@@adamventura733 What high school did you go to? In my school, we only covered very basic economics that after we graduated we didn't even know what marginal utility per dollar or increasing return to scale was I use price elasticity of demand for everything now and I'm taking Macroeconomics in my 2nd year in college. Also props, Adam!
He taught you nonsense. Wealth means products and services, not money. If you don't belive that, adk yourself why is it that the more money there is in curculation, the less you can buy with them, or, in other words, the more useless it becomes. The "multiplier effect" is a nonsense concept used to justify government spendig, borowing, taxation, inflation ...which are all the things that make us poorer, not wealthyer.
Nicely done. Any idea how much money the uber wealthy have hidden in hidey holes to avoid taxation, or for that matter do they save enough to otherwise remove money from the economy to the point that the multiplier is excessively diminished to a harmful degree?
i never comment on youtube videos but I just wanted to say that you're a really great teacher. I take IB economics, and your videos have helped me so much! I got a 7 in my macro econ test because of your videos thank you so much
I HAVE HAD SEVERAL DIFFRENT PEOPLE EXPLAIN THIS EFFECT TO ME, NON SUCCEEDED IN TEACHING ME. I GREATLY THANK YOU FOR YOUR CLEAR AND UNDERSTANDABLE LECTURINGS!
THANK YOU SO MUCH FOR MAKING THESE VIDEOS. My professor sits in a chair at 8 AM lecture reading off his slides with a laser pointer. My final is this Friday and I'm just binging these videos - they're so well done and easy to understand. Thank you!!!!
Up at midnight cramming for my Macro Exam... SOOOOO glad I came across your videos! These are a life saver and they are making the info fun and interesting! I will be recommending them to all my friends who have yet to take the Micro course. Wish I had had time to get the practice booklet! Will definitely be adding my support!
Last semester I had Microeconomics at Uni. Your videos are excellent. Everything I didn't understand, I understood after watching you. Used all your videos for revision. Thank you
I have been in Macro class for over a month .. and don't understand a thing. I watch this video and feel 100% more confident, who needs lectures when I can watch your videos haha! Thanks so much :)
Thank you. Thank you. I am an online student received a book and tests... this really fleshes the information out. I now watch your videos first and then read the text to reinforce what you taught.
Mr.clifford you are and you'll always be my bestest teacher of economics.. 🤟😎I have seen no one till now, who has literally eased this subject "economics" to this extent... 👏👏👏😎
The fact that I am writing tomorrow and I've been struggling with this chapter for the whole semester, thank you so much from the University of Cape Town South Africa.
I had to pause and write it down to fully understand but this helped a TON! Thank you for condensing so much info into one 5 minute video. I hope I'll be ready for my test tomorrow :)
damn watching this the night before my ap macro exam sir bless ur soul for making these videos literally saving my life considering i know nothing about economics or whatsoever before
Before I started watching your videos, economics was confusing and sometimes boring, but now that I have started watching your videos it couldn't be any more fun.
Professor Clifford, you are really a genius! A master! The EconomicPedia! Fantastic! With you and the Crash C. I always learn a lot, and while having fun! Keep up the good work, please!!!! The best!!!
Sir, your videos are blessings in disguise, so much informative and so clear to understand tnx a lot for all the time and effort you put into making these videos
Wish I could have you in University. I'm currently in a Principles of Macroeconomics class and I have a final in a week, so I'm in full on review mode. Thanks for the videos, they really helped me this semester!
Listen I have traded stock, stock options, and currencies (only a year on currency once refco went under and stole my 1000, it was losses anyway mostly but. I'm back in school taking macro. the kynesian chart my teacher used same ag demand shifts to left, equilibrium and price point 1 and 2 chart 100 times. My point is everyone this guy knows his stuff and smart enough while being creative also to get you to stay with him till you get it. I click on you first man if your available and at 44 years old just want to say thank you. I have my macro exam today, last one of the semester and need a calculator, will do my best without one. Bottom line, math wise, 20% of macro was obvious to me with 15 yrs cnbc viewership but mathwise was lost in class till you. Thank you, I might still get a D but I'm trying for a B and praying for a C. Wish me luck man. Teachers don't get enough credit how important they are, makes me want to be a teacher instead of a hedge fund mgr that is my dream.
I love your videos. would you say that I answered this question correctly? If MPC is larger, is the Multiplier bigger or smaller? why? explain the process and based on its formula. The equation of the Multiplier is MPC= 1/MPS When the government spends money, it becomes somebody else’s money. The government wants to spend 20 billion on the military. if the MPC is .5 then the MPS is .5 then the 1x10/.5x10=10/.5=2 x 10 = 20 billion Then they collect interest on a loan or receive extra money paid. Now the budget for military funding can be increased. The new goal of the government is to spend a total of 30 billion dollars on the military budget. The government then hires Boeing to make military equipment when the government buys from Boeing they intern spend it on making the equipment by hiring others to help…however they save a portion and the spend a portion. If the MPC for Government is higher than there will be a larger the Multiplier effect if the MPC is .7 then the MPS is .7 then the 1x10/.1x10=10/.3= 3 x 10 =$30 billion.
SOOOO helpful ^_^ thank you. I agree. You make so much more sense than my professors and you even bring more enthusiasm _ which is definitely needed for this subject.
Great explanation! Thank you! I just have one question. Since the multiplier is 1/MPS, it would mean that the less money people tend to save would lead to a greater ripple effect. Does this mean that the government would actually encourage people to save less money? For example, if the MPS is 0.2, k would be 5 but if MPS = 0.01, k = 100. So saving 20x less money equals to a 20x increase in the multiplier. What are the economic implications when people do not save money? Or is it just something that happens since people have a fear of recession? And what if consumers (virtually) did not save any money (1/0.000000...1 --> approaches infinity )? So in an ideal word, if C = Yd, would the economy be amazing (In this example let's say U=Un and the unemployed citizens are paid out by the government while also having set future employment)? Of course, this would never happen due to economic uncertainty, since if people did not save any money and suddenly lost a job, they would have nothing. So going back to the government discouraging people to save, why would it not be a good idea for the government to say make a law that you can only save 1% of you spendable income while the government then saves a certain amount of their income in case of economic failure to then pay out to citizens in need when the economy goes into a recession. So this would be a sort of autonomous saving method by the government, saving a small percentage of tax income for future recessions. It might sound quite communistic or disadvantageous to the economy to suddenly make laws on saving but it's an interesting thought... Although, now that I think about it, the multiplier effect only has an effect on the economy when there are available, unused resources, meaning the economy is already in a recession. So would the multiplier even be able to promote economic growth since when the economy is at full employment we assume that there are no unused resources in the market, meaning the multiplier would be cancelled out by inflation? Sorry for the long, probably irrelevant comment, but these videos have actually got me thinking about the "what if's" instead of just studying the theory. Kind regards F
Also, I know this isn't a video about law, but would the government be able to create a law that, for example, everyone has to save exactly 10% of your income per year and you are only allowed to use that saved income in a recession? Doesn't really make sense since you cannot force people to consume things they have no need for but how about a minimum of 10% of your income? Thanks!
Hey Clifford your introduction is so funny ....my communication skills lecturer could have used you to explain on how to attract attention ,,,,,,, nice content
Hi Jacob, this video really helped, thanks for making it! One question, does investment get factored into the MPC or the MPS? It seems to share properties with both groups, considering it comes out of the interest of having money in hand, but also to something other than the spender themselves.
Hi Jacob Clifford, sorry but crazy idea here, if I can describe with an example: There are 30 workers at an insurance company. Their salary is doubled (let’s suppose from 5 to 10). Now, what could happen if: whatever small to medium service or product they pay for, from a doctor’s appointment to grocery products, they pay double or half more of what it’s worth. Would this be called a multiplier effect? Where would an economy like this lead the next beneficiaries and the next next beneficiaries? And let’s suppose a few more to more to a lot of companies or even a predetermined amount of companies apply this, may the result end in a growing economy of the lower or medium classes?
Hey Mark thank you so much for sacrifice your time to teach us incompetent students. I know you are busy with your venture capitalist things plus having to lead Maverick to win the champion, thanks again
This is why I think a ubi would be a fanominal idea. It could help so many people out of poverity, and with it as a safety net people would be willing to spend more. Thuse this would increase the rate at which people exchange money for goods. It would likely cost 3 trillion in the begining but could easly make that up and grow the over gdp in no time. Also people would feel more secure and as such willing to spend more making are econamy & workers more productive.
Hey Jacob! Where does the government take the money to spend more from? Suppose it is a sound government with zero deficit nor surplus. How would increase spending? Would it raise taxes? What if the MPS is 0 (like in inflationary countries, where savings lose their value rapidly), does that mean that the government spending is multiplied to the infinity? That doesn't sound realistic. For what I see this only means that money and spending moves more rapidly, but I don't see any wealth creation around this... in fact, looks very risky on an inflation point of view. Money spent from the government in goods and services that were only bought for the sake of increasing spending, are goods and services that will not be available for the private sector, who would have voluntarily buy them for their genuine sake (for consumption or for investment).
finals week in college. You are saving me.... saving me
same he's literally saving me
Don't bunk
Juan pedro Minaudo ????????
In India this is in class12 we r advance
@@adamventura733 What high school did you go to?
In my school, we only covered very basic economics that after we graduated we didn't even know what marginal utility per dollar or increasing return to scale was I use price elasticity of demand for everything now and I'm taking Macroeconomics in my 2nd year in college. Also props, Adam!
You've literally taught me more in the past 5 minutes than my teacher has for the past 3 months. You're a lifesaver!
i cannot agree more
He taught you nonsense. Wealth means products and services, not money. If you don't belive that, adk yourself why is it that the more money there is in curculation, the less you can buy with them, or, in other words, the more useless it becomes.
The "multiplier effect" is a nonsense concept used to justify government spendig, borowing, taxation, inflation ...which are all the things that make us poorer, not wealthyer.
What did you think of the video? By the way, don't tell anyone that this week's Techinical Tuesday was uploaded on Wednesday. Shhh. Keep it a secret.
you make a lot more sense than my lecturer.
+Abid Mo Yeah I wish I knew about these videos before my imminent exam. I had no clue what was going on in my lectures.
You are a life saver in a college world of dull econ textbooks and flat lectures...Thank You
Nicely done. Any idea how much money the uber wealthy have hidden in hidey holes to avoid taxation, or for that matter do they save enough to otherwise remove money from the economy to the point that the multiplier is excessively diminished to a harmful degree?
ACDCLeadership please make a video on paradox of thrift.
you're like the best econ teacher ever!
+Anand Bindal Thanks Anand
The introduction is funny AND it makes sense. He says the multiplier effect 4 times then something else twice then only once... love it
Underrated comment, I don't think many people got that
I am self studying macro and I have to say your videos are a phenomenal resource. thank you I will we be buying the ultimate review packet
i never comment on youtube videos but I just wanted to say that you're a really great teacher.
I take IB economics, and your videos have helped me so much! I got a 7 in my macro econ test because of your videos thank you so much
I HAVE HAD SEVERAL DIFFRENT PEOPLE EXPLAIN THIS EFFECT TO ME, NON SUCCEEDED IN TEACHING ME. I GREATLY THANK YOU FOR YOUR CLEAR AND UNDERSTANDABLE LECTURINGS!
+Abbosbek khurderberganov You are very welcome
THANK YOU SO MUCH FOR MAKING THESE VIDEOS. My professor sits in a chair at 8 AM lecture reading off his slides with a laser pointer. My final is this Friday and I'm just binging these videos - they're so well done and easy to understand. Thank you!!!!
I love this dude's content, 1. He is straight to the point 2. He has a sense of humor 3. He explains in normal english, not by text book terms
Up at midnight cramming for my Macro Exam... SOOOOO glad I came across your videos! These are a life saver and they are making the info fun and interesting! I will be recommending them to all my friends who have yet to take the Micro course. Wish I had had time to get the practice booklet! Will definitely be adding my support!
It’s helpful and considerate people like you that restore my faith in humanity and my grades. Thank you.
U explained 50mins worth of lecture in a 5 min video and made it so much clearer. thank you my guy
Last semester I had Microeconomics at Uni. Your videos are excellent. Everything I didn't understand, I understood after watching you. Used all your videos for revision. Thank you
I have been in Macro class for over a month .. and don't understand a thing. I watch this video and feel 100% more confident, who needs lectures when I can watch your videos haha! Thanks so much :)
+Tiana Nelson I'm glad I was able to help Tiana. You should check out my Ultimate Review Packet. I think you will like it.
Mr Clifford you are best teacher of Econ I have ever seen ...
Please could give lecture on " Neo-classical approach to aggregate supply "
that basically means a classic vs keynesian view of aggregate supply. Discuss the points of difference between them.
After i finished the video, i just re-watched the beginning. It's hilarious :'D
Thank you so much I tried skipping this chapter after rereading and not understanding. 25 pages covered in 5 minutes you are a God send!
words can not explain how grateful I am for this man
Thank you. Thank you. I am an online student received a book and tests... this really fleshes the information out. I now watch your videos first and then read the text to reinforce what you taught.
I love how you put jokes in your videos, it makes me remember easily. Your explanation is amazing and so are you.
Mr.clifford you are and you'll always be my bestest teacher of economics.. 🤟😎I have seen no one till now, who has literally eased this subject "economics" to this extent... 👏👏👏😎
The fact that I am writing tomorrow and I've been struggling with this chapter for the whole semester, thank you so much from the University of Cape Town South Africa.
Thank you for existing, you made something my professor explains in two hours so much easier to understand in five minutes.
I hope that more teachers teach as you do! You really make this world a better place
I wish our teachers also came to class with AC/DC belts
Your teaching is a million times better than a wordy textbook, and you are free!
Professor been trying to teach me this for 8 weeks. I watched this for 5 minutes and the lightbulbs went off! As an economics major! Thank you!
You are literally the best teacher for Economics ❤️ God bless you 😁
You are a legend! Studying for my Macro Final this Friday! You have saved my grade, thank you!
I had to pause and write it down to fully understand but this helped a TON!
Thank you for condensing so much info into one 5 minute video. I hope I'll be ready for my test tomorrow :)
damn watching this the night before my ap macro exam sir bless ur soul for making these videos literally saving my life considering i know nothing about economics or whatsoever before
Jennifer Yu OMG SAME
Haha same now I'm watching before taking my macro exam online smhh #classof2020
Before I started watching your videos, economics was confusing and sometimes boring, but now that I have started watching your videos it couldn't be any more fun.
I wish i had a great teacher like you. you are awesome man! Thank you so much for putting that much passion into this.
Professor Clifford, you are really a genius! A master! The EconomicPedia! Fantastic! With you and the Crash C. I always learn a lot, and while having fun! Keep up the good work, please!!!! The best!!!
Thank you for yet another fantastic video! Still (after 7yrs) highly valuable content.
I have only just found your videos today, but they are extremely concise and informative. Please continue to make more videos!!!
I love this man a lot. He's a real lecturer. He is genius and funny. Amazing🥰🥰🥰🥰🥰
I like your fun upbeat delivery
I think Hazlitt destroyed the concept of the keynesian multiplier in The Failure of the New Economics
Sir, your videos are blessings in disguise, so much informative and so clear to understand tnx a lot for all the time and effort you put into making these videos
Studying for my macro exam and you've just saved my life! Thanks man
Your teaching style was really helpful, thanks mate!
You are the economy tutor sent by God itself. I wish you the best of this world could give
much love from Indonesia.
8 years later and this is still helping people 🤯🤯
Fantastic explanation of the multiplier effect in only five minutes.
Your teaching really saves me. Thank you so much
Just amazing explanation.It's quick and clear at the same time.Keep it up
Smart wayy of teaching.. best 5 mins i spent on econ, thank you!
Wish I could have you in University. I'm currently in a Principles of Macroeconomics class and I have a final in a week, so I'm in full on review mode. Thanks for the videos, they really helped me this semester!
I have a Korean teacher, and well, if you know Koreans, imagine one teaching...simply said, you are my angel!
Listen I have traded stock, stock options, and currencies (only a year on currency once refco went under and stole my 1000, it was losses anyway mostly but. I'm back in school taking macro. the kynesian chart my teacher used same ag demand shifts to left, equilibrium and price point 1 and 2 chart 100 times. My point is everyone this guy knows his stuff and smart enough while being creative also to get you to stay with him till you get it. I click on you first man if your available and at 44 years old just want to say thank you. I have my macro exam today, last one of the semester and need a calculator, will do my best without one.
Bottom line, math wise, 20% of macro was obvious to me with 15 yrs cnbc viewership but mathwise was lost in class till you. Thank you, I might still get a D but I'm trying for a B and praying for a C. Wish me luck man. Teachers don't get enough credit how important they are, makes me want to be a teacher instead of a hedge fund mgr that is my dream.
Clever intro. Thanks for helping us get through Economics class.
Over here in the UK at university and find these videos extremely helpful, thank you !
I'm from India and we study these concepts in school glad that y'all learn this in college btw jcob you're one of the best best economic teachers
wow l can't believe am starting to understand eonomics better than before, good work cliff.
Dude I cant thank you enough for this
I could never understand this until now
+ash da You are welcome. Please subsribe and tell your friends
Done that long ago ago :)
Thank you so much. If t lectures or textbooks were like your presentation, students would do a lot better. Your awesome!
my test is tomorrow and here I am cramming everythingggg
you saved my grades today, man. You're a lifesaver.
I love your videos. would you say that I answered this question correctly?
If MPC is larger, is the Multiplier bigger or smaller? why? explain the process and based on its formula.
The equation of the Multiplier is MPC= 1/MPS
When the government spends money, it becomes somebody else’s money. The government wants to spend 20 billion on the military.
if the MPC is .5 then the MPS is .5 then the 1x10/.5x10=10/.5=2 x 10 = 20 billion
Then they collect interest on a loan or receive extra money paid. Now the budget for military funding can be increased.
The new goal of the government is to spend a total of 30 billion dollars on the military budget. The government then hires Boeing to make military equipment when the government buys from Boeing they intern spend it on making the equipment by hiring others to help…however they save a portion and the spend a portion. If the MPC for Government is higher than there will be a larger the Multiplier effect
if the MPC is .7 then the MPS is .7 then the 1x10/.1x10=10/.3= 3 x 10 =$30 billion.
This guy is an actual legend
oh my god! havnt thouht yet that we can study economics like this.. Enjoyed a lot.. the best teacher ever..!
SOOOO helpful ^_^ thank you. I agree. You make so much more sense than my professors and you even bring more enthusiasm _ which is definitely needed for this subject.
+Lo Brown Thanks. Please make sure to subscribe and tell your friends:)
Wow you're amazing
You helped me understand the multiplier effect in 5 minutes
Youre the Best, Love From South Africa.
this was so much clearer than what my class taught my goodness
Thank you so much Jacob Clifford you're the best.
Great explanation! Thank you!
I just have one question. Since the multiplier is 1/MPS, it would mean that the less money people tend to save would lead to a greater ripple effect. Does this mean that the government would actually encourage people to save less money? For example, if the MPS is 0.2, k would be 5 but if MPS = 0.01, k = 100. So saving 20x less money equals to a 20x increase in the multiplier. What are the economic implications when people do not save money? Or is it just something that happens since people have a fear of recession? And what if consumers (virtually) did not save any money (1/0.000000...1 --> approaches infinity )? So in an ideal word, if C = Yd, would the economy be amazing (In this example let's say U=Un and the unemployed citizens are paid out by the government while also having set future employment)? Of course, this would never happen due to economic uncertainty, since if people did not save any money and suddenly lost a job, they would have nothing.
So going back to the government discouraging people to save, why would it not be a good idea for the government to say make a law that you can only save 1% of you spendable income while the government then saves a certain amount of their income in case of economic failure to then pay out to citizens in need when the economy goes into a recession. So this would be a sort of autonomous saving method by the government, saving a small percentage of tax income for future recessions.
It might sound quite communistic or disadvantageous to the economy to suddenly make laws on saving but it's an interesting thought...
Although, now that I think about it, the multiplier effect only has an effect on the economy when there are available, unused resources, meaning the economy is already in a recession. So would the multiplier even be able to promote economic growth since when the economy is at full employment we assume that there are no unused resources in the market, meaning the multiplier would be cancelled out by inflation?
Sorry for the long, probably irrelevant comment, but these videos have actually got me thinking about the "what if's" instead of just studying the theory.
Kind regards
F
Also, I know this isn't a video about law, but would the government be able to create a law that, for example, everyone has to save exactly 10% of your income per year and you are only allowed to use that saved income in a recession?
Doesn't really make sense since you cannot force people to consume things they have no need for but how about a minimum of 10% of your income?
Thanks!
Imakilla4567 i like your thinking and thanks for sharing your idea
You really are so helpful :) I really hope you continue ACDC Econ not just Crash Course. This covers more useful topics for college econ
Already knew the effect of the multiplier but I watched to compare. You are doing very well with the editing and your voice. Gained a sub ;)
+Nigel PK Thanks Nigel. I appreciate it.
Your videos have saved me in my class. My teacher puts them instead of teaching anything lol
Maria Karla Gonzalez smart! He explains it... clear
Same
Hey Clifford your introduction is so funny ....my communication skills lecturer could have used you to explain on how to attract attention ,,,,,,, nice content
Good teacher. I love every video that you make. They give a sens to my ecomics courses. Thank you so much
Thank you so much for your videos! You're so great at explaining econ concepts. Econ hero.
+Liora Epel Thanks Liora. Let me know if you need me to cover anything.
This 5 minute video helped me understand what my economics teacher couldn’t explain in 45 minutes…
It's a great day to learn Economics! Your videos have saved me!
life saver for 10th grade too. I just needed to learn about the basic about what is THE MONEY MULTIPLIER, but i got the whole overview.
Thanks
thanks for the video! i was struggling in macro for a month until i found ACDC Econ.
Thank you. Got an A in economics but did not understand anything. Until now
you make my studying a lot more easier...thank you so much
Tonnes of love from India!
You're awesome, Jacob.
+namrata singh Prepared for boards exam?
who's this guy he's on a whole new level
You make me a better lecturer. You're annoyingly amazing
You're life saviour Sir
Much respect
Thankyou 😊
going to major in animation/film and the entrance test has economics in it :" This is a total lifesaver!!
Hi Jacob, this video really helped, thanks for making it! One question, does investment get factored into the MPC or the MPS? It seems to share properties with both groups, considering it comes out of the interest of having money in hand, but also to something other than the spender themselves.
Finally someone talking economic things at a tolerable pace.
Wau you are really great at delivering the concepts here. Due to you I really start to like Economics.
GET IT!
Thank you Jacob, you makes ECONS easy and simple :)
+waleed harbi Great. I'm glad it makes sense.
Hi Jacob Clifford, sorry but crazy idea here, if I can describe with an example:
There are 30 workers at an insurance company.
Their salary is doubled (let’s suppose from 5 to 10).
Now, what could happen if:
whatever small to medium service or product they pay for, from a doctor’s appointment to grocery products, they pay double or half more of what it’s worth.
Would this be called a multiplier effect?
Where would an economy like this lead the next beneficiaries and the next next beneficiaries?
And let’s suppose a few more to more to a lot of companies or even a predetermined amount of companies apply this, may the result end in a growing economy of the lower or medium classes?
You are an angel of economics
Hey Mark thank you so much for sacrifice your time to teach us incompetent students. I know you are busy with your venture capitalist things plus having to lead Maverick to win the champion, thanks again
Your video Helped alot in my assignment.😊😃
This is why I think a ubi would be a fanominal idea.
It could help so many people out of poverity, and with it as a safety net people would be willing to spend more. Thuse this would increase the rate at which people exchange money for goods.
It would likely cost 3 trillion in the begining but could easly make that up and grow the over gdp in no time.
Also people would feel more secure and as such willing to spend more making are econamy & workers more productive.
u explained it all a million times better than my teacher
Im a 34 year old British man and i loved it. Not studying for anything, just a thirst for knowledge
When I’m in class I don’t understand a thing but once I get home and watch one of your video it makes sense. Thank you for saving my gpa lol
IM SO GLAD YOU POSTED THIS BC I HAVE A TEST TMR
+Mizuki Tokisaki Good luck
What about investing? Can't you take the money you use and invest it instead of just saving/spending? Thanks for the videos, by the way, I love them.
Hey Jacob! Where does the government take the money to spend more from? Suppose it is a sound government with zero deficit nor surplus. How would increase spending? Would it raise taxes? What if the MPS is 0 (like in inflationary countries, where savings lose their value rapidly), does that mean that the government spending is multiplied to the infinity? That doesn't sound realistic. For what I see this only means that money and spending moves more rapidly, but I don't see any wealth creation around this... in fact, looks very risky on an inflation point of view. Money spent from the government in goods and services that were only bought for the sake of increasing spending, are goods and services that will not be available for the private sector, who would have voluntarily buy them for their genuine sake (for consumption or for investment).