Jared Bernstein, chief economist and economic policy advisor to the president Joe Bidenfound himself in an awkward situation after struggling to articulate the basics of how money works during an interview for an upcoming documentary entitled 'Finding The Money'.
The documentary, which aims to explore the intricacies of economics, teased viewers with the elusive nature of understanding money, even for those deeply involved in economic policymaking.
During one particularly difficult discussion, Bernstein seemed to stumble over the question of how money is created and circulated.
“We all use money, and yet the questions of what money is and where money comes from remain elusive,” the film says in the preview.
Initially arguing that the U.S. government cannot go bankrupt because it can print its own money, Bernstein's response quickly turned to repetition and uncertainty.
“The U.S. 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 lending practices, Bernstein seemed to struggle with coherence.
“Well, some of the language is just confusing. The government absolutely prints its own money. The government absolutely prints money and lends that money. The government absolutely prints money,” Bernstein kept repeating.
“It then lends that money out by selling bonds. Is that what they do?” Bernstein then asked.
'They sell bonds and then people buy the bonds and lend the money. Yes,” he said finally, seemingly to reassure himself with his own answer.
Despite his role as chief economist and economic policy advisor, Bernstein's difficulty in articulating basic economic concepts raised eyebrows. He finally admitted his frustration, saying, “I don't understand. I don't know what they're talking about.”
The incident comes at a time when economic issues are at the center of public debate and raising concerns inflationjob growth and high prices dominate the discussions.
Despite positive labor market indicators, inflation and its consequences on the labor market persist interest rates continue to pose a challenge for many Americans, especially potential homebuyers.