PLEDGE NOW
Simon Johnson on Debt and Deficit

We’re looking at American debt and deficit and how to really, responsibly, bring it down, with economist Simon Johnson.

House Budget Committee Chairman Rep. Paul Ryan, R-Wis., holds up a copy of his budget plan entitled "The Path to Prosperity," Tuesday, March 20, 2012, during a news conference on Capitol Hill in Washington. (AP)

House Budget Committee Chairman Rep. Paul Ryan, R-Wis., holds up a copy of his budget plan entitled "The Path to Prosperity," Tuesday, March 20, 2012, during a news conference on Capitol Hill in Washington. (AP)

In the War of 1812, two hundred years ago this year, the young United States went out into the world without its finances in order – and got its White House burned down.

Flash forward two centuries.  The US debt and deficit are huge.  President Obama is talking up the Buffet rule this week, to get the rich to pitch in more.  Republican Paul Ryan wants to take an axe to the federal budget, and tax rates.

Former chief economist to the IMF Simon Johnson says both fall short.  It is high time for the US to get real, he says.

This hour, On Point:  how to really, responsibly, bring down the US debt.

-Tom Ashbrook

Guest

Simon Johnson, professor of entrepreneurship and economics at the M.I.T. Sloan School of Management.  Co-author with James Kwak of “White House Burning: The Founding Fathers, Our National Debt, and Why it Matters To You.” He blogs at The Baseline Scenario.

 From Tom’s Reading List

USA Today Ever since George Washington became the first president of the United States, politicians, economists, bankers, philosophers and citizens without titles have been arguing about the deficit and the national debt. The issue has been whether the nation should avoid deficit spending, engage in deficit spending and, if engaging, how much national debt is too much.

Economix Blog  There are two competing narratives about the federal government budget in the political mainstream today. The first is that we are, or soon will be, in crisis, because of runaway government spending. To avoid this crisis, we should cut spending by a great deal and as soon as possible.

The Huffington Post I have enormous respect for Simon Johnson. I first recall seeing him one late evening on a Bill Moyers segment in the middle of the financial crisis. I couldn’t quite believe that the former chief economist of the International Monetary Fund was complaining about the oligarchs in the financial industry using their control of the U.S. government to bail out their bankrupt banks.

Excerpt: “White House Burning”

[Use the navigation bar at the bottom of this frame to reformat the excerpt to best suit your reading experience.]

Please follow our community rules when engaging in comment discussion on this site.
ONPOINT
TODAY
May 27, 2016
Riot police block off the Albuquerque Convention Center to anti-Trump protests following a rally and speech by Republican presidential candidate Donald Trump at the convention center where the event was held, in Albuquerque, N.M., Tuesday, May 24, 2016. (AP Photo/Brennan Linsley)

Obama at Hiroshima. Turmoil at Trump rallies. Clinton’s emails, heating up. Sanders predicts a “messy” convention. Our weekly news roundtable goes behind the headlines.

May 27, 2016
In this Oct. 27, 2015, photo,  Big Muddy Farms, an urban farm in northern Omaha, Neb. is seen amongst residential homes. (AP Photo/Nati Harnik)

Just in time for Memorial Day weekend, we’ve got top gardeners spilling the beans on how to grow everything.

RECENT
SHOWS
May 27, 2016
In this Oct. 27, 2015, photo,  Big Muddy Farms, an urban farm in northern Omaha, Neb. is seen amongst residential homes. (AP Photo/Nati Harnik)

Just in time for Memorial Day weekend, we’ve got top gardeners spilling the beans on how to grow everything.

 
May 27, 2016
Riot police block off the Albuquerque Convention Center to anti-Trump protests following a rally and speech by Republican presidential candidate Donald Trump at the convention center where the event was held, in Albuquerque, N.M., Tuesday, May 24, 2016. (AP Photo/Brennan Linsley)

Obama at Hiroshima. Turmoil at Trump rallies. Clinton’s emails, heating up. Sanders predicts a “messy” convention. Our weekly news roundtable goes behind the headlines.

On Point Blog
On Point Blog
In The Garden, Mother Nature Makes The Rules
Friday, May 27, 2016

Executive producer Karen Shiffman explains why she turns to her garden for food, friends and natrual comfort.

More »
Comment
 
WWII Vet Larry Kirby Reflects On American Values
Thursday, May 26, 2016

Looking ahead to Memorial Day, a World War II veteran looks back at the experiences that mattered to him, both in and out of war.

More »
Comment
 
Gloria Steinem Explains Her ‘Bernie Boys’ Comment
Tuesday, May 24, 2016

Feminist activist Gloria Steinem explains why her apparent diss of female supporters of Sen. Bernie Sanders was anything but.

More »
Comment