Keynesian Economics Explained in 60 Seconds

Keynesian Economics proposes a path out of economic recessions: government spending to 'prime the pump'. Keynes believed that stimulating demand during tough times will lead to economic improvement as people will have jobs and money to spend in the economy.
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Sources:
Noesgaard, D., Yoshida, D., Colless, R., Phui, L., & Fielding, J. (2010). Understandings of ideologies. Don Mills, ON: Oxford University Press.
Image Sources:
Coronavirus stimulus update, CBNC, www.cnbc.com/2...

[@KorczyksClass]

You can check out some more of my Economics videos here: kzbin.info/aero/PL-MZyeaK_bhseLsGwrrrtWjiSiYO6oPIt Or perhaps Global Politics is more up your alley? Check those out here: kzbin.info/aero/PL-MZyeaK_bhvgZfBQ_AfjizWO27-YzXeB To what extent are Keynesian economics a good recipe for solving a recession? Let us know in the comments!

[@FernieAriel]

Holy shit, he really did explain it in one freaking minute.

[@RakelaK67]

he left out the part where it is a complete failure, though

[@grunklesmuff]

@@RakelaK67 wdym?

[@hectoralmendrosmartinez8990]

​@@RakelaK67Sure, because everyone knows the New Deal as a great failure...

[@ruinedlove2615]

@@RakelaK67you can understand this is a failure by boom parts and another recession that people are starving hahahaha

[@geoms6263]

on short is propaganda that justify inflation

[@fierybl4de400]

this is insane i actually understood this lol thanks a lot

[@KorczyksClass]

I'm glad you found it helpful!

[@mouwersor]

So it favors an increase of taxes and an increase in inflation... I think I know why it's popular with governments...

[@PieIX]

That's it, ignore completely the remedy offered.

[@petemercurio8638]

Monitretism/neoliberalism is used in most of the world. Cuts to regulation and social services especially occur and the left version has universal healthcare or medicade food stamps SSI and Medicare in the US and can be far right to center left) with A centralized government and police state. Kenshin economics are for emergency prevention like the depression it helped the people out of but maby not the depression WW2 did The 2007-8 recession and 2020/2021 COVID relief funds medicade expansion and FS increasing till next mo. Monitretism is going into debt for corporate US and some for regular people.

[@petemercurio8638]

John him self said to pay off the debt later and monitretism and free trade/neoliberalism are by far more popular. In A emergency like 2008 or 2020 the economy had to be stimulated when almost everyone was home. They had lil choice. That's when we are Kensian in America.

[@atcqmm5916]

As someone that doesn’t understand economics how can you have higher taxes and high inflation? Won’t you utilize taxes to reduce inflation?

[@rumertey]

​@@atcqmm5916 Inflation happens when you have more demand of goods and services than supply. When you print more money and give it to the people you increase their spending, you increase the demand but the supply of goods and services is still the same. You can reduce consumer spending by increasing taxes but then you're also reducing production and investment, which reduces the supply of goods and services even more. This is why Argentina has inflation and a lot of taxes. You can mitigate the risk by increasing taxes to the consumers but not to the producers, this is why Scandinavian countries are extremely expensive for the people but their corporate taxes are lower than the US.

[@glitteryroses]

thank you so much. i've been looking for a brief refresher for so many minutes. this is a literal spec of gold.❤❤

[@KorczyksClass]

Glad I could help!

[@Zt3v3]

It seems the USA only subscribes to the 1st 1/2 of Keynesian economics......

[@indonesiandef]

>taxes should be increased to slow down the inflation I don't think Keynesians understad economics enough

[@notemdyyy]

I don’t think YOU do bro😭

[@rhythmandacoustics]

The central banks also does it to an extent with interest rates, Not necessarily the same but close enough . Higher rates to reduce inflation and lower rates to stimulate growth.

[@mustafaashraf3744]

I just subscribe to every educational channel I learn something from.... That's the least we could do

[@unruly_ronin]

You just like me fr

[@mustafaashraf3744]

@@unruly_ronin 👍🏻👍🏻

[@Nik-y9s]

Keynes wrote in India big books about the probability mathematics but does not master the axiomatic approach but only arithmetical calculus.

[@DarkMeyer777]

Basically what we need is for wealth to be spread evenly, not stay in the hands of a few. So modern day economis actually doesnt work for modern day life

[@DistributistHound]

Then you might be interested in Distributist type of economics such as Georgism, Scottish Social Credit and Distributism itself

[@peterponcedeleon3368]

Spend more money we don’t have. What could go wrong?

[@georgekollias4702]

what a madman he did the unthinkable and he looked great doing it

[@BitcoinBrotha1]

Haha I wish they used the cycle how he originally wanted. Seems to be they’re addicting to deficit spending

[@kayedal-haddad]

Neo-Keyneism vs. New-Keyneism vs. Post-Keynesism vs. Keynesism?

[@Wearenick]

You did it.

[@jackparker8686]

I have an epiphany to alleviate the work problem.... Jobs for whip handlers.... Kind of like the motivational speakers and exercise therapist....

[@CDs_YouTube_]

It would destroy the value of the money you have in savings and investments.

[@grunklesmuff]

yes, too much spending or monetary expansion can cause inflation, but good governments consider these risks. Also, inflation is caused by multiple factors, not just the government, and good fiscal and monetary policies can balance between stability and growth in the economy.

[@jfs5873]

Your investments in things like stocks would be destroyed during recessions and keysnian economics helps address that and reduce the harsh impact on companies. Some minor levels of inflation (around 2%) are also necessary for growth in the economy, and most savings accounts offer some APY returns. The government also currently issues bonds that automatically match themselves to the inflation rate.

[@Masterix.]

​@@grunklesmuffThat would work in perfect world, but reality is that politics isn't made with good intentions or by heart, but by greed for money. And majority of voters don't care about their vote that much, because from view of individual, nothing will change by one vote. It's simple economic calculation. Why should a voter spend a ton of time for research just to get lost between others?

[@grunklesmuff]

@@Masterix. If you think Keynesian economics doesn't work in reality, wait until you hear about neoliberalism or laissez-faire. There are ways to improve voter apathy and political greed. We can invest in civic education and implement strong transparency and private finance limiting measures. There are also historical examples of successful Keynesianism such as the post WWII economic boom and the Swedish banking crisis.

[@Masterix.]

@@grunklesmuff Education will do nothing with it. If it would, we could make everyone a mathematician. But as you surely know, not everybody is mathematician. Why? Because most people simply don't care. They have other interests. You can't make someone a mathematician against their will same as you can't make general population research every candidate, every economical direction etc. etc. And "successful Keynesianism" heavily depends on your definition of "success". I don't see inflation, debt, money losing it's purpose (store of value) and distortion of the market as "success" myself. Plus Keynesianism is still applied today, so why we don't see the success of post-war years? I think it's because Keynesianism is an unsustainable system even if world would be perfect and politicians were educated and had good intentions.

[@hugopereira2241]

It should also be noted that the spending during the recession should come from government debt and not tax revenue. Otherwise the ammount of money in the economy stays the same. The debt can be paid via multiplier effect.

[@jackparker8686]

Lately demand in our city seems to be for tents... And I'm actually seeing signs that say Tents for sale with arrow pointing.... I guess there should be more work for sidewalk builders... To build around the tents... I'm actually seeing construction considerations for these tent cities that are ubiquitous... Like bike Lanes... Seriously... They are narrowing the street temporarily

[@unruly_ronin]

Amazing work mate

[@KorczyksClass]

Thanks!

[@danpatterson6937]

Give us examples of when that worked without the expected excess spending and inflation.

[@grunklesmuff]

Sweden 1990 financial crisis

[@danpatterson6937]

And that is a good example of recovery but it looks like it was without government injection into the money supply, but rather a support of otherwise sound banks. Is the attached summary accurate? The government took a private, decentralized route and inflation was hammered down. Isn't that different than the US fed approach of flooding the banks with pools of funds (the exxcess spending I mentioned)? I am an amateur so any pertinent education is appreciated. www.ebrd.com/downloads/news/berggren.pdf @@grunklesmuff

[@jackparker8686]

One syndrome of one experiment lately is insane complacency.... Not wanting to work because it will stop the disability check.. for. (Depression from not having work)

[@hajo2024]

Many economists view this as the reason the Great Depression lasted so long.

[@user-dp9ky9io3t]

I love you bro for this

[@KorczyksClass]

Glad you found it helpful!

[@jackparker8686]

These would be motivational speaker jobs are not just for anyone.... Guys with an aptitude.. . guys like Samuel Jackson... With a lot of spirit... Add a good smile...

[@CursedCommentaries]

Bros been to fight club :D

[@kylemcgowan1]

There is definitely no way out now. They’ve made sure of it.

[@tractorenjoyer9310]

Keynesian economics be like: If we blow up every house, we'll make a lot of jobs for construction workers.

[@grunklesmuff]

this misrepresents Keynesian economics, it doesnt say to nuke houses for the economy. It emphasizes government spending during downturns to stimulate the economy

[@cjpearce1407]

No critical thinking skills

[@MP-ut6eb]

No brain 😂😂😂on

[@flyingspaghettimonster2925]

​@@grunklesmuffhe did say 'digging the pit and filling it' is the way to go

[@isaac95395]

thanks. all i needed

[@KorczyksClass]

Most welcome!

[@coldflu]

Keynesian economics is an invention like the credit which fuels it.

[@adaliadiaz4108]

thank you for this!

[@KorczyksClass]

You're very welcome! I hope you found it helpful. 😁

[@oEDLIo]

So this is why we're in **** right now.

[@daMacadamBlob]

The automatic subtitles think this is Vietnamese

[@johndough1264]

How do we create perpetual war?

[@rando_webb8704]

That seems like an overly uncheritable and simplistic take on it. Don't get me wrong, I don't believe Keynes had a good economic model, but It wasn't the worst.

[@flyingspaghettimonster2925]

I've seen way more uncharitable takes, this was nothing

[@jackparker8686]

Whatever kind of economics..... In theory demand create supply by influencing entrepreneurs with big ears... Weather it's good for us or not..... Desire for chocolate bars , fishing rods... And easy chairs... No further demands noted.... Sounds like trouble who's working a job....

[@jesusornothing3231]

The question is not whether demand will increase production. The question is whether the means by which we increase production have a negative reaction to the economy. If increasing spending and raising taxes is the way you have a flawed system of demand side economics

[@regissh1623]

Great video! But I have a question, how can the goverment directly put cash in people's hands? I woud be very grateful if you can answer

[@Fundamental_Islam.]

May be by printing more paper

[@PieIX]

In Canada the govt sent out cheques or direct deposits to the citizens to help them get through the pandemic crunch.

[@laurel7175]

Stimulus money.

[@bruceshowalter6046]

Interesting how the other replies don't truly understand what you are asking.

[@fezzes428]

@@bruceshowalter6046 what exactly is he asking then? transfers are how the government directly puts money into people's hands

[@garycombs5721]

The Keynesian multiplier is total BS because all government spending is, at best, a zero sum gain.

[@T.N.S.L.P.P.B.N.T.S.O]

This was tried during the great depression and thanks to that it lasted longer

[@grunklesmuff]

actually, at first, the government was more Austrian/laissez-faire and there was limited government involvement during the Depression. The depression length was also influenced by different responses and global factors. It's unfair to blame Keynesian economics for the duration of the depression.

[@hectoralmendrosmartinez8990]

Capitalist economic system: 1. Liberalize the economy 2. Speculation soars. 3. Economic crisis due to financial speculation. 4. State intervention in the economy. 5. The Economy stabilizes. 6. Return to position 1.

[@UzmaKys]

This video is 71 seconds long,nice try

[@sarban1653]

The explanation of Keynesian Economics is 60 seconds long, the other 11 seconds are a recommendation of where to learn more about it, not part of the explanation of how Keynesian Economics works.

[@UzmaKys]

@@sarban1653 it’s a joke

[@hsreed4]

The biggest problem with the theory is how the government spends the tax receipts. In 1970, about 35% of the poor population was reliant on government assistance. Today, about 65% of the poor population is reliant on government benefits. Essentially, the government has eliminated the lowest tier of the workers. Increased tax receipts should be used to pay down the debt incurred while spurring the economy, not used to continue spurring the economy and making people reliant on government spending.

[@pulsarhappy7514]

The idea of liberalism is to make people extremely poor so that the CEOs lead the world on top of their ivory towers while exploiting workers. Then depending on the government, the idea is to redistribute some of this wealth to the population by taxing these CEOs. So yes: most of the population need the state to survive. It is because of the way liberalism promotes the theft of the worker's value by the CEOs, and the only way for them to get the money they deserve is through the state taxing the parasites on top.

[@pulsarhappy7514]

@Mao LeBron Some others are planning bunkers and electric collars to hold their bodyguards in check.

[@grunklesmuff]

it 1970 the government was more neo-Keynesian/Chicago school

[@jjseandxcefree]

but they keep dropping taxes on the rich

[@valvevac-systemchecker3773]

Mate you know that the rich pay most of the taxes already? We have a progressive tax bracket as is. Can you elaborate what taxes are dropping for the rich. Buzzwords don’t mean much if you can’t substantiate them with examples and evidence

[@cosmicdebris2223]

Keynesian economics, I keep hearing, is now dead. It no longer works in modern economics.

[@microsoftpain]

it didn't work from the beginning. the consequences have only now caught up to us and it is the result of keynesian garbage.

[@S888A-KenObi]

Keynesianism: Preventing small fires so that the entire forest can burn. I think that's accurate.

[@YourillegalDad]

Government should spend money during recessions which increases money supply , cash flows which stimulates demand in market and at one point this leads to inflation. To curb inflation increase tax rate during period of economic growth

[@KorczyksClass]

Thank you!

[@DistributistHound]

Did Keynes said there was no equilibrium in investments or something similar?

[@mvred100]

You missed that Keynesian wasn't even an economist; these were just ideas that haven't worked for years.

[@dominuseterro9866]

they work bether than fake free market