Yesterday, a new one-and-a-half-minute economics video from Ezra Klein's newly formed Vox Media hit the internet. In it, Vox Executive Editor Matt Yglesias explained why the current level of the national debt is neither dangerous nor worrying:
He concludes that "debt just isn't a problem right now," because inflation is currently near historic-lows.
The video stirred up some pretty angry responses from people who think that debt is a problem right now. Red State's Erick Erickson claims some of the video is incorrect and calls Yglesias a liar who is spreading "left-wing propaganda."
But Yglesias is pretty clear that he's excluding debt owed from one arm of the government to another, and only including federal debt held by the public. That is completely rational. After all, money the government owes to itself is simply money moved from one side of the government balance sheet to the other. There's nothing dishonest or disingenuous about citing the lower figure that only includes debt held by the public, especially given that Yglesias was clear about this.
Erickson then contends that: "[Yglesias] uses deficit and debt interchangeably."
But the debt is just the sum of the deficit over many years. So there's nothing wrong with treating them as two manifestations of the same thing so long as you understand that one is an annual figure and the other is the total. Yglesias' point is that the reason to worry about deficits is when they lead to elevated inflation and interest rates, something which we are not currently experiencing. This bases the assessment of debt and deficits around the real world consequences of debt and deficits, instead of hand-wringing over the size of the number, which seems to be what Erickson would rather have us do.
Erickson's next point is that: "[Yglesias] claims the U.S. government can never run out of money."
This, of course, is true. The U.S. government is a monetary sovereign that controls its own state-backed fiat money. Does Erickson think this is untrue? Does he think that the U.S. government can run out of paper and electronic dollars? Does Erickson think that the U.S. is back on the gold standard and therefore can run out of money?
Erickson concludes: "This isn't education. It is not explaining. It is left-wing propaganda. It is also sponsored by General Electric. Why is General Electric sponsoring left-wing propaganda?"
Now, to be fair, I'm not sure Yglesias' video will change many minds. It crams in a baffling quantity of information into a relatively short period. Viewers might on first viewing find it more confusing than enlightening, especially given that the mainstream narrative of the terribleness of government debt and deficits has become so deeply ingrained as "common knowledge."
But everything in the video is technically correct. At the very least it has succeeded in sparking a public debate on the issue of the national debt. And it is very definitely not left-wing propaganda, no matter how much Erick Erickson and other debt fearmongers would like it to be. John Aziz
Violence broke out at a Make America Great Again rally south of Los Angeles on Saturday as supporters of President Trump scuffled with counter-protesters. About 2,000 Trump fans were gathered in Huntington Beach, California, when multiple fights erupted in the crowd.
At least one Trump supporter was pepper-sprayed by a Trump opponent wearing a black mask, who was then tackled, punched, and kicked by multiple rally attendees. Four counter-protesters were arrested, local law enforcement said, three of them for illegal pepper spray use.
Attendees described the event as a celebration of Trump plus Vice President Mike Pence, veterans, first responders, and patriotism in general. "Thanks you for all of the Trump Rallies today," Trump tweeted Saturday night. "Amazing support. We will all MAKE AMERICA GREAT AGAIN!" Bonnie Kristian
"Watch @JudgeJeanine on @FoxNews tonight at 9:00 P.M.," President Trump tweeted Saturday morning — hardly an unusual post for a president known for his love of cable news shows. But in that evening's episode, Judge Jeanine Pirro kicked off her program with a demand for House Speaker Paul Ryan (R-Wis.) to resign.
"Ryan needs to step down as Speaker of the House. The reason, he failed to deliver the votes on his health-care bill, the one trumpeted to repeal and replace ObamaCare," she said, insisting the de facto demise of the bill — backed by Ryan and Trump alike — "is not on President Trump" because "no one expected a businessman to completely understand the nuances, the complicated ins and outs of Washington and its legislative process. How would he know on what individuals he could rely?"
Pirro said she did not discuss her message with the president before the show.
While Trump has not explicitly blamed Ryan for the defeat, the House speaker is in a difficult position after his legislation alienated the most conservative and moderate wings of his party alike. Bonnie Kristian
At least one person is dead and another 14 injured after gunfire broke out in a Cincinnati, Ohio, nightclub around 1 a.m. local time on Sunday. Police are actively investigating the incident at the Cameo Night Club and say they have no reason to suspect terrorism.
"It's a large and complicated homicide scene," said Cincinnati Police Department Sgt. Eric Franz. "At this point we have multiple witnesses we're interviewing and we have nobody in custody." "It's going to be a long night for our homicide units to investigate this incident, but right now things are stable," Cincinnati Assistant Police Chief Paul Neudigate told NBC News.
President Trump, House Speaker Paul Ryan (R-Wis.), and other GOP supporters of the failed American Health Care Act cast the vote as a strict with-us-or-against us scenario: Either support this plan or you're stuck with ObamaCare while the White House "agenda moves on" to other issues. More than 30 House Republicans had other ideas.
As The New York Times details in a breakdown of which GOP lawmakers in the lower chamber opposed the AHCA and why, the proposal came under a diversity of criticism from left and right alike — and that's just within the Republican Party. It's a scenario which leads Paul Kane at The Washington Post to observe the rise of a new paradigm of power in the GOP:
[The AHCA's de facto defeat] suggested a new dynamic in which both the right and left flanks of the Republican conference are emboldened to challenge leadership. And that could make each future negotiation more difficult as the issue matrix gets more complicated and the pockets of internal GOP resistance continue to grow, not shrink, in the new era of Trump’s Republican-controlled Washington. ...
This new combination, with Ryan’s right and left flanks willing to buck him and the new president, presents deep concern for the long-term effort to take up the more complicated effort to overhaul the corporate and individual tax codes. [The Washington Post]
President Trump reiterated on Twitter Saturday his argument that the health-care system set up by the Affordable Care Act will "explode" of its own accord — after which, he added, Republican lawmakers will successfully pass the replacement plan they could not swing without the added pressure of political explosion.
ObamaCare will explode and we will all get together and piece together a great healthcare plan for THE PEOPLE. Do not worry!
— Donald J. Trump (@realDonaldTrump) March 25, 2017
Leaders of the 27 European Union nations that will remain in the organization following the United Kingdom's forthcoming exit met Saturday in Rome on the occasion of the 60-year anniversary of the Treaty of Rome that established the European Economic Community, an EU forerunner. "Europe as a political entity will either be united, or will not be at all," said EU President Donald Tusk. "Only a united Europe can be a sovereign Europe."
The conference adopted the Rome Declaration, a brief statement affirming mutual "pride in the achievements of the European Union," including "common institutions and strong values, a community of peace, freedom, democracy, human rights and the rule of law, a major economic power with unparalleled levels of social protection and welfare."
British Prime Minister Theresa May, who did not attend the meeting in Rome, is expected to begin the formal Brexit process Wednesday by triggering Article 50. For more on how that process will work, see this explainer from The Week. Bonnie Kristian
Two men remain in custody Saturday for questioning in connection to the deadly attack at Westminster Bridge in London on Wednesday. The attacker, a 52-year-old English native born Adrian Russell Ajao but known as Khalid Masood, was fatally shot by police at the scene of the crime.
Police are now investigating whether Masood "acted totally alone inspired by terrorist propaganda, or if others have encouraged, supported, or directed him." The two men currently detained were among 11 people arrested so far; of the others, seven have been released without charges and two women have been released on bail.
Londoners meanwhile have deluged the area where the attack occurred with a veritable sea of flowers. "You will always be in our hearts," said a note from London Mayor Sadiq Khan to Masood's victims. "Londoners will never forget the innocent people who lost their lives." Bonnie Kristian