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Fact: America's national debt stands at $17 trillion. That's a tough number to grasp. Most people will never come close to making $1 million in any given year. How can we understand the magnitude of the hole our country is in? Well, imagine you owed your credit card company $200,000. On top of that you have to pay them about $4,000 per year in interest. You are bringing in $150,000 per year, but you are spending way more than that. How are you going to ever pay back that $200,000 debt? And what happens if you default? Well, that is America today. The problem is clear. And we brought Michael Tanner, a senior fellow at the Cato Institute, to propose a solution. Donate today to PragerU! http://l.prageru.com/2ylo1Yt Joining PragerU is free! Sign up now to get all our videos as soon as they're released. http://prageru.com/signup Download Pragerpedia on your iPhone or Android! Thousands of sources and facts at your fingertips. iPhone: http://l.prageru.com/2dlsnbG Android: http://l.prageru.com/2dlsS5e Join Prager United to get new swag every quarter, exclusive early access to our videos, and an annual TownHall phone call with Dennis Prager! http://l.prageru.com/2c9n6ys Join PragerU's text list to have these videos, free merchandise giveaways and breaking announcements sent directly to your phone! https://optin.mobiniti.com/prageru Do you shop on Amazon? Click https://smile.amazon.com and a percentage of every Amazon purchase will be donated to PragerU. Same great products. Same low price. Shopping made meaningful. VISIT PragerU! https://www.prageru.com FOLLOW us! Facebook: https://www.facebook.com/prageru Twitter: https://twitter.com/prageru Instagram: https://instagram.com/prageru/ PragerU is on Snapchat! JOIN PragerFORCE! For Students: http://l.prageru.com/29SgPaX JOIN our Educators Network! http://l.prageru.com/2c8vsff Script: If you are under, say, 30, you have a tsunami-sized problem coming toward you, and you probably don’t even know it. That killer wave is the national debt. Countries, like people, go into debt when they spend more than they have. You and I buy things with the money we earn. Governments buy things with money they get from taxes. When spending outstrips revenue, the government is “in the hole.” Right now, the hole is $17 trillion dollars deep. This is an incomprehensible number. What is a trillion dollars, let alone $17 or 20 trillion? Common analogies like “you’d have to stack $1 bills 67,000 miles high to reach the current debt,” though impressive-sounding, don’t help much, if it all. So, let’s bring the problem down to earth. Right now, most investors believe the United States is a safe bet. They believe, in other words, that they’ll get the money they loan to the US back with interest. But this can’t go on indefinitely. At some point investors are going to say, “you have too much debt; you’re a bad risk. No more money.” What happens then? We don’t have to guess. We can look at Europe, specifically Greece. Investors were happy to loan Greece money until 2010, when it finally dawned on them that Greece couldn’t possibly pay them back. Almost overnight, Greece became a very bad credit risk and the economy went into a death spiral. Businesses failed. Thousands were thrown out of work. The government couldn’t pay its bills. Germany and the other European economies had to step in and bail Greece out. But the Greeks suffered terribly. The same thing happened in Portugal and Spain. Yes, the United States is much, much bigger than Greece and has a much more dynamic economy. That’s true. But the principle doesn’t change. We can borrow more money than Greece, but sooner or later, investors will say “no more.” And if they ever do, our economy will go into the same downward spiral the Greek economy did. Here’s another point. At the time I am giving this course, the interest on our debt is very low, around 2%. But what happens when the interest rate rises from 2% to the much more normal 5% -- as it inevitably will? Where is the U.S. going to get the money to pay the higher interest on its enormous debt? Do we borrow even more? Well, that just gets us deeper in debt. Raise taxes? Well, that cuts economic growth. Then there’s the question of who these investors are who are loaning us all this money. The biggest investor right now is China, not exactly a trusted ally. The more money they loan us, the more influence they have over us. Maybe they’ll never exercise this power, but do we really want to give them the option? For the complete script, visit https://www.prageru.com/videos/americas-debt-crisis-explained
Japan and Germany starred in two of the greatest economic miracles of the twentieth century. For three decades, both countries achieved huge growth rates, which allowed both Japan and Germany not only to recover from the damage caused by World War II, but even to become some of the richest countries in the world. However, in Japan, the model came to a sudden halt between 1989 and the early 1990s. Today, the German model has shown itself as superior and has reaped better economic and social results. So the question we ask ourselves in this video is, why has the German model been better than the Japanese? Why has Germany performed better than Japan for the last decades? Some possible answers, which we discuss in this video, have a lot to do with the Keiretsu, how the Yen and the Marco were managed differently, and a very different immigration policy. And don't forget to visit our friend’s podcast, Reconsider Media: http://www.reconsidermedia.com/ CC licensed content used in this video: Archie Lim - Tokyo People https://vimeo.com/150253723 Trimedia - Nagano https://vimeo.com/90448936 Adam Szulc - A walk around Munich https://vimeo.com/27854422 Courtesy: Ronald Reagan Presidential Library
The former prime minister of Australia, Kevin Rudd is also a longtime student of China, with a unique vantage point to watch its power rise in the past few decades. He asks whether the growing ambition of China will inevitably lead to conflict with other major powers — and suggests another narrative. TEDTalks is a daily video podcast of the best talks and performances from the TED Conference, where the world's leading thinkers and doers give the talk of their lives in 18 minutes (or less). Look for talks on Technology, Entertainment and Design -- plus science, business, global issues, the arts and much more. Find closed captions and translated subtitles in many languages at http://www.ted.com/translate Follow TED news on Twitter: http://www.twitter.com/tednews Like TED on Facebook: https://www.facebook.com/TED Subscribe to our channel: http://www.youtube.com/user/TEDtalksDirector
"The Progressive Income Tax" is one of those economic terms that gets bandied about, but few actually know what it means or how it works. This tale of three similar brothers with three different incomes (but one shared expense) helps explain the tax system under which we live. Adapted from an article by noted investor and economist, Kip Hagopian, and narrated by actress Carolyn Hennesy of "General Hospital" and "True Blood" fame, this animated story will change the way you think about how you pay your taxes. Donate today to PragerU! http://l.prageru.com/2ylo1Yt Joining PragerU is free! Sign up now to get all our videos as soon as they're released. http://prageru.com/signup Download Pragerpedia on your iPhone or Android! Thousands of sources and facts at your fingertips. iPhone: http://l.prageru.com/2dlsnbG Android: http://l.prageru.com/2dlsS5e Join Prager United to get new swag every quarter, exclusive early access to our videos, and an annual TownHall phone call with Dennis Prager! http://l.prageru.com/2c9n6ys Join PragerU's text list to have these videos, free merchandise giveaways and breaking announcements sent directly to your phone! https://optin.mobiniti.com/prageru Do you shop on Amazon? Click https://smile.amazon.com and a percentage of every Amazon purchase will be donated to PragerU. Same great products. Same low price. Shopping made meaningful. VISIT PragerU! https://www.prageru.com FOLLOW us! Facebook: https://www.facebook.com/prageru Twitter: https://twitter.com/prageru Instagram: https://instagram.com/prageru/ PragerU is on Snapchat! JOIN PragerFORCE! For Students: http://l.prageru.com/29SgPaX JOIN our Educators Network! http://l.prageru.com/2c8vsff Script: Once upon a time, there were three brothers, triplets, named Tom, Dick, and Harry Class. They were raised in the same home, with the same parents, had the same IQ, same skills and same opportunities. Each was married and had two children. They were all carpenters making $25 per hour. While they were very similar in all these respects, they had different priorities. For example, Tom, chose to work 20 hours per week, while his brother, Dick worked 40 hours and Harry 60. It should also be noted that Harry's wife worked full time as an office manager for a salary of $50,000. Dick's wife sold real estate part time 10 hours a week and made $25,000 per year. Tom's wife did not work. Tom and Dick spent all of their family income. Since they paid into Social Security they figured, they didn't need to save for retirement. Harry and his wife, on the other hand, had, over many years, put away money each month and invested it in stocks and bonds. Here's how it worked out: Tom made $25,000 a year, Dick and his wife made $75,000 and Harry and his wife, $150,000. When a new housing development opened up in their community, the brothers decided to buy equally-priced homes on the same private street. One day the brothers decided to pool their funds for the purpose of improving their street. Concerned about crime and safety, and wanting a more attractive setting for their homes, the three families decided to install a security gate at the street's entrance; repave the street's surface; and enhance the lighting and landscaping. The work was done for a total cost of $30,000. Harry assumed they would divide the bill three ways, each brother paying $10,000. But Tom and Dick objected. "Why should we pay the same as you?" they said. "You make much more money than we do." Harry was puzzled. "What does that have to do with anything?" he asked. "My family makes more money because my wife and I work long hours, and because we have saved some of the money we've earned to make additional money from investments. Why should we be penalized for that?" "Harry, you can work and save all you like" Tom countered. "But my wife and I want to enjoy ourselves now, not 25 years from now." "Fine, Tom. Do what you want. It's a free country. But why should I have to pay for that? "I can't believe your being so... unbrotherly," Tom argued. "You have a lot of money and I don't. I thought you'd be more generous." At this point, Dick, the peacemaker in the family, entered the conversation. "I've got an idea," Dick said. "Our combined income is $250,000, and $30,000 is 12 percent of that amount. Why don't we each pay that percentage of our income? Under that formula, Tom would pay $3,000, I would pay $9,000, and Harry would pay $18,000." "I have a much better idea," said Tom. "And one that's fairer than what you're proposing." For the complete script, visit https://www.prageru.com/videos/progressive-income-tax-tale-three-brothers
We're doomed. pass it on
A short, visual explanation of Japan's debt crisis by Aftab Singh (https://twitter.com/affalytics).
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