Dear Crash Course Economics team, I want to thank you for everything. A few weeks ago, I was panicking because my academic decathlon competition was coming up and I knew nothing of economics. What did I do? I watched all your videos and as a result I received a medal in economics!!! Thank you for everything. Continue the good work!!!
Some notes if anyone needs em! -Barter system is the alternative to money, but is highly inefficient -Money serves as a medium to exchange, store of value, and a unit of account -In the past we had the gold standard which connected each dollar to a value of gold -Stock market is part of the Financial system which is composed of Lenders (corporations and households) and borrowers (households, businesses, governments) -Financial system = a network of institutions, markets, and contracts that brings lenders and borrowers together -3 ways this happens: banks, bonds, stock market -Banks deal with debt, stocks deal with equity (the difference between the value of assets/ interests and the cost of the liabilities of something owned) -Financial instrument = a tradeable asset of any kind -Banks are Financial Institutions = an establishment that conducts financial transactions such as investments, loans, and deposits
When you say the word money, I don't know what the hell you're talkin about. Are talking about a worthless Federal Reserve Note or a silver certificate or are you talkin about a coin you guys are so stupid. You just throw the word money out there. You don't specify what you're talking about.
Why do people say gold and silver are money they're Barter First and are used as money but if you had any brains and you actually read the laws you don't understand what you were saying is incorrect you want to debate me bring it on
What law states would a dollar is please let me know here because I'm all ears I got all day long to to learn from you know it all person what law states what a dollar is in law please tell me
Debate me one point at a time I don't want to hear any garbage rambling on here you take me on one point at a time and show me that you're smarter than me and don't start crying cuz they called your name don't be a crybaby take it like a man you can call me whatever names you want I don't care I'm a man I'm not a crybaby or sissy come on bring it on let's debate here one point at a time
+killerfrenchy Yea they seem to have the impression that Bitcoin = US$0.25 or something. Please check out my videos on economics and let me know what you think.
OMG! Love this! Thanks for actually speaking at a rate that I can follow. Other videos are edited and sliced together so tightly that it has NO pauses in between sentences for the information to sink in.
A minor correction, bitcoin is *not* anonymous; it is pseudonymous. All transactions that have ever occurred since Bitcoin's inception is permanently recorded on the public world-wide ledger. There're no names and identities associated with each transaction but it doesn't mean someone can't figure out who made those transactions with some research. In fact, there are already tools to help assist with this. Given that fact, using bitcoins for illicit transactions is ill advised; fiat cash like dollars and euros is better suited for that purpose.
I think they did that on purpose , to negate the sheer panic and revulsion this particular subjects , ie, finance creates in many ppl. They are hoping to ease them in with some normal jokes and stuff .
Gold standard kept central banks and sovereign governments from unbridled spending. Debt skyrocketed as soon as the gold standard was ended in the 70’s. Currencies are now subject to inflation. This is why owning gold is so important, and it’s why central banks worldwide store thousands of tons of gold and even now are buying more gold for their reserves. As JP Morgan said, “gold is money, everything else is credit”.
Let us note that a Barter Economy never existed. Barter happens, but it has never been the basis for any economy that we know of. It was assumed by 17th and 18th century economists that barter must have preceded monetary economies; but the evidence that we have is to the contrary. The most typical economy prior to money was (as far as we can tell) a Gift economy. Essentially if you need something that I have, I give it to you and you incur the social obligation to give me something that is of equal or greater value in the future. If you fail to do so, you lose status and people are less likely to give you stuff.
Paul Peterson essentially an IOU system right? My guess is that barter only arises when there is difficulty in buying something, like if the other person doesn't have money or you don't trust him or her. But they do know money exists. So i think barter happens after money. Economics always taught that the monetary system arose from barter but i don't think it did. I think we used barter when the monetary system broke down or if we don't trust the other party.
I have been trying to understand a chapter on money and banking for almost 2 days and i couldnt get anywhere. Thank you crasg course for finally making me get a hold in this
1. With Fractional Reserve Banking, money is created out of thin air, then loaned out, not all of which gets paid back due to bad loans and bankruptcies. And the real money that is paid back, does it go back into thin air or into someone's pocket? 2. GDP is new stuff only. A total economy includes non-GDP stuff too. Where many economists make their errors. (Basically focusing only on GDP and not including non-GDP stuff). Be very careful of charts and data that base their findings upon GDP alone.
+Charles Brightman They don't focus on the "non-GDP stuff" (very technical language you're using there, by the way) because the value of said "stuff" is already contained in the GDP figure, which includes consumption of final goods and services, changes in inventory of unsold final AND intermediate goods, and investment in works in progress not accounted for elsewhere. There are a few areas where most nations don't count economic production, such as in gray or black markets such as prostitution and drugs, but it doesn't sound to me like that was your point.
+Charles Brightman once the dept that created the currency is paid, the money is destroy once the dept is paid but not the interest. but the fact still remains no dept= no money
+marlonyo The problem with the No Debt = No Money claim is that ignores the easily verifiable fact that many banks often hold reserves in excess of their reserve requirements (if not, explain the overnight reserve lending market that is priced by the Fed via the federal funds rate; also, especially since 2008 when the Fed started paying interest on reserve deposits). Otherwise, those banks holding said excess reserves wouldn't be able to lend in the first place. The fact that some conspiracy-laden animated RUclips video says to the contrary doesn't mean you should believe it.
One healthy thing in Asian economies is the use of bartering. Knowing about Bartering or the value of one thing against another might be beneficial. Knowing value or values of goods may be useful.
The problem of fiats or non-gold standards is representing scarce resources with a non-scare resource (Of course other scare resources such as petrol or electric energy can be used)
And I agree the gold standard is unlikely to return, but the reason for that is self interest. Incentive, as you so rightly put it. Politicians and bankers don’t want to enact a gold standard because politicians and bankers don’t want restrictions on how much they can spend and how much money they can print without end. It is in their own self interest to keep the gold standard, which would enforce fiscal responsibility, extinct.
The Gold Standard might have its weaknesses but as money is all about confidence in it, I trust a metal that pretty much always in history had a high value and a stable growth (of amount), it seems to me far more reliable than money that can just be created out of thin air arbitrarily. off-topic: Is it just me or does Adriene's hair get brighter every episode?
There's an intersection between the bond market and the stock market in Australia. The Commonwealth Government sells some of its treasury bonds on the ASX. If you've got a few hundred dollars to spare, you can buy them in units of $100 face value, though the market price will almost certainly be higher. A couple of dozen companies also do likewise. The government bonds have codes beginning with GSB (fixed-rate) or GSI (CPI-indexed) followed by a letter and two numbers (eg GSBC17, which matures in 2017). Corporate ones have codes that consist of the company's code followed by H and a letter to indicate sequence (eg. WBCHB being the second such bond issued by Westpac Banking Corporation).
0:48 The barter system is just an ideal and never existed as a large system. Instead people traded on credit. The idea of friend's, family, neighbor's IOU system. Money was invented NOT to represent the barter system but rather as an easy way to represent how much your friend's, family, or neighbor's owe you.
+Richard Fry, Do not believe me? That is OK, John Green himself pointed this out in the following video: Money and Debt: Crash Course World History 202 At 3 minutes and 44 seconds into the video he touches on this topic of bartering specifically
+Richard Fry Came here for this comment!! I'm currently reading Debt: The First 5000 Years by David Graeber which John bases that video off. Extremely fascinating book and well worth reading if you're interested in the origins of money.
Economics now a days don't care about history. In ancient times, they never bartered, they used IOU's. You are right. They only bartered for international trade because it was hard to see the other party as genuine so they traded gold or something valuable, that is barter. But the domestic economy used IOU's, they rarely bartered.
It'd be nice if they made a video about the factors of production. I'm still confused on the idea of entrepreneurship and all those business-related stuff.
From wat I remember from year 11 econ, the factors of production r: -Land (i.e. the actual geographical area, natural resources, flora and fauna) -Labour (people who work for salaries/wages) Capital (refers to both machinery/tools/infrastructure needed to make consumer goods and services, like factories and tractors; AND financial funds) -Entrepreneurship (Entrepreneurs and business people who basically run and start businesses). The "factor payments" (returns) on each factor of production r: -Rent for land -Wages/ salaries for labour -interest for capital -Profit for entrepreneurs P.S. Some econ textbooks/courses just lump entrepreneurs into the same category as labour, so don't b confused if they're not mentioned explicitly.
Na, I'd rather loan money to my drug dealer neighbor next door; it the system, man. I don't need no banks! I love how this series explains that "the system" and "the man" who're trying to keep us down are actually processes that run on an understandable logic, like an engine or a chemical reaction. People wouldn't be so paranoid if they took the time to understand the things they're afraid of
+Greg Moberg _“The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown”_ ~ H.P. Lovecraft, Supernatural Horror in Literature
+BlankPicketSign If not for the fact they debase the money constantly through inflation. You essentially have had the government rob more money from you than any mugging, or other combined theft you've ever had. And while that might not be enough, the currency today is very far detatched from it's actual value. In short they'll have to repeg the dollar soon. You may remember Russia early 2015 had to repeg the ruble. Everything started costing twice as much (actually the ruble lost half it's value.) The US will have to do the same thing, only it will be much more severe. (You'll be VERY lucky to get 1/3rd) And sadly that's only the start of the bad ridiculously bad things our monetary system has going for it.
***** Watching this series will show you that Inflation can be controlled, but how it can also help an economy. America and Russia are very different, and while it is wise to try to understand how economies work, you can't just look at one county and then predict doom and gloom for another. If you care about Monetary Policy, then use your right to vote, get people in office who you believe are responsible and have experience with managing economic systems. And no... being "a business person" does not qualify someone to run a county or an economy. Vote for people who actually Know how the system works
NONE OF THIS WAS TAUGHT IN MY FINANCE 101 CLASS. .... AHAHHHHHH PROFESDOR WHY WON'T YOU GIVE US A STUDY GUIDE FOR THE FINAL??? IM GOING TO DIE TOMORROW
'Banks keep some of the interest to cover their costs.' You missed out '...and to make massive profits'. They also charge fees to cover their costs and to add to the massive profits. And, when they make bad bets on lending, they look for government bail-outs.
If I borrow from a bank it is not necessarily someone's money, or rather only a fraction will be. Banks can loan more than they actually have in deposits
when you borrow from a bank, they create it out of nowhere. They didn't use someone else's money. We do not have fractional reserve banking. We have a full credit system. Banks do not need deposits to be able to grant credit.
How is it better than Kickstarter? Here, you need to be really rich to be a lender and actually earn some money. And if you want money to start something, you have to be in a debt. There, people (don't have to be rich) that want the product give small donations which fund it. They get the thank you email, yes, but they get the product they want. So basically, Kickstarter is giving the people a chance to invest into something they really want, not into something that rich people want and that is constrained by the financial system and the market. The Kickstarter concept is actually an indicator of what is wanted on the market, and what is not. Even more, it's reversing the process. Instead of companies investing money in a product, and then investing into marketing for that product (which helps in selling shitty products that are basically everywhere now), you have companies offer to make something, and people 'vote' for that product by lending money. So no, Kickstarter all the way. (Sorry, maybe it's not an important part of this lesson's topic, but I just couldn't let it pass :) )
"Here, you need to be really rich to be a lender and actually earn some money." Not necessarily. As they mentioned at 6:26-6:44, when u deposit money in a bank account, the bank uses that money to invest and loan to others, earning interest. And if u deposit your money in a savings account, u get some of that interest. Every time u deposit money in a bank, u r actually indirectly lending 2 people (and earning interest if its a savings account). Everything else u said tho is pretty much true.
In terms of money backed by gold. Currently (if I am not misinformed let me know) and the US government is working on bring the Treasury Reserve Notes with is money backed by gold?
"Many people still barter for stuff" kind of implies anyone ever actually tried to barter dentistry for a car, or zuchini for pizza. There's an interesting book called Debt: The First 5,000 Years which talks about, among other things, popular misconceptions re: the barter system - it actually tends to show up in the wake of a collapse in a money-using society, not in societies that haven't developed money yet. Those only use barter when dealing (rarely) with total strangers - if there's any level of mutual trust within a community, they just figure someone will get them back at some point. Maybe this widespread barter idea is so believable because we do buy most things we buy off total strangers, but we live in a pretty unusual age in the grand scheme of things.
Ah I see what u did there. Also, taking ur comment literally then she probably imported it from the middle of the Congo rainforest. No wonder she's expecting 10 bitcoins for it.
6:38 "the bank takes part of the money to cover their costs and passes the rest to the depositer..." hahaha I wish the reality was like that but I think the right way to explain it is: "the bank takes a huge amount of the money to cover its costs and make massive profits and give the depositer a pathetic interest rate"
I want to know what makes the value of money change?, I mean what makes the dollar goes up and down?, also what causes the difference between currencies? I hope you answer me or even make theme into a future episodes
Some of this is straight outta David Graeber's book "Debt: The First 5000 Years" as mentioned in Crash Course: World History II. Glad to see it had some staying power!
The barter system has never been employed as the main way of making transactions. Debt and IOU 's are said to be the way people handled transactions in the past.
Debt = trust. The interest rate at which you loan to a bank or a bank loans to you is a measure of that trust. If everyone trusted everyone completely, there would be no need nor "interest" in interest.
+Zach Gaskins Unless there is inflation. If you lend someone a dollar, and the value of the dollar decreases over the course of that loan, then they owe you more than a dollar to cover for that.
+Zach Gaskins In the word of Dwight Shrute: "False." Even in a zero inflation economy where every lender fully trusts every borrower, latent risk will not be fully eliminated (i.e., just because you aren't a credit risk isn't sufficient reason for rational lenders to assume you are also somehow immune to accidents caused by others, or caused by no one at all). Thus, there is always some risk, which will be reflected in the interest rate accordingly. And even if you somehow eliminated all risk whatsoever, people still have time preference; i.e., they want to spend their own money now unless you promise them an interest rate sufficient to overcome their preference to consume goods today instead of deferring that consumption to some future time.
the guy: we dont need these green sheets of paper Also him: you can support us with your green sheets of paper we dont need them but they do coincidence i think not.
The barter system has never been employed as the main way of making transactions. It was only ever a ceremonial activity. Debt and IOU 's are said to be the way people handled transactions in the past.
There is no "Nobel prize of economics" but a private prize organized by a swedish bank in memory of Nobel which is not related to the Nobel Peace prize, for instance. It's odd to find this common mistake in such a quality channel
Dear Crash Course Economics team, I want to thank you for everything. A few weeks ago, I was panicking because my academic decathlon competition was coming up and I knew nothing of economics. What did I do? I watched all your videos and as a result I received a medal in economics!!! Thank you for everything. Continue the good work!!!
Some notes if anyone needs em!
-Barter system is the alternative to money, but is highly inefficient
-Money serves as a medium to exchange, store of value, and a unit of account
-In the past we had the gold standard which connected each dollar to a value of gold
-Stock market is part of the Financial system which is composed of Lenders (corporations and households) and borrowers (households, businesses, governments)
-Financial system = a network of institutions, markets, and contracts that brings lenders and borrowers together
-3 ways this happens: banks, bonds, stock market
-Banks deal with debt, stocks deal with equity (the difference between the value of assets/ interests and the cost of the liabilities of something owned)
-Financial instrument = a tradeable asset of any kind
-Banks are Financial Institutions = an establishment that conducts financial transactions such as investments, loans, and deposits
When you say the word money, I don't know what the hell you're talkin about. Are talking about a worthless Federal Reserve Note or a silver certificate or are you talkin about a coin you guys are so stupid. You just throw the word money out there. You don't specify what you're talking about.
Why do people say gold and silver are money they're Barter First and are used as money but if you had any brains and you actually read the laws you don't understand what you were saying is incorrect you want to debate me bring it on
What law states would a dollar is please let me know here because I'm all ears I got all day long to to learn from you know it all person what law states what a dollar is in law please tell me
Debate me one point at a time I don't want to hear any garbage rambling on here you take me on one point at a time and show me that you're smarter than me and don't start crying cuz they called your name don't be a crybaby take it like a man you can call me whatever names you want I don't care I'm a man I'm not a crybaby or sissy come on bring it on let's debate here one point at a time
A M jeez. that’s harsh. i mean nobody even said anything to you?
Does Patreon accept Zucchinis as payment?
10 BITCOIN FOR A ZUCCHINI? That zucchini better be embedded with gold or something, damn.
+killerfrenchy would need to all gold under skin. or do my house cleaning and car servicing
+killerfrenchy depends on what a bit coin is worth as of this moment now doesn't it?
1 Bitcoin is currently worth 266.40 US dollars according to the Googles.
+roguedogx Yeah, it doesn't fluctuate THAT much...
+killerfrenchy Yea they seem to have the impression that Bitcoin = US$0.25 or something. Please check out my videos on economics and let me know what you think.
This is the best video in the series so far. Straightforward, easy to follow, and no political stalking horses.
OMG! Love this!
Thanks for actually speaking at a rate that I can follow. Other videos are edited and sliced together so tightly that it has NO pauses in between sentences for the information to sink in.
You guys are so awesome!! One of the most boring subjects has changed into one of the most interesting ones! Thank you!!
A minor correction, bitcoin is *not* anonymous; it is pseudonymous. All transactions that have ever occurred since Bitcoin's inception is permanently recorded on the public world-wide ledger. There're no names and identities associated with each transaction but it doesn't mean someone can't figure out who made those transactions with some research. In fact, there are already tools to help assist with this.
Given that fact, using bitcoins for illicit transactions is ill advised; fiat cash like dollars and euros is better suited for that purpose.
please make a course for accounting
I agree! These Crash Course videos are incredibly helpful and informative.
I recommend Farhat Lectures. Not as fun as CC, but it is accounting after all...
When this episode came out bitcoin was around $240. $2000 for a giant zuccini is outrangous
I mean, she should have expected the zucchini jokes...
I think they did that on purpose , to negate the sheer panic and revulsion this particular subjects , ie, finance creates in many ppl. They are hoping to ease them in with some normal jokes and stuff .
I bet she loved that Zucchini..
+Newton Lavoisier I was looking for this comment hahaha
I mean, someone had to say it. We were all thinking it.
+Ismail Bahhane me too
+Newton Lavoisier L = SH
think about it
+Newton Lavoisier ( ͡° ͜ʖ ͡°)
PS: that's actually a bad zucchini, when they get that big they are pig fodder
There are more than one way for a woman to use a zucchini you know ( ͡° ͜ʖ ͡°)
She wasn't interested in eating it
10 bit coins ($2,500) for zucchini? what is she smoking?
+Vaibhav Gupta my thougts exacley
It's just an example. Or it's the world's greatest zucchini.
0.02 bitcoins would probably be a fair deal... Maybe. Idk. Is a zucchini worth $5?
+4571police It´s not. That´s the point. She would make massive profit.
she doesn't really want to sell the zucchini, she has other plans for it... ^_^
Adriene's a natural behind the camera. Jacob's good, but Adriene makes it relatable and fun.
Crash Course= A + I wish my college Professors went to Crash Course College =)
Gold standard kept central banks and sovereign governments from unbridled spending. Debt skyrocketed as soon as the gold standard was ended in the 70’s. Currencies are now subject to inflation. This is why owning gold is so important, and it’s why central banks worldwide store thousands of tons of gold and even now are buying more gold for their reserves. As JP Morgan said, “gold is money, everything else is credit”.
Now I'm imagining somebody tryna steal 4 tons of limestone.
Let us note that a Barter Economy never existed. Barter happens, but it has never been the basis for any economy that we know of. It was assumed by 17th and 18th century economists that barter must have preceded monetary economies; but the evidence that we have is to the contrary. The most typical economy prior to money was (as far as we can tell) a Gift economy. Essentially if you need something that I have, I give it to you and you incur the social obligation to give me something that is of equal or greater value in the future. If you fail to do so, you lose status and people are less likely to give you stuff.
Paul Peterson essentially an IOU system right? My guess is that barter only arises when there is difficulty in buying something, like if the other person doesn't have money or you don't trust him or her. But they do know money exists. So i think barter happens after money. Economics always taught that the monetary system arose from barter but i don't think it did. I think we used barter when the monetary system broke down or if we don't trust the other party.
Damn that pizza looked good
Barter System , Unit of account , $ = Medium of exchange , Lenders , Borrowers , Capital , Financial System brings it all together , Equity ,
That AC/DC belt though
2:09 there is a bag of ruffles hidden in the photo
wait why?
I have been trying to understand a chapter on money and banking for almost 2 days and i couldnt get anywhere. Thank you crasg course for finally making me get a hold in this
I especially love this video, Crash Course has broadened my horizon about the stock market and the financial system. Thank you!
1. With Fractional Reserve Banking, money is created out of thin air, then loaned out, not all of which gets paid back due to bad loans and bankruptcies. And the real money that is paid back, does it go back into thin air or into someone's pocket?
2. GDP is new stuff only. A total economy includes non-GDP stuff too. Where many economists make their errors. (Basically focusing only on GDP and not including non-GDP stuff). Be very careful of charts and data that base their findings upon GDP alone.
+Charles Brightman They don't focus on the "non-GDP stuff" (very technical language you're using there, by the way) because the value of said "stuff" is already contained in the GDP figure, which includes consumption of final goods and services, changes in inventory of unsold final AND intermediate goods, and investment in works in progress not accounted for elsewhere. There are a few areas where most nations don't count economic production, such as in gray or black markets such as prostitution and drugs, but it doesn't sound to me like that was your point.
+Charles Brightman because of the current definition of gdp a truly sustainable system would have a gdp of zero
+Charles Brightman once the dept that created the currency is paid, the money is destroy once the dept is paid but not the interest. but the fact still remains no dept= no money
+marlonyo The problem with the No Debt = No Money claim is that ignores the easily verifiable fact that many banks often hold reserves in excess of their reserve requirements (if not, explain the overnight reserve lending market that is priced by the Fed via the federal funds rate; also, especially since 2008 when the Fed started paying interest on reserve deposits). Otherwise, those banks holding said excess reserves wouldn't be able to lend in the first place. The fact that some conspiracy-laden animated RUclips video says to the contrary doesn't mean you should believe it.
+MrBipBipp I refuse to grant them the benefit of the doubt regarding their equivocation that you appear to generously bestow them. De gustibus...
I love this channel for giving so much information about something that I am interested in
One healthy thing in Asian economies is the use of bartering. Knowing about Bartering or the value of one thing against another might be beneficial. Knowing value or values of goods may be useful.
Thanks for this Wonderful Course Team!
Thank you guys!!! Economics is something i've never understood (especially the stock market) but this really helped
The problem of fiats or non-gold standards is representing scarce resources with a non-scare resource (Of course other scare resources such as petrol or electric energy can be used)
“Most people fail to realize that in life, it’s not how much money you make. It’s how much money you keep.” - Robert Kiyosaki
You have already won my heart. Thanks a million for sharing your knowledge. God bless you more.
Did anyone else notice the bag of chips in the black and white picture?
+Mickey Odunikan
No. You were the only one who spotted that.
2:06 yeah I did. I stopped to see if anyone else did and to post a timestamp :p
+Mickey Odunikan
illuminati
In a time where time traveling exists, man, goes back in time to where this photo was taken and accident leaves bags of Ruffles.
Thank you Crash Course. Love the way you people explain. ♥️
I appreciate the service you are performing for others with your videos. Thank you! Please keep it up.
And I agree the gold standard is unlikely to return, but the reason for that is self interest. Incentive, as you so rightly put it. Politicians and bankers don’t want to enact a gold standard because politicians and bankers don’t want restrictions on how much they can spend and how much money they can print without end. It is in their own self interest to keep the gold standard, which would enforce fiscal responsibility, extinct.
Competition in currencies is the way to go. I like gold and bitcoin.
The Gold Standard might have its weaknesses but as money is all about confidence in it, I trust a metal that pretty much always in history had a high value and a stable growth (of amount), it seems to me far more reliable than money that can just be created out of thin air arbitrarily.
off-topic: Is it just me or does Adriene's hair get brighter every episode?
There's an intersection between the bond market and the stock market in Australia. The Commonwealth Government sells some of its treasury bonds on the ASX. If you've got a few hundred dollars to spare, you can buy them in units of $100 face value, though the market price will almost certainly be higher. A couple of dozen companies also do likewise.
The government bonds have codes beginning with GSB (fixed-rate) or GSI (CPI-indexed) followed by a letter and two numbers (eg GSBC17, which matures in 2017). Corporate ones have codes that consist of the company's code followed by H and a letter to indicate sequence (eg. WBCHB being the second such bond issued by Westpac Banking Corporation).
The funniest and valuable crash course I have ever seen. Thanks!
0:48 The barter system is just an ideal and never existed as a large system. Instead people traded on credit. The idea of friend's, family, neighbor's IOU system. Money was invented NOT to represent the barter system but rather as an easy way to represent how much your friend's, family, or neighbor's owe you.
+Richard Fry, Do not believe me? That is OK, John Green himself pointed this out in the following video:
Money and Debt: Crash Course World History 202
At 3 minutes and 44 seconds into the video he touches on this topic of bartering specifically
+Richard Fry Came here for this comment!! I'm currently reading Debt: The First 5000 Years by David Graeber which John bases that video off. Extremely fascinating book and well worth reading if you're interested in the origins of money.
Economics now a days don't care about history. In ancient times, they never bartered, they used IOU's. You are right. They only bartered for international trade because it was hard to see the other party as genuine so they traded gold or something valuable, that is barter. But the domestic economy used IOU's, they rarely bartered.
Thanks for featuring the Ghana cedi guys. That’s awesome
did you buy bitcoin at that time?
Yaaay! Jacob slowed down in speaking! Much much more enjoyable now Jacob. Good work!
It'd be nice if they made a video about the factors of production. I'm still confused on the idea of entrepreneurship and all those business-related stuff.
From wat I remember from year 11 econ, the factors of production r:
-Land (i.e. the actual geographical area, natural resources, flora and fauna)
-Labour (people who work for salaries/wages)
Capital (refers to both machinery/tools/infrastructure needed to make consumer goods and services, like factories and tractors; AND financial funds)
-Entrepreneurship (Entrepreneurs and business people who basically run and start businesses).
The "factor payments" (returns) on each factor of production r:
-Rent for land
-Wages/ salaries for labour
-interest for capital
-Profit for entrepreneurs
P.S. Some econ textbooks/courses just lump entrepreneurs into the same category as labour, so don't b confused if they're not mentioned explicitly.
Amazing course!
Na, I'd rather loan money to my drug dealer neighbor next door; it the system, man. I don't need no banks!
I love how this series explains that "the system" and "the man" who're trying to keep us down are actually processes that run on an understandable logic, like an engine or a chemical reaction. People wouldn't be so paranoid if they took the time to understand the things they're afraid of
+Greg Moberg
_“The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown”_
~ H.P. Lovecraft, Supernatural Horror in Literature
I have a degree in Economics, and I understand our monetary system; trust me, you should be scared
NatralSelection
Well I'm not. I see no reason to fear it
+BlankPicketSign If not for the fact they debase the money constantly through inflation. You essentially have had the government rob more money from you than any mugging, or other combined theft you've ever had. And while that might not be enough, the currency today is very far detatched from it's actual value. In short they'll have to repeg the dollar soon.
You may remember Russia early 2015 had to repeg the ruble. Everything started costing twice as much (actually the ruble lost half it's value.)
The US will have to do the same thing, only it will be much more severe. (You'll be VERY lucky to get 1/3rd)
And sadly that's only the start of the bad ridiculously bad things our monetary system has going for it.
*****
Watching this series will show you that Inflation can be controlled, but how it can also help an economy.
America and Russia are very different, and while it is wise to try to understand how economies work, you can't just look at one county and then predict doom and gloom for another.
If you care about Monetary Policy, then use your right to vote, get people in office who you believe are responsible and have experience with managing economic systems.
And no... being "a business person" does not qualify someone to run a county or an economy.
Vote for people who actually Know how the system works
Did anyone see the Ruffles bag?
In prison ramen packets are also used as currency
Finally. Austrian Economics School with Milton Friedman comes in. About a time.
NONE OF THIS WAS TAUGHT IN MY FINANCE 101 CLASS. .... AHAHHHHHH PROFESDOR WHY WON'T YOU GIVE US A STUDY GUIDE FOR THE FINAL??? IM GOING TO DIE TOMORROW
Sierra Rissell So umm...did you pass?
Bendydik Cumandsnap 💀
Amazing course
I loves these videos.
'Banks keep some of the interest to cover their costs.' You missed out '...and to make massive profits'. They also charge fees to cover their costs and to add to the massive profits. And, when they make bad bets on lending, they look for government bail-outs.
3:56, sure i will buy a large zucchini for 2.07 million dollars. 10 bitcoin, lol!
Was just thinking this lmao
I use this to study and it helps me a lot
If I borrow from a bank it is not necessarily someone's money, or rather only a fraction will be. Banks can loan more than they actually have in deposits
when you borrow from a bank, they create it out of nowhere. They didn't use someone else's money. We do not have fractional reserve banking. We have a full credit system. Banks do not need deposits to be able to grant credit.
I like that you made this so easy to understand and process, thank you!
How is it better than Kickstarter? Here, you need to be really rich to be a lender and actually earn some money. And if you want money to start something, you have to be in a debt. There, people (don't have to be rich) that want the product give small donations which fund it. They get the thank you email, yes, but they get the product they want.
So basically, Kickstarter is giving the people a chance to invest into something they really want, not into something that rich people want and that is constrained by the financial system and the market. The Kickstarter concept is actually an indicator of what is wanted on the market, and what is not.
Even more, it's reversing the process. Instead of companies investing money in a product, and then investing into marketing for that product (which helps in selling shitty products that are basically everywhere now), you have companies offer to make something, and people 'vote' for that product by lending money.
So no, Kickstarter all the way. (Sorry, maybe it's not an important part of this lesson's topic, but I just couldn't let it pass :) )
"Here, you need to be really rich to be a lender and actually earn some money."
Not necessarily. As they mentioned at 6:26-6:44, when u deposit money in a bank account, the bank uses that money to invest and loan to others, earning interest. And if u deposit your money in a savings account, u get some of that interest. Every time u deposit money in a bank, u r actually indirectly lending 2 people (and earning interest if its a savings account).
Everything else u said tho is pretty much true.
Thank you million times ! How dare you, I want to transfer to study Econ because of you, and I used to hate it !
Mr Clifford!!! I love this guy!!!😍😍😍
Love this series!
In terms of money backed by gold. Currently (if I am not misinformed let me know) and the US government is working on bring the Treasury Reserve Notes with is money backed by gold?
"Many people still barter for stuff" kind of implies anyone ever actually tried to barter dentistry for a car, or zuchini for pizza. There's an interesting book called Debt: The First 5,000 Years which talks about, among other things, popular misconceptions re: the barter system - it actually tends to show up in the wake of a collapse in a money-using society, not in societies that haven't developed money yet. Those only use barter when dealing (rarely) with total strangers - if there's any level of mutual trust within a community, they just figure someone will get them back at some point.
Maybe this widespread barter idea is so believable because we do buy most things we buy off total strangers, but we live in a pretty unusual age in the grand scheme of things.
Measuring the value of everything in bananas sounds like a lot of fun. :)
I just noticed the bills are marked with the episode number-- nice!
This is what I been waiting for to thanks !
Great list of crash courses
This video just summarized the first term material we teach in secondary schools in Hungary :'D
them: doing the intro
me: looking @ the pizza 👁👄👁
where did you get this african zucchini.?
Ah I see what u did there.
Also, taking ur comment literally then she probably imported it from the middle of the Congo rainforest. No wonder she's expecting 10 bitcoins for it.
Whatcha doin with that zucchini baby😏🤭
Loved this video
So cool to see them talk about bitcoin years later!...ha! Hopefully you guys bought in 2015! Thanks crash course for your awesome videos!
these series are amazing thank you !
6:38 "the bank takes part of the money to cover their costs and passes the rest to the depositer..." hahaha I wish the reality was like that but I think the right way to explain it is: "the bank takes a huge amount of the money to cover its costs and make massive profits and give the depositer a pathetic interest rate"
:D:D right when they said that I was like....hm.....I never received a penny from my deposited money ; the bank made 100 % profit on my money not me..
luv but in need of a physics crash course
I want to know what makes the value of money change?, I mean what makes the dollar goes up and down?, also what causes the difference between currencies? I hope you answer me or even make theme into a future episodes
Thank you for making this video so easy to follow through
Some of this is straight outta David Graeber's book "Debt: The First 5000 Years" as mentioned in Crash Course: World History II. Glad to see it had some staying power!
Please create an accounting playlist. Thank youuu
This is so helpful! Thank you so so much!!!
That pizza slice is massive!
She was giving it that look 0:22
Oh, continue.
The barter system has never been employed as the main way of making transactions. Debt and IOU 's are said to be the way people handled transactions in the past.
Debt = trust. The interest rate at which you loan to a bank or a bank loans to you is a measure of that trust. If everyone trusted everyone completely, there would be no need nor "interest" in interest.
+Zach Gaskins Unless there is inflation. If you lend someone a dollar, and the value of the dollar decreases over the course of that loan, then they owe you more than a dollar to cover for that.
+Zach Gaskins In the word of Dwight Shrute: "False." Even in a zero inflation economy where every lender fully trusts every borrower, latent risk will not be fully eliminated (i.e., just because you aren't a credit risk isn't sufficient reason for rational lenders to assume you are also somehow immune to accidents caused by others, or caused by no one at all). Thus, there is always some risk, which will be reflected in the interest rate accordingly.
And even if you somehow eliminated all risk whatsoever, people still have time preference; i.e., they want to spend their own money now unless you promise them an interest rate sufficient to overcome their preference to consume goods today instead of deferring that consumption to some future time.
the guy: we dont need these green sheets of paper
Also him: you can support us with your green sheets of paper
we dont need them but they do coincidence i think not.
The next episode sounds really interesting
this is awesome !! waiting for the next episode :)
I like that giant limestone money idea.. :D
I am clapping because of you 👏🏻
The barter system has never been employed as the main way of making transactions. It was only ever a ceremonial activity. Debt and IOU 's are said to be the way people handled transactions in the past.
Crash course on Financial Ratio Analysis please!
This Crash Course series is so great!!!! :)
Anyone noticed how nicely the colors of the preview-pics in the playlist are choosen to resemble a rainbow?
well, somehow the rainbow contains the main colors you always see everywhere
There is no "Nobel prize of economics" but a private prize organized by a swedish bank in memory of Nobel which is not related to the Nobel Peace prize, for instance. It's odd to find this common mistake in such a quality channel
Yes! Great job.
you want 10 bitcoins for that? (= 2200 euro)
+samramdebest I'll give her 0.01 bitcoins for that but even that is a bit much...
+samramdebest The point is that she will be making a huge profit...
+samramdebest 10 Bitcoins now $4,400.00 USD.
+Alex S. Gabor 10 Bitcoins now $9,000.00 lol
Anyone want put options on that Bitcoin?