GM Closes Factories- Econ in Real Life

[@teegirl722]

Mr. Clifford with the excellent dating advice lol

[@ChrisGoblinHD]

I am majoring in finance and economics and with two bad professors, I was really rethinking my major. For a while now your videos have brought life back into my obsession and interest with economics. Keep up the amazing work!

[@dinglesworld]

So how is the major going? Or did you wussy out? >:)

[@ChrisGoblinHD]

@@dinglesworld I work at an investment firm in Beverly Hills lol funny that I see your comment after I just got the job

[@good1742]

woo you graduatd (or switched carrer paths I won't judge)

[@leopard6554]

Ignore SUNK COST and move forward...!!! Mr. Clifford you are my SUPER STAR 🌟 ✨

[@russelj2]

I think its a great video. You touched on the politics but kept it non-partisan.

[@blurabbit2171]

Somethings should be taught in high school. Economics is all about that rational thinking. Something that is missing today.

[@JosiahPreston]

It was taught in my highschool

[@mihirsabnis7240]

Thanks for all the help your videos have given me.

[@JacobAClifford]

You are very welcome!

[@Adventism27]

Great video. I discussed this yesterday in class. Consumer sentiment drives the business cycle.

[@CJusticeHappen21]

*American 1:* "I can't believe that GM is closing down five plants! It's criminal!" *American 2:* *So, what do you drive?" *American 1:* "A Toyota. Why?" *American 2:* (-_-)

[@willofdodge1]

Because Toyota is made in America. Buy American Buy a Toyota

[@Brandon-qr8zz]

willofdodge1 Toyota is not made in America

[@willofdodge1]

@@Brandon-qr8zz Kentucky, Indiana, Mississippi and Texas. All have manufacturing Toyota plants

[@kaiserli5987]

Mr. Clifford, you are such an awesome economic teacher. Thanks for making all these excellent videos!

[@ageise0283]

For all six of the models cancelled, xts, ct6, cruze, impala, volt, and lacrosse the sales numbers were down sometimes over 25%compared to last years numbers and this years so everyone freaking out is useless and dumb because all gm is doing is adapting to the changing market thats been changing away from sedans for the past 25 years. If you understand the car market you’ll understand why gm did this. My history teacher hysterically got all the facts wrong about this and said that 120,000 jobs would be lost, it was because of trumps tariffs and that gm stock was down 5% when it was only 15,000 jobs, not because of the tariffs, and gm s stock closed at 7% up. Great job on the video

[@quintessenceSL]

Iffy. Take the Volt. It's nearest competitor is probably the Prius. Prius sales numbers are down over 50% from its high in 2012, and yet no plans from Toyota to shut down production even though they are arguably in a worse position than GM. Are they nuts? Enjoy hemorrhaging money? Or is something else at play? Are companies introducing new sedans just deaf to market demands? Or maybe GM is only telling one part of the story (they can no longer produce competitive sedans)? And why is that?

[@bigge319]

Toyota gets government subsidies and is protected as national interest in Japan(i might be wrong, but i know Korean cars do get subsidies in their home state hence making them competitive)

[@thechoniclesofkratos]

In 2022 now everyone wants a GM car and microeconomics course is alot right now, thanks for your videos.

[@tinyleopard6741]

Wow, I can feel your enthusiasm the way you presented it. XD

[@ramil17998]

Great analysis Mr. Clifford! Please do more!

[@socialrecharge5361]

i started watching your videos because my ap micro class assigned it, but watching your videos is genuinely a fun and educational experience, and i wanna watch more of your videos that aren't really related to my class!! so thank you for making learning a bit more fun and a bit less painful :) - a high school senior

[@msalazar51]

Once again, great work Jacob! CJusticeHappen, love your comment . . . the American consumer, GREAT!

[@Kittnet]

Summed it up perfectly.

[@dbdan61]

I love this video. I tried explaining sunk costs to an ex but it didn't go well. Now I can send her this clip. Thanks!

[@JacobAClifford]

:)

[@qikong7269]

Like your video so much!!! Taking a micro-economics class this year in a famous business school, but your instructions are much dynamic and understandable:D. Thanks for sharing

[@jackkraken3888]

Forget the Zune, the real sunk cost is the Microsoft Kin!

[@ahmedal-ghamdi7602]

Thanks, really liked your video & subscribed. Would like to see more videos explaining market decisions made by the big companies (like GM closing down plants and laying off workers).

[@Sheik-d3h]

I truly love your videos, great stuff👍

[@pivotbroz]

The reference to Paul Krugman made me laugh for some reason. My macro Prof loved to make us read research papers by him and talk about him all the time.

[@brette8672]

Awesome video Mr. Clifford! All your videos have helped me on my AP Exams and are still helping me learn in preparation for my courses in college. And yes, I have even bought the Ultimate Review Packet! Thank you for everything you do.

[@familyfun5969]

Dang the life lessons too!! Amazing content, you are a great teacher

[@ellen128]

For the first time I'm interested in economics because I understand it. Thank you!!!

[@hectoramortegui2060]

Great explanation. In few minutes Jacob explain me hours of hard work trying to understand the concept. Thanks. It will be helpful to here your explanation on expected value, variability, risk aversion and utility

[@macsnapon]

Great video, Jake! I’m taking Microeconomics and your videos are helping me grasp the concepts. We just discussed shut down rule and diseconomies of scale and you’re absolutely correct... the consumers are to blame for not investing in GM sedans and electric hybrid cars... everyone wants a truck or a sports car and those are just not helping the economy right now.

[@prathameshjadhav2422]

Greatest idea for eco t- shirt Stay calm and ignore the sunk cost 👍👍

[@ujjwalsharma7283]

Mr. Clifford you are really awesome, adorable, incredible, intelligent, mastermind, our econ saviour and what not. Love from India😍 keep making these awesome videos..

[@benderbendingrofriguez3300]

THE GOOGLE GLASSES! Man, I've totally forgotten about them.

[@Wallucks.]

The only guy talking that speaks about economics and suits my attention span :D

[@mariobueno3368]

As usual Mr. Clifford you are dead on mark. Thanks for the great videos.

[@svitlanashcherbak2696]

Amazing!! 👍🏼👍🏼 Can you make more videos with real life cases/ economics news, please?

[@ninfia657]

Thanks for the video I liked this. I'm in college now as a econ major and am taking a class in Marxian econ. Is it possible to explain more on that? I see it discussed more and more in our generation with Bernie etc.... So it was an interesting class, just wondering if its a plausible system without hearing all the political talk. Or maybe some fusion of keynsian, neoclassical and marxism is a good idea or if its even possible. I don't know I just don't want to see another 2008 crash in my lifetime again so I been thinking on this stuff quite a bit. Thank you!!!!

[@terrydragon4]

@Pacna Sesim I used to be a hardcore Austrian like you, mate, until I met real economists and had many chats until my Austrian priors were broken down. On the topic of central banking, there are multiple resources that explain why central banks can be integral to mitigating crises. One such example was the Great Recession, in which Bernanke notes how they learned from the mistakes of the Fed's actions that helped worsen the Great Depression. Furthermore, there were many panics in the US prior to the Fed's existence, and price stability was much worse than it is today, leading to much inflation -> deflation -> inflation -> deflation, all in the face of a growing economy: imgur.com/a/2N72ErU Anyways, you look really set in your beliefs just like I was. If you really believe in and want to defend Austrian views, I recommend that you come to reddit.com/r/badeconomics and defend them against actual economists, not students watching Mr. Clifford's videos. They helped convert me out of Austrian econ, but if you can successfully sway them, more power to you, my friend.

[@injusticeanywherethreatens4810]

This is why people need a universal basic income. Its possible that a person will be stuck in a market where there is almost no demand and so they could be fired or out of work for an unusually long amount of time. During that time one should be paid enough to survive and thrive with dignity and liberty even with NO consumers! Thanks for the vid, Cliff! Also, everyone, please unionize!

[@lucasm4299]

One thing I do have to say is that I don’t like when we can afford to let go of workers but we can’t afford to lower how much the top executives get paid in comparison. I also think drastic economic inequality is not something to be proud of.

[@Roberto-dm2cc]

Great video, great relationship advice

[@samirelsherif8817]

I would like to know the difference between the Classical, Neo Classical and Endogenous growth theories in simple terms.

[@josephwhite9628]

Great video mate, salute to you from the UK

[@ayeshanaeem6076]

Great.. Your vedios helps alot in understanding the concepts.. Please continue uploading vedios.

[@MoYzBS]

imagine disliking any of Mr. Clifford's video.....

[@MsMarmolade]

Thank you so much for sharing your journey. I means alot to people like me who are feeling lost & generally discontent in the world right now. As a college drop out I have always loved economics and I find your videos so engaging and educational. Thanks again. This video actually gave me a little hope. I even looked up James 1:5. Lol Thanks again for following your path.

[@wrecklessfilmsofficial]

A small question that may seem dumb...why would the additional cost be $80,000. You already spent $40,000 and expect it to cost $120,000 why would cost not be $40,000 + $120,000 = $160,000?

[@mmicheni1466]

good explanation. I cringed everytime you had 'sunk costs' and 'ignored' in one sentence though. cant ignore really

[@sgtboots6847]

Intresting video. I would argue that the consumers choice is driven by higher intrest rates. It seems to me with the Fed raising intrest rates this would shift demand curve to the left. On a graph this would mean price would fall and quantity demanded would drop. This means profits will fall. GM in response to the fall in demand must change the quantity supplied by lowering production and this means closing factories. This shifts supply curve to the left keeping prices about the same but the quantity supply drops. It is not the fault of the consumers. They are reacting to the future cost driven in large part by the Federal Reserve. If someone could check my math because I'm doing this in my head that would be great. We should see something similar in the housing market as well.

[@basilmohamed9918]

this was great explanation may you do isocosts and isoqaunts

[@immmawsome]

Can you do a video about the ricardian model, specific factors model, and the heckscher-ohlin model?? I have an exam on thursday and I'm very confused by them

[@benjaminfranklinsmoneyball2839]

Thank you ! You make understanding real easy

[@bvbxiong5791]

dude: you have to totally ignore the sunk cost ($40,000) also dude: you have to factor in the $40,000

[@timyang4765]

is shut down rule about AVC and marginal cost curve ?

[@abirhh7048]

Your videos are very helpful, thank you!

[@armaneyy]

thank you for what you are doing

[@rachelwang1342]

the dating part is quite philosophical lol

[@manavsridharan3811]

Hey Mr. Clifford could you comment on China's falling currency, it's management policy and how the trade war has impacted them?

[@enduraman1]

You said total cost increased from 60,000 to 120,000 and revenue is still only 100,000. if 40,000 is sunk cost and 80,000 is additional cost than total cost is 120,000 and you lose $20,000 which is less than losing 40,000. However, why would anyone spend $120,000 to loss $20,000? There always better opportunities to spend additional $80,000 some where else to make a profit instead of taking a loss.

[@leavemea-lone7566]

Free "The Economists" toy with every review packet??

[@Smithistory]

You should also consider the opportunity cost of using that $80,000 somewhere else. Perhaps you can get a greater return on investment somewhere else (more than the $20,000 marginal benefit).

[@rushirajraval8975]

Keep making videos like this....

[@cheong6b]

Thank you for the video.

[@AngelicaASMRcolombiano]

Do asmr economics videos!!!

[@thirumavalavanr6052]

Hi sir... i want to learn about the concept of cash reserve ratio , statutory reserve ratio,repo rate and reverse repo rate .....i had confused in this concepts... plz sir kindly upload a video for me to understand better

[@pratikshasune2181]

Dear Sir, after reading and then watching your video, I came to the conclusion that Firm can shut down due to 2 reasons 1) Sunk cost (if more than revenue) 2) if total fixed cost is less than total losses Am I correct? please guide sir.

[@manspider1833]

If I buy stock from Google and it goes down, it will eventually go back up, won't it???

[@JacobAClifford]

Yes, but you should by the stock that is most likely to rise fastest. Not just keep the one you bought because you bought it

[@stefan_yt4869]

Hiiii , we want Consumer theory , and maybe Isoquants

[@aniteshsadhu5039]

why did you leave CrashCourse?

[@vxicepickxv]

I'm going to blame GM for not providing a product the customer wanted. IE a reliable car.

[@AnneDulong]

But in the second question, the loss is 50000 dollars. Isnt loss if 40000 better

[@ssoltani22]

I'd liked this video twice if I could!

[@DIOYouTube]

Just got dating advice from a microeconomics video

[@jakeyates1541]

GM caught ligma

[@manspider1833]

What about the value of time???

[@snowman5980]

Don’t stop

[@tigerclaw8454]

GM has it's own internal mismanagement starting with the labor unions, management, consumers, government funding the auto companies money and the planners. The company is making bad business decisions.

[@alyssapapke]

girl math=economics

[@TySteve539]

Now explain how gm agreed to open again in canada the same day Michigan went blue 😅

[@monkJ100]

Your example of sunk costs in the context of holding stock in a company doesn't make very much sense. In the case of your production example, we know if the remaining cost is greater or less than the revenue. In the case of holding a stock, it is unknown what the remaining cost or revenue are, and it only makes sense to sell if indicators point to the stock price continuing to fall, similarly, it makes sense to hold if indicators point to the stock price rising. Sunk cost doesn't seem to play a factor in whether one should hold or sell stock ownership.

[@siddharthajain6944]

This is just the beginning of disruption.

[@ulviibrahimov4604]

👍🏼

[@koukkoufos2000]

Nice Centrist approach Mr. Clifford lol, here’s the real reason GM motors closed kzbin.info/www/bejne/ramQo3Wmoc9oes0 Also we need Scandinavian Economic policies implemented federally one day with Justice Democrats because objectively they work. Unlike giving tax cuts to the rich, which is why we need to expand unions like Europe and universal free services like daycare, healthcare, pensions etc. paid by our taxes, by simply reallocating some of our current taxes from military spending and corporate welfare to profitable corporations.

[@kennethchen8315]

oh noes pop quiz

[@RyanBost-ne1qk]

Lol dating advice 101

[@glennmorris6914]

Jacob, you player using Economics to cover up your pimpin

[@MsDianneMaryWilkerson]

Luke 14: 27 And whoever does not bear his cross and come after Me cannot be My disciple. 28 For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it- 29 lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him, 30 saying, ‘This man began to build and was not able to finish’? 31 Or what king, going to make war against another king, does not sit down first and consider whether he is able with ten thousand to meet him who comes against him with twenty thousand? 32 Or else, while the other is still a great way off, he sends a delegation and asks conditions of peace. 33 So likewise, whoever of you does not forsake all that he has cannot be My disciple. 34 “Salt is good; but if the salt has lost its flavor, how shall it be seasoned?

[@tomuil7739]

First

[@user-dw7ck9rn6z]

First Comment 😂

[@JacobAClifford]

First reply 😂

[@user-dw7ck9rn6z]

This is a pride for me 🖤💖I Like this channel and it help me with study 💖l'm from Egypt

[@robertbarth3476]

You forgot about human cost. Can you explain there losses, oh wait, no one cares about them it's all about the money.