Nice video, although I would like to comment one thing. On average, wages have gone up, yes. But the inflation adjusted wages of the lower percentiles (25th, to a lesser extent even up to 50th) have stayed quite stagnant since the 70's, hence the risen income inequality. In simpler words: richer half of the US can agree 100% with the video. Poorer half may say "lol my ages haven't gone up" and be correct. So, on average wages have gone up, but for the poorer half they've stayed about the same (inflation-adjusted).
@@carstereobandits Also should have explained the CPI is a complete lie to begin with, and is a way to tinker the stats to create a palatable number for inflation.
hmm... wages have gone up on average by more than prices?... so are we averaging the ridiculous amount of money "earned" by the 1% along with all the myriad barely-scraping-by incomes of so many others in this country?
CPI is not a good measure for inflation. Those data are not correct and not available for public to validate. In 2021 housing is up 15%, Car price up 20%, Grocery up 20%, food at restaurant is more expensive, Cost of living is up in every city, Stocks is up, bitcoin is up, gold is up, gas is up; then fed reports 2% inflation. Average inflation in the US has been around 10% and much higher this year. Affordability and real GDP per person is falling for decades. That's why, every other country seems to be catching up to the US economy.
I know a "Principles" video is not the place to discuss it, so I don't fault you, but people should be aware that after the Reagan admnistration, much of the drop in inflation can actually be attribited to changes in CPI reporting/weighting practices - the real rate of inflation in being disguised and misreported.
Top 3 inflation cases (Zimbabwe is my home country): 1. Hungary (1946) __prices took 5-9 hrs to double 2.Zimbabwe (2008) __15hrs to double 3. Germany (1923)____24hrs to double
It only measure standard basket of all the essentials and not the everything but it must include number of smiles and number of tears otherwise it mean nothing if rich while people crying and bleeding and eat noodle as happiness
Yes wages increased for some (trickle down) 2,000% to 10,000% and more in some cases, whilst same time rise of 'working poor : Invisible America' (David K Shipler), doing multiple casual low-income subsistence work. Ergo Trump cancelling TPP negotiations, to add that was not included, realising that this expedited short video is not wanting to discombobulate those wanting to know economics. Is that not fudging the figures, that gave rise to Donald J Trump? In full view of the world, is my two bob worth, in these money is root of all happiness times.
Test yourself with our interactive practice questions: mru.io/o9n
Im from Zimbabwe, once a trillionare😂😂
How was it? Were you able to buy food with it? I am really curious
This is my best channel. I learned alot from you videos. 100% better than my university. I respect you and salute.✋
Nice video, although I would like to comment one thing. On average, wages have gone up, yes. But the inflation adjusted wages of the lower percentiles (25th, to a lesser extent even up to 50th) have stayed quite stagnant since the 70's, hence the risen income inequality. In simpler words: richer half of the US can agree 100% with the video. Poorer half may say "lol my ages haven't gone up" and be correct. So, on average wages have gone up, but for the poorer half they've stayed about the same (inflation-adjusted).
That really should have been explained in the vid.
yeah I found that comment immensely misleading; any working economist will be well aware that real wages have stagnated since the '70s
@@carstereobandits Also should have explained the CPI is a complete lie to begin with, and is a way to tinker the stats to create a palatable number for inflation.
@@carstereobandits ya instead he just looked at the camera for a second pretentiously. I could feel myself being called a moron :(
@@Jennifer-wr9si Supply and demand would have driven wage changes
"Inflation is when the average price goes up, Inflation is when the elevator goes up" - did I hear that correctly?
Same I'm confused too
th-cam.com/video/FckXnTxjfWg/w-d-xo.html
Inflation rate is void
@@shubhangiroltha2578 average price increased means elevator goes up
Prices are random in a box, the box goes up causing the prices to be random in the much higher tier, i.e. higher prices
4:11 venezuela: zimbabwe hold my beer!!
😂😂
Thank you for supporting the knowledge and the philosophy of economics
@1:43 You can see that particular chart if you go to Edit Graph and select CPI for all urban consumers from the dropdown.
I wish you were my teacher back when I was still in school.
incredible video !!!
INCREDIBLE VIDEO
@@serenak3012 INCREDIBLE
Explosive content 💯
So the inflation rate is the rate of change of the consumer price index? Like the derivative or slope of prices?
Zimbabwe is going back to that situation
Hey, great videos! Thanks so much for your work =)
2:26 no they have not, we are in a period of stagflation.
We are talking about pre-inflation numbers, watch the video and turn on your comprehension skill
That's not what stagflation means... Stagflation = high unemployment + inflation. You can have low productivity/wage growth and not have stagflation
Is it a problem that the "basket of goods" is constantly changing?
hmm... wages have gone up on average by more than prices?... so are we averaging the ridiculous amount of money "earned" by the 1% along with all the myriad barely-scraping-by incomes of so many others in this country?
Love this! Though I'm not an economist I'm learning!
instablaster...
CPI is not a good measure for inflation. Those data are not correct and not available for public to validate. In 2021 housing is up 15%, Car price up 20%, Grocery up 20%, food at restaurant is more expensive, Cost of living is up in every city, Stocks is up, bitcoin is up, gold is up, gas is up; then fed reports 2% inflation. Average inflation in the US has been around 10% and much higher this year. Affordability and real GDP per person is falling for decades. That's why, every other country seems to be catching up to the US economy.
And how does PPI and Gab deflation factor in to the measurement of inflation?
very helpful, thanks!! 😅
What did the elevator represent tho
Amazing video!
I know a "Principles" video is not the place to discuss it, so I don't fault you, but people should be aware that after the Reagan admnistration, much of the drop in inflation can actually be attribited to changes in CPI reporting/weighting practices - the real rate of inflation in being disguised and misreported.
Let's compare to..... Venezuela!!!?
The video sound is pretty good, beyond my imagination
Incredible video.
:)..economics never changes, it just gets more mathematical when you want to get a masters or phd
@Marginal Revolution University - can you do a video discussing the potential relationship between Universal Basic Income and Inflation?
BRILLIANT!
very nice
you guys are amazing
Who is watching it now
Top 3 inflation cases (Zimbabwe is my home country):
1. Hungary (1946) __prices took 5-9 hrs to double
2.Zimbabwe (2008) __15hrs to double
3. Germany (1923)____24hrs to double
wages up? lol
It only measure standard basket of all the essentials and not the everything but it must include number of smiles and number of tears otherwise it mean nothing if rich while people crying and bleeding and eat noodle as happiness
who here is from econ? rosenberg whats good
please drop subtittle in the bellow of video
on the caption
2:55 / 5:22
Awesome
Yes wages increased for some (trickle down) 2,000% to 10,000% and more in some cases, whilst same time rise of 'working poor : Invisible America' (David K Shipler), doing multiple casual low-income subsistence work. Ergo Trump cancelling TPP negotiations, to add that was not included, realising that this expedited short video is not wanting to discombobulate those wanting to know economics. Is that not fudging the figures, that gave rise to Donald J Trump? In full view of the world, is my two bob worth, in these money is root of all happiness times.
I love inflation
MCOD1999 there is types of inflation buddy which one you like.?
Riya Vanishqswertuasdf
MCOD1999 mugabe? Is that you?
And venezuela inflated this year
Wow. This didn't age well. Now I understand. This is really bad.
oh fuck this helps so much
Lopez Brenda Garcia Margaret Hall William
This video did not age well in 2022
This video is boring as hell. The previous on Zimbabwe inflation was more edu entertaintional
edu entertaintional 😂 are you drunk tiger?
.
Im disliking your video because you use google