1. What is the typical political narrative about the national debt?Provide examples about the political narrative from the beginning of Stephanie Kelton's lecture. What does Stephanie Kelton say about the debt?

2. What is the biggest mistake in our thinking about the debt according to Stephanie Kelton? Why is the government budget different from a household budget? Why is deficit spending different from household spending?

3. What are the 5 big questions and their answers? List and describe each separately.

4. What did you learn about the graphs above from Kelton's lecture? Why does Kelton say we need government deficits?

Then answer the following short answer questions directly from the textbook reading and the national debt clock website:

5. What is the current U.S. National Debt?

6. According to the textbook, what are the short benefits associated with our current high federal government budget deficits?

7. According to the textbook what are the short costs associated with our current high federal government budget deficits?

8. According to the textbook, what are the long-term benefits associated with our current high federal government budget deficits?

9. According to the textbook, what are the long-term costs associated with our current high federal government budget deficits?

10. If Kelton is correct, and it is the allocation of real resources rather than the size of the deficit that matters, what policies do you think are important for governments to spend money on. Think big. How should the U.S. be using our labor and natural resources? Pick at least two big social or political issues that you care about or that affect your family. Remember:This question is not how we pay for it, but how we resource for it.

Stephanie Kelton lecture: https://www.youtube.com/watch?v=WS9nP-BKa3M