cross-posted from: https://thelemmy.club/post/12591808
- Jared Bernstein, Joe Biden’s Chief Economist, faced difficulties explaining money’s workings in a documentary or Finding The Money,’ despite his role.
- He stumbled through concepts, highlighting the confusion around government money printing and borrowing
- Bernstein, who is head of the US Council of Economic Advisers, is not formally trained in economics and appeared bewildered in the clip
Yes - Bernstein stumbled into a contradiction of central banking.
The fed lends money to control some inflation levers (interest rates) as well as support the political economy of banking (allow financial firms to profit from the margin between fed rates and consumer rates). Lending money as opposed to just giving people money also facilitates, in theory, prioritisation of investments that will produce a greater rate of return.
Alternatively the US could dispense with bankers and centrally plan investment (in a much greater capacity - obviously things like the CHIPS Act are central planning to a degree).