Should We Actually Be Worried About the National Debt Diving In

In this opening episode for Platypus Economics, Justin Wolfers explains why the federal budget deficit is one of the best examples of how economics can clarify a debate that politics often mangles. The central point is simple: deficits are not automatically good or bad, but a tool. And the only serious question is whether borrowing makes sense given the economy, the emergency, and the country's ability to pay. In a crisis, large deficits are often smart policy—stabilizing incomes, supporting jobs, and keeping an economic downturn from becoming a disaster. But today's U.S. deficit is different. America is currently running a very large deficit—about 5.8% of GDP—without the usual crisis justification. The stakes are not instant collapse, but a slower erosion of fiscal capacity, institutional credibility, and the ability to spend on things that could actually improve your life.

You can listen to Should We Actually Be Worried About the National Debt Diving In online on Radio and Podcast. Open the player on this page to stream the available audio.

Should We Actually Be Worried About the National Debt Diving In is an episode from Think Like An Economist by Betsey Stevenson & Justin Wolfers.

This episode is 15:28 long.

This episode was published on May 6, 2026.

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