Why You Should Be Very Afraid Of A K-shaped Recovery
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- Опубликовано: 24 май 2024
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The economic impacts of 2020 have been felt far and wide and we have covered these problems in-depth in a handful of videos on this channel. But the logical question that most people are asking is what comes next?
Disasters happen and they are never pleasant but part of being a nation, a business, or even an individual is being able to deal with adversity and come out the other side.
Because of this people are expecting a recovery of sorts, and it seems like the only point of contention will be what letter of the alphabet this recovery will represent.
Other speculations include a W-shaped recovery where we will see 1 recovery then another decline as the effects of government stimulus and relief packages wear off only to be followed by another genuine recovery later on.
But amongst all of this, there is one type of recovery that we should all be very afraid of, one that is not getting nearly as much airtime and one that is actually being hurt by a lot of current policies and that is a K shaped recovery.
#EconomicRecovery #Recession #WealthInequality
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they mentioned this on the US debate. Biden said that we will have a K
You do good work 👍
Seriously? I guess two plugs in the video wasn't enough...
What is the music in the background
Hey man, like your videos but the site you’re advertising is copied from the only economical magazine of Belgium, which was found in the 70’, same name & same logo. Have they addressed this copyright issue to you before?
Countries: Economy can we have a V shaped recovery
Economy: K
V for Vengeance
@@MrMediator24 V for Vendetta I think you mean
@Shah!d Khan it was a great movie
People: Can I have an increasing standard of living?
Economists: You made the wrong choices. So no.
@yeah I'm John Assal I think you mean:
Economists: There was never any hope in picking right so no.
For most of the working class, it's not 'living beyond your means'. It's 'being payed below your needs'.
For spelling like that, I suppose hard work paye more than smart work huh
@@LaserPiratePewPew You find trivial spelling error in year old post. You smart person. You have good opinion. You tell Grog how think, now. Tell Grog how think. What Grog idea loggee?
@@BardedWyrm good one
Not true. I don’t know why these are quoted, but in any case, living beyond your means is relative not to those means (as you suggest), but to your needs. And I’m sorry, but if your expense are too high or your pay is too low, that is saying nothing except that you are unhappy the number is relative to both things your means and your pay. That pay is determined by a million factors that no one controls. You insist people don’t get paid enough, but yet means and pay are different and imply differ things; one is a adjective for compensation received the other is the method by which that compensation is received. living beyond your implies that you think yourself to be something other than what you are and therefore use what wealth you have to uphold that image. You hold a repressed sense of guilt or regret which forces you to defend yourself and say that you aren’t being paid fairly, but you do it subtly. And so, instead of facing this fact and doing something about it such as move jobs, seek better certification and education, work hard towards no end, etc you spin in circles because you won’t face this. People get paid what they are willing to accept. It’s up to them to decide whether or not their time is worth the money or benefits. Even still, if you have obligations, those obligations belong to no one but you. How is living beyond your capacity to earn compensation not the problem and instead be that you aren’t being paid enough to retain your standard of living. You’re security is threatened, you defend yourself, you get angry, you blame someone else. You then get resentful about working and it makes the issue 100x times worse, or in other words, you feel as if you’re working harder with the same pay. If you would just do what you were told or wanted to do ( if you’re the boss and actually purchased the asset to produce value) you would never have the issue of feeling you aren’t being paid enough. Go somewhere else. Do something else. This is your own problems being make a social problem, which in any case never solves a thing, it only makes you feel less alone in the struggle and so you enjoy nagging because it makes you feel in control. Take responsibility for your own actions and face the problems that arise from them as you would anything else. Don’t think you’re valuable just because you know something. Knowledge is absolutely useless without action. If you say you are worth more, then prove it. This isn’t a free ride. It’s a game that you can neither win or lose.
@@maxwellhayden5261 You're so naive. This is just what your wealthy overlords tell you to keep you working while your pay goes down year by year even while your hours go up. That it's your fault that the world has been designed only for the benefit of the rich. That you exist only to try and be a bigger cogwheel in their machine.
Grow up and realize people aren't defined by the value on their paychecks, and stop writing stupid comments like this.
"O" shaped economy: we keep making the same mistakes again and again and again
laying 8 ;), new generations do not learn from their elders
If that’s the case we’ve been practicing an O shaped economy for like 200 years
There's a quote by Karl Marx:
"History repeats itself, first time as tragedy, second time as farse"
The Fed would like to know your location
Argentina: O
One part you seemed to miss is the lowest wage workers aren't living beyond their means, they have so little means they have no ability to take personal responsibility and save because their wages have always been stagnant. Also in a K shaped recovery the lowest wage earners never get a chance to recover before the next crisis hits.
L shape, V Shape, E shape, K shape, are all wrong
The recovery will be shaped Brrrrrrrrrrrrrrrrrrrrrrrr
@33 SixtyNine That escalated quickly.
K shape is actually Brrrrr, and Aaaaaahhhhh, but combined
@33 SixtyNine Success shape is (Y)
Esketiiiiiiiit
when the printer goes brrrrrrrrrrrr gold silver and bitcoin will account for all the nee units of fiat in circulation
Something that’s extremely scary is that in America about 70% of people are living paycheck to paycheck, which leaves them very little to no room to invest in themselves or take advantage of the coming crisis. If inflation sets in from all the QE down the road, there will be a drastic decrease in standards of living at best.
ALL HAIL KEK!
LONG LIVE KEKISTAN!
*Shadilay stars playing*
@@Nothing-1w3 you okay? Need a time machine back to 2016?
@@Speederzzz to be honest don't we all want to? You know what, let's tune the dial to 2010 for good measure
But they have the latest iPhone :)
No. Assets inflation but the regular day to day goods will not. It's a fact since 2008
*"O" shaped :* Cycles of collapse into Primitivism.
*"F" shaped :* The Singularity and Immortality creates two high tiers - the Have-Somes and Have-Everythings.
*"S" shaped :* Time travel is invented, and colonists return to the past with superior tech, causing an immediate boost, followed by stagnation in decadence once the endlessness of the universe sets-in.
*"P" shaped :* Time travel is invented, causing an immediate boost as the past is pillaged for high-end collectibles, until the future-future arrives to raid this one of its own collectibles.
*"X" shaped :* An alien civilization collapses, and refugees crash on Earth, causing a flowering of knowledge, here.
*"I" shaped :* Time is an illusion. So is desire. All is One. Be here now.
Q: economies cycles endlessly while a small woke segment splits off each cycle and self destruction
Y: thanos snap, half of economy is destroyed while remaining half flourishes
J: Corona virus is just a short struggle before everything works out beautifully and life is easy
L: Nuclear war
E shaped: Markiplier is made head of the economy. No-one knows who put him in this position but we all just kinda accept it.
< shaped: Like a V shaped recovery except the laws of physics change to make everything rotated 90 degrees clockwise.
π shaped: We constantly go around in a circle and never get anywhere
D shaped: We all get boned by the economy.
Really like the P one
""P" shaped : Time travel is invented, causing an immediate boost as the past is pillaged for high-end collectibles, until the future-future arrives to raid this one of its own collectibles.
"
That's actually TENET-shaped.
I is true.
I believe in “live within your means and keep and emergency fund”, but you don’t touch at all on something you actually mention in this episode: wages are STAGNANT. I live in a city with very expensive housing but my job is also here. The suburbs are also very expensive. It is very easy to spend more than 30% of your income on shelter alone. It is not just the individual that needs to change. How did we get to a point where there needs to be two incomes just to keep paying rent on a small apartment? There is something terribly wrong with our system as it is currently set up.
It's to keep people pumping out babies
I live in Germany. It‘s generally considered a wealthy west european country. But we are a densely populated country. Property prices especially are rising since the last financial crisis in 2009. If there are building projects for real estate like houses or apartments they are almost all equipped with luxury furnishing and equipment. Like floor heating, security cameras, expensive bathroom furniture and so on. 30 % of your income for housing is considered cheap here . Especially if you are moving and getting new leases you have to pay like 40% of your income. Which is clearly too much, mainly for young families. Houses in the citites or the suburbs are generally considered to be reserved for the upper middle class and above.
It's really not the same. You can go to a trade school in America and make a decent income.need I point to the PBS video from 6 days ago saying we've needed skilled workers for awhile.
I mostly say this because moving is an option in America. You can get a 3 bedroom 2 bath house for 600 a month here in Youngstown Ohio.i just moved here at the beginning of the year. In Tennessee the houses still weren't crazy high.
And don't tell me you can't move. jobs are plenty, just pack a suitcase. Travel. Obtain new work and residence. It's that simple. It's never to late to start over.
People are buying housing in the wrong places and buying it too early. More people should live with their parents until they are able to afford someplace to live outright, and more people should consider living in cheaper, more rural areas and building cheaper housing on them, especially when Starlink makes it more viable to work from home very remotely.
My mom just got of debt from 2008 at the beginning of the year. All the cars we have are from before 2005 and she is fervently against owning real estate. She’s lived frugally and had the luxury of keeping a decent paying job, but still has no money saved or assets. An aversion to spending is not what an economy is supposed to create, especially those in the ‘middle class’.
Blame the Federal Reserve for keeping rates too low and the US government for not balancing the budget/cutting its scale down.
This
It's not an individual issue
Even if you make 200k, you should have an aversion to spending, if you buy a car over 20k, or shop outside of goodwill you will fall behind
"An aversion to spending is not what an economy is supposed to create" - indeed, this is what fears of overconsumption and materialism should create
@@bhe8336 low interest rates were the only thing keeping the economy going for much of 2019. The economy was slowing down dramatically but no one really noticed. The economy would've withered away by the election even without the pandemic
EE starts economy channel in 2019
*stonks*
Stonks indeed
@@EconomicsExplained I want a C-shaped economic recovery damnit.
@@fjusposting2103 how about an O shaped "recovery"?
How about a Z shaped recovery
Shoot for X
Having grown up in a multigenerational household, it was an interesting experience. There were very few times where I had to have external childcare, and “external” usually just meant the neighbor watching me.
It truly does carry a stigma though. The street was almost all older people, who while they would never say it verbally, definitely held that judgement silently.
It did also help that my grandparents both had very good retirement plans and good insurance, so it was almost like having 3 above average incomes all of the time. Obviously that wouldn’t always happen for everyone, but even if one of my grandparents didn’t have that strong income, it still would’ve been manageable with the costs saved on childcare, and other monthly expenses.
Obviously it doesn’t work for every family, but if at all possible I highly recommend planning or attempting a multigenerational household. It helps remove the stigma and your family financially benefits from it.
Yeah, my mom is from Central America, and we had our grandma live with us and watch over us. It's nice if everyone can afford their own place, but if not, there should be no stigma of living with family. When times are good, it could be seen as failure to launch, or laziness, but right now, it seems smart.
Plus, I feel like my family are the only ones who I can really count on. Even though we have our troubles. I know not everyone feels that way, and I consider that a bigger part of the problem.
16:20
Willing or able? Two very different things. I don't think the problem is that too many Americans are living above their means in the "good times" due to some white picket fence ideal of American life. Most working class families left hope of that kind of life a long time ago. The problem is that most people can't even afford a $400 medical emergency much less save for a rainy day.
Most American families aren't working class. Most American families are middle class and at the median earning rate well above what is required to live a very comfortable life so long as one keeps within one's means. Most working class families are Whites in marginal states and migrants. In both cases one of the most severe hampers on their prosperity is the exportation of the majority of industrial jobs and the centralization of the majority of other jobs in metropolitan cities - which then explode the price of housing and services due to incredibly high demand, combined with the recent consolidations on the real-estate market after 2008 and by Chinese property traders(e.g.:a huge chunk of the price of housing in Canada is due to the fact that Chinese real-estate firms own a ridiculous amount of the property there).
This has largely been the result of government policies being either completely insufficient - or more often actively detrimental to the economic wellbeing of the average and working class American and Canadian citizen. Furthermore, the lowering of the labor standard by illegal laborers in the US has undercut a huge section of the youths' ability to establish an economic base for themselves.
The continuously rising price of healthcare and higher education(both the results of government policy, in both cases trying to "make it more affordable") has placed tremendous economic pressures on upcoming Americans, the effective mandate of a university degree of some kind - no matter how useless - pushing people into colleges to acquire debt. Debt which then forces the same people into the labor pool at the lowest affordable wages - with many having pursued throwaway degrees pushed into minimum-wage and minimum-wage adjacent jobs further robbing younger people of the ability to establish their own base.
However, on reflection, the government policies that have raised the price of healthcare and education were popular - people _asked_ for them. Unsustainable spending practices, the insistance to cram into major urban centers and the default toward getting a degree to work a "cushy" dead end job are all things the people have _inflicted upon themselves_ . Their refusal to vote for politicians who will reverse these policies and spending practices is, once again, their own fault. The constant drive to consume, and consume and consume without end is, once again, their own fault.
I've done cost analysis for several states, and it is _well_ within the ability of two working people living on *minimum wage* to lead reasonably comfortable lives(this was pre Covid, though). A household totaling 70k a year(the median household income) should be able to reach a standard of luxury - which they do, usually wasted.
So the actual question is, if you're making *70,000 DOLLARS* a year, why can't you afford a $400 dollar medical emergency? What have _you_ done to bring this about and what can _you_ change?
K.
K.
K.
K.
K.
K.
Sucks when living beyond your means means paying rent for the one tiny apartment you found within an hour of your job
Thiiis. This video is so out of touch.
Agreed with you both and I genuinely like this channel but that was a sloppy not well thought out take
Because of Asians he praised buying up apartments, driving up the prices (ahem London)
I think something a lot of people aren't prepared to do is realize that living in California and New York might be living beyond your means. I am living in the Midwest, paying $1000/mo for a one bedroom that is 15 minutes from work and 25 minutes from downtown. To sustain my lifestyle in LA would probably double or triple my living expenses. Maybe one day I'll get a job offer from a NY or CA based company (not that I'm getting unsolicited job offers today) that would allow me to live the way I want to in those states, but until then I'm sticking with Midwestern urban areas.
@@DSQueenie how is it out of touch, 15:20 says exactly that >_>
A K shaped recovery means we have socialism for the rich and cutthroat capitalism for the rest of us
Yeah, socialism for the haves.
they'll spend money for more wars but wont feed the poor my friend
@Kijestic Productions idk.
@Kijestic Productions K.
I meant, Potassium.
And welfare for who?
Man, that whole "People are living beyond their means" comment hurt.
Cause it does feel genuinely disconnected when the system is set up so that "Beyond your means" is a small apartment and food security for so many people. We need to move to actually help people now, or people are going to be pushed to breaking point and we've seen where that leads.
Communist detected on American soil; Lethal force engaged.
It do be like that sometimes, though I question the use of nuclear armaments in this instance
The problem is the work people are doing and the amount of product they're producing is more than enough to pay for 'the average lifestyle' with enough leftover for CEO's to still be very wealthy. Unrestrained greed is keeping this from being the reality as companies refuse to pay a wage commensurate with the work being done. The people are getting restless and if things don't change they'll change the entire system. It's like that picture of the snake eating it's own tail.....capitalism will be it's own downfall as they do everything they can to keep from being regulated.
@@jeffcroft2169 In Mexico the wages are low enough to make CEOs rich but high enough to make beer and alcohol companies CEOs also rich.
No need for communism. Just move out of the city and grow your own potatoes. Its not just a problem of economy, its a problem of social anthropology. Everyone is a part of the problem as long as they partace in the game of social ladder
70% Americans have less than 1000 USD saved? Have you missed a ‘0’? That is terrifying, if true.
It's true. It's terrifying too.
that doesn't seem realistic, cuz most would probably still own some assets.
@@livethefuture2492 Yea but if you have an emergency you don't always have time to just sell your house or your car or belongings. Also depending on how the market is doing you could be forced to sell stuff at a much lower price just because of a temporary downturn.
IKR, I don't even understand how that's possible unless you literally just try to spend everything...
As with any stats the truth is way more complicated and not entirely evident. For instance "Americans" is ambiguous. Does that mean US citizens of working age? Including children, disabled, incarcerated or even students? Does that include any assets/equity? Only money in a numbered account? Cash in a shoebox? Is social security considered savings in this case?
"Living beyond your means has become increasingly easy to do" should be corrected to "Living beyond your means has become increasingly hard to avoid due to stagnating wages and inflation". -_-
this comment deserves more attention
@Juan Pablo Grajales Canseco- That my friend is the problem with the study of economics! They teach each other that it's a god written law that $billionaires should be able to make $millions by shuffling money from A to B, as if it's a normal fact of life! They never look at the logical endpoint of this foolishness, when the billionaires become trillionaires then what becomes of the general population & western society?
@Juan Pablo Grajales Canseco and the comments section would really become a mess screaming about politics of they didn't, it's a shame
@Juan Pablo Grajales Canseco I don't think hes really trying to sugar coat it. He even flat tells you the people who can will take advantage of crisis.
@Juan Pablo Grajales Canseco I see this channel as akin to a modern clinician sharing professional opinions on issues within their area of expertise. There are clinical ways of describing the physical trauma after an assault that purposely avoid the emotion of the event or the psychological problems that might arise. Just trying to focus on the medical injury and it's proper diagnosis, treatment, and recovery is already a lot before getting into case-by-case uniqueness of individuals. It's like how western 21st century medicine is about decision trees and buckets and statistics, all dehumanizing things but all helpful to see patterns and larger trends that improve outcomes over time.
L-shaped recovery: we don't recover. Everything just drops off a cliff and doesn't rise again
no drop in L once dropped. did you mean I ?
I'm looking for an X shaped recovery. I rise, and all my enemies go down. But I think that whatever recovery we get is going to be pear shaped.
Also known as the Japan Economy.
I shaped recovery, all stocks are canceled and we gi back to hunting and gathering
@@thecalzone9651 reject modernity; embrace tradition
Hey fun fact: The wealth inequality in the USA is now higher than the wealth inequality in France before the revolution.
Do with this info as you will
Lewis Massie Fun prediction: the number of murders in the USA after the elections will be higher than in France during the revolution. That doesn’t even depend on the winning candidate
ah well, let them eat cake!
That may be true, but the poorest 50% of Americans are much better off than the French peasants and the French didn't have government welfare and had a lot of food insecurity so I wouldn't hold my breath waiting for the guillotines to come out. Advancing technology has made the rich significantly wealthier, but it has helped everyone else out as well.
revolution, yeah
Carl Sagan's last interview - 1996
27 May 1996, interview with Charlie Rose, USA
SAGAN: My feeling, Charlie, is that it's not that pseudoscience and superstition and New Age so-called "beliefs" and fundamentalist zealotry are something new. They've been with us for as long as we've been human. But we live in an age based on science and technology, with formidable technological powers.
ROSE: Science and technology are propelling us forward at accelerating rates.
SAGAN: That's right. And if we don't understand it, and by "we" I mean "the general public," if it's something that, "Oh, I'm not good at that, I don't know anything about it," then who is making all the decisions about science and technology that are going to determine what kind of future our children live in? Just some members of Congress? But there's no more than a handful of members of Congress with any background in science at all. And the Republican Congress has just abolished its own Office of Technology Assessment-the organization that gave them bipartisan, competent advice on science and technology. They say, "We don't want to know. Don't tell us about science and technology."
ROSE: Surprising. What's the danger of all this? I mean, this is not the thing that...
SAGAN: There's two kinds of dangers. One is what I just talked about. That we've arranged a society based on science and technology in which nobody understands anything about science and technology, and this combustible mixture of ignorance and power, sooner or later, is going to blow up in our faces. I mean, who is running the science and technology in a democracy if the people don't know anything about it? And the second reason that I'm worried about this is that science is more than a body of knowledge. It's a way of thinking. A way of skeptically interrogating the universe with a fine understanding of human fallibility. If we are not able to ask skeptical questions, to interrogate those who tell us that something is true, to be skeptical of those in authority, then we're up for grabs for the next charlatan political or religious who comes ambling along. It's a thing that Jefferson laid great stress on. It wasn't enough, he said, to enshrine some rights in a Constitution or a Bill of Rights. The people had to be educated, and they had to practice their skepticism and their education. Oherwise we don't run the government-the government runs us.
Ooooo so excited to give my Guillotine a whirl!!!
The last time I was so early India was supposed to be an economic superpower by 2020 but we are down by 23.6%
Womp Womp
@@lebowski7854 they will once they are personally affected
@@straw_hat1579 Economy and job market in India started crashes since 2016. We didn't care, what's special now?
@@joputhiyaparambil07 middle class hasn't been affected its the lower class and its showing in votes bjps votes in states is reducing
Do not worry have bhakti like all those "news" anchors like Arnab, Sudhir, Rahul, Navika, etc, hang a portrait of Modi in your house, worship and do a pooja for it everyday, wait for the IT cell to contact you, you will have stable employment for the next 4 years or so.
I solemnly predict that we will have a Æ shaped recovery.
Ash?
Goes up a bit, splits into two, then these two split into three
An Æ equilibrium is when both prisoners confess. When the economy is going well, economics reads like physics; when it's bad, economics reads like poetry. Or is it the other way around?
best one
We're already having an Æ shaped recovery. I mean there's tons of ash on the west coast
Living beyond your means is tragic when it means simply a roof over your head.
Or it might simply mean you live in a locale that is beyond your means and you need to capitalize on selling that plot before you lose it, then use the funds to buy a new, cheaper place and hopefully have a bit left over.
@@Megalomaniakaal what if you are already in the cheapest location and are basically living in a feudal community as a starving peasant?
Could live as a without a roof, I guess? Would be the cheapest, because you aren't paying anyone... Unless it is some kind of ranch where you sell your labor for staying on a piece of land with little to no accomodations and you have to rely on a witch doctor to have a idea to live. Might have to resort to cannibalizing said witch doctor to survive....
@@grasshopper8901 Might be time to vote with your feet and move. Elsewhere.
@@Megalomaniakaal unless you are in such a scenario where you couldn't as illustrated above?
I'm already contemplating moving into my car for a couple of months. Wouldn't be the most comfortable, but would be able to save funds to do as you suggest. I was giving hypotheticals to give a interesting level of discourse that isn't usually offered in a serious debacle.
@@grasshopper8901Well, there's plenty of north Koreans escaping, and even more at least trying. Ultimately ain't nothing stopping you but _you._
At 10:27 n the video, you state: "Capitalizing on economic misfortune feels bad, but realistically, businesses do this all the time. They are entities designed to run an efficient market. If they see an asset priced below value, they buy it. If they see an asset priced above value, they sell it." This is all true, and I have no argument with this. The problem that arises, is the wholesale manipulation of markets and economies to the point where they are absolutely predatory with no consideration whatsoever for lives destroyed for profit. The markets are not free to function. They are manipulated, and this manipulation is destroying the world. To make money off misfortune is one thing. To actively create misfortune in order to profit is quite another.
May be true but in this case it has nothing to do with creating misfortune. As far we know, nobody created the virus on purpose. And of course there are various examples of unintentional misfortunes that people take advantage of.
@@giatu1 We can't manipulate a disaster, but we can manipulate how we handle it. We can see how each country has varying degrees of success in regards to it, maybe it's geography, maybe it's luck. But one thing each country has in common is a government response.
@Iqbal Indaryono **one thing each country has in common is a government response** That's because everything that's called a country has a government lol
Of course there will be a response and even the response could be doing actually nothing.
I don't know what are you trying to say but your comment makes no sense.
@@giatu1 governments doesn't need to make a crisis to manipulate a situation. They can either spend their funds bailing out big businesses (The US probably) or make sure the pandemic is controlled (South Korea). By doing either, the government indirectly manipulate how the pandemic, or anything really, affects the people. You can even see how they use this crisis to limit the people's economic freedom. Was the lives saved from the pandemic comparable to the lives ruined by it? How many businesses and livelihoods got destroyed? Why didn't the government focus on protecting the most vulnerable? The elderly and the young? It's sad that people died, but look at how the economy is doing. It has caused a ripple effect on everyones lives for the worse.
Though I thought my point was pretty obvious. Was I not clear enough?
@@iqbalindaryono8984 I thought you were talking about business men, that's why I did not understood.
Blue Collar Citizens: What are they doing over there?
White Collar Schmucks at the Stock Exchange: We're discussing business ethics!
Blue Collar Citizens: No wonder it's so quiet over there...
What is this buissines Ethics you are talking about? I dunno man, sounds kinda marxist to me.
@@pivocoolman2340 I mean, yeah. That's the joke. "Business ethics" is about as oxymoronic as "military intelligence" after all...
Geez you guys are both so cool and smart, I hope I'm half as witty one day! I'm not a girl, but you can date my sisters!
@@lukative9148 No u
@@lukative9148 Says the non witty person.
i lived below my means all my life. And while the first 18 years were not in my control it would be considered 'poor'. After that i moved out to study etc etc. Continued the same lifestyle as a student, it was 'meh'. Now I'm a fully grown adult and an 'average' job, living below my means because that's how I'm used to. It got me some good savings, but man is this making me miserable. But i can't live any fancier because my job won't let me.
If I live what the 'average (non american) household' is supposed to be, I'd either make no savings or could not afford a car or holiday or never move out of my shoebox of an appartment.
Why is it making you miserable?
Get a job you lazy commie.
@@mr.knowitall5019 im pretty sure he does have a job. Seriously, why do people assume the Communists are everywhere?
Start a side hustle and focus your free time on that.
What is “the average (non American) household” supposed to look like?
To be completely honest, it's times like this that I am actually grateful for growing up poor. Add to that, the stories I learned from, especially from my Grandmother, who was adopted by a couple with several biological children. She was always last to recieve anything, even dinner, and she was expected to wait on the family. She was more like a nanny and maid than a child. There are so many other stories, but I can say this. I've lived in a mobile home with my grandparents and my mom, my mom and I lived in a 30 ft camper for a while, so on and so forth. Because of this, I know how to make my money stretch. At the same time, I wish I could bail out all of my friends and family that are sunk now. We were all doing pretty good through this, but now devastation has struck as my cousin and her family lost their home in the fires in California. Even so, I'm worried about our future. It's been a difficult 4 years for the USA, especially 2020. We're about to hit 200K deaths and there's no end in sight. I've already had COVID-19 and let me tell you what, that was the sickest I have ever been in my adult life. Every inhale felt like there was glass in my lungs. I caught it early in March, and even now I can't breathe the same way I used to. I fear that nothing will ever return to the normal we knew before COVID-19.
The fact that I know nothing about economics and knew that this was what a k shaped recovery was going to be is upsetting to me :(
The L-shape non-recovery.
A-shaped and M-shape can be worse.
I want an X shaped recovery the rich all die off in misery while everyone else's lives improve:)
Yep, thats the story of Turkey
Well we already got the middil upside down v in a w recovery so I don’t understand unless you mean Kampala Harris gets elected & we get a lesbian economy
@SkyTech RTS
Every important political candidate and office member: *guess I’ll die*
"Live below your means and have an emergency fund"
*cries in zoomer*
What do you do when your means don't cover the basic requirements of living, like food and housing?
Ah well. Too bad.
@@KuraIthys "Just be homeless and save money. ez."
-Economics Explained
@@KuraIthys That is the result of a whole generation living above their means on credit. And the only medicine to that is to have an economic disaster happen and for things to be normalized.
Cries in disenfranchised black person
Sucks we have actual science about this cruelty and people applaud the ruthless nature of this system proven immoral.
@@iwiffitthitotonacc4673 unironically a solution some zoomers opt for, see vanlife.
Thank you for the viewership boost, Joe!
First thing I thought of when he mentioned it, had to come back and get a refresher
"so in conclusion, you need to spend less money and live within your means. Oh hey, spend your money on our sponsor"
If you can do it and stay within your means, I don't see why not!
Not a lot of people are going to do save in large part because the wealth and opulence of the super rich is constantly on full display. It’s really hard as social creatures to not be manipulated by the desire to have status...
Keeping up with the Jones’s has turned into keeping up with the kardashians
Maybe that might explain the prudentness of some European nations like Sweden and Finland. Culturally it's considered rude to flash the cash, so even rich people will not show off their lifestyle, they might have a nicer car and a bigger summer cabin but they aren't so in your face about their wealth. Inequality in these countries is lower than in the US, but there's still a sizeable gap between the rich and poor yet we don't see so much financial strife caused by aspiration.
Also wages havent kept up w the economy. These days its pretty common for people to work two jobs and still struggle to keep above the breadline. This idea of the feckless poor w no personal responsibility is a myth
Just shows how many people measure certain things in a purely relative sense.
How much of your lifestyle - the things you own, buy, eat, do, etc is because you genuinely want and enjoy those things and how much of it is you doing things to either show off your status, or because you presume you're _supposed_ to do these things?
In a completely abstract sense, it would be hypothetically possible to let everyone have a massive luxury yacht.
But if your goal in having that yacht is 'look at me, I have so much more than everyone else!'
Then that can never be satisfied, because for that to work there have to be others around you that have less.
Do you want a 50 room mansion because you actually want it, or because of the implied social status?
The first can in theory be satisfied for everyone.
The second cannot no matter what we do, because your measurement of success is relative.
Any time something becomes a relative measure, you create a desire that can never be satisfied, while absolute measures, can at least be satisfied in principle.
Or to put it differently, a billion people all wanting massive mansions, private jets, fast cars and luxury yachts is something that might be possible to accomplish.
But a billion people who all want to be 'better' or 'richer' than the people around them? That's impossible.
This. Humans have social comparison buried deep beneath them.
"Live below your means"
Grad Students: Am i a joke to you?
It's easier in the end to work a hard manual labor job, save up a mountain of cash, and negotiate between several universities for a better deal. You'll be done and out in about 10 years and come out a much better person that is humble and understands the grunt in life. I'm going to do that with my kids. They won't be drowning in debt and struggling to find a job. If only they'd teach that in high school. We wouldn't have +90% of the societal problems that we have today.
@@markm0000 Bro no one wants to do manual labor. "I'm gonna do that with my kids" No, THEY are gonna do what they want to do
@@sentfromheaven00 Ok zoomer. I know what I'm talking about. You can make $150k working dangerous jobs that no-one else wants to do and save up enough money for a doctorate in a couple years. Then just coast off early investments and pay for the entire degree upfront. That's the right way to do it. No debt, no stress, and the benefit of early retirement.
if college is too expensive in the beginning, there are many other cheaper options like community college or trade schools that can help you start off.
and honestly, it's just about making the right ROI calculation. if you use your time in college wisely, get a degree in some high value STEM field, work on building up your resume with internships and projects, then you can come out the other end with a very high paying job.
it all depends on how you make the investment and how much you can get out of it.
So, suicide?
I’ve fallen into that living beyond my needs part, but it all started with a accident. You never know what can happen
The conclusion is a bit over-simplistic. It's easy to say "we should have multi-generational families" but we keep forgetting that the nature of modern economy forces a lot of people to relocate in big cities from rural towns. You cannot have a house and the kindergarten in the package, if the house of your parents is in the middle of nowhere and if they are hours distant from you. This is blaming the victims.
Now we have more remote work though, I wonder how this will affect that.
@@Maria-pr5hi it maybe very positive as people can move to areas that offer better quality of life per cost while keeping their job.
It would reduce the cost of living for both those who choose to leave and those who remain in high cost of living cities.
That said as pointed out in the video, it's not much extra work to have remote employees in developing countries as opposed to employing people in the same country.
I wonder when we will reach a point in the future where being able to afford food and housing is considered "living above your means"... oh wait... the current generation is already not capable of affording housing anyway without parental support ... So what's the next low is going to be?
If you are wondering what very low means is history has many great examples
@@visethreachsothy6952 ACCELERATIONISM. DESTROY EVERYTHING NOW.
Things will start to get better when all the older generation die off. Let's be honest a top heavy population pyramid with pension rights is a recipe for disaster.
Someone has to pay rents to the renters and taxes to the exchequer. Moreover, if you have nothing to lose you become extremely dangerous to the government. Multiply this by a couple of millions and you will see why Trumps of this world issue $1200 to people in the US. They want you have something to lose, no matter how little. They know that if they fail, their days will be numbered.
@@philiposborne982 , there are others in the queue who will replace them. Those who won't will be doing what old Japanese do. They shoplift to be sent to prison where there is a roof over the head and something to eat.
EE: ...so how do we avoid a K-shaped recovery?
EE: Ultimately, it will come down to governments [providing competent legislation]
Me in the US: Hahahaha 🤣 welp, we’re f**ked
indeed
To be fair, there are few governments anywhere in the world who will provide competent legislation for such a situation. Most fall into three categories:
1) Countries that take from the poor and give to the rich, and somehow convince the poor that their own wealth (or what used to be theirs) will get "trickled" back down on them. Eventually. Any day now. Reagan promised, after all! We all know who I'm talking about here, but there are countries other than the US that will try to do the same thing as well so it gets a category.
2) Countries that go the other way entirely and try to strong-arm some full blown communist ideals into the country. That rarely goes well and usually ends up being more about some dictator embezzling his country's wealth rather than any real push for social change.
3) Countries that try to balance economic progress with social progress and attempt to have the best of both worlds. Of course, most of the countries likely to take that path are countries that have already been on that path for decades (Nordic countries primarily. Maybe Canada and New Zealand. Possibly some of the Asian nations.) So while this category is the only one that would be likely to provide competent legislation, in most cases they won't need to (because it will already be there.)
@@altrag the nordic and asian countries have a surplus of wealth and/or are racially homologous (They would think less of immigrants/foreigners even if they spoke the same language. Tends to happen in more traditional countries.) That won't happen here with a media fanning racial tensions, endless groups of racial identitarians rising and falling, and the self centered status culture America has. If you want that kind of progress, we need to get manufacturing on the level that is of china to pay for it all and cause a cultural revolution to not get mad/react at racism (in turn causing an emotional response and giving the attenion seakers what they want) and in stead just think less of that person and move on.
@@altrag To be fair, trickle down economics is a straw man for Supply Side and "competent legislation" is an oxymoron.
@@lordjaraxxus5418 found the Nazi.
"...all office work can be done from home...all office work can be done from Manilla or Mumbai"
Exactly! I've been saying this for a bit now, I don't know why people are so excited about being able to work from home without being able to see the risk. All this working from home seems great, until you realize that it's basically showing how you can be outsourced!
I’m so glad I found this channel just last year, love having your insight into things. Especially now.
“In a country well governed, poverty is something to be ashamed of. In a country badly governed, wealth is something to be ashamed of.”
― Confucius
@Foobar 😂😂. “The supreme art of war is to subdue the enemy without fighting.”
― Sun Tzu, The Art of War
@@QuestionEverythingButWHY It's funny how China acts out that book. They released the outline of their plan for domination and have been doing what they outlined and nobody cares lol.
@@matth23e2 Yeah, they have a larger Navy than the US now. I was pretty sure we spent more on military than them
People shouldn't be embarrassed if they are in poverty, as 99% not their's fault
@@lorenzoeli2939 that what 99% of the people say and that why they are not the 1%. My family came to the US from China 30 years ago with a total of $160 to our name and didn't have any welfares US citizens enjoyed. But we studied, worked hard and saved/invested, basically exactly as what this video said to do. Now we just became qualified to be the so called 1%er. Just like earning PhD/MDs, the road to wealth is actually pretty straightforward, it's just such a harsh and long road that most people are unwilling to suffer though.
Finding out how other countries are helping their people makes me feel so hollow. Why is America this way?
Edit: one thing to keep in mind that in most places in America it is illegal to sleep in one's car/van, tiny homes are banned, and dense living outside of the coasts is looked down upon. So, how are we supposed to live beneath our means? Living in a vehicle with my kid was the only way I was able to pay off debt and save money.
Because the market knows it all, its invisible hand is the ultimate wisdom that must never be contradicted
Cuz line go up if you stomp on the peasants. It goes up even faster if you get other peasants to do the stomping for you,
I wouldn't say 'other' countries. really it's just wealthy European countries.
everyone else suffered the same, corrupt leaders and rich class exists everywhere and the same happened in most countries.
Sleeping in one's car/van and tiny homes are banned over there? That makes 0 sense
I'm pretty sure that only specific types of tiny homes are banned. But other than that, yeah, I agree.
When socialism failed in Czechoslovakia, politicians told the people that they will soon (in a few dozen years, or in a few generations) live like the people in the western states. What they forgot to tell us is that instead of us heading their way, they are heading our way xD
The failure of communism in east europe was the worst that could have happened to the western middle class. Now there is no alternative and the great plunder is in full effect.
Capitalism was great so long as it had to prove to the working class that it was better than socialism.
@@chazdomingo475 The rise of democratic socialism in the US is a sign that people are becoming less convinced.
@@chazdomingo475 Hmm, I was thinking about that before. The companies kept chill in the cold war to make capitalism seem better. I mean, why does it seem like every day capitalism gets worse?
My favourite recovery is the L shaped recovery. Or as we say in the industry: The economy taking a big L.
Also known as the Japan Economy.
Economists: "This is what the recovery will look like"
2020: "Recovery... we're just getting started"
I was in China last year, since the video metions this, and wages for a local english professor in (Inner Mongolia/Northern China) China for university are 10,000 rmb a year. Households in china live frugally, because of culture, but also because they have to for the wage to work ratio isn't great for just living on your own in China.
Dude truthfully im watching yor video because im going to have an exam on friday, apply for a job, and start a business next year.. im really happy you're making these videos, because my teachers can't teach to me these things
Great advice. My farming family instilled the idea that wealth is in owning land that produces income. Always pay off your home to reduce retirement expenses. A simple philosophy that allowed my mother to buy a plane when she turned 60.
"Family, friends and religion these are the three demons you have to slay to to do well in buisness"
-Mr. Burns
You do not slay them, they come together to become greed.
9:45 'dry powder' is an apt metaphor for pirates like Blackstone, waiting in the shadows for weaker prey to appear on the horizon.
Then they'll have you rent a retail space for $20,000 per month. They'll say "you're not paying for the space, you're paying for the location and foot traffic."
Then during a COVID lockdown they say, " no, you're paying $20,000 for the space. Foot traffic doesn't matter, now pay-up."
without blackstone, people needed to sell house in the time of trouble would have much much lower valuation. Business like them at least in this time of trouble actually helping the economy, the only problem is we don't have enough firms buying distressed properties in this kind of condition.
Enjoyed the video and thought it was some solid analysis. Just one thing I think you missed: not only is it very easy to 'not live within your means', but if you're not very well off your access to good investments (whether literal access or just decent investment knowledge) is limited. If your emergency fund is just in a typical savings account, you're earning something like 0.5% interest (at the moment, for example), whereas if you have the ability/knowledge to invest relatively sensibly in stocks (or other financial mechanisms) you can earn something closer to 8% annual return fairly easily (agian, for example at the moment, and with more risk, of course). The money you put aside for that rainy day is going to be worth proportionately less for an average person than a wealthy person.
And all that's assuming a level playing field, which the stock market certainly isn't. If you're a truly big player, you can play the market in ways (legally, questionably, or illegally) that are simply unavailable to regular people. Therefore even if you're sensible and follow your advice, your ability to prepare to whether economic turmoil is susbantially less than that of the wealthy.
Last time I was this early the housing in London was affordable
so like the 1500's?
@@EconomicsExplained 😂😂😂
Last time London was affordable was before it was even founded.
@@EconomicsExplained I guess it was the most affordable right after the Great Fire of 1666.
I think houses have never been affordable in London. Maybe they were in Londinium
Gotta love it when she just texts back “K”
I felt that
😂 you sir are a hero
That's what I usually say at every conversation.
:(
Me: How do you think the economy will respond to this crisis?
Her: K
I feel bad for those without supportive families. I lived with my parents for a couple of extra years with a budget of maybe $3k per year total (80% of it being car related) and that was enough to get me to a point where I could get a loan for an apartment. If i lived in one of the big cities it would have had to be around 8 years of saving before i even had a chance.
If you don't have those safety nets, you're about 10 years away of doing everything perfectly to get to where i managed to get to in 3 years.
I have a feeling that we are seeing why historically, that societies stratify.
J-shaped recovery: after the Lockdown, _we become gods_
We become cherubim. But we think we're gods. That's what inflation does to society.
yeah, gods shouldn't need police.. ok, i get it
@@comment6864 then I don't
4of92000 I am already a god, as in, my existence is the only one that matters to me in the whole universe, and the rest can die for all I care.
@@nihilism6226 username checks out
Join the Trends Community today. Get your first two weeks for just ONE dollar. Go to trends.co/ee to get started.
You left out the part about where the U.S. become a Latin American country, culturally and population wise. Just look at the birth rates of the various U.S. population groups. In the end, this could create a different definition of what The American Dream means. Perhaps expectations will be lowered for that.
@@peaceonearth8693 Ok racist
K shaped recovery is in my oppinion a zero sum game.
@@serbannicolau3489 isn't any closed system a zero sum game?
While you did touch on this in your video, I think you're under estimating how unreasonable it is to ask most Americans to live within their means. When more than half of Americans barely even make $30,000 a year, and the price of basic necessities climbs as quickly as it does every year , the kind of cuts to spending that Americans would need to make in order to live within their means would likely crippled the economy as a whole.
The economic contraction caused by an enormous number of Americans having to basically halt all of their spending on any non-essential goods or services would probably just make things worse for everybody, as less consumer spending means that unemployment will Skyrocket again and people's means will shrink drastically, repeating the entire cycle. The simple fact is that even if it costs us in the long term, this is a problem that cannot be solved by individual action, but instead can only be solved by a massive redistribution of wealth to the poorest people in the country. Anything less would either do nothing or make the problem worse.
This already happened in 2008. Half the country never recovered and then in 2016 many of them voted Trump. America is a two-class country at this point with the middle class split in two between those that caught the equities boom and those that depend on a weekly paycheck to stay afloat. The recovery in the 1980s is when this started, but it was NAFTA in 94 that eroded what was left of the traditional working class economy and set the stage for the "Target economy" of today. After 2008, suddenly it seemed that a permanent underclass of service workers had formed, unable to break into more stable and higher paying work. These are the same people that have been squeezed the hardest by the real estate boom and the subsequent rise in rents.
I don't think very many people in the bottom half of the economy are "living beyond their means". They just want what most would consider the basics. A decent sized home in a safe neighborhood, quality food, and a decent school system for their children. Problem is, it takes a significantly above average family salary to get these things that should be in reach for the average family.
I'm sorry, I'm from Singapore and we have stagnating wage here as well, the minimum wage is always taken when hiring now and always. It's just not talked about untill voting day.
Malaysian here, the wage have been stagnating since our independence :(
yea problem is global trade is going down a lot which is bad because of our reliance on trade, hopefully things get better before I have to get a job or else I might have to move out
It is a global problem I think global trade ruined local mixed economy ( stuff like regulation tax on rich) models ( that help the poor)and leave nothing but poverty
@@maxwelljarowey2612 yea but it's especially bad for Singapore because of it's reliance on trade
@@maxwelljarowey2612 we don't rly have the population to sustain ourselves like other countries do and we can't rly use oil to bail ourselves out like qatar or uae
Kind of ignore the wealth siphoning effect that having large corporations snapping up massive amounts of property in order to rent them later after people foreclose or are forced to sell to stay afloat. The constant increasing of rent seeking behaviors is one of the major drivers to prolonged growth in wealth inequality. Hard to drag yourself out of the working class with such a large portion of your country's economy built off the concept of leeching profits out of your need for shelter.
It is not only that, universities do the same while selling their courses. Governments charge you for issuing a document etc. . There is no compassion for other people today. Greed is making this planet worse than a jungle.
I'd agree except the major reason for high rent in most places is policies restricting the ability to build more housing and/or to build vertically. If the city government wont allow a suburb to turn into apartment complexes it shouldn't be surprising to find everybody going into debt trying to get themselves into a multi-million dollar house. Those corporations can make even more money by selling cheaper housing to more people (think Honda Civic vs a Lamborghini).
Nope. In fact, it's easier to progress when there are more people hoping to profit by providing me shelter. More supply means lower rent. More huge companies should do this and then compete for my rent. How is people trying to fulfill your need for shelter leeching off you? If you don't like it, don't rent from them. If you then complain that you don't have shelter, well, that's what they are there for. If they didn't exist, doesn't automatically put a roof over your head.
If you're saying you should be provided with free shelter just cuz, then you are leeching off from your fellow taxpayers and making it harder for them to drag themselves out of the working class because they have to pay more taxes to subsidize your need for shelter.
@@burtonl7239 You got me. I guess there is just no possible way to restructure the housing market so that people aren't constantly paying for a basic need and not getting any ownership rights in the process. Let me just join you in licking those landlord boots clean.
@@Dontreallycare5 Oh, you. Such a drama queen. And there already is a way to do that. It's called saving up and buying a house. And no, just because you pick a house in an overpriced area doesn't mean the method isn't working for you. It just means you suck in making choices. I do hope you like the taste of boots though.
11:35
Office worker: “working from home is great” 😌
Boss: “yeah, we’ve decided Raj from Mumbai can do this job for half the wage, sorry” 😬
An office worker goes into a pub and sits at the bar. The ex-shipbuilder next to him says "why so glum mate?"
The office worker says "I'm out of work, my job got outsourced"
The ex-miner sat on the other side of him buys him a beer and says "you know, they say you can always retrain...."
Thanks for this video. It makes so much sense to me. Keep it up and great job!
Even if the economy recovers, I doubt most young people (mostly between 25-35) will ever be able to recover from two major financial setbacks. Most may never be in a position of buy a house and save enough for the retirement. Most of us will get stuck in the vicious cycle of working in a low paying job,spending on our daily necessities and living with a false sense of hope that one day we will make it, but it might all come too late for us.
"I believe that banking institutions are more dangerous to our liberties than standing armies. "
- Thomas Jefferson
I mean jeffersons not really a great one to quote on this his financial illiteracy caused a recession
It depends on who the banks serve, which ultimately comes down to them being privately owned or owned by the government
@@bobkrazynski2205 that moment when keeping out the 2 largest economic powers somehow screws up the economy.
He was talking about central banks.
S shaped 'recovery' :
When the government realizes that the recovery is insufficient they send someone back in time that has better plans. The discontinuity you see at X=0 represents the immediate hype for the time traveler, the peak and then the come down to reality.
Only one universe was destroyed in the process. I think this should be a target because it can be repeated, at the limit you find the optimal economic strategy.
I am most of all impressed by the b-roll this channel employs its all up to date. Even the generic business person doing business scene feels fresh.
All we need is an O now and the economy will be done
Well, it feels like everyone is getting f*cked, so hopefully there will be an O to go with it
KO!! Flawless economic deppression
If the economy goes into an O does that mean that it's an economic revolution?
What we need is a humanitarian system. Capitalism is not one. It is a jungle, where the most brutal, that is ones with large amounts of dry powder win. The worst of all is that governments do nothing to prevent this nonsense. Pumping money in the economy only makes people worse, the rich get richer while the poor get into more and more debt. Cash should flow to the very bottom of the society first, not to prop up the stock market. Each time there is a crisis, fewer and fewer people get real help, those who do hardly need it.
@@swojnowski453 nah what we need is to teach every citizen about personal finance because it doesn't matter how much money you give them. They will stay poor if they don't know how to manage money.
Growing up in developing nation as a minority group teaches me a lot about saving and emergency fund
The government is not reliable and as minority job is hard to come by due to discrimination.
You need to be smarter and also save up money. Never spend something out of necessity or at least have budget for those parties and traveling .
During this pandemic and hard time, this mindset proven to be useful for ms.
Great to see you doing well during these difficult times. May I ask where you from?
I have always followed basic fiscal rules of saving and living below my means. My young daughter used to complain that all her friends families were "richer" than us. I pointed out that they "appeared" richer but there was a lot of debt involved. This was hard for a 13 year old to understand. Today I am retired with a 70K pension and a net worth well over one million. I also have no debt and significant investment income while my house and car are paid for. That daughter is driving a late model car that I gave her. I sometimes wonder if that was a mistake.
Nice , I was looking for this specific topic 👍🙏
So thanks for the upload
Hadn't thought this through before this video. But are the economies of the west not just completely screwed if office work gets outsourced?
In the past manufacturing has been outsourced because you can always deliver your widget to another country and it hasn't really been possible to outsource services.
If that changes, would that not just put a lot of downward pressure on wages in Western countries? Which in turn would probably break our housing markets as people have less income to pay off debt with?
"With the realisation that almost all professional office based work can be done from home comes the realisation that almost all professional office based work can be done from Manila or Mumbai."
I think this could prove to be a very profound quote.
Outsourcing of services has been going on for decades. Callcenters, newspaper editorials, Tech consultancies, etc. The only big barriers are language and time zones.
The former is not that big of a barrier but the latter is. Time zone probldm can be fixed by making them work night shifts.
But you can make a call center worker work night shifts but you can't make an investment adviser work night shifts.
That's why you don't see high paying service jobs get outsourced much.
The US used to be the biggest industrial center in the world but it slowly shifted to Asian countries. Those worries are definitely not baseless.
There's not a single Walmart in India but Walmart has office space in India and hires software developers and data scientists here
Kinda makes sense, but it would probably be more complicated. For example if all these jobs get outsourced it might mean fewer people would be able to buy the goods and services that the office jobs provided or supported in the first place causing the business to shrink and have fewer jobs anyway? There is always that sort of cyclical effect - people in crisis dip in to savings/debt/retirement so will have less in the future which means they buy less in the future. Same if people lose jobs, they stop buying as much, causing lower demand which then hurts business profits. I imagine that is also true in the event of an extreme case of businesses profiting from misfortune. Amazon can make huge profits from people staying home and ordering more but if enough people lose their jobs would there then not be enough people able to buy stuff from Amazon for it to keep making a profit?
"Are the economies of the west not just completely screwed if office work gets outsourced?" Sort of depends on how it is managed. The west tends to have some advantages arising from more effective social and legal system, lower population density, and more per capita resources. Those advantages are currently being squandered as they've allowed poor policies in the past, which continue going forward. There is a chance that overseas challenges might drive rationalization of policies which would allow the advantage to persist until the rest of the world peaks in population and we get to the star trek future in a couple of hundred years. But in general the west as a whole will probably fragment leading to parts dropping down to lifestyles equivalent to those folks in Manila and Mumbai. And other parts being like Singapore or Switzerland.
great video until you put forward the idea that the 'individual' has a significant power to prevent or 'be on the right side' of the k-shaped recovery. if you think about who influences public policy and how, you'd quickly realise that is not far off from 'just don't be poor lol'.
Every time I hear the word “responsibility” I question why I’m subscribed to this channel. It instantly discredits the entire video, regardless the quality and accuracy of the remaining content. It’s a major dog whistle, and those who don’t realize it literally don’t know what they’re saying.
@@AltecE Yeah, responsibility doesn't exist, wah wah, government change my diaper, wah wah!
I am shocked to see such idiocy in the comments, but I am on the internet.
@@shorewall well, sure, if you're one if the wealthy twits responsible for most of the screwups (not the current one, obviously, but that doesn't change the reaction) that's Exactly What Happens!
If you're actually poor (or even middle class) eveyone just tells you you should have been more responsible, no matter how responsible you actually were and regardless of how much or little influence you had over any part of the process.
And sure, some poor people Are in that state due to their own actions and foolishness. At least as many are not, and most of the western world is set up such that it is Very hard to get out of that hole once you're in it. Some places make it much harder than others. (Most make it so there's a point at which the hole can't get deeper, but not before it's too deep to get out)
Then there's the shear number of Poverty problems that get treated as Race problems, functionally making them harder to fix as resources get miss allocated, even as actual race problems get labled Poverty problems and those discriminated against are just told they need to be more "responsible" rather than anything getting fixed.
Go vote locally and on national elections
Larry Cai do you buy starbucks through uber eats everyday? Do you shop in amazon? Subscribe to 5 video streaming sites? Buy 5 air Jordans? Everytime I hear people complain and say the exact same things you say, I actually realize that they're practicing a lot of bad financial habits like the few I've mentioned above. There are many things we can do that's within our control, and I agree with EE that that entails a massive rethinking of the American dream and expectations.
Step 1. Split stuff into strategic and implementationary
Step 2. UN helps people who ask for help in exchange for implementing stuff that's in the steal/share game (if you are aggressive then you get more but resources are wasted, so it's the best if we all somehow agree to not be aggressive here) not whatever they're doing now
Step 3. I get virtual upvotes, therefore increasing my productivity through morale
I learn so much about economics from discovering this channel. Keep up the good teachings
Is it because to finish the K time would reverse? That's probably bad for the economy
Well I mean Tenet was pretty good.
@@EconomicsExplained The sound effects though... MY EARS!
You have clearly not watched the video.
@@arunavaghatak8614 You clearly did not get the joke
In previous videos you also mentioned that price of goods will rise or stagnate instead of fall if people are able to afford them, but if people are willing to take a loan (live on credit), then those that are not willing to take a loan and that struggle the most are those most disadvantaged. Knowing that, it might seem reasonable to assume that such crisis CAN'T be understood as individual responsibility UNTIL society didn't provide means for responsible live-stile to become beneficial or at least not risky.
How is everything a problem with the society ? Why are individuals not responsible ? A socity is made by collective actions of all individuals . If u worship a celeb u would fall for their marketing . Whose fault ? The celeb . It's u who hold an actor in a higher regard . Also there is huge difference between essential spending and wasting.
Also the man taking a loan would suffer during a downturn and would be poorer, whereas u have a better chance of survival . He is simply asking one to avoid non essential spending . Its your money and u decide where to spend so own it up.
@@piyushgupta3678 Good Point
This is a great channel. Easy to understand. Keep up the great work.
Everybody out here like: "minimum wage"
I'm here like: "heh, trade school go BRRRRRRRR"
how did you learn about Trade school?
@@ReubMann almost every high school has a trade school they can go to, at least in the US. In certain states the state might also pay for the expenses of trade schools if you graduate highschool like Tennessee.
Capitalists: socialism always fails
Also Capitalists every decade or so:
One or two years of economic downfall for 8 years of economic growth seems like a decent economic system for me
In fairness capitalism has failed before in the great depress likely we are gonna move constantly closer to a social democracy every time this happens with a massive economic collapse every so often leading gradually to more government programs
Zodboeg nope but social democracy is
@@webwizes5620 Economic downfall so bad that you only get back to where you were 8 years later, and then lose your progress, all as inflation keeps happening. Say that again?
Kevin Van have you looked at economic data post recession? It almost always picks up and fully recovers in 1- 2 years
I wonder if Economics Explained will make a video on "How to lower the cost of living" given our current economic climate. If everything is going up in value and wages are more or less stagnant, is there any realistically-feasible way to lower that price for consumers and still make a profit for businesses? Would be nice to know 🤔
One thing that could help would be to destigmatize multigenerational households, it would reduce the demand for housing and would free up more money for other things. It wouldn't solve the problem but it would help reduce the cost of living in many areas.
@@garethbaus5471 Multigenerational households are already a thing in America (have been for at least the past decade), and they're not the best for people from abusive households. So, nice sentiment, I guess, but a medium-sized carton of strawberries still costs seven bucks where I live.
@@hauntedshadowslegacy2826 I didn't say they were an option for all people nor did I say it isn't currently practiced. My point was that the stigma of multigenerational housing in the US means that in most cases the only people who live in a house shared by multiple adult generations are the people who can't afford to live on their own. If it became acceptable for adult children who have good jobs to live with their parents we would have more available housing and on average more money available for goods and services which would reduce the costs of living in most areas by reducing housing prices and allow more money to be actively circulating in the economy. The price of strawberries is unlikely to be significantly effected by this change and is therefore not particularly relevant.
This video made me SO happy. Thanks!
You're spot on about the realization that all professional office space work can be done from Manila or Mumbai. There will be an exodus of white-collar on the heels of all the manufacturing work that left.
Americans should really go back to living in multi generational households. I’ve met way to many poor “independent” 20 years old that are living in cheap apartments but it’s still costing them 40% of their take home pay.
I think part of it is that they also want to get away from their parents. Stuff like abuse or manipulation or constant guilt tripping takes a toll on one's mental health. I know for me an a lot of people, the stress of having to share a house with someone you hate isn't worth the money saved except in the most extreme circumstances.
I have been saying this for years, although this isn't an option for everyone, the reduced cost of living for a significant chunk of the population should help increase consumer spending as well as saving for retirement. Older people living with their children and grandchildren could help with childcare and might be able to live in their own homes for longer. The people who don't have a stable family to live with will benefit from lower housing costs as a result of reduced demand. A cultural shift to multigenerational housing in the US seems like it would benefit most of the country.
There’s additional factors being overlooked:
A shift to multigenerational housing would limit mobility to some degree. If a job opens up in another state, for instance, do you move the whole family, including the grandparents? What if they don’t want to leave their home, as is often the case in the US? What about siblings, do they have to move too? This is tougher to pull off in an increasingly mobile and interconnected society.
@@arribalaschivas91 In addition, mobility is limited by non-intact families with two working parents.
@@arribalaschivas91 Good Point : (((((((
Hey could you do a video on the effectiveness of worker co-ops?
@marios gianopoulos it seems dubious to make general claims from a single case although I'm not necessarily disagreeing with you. I just thought it would be nice to see some pros, cons and possible fixes discussed.
@marios gianopoulos ah thanks :)
@marios gianopoulos There are some pretty large co-operatives around. Here in the UK the Co-op is the 6th largest supermarket with over 2500 shops and last year had 6.6% of the total UK supermarket market share.
I feel very lucky I was just entering the full time work force in 2008 because that was a major education. My early 20's were sh*t, but now with this recession I was able to turn the table and greatly increase my net worth because I was ready this time.
I consume endless economic content and yours is some of the best.
Poor people: "I have always had enough money."
Rich people: "living within your means = living beyond your means"
Poor people: "I'm starting to understand Robin Hood"
Robin hood robs tax collectors that overtax people and returns the money to them. Rich people hates taxes as well. You obviously don't understand Robin Hood. Rich people would love him.
@@burtonl7239 The rich people at that time were the nobility who were the ones asking for taxes. They didn't have rich citizens back then, if you weren't a lord or nobility, you were dirt poor. Robin Hood had his castle stolen from him when he was at war, without any land he became a peasant. That period ended with the French Revolution when they overthrew their upper-class, and then most countries followed suit until there were no monarchs with real power left. Even now we still have people with money that have power and influence over the lives of the poor. If you are poor, you will stay poor. If you are rich, you have many opportunities to become more rich, and plenty of opportunities to avoid losing any money. If you deny that the poor stay poor and talk about gaining education to make money, you almost have an argument, but education is not a guarantee. A diploma is a gamble.
I can verify that most of our US-based clients are requesting services from our Manila office during this economic crisis.
If there is too much outsourcing, I think it could pretty much collapse the wages in advanced economies and cause a whole lot of chaos.
Daniel Macculloch that’s not what happens. Outsourced jobs are low skilled and already pay low wages. And big businesses that outsource increase profits.
@@EvilChris2010 Except that's literally what happens. Outsorcing creates a detriment in the life standard of low income and middle income households. It only benefits the business owners of large corporations.
@@EvilChris2010 "
@@_extrathicc It also benefits the laborer who has a job in an otherwise extremely competitive labor market. Americans... so self-centered and fraught with vanity.
I'm 26, father of one and living with my parents. We got a big house though, space is not a issue I love my parents and kid a lot
My parents are still feeling the effects of the 2008 economics crash. At the start of the pandemic, I lost a a third of my income but that forced to me to make a financial plan for myself. I have started to pay off my debt quicker than before and will finish all of my debt, excluding my property, by end of next year. I have also reduced my expenses and I'm still able to save for my retirement and my daughters education by making a few lifestyle changes. I've even started a RUclips channel documenting my journey.
16:27 I had just managed to start making one right before the recession hit. which was great, right up until my car needed serious engine work that went through all of it. On the plus side I did have the money to survive needing several weeks of paychecks in a very short period of time. On the down side, my well laid plans very quickly went awry.
I know, I had to rebuild my savings several times after life came calling. But I think that is better than the alternative. I would rather have to blow my savings in an emergency, than rack up debt with that interest working against me.
Best wishes.
@@shorewall thanks. To you too.
This tends to happen to emergency funds I'd just build it up over time again. The point isn't to never spend your emergency fund just to never go into debt to cover an emergency because you have the cash for it.
17:00 now that's something i never understood about US and most western countries: 18 and you get the boot
that makes no sense, it goes both ways. if you kick your children out when they literally need you most... whats gonna happen when you old and can't do most things?
In the long run it definitely is the smart move for both parents and children.
@@garethbaus5471 in the long run it gets you in a retirement home being treated like garbage
@@khhnator how would living with your adult children cause you to end up in a retirement home?
@@garethbaus5471 well you did not specify what was a good move :D
@@khhnator sorry I should have been a bit more clear, I was agreeing with your original comment.
Sobering thought. Thanks for reminding me there are a lot of people worse off than me (and i'm not rich). Too easy to let self-pity blind you to others' need.
Such a good channel, can hardly believe you only started last year
I quess there is economic recovery to every letter of alphabet now. I myself believe in "Æ" shaped recovery.
Is that why the Russian economy is so different than ours? Because they have all those extra letters for economic curves that don't exist in english?
That's just a K with extra steps.
How does that shape go?
@@SCHMALLZZZ i personnaly belive the entire language of english shouldnt exist😤
@@arrakis7132 We should make a new language with all the best parts of all the other languages. We'll call it English 2. It's exactly the same as English, but spelling makes sense.
This has been the US Economy for decades. It's just happening less gradually now.
You're videos are great mate!
Alluding to the last part of the video. In India, many starting salaries are designed with the assumption that the young employee lives in their parents' house. The monthly income is almost impossible to sustain in Delhi/ Mumbai. I'm talking about our biggest MNCs here!