Keynesian Economics and Deficit Spending with Jacob Clifford
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- เผยแพร่เมื่อ 25 มิ.ย. 2024
- In this video I explain Keynesian economics, the idea of the multiplier effect, the broken window fallacy, and the tradeoffs of government spending to get out of a recession. Be sure to leave a comment and tell me what you think of John Maynard Keynes. Thanks for watching. Please subscribe!
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And, yes, I know there are a few misspelled words. I always try to throw a few of them in there to keep you on your teos
I love your economics videos! While I am laughing I am also learning and that is awesome!
That is awesome. Usually I'm being laughed at rather than laughed with, but I take what I can get.
+ACDCLeadership worry not, this laughing is the with variety
You have made my life so much brighter
Tom B-H this is. rewalls cool ;0
oh the humbleness 😊😊ure a great person@@JacobAClifford
I do appreciate how you always show both sides of the argument. I think the idea behind Keynes is to pay back the debt at some point, when the economy is healthy. That's why it bothers me when politicians want to keep increasing the debt even when the economy is healthy.
"The debt" is the money, as the economy grows there's more need for money to make transactions otherwise you get deflation which you don't want. The debt aka money needs to keep growing unless you radically want to cool down the economy, which is the opposite problem we've had for the last decades.
@@ArturHonzawa Not quite. The government takes out loans which crowds out private investment. If the economic is in a recession, you have a liquidity trap, which means private investment wasn't going to happen anyway, but in a healthy economy, you need to cut the spending to put it back in the hands of the private sector.
@@kunallobo4136 That I totally agree with I think. But by "cutting back" do you mean decreasing the debt? Because that would mean reducing the quantity of money when the GDP is growing and surely you don't want to do it past the point where you're creating deflation right? Shouldn't you adjust money creation (aka the debt) to the target inflation of 2%, whether that means increasing or decreasing debt?
@@ArturHonzawa Yes, it would mean you have to increase taxes or cut spending -- preferably decreasing spending
@@ArturHonzawa who wants inflation though?
Keynes assumes resources to be infinite and also debt to be free.
Sir, could you write a book about how to make economics more interesting and send it to my teachers in college?
You could name it "How to not be a boring professor".
I learn more from your videos than from my teachers.
agreed
I swear I can feel u omggg
I feel being boring is a commen thing in economics teachers unfortunately 😞
Economics in one Lesson by Henry Hazlitt.
My teacher just gives us these videos
This proves that you do not need hours of tense boring classes to teach you a concept. When done right like these videos, it is useful, entertaining, and you are actually hungry to learn more. This is the most effective teaching technique I have seen. You are an amazing teacher Mr. Clifford. You remind me of a teacher I had in high school who made Physics a piece of cake, everyone loved his teaching and we could not wait to enter the room to get his class. How many times do you see a line of students happy to enter a Physics class? Teaching does not have to be something where you use all these heavy words to show how impressively smart you are or confuse everyone with so many terms that you hate the subject and end up learning absolutely nothing. I can say that Physics was my favorite subject thanks to this teacher, and now I am 53 taking an Economics class, and I could not be happier learning from you, Sir. Beautiful teaching.
ACDC>Crash Course
+Shrey Mittal You do know that I am making the Crash Course Economics videos right?
+ACDCLeadership Oh yes I know but I still prefer this channel, crash course is a little fast for my taste, I associate good animations with crash course. This channel helps me understand better. Thanks!
Cool! Thanks. I appreciate the shout out
+ACDCLeadership really you should get a million likes i wonder why ratings are so low inspite of such quality teaching sir
+Shrey Mittal It just takes time, but it starts with you. Please share and tell other econ lovers about it.
"Great idea! Perhaps we could bury the windows first..." Haha this is the best channel on TH-cam!
+Connor -J- Evans Thanks Connor. I was waiting for someone to recognize the genius of that joke.
I don't get it, can you explain?
I guess if I have to explain it, it's not that funny. The joke is that Keynes was big into burying things.
+ACDCLeadership Haha, thanks. I'll laugh when I come across it next time. Btw, I recently found your videos. Thank you so much for these. They help me immensely.
I'm glad that you like my videos
Hey there! I'm a law student from one of the premier law schools in India. Hailing from a background of Science, it was always an onerous and exasperating task to deal with economic graphs and theories especially, when one has got to cover both micro and macro units in a six month span. Thank you for these awesome videos that helped me sail through and clarified my rudimentary concepts in Economics.
you are doing free education..
well done
well i dont know about free... it doesnt cost you or me anything, but im sure that it costs him time and resources that could be used doing other things.
opportunity cost.. xD
youtube pays
@@JEHUCALTILLFOREVER advertisers pay
nah! this is the BEST TEACHER OF THE YEAR!!
TH-cam, when do the nominations begin plsss?
So…..we aren’t gonna talk about this beautiful Keynes cosplay?? The acting was so good lmao
I've been studying Economics at a Postgraduate level all year (2016-17). Not only have your videos helped me understand the micro and macro economic concepts - they have also been an excellent revision tool prior to exams. You present so clearly! Awesome work - keep it up :-)
"Stimulate? Haha I like it!" -
-John Maynard Keynes
@Arthur Doradoux I made this comment three years ago. I'm surprised people are still liking it.
@@ilikemusic5039 just liked it
What do you think of John Maynard Keynes? Sinner or Saint? Mastermind or moron? Let me know!
+ACDCLeadership Can you make a video on LS-IM curve .
I'll put it on my short list
+ACDCLeadership Hello Mr Clifford, can you pls add Balance of Payments on your "short list"?
I made one a few years ago. It's good:
th-cam.com/video/W0YwGLz50TA/w-d-xo.html
+ACDCLeadership its obviously good. I had watched that and it had given me a overlook on the topic. A more detailed one would be appreciated. Woah I'm formal :)
Love how entertaining and informative your videos can be, thanks!
i honestly love your videos, i learn so much and i don't even feel like im in class. I've been passing all my economics classes by watching your videos. Thanks.
IT is the best educational video with right humor I have ever seen. Thank you so much Mr.Clifford for making amazing videos.
Man, you are probably the best teacher I have ever learned from, Thanks and love from India.
such a good video! i was searching the web for hours just to find an easy-to-understand video. keep it up :)
Jacob all of your videos are excellent. Thank you! My students noted they like the newer videos because you aren't talking so fast :)
This channel deserves millions of views and subscribers!
Omg Jacob Clifford as John Maynard Keynes! This is so great!
Your videos certainly have a multiplier effect on the amount I learn from my textbooks :D Thanks!
Great video! I wish I had it in the late sixties, when I was studying hard... Political Economy...
+Dimitre Vavov Hey, Dimitre. It is great to hear from you. I hope you are doing well. Are you excited about becoming a grandpa? We are all looking forward to it.
+ACDCLeadership Jake - your video work - so fine tuned! Details matter and make a difference.
We are well; and can only humbly thank for undeserved mercy. Blessings to everyone in the Clifford families.
@@DVavov How are you doing my man?
It's 2022 and it's still the best video I've watched...
Just want to say thank you for these videos! They are saving my life for my upcoming econ final. I don't know what I would do without them.
+Jenna Leis You are welcome. I'm glad I was able to help. Please subscribe and tell your friends :)
No mention of the other part of Keynes: that governments should save and cut taxes during times of prosperity?
The problem isn't with Keynes (who I admit had some really good insights about economics), but the application. There has to be a point of diminishing returns with government spending, let alone stimulating the economy is a recipe for corruption (we have infrastructure that is crumbling, and very little of the economic stimulus was spent on that).
Ultimately most economic thought is neither good or bad, but I question who it really serves.
+quintessenceSL Good point! Cronny capitalism is a problem and the people often best served are the wealthy.
+ACDCLeadership
It's more than crony capitalism , but outright corruption. Even with a perfect understanding of economics, it would all fall apart with corruption.
Even the most ardent laissez-faire supporters understand that a degree of regulation is needed to support free markets and Hayek even conceded some degree of socialism is needed for a healthy economy, but the corollary restricting government interference/spending with the market isn't there.
Keynes himself heavily backtracked on his ideas seeing what post-war England was becoming. Seeing the level of debit England carries 60 years onward would have made him think more heavily about controls.
Keynes would be horrified at current debt levels..
most interesting video on Keynesian Economics and loved to meet John Maynard Keynes
Thank you, Jacob! You make macro easier to understand! I wouldn't be passing without your videos.
you help me a lot for finals tomorrow :""") love youuuu
I'm glad you make an effort to not include bias
You are an amazing teacher , you make learning seem so easy ❤
Great video! I like the ACDC belt btw
You are amazing man, really appreciate the every little detail and effort you put into these videos. Thank you for everything.
I'm surprised by your acting!!! Keep up the great work!
Enjoyable and informative!
You are wonderful. Thanks for lecture and the way you present 😊😂❤
YOUR VIDEOS ARE GREAT!!! They are the perfect length, to the point, filled with info, and entertaining (bonus). Well done and thank you for helping me through this class!!
shall we break all windows? hah hah, I watched all videos on your channel and got a lot of knowledge. you saved my life in many campus exams! Thank you. one day I will be like you
Your videos are awesome😍keep it up sir...You are doing a amazing job
This was very helpful!
I watched your videos in high school and now I'm a senior doing my undergrad at UC Berkeley taking an upper division Political Economy course and I still find your videos to be incredibly informative, easy to understand, and conveniently succinct! Thanks ACDC Economics!!!
The accent is awesome and so funny, thank you!
I love your videos, Mr. C! Wish all my teachers had been like you!
Still laughing about "perhaps we could bury the windows first!"
Pioneer of Macro economics.....his contributions are precious and more practical as compared to classical thoughts....Now all the countries are looking forward to increase job opportunities and consumers spending through the public expenditure-what keynes said this in his famous book called General theory
thanks,amazing video
This is awesome!
great video! this channel is such a good supplemental tool for AP macroeconomics! In my opinion it was definitely worth it, when we bailed out banks during the 2008 recession we essentially stopped abother depression. the government had the option to do this in 1929 and failed to do so, forcing banks to close and making the great depression worse. Keynesian economics works, it's just costly
+Tallformyheight Spoken like a true economist. The people we need to be afraidof are the ones who adamantly support a policy but don't recognize the cost. Unfortunately,
sometimes that's the politicians.
It's not working rn lmao, inflation is here to haunt you
@Oliver Ridderstolpe perhaps you have money, but you have never thought what would happen to the people who rely on pensions, 401k or social security. Oil prices are rising non stop
Sounds like more of a German accent but still love it Mr Clifford. You rock man!!
I absolutely hated economics but now i absolutely love it . Thanks mr clifford 😅
thank you and be nice to keynes
my love for keynes continues
You're helping me pass Economics with A's and ease; thank you!
You're the best...Love from Bangladesh ❤️
I've heard two descriptions of Keynesian Economics.
The 1st one says that Keynesian Economics works like standing in a bucket & trying to raise yourself off the ground by grabbing the handle & lifting as hard as you can.
The 2nd compares Keynesian Economics to scooping buckets of water out of one end of a swimming pool and dumping it into the other end with the expectation of raising the level of water in the pool.
Dur hur hur
Fantastic videos, I really appreciate your effort!
I find that so many people misunderstand Keynesianism. People think Keynesian economics is just socialism and wealth redistribution, disguised as economic theory
I usually describe it to people by explaining the multiplier effect as “Johnny spends 1 dollar (insert explanation here) and now you’ve had 8 or more dollars in total spending in the economy. Keynesianism just means that the government can supply that 1 dollar during a recession.” It’s obv a simplistic explanation, but I find that people generally understand it pretty easily, and it explains it well enough to reduce any reflexive outrage people have
You are the best Mr.Clifford .... Your videos sure help me a lot ! :D
Thanks for this! You look so confident in your presentation!!
great job. thank you
Wowwww I am so thankful for your videos and am so lucky to have found you pr channel!!!!!!! You make economics so interesting and relevant with easy to understand examples. You changed my lofe believe it or not! I know what to major in now thanks to you!!!!! I owe it all to you Mr.Clifford!!!!!!! Where can I learn intermediate micro and macro from you or math for economics?
+gloriaa0214 I'm glad my videos have been helpful. I'm not sure about the best place to gofor the math. I'm sure there are some good TH-cam videos out there.
Great teacher great actor
Superb!
I didn’t want to laugh at this. I wanted to be all serious and economicsey. But goddammit you made me chuckle.
I think it's hard to discuss economics purely philosophically. This is why I hate talking about it on Facebook. People assert "obviously you need to give people money to spend to boost the economy" or "obviously you can't just print money because value comes from somewhere" without anyone doing any math. It's just easier to say the other side us a bunch of morons, but then I have to say goodbye to old friends. But maybe the human factor makes the calculation intractable. I don't know. Which countries are doing well? Can we do what they're doing?
+James Craver Good point. We can theorize all day, but even when we look at what countries are doing better some complain that it is becuase no two economies and cultures are identical. I agree with you though. We have to look at the data, not just the textbook.
I enjoyed that so much, laughing and enjoying what I learn, immediate subscribe. The accent was more German than English tho
WONDERFUL !
Really good!
Great video sir 👍
I don't agree with Government Spending nor Keynesian Economics (I fall into Austrian, Neoclassical, and Classical Schools of thought). But I do think that he has some good ideas and insights into looking at Macro economical Trends.
All your videos clearly take a lot of time and dedication. But they have been invaluable for me, so I thank you from the bottom of my heart! I enjoy your cosplay in all forms. :D
+redkarryn lol, I didn't even think of this as cosplay, but you are right. This is economics cosplay.
It works great ....For the Fed accomplishing their final solution and historically their largest wealth transfer ever.
Your video just helped me, finally I understand and I ain’t gonna fail my exams😂
I loved watching Mr. Keynes teaching!
Haha! You have way too much fun. I live! I live and I love!
Sweet vid guys
pretty damn relevant now... thanks :)
great video.
you are awesome!!!!
this is awesome
Video are kinda corny but I don’t care, it helps, you have a great way of explaining stuff. You’re TH-cam channel is basically from Econ 1011 all the way too 3500 level, great kept it up!
You're the best.
What I think about you? I think you're wonderful. Concise, explanatory and hilarious. Perhaps we should burry the windows first ;)))
Does anyone know the music that the video opens up with? I hear that song everywhere but I don't know what its called
Its just awesome😊
You are so awesome!!! Sometimes it's hard to not get bored at reading textbooks. So, I try to think of the concepts in funny and creative ways like you. You're inspiring :D
Nice one
just watching this, now, for understanding the Keynesian Theory -
few minutes before my Economic test
best. keynes. impersonation. ever.
I LOVE YOU!
very good
Wow sir best video
I learned about Keynesian Economics. It was never to be use as a long term solution. Keynesian Economics was a short term solution, such as increasing government spending and cutting taxes to increase GDP during recessions. But once you plug in the effects of government spending and tax cuts in the long run, it decreases GDP
I think you broke it down great
is there a chance you could do an intermediate micro review before the 15th
I have been working for the federal government since 1976 and the last people I would want my tax dollars being spent by is the federal govt. There are essential constitutional spending that is required (e.g. defense) but if we think that additional spending, above and beyond what is specifically called out by the constitution, the state and local governments should be taxing their respective citizens and being answerable to those citizens via local elections for those spending decisions. Federal Government spending might keep things from getting worse, but the best thing to do is for the govt to get out of the way of business and when businesses fail, then those investors (monetary as well as their workers) should pay the price for those failing business decisions. If workers don't like the business decisions that may lead to a company going out of business, then they should go work elsewhere and as quickly as possible.
Thanks for your videos. You are actually helping a lot of people. God bless you♥
Fantastic British accent, very high brow. Its definitely coming into its own now with covid, in the UK even the Conservative party are boosting AD!
Hey, thanks so much for these videos. I have watched most of them, but this is my first time commenting.
I think that you missed a critical part of Keynesian theory by not mentioning surpluses. Keynes never said to just borrow during bad times. During good times you also have to use budget surplus to pay off the debt. This allows the government to (theoretically) maintain an average of 0 debt, but still have the effect of stimulating the economy.
This sounds nice, but in practice it doesn't really happen. What actually seems to be the pattern is borrowing during bad times, and then when the government has a surplus, we just increase tax refunds, and cut taxes instead of paying off the public debt.
+Richard Gittings Great point. I should have added that in but you are also rght that it doesn't happend as much as it should.
@@JacobAClifford late as I may be professor , perhaps you could have pinned his comment
Bro I honestly thought you were Dr. Scott the paleontologist from dinosaur train. Gosh your face hit me right in the childhood lol. You have a twin!
Government spending would feel the full weight of the multiplier effect since governments don't have a marginal propensity to save as ordinary households do. Indeed, every dollar of the fiscal stimulus would be spent to get spending going, as opposed to if every household's marginal propensity to consume is subtracted from total income and spent instead of total income. The only reason a government would implement fiscal stimulus would be if households and the private sector weren't spending anyway, so the conjecture that "individuals can spend better than government's because individuals know what they want" is ill-disposed when put into Keynes' theoretical context because it forgets that the economy is in recession and that combating the recession must be prioritized.
Nevertheless a good video. Definitely subscribing. Your channel is a very convenient review for anyone who is familiar with the concept but needs to be reminded a thing or two.