Tagged: Debt

Transcript

LINDA WERTHEIMER, HOST:

Pre-school is one example of how President Obama says the government can play a constructive role in the U.S. economy. In his State of the Union speech, President Obama tried to refocus a debate that, for two years, has been all about cutting. The president is highlighting government programs that even many Republicans support.

Here's NPR's Scott Horsley.

SCOTT HORSLEY, BYLINE: The U.S. economy is slowly recovering from the Great Recession, but President Obama says the government could be doing more to help.

America, if you're scared by all the talk you've been hearing about the fiscal cliff, take heart: There are reasons for people across the political spectrum to love the cliff.

There's a lot for liberals to like in the fiscal cliff, says Matthew Yglesias, who writes wonky articles about economics for Slate.

Wars are expensive, and governments have always borrowed money to fight them. But it wasn't until the 20th century — the age of advertising — that governments started using war as a marketing tool to encourage citizens to buy government bonds.

To raise money for World War I, the U.S. government issued "Liberty Bonds," and launched an ad campaign full of dramatic, frightening posters.

For World War II, the government ditched the "liberty" euphemism and got straight to the point. It issued "war bonds," which were accompanied by a massive promotional campaign.

Let's do this one as a list:

1. The Argentine navy owns and operates a giant sailing ship. (This is relatively common, as it turns out.)

2. A hedge fund called Elliott Associates owns a bunch of bad Argentine bonds — basically, loans Argentina decided not to repay.