Thanks for the video. Just one thing to add: growth is tightly linked to environmental degradation, so we will have to think of different strategies for well-being than to keep pushing 'growth button'. ;)
I randomly questioned what people always meant by "this will help grow the economy" and I never understood how it would or what they meant by that and this filled that gap in my understanding within a few minutes, good video.
The only thing we lose here are resources, which is why we need sustainable development. Money is meaningless without sufficient resources, hence scarcity will occur.
Scarce resources of what? Wood? Plant more trees. Iron? We’ve barely tapped anything in just the crust The myth of scarce resources is for authoritarians to control us in what they deem “sustainable” when really there is no sustainability problem to be had
This was fine until we got to the cynicism about politicians. Political institutions are also actors in an economy, and some investments are best handled on a collective level.
cause the supply is controlled 6.25 bitcoin per 10 minute which is the time to generate a block and not mass printed like fiat currencies. and also it halves every 4 year , so 2024 , it will be only 3.25 bitcoins per block and so on bitcoin supply are limited. it capped to 21M , 19 million has been mined and 8 million are lost
This explanation suits to economies that are internally dependent, I want to know more about how does economically grow through external factors which isn’t explained in this video
How do you counter the next statement: "But that (liberating the economy from state regulations) would mean that the private sector could fire employees at will without consequence. People wouldn't be able to get a dismissal compensation after they get fired."
It's unsustainable if people have jobs without being able to add value, it risks whole companies. They should have the chance to work where they are needed.
The video comes off as very anti-socialist and extremely pro-capitalist, even if both systems can work very well A planned economy, following the same principle, can make everything work as well, perhaps even better than a laissez-faire Economic growth is possible only when you start regulating how much people can abuse the work of others (minimum wage, for example, makes a better economy over time, as we can see from history: after the plague in the 1348, the economy became much better because people started getting paid more and could buy more) Without regulations we'd go back to a very simple self sustaining economy like in medieval times
This is a GREAT animated explanation of how the economy works and all the mechanics of it. NOW we need a new animation on how the current COVID19 has collapsed the economy world wide, the mechanics of this are similar, but the ingredients to this are much different than before, this is an unprecedented dilemma we are in, and a much needed explanation would be great for all to view.
Simple, for this online shopping cannot be a things, this video is talking about about trading (buy, shopping ect) so for that you need to give something to someone , If u can't go outside you can't pay the shopkeeper which to you not having food ,and leads to him/her not paying "bills" or tax so that money can't go to the government to be given back to your boss (assuming u can go too work) to give back to you , im not an economist but this is how it looks to me
It made some people laugh, probably lightened up the mood of some and made them smile a little, which could actually increase productivity. See? That's value
I have hunted for a video like this for a long time. It's a great video. But I am still a little mystified. Where would the butcher have gotten the $100 from? I have always assumed that, to develop an economy that uses money, (as opposed to trade by barter), you would kick things off by issuing each individual an amount of money commensurate with the wealth or skill he or she possessed. So in this scenario, each individual would initially have a little money since they all provide valuable services, but some individuals might receive more money than others to reflect the different values of their services.
I think people focus on money because you can put numbers to things. Like in a barter economy, how do you quantify the economy? The problem is that when the government is so massive that it causes significant inflation, then the value of money becomes a bad proxy, and out intuition gets all screwed up
Humans started to become more intelligent and make new discoveries and inventions. But one person can’t do everything. To make it simple each person would have a part to play in this world in order to benefit each other. So each person would be taught how to do their part whether they chose that part or not from what the previous people have learned. That is called a job. Eventually as humans evolved and new discoveries and inventions were made which makes more jobs so all people had to get a job to contribute and benefit themselves. These jobs benefit each other. Some examples of jobs are Doctors, Police, and emergency services all help people from harm. Farmers grow food which we need to stay healthy. Entertainers like actors and comedians make us entertained. There are many more jobs which you probably know of which contribute to the world/country/society/organization/people today. That’s how this system has evolved to today.
printing money seems bad, but small amount of it actually could make economy grows. like on this video, that 100 dollars could be from the government printing money that leads economy to growing
So why don't we advise the govt to burn half the cash in circulation so as to cause deflation and give cash value .Then encourage a general doubling of production in goods ,agriculture and infrastructure so as to create real wealth . China has done this in its economy and they've grown !! . The problem nowadays is many countries hope to in by manipulation of financial instruments like cash,insurance, treasury bonds etc and while this seems to show improvement for a short while it soon proves to be unsustainable . The truth is only production adds real value .This is why the far eastern countries are the only ones still growing
Nicholas Kiwanuka there is only 1 true way to improve the economy (in my opinion) and that's using the solow model. basically what you want is a golden rule steady state. there are 3 factors to consider here: 1) depreciation of capital, 2) the rate of population growth, and 3) the rate of technology aqcuisition. to achieve a steady state we need to save enough money in the economy to replace depreciated capital, to make more capital to keep capital per person the same as the previous year and also to facilitate the rate of tech aqcuisition. now this is great because these cover the two ways to increase gdp. gdp can increase by population growth (more people = more stuff to consume) and by technology (since chopping a tree with a chain saw is much faster than a hand saw). by having a high enough savings rate we can make sure that there is enough capital to cover these. however, having the highest level of savings or the highlest level of capital will not mean you have the most optimal economy, therefore you want to use the golden rule steady state, which is basically a condition where you use steady state but you also maximise consumption. this give your economy the most optimal level of saving while keeping the people happy enough to enjoy their income. so to have the best gdp per capita you need to focus on technology aqcuisition and to have the largest economy you also want to have a hugh population growth (usually through immigration).
@@ozymandias8523 precisely. That's exactly what I have said previously. The richest countries per capita are all highly developed (technology development is very high) and consumption is maximised (this makes people happy and gives the best marginal GDP returns when allocating income/resources in an economy). Now, if you're talking about national gdp and who has the biggest economy, you actually need to increase population whilst maintaining savings rates to counteract capital depreciation, technology acquisition and population growth. All these factors combined will net you either the largest per capita income OR the largest GDP in the world. Smaller countries find it easier to acquire technology, meet the necessary savings requirements, and maximise their consumption.
The quality of life of people could be much better when everyone will get free education and opportunities to increase their skills, when the upper classes (Manufacturers) will stop exploiting the lower classes (worker class) to gain profit for their selfish reasons and selfish desires such as living a luxurious life, having a high capital just to show off (capitalism). Quality of life of people will be much better when the profit gained by a company will be equally distributed among everyone according to the skills they have. The government should have a control over everything and there should be good political leaders who will control how the wealth is distributed. There should be no class divisions based on religions, caste, financial condition and income, colour, gender. And that's called as communism and these all things are possible in communism. Worker class controls the government in first step of communism that is socialism and in second step of communism, that is pure communism, there are no class divisions.
And business is not thinking of how to short change the market for their gain. We tried supply side economics, and we saw where that got us. The market has only been stable when the market is meant to protect the laborer. You can only bleed so much from a stone before the market collapses. You can't be that stupid. I know you know about the velocity of money. Not even anti Keynesian. It gets complicated after a couple go rounds. I know you've seen that model to the end. So did marx. You need a middle ground.
This video was like a lightbulb just switched on in my head
Right!
Me too
Me 3 @@anunzorigt2125
I think im now an economist.
Damn this was legendary
This channel should be so much bigger
Thanks for the video. Just one thing to add: growth is tightly linked to environmental degradation, so we will have to think of different strategies for well-being than to keep pushing 'growth button'. ;)
I randomly questioned what people always meant by "this will help grow the economy" and I never understood how it would or what they meant by that and this filled that gap in my understanding within a few minutes, good video.
I completely agree: Its about making more stuff. Not the money itself. (Assuming its a healthy economy)
The only thing we lose here are resources, which is why we need sustainable development. Money is meaningless without sufficient resources, hence scarcity will occur.
Scarce resources of what? Wood? Plant more trees. Iron? We’ve barely tapped anything in just the crust
The myth of scarce resources is for authoritarians to control us in what they deem “sustainable” when really there is no sustainability problem to be had
That’s fine as everyone knows that so will take risks or not and be met with running out or not
GOD DAMN THIS IS A GOOD VIDEO.
Loads of love bro.... Thank you for such a simple explanation ❤
Thanks
.
awesome old video, thank you.
this is better then what link my teacher gave me
I did not know that ibdint understand the basics if economy until i watched this ❤ Thank you its very educative
This was fine until we got to the cynicism about politicians. Political institutions are also actors in an economy, and some investments are best handled on a collective level.
i have a question about recent cryptocurrency
how does mining bitcoin not cause inflation in the economy like in Zimbabwe
cause the supply is controlled 6.25 bitcoin per 10 minute which is the time to generate a block and not mass printed like fiat currencies.
and also it halves every 4 year , so 2024 , it will be only 3.25 bitcoins per block and so on
bitcoin supply are limited. it capped to 21M , 19 million has been mined and 8 million are lost
This explanation suits to economies that are internally dependent, I want to know more about how does economically grow through external factors which isn’t explained in this video
dude dropped the best video about economics then disappeared
its the trade of goods and services which create all the value in the world, isnt it
Why was i recommended this video now?
This is a really nice explanation of GDP, not growth
The best video ever❤❤
How do you counter the next statement: "But that (liberating the economy from state regulations) would mean that the private sector could fire employees at will without consequence. People wouldn't be able to get a dismissal compensation after they get fired."
It's unsustainable if people have jobs without being able to add value, it risks whole companies. They should have the chance to work where they are needed.
The video comes off as very anti-socialist and extremely pro-capitalist, even if both systems can work very well
A planned economy, following the same principle, can make everything work as well, perhaps even better than a laissez-faire
Economic growth is possible only when you start regulating how much people can abuse the work of others (minimum wage, for example, makes a better economy over time, as we can see from history: after the plague in the 1348, the economy became much better because people started getting paid more and could buy more)
Without regulations we'd go back to a very simple self sustaining economy like in medieval times
This is a GREAT animated explanation of how the economy works and all the mechanics of it. NOW we need a new animation on how the current COVID19 has collapsed the economy world wide, the mechanics of this are similar, but the ingredients to this are much different than before, this is an unprecedented dilemma we are in, and a much needed explanation would be great for all to view.
Simple, for this online shopping cannot be a things, this video is talking about about trading (buy, shopping ect) so for that you need to give something to someone , If u can't go outside you can't pay the shopkeeper which to you not having food ,and leads to him/her not paying "bills" or tax so that money can't go to the government to be given back to your boss (assuming u can go too work) to give back to you , im not an economist but this is how it looks to me
Triple fraternal hug brother
thank you, im trying to make a minecraft economy
On the surface this video might seems childish ... but it is awesome and very informative !! Good job
Really clear and simple explanation but there are some 'Jokes' and animations that take too much time and add no value
Then make your own video :-) I dare you. One Love.
badum tis!
It's 6 monutes
It made some people laugh, probably lightened up the mood of some and made them smile a little, which could actually increase productivity. See? That's value
They add the value that an anxious autistic with adhd can actually stay engaged with the damn video
Absolutely love this especially the ending about politicians
So why would the cutler pay $100 to fix the grindstone to make $100 making the knifes leaving a net profit of zero?
its just an example from a video made 8 years ago. relax
Maybe the profit is not relevant to the growth of the economy, just the products produced.
Are you going to make more videos?
Good video but that bass in the background is funky
I have hunted for a video like this for a long time. It's a great video. But I am still a little mystified. Where would the butcher have gotten the $100 from? I have always assumed that, to develop an economy that uses money, (as opposed to trade by barter), you would kick things off by issuing each individual an amount of money commensurate with the wealth or skill he or she possessed. So in this scenario, each individual would initially have a little money since they all provide valuable services, but some individuals might receive more money than others to reflect the different values of their services.
Excellent work. Great explanation and good example! Keep up the good work!
I think people focus on money because you can put numbers to things. Like in a barter economy, how do you quantify the economy? The problem is that when the government is so massive that it causes significant inflation, then the value of money becomes a bad proxy, and out intuition gets all screwed up
at 3:26, you should eraze the meat at the butcher as it is sold to the miner already. (Do I miss sth?)
I like your video
How can the butcher make the steaks without any knives
use the ones he already had i guess
@@NoobaKid then there is no point to pay the cutler to make a new knife if he already had some.
Dell I guess your right 🤷♂️
But he had 100 dollars to pay for the knife and make the steak. The cow he killed with his bare hands and the dollars he robbed from a nearby planet
@@Pedro-ds3cq yeah. where did the FIRST 100 dollar come frome?
underrated video!
Thank you now I can fix my home country
True
economy comes from nature.
It all boils down to harvesting natural resources (energy, food, materials)
The only parties who lose here are the mountain and the cow
the grass
Time is money just made sense
Thanks
i dont get the last part about the highway
The miner needs a pickaxe fo mine new iron ore and the blacksmith needs iron ore to make a pickaxe. Now everyone is fucked.
Great
Economy can grow if people have more opportunity to grow more revenue as a result of their work
which software u use
I’m starting to make educational videos like this one. And you make really good content that is informative and funny. Keep on working hard!
The miner looked like a peen🤣
This is an easy to understand pathway for how to grow an economy.
HOLY SHIT. 3:00 MIND FUCKING BLOWN
Thanks I explain grandkids one rand more people got stuff money means of exchange
so each person in this video comes born with a set of skills and their own guild? how did they develop before this economic trading system?
Humans started to become more intelligent and make new discoveries and inventions. But one person can’t do everything. To make it simple each person would have a part to play in this world in order to benefit each other. So each person would be taught how to do their part whether they chose that part or not from what the previous people have learned. That is called a job. Eventually as humans evolved and new discoveries and inventions were made which makes more jobs so all people had to get a job to contribute and benefit themselves. These jobs benefit each other. Some examples of jobs are Doctors, Police, and emergency services all help people from harm. Farmers grow food which we need to stay healthy. Entertainers like actors and comedians make us entertained. There are many more jobs which you probably know of which contribute to the world/country/society/organization/people today. That’s how this system has evolved to today.
Explain economics from scientific point , bcs that's worth , it's not soo funny about it , however it's was very informative ❤❤❤❤❤❤
whered you go
Now i can really say it’s “simple economics”
stonks
thanks for this imaginative content
I totally understood the story until I try to add another f people from another country that works with a 10 dollar bill instead of a 100 😩
For really truth
economy = goods & services
money = late exchnage of goods & services
As always... Who financed that 100 bucks the butcher had in the beginning?
government, you know money is illusion it has no value. it just used to makes economy running
the video also explain about how GDP works. GDP=consumer spending+investment+government+(export-import)
so in this video. 600=500+0+100+0
@@N0URii how did the government get it? Just by printing notes or some mathematics?
@@kvs123100 printing money
printing money seems bad, but small amount of it actually could make economy grows. like on this video, that 100 dollars could be from the government printing money that leads economy to growing
u need more subs
Only two videos on your channel, I would binge watch even if there were a hundred.
But how does anyone actually make money?
Currency or money just got added to it to make it easier. That’s at least my interpretation.
It's a cycle. That is why the poor stay poor and the rich stay rich.
So why don't we advise the govt to burn half the cash in circulation so as to cause deflation and give cash value .Then encourage a general doubling of production in goods ,agriculture and infrastructure so as to create real wealth . China has done this in its economy and they've grown !! . The problem nowadays is many countries hope to in by manipulation of financial instruments like cash,insurance, treasury bonds etc and while this seems to show improvement for a short while it soon proves to be unsustainable . The truth is only production adds real value .This is why the far eastern countries are the only ones still growing
Nicholas Kiwanuka there is only 1 true way to improve the economy (in my opinion) and that's using the solow model. basically what you want is a golden rule steady state. there are 3 factors to consider here: 1) depreciation of capital, 2) the rate of population growth, and 3) the rate of technology aqcuisition. to achieve a steady state we need to save enough money in the economy to replace depreciated capital, to make more capital to keep capital per person the same as the previous year and also to facilitate the rate of tech aqcuisition. now this is great because these cover the two ways to increase gdp. gdp can increase by population growth (more people = more stuff to consume) and by technology (since chopping a tree with a chain saw is much faster than a hand saw). by having a high enough savings rate we can make sure that there is enough capital to cover these. however, having the highest level of savings or the highlest level of capital will not mean you have the most optimal economy, therefore you want to use the golden rule steady state, which is basically a condition where you use steady state but you also maximise consumption. this give your economy the most optimal level of saving while keeping the people happy enough to enjoy their income. so to have the best gdp per capita you need to focus on technology aqcuisition and to have the largest economy you also want to have a hugh population growth (usually through immigration).
@@monjier but the most rich countries per capita are actually small in population
@@ozymandias8523 precisely. That's exactly what I have said previously. The richest countries per capita are all highly developed (technology development is very high) and consumption is maximised (this makes people happy and gives the best marginal GDP returns when allocating income/resources in an economy). Now, if you're talking about national gdp and who has the biggest economy, you actually need to increase population whilst maintaining savings rates to counteract capital depreciation, technology acquisition and population growth. All these factors combined will net you either the largest per capita income OR the largest GDP in the world.
Smaller countries find it easier to acquire technology, meet the necessary savings requirements, and maximise their consumption.
@@monjier from where do they get the " means" of consumption in the first place? past savings?
@@wy7128 from a macro economic perspective, anything which is produced and is traded is assumed to produce income (for at least one person).
😮 barter trading evolution
That was amazing and we'll put I really really enjoyed that thank you so much !😊
Wow
The quality of life of people could be much better when everyone will get free education and opportunities to increase their skills, when the upper classes (Manufacturers) will stop exploiting the lower classes (worker class) to gain profit for their selfish reasons and selfish desires such as living a luxurious life, having a high capital just to show off (capitalism). Quality of life of people will be much better when the profit gained by a company will be equally distributed among everyone according to the skills they have. The government should have a control over everything and there should be good political leaders who will control how the wealth is distributed. There should be no class divisions based on religions, caste, financial condition and income, colour, gender. And that's called as communism and these all things are possible in communism. Worker class controls the government in first step of communism that is socialism and in second step of communism, that is pure communism, there are no class divisions.
ok the first half of the video is pure economics, the second half of the videos is pure politics
Wow, this is what I was looking for.l
3:25
yea politicians banning child trade is thinking of himself lol
Why does this have 44 subs
but 3 people are starving 🤔
i dont know how you made something so big so simple put thank you it really helped
This was Fun and educational. Thank You!
4:06 Well really the IOU equivalent here would be credit where you give people the ability to tell your credit card company that you owe them money.
Lunk... LOL.. anyways, thanks this actually helped even with it being humorous!
Made simple and I learned much❤🤝
This is exactly how i think lol
300th like
And business is not thinking of how to short change the market for their gain. We tried supply side economics, and we saw where that got us. The market has only been stable when the market is meant to protect the laborer. You can only bleed so much from a stone before the market collapses. You can't be that stupid. I know you know about the velocity of money. Not even anti Keynesian. It gets complicated after a couple go rounds. I know you've seen that model to the end. So did marx. You need a middle ground.
Minr iz sprm csell
Austrian economics
You explained it so well. I can easily understand how ecnonomy works
0:48 i heard and a minor not miner ;-;
Are you tryna strike a chord?
Cute
GREAT
lol i love this
Town full of lazy, 1 trick ponies if you ask me. Each of these workers should be capable of basic/general knowledge or work in each field.
good explanation till you got into all that libertarian bs. politics is another ballgame in its own.
I wish you saw reasons to make more videos
I was expecting the mountain was about to collapes and the miner ask god to get a new mountain for a 100$
Thanks