We've spent a whole
bunch of money and by the end of 2020 the amount of debt will be you know
almost the size of our GDP which is
over $20 trillion.
It's going to become 98% of GDP, last year we were at 79% of GDP.
Now i'll tell you how significant this is
in terms of the future because i'll give you some important information and I
definitely want you to watch this video all the way through
to the end because then you will understand how this deficit ties in
to our economic future, ties into all the stimulus spending. Because at the end of
the day, this is a very difficult
situation, it's an impossible situation something that we haven't seen in the
modern era. We do need to help those who need it the
most but on the other hand and you know this this
may not sound politically correct but on the other
hand the train has already left the station.
What I mean by that is we are seeing a k-shaped recovery
and I make these videos so I can educate all my viewers and subscribers. And I
don't want anyone to be left behind. Let me just be clear about that.
But the fact is the economic data suggests
that this is a K-shaped recovery. The rich have already gotten richer.
The stock market has gone to all-time highs and you know stocks like Apple are
hitting their all-time highs almost on a daily basis at the time i'm recording
this. Real estate values have gone up. Interest
rates have gone down. On the other hand individuals, many
furloughed individuals have lost their jobs permanently. So this is
a very a very unusual dichotomy and unusual paradox that we find ourselves
in and this by the way is one of the
reasons that the republicans don't want to increase the size of the
federal debt. And by the way, I find this very interesting
when joe biden was specifically asked to comment on
this this is what he said and i quote the reason why they can't get anything
done in the republican congress is 20 members of the united states senate say
under no circumstances will they raise the deficit at all
that's what joe biden said and he added sarcastically well
that's wonderful now again for me this is not about the red or the blue this is
for me it's about the red white and blue i'm not democrat i'm not republican i'm
american so let's not make this into a partisan
argument let's just analyze the numbers and let's look at the data and the data
suggests that essentially we're borrowing
too much money now some experts have said that this is a major cause for
concern even though many have said that it's
important for us to deal with the here and now in fact brian riedel who's a
budget expert at the manhattan institute said the
historically low interest rate the result of extraordinary interventions by
the federal reserve may help mask the cost of the spending
surge a spike in interest rates over the next decade
could send the federal deficit soaring and make it difficult to get federal
spending under control and he also said while
congress must focus on addressing the pandemic and recession the projected
doubling of the national debt through 2030 should
scare taxpayers so again this is a cause for concern
and a lot of individuals are very concerned at this moment in time
and elizabeth pancady who's an economic expert at the at the
at the employ america group said the numbers i'm more concerned about are the
swats of families unable to pay rent or put food on the table and congress
should be working to decrease those instead of the deficit so this
really creates a situation where on the one hand we have to help those
who need it now and i i want my viewers and subscribers to
comment below i want you to comment below and let me
know what you think do you think we should be focused primarily on making
sure we get through today or do you think we should essentially
worry about our long-term debt because at some point in the future
taxes will go up at some point in the future benefits could be cut
at some point in the future our children and our future generations will have to
you know we'll have to play catch up with all of this so i want to know what
you think in the comment section below i want my viewers and subscribers to let
me know what you think do you think that it's
okay to increase the federal debt uh in the interests of helping those who
need it the most now now i have to be honest at this point
this is less about saving the economy and more about helping those who need
help the most and i say this because that is what the data suggests
i am all in favor of helping those who need it the most so for the one percent
of my viewers who freak out and think that i don't want to help
anyone that's absolutely wrong this is numbers the economy is improving and a
lot of people are not only back to their jobs but making
more money than they did before specifically certain types of retailers
but other industries like hotels like travel like entertainment i mean
uh united airlines and all the major airlines are laying off tons and tons of
workers tens of thousands of workers so this is
a k shaped recovery this is an unusual
recovery where unfortunately the train has left the
station and some people are being left behind so let me know in the comment
section below what you think about this i would love
to know your thoughts about this entire situation and also please
share this video with a friend or family member so that
so that we can so that others can also understand this
perspective and i'd like to hear from many i'd like
to hear from other viewers and subscribers as well
so let's take a look at all the money that's been spent so far and let's
analyze how the money has been allocated with the money that's been passed
through the cares act which was a bipartisan uh which was a bipartisan
success if you will on your screen you'll see a tweet from
jeff stein from the washington post and jeff writes
of course the gop tax plan includes hundreds of billions of dollars in
things that democrats are not going to want to reverse this is
of course assuming there's a democratic president and a democratic senate he
said including expansion the child tax credit and doubling
of standard deduction claimed by most filers it would be politically incorrect
and it would be politically dangerous for these things to be rolled back
that's what jeff stein from the washington post is
referring to here's another tweet from jeff that says another way of
thinking about this is the us is expected to spend 38
trillion dollars that's 38 trillion dollars over the next 10 years
so doing the 1200 checks two times a year would
would amount to approximately 13 percent of all federal spending so what
jeff stein is suggesting here is if the 1200 stimulus check
was distributed twice a year that would that would be approximately 13 percent
of federal spending in fact let's analyze
federal spending and you'll see another tweet from jeff stein on your screen
right here that says the cbo says the 1200
checks cost the u.s 272 billion dollars in 2020.
and to be honest there ain't a lot of money in the grand scheme of things
that ain't a lot of money in the grand scheme of things so so he wrote if
lawmakers decide to do that twice a year we're talking about five trillion
dollars over 10 years so what jeff stein is
suggesting is that if twelve hundred dollar stimulus checks
were sent twice a year for ten years that would be five trillion dollars so
by comparison uh the health plan from joe biden which
is a public and uh the the health plan which is the
public option would be 750 billion dollars
the gop 2017 tax cuts by the way this resulted in a significant amount of
tax cuts for the super wealthy just so that we are clear
uh these were valued at 2.5 trillion dollars this already happened
let's be clear this already happened okay the u.s military budget is 10
trillion and the housing plan from bernie sanders
was 2.5 trillion dollars this gives you a sense of how we are spending money
where the priorities are and where where we fit in where the 1200 stimulus
checks fit in in the grand scheme of things
so at the end of the day when we look at the debt when we look at the rising debt
the debt is rising there is absolutely no question about that
but the 1200 stimulus checks even if they were done twice a year
represent five trillion dollars over 10 years over 10 years and considering that
right now it's cheap to borrow money the borrowing
cost of that money is is very insignificant in fact right now
the democrats are at 2.2 trillion dollars and the republicans
are at 1.3 trillion dollars they're 900 billion dollars apart
the borrowing cost of 900 billion dollars at right around 1.5 percent
is almost negligible it's about 15 15 billion dollars a year that's the
borrowing cost of that money so there you have it everybody thank you
so much for watching my name is dr nitin shoda with ignition time
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