DEBT LIMIT - A GUIDE TO AMERICAN FEDERAL DEBT MADE EASY IN 3 MINUTES

[stockholmer]

A satirical short film taking a look at the national debt and how it applies to just one family. Starring Brian Stepanek & Eddie Jemison, Produced by Seth William Meier, DP/Edited by Craig Evans, 1st AC Brian Andrews, Sound Mixer Gus Salazar, Written and Directed by Brian Stepanek.

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In the short time since this short was filmed, the US federal debt has went up over one trillion dollars, to well over $15 trillion.

[ProfessionalLeftist]

1. The film completely leaves out the other solution - RAISING REVENUE

It concentrates solely on cuts as a solution, and certainly there needs to be cuts. The debate is always around what should be cut. Defense is my personal #1 item. Corporate loopholes and subsidies need to go bye-bye as well. Also, congressional and senate salaries and benefits need to be cut. Maybe even the President's too.

But....taxes - particularly on the wealthy and non-paying corporations ... need to go UP - or they need to start paying when they clearly haven't been paying taxes at all in some cases.

A one-sided solution won't work. We need cuts AND increased revenues. The debate is mostly over where they should come from.

[stockholmer]

2. no, it did mention revenue-the banker asked the borrower to ask for 'a raise' ie. a tax increase

the man said that would be 'too uncomfortable'

[ProfessionalLeftist]

4. In Republican terms "politically uncomfortable"

They'd piss off Grover. Pfft.

[walerosco]

3. Good one

But I am just wondering when did we ever cut 380 billion from our budget? cos if I remembered correctly, we only cut from the projected increase instead of amount from the previous budget. Still paints a clear picture of what we are facing in this country, the young people are going to be left holding the bag while the older generation are going to die comfortably and stress free.

And ofc tax breaks for everyone should stop now, we are all in this together and we must cut and tax our way out of it

[JDPriestly]

5. If that guy could print his own money, then he could raise his debt limit.

How much stuff he would get in return for his money when he spent it might (probably would) change, but he would not have to ask anyone for permission to raise his debt limit.

That's what differentiates the family budget from the federal budget. Our Constitution authorizes Congress to print our money. It requires Congress to pay our debts. So, the size of our debt does not limit what we spend. It determines how much money we print.

The size of our debt determines how much we can buy on the market, but as long as those from whom we buy stuff are willing to sell us stuff for the money that our Congress allows our Fed to print, we can continue to print money.

We should not be worried about having our credit cut off. We should be concerned about having to pay more of our dollars for what we buy.

At the moment, prices are not rising precipitously. If they do, interest rates will go up, and then we will get more for the money we loan. For example, if interest rates go up, those who borrow from the Fed -- like banks, will have to pay higher interest rates on the money they borrow. And then, they will borrow less from us, but we might earn just as much if not more from the money we loan.

The guys in the video don't look too bright. And if they really think that the roles they are playing instruct Americans about our national debt, then maybe they aren't.