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
Sen. Ted Cruz (R-Texas) picked up about 80 delegates of more than 170 on the table at local and state conventions Saturday, Politico reports.
He snagged a majority of delegates in Arizona and Virginia, two states that strongly backed Donald Trump in primaries. Cruz also made gains in Missouri. Trump fared well in Massachusetts, Alaska, and Arkansas.
Most delegates are obligated to support the winner of their state's nominating contest on the Republican National Convention's first ballot, but can switch allegiances in future rounds of voting. Cruz's strategy banks on Trump not being able to grab the minimum of 1,237 delegates needed to secure the party's nomination outright. Julie Kliegman
President Obama spared no one when he took the stage Saturday at his final White House Correspondents' Dinner. He poked fun at journalists, Democrats, and Republicans alike, saving his harshest jokes for Donald Trump, who didn't attend.
"You have a room full of reporters, celebrities, cameras. And he says no. Is this dinner too tacky for The Donald? What could he be possibly doing instead?" Obama said. "Eating a Trump Steak? Tweeting out insults to Angela Merkel? What's he doing?"
The president proceeded to end his speech with a literal mic drop. Julie Kliegman
— ABC News (@ABC) May 1, 2016
Sen. Marco Rubio (R-Fla.) maintained Friday that he'll support the Republican presidential nominee, even if that somebody happens to be Donald Trump, The Palm Beach Post reports.
In fact, Rubio might be more impressed with the billionaire business mogul than usual, saying his "performance has improved significantly" recently.
Republican presidential frontrunner Donald Trump was none too thrilled Saturday with the protesters who blocked his way into California's Republican convention the day before:
The "protesters" in California were thugs and criminals. Many are professionals. They should be dealt with strongly by law enforcement!
— Donald J. Trump (@realDonaldTrump) April 30, 2016
Leave it to Trump to make an off-color joke about the incident once he made it inside the hotel Friday.
Jimmy Fallon has been singing bits and pieces of Styx's "Too Much Time on My Hands" on The Tonight Show for days. On Friday, he and actor Paul Rudd took the obsession to its natural conclusion, creating a shot-by-shot remake of the '80s music video. The end result is sufficiently goofy. Take a look below. Julie Kliegman
Hundreds of activists stormed Iraq's parliament building Saturday in support of Shiite cleric Muqtada al-Sadr, who had accused Iraqi politicians of corruption, CBS News reports.
The demonstrators climbed over blast walls in Baghdad's Green Zone, which houses most of the country's ministries and foreign embassies, after parliament couldn't reach quorum to hold a session. The protesters broke furniture, chanted, and waved Iraqi flags.