US national debt 4
US National Debt, 4
Vocabulary
| debt | So what? | no wonder |
| violent | borrow | consequence |
| riot | baklava | dramatically |
| crisis | pretty (2) | spend/spent/spent |
| owe | inflation | commission |
| oops | gravity | law of gravity |
| federal | session | up to a point |
| allow | point (4) | pretty soon |
| wish | tough (2) | lead/led/led |
| jail | role (2) | supposedly |
| worth | share (4) | cut/cut/cut (2) |
| equal | appoint | supposed to |
| choice | on track | produce (2) |
| cost | cover (2) | recommendation |
| media | specific | spend/spent/spend |
| fiscal | majority | live within our means |
| option | chair (2) | framework |
| budget | care (2) | consensus |
| dozen | respond | whereupon |
| blame | revenue | approach (2) |
| speech | eliminate | fall asleep |
| gap | try/tried | bother (2) |
| hence | keep up | balance (3) |
| scalpel | mean (3) | discretionary |
| loan | machete | bankruptcy |
| lend | broke (2) | break/broke/broken (2) |
| deficit | reluctant | hound (2) |
| way | surround | shelve (2) |
| budget | duck (3) | senior (2) |
| chase | getaway | flee/fled/fled |
| reform | promise | co-payment |
| attend | stuff (3) | district (2) |
| restore | Medicaid | transit (2) |
| troupe | decimate | all the time |
| lobby | handout | related (2) |
| bridge | touch (2) | foundation |
| fund | Medicare | counselor |
| escape | issue (3) | hearing (2) |
| boo | find out | appropriation |
| repeal | for sure | give away |
| agent | descend | ally/allies |
| league | advocate | additional |
| urban | cause (2) | pay/paid/paid |
| waste | take over | please (2) |
| vote | up to you | guarantee |
| upset | governor | patient (2) |
| plea | hang out | relentless |
| rare | breed (2) | outnumber |
| resist | case (3) | argument (2) |
| cruel | provide | lose/lost/lost |
| avoid | uprising | depend on |
| armful | election | appreciate |
| elect | propose | representative |
| shrink | tax break | despicable |
Video
Transcript
Announcer: “And now reporting from the debt clock in New York City, John Stossel.”
Our government keeps spending: you know we’re already 14 and a half trillion dollars ($14.5 trillion) in debt.
But you could say, “So what? Look around America’s doing pretty well. What’s the worst that can happen?”
Well this could happen: These violent protests broke out once Greece was so deep in debt that Greece had trouble borrowing more money.
Veronique de Rugy, Economist, Mercatus Center: “The interest rate for Greece is 23 percent.”
Veronique de Rugy is an economist with the Mercatur Center. She says street riots are just the most visible consequence of a debt crisis.
John Stossel, Presenter: “Greece goes on; they are still serving in the baklava.
Veronique de Rugy, Economist, Mercatus Center: “Yeah, I mean I don’t think Greece goes on. If you want to borrow money for a house, for a car, for anything, the interest rates that you face will be dramatically high.”
Greece spent so much that by last year they owed more money than their entire economy produced. No wonder they’re in trouble.
We won’t reach that level of debt until . . . well . . . oops . . . pretty soon. We’re on a clear track to a Greek-type crisis.
Veronique de Rugy, Economist, Mercatus Center: “The government cannot escape the law of gravity; when there’s no more money, there’s just no more money.”
John Stossel Presenter: “Well the Federal Government can escape — the Federal Government can print money.”
Veronique de Rugy, Economist, Mercatus Center: “The Federal Government can print money up to a certain point.”
The Government has been printing lots of money — don’t you wish you could do this? Of course if we do it they put us in jail. But governments are allowed to print money.
The trouble is, when they do . . .
Veronique de Rugy, Economist, Mercatus Center: “That leads to inflation.”
Because the more dollars you print the less each one is worth. That happened in Zimbabwe recently: it took 25 million local dollars to equal one American dollar. You had to carry armfuls of cash to go shopping.
Veronique de Rugy, Economist, Mercatus Center: “You’ve saved money supposedly for your old age, to be able to enjoy life or to be able to leave money for your children. Well, that money is going to be worth almost nothing.”
So printing all this extra money is bad. What are the other options?
Well the government can raise your taxes, or cut its spending. Tough choices. Politicians were supposed to make these choices.
So what did President Obama do? He appointed a commission
Barrack Obama, US President, 2009 to 2016: “I’m asking them to produce clear recommendations on how to cover the costs of all federal programs by 2015.”
They recommend that a trillion in tax increases and three trillion in spending cuts. But the president didn’t take those recommendations. That bothered even the liberal media.
Journalist, One: “The total debt is seven-point-two-trillion dollars ($7.2 trillion) on top of the 14 trillion we already have how can you say that we’re living within our means?”
Barrack Obama, US President, 2009 to 2016: “I’m not suggesting that we don’t have to do more.”
Journalist, Two: “In your fiscal commission you had a majority consensus to do all this. It’s now been shelved.”
Barrack Obama, US President: “The notion that has been shelved, I think is incorrect.”
Journalist, Two: “What was the point of the fiscal commission.”
Barrack Obama, US President: “It still provides a framework for a conversation.”
Rand Paul, Republican Budget Chairman: “Then our debt as a share of the economy is already too high — but look at where it’s going.”
A Republican Budget Chairman actually came out with a serious plan; whereupon the president responded with his own plan.
Barrack Obama, US President: “Today I’m proposing a more balanced approach.”
I don’t blame the vice president for falling asleep during his boss’s speech; it was more of the same: Obama said he’d eliminate waste and lower the cost of health care — but he proposed no specific cuts. And he said raise taxes on the rich.
Barrack Obama, US President: “Millionaires and billionaires. That’s who needs to pay less taxes?”
Maybe not. But even if the president took every penny that millionaires and billionaires make, it still wouldn’t be enough to cover the deficit.
Veronique de Rugy, Economist, Mercatus Center: “The gap between revenue and spending is SO big that no level of revenue could cover that gap.”
The problem is spending it’s been increasing so fast, revenue you can’t keep up; hence the talk about cuts.
Barrack Obama, US President: “We’ve taken a scalpel to the discretionary budget, rather than a machete.”
A scalpel? But a little scalpel won’t make cuts big enough to keep us from falling into bankruptcy — we need something like this. We need to make bigger cuts — or people will stop lending us money and we’ll be as broke as Greece.
But I understand why politicians are reluctant to make big cuts. Look what happens when they try: about twenty years ago, the Democratic chair of the Ways and Means Committee was hounded by seniors for asking them to make small Medicare co-pays. They chased him and surrounded his car. The Chairman fled to a gas station where he found his driver and made his getaway.
His Medicare reform was quickly repealed, and for the next 25 years most politicians ducked the issue until congressman Ryan’s proposal. Congressman Ryan’s been booed too — in his own district.
Democrats say his Medicare plan is why this woman won a special congressional election recently, because she promised that she would “not decimate Medicare.”
After she won, her supporters chanted, “Medicare! Medicare! Medicare!”
Congresswoman: “Yes we are all future seniors that’s for sure.”
The message politicians get is, “Don’t touch our handouts, especially Medicare.” In fact don’t cut anything; give us more stuff.
Lobbyist, one: “Roads bridges.”
Lobbyist, two: “Transportation funding.”
Lobbyist, three: “We’re all citizen lobbyists.”
Citizen lobbyists descend on Washington to try to get more.
Lobbyist, two: “More money for transit.”
Lobbyist, four: “Funding for housing counselors.”
We went to DC during the most recent budget session to try to find out where the budget only grows.
Lobbyist, five: “I’m attending a number of hearings so most of them are appropriations related.
Veronique de Rugy, Economist, Mercatus Center: “You have all these lobbyists who are there all the time, so they can be close to the power that might hand them some goods in form of tax breaks or whatever it is the government is willing to to give away.
Lobbyist, five: “We’re just agents that’s all we are.
Lobbyist, Six: “The American Forest Foundation.”
Lobbyist, Seven: “Neighborhood Assistance Office.”
Lobbyinst, Eight: “National Urban League.”
They all want the same thing:
Lobbyist, One: “We need additional funding.
Lobbyist, Three: “There simply isn’t enough money.”
And so many lobbyists want the money, that some paid bike messengers to stand in line for them.
Bike Messenger: “I wait in line till they get here and then they take over and I leave.”
After all their employers have great needs: these insurance company lobbyists want more government guaranteed flood insurance. Her (Congresswoman) career may depend on pleasing these lobbyists.
Leslie Paige, Citizens Against Government Waste: “Every member of Congress has a troupe of lobbyists coming through his or her office every single day — it’s still up to him or her to say ‘no’ and that’s really hard for them they love to say ‘yes’. They absolutely love to say ‘yes’.
You want something, I want to give it to you, because I need your vote.
So they are going to have to learn to say ‘no’ a lot; they’re going to practice in the mirror.”
Practice hard because there are so many advocates, with so much need.
This woman is upset about a governor’s cuts: “I’m a nurse. I care about people . . . he is going to make my patient sicker because he will not give me a voice to advocate for them.
She even says budget cuts are racist: “This is despicable.”
Representative Jeff Flake, Representative, (Republican) Arizona: “It’s relentless and people talk about the big lobbyists you know the Boeing or Intel or whatever else — and they’re here.
But they’re outnumbered 20 to 1 by the advocates of small, specific spending programs.”
Congressman Jeff Flake and Scott Garrett are a rare breed in Congress — actual budget cutters who resist the lobbyists pleads.
Reporter: “They make such a good case her patients are going to lose health care. You must be cruel to resist this stuff.”
Scott Garret, Representative (Republican) New Jersey: “That’s the argument that they always make there will always be somebody coming into your office asking for more money.
Lobbyist, Nine: “Teachers teaching teachers.”
Lobbyist, Seven: “Avoid having budget cuts in housing.”
Reporter: “How do you say no?”
Scott Garret, Representative (Republican) New Jersey: “I appreciate your issue and it is a good cause that you’re coming to talk to us about — but unfortunately that’s not the role of the federal government.”
Lobbyist, Ten: “Restore funding to the national writing project.”
Lobbyist, Eleven: “We’re here to say stop the cuts.”
The fact that there are any cuts at all is due to the recent uprising by voters. They elected dozens of new representatives who promised to shrink government.
Finally congressmen like Garrett and flake have some allies.
Reporter: “For years you two must have felt lonely around here.
Scott Garret, Representative (Republican) New Jersey: “We hung out together.”
Representative Jeff Flake, Representative, (Republican) Arizona: “Yeah it’s been a bit, but there are more more of us now you
Questions
Money. Is the US national debt tiny, small, medium-sized, large or humongous?
Debt, in the Red. Do the presents give an example of what happens when a country’s debt goes too high?
Borrow. Is it possible to borrow more money, indefinitely? Does it apply equally for individuals and governments?
Loan. Both people and governments can print more money. Is this a long-term solution? What will happen eventually?
Default. Did US President Obama want to decrease or increase the US national debt? Did he made, clear, definitive plans and stick to them? Did he give clear, specific answers to reporters?
Revenue. It is very simple and straightforward for politicians and lawmakers to cut spending. True or false? Why is it so difficult or nearly impossible?
Expenditure. All people want to reduce government spending and reduce the national debt. Is this right or wrong?
Treasury. Are there a few, some, or many lawmakers that are bucking the trend and saying “no”?
Balanced Budget. Does your country have a balanced budget, national debt or a budget surplus?
Interest. What are the sources of revenue for the government? Does it vary among different countries?
Deficit. What are some of its main expenditures?
Budget Cuts. Is there a lot of debate, arguments and controversy about taxes and expenditures by politicians, journalists, economists, experts and ordinary citizens?
Reform. Do different people have strong opinions about taxation, expenditures and debt?
Lobby. What might happen in the future?
Inflation. What should people and the governments do?
