Thanks as always for watching :D This video was requested by the team over on Patreon. If you want to have your say on what video is produced next please consider supporting the channel. www.patreon.com/EconomicsExplained
@jai-kk5uu4 жыл бұрын
Inflation bad fire good
@jacobw7034 жыл бұрын
Chrome and Firefox are giving me certificate errors when I try to go to the link for the newsletter.
@salkjshaweoiuenvohvr4 жыл бұрын
Video request: overall which has helped overall economy better? Laws enacted by conservative parties, or the liberals?
@nomadMik4 жыл бұрын
IS YOUR MAILING LIST SERVER OKAY? I just tried signing up for your newsletter, and I was getting SSL problems. I tried twice. It could be something innocuous, but I can see why email addresses for your viewers would be a lucrative target for hackers-it doesn't take a lot to think of email scams that could trick people interested in finance in these interesting times, even if only 1% of people fall for them. So please check that your mailing list server is secure.
@robertgaul81094 жыл бұрын
ok, so two things that I think are failed to mention in this video 1. what if we are able to produce more goods with the same amount of money? We have seen are productivity skyrocket, so one dollar should by more goods rights? 2. we have more things competing for our dollar, we had access to a more variety of goods and services, we have smartphones, TV, exotic foods, and trinkets from around the world these are both massive deflationary forces that should be driving drown prices like crazy or causing an increase in wages, neither of those things is happening, so why? the easy anwser - consumer debt. instead of lowering prices or increasing wages, to buy more and more stuff and the same prices, people have opted for buying things through consumer debt, they buy their cars with debt, their homes, their furniture, their phones, and increasingly their groceries. consumer debt is so high because it's holding back the wave of deflation. a lot of the stimulus is not causing inflation because of this, any extra cash that goes to the consumer is going not to increasing standards of living, savings, or buying more stuff - it's going to pay off loans.
@darrenstettner53814 жыл бұрын
High school me would never have imagined I’d one day be listening to lectures about economics for fun.
@jorse4564 жыл бұрын
well my economy teacher was not an ozzy
@aayushagarwal41384 жыл бұрын
Jokes on you I am still in High School
@charliejenkins1004 жыл бұрын
Ditto..
@winterking25104 жыл бұрын
Same here. It's actually quite interesting and affects us through out our entire lives so it pays to understand it
@winterking25104 жыл бұрын
@@aayushagarwal4138 Joke's on you actually. You'll be leaving high school and entering one of the toughest economies ever
@kudamanjonjo554 жыл бұрын
As a Zimbabwean who has seen inflation, hyperinflation, deflation and then hyperinflation all in the last 12 years , this video is emotionally triggering! Lol
@dallyh.29603 жыл бұрын
Is your country one of the ones being neo-colonized by China?
@screenarts3 жыл бұрын
Do not privatize your resources. Don't do it.
@ashthegreat13 жыл бұрын
MMT = Mugabe’s Monetary Theory
@Ganglydude3 жыл бұрын
God bless you. I hope you and yours receive the blessings of Christ in your life.
@EnergeticWaves3 жыл бұрын
@Mutant Pig but do you have any filler?
@QuestionEverythingButWHY4 жыл бұрын
“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.” ― Mark Twain
@0xszander04 жыл бұрын
I think i've seen this posted on every single ee vid..
@schumanhuman4 жыл бұрын
"The earth belongs to the people. I believe in the gospel of the single tax." Also Mark Twain, smart and witty fellow.
@chrisblue464 жыл бұрын
An umbrella is also a good thing to have on a hot sunny day.
@GRNM-ro6hu4 жыл бұрын
Well....the sun can cause cancer so the umbrella is pretty useful
@bhe83364 жыл бұрын
That isn't his umbrella though...Deposits are liabilities.
@ziksy64603 жыл бұрын
My economics teacher in high school used to keep saying "The government doesn't print money! It's a recipe for disaster!" But here we are.
@billmelater64703 жыл бұрын
"teacher"
@joaquinbarocio53203 жыл бұрын
More like “ TEACH HER”
@Swagalious6893 жыл бұрын
Countries are weaponizing thier currency for trade once china has amassed trillions doing it. Your teacher was teaching on old economic warfare strategies.
@joaquinbarocio53203 жыл бұрын
Leroyyyyyyy jenkinssss
@gmarefan3 жыл бұрын
Technically the gov doesn't. It just let's a private org do it and distribute it to private banks
@quirkyork56074 жыл бұрын
If reading “money printers go brrr” is funny in memes, hearing you actually say it is hysterical
@mrleafbeef6343 жыл бұрын
If its backed by gold then the $$$ value will go up!
@julieherz89093 жыл бұрын
the Ethiopian currency is "Birr" so its funnier to me
@iohin3 жыл бұрын
18:04 I keep it looped on replay
@goatpepperherbaltea78953 жыл бұрын
Aussie version of burrr sound so good
@SimonTangers3 жыл бұрын
Kinda cringe
@randomjin93924 жыл бұрын
_How to know when it's just inflation and when it's a hyperinflation?_ Take some money, put it in the bag, leave the bag out there in the street. *Just inflation:* somebody picks up the bag, takes the money, then throws the bag away *Hyperinflation:* somebody picks up the bag, takes the bag, then throws the money away
@elmikatv4 жыл бұрын
Great tip!
@nathanseper87384 жыл бұрын
You summed up the madness of hyperinflation very well.
@will-wowdk19304 жыл бұрын
in hyperinflation money is still wortg lol you can buy things
@OopsFailedArt4 жыл бұрын
william super well spotted. Good thing this was trying to make an entirely different point. Very smart sir. Your are a true Einstein:P
@will-wowdk19304 жыл бұрын
@@OopsFailedArt XD people complain about "to much money in circulation" just give me those milions dude and see how i buy a house a car nice garden and "settle" myself for life, because i am smart enough to not waste milions in a lifetime lol..
@FingeringThings4 жыл бұрын
Last time I was this early housing was affordable
@jai-kk5uu4 жыл бұрын
Inflation bad
@freeze13054 жыл бұрын
1980?
@miavatarful4 жыл бұрын
😂😂😂😂
@jai-kk5uu4 жыл бұрын
@@alexander-mauricemillamlae4567 you mean housing bubble started right. Because if the bubble has already burst the prices have dropped and became affordable
@sownheard4 жыл бұрын
Good old boomer humor
@economicsinaction4 жыл бұрын
**Hyperinflation is coming** Me: "And my teacher said I'd never be a millionaire! Suck on it!"
@SavantAudiosurf4 жыл бұрын
Peter Schiff said there will be a 35% decrease in the value of the dollar throughout the year 2021.
@janeethapa87304 жыл бұрын
lol
@cageybee72214 жыл бұрын
@USA 2 MEXICO the value of the dollar has fallen that amount since 2000. it's not unthinkable.
@punditpounder51534 жыл бұрын
A friend of mine said, "One day we're gonna drive $100,000 cars and live in $1m homes, trouble is they're gonna look just like the cars and homes we have now."
@SavantAudiosurf4 жыл бұрын
@USA 2 MEXICOOK then, I'll go into detail of how it has already been happening for the last 250 years. A bimetallic monetary standard was formalized in 1792 with the Mint Act. It set the gold to silver price ratio at 15:1, deeming gold to be valued at $19.39/oz. The price of gold was $19.39 for 1 ounce in 1792. Today, gold is $1915/oz. That means that since the dollar was created on April 2, 1792, it has now lost 99% of it's purchasing power in comparison to gold, which is what the US dollar used to be back by when it was originally created. Anything else?
@CL-oy3jh3 жыл бұрын
"There are three kinds of lies: lies, damned lies, and statistics." Mark Twain
@brandonvillatuya95393 жыл бұрын
To be fair, he was pretty bad at math
@kaydgaming3 жыл бұрын
He had some stupid quotes at times... and he changed his name to Mark Twain to evade taxes
@Aristocratic133 жыл бұрын
@@brandonvillatuya9539 lol
@Aristocratic133 жыл бұрын
Statistics don’t lie, but people do. I know this from experience
@artsmart3 жыл бұрын
Thumbs up from me just because if Twain said it, it's probably so;)
@AtlantiansGaming4 жыл бұрын
The stock video of the dude wondering why he is being filmed at 1:26 was hilarious!
@thatjuangamer68823 жыл бұрын
Had not noticed, so funny lol
@spad47284 жыл бұрын
I'm not an economist, but: When I buy something, the money goes from me to the store, and the item goes from the store to me. The goods move in the opposite direction of the money. All of the discussions I've heard about inflation seem to treat inflation as happening uniformly across the entire economy. But, the freshly printed money usually isn't distributed uniformly across the economy, but is instead dumped into specific sectors. It will eventually spread out until it's uniform across the economy. But, since goods and money move in the opposite directions, that means the goods get concentrated as the money spreads out. The end result is both a debased currency and an increased concentration of society's real wealth among those who were lucky enough to be the recipients of the new money (analogous to executives who get extra stock to make sure that their ownership isn't diluted). Inflation doesn't just devalue the currency, it also redistributes the real wealth of society to those who are favored by the man with the money printer. This is a knock-on effect that I don't think is generally discussed enough in the public conversation about inflation.
@susanmcallister49122 жыл бұрын
You talking about black people?
@AnEnderNon2 жыл бұрын
@@susanmcallister4912 ?????? what
@susanmcallister49122 жыл бұрын
@@AnEnderNon I apologize. * Afro-Americans
@FirstnameLastname-ej4kv2 жыл бұрын
@@susanmcallister4912 no he's talking about JPM WF and BOA and thier share holders
@EconomicsExplained4 жыл бұрын
Sorry the video is a little bit late tonight guys. Hopefully it is worth the wait :)
@michaelmeng11084 жыл бұрын
It’s actually pretty early for Friday
@pojkeee4 жыл бұрын
Its worth the wait till 12 am no worries mate
@UGMD4 жыл бұрын
Bit late = decent time in US
@maruwan-dono4 жыл бұрын
na mate ; thanks a lot
@MikeSnitkovski4 жыл бұрын
This was a careful and nice explanation! 10/10 would worth again
@themongolsarecoming_94374 жыл бұрын
To rephrase your question in the words of legends: "Money printer go brrr....?"
@EconomicsExplained4 жыл бұрын
Yes, Money printer go brrr....!
@EckosamaGhostTsushima4 жыл бұрын
@@EconomicsExplained Money printer go *brrr* ..... &
@hackerbrinelam53814 жыл бұрын
@@EconomicsExplained Money printer go brrrrr
@Julianna.Domina4 жыл бұрын
@@EconomicsExplained Haha Money printer go brrrrrrr
@DarkPa1adin4 жыл бұрын
I thought BER. Beyond Economical Repair
@moneyshotcc4 жыл бұрын
Inflation is the expansion of the money supply, and prices going up is the result of more money chasing few goods and drives up the price. So inflation is NOT prices going up, that is just the result.
@AftercastGames4 жыл бұрын
Thank you for taking the time to explain this, so that I don't have to.
@TheOzembuch4 жыл бұрын
Yes, this video is taking people on the journey through the eyes of central banks and their twisted definitions of facts.
@TheOzembuch3 жыл бұрын
@Ksenzu No, exactly the opposite, it's important to get that right.
@TheOzembuch3 жыл бұрын
@Ksenzu Well my friend, you need to go a little deeper and beyond Britannica, they have it wrong too. Too many revisionists and Keynesians are running around spreading this misinformation. Many times purposely to further their way of thinking about monetary issues and policies.
@TheOzembuch3 жыл бұрын
@Ksenzu NO Sir, you just need to ignore the new changed definition of governments to serve their purpose and look at the original classic definition. schiffgold.com/wp-content/uploads/2020/08/inflation-def-768x445.png
@mikesteelheart3 жыл бұрын
When I was a little boy in the 90's my grandpa acted like if I saved a dime then I'd be a millionaire now... LOL!!!
@Freshman247273 жыл бұрын
I’m pretty sure he was trying to teach you the fundamentals of saving
@conradvonhotzendorf11283 жыл бұрын
I mean with compound interest you’d probably have a couple dollars 😂
@ivarvaw3 жыл бұрын
If you'd put that dime into assets like Bitcoin, he was right!
@electronresonator88823 жыл бұрын
yes, but a dime every day in form of bitcoin in 2009, ...the coin is so trash that the price is basically 0
@cf67133 жыл бұрын
@@Freshman24727 Unfortunately his fundamentals were based on a system that makes sense.
@Quickonomics4 жыл бұрын
The Bureau of Labor Statistics be like: "Dont skew the CPI, spend your money like nobody's watching."
@abrvalg3214 жыл бұрын
Invest into inflation, it always goes up.
@warwickeng54914 жыл бұрын
Those Zimbabweans know what's up
@caorusso49264 жыл бұрын
Stonks
@cageybee72214 жыл бұрын
jokes aside, you may be onto something. if you can plan for it you can make money off inflation.
@bachpham68624 жыл бұрын
*George Soros hyperventilating*
@NUCLEARARMAMENT4 жыл бұрын
@Steven Moore Mansa Musa was living proof of that.
@MichaelGGarry4 жыл бұрын
(In a near 100% employment situation): "People only leave jobs for a pay rise" - not even close to being true in the real world. People move jobs for a whole host of reasons, of which pay is only but one variable. Shitty bosses, badly ran companies, change of address, change of industry, new qualifications, new job role, better non-salary perks, the list is endless....
@MichaelGGarry4 жыл бұрын
Also no mention of the effect of population changes to inflation either...
@W1DO4 жыл бұрын
I only move jobs when the new employer offers better working conditions. I work from home 2 days a week permanently and can cycle to all my site meetings. Money isnt worth anything unless it can buy you a better life.
@basharlabadi17903 жыл бұрын
yeah that part didn't make sense to me, it also ignored the fact that people retire and graduate every year, so there is always a supply of new graduates, it's not a closed system
@AnimatedStoriesWorldwide3 жыл бұрын
Try to change job in a 30% unemployment economy because of a "shitty boss" then we'll talk...
@writerconsidered3 жыл бұрын
Was it a generalization? Yes. But it still holds true and half of your other reasons also have a hidden or open monetary perks. These "change of industry, new qualifications, new job role, better non-salary perks." all have some upward salary trend. Salary will also be the most important reason to move jobs but certainly not the only reason. None of which changes his argument.
@aventh11143 жыл бұрын
Whats weird is that we are always talking about this mental construct of what inflation is supposed to be and how to measure it etc. But when we talk about it we rarly talk about the reality that most people experience. Who here can say that their wage has increased each year according to the rate of inflation? What do I care how you call it, or what a few economists are debating about if the reality is that a large percent of the population is working at maximum capacity (working hours) but can afford less and less with each year?
@Rocio-op7ot3 жыл бұрын
@False I like to work tough...
@vidard98633 жыл бұрын
Inflation is a tax on savings that allow the government to spend more money. That is all it is.
@vidard98633 жыл бұрын
... he just said that low unemployment was bad... I don't care if I am paying more for labor because I will be making more, and raw resources would be dropping in value. Besides that it would just make imported goods cheaper, which is what the free trade was supposed to help with. The average people everywhere wins.
@Rocio-op7ot3 жыл бұрын
@False Eh..yes, it does, when you wrote "Nowadays the wife has to enter the workforce for the family to survive, not out of being a "free independent woman"… but out of necessity." and I just stated I do like to work. But dont worry that I got clear your position regarding taxes.
@Rocio-op7ot3 жыл бұрын
@False Ah...Ok. Fair point.; just thought you were the typical "boomer" that complains how things were better in the past -in this case how women dont actually want to work and the majority would rather be housewives but due to the current economy. Still, I dont understand why you came with such annoyed tone. at the end of your comment. Did that touch your feelings somehow? You know, it could had just been a misunderstanding from me as in this case was...
@sertank7353 жыл бұрын
“We have this crazy global economy that is based on debt and inflation.” Also, “There are these crazy people that want to balance budgets and have a balanced monetary policy in a world of runaway inflation.”
@lewis123417 Жыл бұрын
Damm fiscal conservatives wanting to ruin people's good times with restrictive monetary policy 🤣
@hamsterbrigade4 жыл бұрын
It's weird that so many of the "bad for the economy arguments" really only seem to map out to "good for employees and bad for businesses." Like unemployment being low. In demand employees leave/join companies for a lot more reasons than money.
@GalacticNovaOverlord4 жыл бұрын
Yeah, it's just what hurts the elite and rich, not what actually hurts the population.
@QuestionEverythingButWHY4 жыл бұрын
“Don't think money does everything or you are going to end up doing everything for money.” ― Voltaire
@Grizabeebles4 жыл бұрын
I hope I live to see the day when people stop counting the value of things in money and start counting value in terms of *calories.* Economics predates our current models of thermodynamics - there's no such thing as perpetual motion, ergo there's no such thing as perpetual growth. The key to a stable and prosperous economy is meeting everyone's needs while also reducing costs and eliminating overproduction. It's what every living thing on the planet already does.
@capitainebonhomme16094 жыл бұрын
Voltaire never said that Haha 😂🤣
@voxomnes95374 жыл бұрын
@@capitainebonhomme1609 He probably didn't.
@Booth-4 жыл бұрын
Everything is about money, except money. Money is about power. -Gina Reignhart
@louisejoel4 жыл бұрын
Oh but I wish I had a real garden to tend sometimes
@ivanbumaschny37584 жыл бұрын
EE: Is hyperinflation coming? Me, who lives in Argentina: Always has been.
@BennieVredestein4 жыл бұрын
Is it still bad over there bro? I hope not
@saniks50704 жыл бұрын
@@BennieVredestein it's about to get worse . Because the currency is controlled by the central bank .The dolar net reserves are negative.And to solve that problem they convert all the dollars that get into Argentina to pesos at a range of 80 to 1 ,much lower than the real value of 150 pesos per dólar. So after the conversion they use your dollars to supply the increasing demand.
@tomasfaella74994 жыл бұрын
@vertex2100 well, we have a burble in the dollar value, so the people buy it because "it will never go down"
@matilozano963 жыл бұрын
@vertex2100 We buy foreign currency, because it can only go up. It's also not advisable to deposit big quantities of USD in banks because our country has a history of using money from deposits in order to finance the central bank's deficit. In 2002 bank savings were forcibly converted to government bonds denominated in Pesos (regardless of the original currency), which was devaluating rapidly. As a result, most USD in Argentina is saved in cash today, wether in safes in banks or at homes. We don't trust the government, basically. Cars tend to go up in price, as well, so they're a good way to save value. In other words, a new car depreciates at a slower rate than the peso does. Mainly because car prices are set in USD and then converted to peso when selling.
@gonzalomorislara88583 жыл бұрын
@@saniks5070 Net liquid dolar reserves are negative, net reserves are still over 3000 mill, albeit perhaps not for long
@rhwing50953 жыл бұрын
9:20 You know the system is fucked when a reduction of consumption is seen as a bad thing. The foundation of the entire world economic system is based on debt financing. A sad tale.
@openlink99583 жыл бұрын
I mean if you buy stuff with money you dont have thats a more cultural problem, and I agree Im more for small government
@nowhereman65403 жыл бұрын
Are you taking about consumption, or the rate of consumption? If the former, you are wrong, unless you want society to return to a pre-industrial time.
@freddie79813 жыл бұрын
@@nowhereman6540 yeah... i assume he means rate of consumption.
@letobabel45193 жыл бұрын
All economies are based on debt. Money is debt.
@rhwing50953 жыл бұрын
@@letobabel4519What I mean is the economy is based on _debts growing indefinitely._ I.e., keep borrowing _more_ to generate growth.
@dudewaldo43 жыл бұрын
I feel bad for saying this but I never come away from an EE video feeling like I actually understand anything more than I did before I watched it.
@freeross3713 жыл бұрын
Pretty complex stuff, you have to take notes and break it down like you're in a class.
@Gio-ym4uj4 жыл бұрын
I wish I lived during a time when buying a house was something normal people could do. Edit: Some of you should grow an empathy bone.
@t4ntr4204 жыл бұрын
@@_patrickst actually wages have stagnated while productivity has increased increased
@nomadMik4 жыл бұрын
@@_patrickst If you compare average housing cost to average income, that just isn't true, at least in major Australian and US cities, especially Sydney and San Francisco. For my parents, an average house cost slightly less than an average annual salary. Now it's several times an average annual salary. Nationally, it's still over twice as much, so moving to a cheaper state doesn't really solve the problem, either. This is similarly true in the majority of the US… Seattle, Austin, New York, Portland, LA, etc. www.businessinsider.com.au/chart-australian-wages-house-prices-2018-3
@GeldorfMcleod4 жыл бұрын
and why would buying a house; if you could do it; not benefit the economy; more than permanent austerity ; service cuts and low wages ; for the lower waged anyway.
@basspig4 жыл бұрын
But taxes were exponentially lower back then. In 1966 my taxes were covered by 1 week of wages. Today they exceed my annual ss income.
@WellBattle64 жыл бұрын
basspig May I inquire were you lived to get such low taxes?
@KevinButler554 жыл бұрын
I find it amusing how professional the "Is the money printer causing inflation" card looks at 2:47
@Dan166734 жыл бұрын
Lol
@ThatMikotan4 жыл бұрын
I saw my name as one of the Patrons! Awesome! Thanks again Economics Explained! You are doing good work!
@Vinit.R3 жыл бұрын
Heart goes out to the man sitting sadly on the curb at 17:32. I hope he is alright.
@johnshellenberg23294 жыл бұрын
The assumption that you can only hire away employees with a raise in their salary is completely wrong, and is why companies struggle with turnover - they lack understanding of motivational theory and why people work. The idea that full employment (typically about 3.5% unemployment) is bad is a myth propagated by business interests that see any unemployment figures below 7-8% as bad - it gives too much power to labour.
@kelvinhbo4 жыл бұрын
Good luck trying to convince people otherwise. The cult of work is worst than the cult of religion.
@johanliebert67344 жыл бұрын
AH YES it is all coming together
@EconomicsExplained4 жыл бұрын
Kronk intensifies
@thelogicmatrix4 жыл бұрын
It kinda sucks how things are getting more expensive but we aren't earning more
@codycast4 жыл бұрын
Who’s “we”? I am. My employees are. Our vendors are.
@will-wowdk19304 жыл бұрын
@@codycast most people cant afford things
@OwenPrescott4 жыл бұрын
Invest in things that will become more expensive over time
@Grizabeebles4 жыл бұрын
@@OwenPrescott -- That's like telling a drowning man to "swim harder". In order to invest, you have to be able to accumulate an initial nest egg of capiital. More than 15% of workers in the U.S. are stuck working part-time jobs. About 10% of the work force were working 2 jobs before the pandemic. It's really, really _hard_ to work on your investment portfolio when you're working 60+ hours per week just to keep a roof over your head and food on the table. And before you start - if there's not enough captial to make inveatments, there's not enough capital to buy a house or go to college. It's not about skill or work ethic - it's about capable people not having inherited family wealth. If you want a system that rewards merit, make health care, housing and education human rights - life, liberty and the pursuit of happiness.
@codycast4 жыл бұрын
william super I wouldn’t say “most”. Our biggest company challenge is still finding good people who will work. We don’t even require any special skills. Just work hard. Honest. Able to communicate. $60k to start. And can’t find people.
@chillian124 жыл бұрын
Great, now we all can become trillionaires and weave baskets out of money! Always wanted a Benjamin Franklin backpack!
@EconomicsExplained4 жыл бұрын
Always look on the brightside right?
@glennh38553 жыл бұрын
You have a gift for explaining economic concepts in a way that people can grasp.
@stevesmith74133 жыл бұрын
Reminder that most economists have no idea what they're talking about.
@screenarts3 жыл бұрын
Yeah they brought us neoliberalism and look where that's gotten us
@tnatstrat74953 жыл бұрын
As opposed to... who?
@frederickdoofman50203 жыл бұрын
@@screenarts what has it gotten us
@screenarts3 жыл бұрын
@@frederickdoofman5020 The last 40 years. You do know what neoliberalism is right?
@wyattbarnes96413 жыл бұрын
None of the kainzean economists anyway
@ethanbrinkman71104 жыл бұрын
*sees video posted a second ago* Me: oh yeah time to procrastinate
@EconomicsExplained4 жыл бұрын
We understand you have many options for your prcrastination and we would like to thank you for choosing to procrastinate with Economics Explained! We hope to see you again soon.
@markonfilms4 жыл бұрын
One of my favorite ways to pass the day while I learn!
@LeRoiJojo4 жыл бұрын
Last time I was this early, a dollar saved in the mattress was indeed a dollar saved.
@iihamed7114 жыл бұрын
I just finished watching a meme of the inflation of Venezuela seconds ago and I get recommended this
@heh23934 жыл бұрын
Enjoy your stay here!
@EconomicsExplained4 жыл бұрын
The Google Gods are onto you!
@chivasowle2864 жыл бұрын
The invisible hand of The Algorithm at work.
@loc11233 жыл бұрын
"hyperinflation = game over for the economy" Argentina: ha! i can do this forever. *introduces a new currency for the 4th time in like 50 years.
@Rob-fx2dw3 жыл бұрын
It is absolute B. S. to say nobody is going to leave their work unless they get a pay increase . People leave employement for a variety of reasons including wanting reduced working hours or more suitable work hours, wanting to relocate for family reasons , relocating for health reasons, relocating for lifestyle reasons and many more factors.
@beastyms4 жыл бұрын
Can you do a video "What if there was no inflation or deflation" What kind of benefits and disadvantages would such an economy have.
@Jack-sq6xb4 жыл бұрын
Uhh is that even possible, like wouldnt the economy just break? Il not an economist so i could be wrong but the economy would just grind to a halt
@MikeSnitkovski4 жыл бұрын
any precise value like 10 or 3 or 0 is impossible to achieve in the first place even in full command economy it will be a "paper value" that only exists in reports
@garethbaus54714 жыл бұрын
It would be incredibly difficult to get 0% inflation, but the consistancy might make life simpler, definitely an interesting concept.
@capnbilll29134 жыл бұрын
Stability. And far less government power.
@WaviestMetal4 жыл бұрын
I'm studying economics so this is actually something I know instead of the wild speculation I have been seeing in this comment section. No inflation or deflation would mean the economy itself is in completely steady state. To achieve this, the amount of people operating within the economic system would have to remain constant, as would the currency in circulation, as would the amount of producers operating within the system. Even something as simple as population growth can entirely destabilize this equation, meaning it's never realistically possible to achieve in the real world unless human immortality becomes a thing. An economy is "alive" in a way, it is always in a constant state of flux because it involves the exchange of goods and currency... well across the entire globe at this point. There are far too many actors involved for it to ever remain truly stable.
@edmundthespiffing29204 жыл бұрын
I live in lebanon, hyperinflation is a thing since January.
@merlinthelemurian31974 жыл бұрын
I hope you're doing okay. I'm sure the big boom that happened there didn't help the situation
@lucianoosinaga29804 жыл бұрын
@@scratchsoft2347 wrong
@centerous4114 жыл бұрын
How much dollar today?
@habibhteit67154 жыл бұрын
kint 3am fakker inno we should ask EE for a lebanon video
@vkray4 жыл бұрын
Don’t worry. Only America can give you justice.
@wecsam4 жыл бұрын
9:35: "Why buy a Toyota Camry this year if that same money could buy a BMW next year?" **Scotty Kilmer has entered the chat.**
@michaelhunsinger83514 жыл бұрын
Scotty: "don't ever buy a BMW they are endless money pits"
@craigcarter4003 жыл бұрын
In that example it would be better to buy the Camry and invest the difference.
@applehotful3 жыл бұрын
Lol
@gemmrk3 жыл бұрын
Scotty is awesome
@johnhunt50894 жыл бұрын
"All we can do in the meantime is hope that this future is managed carefully, and make sure that we plan around this new reality" In other words, we're doomed
@MPlain3 жыл бұрын
Trekonomics. No money is the future. We don't need it.
@lesliehorwinkle3 жыл бұрын
Knocking off a zero hurts more but keeps everyone in sight of what's going on.
@whateverllllllllllll4 жыл бұрын
Thanks for another intersting video. However, I feel you missed two important points related to inflation. First, the issue of sticky wages. The second, how inflation benefits those that that have access to credit or assets which increase in value as the money supply increases. Both tend to increase wealth inequality..
@charlieross68664 жыл бұрын
Reminds me of the Good Place: of course, the opposite is also true, and precedes to make a whole new argument.
@EconomicsExplained4 жыл бұрын
Haha well the good place was certainly entertaining.
@armin10484 жыл бұрын
11:10 Would you perhaps make video on the minimum wage? Seeing as economists are usually against price controls, and a minimum wage is basically a price control on labor, I would be interested in your take. Milton Friedman had a lot to say about that, too ;)
@analcommando11243 жыл бұрын
Milton Friedman was an evil little dwarf who perpetuated an economic scam.
@slurpii46692 жыл бұрын
Mixed economies work better than traditional capitalism, you just need to compare us to Scandinavia, funny thing is that Scandinavian countries apply restrictions to everything except the minimum wage
@staygrayed10994 жыл бұрын
The stock market has suffered the impact of the virus and electoral debates and has affected major holding companies. However, market analyst see a new favorable shift coming in the market. Taking advantage of the situation and buying shares of global brands at minimum prices would be best.
@ignatibaraig11224 жыл бұрын
The stock market is appreciating with various stocks like, gold, , bentoil, AMZN, SHLL, NVR, PLNHF13. I've gotten a 120% increase this year. Actually great thanks to Paul my fund manager and analyst.
@vicencalbets6123 жыл бұрын
Deflation has always been said to be bad because it is very bad if you own money, but it's very positive if you have money. Now ask yourselve who has the more debt in a country and who has the more savings. Yep, the goverment has the more debt and the ordinary people has the more savings so, why do you think inflation is said to be good? and deflation is said to be bad?
@redhidinghood93374 жыл бұрын
When will we see "Economics of Economics Explained"?
@vilimcvenk13234 жыл бұрын
he made it already
@redhidinghood93374 жыл бұрын
@@vilimcvenk1323 where?
@richdobbs65954 жыл бұрын
As somebody with a bit of exposure to Austrian economics, I do not endorse this message. I like the AE definition of inflation better: Inflation is a general increase in the money supply. CPI is a kludgy estimate of the effect of inflation for a particular part of society. In particular, it is subject to Goodhart's law: "When a measure becomes a target, it ceases to be a good measure." For those folks that will eventually retire, it is idiotic to ignore the increase of share prices that is driven by increasing the money supply. For somebody actually paying for things, it is pretty clear that CPI is a poor government joke. Food, healthcare, education, housing... They're all gamed in the CPI. That said, since the purpose of the current inflation is to prevent the collapse of stock prices, it seems unlikely that it will be lead to lead to hyperinflation. Instead, it will be managed to lead to a controlled increase of prices in the stock market, for the benefit of a shrinking number of folks that meaningfully participate in the stock market, with the net effect of collecting in assets from victims to the beneficiaries. Hyperinflation won't happen in the USA as long as the system keeps at least 10 carrier groups functional.
@thewhitefalcon85392 жыл бұрын
"Inflation is an increase in the money supply" is a useless definition. We have a term for an increase in the money supply. It's called an increase in the money supply. It doesn't need another name.
@youtubesucks80243 жыл бұрын
If inflation is bad but deflation is worse, why not keep inflation at 0?
@RWAfuture3 жыл бұрын
Today it's not about return ON capital. Today it is about return OF capital.
@tims93763 жыл бұрын
What does this mean?
@dekyl9353 жыл бұрын
'inflation is something take for granted these days' laughs in greek 'deflation is worse than inflation' cries in greek
@MardukGKoB4 жыл бұрын
Ten years ago, Arby's used to have special offers of five sandwiches for five dollars. Today, the equivalent special deal is two sandwiches for six dollars. That sounds like prices have tripled. But if you look at the official measure of inflation, which in the US is not based on consumer purchases, you'll see that it comes nowhere near the actual increase in price. My grocery spending has roughly doubled in the last three years. Not reflected in the official inflation rate. I say, bring on the inflation - inflation is good for debtors and bad for creditors. In the current circumstances, almost anything that is bad for creditors is good for the economy. Also, what increase in unemployment payments? Not many people actually got that extra money, and a lot of people were even denied the ordinary level of unemployment. I know three people who lost their jobs, all qualified for unemployment and the extra money, only one actually got unemployment at all and he didn't get the extra amount. The "stimulus" was just another big corporate welfare program, designed to cripple the economy. It's looking like starvation will break into the top ten causes of death in the US this year, and maybe top three next year. It was 44th in 2017, according to the CDC (it's called malnutrition there).
@darknecropsy4 жыл бұрын
“inflation is good” says the wealthy economist while your average joe can hardly make it to next month and is a hospital visit away from ruin while everything around him is getting more and more expensive...
@MikeSnitkovski4 жыл бұрын
I don't understand... if you are poor, just stop being poor... /sarcasm
@caorusso49264 жыл бұрын
lol just buy cake lmai
@NagorbMan4 жыл бұрын
Yeah, Inflation is good for banks and rich people who have money in assets. Its also great for people who are up to their eyeballs in debt (like every government). For everyone else its at best neutral assuming their inflation adjusted wages are the same for the same amount of work, and more likely they're just losing money. The real suckers are the people who are responsible and save their money and don't spend more than they have.
@sebas82254 жыл бұрын
The rich part is that when the average joe wants to invest, it usually ends in a scam or a robbery, where the bank gets away with it case State money print, etc...
@thegypsy87794 жыл бұрын
@@NagorbMan Those people better wake up and buy some stocks, silver, and gold
@tariqueanwarmulla4 жыл бұрын
So me being unemployed is helping my country 😀
@McRemmyBaby3 жыл бұрын
Yessssss
@tariqueanwarmulla3 жыл бұрын
@@McRemmyBaby sadly I am not helping my country anymore 🥲😂
@TheSwedishHistorian Жыл бұрын
@@tariqueanwarmulla 😢
@mwbgaming284 жыл бұрын
The problem is when prices increase faster than wages Look at the poor bastards on centrelink, even disability pension is insufficient to pay the rent outside of government housing, now imagine living in private rental on less than $300 per week (for all household expenses)
@gregmark27523 жыл бұрын
Bitcoin trading is much different from just saving your coins in your wallet. It involves trading bitcoin under forex
@pjdaniels87383 жыл бұрын
How does this whole bitcoin thing work, I'm interested in it and I'm willing and ready to invest heavily in it but I'm gonna need an assistant from any trusted and productive professional
@morrisondavid57073 жыл бұрын
You don't really need someone to tell you how to invest your coins, you can make research on your own and also try doing it yourself first.
@anntonop80293 жыл бұрын
@@pjdaniels8738I will recommend Hudson Trading Services for you their strategies is working for me at the moment and making good profit from bitcoin
@techvision25083 жыл бұрын
Bitcoin is truly the future, Investing in it now will be the wisest thing to do especially with the current rise
@pjdaniels87383 жыл бұрын
@@anntonop8029 Hey are you there ? How can I reach him
@hweigel5284 жыл бұрын
I still don't understand why "wage inflation" is so bad (15:31) according to conventional wisdom. Worker productivity rose over the past several decades, so shouldn't we expect/promote a proportional amount of wage inflation? Maybe I'm just a center-left armchair economist, but it seems like the fiscal policies which "defend against" wage inflation exacerbate income and wealth inequality.
@richdobbs65954 жыл бұрын
Stock price inflation is good. House asset inflation is good. Education inflation is acceptable, because we need an educated workforce. Healthcare inflation can't be argued against or you want to people to die. Wage inflation is apparently "real inflation".
@Arhpeco4 жыл бұрын
I woud also prefer more in deph explanation or real world example. More money (to a point) might lead to less workhours, less burnout, greater satisfaction, better productivity and more spending (simmilar to german or french economy) building a fundation for strong middle class that coud afford paying a little more for produced goods.
@richardallen15554 жыл бұрын
It’s all about comparisons if you inflate all wages costs equally you haven’t actually payed people more value you just increased the number
@hweigel5284 жыл бұрын
@@richardallen1555 Not necessarily! As the video discusses, the "Consumer Price Index" is the main metric used to measure the harmful effects of inflation. As far as I know, there's no law which says that CPI and wage inflation MUST be highly correlated. Most goods are price-sensitive, they won't get more expensive just because consumers have more money. If I understand correctly, the typical argument goes: "Well if wages rise then companies will have to spend more on labor, so they will be FORCED to raise prices." But large companies have saved record amounts of liquid assets and spent record amounts on unnecessary buybacks in recent years. So I don't think this is a legitimate argument either.
@ritwikreddy56704 жыл бұрын
@@hweigel528 "Most goods are price sensitive, they won't get more expensive just because consumers have more money". That's where you may be wrong. Most goods are price sensitive, and that's why they get more expensive as consumers have more money. If consumers have more money, then the value of the money vs their time and comfort decreases. They would want more goods since they have better value to price ratio now( essentially like buying an item on sale). And since most productions have very little flexibility in volume of goods produced, the output of goods remains almost constant ( unless there is a technology breakthrough that enables better production). This drives the demand up driving the prices up. It definitely won't cancel out the effect of increase in wages if the goods output remains constant or increasing, but if output is decreasing like now, it may.
@menguardingtheirownwallets67913 жыл бұрын
The price of food is rising at 15% per year, but the government says that inflation is only 1%. Yeah, right.
@ashthegreat13 жыл бұрын
And house prices going up 10% year on year sounds a whole lot like inflation too.... but let’s not include that everyday expense in the calculation. Gets in the way of the statistical ‘narrative’. Definite oxymoron there right?
@jamesholt73403 жыл бұрын
I've seen no increase in the price of food,maybe exotic fruit but a gallon of milk is only $2.30 ,same for the last 15 years...gas is only $2 a gallon compared to $4 10 years ago
@DumbledoreMcCracken3 жыл бұрын
@@jamesholt7340 agree. There can be no PRICE inflation without WAGE inflation. The median income is flat or declining. Millionaires have to pay at lot more for luxuries, like Hypercars. But those are discretionary purchases. Things people must buy can't go up if people don't have more money.
@iWambo3 жыл бұрын
DumbledoreMcCracken the statement there can be no price inflation without wage inflation is not true. Idk where you got that idea. Wage inflation can be a cause of price inflation but without wage inflation, tax inflation will also causes price inflation.
@DumbledoreMcCracken3 жыл бұрын
@@iWambo where did you get that idea? My statement is relatively well known if not popular in economics.
@marcusw41074 жыл бұрын
" This videoes sponsor is you" meanwhile i get four commercials in this video 🤣
@comet10622 жыл бұрын
Do you have a podcast? I feel like you’re engaging enough just as audio.
@alysonbritta43124 жыл бұрын
stock has a relatively high short interest. there recent earnings report was way better than expected. I think they may also see high short term gains.
@smolmanager35114 жыл бұрын
How do you reposition your stocks to be more profitable, do you manually pick them?
@EckosamaGhostTsushima4 жыл бұрын
hyperinflation is already her- money printer go *brrrrrrr*
@sunname62524 жыл бұрын
It feels like there are 3 main take aways: 1: In an ideal world, the relative value of currency would be constant, but since this is realistically impossible, having it trend slightly so that currency is worthless is easier to handle than the inverse. 2: A 100% competitive employment rate is unsustainable as it creates a feedback loop of having to outbid everyone else. (Possible solution? Have a non competitive base line, IE Government sponsored construction that feeds everything else) 3: As long as money keeps moving, the printer can keep going. If everyone was given a million dollars, and goods/services supply was able to satisfy the consumption of that million dollars, no harm done, but if the supply of goods and services can not meet the new demand, costs go up and the value of that million goes down.
@mikeg9b4 жыл бұрын
1. Maybe not. Constant money sounds like the gold standard. Most economists think leaving the gold standard was a good move. Here's a video trying to be balanced in showing both sides of the argument: kzbin.info/www/bejne/fJOni2OFl7eLnKc 3. This has nothing to do with your comment, but here's a good video on the money printer (and its effect on stock prices) if you can think deeply enough to understand it. I wasn't able to, but maybe you'll do better: kzbin.info/www/bejne/gWTPgWZ4nduhidE. Ben Felix has the best investment KZbin channel I know of, BTW.
@brunorohden74134 жыл бұрын
The original definition of Inflation is the expansion of money supply, while the increase of price levels are its result. The definition has been changed to benefit the government, as the expansion of the money supply is the government falt, the overall increase of price levels are the capitalism fault.
@sebas82254 жыл бұрын
Socialize the losses, privatize the gains, how the rich get richer and the poor get poorer.
@chillinchum4 жыл бұрын
How did you come to these conclusions?
@brunorohden74134 жыл бұрын
Some study, look for the old definition of inflation, you will be able to find on old dictionaries if you access to those. From that point on you will need some research, if I'm not mistaken Rothbard wrote something about it, but the objective behind changing the definition was never explicit, nor could it be, with some common sense you will reach it.
@Tate.TopG.4 жыл бұрын
@@brunorohden7413 wow, I didn't know anything about it. We are getting played by the system.
@QoraxAudio2 жыл бұрын
@@brunorohden7413 That's not an old definition. That is the definition of inflation. But people often confuse lower value of money with higher prices of products, since they tend to be inversely proportional to each other.
@HavaWM2 жыл бұрын
I’m here, 21 months in the future, to answer that last question: INFLATION! Inflation won out. We defs did not increase taxes. And, what a super prescient video. It was a little uncanny to listen to you describe what was going to happen in the future (lots of job openings putting an upward pressure on wages; stagflation; it would have to be inflation or tax increases…) You were spot-freakin’-on. 😳
@WhatIfTrayvonMartinHadAGun Жыл бұрын
2 years later, it would be a great time for a new video on this topic...
@MaxSnowDude2 ай бұрын
This youtuber is ahack who knows nothing about economics
@redmeat4vegans624 жыл бұрын
Blast from the past - Stagflation. But my experience of what was happening in America in the late '70s and the brief explanation you gave of stagflation do not add up to me. And it is likely because I need for you to do an excellent explanation for what happened to the US economy in the '70s. Could you please, please do a video of the US economy of the '70s?
@caorusso49264 жыл бұрын
People that don't experience stagflation will never understand, same thing with hunger
@cageybee72214 жыл бұрын
Tl;DR the 70's suffered stagflation because of a fuel shortage that dampened economic growth while boosting up prices, combined with a recent abandonment of the gold standard that spiked inflation.
@cageybee72213 жыл бұрын
@Liberty Meister I would also throw in *Kapital volumes 1-3*
@cageybee72213 жыл бұрын
@Liberty Meister ah so you only read economics books that agree with your politics. shoulda just started with "i'm a hack" and let us all know to ignore you.
@ftlengineer4 жыл бұрын
The thing with inflation; it is a form of entropy. If going from inflationary to deflationary will cause problems, so will going from high inflation to low inflation. The rate of inflation is a ratchet which does not naturally decrease. For this reason, I am concerned that once inflation does catch up (and it must; the money pool is increased and the amount of goods and services produced are down) that the inflation rate will never be able to return to a healthy level. 50% inflation per month? Probably not beyond one month, anyway. But we could wind up trapped in the 10% per year range, and that would likely force stagflation. Ultimately, I do not find the arguments against deflationary policies convincing. Sure, going from inflation to deflation causes problems, but fundamentally it just encourages different behavior. An inflationary economy encourages borrowing, deflationary encourages saving. I prefer deflationary because saving is a fundamentally healthier norm behavior than borrowing, but either of them will have problems if you exceed the 5% per year range.
@hadynharris4943 жыл бұрын
surely governments will increase taxes when things get back to normal to remove excess money from circulation?
@JOCoStudio13 жыл бұрын
@@hadynharris494 Yeah, but you can't expect them to increase taxes in the right places so it will still disproportionatly affect the poor in a big way.
@whitesquirrel41313 жыл бұрын
It's funny because none of the money is backed by anything, just slave notes. Sounds smart though. I hope you were well educated on the scam. Life is a circus, the rich are the carnies, and you rubes are the suckers born every minute.
@ieuanmartin78453 жыл бұрын
It's true but deflation and increased savings severely slows down the economy. Look at Japan. The Japanese Government have had to spend huge amounts to prop up the economy due to the fall in domestic demand
@tylerbrown44832 жыл бұрын
Wow. Almost all of that was treacherously wrong.
@pinned.byjohnmichaelgodier17264 жыл бұрын
A financial crisis is a great time for professional investors and a horrible time for average ones. Think deep..
@BBC....4 жыл бұрын
@Adrian Henry Which is the best asset to invest? I want to know.
@pnnedbyRabbiSimonJacobson4 жыл бұрын
Gold or bitcoin
@PinnèdbyAndrewMoMoney4 жыл бұрын
@@pnnedbyRabbiSimonJacobson Gold is physical, Bitcoin is digital and has strong cryptography. Bitcoin is the new digital gold
@cryptocapitalventure60964 жыл бұрын
Don't see bitcoin investment as a risk, in every success there is always a risk, the ability to take those risk makes you successful.
@thinkmedia57054 жыл бұрын
The recent trend is the fact that crypto currency traders can never be poor. Thats always my motivation
@christopherweston60283 жыл бұрын
I'm curious how automation will effect these systems and if traditional responses to the fluctuation of indicators will keep the system in balance.
@dannydaw593 жыл бұрын
When there's deflation people are still going to buy what they need like food, utilities, gas. They're not going to wait to buy those things they need.
@varghen03 жыл бұрын
Exactly. And nowadays (with inflation), people don't hoard food, utilities and gas fearing they will be more expensive the next year. Small inflation and deflation doesn't make people care about that.
@ChaotikmindSrc3 жыл бұрын
That thing about deflation being so terrible is bullshit, we have seen no country dying of deflation, on the opposite there are plenty of inflation catastrophic exemples.
@bonbi163 жыл бұрын
@Chaotikmind bc deflation is less likely to happen
@ChaotikmindSrc3 жыл бұрын
@@bonbi16 That's kind of a moot argument, since gov always push for an inflationary system...
@ChaotikmindSrc3 жыл бұрын
@@bonbi16 And btw a lot of economist disagree with that
@spacecanuk83164 жыл бұрын
Was going to say that the inflation over the last while seems to be more in the capital markets than the ground level economy.
@Griffatron30004 жыл бұрын
When your ADHD kicks in and you're just staring endlessly at b roll footage
@FinanceOptimum4 жыл бұрын
😂
@the_haakinton89243 жыл бұрын
YES
@megapet7773 жыл бұрын
I hate that.. I dont think I have ADHD though lol
@peacemaster81173 жыл бұрын
@@megapet777 Google "ADHD test" and find out, it's quick and free.
@isaacyoung18683 жыл бұрын
In the last 14 months, i can count at least 3 separate memorable instances of things i wanted to buy, but still can't buy simply because it just isn't available.. how does that figure into inflation?
@natalie0219833 жыл бұрын
Supply and demand. If supply is low, price increases - causing inflation. However, if supply resumes soon after, price will revert to normal due to competition from other sellers.
@RightCenterBack3213 жыл бұрын
Great video, but we AREN'T paying off our debt via taxes. The debt is so astronomical and federal spending so out of control, you could strip Americans of all their financial assets and you'd pay it all off at the cost of making Americans broke. This is what Thatcher meant when she said, "The problem with socialism is that you eventually run out of other people's money."
@ismammursalin32513 жыл бұрын
So what are the effects of hyperinflation on the stock market? What does this mean for ppl who are not in the stock market and does that mean the price of stocks in a couple years?
@theMPrints3 жыл бұрын
That means for you : your savings are gone within weeks , in some cases your payment bacames worthless within few hours , you can buy a box of matches ....the best thing to do exchange your money to some more stable foreign currency .Or buy somethig physical , like gold , food reserve, a new car.......
@emmettobrian18742 жыл бұрын
Inflation is bad if you HAVE money. It's good if you OWE money.
@Sanjayd19984 жыл бұрын
5:34 I think you meant "Heisenberg's" consumer price index haha
@TinosNitso3 жыл бұрын
I believe high inflation is coming in a few years from now, specifically after interest rates go up. Normally that would reduce inflation due to forex - if fewer USD exist they should buy more. However, higher interest rates increase the costs of most businesses directly, and they'll be forced to raise prices. I believe inflation will be much more than 3% - the system will fail. The problem with current economic theory is it fails to understand *global* inflation. Btw gold is overpriced compared with other metals (e.g. platinum).
@QoraxAudio2 жыл бұрын
Well, inflation took off quite rapidly now and increasing interest rates is exactly what they're doing.
@morphos23 жыл бұрын
One of the problems in what you're stating at 14:20 (that I don't quite agree with) is the fact that government spending is not immediately a good thing if the spending is occurring on non-transactional goods that happen to be redundant... like a second highway parallel to an already existing highway (side by side).
@sertank7353 жыл бұрын
The Australian government also has locked down and has caused the death of at least 4 infants through their incompetence.
@jaydonly23364 жыл бұрын
If there is hyperinflation then they better start bartering again, who wants a goat?
@EconomicsExplained4 жыл бұрын
I will give you 2 pounds of nutmeg for yer goat.
@jaydonly23364 жыл бұрын
Who do u think I am, the Dutch?
@SvenDzahov4 жыл бұрын
@@jaydonly2336 I got a hardy nephew who can work in a mine, he's your for the goat if you throw in travel expenses
@merlinthelemurian31974 жыл бұрын
For your goat, I offer a magical bean.
@Steve-gn4hk4 жыл бұрын
5 cases of toilet paper for your goat.
@po1nt17764 жыл бұрын
Economy explained: Its safe to print money when demand is low and supply is high. Economy explained half a year later: Is hyperinflation comming?
@thioga14 жыл бұрын
He's as consistent as global economy.
@bluemountain41814 жыл бұрын
But supply isn't high atm, it's low
@capitainebonhomme16094 жыл бұрын
Inflation is still extremely low despite 10 months of "printing money"...
@po1nt17764 жыл бұрын
@@capitainebonhomme1609 You mean right now. You do realize inflation doesn't show over night.
@Dan166734 жыл бұрын
@@capitainebonhomme1609 if you go on crooked cpi measurement. Money follows different paths so there is lots of inflation to find
@JoinTheTemple3 жыл бұрын
The sad thing is that in a well working economy you would of course get periods of minor inflation and minor deflation but overall, in the long term, there would be slow but steady deflation. Ie. your money would be worth MORE over time, not less. The reason we do not have this happening is because we don't have free markets. Instead we have heavily regulated markets and especially the scourge of central banks. You fundamentally do not have a free market economy when the most important price in the whole economy (i.e. the interest rate) is fixed by bureaucrats rather than supply and demand. That and we have a fiat currency supply, rather than a sound money supply, which central banks can print (or in this day and age put into a computer) like it's going out of style. With interest rates set by supply and demand and sound money, what with improvements in technology, production, supply chains, etc we should be seeing every day items becoming cheaper. Inflation ruins our economic lives. Especially for the poorest in society. And discourages saving and instead encourages spending in the here and now because we know our currency will be worth less in a few years, not more. Government and central banks are mostly to blame for our consumer driven societies and the boom and bust business cycle. We need government out of the economy entirely to actually make it work well for us all, rather than the elites. Really very sad.
@theoriginalmarkz4 жыл бұрын
Inflation is the market correcting for poor monetary controls. Your goods are not becoming more expensive, your money is becoming worth less due to over printing. Supply and demand works with your currencies as well....
@freckrpeckr4 жыл бұрын
Nice video, but I would have mentioned how house prices (the main cost for households) isn’t included in the CPI, also how the substitution of good works in estimating inflation and how this can downplay inflation, and finally how technological forces, especially going forward, can easily contribute to price deflation. Thoughts? Cheers.
@ColtonRDean4 жыл бұрын
1% to 3% inflation annually for the sake of psychological comfort is like cutting a pizza into four huge slices instead of eight regular sized slices so that your one double-size slice feels like you’re getting more than eating two regular-sized slices. If I didn’t get a raise or bonus for the year, but my $50k annual salary had the buying power of $51k next year I would both notice by having extra money to spend, it would enhance my lifestyle and help perpetuate the economy. The idea of continued moderate inflation seems like “trickle down economics” with extra steps. The rich and top 1% get to use freshly “printed” money for their interests before the value of it has been diluted. By the time the 99% get their “raise” it’s just keeping up with the cost of living (inflation) essentially zero real increase in salary. The idea of unemployment getting so low that it could negatively affect the economy sounds as mythical as the “invisible hand” of a “free” market. If unemployment were to hypothetically get so low, maybe that would be an appropriate time to actively deflate the money. Then companies seeking workers could afford to offer better pay an benefits without extra money. Then the merits of the company alone would have to attract talent.
@Danny_6Handford4 жыл бұрын
Inflation is always much more likely and much more devastating to a nation’s economy than deflation. History has shown that continuous and steady inflation or hyperinflations will always wipe out the value of the nation’s money. Just about every nation that existed has had the value of its money wiped out by inflation. I don’t think the value of a nation’s money has ever been wiped out by deflation. The modern economy of the future has to be based on sustainability not growth and for this to occur new economic models will need to be developed where it is normal and OK for the economy to contract or expand. Presently, if the economy is not growing it is considered a failure. If equality and prosperity for everyone is the goal, the thinking that the economy always has to grow needs to be changed to the economy needs to be sustainable. I do not think it is possible for an economy to be sustainable if it is always growing.
@droptimistic4 жыл бұрын
I thought it said 4 months ago, then I realised it was 4 minutes lol
@RikNewbury2 жыл бұрын
Inflation (according to Austrian economics) is actually defined as the increase in money supply, not the (related) subsequent rise in prices.
@WindGodMatt3 жыл бұрын
What if you set up a second currency that's value was based on the hyper-inflated currency? Like 1 Super Dollar = $1,000 hyperinflation dollars? And then adjusted the exchange over time until you phased the inflated dollar out completely?
@andrewa97004 жыл бұрын
Hard to beat hyperinflation when you have an excess of unemployed people with skills looking for the same jobs making for a hyper aggressive market. Especially when you factor in those people have a standard of living they were expecting to keep since they have done nothing to deserve a cutback in their QOL. Those that don't get jobs that pay the same will be hit by recessions the worst. and what demographic is that. Mostly young inexperienced college age people and older people that are looking to retire within 5 years.
@si9lix64 жыл бұрын
Inlation leads to an incentive structure that has the following effects: 1) It encourages consumption in the present. 2) It encourages going into dept. Meanwhile, both consumerism and the over-indepted state of our nation, corporations and people are blamed on capitalism while what actually drives inflation is the central bank printing money which has nothing whatsoever to do with the free market.
@mattw97643 жыл бұрын
Money printing did not just start in the way you implied. It has been going on continuously at some level.
@brainndamage2 жыл бұрын
All the reasons you said deflation is bad, are actually good in my opinion: -prices of goods fall over time: reduces consumption: environmentally friendly bacause people only buy the things they need, incentivizing delayed gratification -disincentivizes debt: good because debt is basically slavery -wages: reward long term employment, because if kept at the same pay, the value is higher over time -shrinking minimum wage: no problem if it tracks the deflation rate of goods, in other words your money is worth more over time, so you need less of it So what I see is good for the common man. It's not good for anyone who uses debt to pay for themselves, and who uses the debt based economy to skim money without providing any actual value or added worth to the actual product. So banks, lenders, governments, etc. The thing that doesn't make sense to me is that, to paraphrase, disincentivising debt will make innovation very hard. I'd argue that most innovation that actually benefitted all people, was made by inventors and businesses who didn't primarily use debt to fund themselves.
@brainndamage2 жыл бұрын
Also another point you made regarding inflation "makes people richer over time" is absolutely not true, the value of your money goes down over time, even if you get more of it for your work (your pay tracks inflation) the price of goods will go up as much too, so you didn't actually gain any real value, just the number went up (but value went down). Who really got richer is anyone who got a cut of the inflation money: the money created by central banks, regular banks, loans, government handouts, etc. (because that money is actually stolen value from anyone with already existing money). So if your money lost value, your goods prices went up to cancel out any real effect of having a higher amount of money has, and other people who got the stolen money now actually do have more money AND value than they did before: the only people that got richer are the ones who got that stolen money, you actually got POORER relative to the new average.
@brainndamage2 жыл бұрын
What it boils down to, in essence, is a pyramid scheme. A highly obfuscated, deeply layered and structured pyramid scheme, but a pyramid scheme nonetheless. Any currency not backed by any limited resource will always end up as a pyramid scheme. This is why you used to have gold/silver backed currencies, or in modern times cryptocurrencies that are limited by a mathematical equasion: it turns them from a pyramid scheme into an actual store of value.