Macro: Unit 2.6 -- Classical v. Keynesian Theories

[@svvetlanalana]

omg this is perfect. You literally just wrote my entire exam for me!!!

[@YouWillLoveEconomics]

Glad I could help!

[@theparadigm8149]

I hope you don’t literally mean “literally” in this case… 🤭 that would be plagiarism!

[@roseydays]

i loved the way you used the graph to show a real live example of the great depression, made a lot of sense

[@YouWillLoveEconomics]

Awesome! Glad it was helpful. Thanks for the feedback!

[@grantrobertronquilloiii]

It helped me a lot understanding this topic especially during this COVID-19 pandemic. My professor just gave us a handout and voila.. exam is real. Thanks for explaining this as briefly.

[@TheRAYZ87]

I've been listening to my macro professor for a month talking about these theories and couldnt understand a single word she was saying. problem solved in 13 minutes xD

[@YouWillLoveEconomics]

This may be the best comment I’ve received yet! I’m so glad that I can help you when you need it most. Spread the word! Thanks for the feedback and the support!

[@madampresident2053]

Watching this video all the way from South Africa University of South Africa 3rd year student. Thank you for making me understand Keynes in a simple way.

[@suhaila2055]

I couldn't understand the difference between the two theories and I searched through the internet but nothing came close to this video. Thank you so much!

[@YouWillLoveEconomics]

This is fantastic to hear! Glad it was helpful. Thanks for the feedback!

[@2Fa2Bu]

this is one of the best explanations of keysesian theory. thank you so much.

[@vinboscotomy7128]

Just Amazing. You should be named as the - "The Best Economics teacher". After 1 year of learning macroeconomics, This 10 mins helped learn more than Ever.

[@hossainjoki3146]

What I did not understand after hours of lecture and study; Got it quite clear in 13 mins! Thanks a lot!

[@cheyannecummings3655]

This was very helpful. Your delivery was effective. Thank you

[@YouWillLoveEconomics]

Awesome! Glad it was helpful. Thanks for the feedback!

[@lifeisnotajokee]

Hi Mr. Willis, I didn't just love economics but also your style of teaching.

[@alicenyakundi4568]

this is a very wonderful class that enlightened my mind in economics.my teacher gave me very mere explanation but now am at a position of helping others to understand.

[@sujeetkumar-pd9gd]

Your 13 minutes video was better than three month session of my teacher. Thanks for making it. If possible please make video on application of game theory in macro/micro economics

[@MoizRafay]

This is an incredible explanation. You did what books and professors failed to do. Thank you god for bringing this to me.

[@sohanchanda8042]

really the best explanation seen so far really this 13 minutes is much better than the semester explanation in colleges

[@islandchic5345]

Just wanted to leave a thank you comments section . Your video was very helpful, with it I was able to easily grasp the concepts

[@ashfaqahmad4172]

thank you for helping others! really this was my first and fruitful experience. very clear and interesting short lecture!

[@brisa5104]

I like how describle every detail in a single video. You're fun and can teach better than my professor

[@robertbuen7390]

Glad I found this video. Helped me understand my weekly ECON lesson in under 15 minutes!

[@busingyenamara5620]

Thank you.you're heaven sent 🥺

[@anindyamitra2880]

As an economics enthusiast , this is gold. Great explanation

[@tapipayang933]

Thanks a lot.Though I had to decrease the playback speed to .75x in order to think and understand what you were saying. 😂 Your video editing was very good and helpful too.💗 Subscribed to your channel. Keep up the good work.

[@nadaimran521]

Can relate

[@saminaa6802]

Thank you so much! This helped me understand everything the night before exam

[@Dicepit12]

Love it, Thank you, I needed some clarity for the BEC portion of the CPA. That was perfect.

[@kadityasrinivas1665]

This guy is a genius in teaching concepts.

[@nitinkarnwal519]

Really cleared all the confusion. Thank you Will.

[@leohuo4263]

I really needed some background knowledge into how these 2 theories worked in order to do my explanation of the AD-AS graph

[@janesele8653]

God bless you, I really enjoyed watching you and I understood it . Thank you so much

[@xaleavemealone15]

Could you also make lecture videos on international trade theory and econometrics? loved your presentations!

[@anshudwivedi326]

This is by far the best video which explained Keynesian Theory

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[@Baqiabdulaal]

Clear explanation

[@johnsolomonlegara2248]

Honestly, this is a gift from heaven hahaha

[@erinf4y]

I had to watch in .75 playback speed to follow but thank you so much!!! this was so clear and to-the-point

[@soumyajeetmitra6958]

THANK YOU SIR for your short brief history and summary based answer to this much asked question☺️

[@jakkulapraveen611]

Nice presentation and explanation.....thank you

[@SwatiPrasad0925]

The best explanation ever! Thank you!!

[@toxicmaniax5719]

Watching this b4 exam tomorrow

[@hakeemkazni4241]

On point. Thats a 60 page textbook right there in 13 minutes.

[@21dolphin123]

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[@zebrapurple13]

“Landlord's right has its origin in robbery. The landlords, like all other men, love to reap where they never sowed, and demand a rent for even the natural produce of the earth" - Adam Smith

[@imnotgeorge5490]

Here's another good one from Mr. Smith: "The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it." Chapter XI, Part III, Conclusion of the Chapter, p. 292 (in my copy)

[@darictesfaye3808]

Thank you for a very clear and interesting presentation of the topic!Just Perfect!

[@tlee5284]

Thanks man , this is just one of the greatest

[@YouWillLoveEconomics]

Awesome! Glad it was helpful. Thanks for the feedback!

[@tzutzu6455]

THANK YOU YOU EXPLAINED IT BETTER THAN MY TEACHER!

[@YouWillLoveEconomics]

Awesome! Glad it was helpful. Thanks for the feedback!

[@robinmanley9946]

Thanks for the clear explaining 😊

[@omkumar4717]

it is very goog and conceptual video. liked it

[@alexdaniel7137]

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[@polypoly7966]

Very persuasive. The simple angled line of other explanations is replaced by the kinks and Keynesian zone. Deficit spending to the rescue. So far so good....but how do we get the stimulus reversed without causing another slump? Your video neatly made the point for rescue spending, but when do we tax to cancel the new fiat dollars? Greatly enjoyed the lesson.

[@nicolodesandre120]

Why do we assume that aggregate supply is fixed?

[@paulaewert9494]

This was an awesome explanation! thank you so much for sharing your knowledge with us!!

[@kristenscanlon3914]

Thank u so much for this video! You explained things so well!

[@idealjyo6671]

He summarised a 95 pages chapter for me, thanks 🙏

[@umarfarooqmulla9016]

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[@froggy1854]

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[@bonkchoy7936]

fantastic video thank you so much for your effort

[@sabinef2872]

Thanks. Your video was great and very helpful.

[@YouWillLoveEconomics]

Awesome! Glad it was helpful. Thanks for the feedback!

[@HankHill1]

What an excellent breakdown. Awesome.

[@oc_vatsal_1197]

Could you please make a video on how Keynesian Theory applies in today's modern world. Amazing videos!!

[@NewhamMatt]

I'd love to see a video of how Keynesian theory either failed or failed to be correctly applied in the recession of the 1970s.

[@Mpivovitz]

@@NewhamMatt the 1970s was a supply side shock (oil shock) which caused input prices to rise and hence inflation.

[@deborasteinke8343]

I LOVE ECONOMICS W YOU

[@thabisomokhosoa]

Absolute gems here man

[@curtisw187]

Thanks so much, very clear and helpful

[@YouWillLoveEconomics]

Awesome! Glad it was helpful. Thanks for the feedback!

[@fatmataconteh9602]

Oh my goodness thank you so much

[@wajidkarimkhan9717]

Sir you are phenomenal

[@regianealvesdbj]

Thank you so much for this lesson. It helped me a lot

[@alexmarvin3093]

I always wondered why I didn't think much of Hoover...

[@edfl4913]

Great video and explanation!

[@b-io]

Very nice and concise! Thank you!

[@kentmusgrove5038]

I always thought that there was a lot of "voodoo" in economics. This lecture starts with the premise that economics "has laws", yet then goes on to talk about the importance of the invisible hand. I am more classical than Keynesian, but all economics depends upon customer preference, and un-measureable satisfaction.

[@imnotgeorge5490]

@@pain5835 Are you saying von Mises is correct, or just pointing out his debunked theory? It's actually need and desire. When need and desire outweigh price, the purchase will be made, no matter the cost, assuming the entity can afford it. When need and desire are not there, it won't be purchased, no matter how low the price. Please do not confuse microeconomics and econometrics with macroeconomics. They are not the same.

[@kaiyunng1057]

Amazing explanation, it helps a lot, thanks!

[@dgfcl56ify]

thank you SO MUCH! Super helpful, I actually enjoyed economics for once, haha!

[@darshitagarwal3850]

The video is really helpful, thank you.

[@EwertonSilveiraAuckland]

Great, perferct ... Thank you

[@Abdul-Y]

classical economics for normal times and Keynesian for recessions

[@candaceb2470]

you made this so plain and simple thank you! i wish you were my professor lol

[@madportuguese2006]

A very interesting and helpfull explanation

[@monalizasee1645]

Thanks for explaining it well 😊

[@bensumner5653]

Great video, thank you.

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[@florenceledesma1629]

Thank you for this very helpful video.

[@basiaklos6925]

Thank you! So helpful!

[@YouWillLoveEconomics]

Awesome! Glad it was helpful. Thanks for the feedback!

[@annameigirl]

this is fantastic thank you so much

[@YouWillLoveEconomics]

Thank you!

[@SA-pi3zm]

You should try and work with PBS, we need a national educator on economics.

[@xkurly9874]

I don't understand how the classical theory addresses the business cycle however and the failures of the market in that respect?

[@mmetally]

Great Video..thanks man!

[@S3rvOnpb]

I only read 2 out of the 9 macrobook and you helped me in my paper with 13 mins. Lol

[@zakielmi1418]

amazing. thank you.

[@1.minute.teacher]

Thank you my friend. Let's become eternal Friends. Stay healthy.

[@heathersockrider5428]

Well done. I hope it is okay for me to share this with friends, as a tool, so they understand my viewpoint.

[@graceanne3065]

Very well simplified and expounded. Have you done one on Institutional Economics and Alfred Marshall?

[@amandaromero7573]

Thank you! This was very helpful!

[@ioanacoutinho2572]

Thank you so much 😊

[@jiwangurung9780]

This was a great help 👍👍👍

[@YouWillLoveEconomics]

Awesome! I’m glad you found it helpful. Thanks for the feedback and the support!

[@lindachinenyenwafamilusi6787]

Well explained! Thank you

[@papunsahu6519]

Sir your video is just amazing ,,,,,tq sir

[@sid1680]

The Classical theory, although based on the laissez-faire principle, does have a role for Government. Oversee monetary supply and ensure it is proportionate to growth in output. Agree the economy entered the Keynesian range during the depression. However, the cause was the failure to increase the monetary supply. It resulted in banks and businesses going bust, and concomitant unemployment. The Classical Theory would have worked quite well if only the monetary supply had been increased in the period of monetary contraction that brought on the depression. In the end, Government did step in, a little too late though, with monetary expansion (the same kind of response that could have been provided earlier). In essence, the laissez-faire principle works well. It was Government action of not increasing the monetary supply that brought on the depression.

[@imnotgeorge5490]

Try reading "The Great Crash, 1929" by John Kenneth Galbraith, "The Myth of a Rational Market" by Justin Fox, or "Lords of Finance: The Bankers Who Broke the World" by Liaquat Ahamed for a deeper, and more correct view of how The Great Depression occurred. A slavish adherence to Classical economics (aka neoliberal, neoclassical, and the Austrian school) was the cause, not the cure.

[@imnotgeorge5490]

P.S. There are many more I could recommend since I've been exploring the subject of macroeconomics for the last 12+ years. No I'm not an economist, nor do I pretend to be but I am well read in the subject, with some economics education.

[@hbb7528]

What is the differences between Keynesian and minsky

[@nthperson]

If only Keynes had remembered what Winston Churchill had warned about the destructive impact of monopolies and monopoly privilege. In 1909, campaigning for a seat in the House of Commons Churchill told the British people that monopoly was the inherited enemy of democracy and of justice. He added that the monopoly of land is "the mother of all monopolies." Churchill's solution echoed the teachings of the Scot political economist Patrick Edward Dove. Government should impose an annual tax on those who control land equal to the potential annual rental value of whatever land is held. Keynes somehow managed to ignored the growing redistribution of wealth associated with the concentrated control over land (broadly defined). Land blessed with natural resources to exploit was climbing in value. The same pattern was occurring in the cities where commerce occurred and population was increasing.

[@arthurntembula]

Thanks. it was so so helpful.

[@grantbeerling4396]

Perfect explanation.....

[@YouWillLoveEconomics]

Awesome! I’m glad you found it helpful. Thanks for the feedback and the support!

[@mamadasdrotaz]

Question: In the classical model is the AS curve for the short or long run ?