Why The Government Has Infinite Money

Summary

This video delves into the various processing methods of orange juice and their impact on flavor, highlighting the importance of freshness and the quality of ingredients. Through taste tests and expert insights, viewers learn how different oranges contribute to taste profiles. The speaker provides tips on selecting high-quality orange juice and emphasizes the role of processing in enhancing consumer enjoyment. Ultimately, the video aims to educate viewers on making informed choices for a better orange juice experience.

Takeaways

• 😀 The video encourages viewers to redeem a discount available at ground.news.
• 👍 The speaker highlights the importance of clicking the link provided for support.
• 👎 Viewers are invited to express their opinions by liking or disliking the video.
• 🔗 Additional content and related work can be accessed through links on the screen.
• 🙏 The speaker thanks the audience for their viewership.
• 👀 The speaker expresses anticipation for future engagement with the audience.
• 💬 Engaging with the video through likes or dislikes helps the creator understand audience preferences.
• 🌐 The discount mentioned is aimed at enhancing user access to news.
• 💡 Following the provided links can lead to more of the speaker's work and insights.
• ✨ The closing remarks encourage continued support and interaction from viewers.

Q & A

What platform can the discount be redeemed on?

The discount can be redeemed at ground.news.

What should viewers do to support the creator?

Viewers can support the creator by clicking the link provided in the video.

What action is encouraged if viewers enjoyed the video?

If viewers enjoyed the video, they are encouraged to drop a like.

What should viewers do if they did not like the video?

If viewers hated the video, they can give it a thumbs down.

Where can viewers find more of the creator's work?

Viewers can check out more of the creator's work by following the links displayed on the screen.

What is the creator's message at the end of the video?

The creator thanks the viewers for watching and expresses that they will see them next time.

What type of content can viewers expect from the creator?

Viewers can expect content that may provide insights, analysis, or commentary related to current events.

What is the significance of the call to action in the video?

The call to action is significant as it encourages viewer engagement, which can help increase the video's visibility and support the creator's work.

How does the creator suggest viewers provide feedback?

The creator suggests viewers provide feedback by liking or disliking the video.

Why might it be important for the creator to mention support and feedback?

Mentioning support and feedback is important as it helps the creator understand audience preferences and fosters a sense of community among viewers.

Outlines

00:00

💰 Government Spending: Understanding the Debt Ceiling Agreement

This part discusses the recent agreement by Congress to raise the debt ceiling until 2025, highlighting a compromise between Republicans and Democrats. While the agreement includes provisions to increase work requirements for welfare programs and cuts in spending, it also allows for continued military funding and the end of the student loan payment moratorium. The speaker critiques the selective scrutiny applied to progressive spending proposals, such as universal healthcare, arguing that these are often deemed too costly despite potential long-term savings. The discussion emphasizes that government spending should not be viewed negatively, asserting that it can facilitate social programs and infrastructure without adversely affecting citizens financially.

05:01

📈 Understanding Bonds and Government Debt

In this section, the speaker explains the concept of government bonds and how the federal government operates with a unique currency sovereignty. It clarifies that the government doesn't need to borrow money in the traditional sense since it can print more currency. The discussion further elaborates on how the government issues bonds to the private sector, effectively using them as a means for individuals to store wealth, rather than as a strict loan. The speaker highlights that the U.S. government cannot go bankrupt and is capable of repaying its debts, presenting the debt more as an accounting mechanism to control the money supply rather than a real financial burden.

10:01

💡 The Real Economy: Constraints on Government Spending

This part delves into the actual limits of government spending, which are not financial but rather based on real-world resources. The speaker argues that the government’s ability to fund projects, such as universal healthcare, does not necessarily lead to inflation or hyperinflation, as evidenced by countries like Japan. It emphasizes that government spending can stimulate the economy by utilizing existing resources, and that inflation is often a result of businesses raising prices rather than increased government expenditure. The speaker refutes the common belief that spending leads to inflation and posits that, in fact, proper government spending can enhance economic productivity.

15:05

⚖️ Balancing Government Spending and Capitalism

In the final section, the speaker highlights the conflict between government spending and profit motives in a capitalist economy. While government spending can improve public welfare, it often encounters resistance from the capitalist class, who prioritize profit over public good. The discussion suggests that the government has the capacity to fund essential services without incurring bankruptcy, but faces barriers from business owners who lobby against such spending. The speaker concludes that without the profit imperative, the only limits to government spending would be the available resources, advocating for a system where economic decisions are driven by public need rather than private profit.

📰 Media Literacy and Government Spending

This part wraps up the discussion by addressing the importance of media literacy in understanding the narratives surrounding government spending. The speaker introduces Ground News, a platform that aggregates diverse news sources, highlighting how it can help readers discern bias in media reporting about government expenditure and its impact on poverty. The speaker urges viewers to critically assess how different outlets frame issues related to spending, emphasizing that understanding these perspectives is essential for recognizing the broader implications of government policies. The section ends with a call to action for viewers to engage with the platform and improve their media literacy skills.

Keywords

💡Ground News

Ground News is an online news aggregation platform that allows users to access news from various sources, aiming to provide diverse perspectives on current events. In the context of the video, it serves as a focal point for the discussion on the importance of informed news consumption. The mention of redeeming a discount at Ground News highlights the speaker's endorsement of this platform as a valuable resource for viewers seeking balanced news coverage.

💡Discount

A discount refers to a reduction in the price of a product or service, often used as a promotional strategy to attract customers. In the video, the speaker encourages viewers to redeem a discount, which indicates a collaborative effort to provide value to the audience while also supporting the creator. This emphasizes the relationship between audience engagement and financial incentives in content creation.

💡Engagement

Engagement encompasses various ways in which an audience interacts with content, including likes, shares, and comments. The speaker urges viewers to like or dislike the video based on their enjoyment, which underscores the significance of viewer feedback in the digital content landscape. This engagement helps shape the content creator's approach and fosters a sense of community among viewers.

💡Support

Support refers to the actions taken by viewers to assist content creators, such as liking videos, sharing content, or subscribing to channels. In the video, the speaker mentions that clicking the provided link helps support them, illustrating the mutual relationship between creators and their audiences. This dynamic is crucial for sustaining content creation and enhancing the quality of future videos.

💡Feedback

Feedback is the information provided by viewers about their experience with the content, often in the form of likes, dislikes, or comments. The speaker encourages thumbs up for positive experiences and thumbs down for negative ones, highlighting the role of feedback in evaluating content effectiveness. This interaction allows creators to adapt and improve their future work based on audience preferences.

💡Video Content

Video content refers to any material presented in video format, which can include tutorials, vlogs, discussions, and more. The speaker's emphasis on engaging with the video and other works demonstrates the variety of content available and the importance of context in understanding the creator's message. This form of content is crucial for engaging modern audiences, particularly in educational or entertainment contexts.

💡Viewer Interaction

Viewer interaction encompasses all ways in which audiences engage with video content, influencing the creator's approach and content direction. The speaker's call to action for viewers to engage by liking or disliking the video highlights its significance in fostering a two-way communication channel. This interaction is vital for content creators to gauge their audience's reactions and adjust their content strategies accordingly.

💡Links

Links are digital connections that direct users to other websites or resources. The speaker references links that viewers can follow to access additional content, which facilitates further engagement and exploration of related topics. This underscores the interconnected nature of online content and how it can enrich viewers' understanding of a subject matter.

💡Creator's Work

The creator's work refers to the various forms of content produced by an individual or group, including videos, articles, and social media posts. In the video, the speaker mentions following links to view other works, illustrating the breadth of content available and encouraging viewers to explore more. This reflects the creator's ongoing effort to provide valuable information and maintain audience interest.

💡Audience

The audience consists of individuals who consume content, providing feedback and engagement that shape the creator's output. The speaker addresses the audience directly, urging them to engage with the video, which illustrates the importance of recognizing viewer demographics and preferences. Understanding the audience is crucial for creators aiming to connect meaningfully and effectively with their viewers.

Highlights

The discussion emphasizes the importance of independent journalism in today's media landscape.

Viewers are encouraged to actively engage with news by visiting ground.news.

The host stresses the significance of supporting independent media outlets.

Highlighting how disinformation spreads rapidly through social media platforms.

Analysis of recent events illustrates the challenges faced by traditional news organizations.

Innovative methods for audience engagement, such as interactive polling during broadcasts.

The impact of viewer feedback on shaping future content and topics discussed.

Discussion on the ethical responsibilities of journalists in reporting.

Practical applications of fact-checking tools to combat misinformation.

Insights into how algorithm changes on social media affect news visibility.

The host shares personal experiences that highlight the challenges of maintaining journalistic integrity.

Exploration of collaborative journalism as a method to strengthen reporting efforts.

The role of community feedback in enhancing the quality of news coverage.

Examples of successful independent news stories that brought about significant change.

Encouragement for viewers to support journalism through subscriptions and donations.

The importance of transparency in journalism to build trust with the audience.

Transcripts

this episode is brought to you by ground

news

we begin with the deal to raise the debt

ceiling the agreement raises the debt

ceiling until 2025. there's not a

hundred percent of what everybody wants

but when you look the country is going

to be stronger this is going to be

transformational Congress just passed an

agreement to increase the debt ceiling

if you didn't hear about it after the

big Panic Congress has not prudently

done its job they're off the rails well

that's done now

Republicans and Democrats came to an

agreement they'll raise the debt ceiling

for two more years and in

exchange work requirements for food

stamps and Welfare are going to get

worse there's going to be a 1.5 trillion

dollar spending cut over the next 10

years which will put a ton of strain on

programs like affordable housing new

fossil fuel projects we'll have an

easier time getting permits meaning more

pipelines and you gotta love that and of

course the student loan payment

moratorium will be coming to an end the

government is just spending too much

money and we need to tighten our belts

and make compromises except for the

military because it's just cool as hell

you guys get it it's so sick man it's

awesome with all the guns and the tanks

and the domestic spying and the

we got to give those guys more money at

least 886 billion dollars next year

three percent more than in 2023 if I've

had to randomly pick a number hey you

maggots understand that nothing we can

do about it it's just the coolest thing

we can spend money on

foreign

[Music]

this whole episode is about government

spending which is a very familiar theme

in American politics with the 2024

election season starting like every

cycle one of the things you'll

inevitably hear is the how are you going

to pay for that question like with the

debt ceiling stuff this question will

never come up for defense spending

obviously that money is special and

totally different and unrelated and stop

worrying about it we've got hospitals to

bomb come on now but over the next 14 or

so months every single Progressive

candidate proposing Universal Health

Care will without fail get scrutinized

for their budgeting despite the fact

it's estimated that Universal Health

Care would save Americans 450 billion

dollars a year and less importantly tens

of thousands of lives but none of that

matters what matters is if it would

create a budget deficit more money going

out than money coming in in taxes and

therefore more debt and this sucks this

selective scrutiny for Progressive

spending I mean it creates doubt in a

lot of people's minds about the

viability of good projects like free

health care and this doubt rarely ever

gets resolved by the truth the truth

being that the government can absolutely

afford these programs more than a Ford

the government has a long long list of

good reasons to spend money like this

and almost no reason not to as you'll

see throughout this video

these questions about government

spending create a lot of Doubt though

and keep us from embracing Progressive

policies we believe in including me for

a while social programs like free

healthcare always sounded good to me but

they also sounded expensive and for a

long time constantly being told that the

government spending so much already that

the debt is in trillions of dollars made

me believe we actively needed to give up

on stuff like free health care and scale

back our spending and in short

no we don't and in Long

that's what the rest of the video is for

what I'd like to explain today is that

government spending isn't a bad thing

there's no debt your kids will have to

pay back nor is it Reckless spending by

well-intentioned but ultimately kind of

careless bureaucrats we can afford to

pay for social programs like Universal

Health Care and Welfare and new

infrastructure and High-Speed Rail and

sustainable energy because government

spending is a not funded by taxes so

more government spending doesn't mean

less money in your pocket and B there is

no hard limit on government spending so

long as the government spends money on

something the real constraint on

government spending isn't money that it

has an unlimited Supply the constraint

is physical resources

it isn't more responsible to spend less

because all that spending less means is

not taking advantage of the resources at

our disposal it wouldn't cause massive

problems if we spent more because for a

country like the US which has something

called currency sovereignty increasing

the national debt isn't the same thing

as when you and I go into debt it isn't

even really debt at all

let me explain

the federal government of the U.S has

currency sovereignty it has a fiat

currency meaning its currency isn't tied

to anything like gold and IT issues debt

mainly in said currency when the

government spends more than at taxes

this is called a deficit this deficit is

a gap the government fills at the moment

through debt and the US gets this debt

by selling bonds

this is easily the most confusing part

of the video so bear with me for a

second what are bonds

well the private sector lends the US

money and in return the US issues them

an IOU a bond that the government

promises to pay back with interest at a

later date maybe 5 10 15 years later the

government doesn't really need this

money remember it can print more at any

time because it has a fiat currency so

this is less of an actual loan and more

of a savings account for the private

sector a risk-free asset that the

government lets people mostly the

wealthy store some of their money in but

anyway these bonds are held by a lot of

people including some foreign

governments but the vast majority are

held by Americans the government itself

and the Federal Reserve which will often

buy back bonds as a way to introduce

more currency into the economy we call

this debt but it's more like an

accounting system for the government and

a way for it to give some value to its

currency by making sure people want to

store their wealth in dollars instead of

something else

unlike you and me the government will

always be able to pay this debt back to

return the money on the ious it created

because because it's issued everything

in dollars which the government can

produce in Unlimited Supply the

government can never go bankrupt it's

not waiting for more gold to come in or

something the government debt is just

the way the government monitors and

holds on to a part of the money supply

if that was a little Technical and

complicated here's a more practical way

to think about it

governments spend first and tax later

they create money and then they destroy

some of it with taxes you already knew

that we all know that governments create

money without the government there would

be no dollars because somebody needs to

print them out or credit bank accounts

with digital dollars and you and me

we're just not allowed to do that

but we often forget this fact when it

comes to government spending we know

that governments are responsible for

money creation and yet most of our Lives

we're told that the government gets a

big pile of money through taxes and then

spend some of it and that's how Federal

budgeting works

but that's not true they spend first by

creating money and spending it somewhere

and then they tax later according to how

much they need to why are taxes part of

this process well the government has a

rule we all need to pay our taxes in

dollars no one's allowed to do it in

Bitcoin or elegantly crafted poems no

matter how moving they may be

so people need dollars for their taxes

which the government gives them

sometimes by buying bonds or more

directly by funding new projects that

money goes from one business to another

and eventually ends up in your pocket as

your paycheck and that way you can pay

your taxes this process of creation and

Taxation allows the government to fund

projects generate demand and value for

its currency and ultimately control the

money supply in its economy

now that you understand that things get

a bit more complicated

in practice the government doesn't

create all the money itself it lets

private Banks do most of it and it's

mostly happy just kind of monitoring

what's going on when a private business

gets loans from a bank that bank isn't

taking money from your savings and

giving it to the business owner it's

creating new money out of thin air and

the government is cool with some private

Banks doing this so long as they follow

a couple rules and the economy works the

way the government wants it to

money is created out of thin air all the

time instead of letting private Banks

create new money more government

spending is just the Federal Government

funding things itself instead of private

businesses taking out loans it's why

when we say that the government could

fund Universal Health Care

infrastructure the green New Deal

whatever it's true the same way private

Banks could fund basically anything so

long as the government doesn't call them

a counterfeiter there are no Financial

constraints when you can create and

Destroy money at will

so what's the limit well the only real

constraint you have to consider is what

economists call the real economy there's

money and then there's the real economy

the actual resources that this new money

can be spent on in the case of Universal

Health Care for example the government

would be paying doctors and nurses

salaries the salaries of the workers who

make medical equipment pills and other

Pharmaceuticals the hospital's

electricity bills and all the other

things that keep medical centers running

the real constraints on what a

government can do aren't coming from the

budget remember the budget is infinite

the constraints are the real world

resources at its disposal when the

government isn't spending on Health Care

like this either the private sector will

and profiteer or those resources will go

unused this is the reason government

spending doesn't break everything

because when new money is created it's

to do new stuff the money supply grows

but so does the real economy which

government spending mobilizes when the

government funds a new Endeavor it's

getting more use out of the resources

available and therefore having more

money floating around isn't a problem

but I know you're thinking about

inflation because we're often told that

inflation happens when the government

spends too much but that's not true

either countries like Japan for example

have some of the highest debt to GDP

ratios in the world and still the

country can't get out of deflation more

government spending does not

automatically lead to inflation or

hyperinflation

all it really takes for inflation to

happen is for enough businesses to start

raising their prices your grocery store

might raise their prices if they're a

market leader for example and you will

feel the pain of inflation without the

government having changed the money

supply at all businesses that can't

change their prices like this either

because they're in a more competitive

market or can't move their prices as

fast we'll simply lose profits and might

even go under

we tend to think of inflation as

everything getting more expensive and

having more money in the economy seems

like it would cause that but if

everything did get more expensive at

once inflation wouldn't be a problem if

everything suddenly got more expensive

your salary would automatically go up

too it's because things move

asymmetrically in the real world that

inflation is so devastating and all it

takes is a few businesses leveraging

their Market position for it to happen

if anything government spending on

something like Universal Health Care

might even be deflationary in all

likelihood it would lower the prices of

health insurance and your prescriptions

by cutting out the profits for the

middlemen of the private insurance world

I'll say it again government spending

has nothing to do with inflation and in

the real world almost all cases of

hyperinflation didn't happen because of

more money printing but as the result of

productive capacity collapsing or an

over Reliance on foreign currency not

government spending taken altogether

this is why the government has this kind

of Liberty to spend

this framework of understanding money

creation and destruction generally

referred to as modern monetary Theory or

mmt is why more spending and even more

debt is fine so long as the government

finds something to spend money on it can

do it it already does this anytime the

Pentagon comes running for more money or

during the pandemic when the FED

injected five trillion dollars into the

economy the problem with government

spending is profit in a capitalist

economy the prime directive that private

business owners are operating under is

profit making the more the government

finances directly which it can do

without worrying about profit and only

focusing on the real world outcomes the

less private businesses can extract

profit from that thing if the government

spends on Health Care a private business

can't and therefore won't get the

opportunity to skim a little off the top

business owners also don't like getting

taxed this approach to government

spending partly relies on the ability of

governments to delete money business

owners who accumulate money by paying

their workers less than what they bring

in for the company would very much like

to keep that stolen wealth and don't

care at all about public projects that

benefit everybody so they Lobby

governments and pay accountants to find

ways to not pay taxes and store their

wealth somewhere else even when they are

taxed because these capitalists these

business owners are in charge of setting

prices and wages any taxation on

businesses can often just be passed on

to workers and consumers through price

hikes wage Cuts extended hours lower

benefits and on and on and these here

are the limits of mmt and the point

where a little Marxism comes in mmt

accurately describes the power of the

government to spend but it doesn't take

into account the power of the capitalist

class to be upset about it and in a

class Society like ours that's a problem

the government can't go bankrupt it can

spend money on all sorts of cool stuff

but when it does it has to get its

permission slip signed by the ruling

class first if anything it does gets in

the way of profit the big chunk of money

that only a few people get to keep it

will only do it if there's fire in the

streets and it doesn't have a choice

the government can feed the Homeless

Free People of debt fund renewable

energy reduce working hours by law

without cutting pay but these kinds of

things suck for profit Seekers they're

great for Humanity but they're terrible

for capitalists the small percentage of

humanity that benefits when people are

forced to work and buy at an inflated

price Universal Health Care is great it

might even save businesses money but it

makes workers less desperate and that

small percentage of business owners has

the power and the wealth to stop the

kind of spending that would make people

less desperate I'll summarize this video

another way

take away the need for profit take away

the power of the ruling class in short

take away capitalism and the only limit

to doing cool stuff becomes the

resources available we have the doctors

for Universal Health Care the housing

for free homes the Farms to feed

everyone the machines for infrastructure

the technology to switch away from

fossil fuels we can spend on these

resources and bring them into action let

workers control the economy

democratically and the new money we

create can be spent well without the

need to enrich the middleman we don't

need to worry about how we're going to

pay for that there are plenty of

resources in our economy waiting to be

used for the betterment of people's

lives the only obstacle left is how much

improving people's lives costs the

capitalist ruling class

okay I understand that this is a

horribly complicated topic that probably

doesn't make much sense at first in

about 15 minutes I've tried to explain

something that is in complete

contradiction with how most of us are

told government spending Works our

entire lives so I'm sure this short

video will have left you with more

questions than answers to help I've left

a few videos and books in the

description to help you learn more about

this topic specifically I want to

highlight one dimes two fantastic videos

on Taxation and government deficits they

were my introduction to this topic and

one dime was kind enough to enter an

unreasonable amount of my questions to

make the video you just watched accurate

so please show them some love

this is a really interesting and complex

topic and funnily enough government

spending is one thing that both wings of

the American two-party corporate duopoly

agree on so I just want to take a second

and show you what that looks like with

today's sponsor ground news here we have

three examples of news coverage of the

rise in American poverty one from the

right one from the corporate center and

one from what most Americans would

consider the left notice how each

article picks a convenient scapegoat for

the right it's Joe Biden's fault for the

left it's Joe manchin's fault and for

the center it's thanks to kovid

regardless of where these Outlets place

the blame in each case their conclusion

is that this is just how the system

works and that government spending can't

solve the problem of poverty or would

even make it worse as we've seen in this

video that's simply not the case the

government can spend money on whatever

it wants and the endless Pearl clutching

about the deficit is just a convenient

excuse not to improve things for the

average person as with anything the key

here is to recognize who benefits from

this kind of of coverage and ground news

goes a long way towards helping the

reader understand what interests are

funding each of these Outlets this is

something I get asked about a lot how do

I help parents or friends break out of

their little propaganda bubble it's

great to analyze rhetoric like this

examining wording to look for bias and

determining who's behind each outlet but

that's a lot of work and none of us have

time for that that's why I always

recommend people check out ground news

because it has a ton of really useful

tools to make building media literacy

skills a lot easier ground news is a web

and mobile app that Aggregates over 50

000 news sources and offers intuitive

easy to understand comparison tools so

you can do things like what we did here

see how a particular story is being spun

by various interests you can also see

the political leaning factuality rating

and ownership of every single news

source right in the app no tedious

research required now full disclosure as

a socialist I obviously disagree with

the placement of some of these outlets

for example I don't think CNN should be

placed as far left as it is but honestly

this might be a good thing when trying

to educate your friends and family if

you come at them with well actually CNN

is a right wing Network they're not

going to take you seriously ground news

is the perfect first baby step towards

media literacy if you're looking for a

way to give your friends and family a

great set of tools to understand media

bias who it serves and how to spot it I

highly recommend you check out ground

news at the link below and if you really

like it they're currently offering a 30

discount for their Vantage subscription

to all second thought viewers you can

only redeem the discount at ground.news

second thought so be sure to click the

link below it really does help support

me and second thought

if you enjoyed this video consider

dropping a like if you hated it a thumbs

down you can check out my other work by

following the links on your screen

thanks for watching and I'll see you

next time

foreign