Bulk produce is several times cheaper than most people choose to believe -- especially compared to their processed, pre-packaged alternatives. (all prices approximate and in USD) Cheapest 16 oz package of hotdogs: ~$1 Cheapest hamburger patties: ~$10 for 5lb package 1lb bulk low-prestige, durable, easy-to-ship, hard-to-spoil produce (eg: carrots, sweet potatoes): ~$0.30-0.50 1lb bulk low-prestige, but high quality fruit (extra cost-reduction points if local; eg: apples in Washington State): $0.50-$1
I found it interesting that they made 2017 tax cuts seem like a bad thing but didn’t mention the increased tax income and best economy in my lifetime. I also don’t think they mention the statistics when they say “most economist” because they are leaning toward a certain bias instead of just providing both sides
@@lukerider479 I agree with you. They also didn't mention the 2017 tax reform law gave an incentive to move intellectual property to the US (FDII) and an incentive to move business to the US (by the lower corporate tax rate). Most companies didn't move business to the US as they were worried about the stability of the US tax system (and they made the correct decision as Democrats are proposing to increase the corporate rate now). They also didn't mention the US law increased taxes substantially on multinationals by taxing worldwide income. They are very biased.
@@lukerider479 increased tax revenue? It barely changed from 3.32 trillion USD in 2017 to 3.33 trillion USD in 2018 and 3.46 trillion USD in 2019 and grew, sounds like you're the one who doesn't like stats. Best economy more like Obama's economy which he inherited, and even then, the markets took a slump at the end of 2018.
@@renegade9777 so you are countering my tax growth argument by providing statics that show increasing tax growth? Got it. I love the classic inherited the previous administrations economy argument. Under Trump as I said the economy was the best of my lifetime. Lowest inflation, low gas prices, lowest unemployment, highest incomes per capita, no wars, incredible job growth and a fantastic stock market. Even if you want to some how give all the credit to someone else I don’t care it was great and he didn’t stop the train of success. You seem like an angry liberal considering the point of my post was to point out the videos producers are one sided in their presentation which is undeniable regardless of your opinions.
The gov need to expand its sources of revenue. You know like nationalizing oil, transportation, forestry, etc. All key sectors of the economy should be public corporations! Eh how bout that. It's not an expenditure problem it's a revenue problem. And also, increase the tax rate on the wealthy back to 1950s levels!
In the long run we're all dead is let's let our great grandkids figure it out. It's the same abandonment of responsibility attitude we've taken towards climate change.
Lol you missed the entire point of the video. It was pretty clearly explained why worrying about the national debt because “what about our great grandkids” is pointless. As long as all of the US debt continues to be denominated in USD which the fed can create on its own, there’s no need to be concerned about the national debt.
What fraction of politicians is realistically going to think on a scale longer than their term? It's like having a guest over and getting them to plan out your expenses for the month.
@@alex2143 damn. That’s sad but true. It’s not about serving the public to a lot of politicians. Very few are in it for the right reasons (serving the public)
@@Invizive Large multi-national companies are managed at that scale and their outlook is longer than the next two, four, or six years because they generally intend to exist longer than that. The government's ability to do the same is impacted by tens of millions of Karen type voters that have the impulse control of a five year old and want what they want now. It's not impossible. It's just political suicide because of the electorate.
ITS SO UNFAIR ON HOW THINGS HAS TURNED OUT TO BE DUE TO THE RECENT WORLD PANDEMIC THINGS HAS BEEN SO DIFFICULT WE SEE COMPLAINS HERE AND THEIR ON SOCIAL MEDIA FROM DIFFERENT PEOPLE IN DIFFERENT COUNTRIES ALL AROUND THE WORLD THE GOVERNMENT HAS LESS OR NO TIME FOR THEIR PEOPLE I THINK WE'LL SHOULD TRY TO ENGAGE IN DIFFERENT THINGS TO MAKE MONEY AND STOP HOPING ON THE ECONOMY
Yes ! For real It is very important to have different streams of income and a diversified portfolio as for me I have already invested in crypto which is very profitable and easy to gain
I feel like they could have talked about the dollar’s special position as the world’s reserve currency and how it relates to the US’ ability to “borrow” without consequences
@@DevoutSkeptic China exports to the entire globe. US sanctions will certainly not be welcome but it will be very very difficult for US to actually convince others to do the same. China is already the largest economy in PPP terms and they are rising fast. It's scary and US needs to get it's shit together quickly
Where do you live? If you are part of the EU it's not universal because you have the ECB and we have the Fed. If you have a common central bank for many countries you have fewer options. Hence the crisis in Greece. If Greece had it's own central bank it could just print money to solve its woes. The result would have probably been the loss in value of their currency vs other countries, but at least that increases exports and tourism.
@@Iffy50 not at all hahaha rio really is especially horrible, but it can be quite unsafe wherever you go... And with the current government everything is worsening 😪 it indeed is beautiful, though
I've not *read-it* ,but it seems like some "Redditors" influenced stock traders on there probably so they could raise the price to sell high. I could be wrong though. 😅
In the meme-era of 2021, it'll be forgotten by the time the episode goes to air! But it might be a fun lesson in the perils of short-selling, and how internet memes and trends can be weaponized -- even against Wall Street!
Here is the complete quote for context: "In the long run, we are all dead. Economists set themselves too easy, too useless a task if, in tempestuous seasons, they can only tell us that when the storm is long past the ocean is flat again."
You're right; thing is, we argentinians don't have a healthy currency or economy. As long as the US keeps their economic productivity as it is... Investors would still trust and value us treasury bonds/ currency
US should absolutely not run large surpluses. People want to invest in the US. It’s a safe bet. Run deficits to pay for infrastructure and research, and the deficits pay for themselves. We only need to keep the debt payment lower than GDP growth. Trying to balance the budget is just throwing money away, which means throwing away citizen wellbeing.
@@FelipeKana1 Much less likely in US than in smaller countries. I agree that runaway inflation is just about the worst thing that can happen to a country, on par with genocide/natural disaster. But we aren't running the same kind of risk as Argentina because we're the US. The money won't dry up. Mind you I'm not saying we just spend aimlessly with impunity. I'm not pushing MMT. I just think the current paradigm is pretty much sustainable.
@@bp24964s All he suggested is keeping the debt/GDP ratio constant. *IF* we did that we would be fine. Our ratio has been going up, and fast. That's the problem.
@@Iffy50 Yeah let me just let the air out of this discussion a bit and say that despite my being pretty aggressive right now because of the recession. I also think it's clear we'll need entitlement reform at some point in the 2020s. There are a few other areas of the budget we can trim down without hurting too many people, but you won't fix the overall problem until you take a look at the entitlements. Still, we have some time to work that out.
the tax cut and jobs act caused the economy to skyrocket even further. the pandemic barely caused the market to drop. it was the bipartisan RESPONSE to the pandemic that has caused our current economic climate.
All we're destroying unblocked down for something that only affects Keynes generation. Who argued to scr😫 US our generation over . maybe we shut stop with the lock downs and consider covid Karma . and spit in Keynes faces telling him in the long Ru were all dead anyway
@@TwoCentsPBS Don't you think you should mention in the video that you are funded by Government debt(Via PBS)? That's a massive conflict of interest! You were very biased against the Austrian Economic model. You didn't explain the business cycle or supply side economics at all!
@@stringX90 Agreed. It's the general PBS/NPR style where they speak very clearly and concisely which makes you think they're being very reasonable. I've definitely seen much worse but they did not represent the opposition well.
Republicans were okay with a tax cut during an economic boom which drove the deficit up really high but now during the crisis they're worried about helping out regular Americans who are struggling now the deficit is a huge problem miraculously
@@vicepresidentmikepence889 most republicans don't buy that Biden actually won without cheating, and they refused to hear any court cases instead throwing them out on technicalities. it is also obvious they called the protests on January 6 during which a handful of people died "an insurrection" when more people died during black lives matter protests last summer and more businesses were trashed, and pelosi and kamala are on tape encouraging violent behavior in more clearly identifiable terms than trump was accused of (if you actually watched the speech live, which ended after the destruction was caused, another point missed by left wing trash media). There also is, on tape, people identifying antifa dressed as Trump people on Jan 6, but your left wing propaganda media chose to not show that or any of the 10 hour live hearings on election fraud broadcast on NTD (a source of conservative news, founded by Chinese americans who are anti China). . I'd suggest balancing your left wing mainstream media propaganda with a few sources on the right. Most conservative people do that already.
@@jrg305 Most cases were NOT lost on technicalities. A few were dismissed due to a lack of standing, but those aren't technicalities. Standing is important because only those that are directly affected can file suit. For example, the Texas v Pennsylvania suit is completely ridiculous because Texas is not directly affected by the Pennsylvania election and that's by design of the constitution where each state are free to conduct elections as they see fit (which is also rich given how it's TEXAS and everyone knows how much they love other states interfering with their state policies). From what I've seen, the lawyers failed to demonstrate they had standing due to the lack of relevant evidence which indicated they had standing in the first place. In fact, quite a few cases were thrown out due to unreliable or irrelevant evidence in addition to lack of legal standing. A few suits were also thrown out for being filed too late. This is kind of a technicality I guess? But there was sufficient time prior to the election to file suit if they wanted, and you can't just ask to change the law every time your preferred candidate lost or there would be madness every election cycle. Also from what I can tell, the ones thrown out for being filed too late also had a host of other issues wrong with it. Do lemme know if there's any suit in particular you believe was egregiously thrown out so I can take a look. Some of these suits are actually pretty amusing if you read them.
A deficit tax which politicians have to pay everytime theres a budget defecit and cutting millitary spending could probaly help get a budget that's in surplus.
I am from Guatemala. And I love your videos, even if you explain data/process from the USA (which is obvious why) however, still aid me to have a healthy and appropriate perspective on how the money works, despite the fact where you live, apply the same mindsets of how to manage the money and the good habits we all should have to avoid being in debt. All your videos are very useful. I am surprised at how can you explain and illustrate topics that are hard to explain. Keep sharing these wonderful videos!
You seemed to have missed the other half of the conversation. LOL. But you don't seem to be interested in smacking down the people that don't take austerity measures during the good times.
I think focussing on reducing waste will do more than cutting spending. By passing right to repair laws we could use our stuff longer than we can now meaning we spend less on things like computers, cars, refridgeraiters, tractors, and phones in the long run.
The issue is ppl's idea of waste is extremely subjective, the term "one's person trash is another person treasure" can apply to this scenario. One legislators might think somethings a waste of time and money while another has a vision on how that money can be used a different way
Honestly the U.S could do so much if they just cut their millitary spending by 45% and their millitary spending would still be more than Chinas. Note: peoples salary in the millitary only accounts for 23% of the defense budget so people wont have to be layed of or get a salary cut under a 45% budget cut, as for the companys who sell to the U.S government they may also want to lower their companys spending quite a bit but they could still make 100's of billions even with a 45% budget cut. Back on the topic of army peoples salary as much as I would support the world demilitarized I wouldnt mind if they cut weapon spending by x% to increase salarys and benefits for exisitng and past veterans.
Exactly. Who the hell needs $934 billion dollars (Budget for 2020 alone) just for the military??? Wtf is the US defending against anyway? Why can’t they all just talk it out like how they teach everyone in school.
You’ve obviously never looked at the government budget and it shows. Military spending is a tiny fraction of the problem. 80% of the problem is entitlement programs. If we stop enabling parasitism THAT would do “so much”
@@TheTurdballs420 I have looked at the budget before and yes social security is the most expensive thing in the budget but millitary spending still takes up 1/2 of the discretionary spending or about 1/5 of the whole budget and the U.S has defense spending more than the following 10 countries combined.
They should rectify about the part where they said that the warnings of print more money wouldn't come in inflation. A year later of this video (2022) we know that the enormous quantity of money that the Fed printed in 2020 and 2021 was catastrophic for the worth of money and the people's savings and incomes.
Ok. It’s official this is my new favorite TH-cam channel. I love how you simplify things. I have a bachelors in finance and I still find myself learning stuff from you. And I LOVE you taking the time to answer our questions.
THIS VIDEO MAKES COMPLETE SENSE...IF WE CANT PAY OUR DEBT NOW ,IT WILL BE EASIER LATER ON TO PAY OFF OUR DEBT WHEN ITS BIGGER...YES PERFECT SENSE, LIKE ADDING WATER TO A POOL IN ORDER TO DRAIN IT.
5:46 THANKS GOD THEY SAID IT! I was already having a heart attack when they mentioned at 0:50 that government works like a household for managing money! As money is fiat currency nowadays, it can be printed, distributed, collected through taxes and literally burned to get out of circulation. The USA is in a special place when it comes to it: it backs other countries currencies, so it can print money without too much worries.
Americas net international investment position went from -3 trillion in 2009 to -14 trillion in 2020.I bet this wont be a problem in the long run... Dollar is going down and current account deficit blowing up.
Fed money printer go brrrr. Multiplier effect doesnt work if it is given to billionaire / corporate money hoarders. Where that money just disappears to some tax haven
the inflation that economists are talking about isnt the same thing as the inflation that you and I feel. Their inflation is some made up BS that means nothing, our inflation hits us right in the pocket book and its way more then 2% a year. At least it sure feels like it! And our wages are far from taking care of that fact.
I would love to see a video on Modern Monetary Theory. I’ve read a lot about it but I always feel like I understand things better with your animations.
The fed does NOT directly lend money to the federal government, it purchases treasury securities from investors while the treasury issues new securities which investors purchase. This is an important distinction because it ties how much the federal government can borrow to public confidence in the US economy, rather than it just being able to print however much money it wants.
"Hey, nothing bad happened so far by increasing debt" That's really a bad argument, specially times we talk so much about sustainability and not having near sighted minds. "Hey look, we can keep cutting the trees and burning fossil fuel, nothing bad ever happened... YET". Second: yes, things have gone bad, in several places using those ideas AND in the US. Inflation? No? That doesn't exists? Four decades ago people could afford their rent from their jobs, as it was supposed to be. Now even working couples need to find roommates to make-do. The slow growth of inflation is stifling lives too, even if the economy looks ok (since everyone now has to work much more and hence "produce" much more). Edit: corrected a few autocorrect typos
Since the 80s, inflation has been at ~3% which is totally fine (the aim is to be slightly below 2%), so this was not the reason buying power is lower today. So what is the reason? Since de 70-80s the minimal wage has stagnated while productivity kept increasing. The minimal wage simply didn't follow inflation so today people are effectively paid less than they once were. In the meanwhile, US wealth concentration has skyrocketed and most new wealth produced goes to the asolute top. images.app.goo.gl/WTBENzDeUvkAwYoE7 images.app.goo.gl/9dsDXFWtm8156z8C8 en.m.wikipedia.org/wiki/Wealth_inequality_in_the_United_States
@@tiagow95 You are very very right but also that measure of inflation that you have quoted probably doesn't consider housing. The most important purchase there is. The biggest problem is, what happens when interest payments exceeds growth in gdp. What ALL of the countries need to get a handle on is reducing economic stimulus during booms even if the citizens hate them for it. Trump's first 3 years they should have been putting a dent in the debt not splurging and contributing trillions more, it gives more room for fiscal stimulus when you need it which is now.
@@soccerplayer2277 For what it's worth, all commonly used measures of consumer price inflation including housing costs as a major component. The single most common measure is probably CPI-U, which is explained in detail here: www.bls.gov/cpi/questions-and-answers.htm (see for example the response to question 10).
@@DGaryGrady Sorry to be clear I was referring to real estate. CPI considers the cost to maintain homes and rent, not the prices of the assets themselves. In fact, real estate prices are often negatively correlated to inflation because of the fed's change in policy on interest rates. Also, I don't know how well proportioned that CPI measure is, does it really capture rent effectively? Rent is down 25% where I am and inflation is still ~1%.
A ton has happened in the US over 40 years. Go look at the typical size of a rental/home in the 80s compared to now. Go look at the change in real estate interest rates in the 80s compared to now. Go look at the proliferation of women in the workplace/dual income households in the 80s compared to now. I'd say the availability of cheap debt/people's increasing comfort with a debt financed lifestyle and the stratifying effect of dual income households has way more to do with what you're talking about than the minimum wage.
@@duncansiror5033 The Nordic model. Sweeden was a highly-regulated, socialized state in the mid to late 1900s, and has since cut taxes and privatized much of their economy. Today, Sweden doesn't have a minimum wage and their economy and banking system is far less regulated than that of the United States resulting in economic prosperity. Also, I'm an Austrian. I don't believe in models or precedent. I argue for my positions as a matter of principle. I do not believe government should interfere with the economy regardless of the consequences of that intervention.
I don’t Care what fancy terms you use, spending money you don’t have is not good for the economy long term. It’s great for the short term, people have lower taxes and more social benefits, but one day the credit card bills will become due. And its morally bankrupt to make later generations pay for our irresponsibility.
Don't worry, their salary is peanuts. The real money is made after.... speaking engagements, work as lobbyists, connecting people with people in government to pass laws beneficial to businesses.
@@Iffy50 That's true, but their salaries could be used for other things. If you cut out all the rest of what you mentioned, making the Senators less influenced by corporations, then I wouldn't mind if we paid them a bit more! 😅
@@megamanx466 I would pay them 3 times what they make if we could get rid of lobbyists. Lets say that there are 1,000 people(House+Senate+random others) and they all make $150,000/year. That is only $15 million. That sounds like a lot, but it's only 5 cents a year per citizen.
I love all your vids. Wanted your to know that you guys are freaking adorable. Her with her beauty and sensibility, him with those eyes and that stache. You guys do good work. All the best to both of you.
@@andresuazo6129 , he's a scammer. People create accounts that look like the video authors and then comment on other people's comments to try to trick them. I've seen videos that have the same comment posted hundreds of times by the same scammer. TH-cam sucks at stopping these people.
Good video, but give me a break. Inflation under control? Housing going up 20% per year or more because of easy money speculation. What about the inflated stock market? These are inflated bubbles for assets, but they aren't taken into consideration for inflation. Craziness.
For much of the past 30 years I kept track of inflation as a part of my work. The usual measures of Inflation, as computed both by the Bureau of Labor Statistics and by independent researchers working for investment houses, banks, etc, are based on a basket of goods and services that includes housing costs, utilities, food, energy, etc., which doesn't seem crazy to me. It is certainly true that housing costs have risen somewhat faster than other things, but it hasn't run 20% per year except for brief period in limited areas. In fact, housing inflation has averaged only a little more than overall inflation.Here's a history of U.S. housing prices going back to the 1960s: www.in2013dollars.com/Housing/price-inflation. Common sense should make it clear that housing costs can't rise too fast before they exceed what people can possibly pay. Note also that part of the price increase comes from the fact that newer houses tend to be a lot larger (an average increase of 1000 square feet and double the space per person since 1973). For more on this see this 2014 piece from the conservative American Enterprise Institute: www.aei.org/carpe-diem/todays-new-homes-are-1000-square-feet-larger-than-in-1973-and-the-living-space-per-person-has-doubled-over-last-40-years/ The trend has largely continued since then. The interest rates on long-term corporate and government bonds are determined by supply and demand. Currently interest rates for both are historically very low, which reflects two things: (1) investors are expecting low inflation, and (2) investors have confidence that they'll get paid back; that is, they have faith in the long-term prospects for the U.S. economy. They could be wrong about one or the other, but then again, they might be right, and they have more riding on it that we TH-cam commenters do. (Edited to add links and to try to improve the wording.)
I think it’s important to know what the so called austerity people mean by crowding out investment a crucial concept that was just mentioned and not explained. The theory is that if a growing debt gets large and investors lose even some faith in the ability to pay back debt they will only loan money at a higher rate driving up interest rates in the economy. Higher interest rates lead to economic stagnation. Even if that doesn’t happen, the government takes a large amount of the total capital and the interest rate for private business goes up
as someone who advocates for the Austrian school of economic thought, Keynes actually wanted us to go back and forth between gaining and spending. we are stuck at spending money. i hate Keynesian economics, and i know the government will NEVER change it's mind unless it goes to mercantilism or socialism, but technically they aren't properly following Keynes' directions.
Imagine the US 'household' spending most of their salary on a home security system while the people in the house go hungry and grow sick but one member is super rich and doesn't share any of the goodies. That's one good way to envision things in a way people understand.
I agree that people will understand that, but household budget and national budget are very different. It's mathematically impossible for a country to pay off its debt. Also, if you have your own central bank you have a never ending credit card if you choose to use it. We've voted several times to increase our maximum debt in the last few years. Our national debt is 100% of GDP, but many countries have much higher debt to GDP ratio. Japan is around 250%.
Most of the US government goes towards federal programs like social security, Medicare and Medicaid, what the actual fuck are you talking about? Oh and that big military industrial complex you’re alluding to, both sides of the aisle get payed for it
2019 Federal Revenue - $3.5T 2019 Defense Spending - $0.69T If you mean 20% when you say most, you are correct. It's high, but it's no where near most.
@@shakysliders1689 "If you mean 20% when you say most, you are correct. It's high, but it's no where near most." What do you mean by it's nowhere near most? Do you mean defense budget relative to federal revenue? Can you name some countries that spend more than 20% of their federal revenue on defense? I'm not calling you a liar, I'm just trying to get the facts.
@@Iffy50 Original comment said "most of their salary" went to home security inferring that the US spends most of its money on defense. Most, in that sense, would be 51%. The defense budget was 20% which is no where near most of the whole federal budget.
Just print all the money and solve all the problems, there's nothing that can go wrong, right? It's not like any nation burned money for heat, as it devaluated so much.
Keynesian economics has been a massive failure, just look at Japan. Keynesian economics predicted stagflation such as that of Japan's could not be possible, but yet it happened. Spending cuts do not decrease economic production. Government spending has to be funded via taxation or the hidden tax: inflation. This taxation/inflation steals resources from other sectors of the economy that could have had more productive uses than when the government uses them. I'm disappointed in this video. I recommend anyone reading this to read Henry Hazlit's Economics in One Lesson book.
Congress, which has committees that look with a fine-tooth comb at how taxpayer money is spent by the EPA, OSHA, the FDA and FTC, the Education Department, the Labor Department, Health and Welfare, Medicare, Medicaid, NOAA, etc., (all of which agencies and departments have to submit full audits of their expenditures before getting their next year’s appropriations), has no idea, and for decades has had no idea how the Pentagon has spent already allocated funds, and thus no idea why it needs what it is asking for!
Pretty biased video. Keynes is a favorite of the left because he justifies their approach. Problem is that his ideas have also largely been abandoned by most economists these days as many of his principles just don't hold up. If we're really going to "trust the experts" then Keynes isn't really the voice we'd be listening to. Wish they would have done a more balanced episode.
All my life I heard that the US government could print money if needed, I just thought it was an old wives tale...until now. Am I understanding this correctly, if they find themselves in hot water they can just print some more money? Also, is the US the only country that can do this? or others can as well, but we never hear about this ability?
Anybody can, but it's a terrible thing to do. The more money you print and flood the economy with, the less value each dollar has. Theoretically all of those dollars have to be backed up by something substantial, so each dollar printed makes the value of each go down.
@@mae2759 Well, that is the theory, but none of it has been proven to be the case (e.g. getting off the gold standard). Capitalism requires an infinite growing economy, but the world does not have infinite resources. Thus, it is impossible to have a currency backed by something real i.e. the value money has to all be "theoretical".
It's easier than most people believe, just do beans and rice, rice and beans
They should really live like no one else so they can live and give like no one else
Only if they're sick and tired, of being sick and tired.
Bulk produce is several times cheaper than most people choose to believe -- especially compared to their processed, pre-packaged alternatives.
(all prices approximate and in USD)
Cheapest 16 oz package of hotdogs: ~$1
Cheapest hamburger patties: ~$10 for 5lb package
1lb bulk low-prestige, durable, easy-to-ship, hard-to-spoil produce (eg: carrots, sweet potatoes): ~$0.30-0.50
1lb bulk low-prestige, but high quality fruit (extra cost-reduction points if local; eg: apples in Washington State): $0.50-$1
The should put the cat on EBay and the dog on Craigslist!
Love the dave Ramsey reference!
"We haven't seen a meaningful increase in inflation." Speaking too soon, I see.
They are definitely biased and have an agenda.
I found it interesting that they made 2017 tax cuts seem like a bad thing but didn’t mention the increased tax income and best economy in my lifetime. I also don’t think they mention the statistics when they say “most economist” because they are leaning toward a certain bias instead of just providing both sides
@@lukerider479 I agree with you. They also didn't mention the 2017 tax reform law gave an incentive to move intellectual property to the US (FDII) and an incentive to move business to the US (by the lower corporate tax rate). Most companies didn't move business to the US as they were worried about the stability of the US tax system (and they made the correct decision as Democrats are proposing to increase the corporate rate now). They also didn't mention the US law increased taxes substantially on multinationals by taxing worldwide income. They are very biased.
@@lukerider479 increased tax revenue? It barely changed from 3.32 trillion USD in 2017 to 3.33 trillion USD in 2018 and 3.46 trillion USD in 2019 and grew, sounds like you're the one who doesn't like stats. Best economy more like Obama's economy which he inherited, and even then, the markets took a slump at the end of 2018.
@@renegade9777 so you are countering my tax growth argument by providing statics that show increasing tax growth? Got it.
I love the classic inherited the previous administrations economy argument. Under Trump as I said the economy was the best of my lifetime. Lowest inflation, low gas prices, lowest unemployment, highest incomes per capita, no wars, incredible job growth and a fantastic stock market. Even if you want to some how give all the credit to someone else I don’t care it was great and he didn’t stop the train of success. You seem like an angry liberal considering the point of my post was to point out the videos producers are one sided in their presentation which is undeniable regardless of your opinions.
The government needs a 2nd job to make ends meet.
Like starting war somewhere
@@cryptomike4758 don't encourage them, or they'll do it again! no more wars please smh
That means higher taxes for the taxpayer; do you think the government is going to do any physical work or anything.
They do. It’s called printing money, it’s a way to tax people without actually making them pay money
The gov need to expand its sources of revenue. You know like nationalizing oil, transportation, forestry, etc. All key sectors of the economy should be public corporations! Eh how bout that. It's not an expenditure problem it's a revenue problem. And also, increase the tax rate on the wealthy back to 1950s levels!
In the long run we're all dead is let's let our great grandkids figure it out. It's the same abandonment of responsibility attitude we've taken towards climate change.
It's rich that a Federally funded broadcaster is making/sponsoring videos which attempt to justify the Federal Government's recklessness.
Lol you missed the entire point of the video. It was pretty clearly explained why worrying about the national debt because “what about our great grandkids” is pointless. As long as all of the US debt continues to be denominated in USD which the fed can create on its own, there’s no need to be concerned about the national debt.
@@electronpusher604 EXACTLY
@@aoht06 Have you ever heard of inflation?
@@electronpusher604 Yup. Once you realize how inflation works you’ll realize why it isn’t exactly directly correlated to the national debt
Wait does the average American have a balanced budget🤔
Hey! Good to see you popping up on all of my favorite finance channels
Average? Maybe not. Personally, I have a surplus.
Mine isn't. I save and invest way to much.
is the average American in 20 trillion dollars of debt?
I do! The trick is to not get married and have any kids!
What fraction of politicians is realistically going to think on a scale longer than their term? It's like having a guest over and getting them to plan out your expenses for the month.
And that's the problem. Governments should have long term vision, but people don't get elected for long term vision.
@@alex2143 damn. That’s sad but true. It’s not about serving the public to a lot of politicians. Very few are in it for the right reasons (serving the public)
@@kl-tj4nx The public is the reason it works that way. The public doesn't have the maturity to want long term vision.
@@BTrain-is8ch nobody has the ability to manage on such scale with long term goals while keeping everyone engaged - it's impossible.
@@Invizive Large multi-national companies are managed at that scale and their outlook is longer than the next two, four, or six years because they generally intend to exist longer than that.
The government's ability to do the same is impacted by tens of millions of Karen type voters that have the impulse control of a five year old and want what they want now. It's not impossible. It's just political suicide because of the electorate.
“We haven’t seen a meaningful increase in inflation” oh boy how things change quick
Yeah but that isn’t the result of keynesian st8mukus. That’s because if the thing the kenseyan stimulus is in response to.
@@greg5892how do you know that the stimulus didn’t prolong it?
ITS SO UNFAIR ON HOW THINGS HAS TURNED OUT TO BE DUE TO THE RECENT WORLD PANDEMIC THINGS HAS BEEN SO DIFFICULT
WE SEE COMPLAINS HERE AND THEIR ON SOCIAL MEDIA FROM DIFFERENT PEOPLE IN DIFFERENT COUNTRIES ALL AROUND THE WORLD
THE GOVERNMENT HAS LESS OR NO TIME FOR THEIR PEOPLE
I THINK WE'LL SHOULD TRY TO ENGAGE IN DIFFERENT THINGS TO MAKE MONEY AND STOP HOPING ON THE ECONOMY
Yes ! For real It is very important to have different streams of income and a diversified portfolio as for me I have already invested in crypto which is very profitable and easy to gain
Exactly I'm also happy to start investing too than to have my money sleeping in bank
Stocks are good but we have to make the right plans
Yes Stocks are good but they are alot of businesses more convenient than stocks
That’s the fact well I only invested in stocks and will love to know a better investment too
I feel like they could have talked about the dollar’s special position as the world’s reserve currency and how it relates to the US’ ability to “borrow” without consequences
Yeah or how long we can keep that up when China keeps growing by the day while we bicker amongst each other blind to the dragon rising from the cave
This is the answer.
@@marcoalejandro1407 Because China needs us to buy their shit.
@@marcoalejandro1407 lol you are clearly delusional. The Chinese will end up consuming what they produce themselves.
@@DevoutSkeptic China exports to the entire globe. US sanctions will certainly not be welcome but it will be very very difficult for US to actually convince others to do the same.
China is already the largest economy in PPP terms and they are rising fast. It's scary and US needs to get it's shit together quickly
Really nice when you guys talk about economics instead of finance! Im not even from the us, but the content is universal
Economics is just large scale personal finance
Where do you live? If you are part of the EU it's not universal because you have the ECB and we have the Fed. If you have a common central bank for many countries you have fewer options. Hence the crisis in Greece. If Greece had it's own central bank it could just print money to solve its woes. The result would have probably been the loss in value of their currency vs other countries, but at least that increases exports and tourism.
@@Iffy50 I'm Brazilian! Our coin is just ours, don't worry 😁😆
@@gabrielchaimowicz329 Your country is beautiful. Is the majority of the country safe if you get away from Rio?
@@Iffy50 not at all hahaha rio really is especially horrible, but it can be quite unsafe wherever you go... And with the current government everything is worsening 😪 it indeed is beautiful, though
Can you guys do a video on this whole Gamestop thing?
💯
I've not *read-it* ,but it seems like some "Redditors" influenced stock traders on there probably so they could raise the price to sell high. I could be wrong though. 😅
A few big fish seen a way to make a quick sure buck a bunch of smaller fish said nah don’t think so.
GME has all the headlines. There are already numerous videos and articles that cover the topic. Graham Stephan uploaded a pretty decent video today.
In the meme-era of 2021, it'll be forgotten by the time the episode goes to air! But it might be a fun lesson in the perils of short-selling, and how internet memes and trends can be weaponized -- even against Wall Street!
6:51 Well this aged well. Didn’t it?
Here is the complete quote for context: "In the long run, we are all dead. Economists set themselves too easy, too useless a task if, in tempestuous seasons, they can only tell us that when the storm is long past the ocean is flat again."
This topic has interested me for so long. Thank you for making a video on it!
US too, thanks!
Here in Argentina we were printing money and giving it to people for decades now...and here we are. Sooo, be carefull.
Shut up, your making too much sense. We Americans don't like logic or reality we only like positive thinking and fairytales.🙂
You're right; thing is, we argentinians don't have a healthy currency or economy.
As long as the US keeps their economic productivity as it is... Investors would still trust and value us treasury bonds/ currency
The video needs to say, the printing money hasn't made an effect YET.
@@fedorrussel3810 the thing is, you have to pay the interests for the debt. So your spending is increasing faster with the time.
Yea good thing America isn’t Argentina
6:59 7% inflation now. It's not even on your scale, Ma'am.
US should absolutely not run large surpluses. People want to invest in the US. It’s a safe bet. Run deficits to pay for infrastructure and research, and the deficits pay for themselves. We only need to keep the debt payment lower than GDP growth. Trying to balance the budget is just throwing money away, which means throwing away citizen wellbeing.
Never had to deal with inflation, do you?
@@FelipeKana1 Much less likely in US than in smaller countries. I agree that runaway inflation is just about the worst thing that can happen to a country, on par with genocide/natural disaster. But we aren't running the same kind of risk as Argentina because we're the US. The money won't dry up. Mind you I'm not saying we just spend aimlessly with impunity. I'm not pushing MMT. I just think the current paradigm is pretty much sustainable.
@@bp24964s All he suggested is keeping the debt/GDP ratio constant. *IF* we did that we would be fine. Our ratio has been going up, and fast. That's the problem.
@@Iffy50 Yeah let me just let the air out of this discussion a bit and say that despite my being pretty aggressive right now because of the recession. I also think it's clear we'll need entitlement reform at some point in the 2020s. There are a few other areas of the budget we can trim down without hurting too many people, but you won't fix the overall problem until you take a look at the entitlements. Still, we have some time to work that out.
the tax cut and jobs act caused the economy to skyrocket even further. the pandemic barely caused the market to drop. it was the bipartisan RESPONSE to the pandemic that has caused our current economic climate.
It’s really amazing how with every argument for one side, you would immediately counter it remaining very unbiased
All we're destroying unblocked down for something that only affects Keynes generation. Who argued to scr😫 US our generation over . maybe we shut stop with the lock downs and consider covid Karma . and spit in Keynes faces telling him in the long Ru were all dead anyway
We try our best. We do have opinions, and don't hide that, but it's still important to educate on the popular sides of a debate.
I don't feel like the counter argument was thoroughly represented here.
@@TwoCentsPBS Don't you think you should mention in the video that you are funded by Government debt(Via PBS)? That's a massive conflict of interest! You were very biased against the Austrian Economic model. You didn't explain the business cycle or supply side economics at all!
@@stringX90 Agreed. It's the general PBS/NPR style where they speak very clearly and concisely which makes you think they're being very reasonable. I've definitely seen much worse but they did not represent the opposition well.
I read the title and laughed a little bit.
I read the title and laughed a lot
Now that we have a Democrat as president, Republicans will magically be concerned about the debt, even though the debt exploded, under trump
Republicans were okay with a tax cut during an economic boom which drove the deficit up really high but now during the crisis they're worried about helping out regular Americans who are struggling now the deficit is a huge problem miraculously
@@vicepresidentmikepence889 most republicans don't buy that Biden actually won without cheating, and they refused to hear any court cases instead throwing them out on technicalities. it is also obvious they called the protests on January 6 during which a handful of people died "an insurrection" when more people died during black lives matter protests last summer and more businesses were trashed, and pelosi and kamala are on tape encouraging violent behavior in more clearly identifiable terms than trump was accused of (if you actually watched the speech live, which ended after the destruction was caused, another point missed by left wing trash media). There also is, on tape, people identifying antifa dressed as Trump people on Jan 6, but your left wing propaganda media chose to not show that or any of the 10 hour live hearings on election fraud broadcast on NTD (a source of conservative news, founded by Chinese americans who are anti China).
. I'd suggest balancing your left wing mainstream media propaganda with a few sources on the right. Most conservative people do that already.
@@jrg305 Most cases were NOT lost on technicalities. A few were dismissed due to a lack of standing, but those aren't technicalities.
Standing is important because only those that are directly affected can file suit. For example, the Texas v Pennsylvania suit is completely ridiculous because Texas is not directly affected by the Pennsylvania election and that's by design of the constitution where each state are free to conduct elections as they see fit (which is also rich given how it's TEXAS and everyone knows how much they love other states interfering with their state policies). From what I've seen, the lawyers failed to demonstrate they had standing due to the lack of relevant evidence which indicated they had standing in the first place. In fact, quite a few cases were thrown out due to unreliable or irrelevant evidence in addition to lack of legal standing.
A few suits were also thrown out for being filed too late. This is kind of a technicality I guess? But there was sufficient time prior to the election to file suit if they wanted, and you can't just ask to change the law every time your preferred candidate lost or there would be madness every election cycle. Also from what I can tell, the ones thrown out for being filed too late also had a host of other issues wrong with it.
Do lemme know if there's any suit in particular you believe was egregiously thrown out so I can take a look. Some of these suits are actually pretty amusing if you read them.
I really liked the explanation and utterly loved the Q&A finale 😂
No high inflation? This aged well.
A deficit tax which politicians have to pay everytime theres a budget defecit and cutting millitary spending could probaly help get a budget that's in surplus.
Bees ask wasps to regulate the access to the honey pot.
@@Invizive yeah only a handful of politicians would actually agree to this 😂.
If we have more money than everyone else why in hell do we need to borrow? Cut spending. Non-sustainable.
I am from Guatemala. And I love your videos, even if you explain data/process from the USA (which is obvious why) however, still aid me to have a healthy and appropriate perspective on how the money works, despite the fact where you live, apply the same mindsets of how to manage the money and the good habits we all should have to avoid being in debt. All your videos are very useful. I am surprised at how can you explain and illustrate topics that are hard to explain. Keep sharing these wonderful videos!
Best channel on youtube smacking down the deficit hawks
You seemed to have missed the other half of the conversation. LOL. But you don't seem to be interested in smacking down the people that don't take austerity measures during the good times.
I think focussing on reducing waste will do more than cutting spending. By passing right to repair laws we could use our stuff longer than we can now meaning we spend less on things like computers, cars, refridgeraiters, tractors, and phones in the long run.
The issue is ppl's idea of waste is extremely subjective, the term "one's person trash is another person treasure" can apply to this scenario. One legislators might think somethings a waste of time and money while another has a vision on how that money can be used a different way
I love the QA sections at the end of each video, but can you give a brief reminder as to what the previous video was about?
"we haven't had a major inflation", 6 months later gas is $4 a gallon and the biggest inflation rate since 1979.
Gas was $4 a gallon when Bush was president.
Isn't that the whole reason why we invest so heavily on our military??? So we wouldn't worry about balancing or paying back debt????🤔
That's an interesting way of looking at it. You don't have to worry about debt if your creditors are all dea...........I mean, liberated
Honestly the U.S could do so much if they just cut their millitary spending by 45% and their millitary spending would still be more than Chinas.
Note: peoples salary in the millitary only accounts for 23% of the defense budget so people wont have to be layed of or get a salary cut under a 45% budget cut, as for the companys who sell to the U.S government they may also want to lower their companys spending quite a bit but they could still make 100's of billions even with a 45% budget cut. Back on the topic of army peoples salary as much as I would support the world demilitarized I wouldnt mind if they cut weapon spending by x% to increase salarys and benefits for exisitng and past veterans.
Exactly. Who the hell needs $934 billion dollars (Budget for 2020 alone) just for the military??? Wtf is the US defending against anyway? Why can’t they all just talk it out like how they teach everyone in school.
Proposing this is a political suicide even before the idea is formally considered. The establishment gets a share of these fat stacks.
You’ve obviously never looked at the government budget and it shows. Military spending is a tiny fraction of the problem. 80% of the problem is entitlement programs. If we stop enabling parasitism THAT would do “so much”
@@TheTurdballs420 if we stop trusting a small number of people with any forcible distribution of wealth that is
@@TheTurdballs420 I have looked at the budget before and yes social security is the most expensive thing in the budget but millitary spending still takes up 1/2 of the discretionary spending or about 1/5 of the whole budget and the U.S has defense spending more than the following 10 countries combined.
They should rectify about the part where they said that the warnings of print more money wouldn't come in inflation. A year later of this video (2022) we know that the enormous quantity of money that the Fed printed in 2020 and 2021 was catastrophic for the worth of money and the people's savings and incomes.
Massive congrats on 500k! Been watching for a while and have learned a lot!
Woah woah woah, whatcha mean balance the budget?! What are you trying to do, kill the party?! Keep that money printer going! Brrrrrrr
Ok. It’s official this is my new favorite TH-cam channel. I love how you simplify things. I have a bachelors in finance and I still find myself learning stuff from you.
And I LOVE you taking the time to answer our questions.
@Two Cents I do!
THIS VIDEO MAKES COMPLETE SENSE...IF WE CANT PAY OUR DEBT NOW ,IT WILL BE EASIER LATER ON TO PAY OFF OUR DEBT WHEN ITS BIGGER...YES PERFECT SENSE, LIKE ADDING WATER TO A POOL IN ORDER TO DRAIN IT.
Two Cents is one of my favorite TH-cam channels!!
5:46 THANKS GOD THEY SAID IT! I was already having a heart attack when they mentioned at 0:50 that government works like a household for managing money!
As money is fiat currency nowadays, it can be printed, distributed, collected through taxes and literally burned to get out of circulation.
The USA is in a special place when it comes to it: it backs other countries currencies, so it can print money without too much worries.
Most of the cares act DID NOT go to “the American people,” it went to CORPORATIONS. Come on guys. You know that.
Republicans would've shut it down if corporations weren't protected
@@5qw1rl yup, too true. And they’ve gotten even more psycho with the new house republicans this congress.
1930's economist: in the long run we're all dead!
2010s youth: yeah thanks for kicking that can to us...
Americas net international investment position went from -3 trillion in 2009 to -14 trillion in 2020.I bet this wont be a problem in the long run...
Dollar is going down and current account deficit blowing up.
Fed money printer go brrrr.
Multiplier effect doesnt work if it is given to billionaire / corporate money hoarders. Where that money just disappears to some tax haven
"we haven't seen meaningful inflation" um housing, health care, tuition, rent.
the inflation that economists are talking about isnt the same thing as the inflation that you and I feel. Their inflation is some made up BS that means nothing, our inflation hits us right in the pocket book and its way more then 2% a year. At least it sure feels like it! And our wages are far from taking care of that fact.
Does that actually count though? All of those things are outpacing inflation rather than being a result of inflation itself
That's not inflation, that's price gouging from GREED.
That's not inflation, that's price gouging from GREED.
The keyword there is "meaningful"
The prices are inflating, yes, but are they meaningful?
Thank you for posting about topics that aren’t educationally brought to light. Cheers!
I would love to see a video on Modern Monetary Theory. I’ve read a lot about it but I always feel like I understand things better with your animations.
I'm wondering how this video is not removed yet 😂😂
The fed does NOT directly lend money to the federal government, it purchases treasury securities from investors while the treasury issues new securities which investors purchase. This is an important distinction because it ties how much the federal government can borrow to public confidence in the US economy, rather than it just being able to print however much money it wants.
Yeah but effectively its no different. The main reason we do this investor thing is to control interest rates.
I'm pretty sure the "average" American household doesn't have a budget.
"Hey, nothing bad happened so far by increasing debt"
That's really a bad argument, specially times we talk so much about sustainability and not having near sighted minds.
"Hey look, we can keep cutting the trees and burning fossil fuel, nothing bad ever happened... YET".
Second: yes, things have gone bad, in several places using those ideas AND in the US. Inflation? No? That doesn't exists? Four decades ago people could afford their rent from their jobs, as it was supposed to be. Now even working couples need to find roommates to make-do. The slow growth of inflation is stifling lives too, even if the economy looks ok (since everyone now has to work much more and hence "produce" much more).
Edit: corrected a few autocorrect typos
Since the 80s, inflation has been at ~3% which is totally fine (the aim is to be slightly below 2%), so this was not the reason buying power is lower today.
So what is the reason?
Since de 70-80s the minimal wage has stagnated while productivity kept increasing. The minimal wage simply didn't follow inflation so today people are effectively paid less than they once were.
In the meanwhile, US wealth concentration has skyrocketed and most new wealth produced goes to the asolute top.
images.app.goo.gl/WTBENzDeUvkAwYoE7
images.app.goo.gl/9dsDXFWtm8156z8C8
en.m.wikipedia.org/wiki/Wealth_inequality_in_the_United_States
@@tiagow95 You are very very right but also that measure of inflation that you have quoted probably doesn't consider housing. The most important purchase there is.
The biggest problem is, what happens when interest payments exceeds growth in gdp. What ALL of the countries need to get a handle on is reducing economic stimulus during booms even if the citizens hate them for it. Trump's first 3 years they should have been putting a dent in the debt not splurging and contributing trillions more, it gives more room for fiscal stimulus when you need it which is now.
@@soccerplayer2277 For what it's worth, all commonly used measures of consumer price inflation including housing costs as a major component. The single most common measure is probably CPI-U, which is explained in detail here: www.bls.gov/cpi/questions-and-answers.htm (see for example the response to question 10).
@@DGaryGrady Sorry to be clear I was referring to real estate. CPI considers the cost to maintain homes and rent, not the prices of the assets themselves. In fact, real estate prices are often negatively correlated to inflation because of the fed's change in policy on interest rates. Also, I don't know how well proportioned that CPI measure is, does it really capture rent effectively? Rent is down 25% where I am and inflation is still ~1%.
A ton has happened in the US over 40 years. Go look at the typical size of a rental/home in the 80s compared to now. Go look at the change in real estate interest rates in the 80s compared to now. Go look at the proliferation of women in the workplace/dual income households in the 80s compared to now.
I'd say the availability of cheap debt/people's increasing comfort with a debt financed lifestyle and the stratifying effect of dual income households has way more to do with what you're talking about than the minimum wage.
No meaningful inflation? Not in the market for a house huh?
this has aged well lol
That's why you don't just decrease spending. You also cut taxes and privatize so the private sector can drive economic growth in place of the public.
What precedent are you going by?
@@duncansiror5033 The Nordic model. Sweeden was a highly-regulated, socialized state in the mid to late 1900s, and has since cut taxes and privatized much of their economy. Today, Sweden doesn't have a minimum wage and their economy and banking system is far less regulated than that of the United States resulting in economic prosperity. Also, I'm an Austrian. I don't believe in models or precedent. I argue for my positions as a matter of principle. I do not believe government should interfere with the economy regardless of the consequences of that intervention.
Or at least tie entitlements to % revenue or at most % GDP
@@JacobAnawalt Agreed.
Massive congratulations on the 500K subs! Couldn't be more deserving. I'm looking forward to more videos already!
Kudos to the artists who work for TwoCents! Ty for addressing this subject, I learned a lot of new things.
I just want corporations to learn to budget and stop getting bailed out.
Just let them die
Exactly!
I don’t Care what fancy terms you use, spending money you don’t have is not good for the economy long term. It’s great for the short term, people have lower taxes and more social benefits, but one day the credit card bills will become due. And its morally bankrupt to make later generations pay for our irresponsibility.
Please, tell me how the printing of new dollars affects countries with large USD reserves.
In a couple years they will lose a bunch of its worth
Congratulations on getting to 500K subscribers!
Would love a video on how senate and congress set their own salaries. It seems strange to me that they vote on their own raises and salaries.
Whole-heartedly agree! 😑
Don't worry, their salary is peanuts. The real money is made after.... speaking engagements, work as lobbyists, connecting people with people in government to pass laws beneficial to businesses.
@@Iffy50 That's true, but their salaries could be used for other things.
If you cut out all the rest of what you mentioned, making the Senators less influenced by corporations, then I wouldn't mind if we paid them a bit more! 😅
@@megamanx466 I would pay them 3 times what they make if we could get rid of lobbyists. Lets say that there are 1,000 people(House+Senate+random others) and they all make $150,000/year. That is only $15 million. That sounds like a lot, but it's only 5 cents a year per citizen.
@@Iffy50 Yes good point. When politicians listen to the money more than the people, that's never a good thing. 😒
Thought your video usually focusing US related matters ,but i always learned something from your videos !
From Malaysia
I love all your vids. Wanted your to know that you guys are freaking adorable. Her with her beauty and sensibility, him with those eyes and that stache.
You guys do good work. All the best to both of you.
So glad you are back.
You guys should have interviewed Stephanie Kelton for this video.
@Two Cents Bitcoin? No, I mean in reference to the “deficit myth” and many of the other MMT economists.
@@andresuazo6129 , he's a scammer. People create accounts that look like the video authors and then comment on other people's comments to try to trick them. I've seen videos that have the same comment posted hundreds of times by the same scammer. TH-cam sucks at stopping these people.
@@AlecMuller ah, makes sense now because that was totally irrelevant.
6:57 "Despite the FED creating Trillions of new dollars, we haven't seen a meaningful increase in inflation". That did not age well...
This money printing is not a good Idea.
Reseach for:
The Cantillon Effect: Because of Inflation, We’re Financing the Financiers
This video isn’t going to age well as inflation is getting worse and worse.
This video aged like milk HAHAHA
So, solution is to cut taxes and slash spending. Increase economic activity, raising revenue, closing the deficit over time.
Good video, but give me a break. Inflation under control? Housing going up 20% per year or more because of easy money speculation. What about the inflated stock market? These are inflated bubbles for assets, but they aren't taken into consideration for inflation. Craziness.
That’s not the inflation they’re talking about...
For much of the past 30 years I kept track of inflation as a part of my work. The usual measures of Inflation, as computed both by the Bureau of Labor Statistics and by independent researchers working for investment houses, banks, etc, are based on a basket of goods and services that includes housing costs, utilities, food, energy, etc., which doesn't seem crazy to me.
It is certainly true that housing costs have risen somewhat faster than other things, but it hasn't run 20% per year except for brief period in limited areas. In fact, housing inflation has averaged only a little more than overall inflation.Here's a history of U.S. housing prices going back to the 1960s: www.in2013dollars.com/Housing/price-inflation. Common sense should make it clear that housing costs can't rise too fast before they exceed what people can possibly pay. Note also that part of the price increase comes from the fact that newer houses tend to be a lot larger (an average increase of 1000 square feet and double the space per person since 1973). For more on this see this 2014 piece from the conservative American Enterprise Institute: www.aei.org/carpe-diem/todays-new-homes-are-1000-square-feet-larger-than-in-1973-and-the-living-space-per-person-has-doubled-over-last-40-years/ The trend has largely continued since then.
The interest rates on long-term corporate and government bonds are determined by supply and demand. Currently interest rates for both are historically very low, which reflects two things: (1) investors are expecting low inflation, and (2) investors have confidence that they'll get paid back; that is, they have faith in the long-term prospects for the U.S. economy. They could be wrong about one or the other, but then again, they might be right, and they have more riding on it that we TH-cam commenters do.
(Edited to add links and to try to improve the wording.)
@@BadHombreDaniel oh yeah they're talking about the continually adjusted franken-numbers for inflation the government puts out. Apologies.
Best channel! You have both taught me so much!♥️
I think it’s important to know what the so called austerity people mean by crowding out investment a crucial concept that was just mentioned and not explained. The theory is that if a growing debt gets large and investors lose even some faith in the ability to pay back debt they will only loan money at a higher rate driving up interest rates in the economy. Higher interest rates lead to economic stagnation. Even if that doesn’t happen, the government takes a large amount of the total capital and the interest rate for private business goes up
Thanks for answering my question from the last video, super helpful!
This video aged horribly. Back to austerity!
It's super awesome that you guys are answering questions at the end of video is now. They're so helpful and funny. 😉
Yes. After they give me more money to balance mine.
The Government should watch Two Cents for Financial Advice
Been saying it for years, America needs to switch to Hayek style economics. Keynes just makes the problem worse long term.
as someone who advocates for the Austrian school of economic thought, Keynes actually wanted us to go back and forth between gaining and spending. we are stuck at spending money. i hate Keynesian economics, and i know the government will NEVER change it's mind unless it goes to mercantilism or socialism, but technically they aren't properly following Keynes' directions.
Really like what you guys are doing - keep at it!
Imagine the US 'household' spending most of their salary on a home security system while the people in the house go hungry and grow sick but one member is super rich and doesn't share any of the goodies. That's one good way to envision things in a way people understand.
I agree that people will understand that, but household budget and national budget are very different. It's mathematically impossible for a country to pay off its debt. Also, if you have your own central bank you have a never ending credit card if you choose to use it. We've voted several times to increase our maximum debt in the last few years. Our national debt is 100% of GDP, but many countries have much higher debt to GDP ratio. Japan is around 250%.
Most of the US government goes towards federal programs like social security, Medicare and Medicaid, what the actual fuck are you talking about? Oh and that big military industrial complex you’re alluding to, both sides of the aisle get payed for it
2019 Federal Revenue - $3.5T
2019 Defense Spending - $0.69T
If you mean 20% when you say most, you are correct. It's high, but it's no where near most.
@@shakysliders1689 "If you mean 20% when you say most, you are correct. It's high, but it's no where near most." What do you mean by it's nowhere near most? Do you mean defense budget relative to federal revenue? Can you name some countries that spend more than 20% of their federal revenue on defense? I'm not calling you a liar, I'm just trying to get the facts.
@@Iffy50 Original comment said "most of their salary" went to home security inferring that the US spends most of its money on defense. Most, in that sense, would be 51%. The defense budget was 20% which is no where near most of the whole federal budget.
Just print all the money and solve all the problems, there's nothing that can go wrong, right? It's not like any nation burned money for heat, as it devaluated so much.
Keynes generation . maybe should stop with the lock downs and consider covid Karma how pacific it is
You haven't noticed inflation? Shopped for groceries lately? bought a house? financial assets?
Service payments increase geometrically, which means in the long term the bulk of public wealth will just be used to pay INTEREST on debts.
An organization that receives federal dollars taken from the taxpayer advocates for Keynesian economics. Hmm, I wonder why that is?
Excellent point!
This didn't age well...
Keynesian economics has been a massive failure, just look at Japan. Keynesian economics predicted stagflation such as that of Japan's could not be possible, but yet it happened. Spending cuts do not decrease economic production. Government spending has to be funded via taxation or the hidden tax: inflation. This taxation/inflation steals resources from other sectors of the economy that could have had more productive uses than when the government uses them. I'm disappointed in this video. I recommend anyone reading this to read Henry Hazlit's Economics in One Lesson book.
Great thanks 2cents and PBS.
Short answer: Yes
Long answer: Yes
Thank you for explaining why Reaganomics doesn’t work
Philip looks great on a fitted shirt. Embrace your size, boys!
@Two Cents yes!
Congress, which has committees that look with a fine-tooth comb at how taxpayer money is spent by the EPA, OSHA, the FDA and FTC, the Education Department, the Labor Department, Health and Welfare, Medicare, Medicaid, NOAA, etc., (all of which agencies and departments have to submit full audits of their expenditures before getting their next year’s appropriations), has no idea, and for decades has had no idea how the Pentagon has spent already allocated funds, and thus no idea why it needs what it is asking for!
Keynes' ideas have proven to have terrible results
Love these videos! Congrats on 500k subscribers.
Brought to you by PBS. Nuff said.
Congrats on the subscribers! You guys rock!
Pretty biased video. Keynes is a favorite of the left because he justifies their approach. Problem is that his ideas have also largely been abandoned by most economists these days as many of his principles just don't hold up. If we're really going to "trust the experts" then Keynes isn't really the voice we'd be listening to. Wish they would have done a more balanced episode.
I love your videos, congratulations on the new baby!
If you see this, I was here
We see you, u are eternal.
I am blind so goodbye
Ohh reallyyyyy
All my life I heard that the US government could print money if needed, I just thought it was an old wives tale...until now. Am I understanding this correctly, if they find themselves in hot water they can just print some more money? Also, is the US the only country that can do this? or others can as well, but we never hear about this ability?
Anybody can, but it's a terrible thing to do. The more money you print and flood the economy with, the less value each dollar has. Theoretically all of those dollars have to be backed up by something substantial, so each dollar printed makes the value of each go down.
@@mae2759 Well, that is the theory, but none of it has been proven to be the case (e.g. getting off the gold standard). Capitalism requires an infinite growing economy, but the world does not have infinite resources. Thus, it is impossible to have a currency backed by something real i.e. the value money has to all be "theoretical".
Why worry about cryptocurrency quotes if there is FBC14 algorithm?
Do you trade alone
great video! congrats on 500k+ subs!