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One Economist On Why Deficits Don't Matter

Senate Minority Leader Chuck Schumer (D-N.Y.) talks with reporters during a news conference at the U.S. Capitol on Feb. 6, 2018 in Washington, D.C. Senate Republicans and Democrats announced they have made progress on reaching an agreement to fund the federal government. (Chip Somodevilla/Getty Images)
Senate Minority Leader Chuck Schumer (D-N.Y.) talks with reporters during a news conference at the U.S. Capitol on Feb. 6, 2018 in Washington, D.C. Senate Republicans and Democrats announced they have made progress on reaching an agreement to fund the federal government. (Chip Somodevilla/Getty Images)

This week Senate leaders reached a tentative spending deal that would raise defense and domestic budget caps for two years, tacking an additional $500 billion onto an already growing budget deficit.

That has fiscal hawks sounding the alarm. But does the deficit really matter?

Here & Now‘s Jeremy Hobson speaks with economist Stephanie Kelton (@StephanieKelton), who argues the words “debt” and “deficit” have been “weaponized for political ends.” Kelton is a professor of public policy and economics at Stony Brook University and former chief economist for the Senate Budget Committee Democratic staff.

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