The Circular Flow Model of a Market Economy

[@monpaps1]

wish all teachers could xplain like this, indeed teaching is a Art..

[@reasonerenlightened2456]

==========< There is the owner and the employee.>========== Ultimately, the 'Employee' makes the products, takes those products to the market, sells the same products, he made, to himself and finally he pays a fee known as Profit to some 'Owner' for a permission to own the same products he made and sold to himself. The owner gets to collect profit for doing nothing.....and many call that 'earning' instead of 'taking'. The way forward to a better society is to increase and maintain a strong minimum purchasing power of the end-consumer using the magic formula. (Magic Formula: 'Your minimum Purchasing Power' = 'minimum wage' + 'Benefits payments' - 'Cost of dignified living from cradle to grave' - 'Taxes, fees, penalties') Firms are no more "legal entities" than your back-up power generator is a "legal entity", and it does not matter if it runs on fossil fuels or if a bunch of humans must run on treadmills all day. Firms are just property and should be treated as such by the laws. Save the minimum purchasing power of the human citizens instead of saving businesses/firms.

[@SebastianJimenezOwO]

@@reasonerenlightened2456 You think businesses, society, or the government should pay everyone’s taxes…? If that somehow worked it really be the ‘magic’ formula

[@reasonerenlightened2456]

​@@SebastianJimenezOwO If we aggregate all humans into one individual then he/she/it would be an Employee for a business, and an owner of the same business and government and a voted for that same government all at the same time. Then, what happens depends on the minimum purchasing power of that aggregated individual i.e. stuff can be built, rules can be set to follow, etc. but ultimately the minimum purchasing power must exist first before anything can happen (like having oxygen and nutrients in the blood stream before any movement or thought could exist.)

[@poritoshpall4947]

@@reasonerenlightened2456 2

[@nofear519]

Thanks! You teach better than my professor.

[@reasonerenlightened2456]

==========< There is the owner and the employee.>========== Ultimately, the 'Employee' makes the products, takes those products to the market, sells the same products, he made, to himself and finally he pays a fee known as Profit to some 'Owner' for a permission to own the same products he made and sold to himself. The owner gets to collect profit for doing nothing.....and many call that 'earning' instead of 'taking'. The way forward to a better society is to increase and maintain a strong minimum purchasing power of the end-consumer using the magic formula. (Magic Formula: 'Your minimum Purchasing Power' = 'minimum wage' + 'Benefits payments' - 'Cost of dignified living from cradle to grave' - 'Taxes, fees, penalties') Firms are no more "legal entities" than your back-up power generator is a "legal entity", and it does not matter if it runs on fossil fuels or if a bunch of humans must run on treadmills all day. Firms are just property and should be treated as such by the laws. Save the minimum purchasing power of the human citizens instead of saving businesses/firms.

[@praxym9293]

Same here

[@stoneg5500]

I went a whole semester trying to understand this just to understand it from watching 10 min of a KZbin video. Thanks

[@babyhokzz]

9:21 Money is flowing clockwise. Goods & Services Counterclockwise

[@drevil530]

Sir, you are a gentleman and a scholar!! Thank you for simplifying the concept of Circular Flow.

[@kceey_dc]

Finally SUBSCRIBED!!! You good at Economics man🔥🔥🔥🔥🔥

[@irakliiakobishvili4386]

In this one lesson I have learned more than in four years at the University.

[@jamie4king]

Your videos are also being linked as supplemental material in classes from the University of Alaska. Thanks for making such great videos!

[@celarz]

Everyone in the comments says: WOw! You saved me for my final tomorrow! I dont have finals... I'm in grade 8... Why did my teacher make me watch this...

[@jaggermcfarland8405]

broo same

[@mona-checkoutmychannel7656]

🤣

[@Madebotix]

Exact same here

[@eze1022]

Because adults still don't know this info lol

[@plamediepoulain738]

😂 😂 😂 😂

[@silikamokgotlhoa7193]

for a person like me that does distance learning your lecture came in very handy. many thanks...

[@Bonari11]

Explained clearly and in a simple way how the Circular Flow Model works. Thanks, Jason!

[@joegonzalez6211]

Jason.. From the bottom of my heart, thank you!!! With watery eyes

[@levimisilim6415]

thanks a lot..this video had helped me understand clearly the market flow......... God bless u sir. i think i'm ready to report this assignment to our class on monday.. thanks again.

[@miekecoetzee49]

Thank you so much! I tried to understand it by my self and struggled so much! This is straight forward! Thanks Jason!

[@elzerorbeso5789]

Thank you! I am not an economist but your lecture helps me a lot in my teaching.

[@nilofar728]

Thank you so much for this video, you teach way better than my lecturer.

[@925NC]

studying for a macroeconomics test, thank you! please make more!

[@MostBeautifulPIaces]

THANK YOU YOU SAVED ME FOR MY FINAL TOMORROW!!!!

[@YM-CRAFTY]

THANK YOU AND I REALLY APPRECIATE YOUR EFFORT, IT WAS A LITTLE COMPLICATED FOR ME BUT YOU MADE IT LOOK SO SIMPLE AND EASY.

[@RealityStar9]

Great presentation. We all live this everyday so its nice to see it simplified in such a way. Of course, there are a lot of variables but that would be a very long video. lol

[@JayKabin]

love the song at the beginning

[@VKDiaries]

Thanks for explaining it in simple words. Appreciated.Concept is so beautiful

[@richardkalembwe1328]

this is an awesome explanation of circular flow of income model

[@looley_leewilliams337]

Thanks so much for this video I'm about to write a test and this gave me clarity❤

[@amandaosborne7721]

Much better explanation than my text. Thanks!

[@simon2912]

Great video, thanks for putting this together. Really clearly explained and illustrated.

[@maitumelomemorylepodisi1929]

This was so helpful and I understood better thank you Mr Welker

[@proplib]

Towards the the end the flows (clockwise and anti-clockwise are mixed up).

[@plamediepoulain738]

Thanks I was wondering

[@sonuponu343]

Very helpful 🙏❣️

[@KyleGoMthw]

This is really helpful. Thank you for an insightful discussion of the topic!

[@arnoldkanarek3585]

Best video on the circular flow that I have seen.

[@yinzjagoffs]

I love it when I randomly click a video on economics and see someone with an an-cap flag used as their avatar. A much welcomed sign of the times.

[@5stardagger]

awesome lesson, i understand it more clearly now, much appreciated Sir

[@amirwagih4797]

this is a video from 2012 but man you nailed it , thanks alot.

[@glenhael]

Awesome as always Jason!!!

[@manceseed]

thank you so much! your video was the only way I understood this topic!

[@ivalinapasse2469]

That was a sure fire way to break Down the flow of money

[@rafiymellow1364]

wow..amazing..now i understand it clearly👏..thank you

[@masausozulu4812]

this an awesome explaination of circula flow of income model

[@JUSTFORFUNJAZZ444]

It helped alot❤️❤️

[@justinoboyle5767]

Thanks so much Jason. This was very useful

[@ViJocelyn]

What song is that in the beginning?

[@jackmarshall5911]

I know this is an old vid but this helps me out a lot. thanks!

[@ladradepaz2888]

This helped me a lot, you explain so well

[@danielschannel1992]

Yes. My question is what are the goods and services that are being bought and sold.

[@keepingupwithmimi5675]

Omgeeee thank you soo much , you have cleared the clutter in my brain

[@babylynsalanga9868]

truly helped me in my report.. thank you so much

[@jobethcrafton1119]

great video

[@twahrah]

Thanks you for posting! This helped me so much.

[@economyxai]

Great Video. Small point, you mis-spoke at 9:12 when you said money flows counter-clockwise and goods & services flow clockwise. It's the other way round.

[@charlies77777]

Sorry about asking a stupid question, thank you for explaining it to me.

[@ashleyanddavian]

great video, i understand stand this concept so much better

[@JasonWelker]

Interesting opinions!

[@safgenimac898]

Ive got a Final test 4 days from now Thanks I saved Meh!

[@baloney6893]

Well so I simply could of just skipped all my online classes and just watched this video and got an A plus lol like if you agree

[@sarahlmarcelin5424]

I hope that my professor would be as wonderful as he is

[@R123k4]

Ohh thank u soo much for teaching in such a nyc way ( will really helps a alot in midterm few days far )

[@amrsamir3693]

Do u have a 1 explaining philips curve

[@akirajournals]

I'm a little confused, what you explained in the diagram and all, money is flowing clockwise while goods and services flows counterclock wise so why did you say the opposite of it??

[@ramibecharalebfr]

I liked your video. Till the end. I don't think i happiness equates consumption. I believe that through savings a person can seek to maximize his monetary as a end of itself. The goal being a rise in social status or a preparation for children etc.

[@brainisnotbraining]

Thank you so much for explaining.

[@akg7612]

Do you have any sources you can refer to?

[@Kilimicore]

Thankyou! u r much better than my Prof!

[@gallegom58]

thanks i got a midterm tomorrow :)

[@luffylaw1996]

@Jason Welker I have a question sir, What if the entrepreneur owns its own land? Would it be possible that the entrepreneur will only acquire Human Resources and Capital from the Households? BTW, this is a good video. :)

[@taylorstrasser9666]

THIS HELPED ME SO MUCH THANK YOU!!!

[@tierneyeducation]

Great content!

[@AverageDoctor345]

Excellent job

[@proplib]

Entrepreneurship (that earn profit) should also be regarded as a vital resource (factor of production) in the process. Without entrepreneurship nothing will happen.

[@Zztop514]

Thanks for that! Student from Dawson College!

[@Shibadoge]

money really does make the world go round

[@chepah69]

Thank you for making this video.

[@TheKb07]

keep uploading... nice work

[@CynthiaTToney]

Enjoyed the video! Hope it helps destroy that catch-phrase "trickle-down economics."

[@tahaezz2127]

I wish u explain CFA material. Pleeeeeeeeeeaaaaaaassse. 🙏🙏🙏🙏

[@BoppanaAkashAP]

you just said it soo damn easily thank you very much

[@kristychan7789]

THANK YOU SO MUCH FOR SAVING ME

[@proplib]

Definition of a market can be expanded to include that it is a process by which prices are established - not just a place.

[@craignielsen9173]

Great video.

[@Soyo.Kaze.]

My text book video made this so much more complicated than need be

[@thaotranphuong8678]

Thanks ! It helps me open my mind

[@safgenimac898]

You shoulg get that checked out

[@Vivenk88]

I like how he just copy-pasted the money at 5:06, if only I could do that LOL

[@ishadrums]

so the resource market is concerned with production while the product market is concerned with consumption

[@pooryam6538]

But in this case, the household earn less money than its spending since the product of the firm is more expensive than the resources. Therefore, as the cycle flow model keeps going, the household becomes cheaper and cheaper and firms becomes richer and richer till the point that house hold cannot buy anymore. Am I correct?

[@bigivel]

If the household cannot buy anymore, than the product will stop to be bought and the firm will have less money, and so will have less resources and so less profit.

[@vijjiapple]

Thankyou so much!! makes so much sense to me!

[@ichigoxpsy]

Very good video

[@pallaksinha2679]

Please give me ideas to convert this concept in working model

[@LucisFerre1]

Exactly. Separation of free market and state.

[@shounaksarkar1480]

Sir, is bank a household?

[@etepip]

amazing video im seeling feet pics for an spare bag in gpo

[@ratonelneilcyrusg.]

clearly explained, ty

[@Thee_leprechaun]

thank you this really is helping me to study for my major exams

[@stellaunya5192]

Thank you so much. Now I understand.

[@z_geist]

What do you mean or does it mean by HOUSEHOLD?

[@chldndyd21]

Great video thank you!

[@gudgirl_666]

THank you, very helpful explanation

[@reasonerenlightened2456]

==========< There is the owner and the employee.>========== Ultimately, the 'Employee' makes the products, takes those products to the market, sells the same products, he made, to himself and finally he pays a fee known as Profit to some 'Owner' for a permission to own the same products he made and sold to himself. The owner gets to collect profit for doing nothing.....and many call that 'earning' instead of 'taking'. The way forward to a better society is to increase and maintain a strong minimum purchasing power of the end-consumer using the magic formula. (Magic Formula: 'Your minimum Purchasing Power' = 'minimum wage' + 'Benefits payments' - 'Cost of dignified living from cradle to grave' - 'Taxes, fees, penalties') Firms are no more "legal entities" than your back-up power generator is a "legal entity", and it does not matter if it runs on fossil fuels or if a bunch of humans must run on treadmills all day. Firms are just property and should be treated as such by the laws. Save the minimum purchasing power of the human citizens instead of saving businesses/firms.

[@tbcfc]

Very Helpful Thanks A lot.🤙🏻

[@generalsongs2495]

this is very helpful but in my book there is another "factor?" the taxes and foreign sector

[@mohaljassem9494]

Thank you so much, that was helpful

[@pavankambo8681]

I wish I had a prof like you