Washington, D.C.- As talk of the debt ceiling and deficits reaches a fever pitch in the media and on Capitol Hill, a great deal of inaccurate information has clouded the reality of the national debt and deficits. A new issue brief from the Center for Economic and Policy Research describes 7 key facts about the debt, deficits and the dollar, and shows why a clear, unfiltered understanding of them is crucial to current policy debates.
“7 Things You Need to Know about the National Debt, Deficits, and the Dollar,” breaks down the basic economics of these issues in a manner unclouded by political agendas or partisan spin. It demonstrates the relationships between the national debt, budget and trade deficits, and the dollar and why these relationships matter.
The brief discusses the following points:
- The national debt is not literally a generational transfer
- The high dollar, not the budget deficit is what causes the trade deficit and foreign borrowing
- A large trade deficit requires that we have a very large budget deficit, extremely low private savings, or some combination thereof
- The stock and housing bubbles led to an enormous reduction in private savings through the wealth effect
- In times of economic weakness like the nation is experiencing now, deficit spending actually helps the economy to grow
- High and rising private sector health care costs in the United States are responsible for the bulk of the federal budget deficit
- Social Security has a dedicated stream of financing and does not directly contribute to the federal debt
There has been a great deal of hype and misinformation in discussions of the debt and deficit over the past few years. With the economy still reeling from the effects of the Great Recession, “7 Things You Need to Know about the National Debt, Deficits, and the Dollar” is a must-read primer on these issues and the relationships between them.
Read the full report here.
Help us Prepare for Trump’s Day One
Trump is busy getting ready for Day One of his presidency – but so is Truthout.
Trump has made it no secret that he is planning a demolition-style attack on both specific communities and democracy as a whole, beginning on his first day in office. With over 25 executive orders and directives queued up for January 20, he’s promised to “launch the largest deportation program in American history,” roll back anti-discrimination protections for transgender students, and implement a “drill, drill, drill” approach to ramp up oil and gas extraction.
Organizations like Truthout are also being threatened by legislation like HR 9495, the “nonprofit killer bill” that would allow the Treasury Secretary to declare any nonprofit a “terrorist-supporting organization” and strip its tax-exempt status without due process. Progressive media like Truthout that has courageously focused on reporting on Israel’s genocide in Gaza are in the bill’s crosshairs.
As journalists, we have a responsibility to look at hard realities and communicate them to you. We hope that you, like us, can use this information to prepare for what’s to come.
And if you feel uncertain about what to do in the face of a second Trump administration, we invite you to be an indispensable part of Truthout’s preparations.
In addition to covering the widespread onslaught of draconian policy, we’re shoring up our resources for what might come next for progressive media: bad-faith lawsuits from far-right ghouls, legislation that seeks to strip us of our ability to receive tax-deductible donations, and further throttling of our reach on social media platforms owned by Trump’s sycophants.
We’re preparing right now for Trump’s Day One: building a brave coalition of movement media; reaching out to the activists, academics, and thinkers we trust to shine a light on the inner workings of authoritarianism; and planning to use journalism as a tool to equip movements to protect the people, lands, and principles most vulnerable to Trump’s destruction.
We urgently need your help to prepare. As you know, our December fundraiser is our most important of the year and will determine the scale of work we’ll be able to do in 2025. We’ve set two goals: to raise $110,000 in one-time donations and to add 1350 new monthly donors by midnight on December 31.
Today, we’re asking all of our readers to start a monthly donation or make a one-time donation – as a commitment to stand with us on day one of Trump’s presidency, and every day after that, as we produce journalism that combats authoritarianism, censorship, injustice, and misinformation. You’re an essential part of our future – please join the movement by making a tax-deductible donation today.
If you have the means to make a substantial gift, please dig deep during this critical time!
With gratitude and resolve,
Maya, Negin, Saima, and Ziggy