Buy, Borrow, Steal

Hidden Brain

Hidden Brain Media

Arts, Science, Performing Arts, Social Sciences

4.6 • 40.4K Ratings

🗓️ 22 June 2020

⏱️ 49 minutes

🔗️ Recording | iTunes | RSS

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Summary

Policymakers have a tried-and-true game plan for jump-starting the economy in times of severe recession: Push stimulus packages and lower interest rates so Americans will borrow and spend. But economist Amir Sufi says the way we traditionally address a recession is deeply flawed. He argues that by encouraging "sugar-rush" solutions, the nation is putting poor and middle-class Americans and the entire economy at even greater risk. This week we look at the role of debt as a hidden driver of recessions, and how we might create a more stable system.

Transcript

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0:00.0	From NPR, this is Hidden Brain, I'm Shankar Vedantam.
0:05.0	We all love to buy stuff.
0:07.8	The best part is, we don't even have to pay for anything immediately.
0:12.0	Get lucky and own a new motorcycle for no money down.
0:15.0	No interest for 90 days. No payments for 120 days.
0:18.0	Celebrate for the July with cold packs.
0:21.0	Pay no interest for 16 months. That's five full years.
0:24.0	I use my free-to-money limited card.
0:25.0	Even when I'm spending on money, 1.5% cash back with everything I buy.
0:29.0	It's like free money.
0:31.0	Policy makers even tell us that a healthy economy is built on spending.
0:36.0	So getting that second credit card is not just good for us, but good for everyone.
0:42.0	But there's a catch.
0:44.0	In a downturn, when people lose their jobs,
0:47.0	what are the consequences of all the debt we've taken on?
0:52.0	Is borrowing our way out of every crisis really sustainable?
0:56.0	Ultimately, it has to be that we tackle the more fundamental issue,
1:01.0	which is why is there so much debt?
1:03.0	Why are people borrowing well beyond their means?
1:07.0	This week on Hidden Brain, the Hidden Manipulator behind our debt binge
1:12.0	and how to make a system that works better for everyone.
1:28.0	The United States is officially in recession.
	...

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