Jared Bernstein, Chief Economist and Economic Policy Adviser to President Joe Biden, has found himself in an uncomfortable situation after struggling to articulate the fundamentals of how money works during an interview for an upcoming documentary titled ‘Finding The Money’.
The documentary, which aims to explore the intricacies of the economy, teased viewers with the elusive nature of understanding money, even for those closely involved in economic policymaking.
During one particularly awkward exchange, Bernstein appeared to stumble over the question of how money is created and circulated.
“We all use money, and yet the questions of what is money, and where does money come from remain elusive”, the film says in the preview.
Initially stating that the US government cannot go bankrupt because it can print its own money, Bernstein’s response soon veered into repetition and uncertainty.
“The US government can’t go bankrupt because we can print our own money”, Bernstein first said.
As the interviewer pressed for clarification on the government’s borrowing practices, Bernstein seemed to struggle with coherence.
“Well, some of the language is just confusing. The government definitely prints its own money. The government definitely prints money and lends that money. The government definitely prints money,” Bernstein kept repeating.
“It then lends that money by selling bonds. Is that what that they do?”, Bernstein then asked himself.
“They sell bonds and then people buy the bonds and lends the money. Yeah,” he finally stated, seemingly to reassure himself of his own answer.
Despite his role as Chief Economist and Economic Policy Adviser, Bernstein’s difficulty in articulating basic economic concepts raised eyebrows. He ultimately admitted his frustration, stating: “I don’t get it. I don’t know what they’re talking about.”
The incident comes at a time when economic issues are at the forefront of public discourse, with concerns about inflation, job growth, and high prices dominating discussions.
Despite positive indicators in the job market, lingering inflation and its impact on interest rates continue to pose challenges for many Americans, particularly prospective homebuyers.
