A “default on our debt” would be unprecedented in American history
A “default on our debt” would be unprecedented in American history
- January 11, 2023
- Gary Richardson, economics, PolitiFact, Jan. 11, 2023
-----
Gary Richardson, an economist and historian of the Federal Reserve system at the University of California, Irvine, said that by the same logic, one could argue that any time the Federal Reserve expands the money supply — as it has done repeatedly over the years — it reduces the value of existing money and thus shrinks the real value of payments promised to debt holders. "Inflation occurs almost every day," he said. "Why isn't this also labeled a default?"
For the full story, please visit https://www.politifact.com/factchecks/2023/jan/11/hakeem-jeffries/hakeem-jeffries-said-a-debt-limit-default-would-be/.
-----
Would you like to get more involved with the social sciences? Email us at communications@socsci.uci.edu to connect.
Share on:
Related News Items
- Careet RightHow much power does the Fed chair really have?
- Careet RightThe Fed has never been tested like this. It could emerge stronger
- Careet RightFed's independence in flux as Supreme Court weighs Lisa Cook's ouster
- Careet RightSupreme Court will decide if Fed independence has any legal teeth
- Careet RightFed Chair Jerome Powell fires back at DOJ investigation against him