Does anyone remember learning this in high school or college? Neither do I. A MAJOR failing of educational systems is not teaching young people about work, capital, money, investment, value.
The government decides what you learn in school. It's better for the economy (the billionaire political donor class) if Americans remain mindless consumers and in constantly increasing debt.
I took a masters class where the book we had to read Road to Serfdom by Hayek. We also learned about the Austrian Business Cycle. Up until then I only heard about Keynesian Economic Theory. This was in the 90's.
@@edwardwright4633 Learning the ABCT in college? Sounds interesting, if you dont mind me asking what college/university did you go to? And who was your professor. Typically Austrian econ is heavily gate kept from being taught in universities.
1 massive criticism. The music is audible but indistinguishable. It's like a buzzing nearby that you can't identify or remove. Either remove the music or make it fully audible.
00:00 The Good Economist looks at both the Seen and the Unseen/Forseen 1:25 Broken Window Fallacy 3:50 The Blessings of Destruction: Do wars (or natural disasters) promote economic growth? 4:20 Can the government create jobs through public works and bureaucracy?
We'll take a look at the article, but as to shadowstats, the methodology is weird. As Mateusz Machaj (PhD in economics) from Mises Institute pointed out, Williams only adds an arbitrarily chosen percentage to BLS CPI. He just adds 7% to the official CPI, he does not recalculate it. He admits it himself by saying: „The ShadowStats-Alternate Consumer Inflation Measure adjusts on an additive basis for the cumulative impact on the annual inflation rate of various methodological changes made by the BLS (the series is not recalculated)” There's also a critique of the shadowstats methodology in EconoMonitor here: www.economonitor.com/dolanecon/2015/03/31/deconstructing-shadowstats-why-is-it-so-loved-by-its-followers-but-scorned-by-economists/
Can someone help me with solutions to this questions. True or False with Short explanation. 1. The USA is the world's bigest economy, according to PPP- adjusted GDP figure 2. The Mercantilists view trade as zero- sum game 3. Absolute advantage theory suggests sountries should import goods other countries produces more cheaply. 4. According to the Heckscher-Ohlin theorem , car should be produced in the USA rather than in Mexico 5. When testing the Heckscher-Ohlin theorem in practice, Leontief found that the USA exported labour- intensive products and import capital-intensive products 6. Estonia's and Finland's close trade partnership could be explained by gravity theory 7. China economy is shifting from manufacturing to services 8. Trade tariffs on food tends to be higher than on industrial goods 9. Due to capacity constraints, trade tariffs are usually lower amng developing countries 10. The bound tariff is higher than preferential tariffs 11. Saudi Arabia has the biggest proven oil reserves in the world 12. The cash i have in my wallet and deposits on my regular bank account are included in the monetary aggregate M1 13. The economy is believed to have a positive output gap when the potential (long- term average) economic growth rate is above the actual economic growth rate 14. A government should LOOSEN its monetary and/ or fiscal policy when actual economy growth EXCEEDS potential (long-term average) economic growth 15. Bank reserve requirement should be TIGHTENED when economy is experiencing a NEGATIVE output gap 16. Interest rates should be RAISED when the economy grows well ABOVE its positive (long - term average) growth rate 17. Monetarists view fiscal policy less effective than monetary policy 18. Devaluation of one's currency can help to reduce one's trade deficit. 19. Gold. Silver and other metals are examples of Fiat money
Could you please help explain section 3 of "Enough to Buy Back the products" chapter? I am new to economics and especially confused on the "wage and salaries in US averaged 69 percent of national income" part.
the problem with this is you do not consider that money can be hoarded. the benefit redistribution would offer, hopefully in productive ways, is taking away money from people who hoard it and don't inject it back into the economy. not every business owner spends their excess money reinvesting in their workers pay or business. instead, they save it for future generations to be filthy rich. That is basically just capital flight imo. I hate bureaucracy and nonefficient government, but I also realize that without some redistribution we would end up with a monopoly.
You neglect an important part of the book: saving is actually spending. The rich aren't stupid. That is why they are 'rich'. When they save, they save in banks and through investments. Banks, in turn, lend to others, creating more opportunity for those to buy, invest in a new business, etc. Same concept in regards to investing. Businesses and corporation use the investment money to grow, hire people, expand, etc. They know that 'hoarding money' means no growth through interest, and they actually lose money through inflation. Seen and unseen. Would you rather the government determine redistribution, or let market forces decide? I know what I would choose, and have seen to be successful. Rich people are rich for a reason. They understand how money really works.
Michael Hicks for sure I get they wouldn’t want to stick it under a mattress. I’m curious though what you think would fix massive wage stagnation in the private sector? We just had sweeping tax cuts in America and that did not makeup for wage stagnation. And also on top of this.. starting a business is at an all time low. Probably many factors involved but our current system of corporatism isn’t working very well for most.
The market will usually work itself out. Raising the minimum wage only encourages employers to cut costs to save money. The last thing they want to do is lose customers by passing on the higher wage cost to the consumer. They will, and are already, responding to demands for higher wages by automating low skill tasks and cutting employees. It's a competitive world out there, no matter how much public schools and colleges have tried to do away with it. As a business owner, if you raise prices, then more often than not, you will lose business. What would you do to stay competitive? It's a tricky balance here. You need workers, and if supply is low, you will pay more to attract more potential employees. I see this where I live. Jobs meant for teens are booming and paying close to $10 an hour. If you stay at minimum wage, and someone else is paying more, you will lose your employees. Again, the MARKET working itself out. There is a great article in, of all places , the NYT that says that, yes, most people got a tax cut. Also, all of the articles I have read have proof that wages are rising, especially for high, in demand, SKILLED jobs. More than 44% of the American population pays no income tax. Of course they aren't getting a tax cut. If you didn't pay anything in, it stands to reason that you shouldn't get anything back. 44% get all of their money back, then some. One of the major factors in others not starting businesses is the daunting challenge of regulations, which scare many from even taking a chance (and the fact that 90% of all businesses fail within the first 3 years). Wage stagnation isn't an issue if you have high, in-demand skills. It's usually stagnant for low-skilled people with educations that don't relate to real world opportunities. No wonder the barista at Starbucks with a women's studies or history degree and over $100k in student loan debt is a socialist. On the other hand, the kid that went to community college and got his plumbing license is pulling down six figures because of simple supply and DEMAND. The barista has skills that aren't really in demand. The plumber does, thus, there is no 'wage stagnation' for them. So, in all of this that I am saying, acquiring NEEDED, in demand skills and education will eventually work out 'wage stagnation' issues. Not by government intervention. Like I said, read the book. It should be the bible of economics taught in high schools across America. We could solve alot of economic problems with the lessons contained throughout the book (at least a basic understanding of seen and unseen consequences of decisions).
Show that the problem isn't in government but in there people who investigate there money that they earned mostly by collecting and giving them cutting tree building that leads not only creating jobs but it has bad affects that is unseen as destroying green lands which lead other problems every action has a reaction
What would happen if the government never built those roads? How are we going to our widgets from place to place? A good economist would see the long term jobs created by #WeThePeople building roads is enormous.
Your explanations are really good. You should do one explanation for each chapters in Econ in One Lesson
Does anyone remember learning this in high school or college? Neither do I. A MAJOR failing of educational systems is not teaching young people about work, capital, money, investment, value.
The government decides what you learn in school. It's better for the economy (the billionaire political donor class) if Americans remain mindless consumers and in constantly increasing debt.
It’s literally the entire point of going to school😂 Learn stuff to get a job and live
@@noodlenado7827 Because that's how reality works. There is not free shit. It must be paid for.
I took a masters class where the book we had to read Road to Serfdom by Hayek. We also learned about the Austrian Business Cycle. Up until then I only heard about Keynesian Economic Theory. This was in the 90's.
@@edwardwright4633 Learning the ABCT in college? Sounds interesting, if you dont mind me asking what college/university did you go to? And who was your professor. Typically Austrian econ is heavily gate kept from being taught in universities.
The shoe example was really enlightening.
Don't forget the consumption of time too. Time is irrepacleable on a worker's life.
Doctors When your learning for 10years just to get replaced in 2 months by a robot
Cool vid, love Henry Hazlit
Thank you! :)
Bastiat was a great mind of his generation. So good that Hazlitt wrote such a fantastic book which contains his thoughts.
I love your mode of explanation it is quite clear. Thank you so much
liked just for that string image. loved it so much. instantly knows what you was talking about. made me feel so smart haha
You're a good economist.
What is your view on standard oil's dismantling?
Emmanuel oShaddai he made a video about this on Polish channel, maybe in the future it would be translated
Karol Gajko thanks for letting me know.
1 massive criticism. The music is audible but indistinguishable. It's like a buzzing nearby that you can't identify or remove. Either remove the music or make it fully audible.
Loved it!
Thank you!
Great video!
00:00 The Good Economist looks at both the Seen and the Unseen/Forseen
1:25 Broken Window Fallacy
3:50 The Blessings of Destruction: Do wars (or natural disasters) promote economic growth?
4:20 Can the government create jobs through public works and bureaucracy?
Do one for real inflation, shadowstats + recent zerohedge article titled "Devonshire: True Inflation"
We'll take a look at the article, but as to shadowstats, the methodology is weird. As Mateusz Machaj (PhD in economics) from Mises Institute pointed out, Williams only adds an arbitrarily chosen percentage to BLS CPI. He just adds 7% to the official CPI, he does not recalculate it. He admits it himself by saying: „The ShadowStats-Alternate Consumer Inflation Measure adjusts on an additive basis for the cumulative impact on the annual inflation rate of various methodological changes made by the BLS (the series is not recalculated)”
There's also a critique of the shadowstats methodology in EconoMonitor here:
www.economonitor.com/dolanecon/2015/03/31/deconstructing-shadowstats-why-is-it-so-loved-by-its-followers-but-scorned-by-economists/
Excellent
Thank you for the educational video, King T'challa.
Does anyone know the background music playing in this video? Thanks
Can someone help me with solutions to this questions.
True or False with Short explanation.
1. The USA is the world's bigest economy, according to PPP- adjusted GDP figure
2. The Mercantilists view trade as zero- sum game
3. Absolute advantage theory suggests sountries should import goods other countries produces more cheaply.
4. According to the Heckscher-Ohlin theorem , car should be produced in the USA rather than in Mexico
5. When testing the Heckscher-Ohlin theorem in practice, Leontief found that the USA exported labour- intensive products and import capital-intensive products
6. Estonia's and Finland's close trade partnership could be explained by gravity theory
7. China economy is shifting from manufacturing to services
8. Trade tariffs on food tends to be higher than on industrial goods
9. Due to capacity constraints, trade tariffs are usually lower amng developing countries
10. The bound tariff is higher than preferential tariffs
11. Saudi Arabia has the biggest proven oil reserves in the world
12. The cash i have in my wallet and deposits on my regular bank account are included in the monetary aggregate M1
13. The economy is believed to have a positive output gap when the potential (long- term average) economic growth
rate is above the actual economic growth rate
14. A government should LOOSEN its monetary and/ or fiscal policy when actual economy growth EXCEEDS potential
(long-term average) economic growth
15. Bank reserve requirement should be TIGHTENED when economy is experiencing a NEGATIVE output gap
16. Interest rates should be RAISED when the economy grows well ABOVE its positive (long - term average) growth rate
17. Monetarists view fiscal policy less effective than monetary policy
18. Devaluation of one's currency can help to reduce one's trade deficit.
19. Gold. Silver and other metals are examples of Fiat money
Love your videos
Could you please help explain section 3 of "Enough to Buy Back the products" chapter? I am new to economics and especially confused on the "wage and salaries in US averaged 69 percent of national income" part.
Wow...thanks a ton dude
Awesome vid❤❤❤❤❤❤❤
If we laid all the economists in the world end to end, they still wouldn't reach a conclusion.
It's a child's playground
very cool, hey you read a lot of books, have you read Capital Theory of Eugen von Böhm-Bawerk?
the problem with this is you do not consider that money can be hoarded. the benefit redistribution would offer, hopefully in productive ways, is taking away money from people who hoard it and don't inject it back into the economy. not every business owner spends their excess money reinvesting in their workers pay or business. instead, they save it for future generations to be filthy rich. That is basically just capital flight imo. I hate bureaucracy and nonefficient government, but I also realize that without some redistribution we would end up with a monopoly.
You neglect an important part of the book: saving is actually spending. The rich aren't stupid. That is why they are 'rich'. When they save, they save in banks and through investments. Banks, in turn, lend to others, creating more opportunity for those to buy, invest in a new business, etc. Same concept in regards to investing. Businesses and corporation use the investment money to grow, hire people, expand, etc. They know that 'hoarding money' means no growth through interest, and they actually lose money through inflation. Seen and unseen. Would you rather the government determine redistribution, or let market forces decide? I know what I would choose, and have seen to be successful. Rich people are rich for a reason. They understand how money really works.
Michael Hicks for sure I get they wouldn’t want to stick it under a mattress. I’m curious though what you think would fix massive wage stagnation in the private sector? We just had sweeping tax cuts in America and that did not makeup for wage stagnation. And also on top of this.. starting a business is at an all time low. Probably many factors involved but our current system of corporatism isn’t working very well for most.
The market will usually work itself out. Raising the minimum wage only encourages employers to cut costs to save money. The last thing they want to do is lose customers by passing on the higher wage cost to the consumer. They will, and are already, responding to demands for higher wages by automating low skill tasks and cutting employees. It's a competitive world out there, no matter how much public schools and colleges have tried to do away with it. As a business owner, if you raise prices, then more often than not, you will lose business. What would you do to stay competitive? It's a tricky balance here. You need workers, and if supply is low, you will pay more to attract more potential employees. I see this where I live. Jobs meant for teens are booming and paying close to $10 an hour. If you stay at minimum wage, and someone else is paying more, you will lose your employees. Again, the MARKET working itself out.
There is a great article in, of all places , the NYT that says that, yes, most people got a tax cut. Also, all of the articles I have read have proof that wages are rising, especially for high, in demand, SKILLED jobs. More than 44% of the American population pays no income tax. Of course they aren't getting a tax cut. If you didn't pay anything in, it stands to reason that you shouldn't get anything back. 44% get all of their money back, then some. One of the major factors in others not starting businesses is the daunting challenge of regulations, which scare many from even taking a chance (and the fact that 90% of all businesses fail within the first 3 years).
Wage stagnation isn't an issue if you have high, in-demand skills. It's usually stagnant for low-skilled people with educations that don't relate to real world opportunities. No wonder the barista at Starbucks with a women's studies or history degree and over $100k in student loan debt is a socialist. On the other hand, the kid that went to community college and got his plumbing license is pulling down six figures because of simple supply and DEMAND. The barista has skills that aren't really in demand. The plumber does, thus, there is no 'wage stagnation' for them. So, in all of this that I am saying, acquiring NEEDED, in demand skills and education will eventually work out 'wage stagnation' issues. Not by government intervention. Like I said, read the book. It should be the bible of economics taught in high schools across America. We could solve alot of economic problems with the lessons contained throughout the book (at least a basic understanding of seen and unseen consequences of decisions).
john law and the paper mongers. Stop hoarding the money under lock and key
Subscribed🙂🙂🙂
The shop owner broke his own window.
That Which is Seen, and That Which is Not Seen!
Abbreviation of million is mio not mln
Do you have a vid explaining this in Spanish?
👀
Having someone with a heavy accent probably isn't the best choice for a narrator.
Show that the problem isn't in government but in there people who investigate there money that they earned mostly by collecting and giving them cutting tree building that leads not only creating jobs but it has bad affects that is unseen as destroying green lands which lead other problems every action has a reaction
What would happen if the government never built those roads? How are we going to our widgets from place to place? A good economist would see the long term jobs created by #WeThePeople building roads is enormous.