The Economic Megathreats That the World Has No Answers To | Economics Explained with Dr. Roubini

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Listen to the full interview with Nouriel Roubini on Spotify: open.spotify.com/episode/1Rth...
Dr. Roubini's full book: www.littlebrown.com/titles/no...
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Economist Nouriel Roubini discusses potential Economic Megathreats including the end of globalization, easy money leading to stagflation, the growing debt crisis, AI's threat to worker and consumer-based economies, and climate change. While economists cannot predict the future, understanding worst-case scenarios and offering solutions is crucial. The video explores the solutions to these problems and ends with a fun "Economics Explained National Leaderboard" to rank the global economy.
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The Economic Explained team uses Statista for conducting our research. Check out their KZbin channel: / @statistaofficial
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[@paulh.6543]

The more you learn about economics, the less you know about economics.

[@sakinkhan]

This is so true!

[@WiseOwl_1408]

Indeed

[@huhulalammm]

and the more depressed you get

[@efx1213]

Applies to every major

[@CapnSnackbeard]

These days being an economist is a bit like being a cross between a priest and a sports announcer.

[@zichenglong6992]

As someone majored in industrial engineering, I want to point out that just-in-time systems were known to be fragile, and I was taught that it's more of a concept than something that actually should be executed by the book due to risk evaluation. What really should happen is that a good engineer should identify areas where the risk to supply chain is high and keep higher stocks in those areas, and drive areas where the risk is low to be more lean. However, companies, especially with its shareholders, will push aggressively for that magical "just-in-time" system regardless of risks, as it improves short-term profitability/price competitiveness…

[@guzzis3]

Yeah but when it goes pear shaped we (the engineers) still get blamed cos the AH managers duck and cover.

[@avroarchitect1793]

Almost like Engineers who know their products and industry should lead companies not business majors who do nothing but try to cut corners.

[@devluz]

The thing is if you have two businesses building cars one is going 100% to just-in-time and the other is taking a safer approach then the first company will constantly outcompete the second. Once the next crisis hits the second is already bankrupt. This is why we need regulation to handle this. Our economy will always push towards higher and higher risks when there is a long time of stability.

[@guzzis3]

@@devluz You don't need a major crisis to wreck the JIT company. The difference in efficiency reduces margins slightly with stock piling but it's not definitive, it won't be enough alone to send them bankrupt, but the JIT company will experience enough disruptions over time through good and bad periods that overall profitability won't be greater and bankrupcy more likely. I've seen this in real life, not theory. Toyota for example implements philosophy intelligently as is appropriate, not idealogically and absolutely, that's why they are still around. The devil is always in the detail. Managers don't deal well with details...

[@zichenglong6992]

@@devluz That's why I had price competitiveness as part of the reason why share holders would push for that just-in-time model. Now, to be real, I think if the shareholders and executives are willing to sacrifice short-term profitability for long-term stability by taking less payout, the price competitiveness can still be achieved. But yeah, the way how a "free market" functions is quite unfriendly to long-term planning. The worst part is that the system is showing its cracks, but we still haven't found a good substitute…

[@weepingcamel1]

"the poor are going to bear the brunt of the impact" is 1 conclusion that can be safely put into any economic analysis.

[@superkingoftacos2920]

That's called capitalism

[@weepingcamel1]

@@superkingoftacos2920 it's more social darwinism

[@Jac486]

@@superkingoftacos2920 Yeah, because under Capitalism some people aren't poor, while under communism everyone is poor so everyone suffers equally.

[@carsonrowe8948]

Well, alot of the modern global economic system has hurt the middle class and created more poor. In the United States at least. Offshoring may have resulted in cheaper goods, but it also took good jobs and sent them overseas. Where cheaper labour was exploited both in pay and how they have been treated. The environments of these counties destroyed. And the real winners are corrupt politicians and corrupt buisiness men. See china, Brazil, and India for example.

[@katarzynakapusta2525]

​@@Jac486 Somalia or Bangladesh or Haithi are capitalist too, ask an average Joe out there if he is safe from all troubles thanks to the riches that capitalism brings about

[@hannahdonald9071]

According to Bipan Rai, North America director of FX strategy at CIBC Capital Markets, "there is growing concern that incoming data is showing that the Fed may be slightly behind the curve than perhaps they expected heading into this year." More red than green is seen in my portfolio. How are other people in this making huge sums of more than $350K in this downturn?

[@trazzpalmer3199]

Sincerely, unless you're shrewd yourself, it would be wise to seek advice straight away. We are in a severe recession, and everyone is running out of money, I can tell you as a business owner in both the service sector and as an eBay reseller of all product categories.

[@graceocean8323]

@@trazzpalmer3199 I agree, that's the more reason I prefer my day to day invt decisions being guided by a init-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a init-coach for over 2years+ and I've netted huge.

[@tampabayrodeo2474]

@@graceocean8323 we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?

[@graceocean8323]

My Financial Advisor is MARIA JULIANA RAMIREZ. I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can run a quick online research with her name if you care for supervision. I basically follow her market moves and haven’t regretted doing so.

[@tampabayrodeo2474]

@@graceocean8323 She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.

[@thejecs8]

Imagine being a younger millennial, seeing the effects of the 2008 crisis, currently dealing with the effects of a giant market bubble, hyperinflation, being unable to buy a home and trying to stay positive 😅😭

[@ultimaIXultima]

Here's an "old" millennial is saying the same thing.

[@frigaid]

think about COVID, you don't want to stay positive 😅

[@quillofthewest2781]

You've accurately described my daily existential struggle. Getting reeeeeally tired of living through one "once-in-a-lifetime" crisis after another...

[@nation5743]

You are in the "Weak men create hard times" period.

[@InvestmentJoy]

Depends on your peer group. Alot of millenials got into skilled trades and high growth sectors in markets that weren't overpriced and are doing well.

[@in2webelieve997]

Watching the numbers come in for each category was like watching IGN shower a game with praise and then give it a 6 out of 10

[@in2webelieve997]

Lol

[@aronseptianto8142]

i mean, it's above average

[@markaberer]

@@aronseptianto8142 You mean...

[@maxis2k]

Earth: 4/10 too much water

[@Daniel-yy3ty]

@@maxis2k and most of it is too salty... yuk 3/10

[@PatrickBurford1]

Toyota who created Just In Time, practice it very differently to most major corporations. They selectively stockpile certain products, to avoid disruptions. Like microchips, which is why they weren't as affected during the shortages

[@HH-le1vi]

Now they are. At first they weren't but these days they have the same problems as every other auto manufacturer outside of Tesla and Mazda.

[@donwald3436]

@@HH-le1vi They didn't predict the magnitude of the disruption that doesn't mean their methodology was wrong.

[@snowflakemelter7171]

Aren't they helping to create the shortage problem by stockpiling?

[@donwald3436]

@@snowflakemelter7171 Not if they established their stockpile before there was any shortage.

[@zichenglong6992]

I also mentioned this in my comment, but yeah, Just-in-Time is more of a concept than something to be executed on by the book. It needs to be used together with proper risk evaluation, and only in areas where the risk is low would you try to push for a leaner logistics chain…

[@kazahani]

I work in the supply chain industry, and Just In Time is a scourge. It is a policy advocated for by private equity ghouls after they buy a company and it demands heavy concessions to all other business considerations such as lead times, service levels, and employee morale. All of this is sacrificed in the altar of efficiency. These people will employ brutal methods to hammer out even a single extra percent of efficiency. Just In Time is also what totally doomed our supply chains when COVID hit. No one anywhere had any back stock to work from. There was not buffer or cushion.

[@LeDoctorBones]

"...but since the global average is exactly in line with the global average it gets a 5 out of 10."

[@emceeboogieboots1608]

😁

[@metamorfosisdeambulante]

Maths

[@friznutzs]

Wait what? There are counties outside of the USA??? That really was a shocker to learn that. This channel really puts things into perspective

[@bc41]

no, it was a joke!

[@KaiWut]

@@bc41 oh thanks for saying that, i almost thought there were actually other counties outside of the USA!!!

[@kaham6609]

I'm from India LoL

[@peterthefourth176]

@@kaham6609 you spelt ‘Indiana’ wrong.

[@makelovenotwar2467]

@@peterthefourth176 😂

[@DCriscOSU]

As someone who's worked in manufacturing for my whole adult career, I've always thought that the ability to "just send it to China where the labor is cheaper" limits manufacturing advancements because there is less incentive to innovate here when it might be cheaper to offshore (though we typically neglect the cost of poor quality that correlates to offshoring). If that drives more domestic innovation, perhaps there's a (minor) upside if this plays out the way portrayed in the video (not saying it outweighs the negatives)

[@avollant]

One thing that no one talk about is the cost and waste of overproduction. I was stun when I realized that half of what is produced in fact end up in landfill straight out of the factory in order to keep the price high... This should be a topic worth exploring.

[@johngeier8692]

How about the costs of continually preparing for war and the costs of trying to prevent small and largely beneficial changes to the earth’s climate?

[@fanbuoy9234]

That makes absolutely no sense. What's the business sense in producing twice as much as you have to, when you can just _not_ do that and save half the cost on salaries and operating costs with the exact same supply reaching markets?

[@avollant]

@@fanbuoy9234 and yet, this is what is happening with much of our consumer products.

[@AChungusAmongUs]

@@fanbuoy9234 Subsidies and minimum price guarantees are a factor. I've heard of this happening in the agricultural sector. And it happened with the U.S. airlines during the covid lockdowns where they were paid with tax dollars to fly empty planes around the country. I'm sure there are other factors and other industries with similar outcomes. The examples I'm familiar with mostly have to do with well-meaning but foolish government policies or cronyism.

[@SangoProductions213]

Source please. You are wrong but at least we can identify where you went wrong.

[@Dr.Kay_R]

The more I learn about Economics, The more depression I get.

[@Errhhk]

As intended

[@rickv9180]

As one increases wisdom so does the level of misery.

[@MorphingReality]

the economy will be ok, probably

[@Two_andahalf_devil]

As a future economist, I can attest to this

[@nikhilPUD01]

Depression is a sign of intelligence my brain 🧠

[@scottbowser702]

“Hoping for new technologies to save the day is a risky bet to make…” Wasn’t this the crux of the Australian Government’s environmental plan in 2022? 🤣

[@vod96]

Thats literally the plan of ever green Initiative in the western world - and behold, renewables are still not up to snuff.

[@xiphoid2011]

To be fair, technology has saved humanity every time in the past when people predicted doom and gloom. For example the prediction about not being able to feed the population has been broken consistently by advances in agriculture and genetic engineering. Even the COVID pandemic which could have been like the plague in in history was fought off relatively quickly and without mass death due to advances in vaccine and medicine. Robots might spell doom to human labor but it may also solve the demographic crisis in many countries.

[@scottbowser702]

@@xiphoid2011 yes, but not good to base your plan around hopes and dreams. New tech should make you change the plan … the plan that was based on current tech.

[@xiphoid2011]

@Scott Bowser Agreed, a certain amount of conservative planning is warranted. At the same time, it's over pessimism is just as bad as over optimism. Too much optimism leads to bubble, but too much pessimism mankind would never have venture forth and we would still be primitive cavemens.

[@julesbrags1661]

​@@xiphoid2011 Humanity has the capacity and resources to create technologies that will save our system and planet from existential threats. The problem however especially in a majority capitalist leaning global economy we are in today, is that leading businesses prioritize maximizing profit over welfare. Although profit and welfare can coexist, maximizing profit on the other hand, more often than not, compromises the long-term welfare of society in favor of addressing the short-term expected profit for executives and investors to benefit from. Therefore technologies being developed by private companies (government agencies always outsource tech development to the private sector) that are beneficial long-term to save humanity from existential threats get scrapped as it costs a lot of money to develop which lowers down the short-term profit margins (therefore bad for business). As long as our economic system prioritize short-term profit maximization instead of ensuring the welfare of society long-term, humanity is sure to have a dead end in the very near future.

[@rafaelkassner]

I love that you are uploading the videos to Spotify now, I greatly appreciate that! I just wish your uploading script didn’t broke and actually uploaded the latest episodes instead :D

[@ShutThePuck]

Roubini always predicts an economic collapse, but I sympathise with him because he legitimately looks at the fundamentals and makes sound predictions, what he doesn't factor in is the sheer scale of the scam going on with central banks and their willingness to never let markets crater no matter what.

[@leonie563]

Yeah it's like that boardroom scene in Margin Call....better to be first.

[@cautiousoptimist1926]

Yes, no logical individual anticipated that central banks and governments would create trillions of dollars in debt to support bubblicious asset prices. The consequences of their experiment have just begun to reveal themselves.

[@pyrysaarinen4954]

Wow EE really stepped up the apocalypse scenarios in this one :D

[@CrunchyLikeness]

Always happy to see a more scientific understanding of economics instead of hearing the ramblings of the left and right. Thank you. One idea: could you cover the economy of Victorian England or The Gilded Age? Both are examples of early capitalism with very little regulation, possibly emulating some of the issues of Laissez-faire capitalism promoted by hard-line libertarians.

[@drjay182]

I love all your videos but I think this has to be my favourite one to date. Not many people know the economic complexity of globalization and I think this video does a phenomenal job at explaining it (or at least the basics). Absolute love it, thank you!

[@ONAROccasionallyNeedsARestart]

This is your best video yet as this is something I can share to people who otherwise have NO interest in economics. Thank you!

[@m.a.t.a.s]

You can no longer call it "National leaderboard" can you?

[@XDarkGreyX]

If it mattered, he couldn't

[@zjzr08]

In Pokemon logic, the National Dex includes all Pokemon around the Pokemon World, so why not, Planetary Leaderboard is now National Leaderboard hehe.

[@drscopeify]

The Economy of Mars, dead, desolate, no one here, it has GDP growth of 0% at a value of 0. :)

[@jesselun9535]

Shouldn't the more pressing worry is that all of these megathreats are happening at around the same time as a chapter 7? So even if you somehow avoided 1 or 2, the others would still be devastating?

[@Monkehrawrrr]

Nationalize banking and energy.

[@HH-le1vi]

​@@Monkehrawrrr terrible idea

[@reggie69.]

​@@HH-le1vi great idea

[@notorioustori]

​@@reggie69. depends on the nation & level of corruption

[@juststellar4880]

The mega threats are always looming. Usually, all at once. The beginning of the twentieth century saw several pandemics and two world wars. If you actually read history, the last 70 or so years are exceptionally free from threats.

[@keith6756]

Peter Zeihan has spoken prolifically on the subject of deglobilization. I recommend listening to him for an interesting and informed perspective.

[@unconventionalideas5683]

What this says is that much of the global prosperity we have experienced over the past few years has all been a bit of a mirage.

[@gtbkts]

Thanks for the awesome content and great videos!!!

[@stevew6138]

ECONOMICS (MMT): The only field of study where the equations and formula are designed to conceal facts, not reveal them.

[@ThetrueDjScottyD]

Litterally been talking about all of this in half the papers i'm currently in at uni... great timing as per usual

[@mayibongwedube657]

As a Zimbabwean, I’m very excited about your upcoming video on Zimbabwe

[@dontcomply3976]

Until, you see how bad the situation is but I guess you know that already

[@nagitoyup6929]

Politicians always care about short term and blame opposition

[@snowflakemelter7171]

That's the democratic election cycle of 4-5 years on average. China doesn't have that problem as there are no election so they can plan 30 years in advance etc.

[@NONO-hz4vo]

Politicians care about being elected. The people who elect them care about short term. The problem with the long term solutions offered in this video is the same issue politicians face. Even if you wanted to promote sound long term solutions it doesn't do you any good if you can't get elected and get into a position of power to start with. I am not defending politicians because most of them are very selfish with their motives, but you can't blame them when you are the one that is voting them into power. In a factious system you may have to stop voting for your most likely to be elected candidate to the candidate you actually believe will make the changes that are wise in the long term. Those in China need to apply.

[@SP-rt4ig]

@@snowflakemelter7171 Which explains why they tanked their demographics with the One-Child Policy and tanked their economy with zero-COVID. Also the same country that is building even more coal power plants and painting mountains green to promote the facade of environmentalism...

[@EikTuKaTu]

Its nice to see an Economist having "fun" :)

[@snowflakemelter7171]

Well they do get paid extravagant amounts for giving their opinions & talking BS.

[@TheJayRoth]

I'm pretty understanding of most of these points. In regards to the globalization argument I struggle with huge chunks of this. Mostly cheap energy has gotten us here but as transportation costs go up this argument loses ground. Also, being from Canada we have some enormous mineral/natural resource corporations. I know how our higher dollar and stronger economy has given us enormous control in South America and us mining THEIR resources has made us extremely wealthy but does not work in favour for the average south american. This is especially true of the USA (who we likely learned it from)

[@getreal7964]

Great video mate, entertaining and informative. You'd be 8.4 on the global leader board...👍

[@guncolony]

^^^ I freaking love how the spam bots have instantly come back the moment they reverted the "@" tags from usernames. Thanks youtube engineers

[@karankanatala2813]

Wow EE 🎉 getting to interview Dr. Roubini is amazing! Congrats on the channel’s growth! (everyone remember that growth takes shape in various creative ways, like this!)

[@davidcooks2379]

EE could you make a video on short-termism of companies and how it varies according to different countries/legislations? Is there economic research that suggests how to solve it?

[@CaesarTjalbo]

I like your videos, they're informative and entertaining. A request: can you put a place name with the images? Especially in this video where you show imagery from all over the world, I'd love to see where it's from.

[@masterchinese28]

Years ago I was excited when I read an article that said that in 2020 it was predicted that for the first time in human history, half of the population would be "middle class" as defined by having extra income after covering essential needs. What a cool milestone that would have been! Unfortunately, that was the beginning of the pandemic and global disruption. This video has made me optimisitic again. We are still globally getting better. Hopefully this trend will continue.

[@Edge81]

We were also told that computers would give us more leisure time Instead we now have less people doing more work. At home on weekends, on flight etc The boundary between work and leisure time has evaporated so expect this tren to continue with Ai and any other advancements in tech that are supposed to make our work lives easier.

[@justinamusyoka4986]

They said with this economic crash,the middle class will disappear downwards.

[@masterchinese28]

@@justinamusyoka4986 The shrinking of the middle class has been a worrisome trend for years now. Will this accelerate it? We shall monitor it closely.

[@jt2325]

EE’s team effort really shows in the quality of recent videos

[@ZAR556]

Living my emergency funds now, Hope things will get better quickly 😅

[@DaZill07]

Another good one, much appreciated!

[@antonnurwald5700]

I think it's a fantastic idea to put the world up on the leader board. The result is not trivial and there really werde some lessons there.

[@kundaikanhukamwe6269]

Hi I love your videos. Could you do a video on Zimbabwe’s economics think it will be an interesting video. Much love from Zimbabwe

[@apolodelsol]

Completely agree with the megatrends. I would add the fact that the excessive opportunism and short vision in the technology industry has developed a worrying state in which people's privacy is being massively violated for profit. There's no future without privacy.

[@Westernaut]

Yes. We need to pay attention to these issues.

[@Ryan-pz4dh]

As an American myself I can honestly say that I’ve been aware of other countries my whole life.

[@planetarysolidarity]

Sure, same here. But it's good to laugh at ourselves.

[@KozelPraiseGOELRO]

Alaska and Ohio aren't different countries, just to clarify.

[@springbreak2021]

I’ve been slightly* aware. Like a far off dream, or a myth

[@johngeier8692]

America has accumulated debts and pledges that it cannot pay. This problem has developed over several decades under both Republican and Democrat administrations. It is a fundamental failing of liberal democracy. People keep voting for more government and more government handouts until the economy collapses.

[@friedrichnietzsche2557]

Good to know man

[@lucianoboccedi]

American peoples is suffering, starving and struggling now, but the US government is worried about the Ukrainian government and peoples.

[@africanboi4542]

I always wonder how can the typical family with average income afford a higher rate+ more expensive home? in my area multi generational home is becoming the norm . Don’t forget to add the inflation which just this week was 9.1 on the CPI , producers index 11.3, it’s going to be a rough ride for sure

[@selenajack2036]

I'm sure the idea of a coach might sound generic or controversial to a few, but new study by investopedia found that demand for portfolio-coaches sky-rocketed by over 41.8% since the pandemic and based on firsthand encounter, I can say for certain their skillsets are topnotch, I've raised over $500k from an initially stagnant reserve of $150K all within 14months

[@evitasmith6218]

@@selenajack2036 that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you

[@selenajack2036]

@@evitasmith6218 Credits to 'Eleanor Annette Eckhaus' she has a web presence, so you can simply just search her.

[@kaylawood9053]

Found her, I wrote her an email and scheduled a call, hopefully she responds, I plan to start 2023 on a woodnote financially.

[@nathaniellong4281]

Can you do an updated video on automation and if technology can become advanced enough to replace humans, meaning artificial labor? One of your first videos ever was on this topic, "The Economics of our Machine Future". But that was several years ago. With new technology released recently like ChatGPT, and actual humanoid robots powered by Artificial Intelligence being actively worked on by several companies, the time is great for an updated video.

[@savanthuman8809]

Up

[@HLector465]

Hi EE Team - love this video. Can you please provide source links for studies mentioned in the video? I am particularly interested in the WB / IMF study mentioned by Dr Roubini (identifying 80 countries facing debt burden headwinds), but could only find WB blogs on the subject. Thank you!

[@nixonkutz3018]

While your ranking system does include "stability" but you don't explicitly use a dollar amount for that ranking. One reason for the end of globalization is the realization that there's a social and economic cost (risk) of not being self-sufficient, and real costs associated with the security concerns involved. But gov't spending on security is (at least here in the US) an industry in and of itself. The irony potentially being that we use Chinese investment dollars in US bonds to fund our security apparatus to keep the Chinese security threat in check!

[@doughayden]

Another Brilliant video on Economics Explained ... thank you so much for producing such great content!

[@MrLukealbanese]

I always wonder what the point of replacing everyone with machines might be. I mean if nobody earns anything anymore, what's the point of having an economy at all? Who's going to be buying anything? How will everyone eat? Am I missing something?

[@DeepSukhwani]

Another superb creation. Thank you. Would love to hear your thoughts (perhaps a topic for video?) on the topic of What is the cost burden on developing economies that do not follow basic principles like lane driving. How it could result in inflation as a result of second and third order consequences. How it could result in low productivity due to increased time spent in commuting. How economies could lose their valuable productivity contributors (youth) due to increased deaths on the road, and so on... Once again, thank you for creating so much valuable content and would look forward to more content.

[@donedeal8385]

Tie it in to the changes wrought by remote work/lesser commuting aaaaannnd the new push by employers to force workers back to the office. You'll get a neat little bow at the end.

[@DeepSukhwani]

@Done Deal, good idea 💡

[@jcarey568]

Globalisation has been an unmitigated disaster for the American working class. In 1970 a factory worker or mechanic could support a family with a single income. Today, with two or even three paychecks, it's a struggle.

[@HH-le1vi]

It's more than that. When women entered the workforce in droves labor got way cheaper because supply was higher than demand.

[@mynameisben123]

Back in 1970 many families were single income. Now many families are dual income. This means there is more money chasing around products for the same number of people (or fewer, as families shrink). As the other poster pointed out, there is also more people chasing jobs so the labour market responds by wages growing more slowly.

[@patrickbateman1660]

​@@HH-le1vi entered in droves? It took decades to hit 50% participation for women in the workforce and most jobs were menial low paying jobs. You just want to blame women.

[@HH-le1vi]

@@patrickbateman1660 women didn't go to work much until WW2. Its just how things were. And I'm not blaming them but you'd have to be ignorant to not realize that people seeing 2 incomes in a household means they can afford more house and thusly prices go way up to account for it

[@marianhunt8899]

Indeed. Time to ask WHO is benefiting from this. The Oligarchs?

[@Bulgarian021]

A really cool video. It helped me learn something new.

[@4033mitchell]

This was a really good episode

[@erikanderson8093]

Regarding Australia exporting raw materials instead of processing some portion of the end product. I would love to see an episode regarding the economics of importing low wage (guest) workers to carry out the manual labor jobs the local labor force is too high priced/too scarce to complete. The examples which come to mind are the labor required to complete the stadiums for the World Cup or migrant farm labor. Thanks

[@zachweyrauch2988]

im a canadian and we have essentially the same problem. Droves of people from the global south spend their summers here picking crops and doing other labour jobs. The resource economy doesnt keep going without a way to harvest the resources.

[@Berkeloid0]

The problem with importing workers is that the local minimum wage and safety laws still apply. By sending the raw materials to another country, companies can get away with paying workers less than legally permitted at home, as well as often not having to spend as much on keeping workers safe. So importing workers would cost almost the same as hiring locals. As for resources like crops, the same thing with migrant workers happens in Australia. But the only reason they hire them is because they can't ship the fruit trees overseas to get them picked there. You do see it with things like fishing though. A lot of the frozen seafood for sale in Australia has written on the packaging "Caught in New Zealand, processed in China".

[@Edge81]

​@@Berkeloid0 The Problem?

[@Berkeloid0]

@@Edge81 The problem with Erik's idea, he said a company could save money by importing cheap workers, I said that won't save you any money because you have to treat them the same as the locals. Great for workers, no benefit for companies looking to save a few bucks.

[@Edge81]

@@Berkeloid0 Imo local safety rules and wages should apply. The last thing we want is an increase in local unemployment and a spiral of downward wages and poor working conditions.

[@creamsodadreamsoda9075]

Just curious, that $12,234 per capita number, when adjusted for inflation and increased costs of living, how much has per capita buying power actually improved?

[@hegedusmark8212]

Good question, the GDP per capita ppp globally increased from 11,000 in 2000 to 17,000 in 2021. According to Worldbank. So it's not twice as much, but it's a 50% increase in 20 years so that's amazing

[@adamritton5820]

I'm curious what the median changes were.

[@DangRenBo]

​@@adamritton5820 Median GDP PPP per capita measured how? By country? By individual? Either would be a simple "list and find out" check away. The numbers are all public.

[@DangRenBo]

​@@adamritton5820 Because it was so easy, I did it for you. IMF's Median (by country) for 2000 was $5893, while it was $15,556 in 2021. By individual would be more "median", but since China was far below median in 2000 and far above it in 2021, that growth would probably be even more staggering.

[@fandyllic1975]

What’s missing from this video: How using averages is misleading without showing a distribution curve; how politics drives many of the world’s economic problems such that many economic solutions are rendered worthless; talking about wages and how wage growth has been stagnating as GDP rises; and tied to the previous issue… income inequality is driving much of the push against globalization. It would also be nice if there was talk about how economically inefficient military spending is and how it reduces economic activity unless there is a war… aka killing people en masse.

[@springbreak2021]

Incredible video and learned so much. Understanding these broader concepts is really important - the modern world is incredibly complicated, and ripple effects have many unexpected consequences. To be clear - I don’t understand any of it 😂 but I’m so excited to listen people who do understand discuss it and lay it out so clearly for the uninitiated. Economists seem to have some sort of sacred knowledge in the modern era

[@mariemeyer]

Yes, NR has forgotten more about economics than I will ever know. However, as a matter of fact, the UK is not in recession and is not expected to enter into one in 2023. The same cannot be said of Germany.

[@MATTY110981]

Britain’s current economic challenges are not unique and at this point in time can’t be blamed on Brexit. While it’s inflation is high it is also on a similar level to most developed countries. It might be different in five years time when most of the problems caused by locking down the world’s economy are resolved.

[@TheThundercow]

A major facet of globalization is unequal exchange, its blatantly obvious even in the simplified technology export examples you gave. Globalization did increase wealth overall, but unequal exchange ensured that its distribution was heavily skewed to those who were already rich (both the billionaire class and the western aligned).

[@animmonster3553]

Idk if EE already made a video on this subject, but I would love to see a video about debt crises

[@eksbocks9438]

3:36 Because of the amount of money it takes to actually live. Especially regarding housing. There's a reason why economic growth was large during the Pioneering Days. Because people weren't bogged down by rent. And just went right to mining or cattle ranching.

[@riddlechallenge]

The world is so interconnected now that any issue with any country will caused a significant ripple effect to the world economy. Conflicts are getting even more dangerous

[@seadkolasinac7220]

Which conflicts?

[@riddlechallenge]

Generally whichever conflicts if not dealt properly will cause serious issue. Like Ukraine war caused food security issue. Any escalation might result in nuclear weapons used. Taiwan conflict if not dealt properly will probably cripple the whole world economy

[@FaustLimbusCompany]

Yes, these conflicts are known to cause shocks in the stock market. In some industries like oil, it has played out in their favor, the rising oil prices increases the share value of those firms. While in other sectors, such as semiconductor manufacturing in Taiwan, the share value of that sector has fallen due to the risk of a Chinese invasion.

[@MiningTheWorldYT]

Nice chart at 3:34 but are these based on resources or reserves? For mined commodities, e.g. copper, iron ore, gold, uranium, the resource is the estimate of the entire deposit; the reserve is the subset of the resource that is estimated to be economically viable at current prices for the commodity. This is an important distinction as each option would deliver wildly different results, and it's not clear from your graph which of the two it is.

[@meb5205]

The older you get, the more you realize that almost nobody knows anything. Everything 'works' purely by luck.

[@pesteanvstefan5491]

Exactly we are in an continuos crisis basicly with diffrent intensity levels .

[@annnee6818]

Yup and it's scary af

[@gutsmasterson2488]

My perception of the world is similar to the Billy Joel song “we didn’t start the fire.“ my perception is that the world has always in someway been on fire. There are only a few firefighters who can put out the fire, but there is more fire than fire fighter.

[@alphaomega1351]

Luck is always a part of every success 🙌 outcome. 😶

[@MarcusDarkstar]

Dues vult!

[@skeeterhoney]

What city is that at 15:35? Reminds me of the configuration of the train station in Skopje, but it isn't. Balkans somewhere else?

[@thomasesau2376]

Just in time is a classic example of efficiency versus risk ratio. It works wonderfully ... until it doesn't. So YBGIBG (You'll be gone, I'll be gone) economics favors supply side economics while impacting demand side economics. Thank you Milton Friedman.

[@draelon]

Peter Zeihan’s recent book “The End of the World is Just the Beginning” (2022) was extremely amazing in this area/subject. He has quite a few interviews on KZbin that are only about an hour long that really give all of this context. The book, though, is really good.

[@danmcnerney7886]

Or the bird Phoenix.

[@zxz1328]

🤡

[@didyoumissedmegobareatersk2204]

LmO😂you belive cia's Statement

[@rbn1111]

Love your videos from Bangladesh.

[@makisekurisu4674]

Wish he did a video on Bangladesh

[@Darth_Zamiel]

Vid series idea, an overview of the transition from one global reserve currency to another. How/why did currency A collapse? What made currency B the attractive option amongst its competitors? How long and hard was the transition from the 'losing' currency to the 'winning' currency; split across modern notions of lower/middle/upper class income brackets? Are there any parallels to the modern global economy and historical economics based on global social saturation of the period specific reserve currency?

[@JanTol_Ams]

m.kzbin.info/www/bejne/rpjYkqBmibCArZo

[@HereWeald]

Lovely vid mate, God bless you

[@Hollows1997]

The global economy is like a drug addict chasing their highs. Constantly chasing unattainable highs until a massive comedown each being worse than the last.

[@marion817]

I wonder what EE's take is on the collapse of SVB and whether it will have a 2008-esque impact on the global economy.

[@chinesevirus-ix3yr]

Silvergate Silicone valley All controlled collapse to push for digit currency. All about mass control in the name of "climate crisis"

[@disalazarg]

I think that, like a previous EE video mentioned, no two crises are the same; so I don't think the collapse of SVB will have an impact similar to anything before it. But it'll certainly be significant, specially once the western wave it produced hits the eastern one of China's collapsed real estate market and ensuing bank runs that they've had since late 2022. I think SVB will probably lay wreck to the US tech startup market, and uncertainty regarding runner-up China leading many VCs to seek refuge in emerging economies like India and Latin America (whose corps generally have much, much lower P/E ratios) or, for more conservative investors, Estonia and Israel, at the detriment of existing tech hubs in SF, NYC and Seattle. Still, it's usually hard to predict the future as it is, but with the emerging AI revolution, it'd take only a single killer app to change the global market irreparably. Didn't SF become the tech capital of the world just because one of Intel's founders set up shop there to be closer to his mom, I think?

[@HH-le1vi]

Not even close. Lehman Brothers was 3x bigger when it collapsed and triggered the GFC. Ironically enough, one of the heads of SVB was also one of the heads of Lehman Brothers and they both made terrible decisions that caused the collapse of each of them.

[@johanstjern4118]

@@HH-le1vialso you have to take inflation since 2008 into account and then SVB is not even 1/5th of the size.

[@HH-le1vi]

@@johanstjern4118 yeah I didn't even consider inflation. Just raw numbers it's not even close to Lehman Brothers

[@PhantomPhoton]

I live in an advanced western economy. Your assessment of a "golden age of economic prosperity" just looks at raw numbers on spreadsheets and is entirely divorced from reality. My city has an ever-increasing number of pensioners and retirees living in their vehicles, and at 40 years old I have had to find a roommate to make ends meet. At the end of the month, it is common to have to choose between the food bank or going hungry. I have a good job and make above the median wage for my area. Give your head a shake.

[@Ryan-Fkrepublicnz]

Oh companies did a whole LOT more than "pass on the costs to their consumers", in fact, they RAISED their profit MARGINS by 300% in a year. That provided about half the cost increases to consumer found in "Inflation"....

[@user-cd4bx6uq1y]

Globalization benefits: things are global Globalization deficiencies: things are global

[@Shanes_Lanes]

I thought investors were to help grow businesses - not milk them like a cow. It’s a perpetual growth. Companies reach level of success but are expected to continue expanding their profits. What if we put a cap on capitalism… what if we got investors out of corporations after corporations reach a reasonable plateau?

[@Croz89]

Investors *are* the corporation though (if it is publicly traded).

[@HH-le1vi]

That makes no sense. A company needs incentive to grow. Those investments give them resources to grow. If you get rid of investment you'd have a worse version of today where the massive companies control everything cause they're the only ones who can afford to do anything.

[@Shanes_Lanes]

@@HH-le1vi so Starbucks, McDonald’s and Coca Cola need to grow even more?

[@HH-le1vi]

@@Shanes_Lanes what's bad about it if they do? What negative impact does it have?

[@AmianteTarvoke]

@@HH-le1vi They effectively become monopolies, preventing competition. How many small businesses shut down because they couldn't compete with Amazon?

[@OmDahake]

Today I learnt that Economics could also be used to scare someone

[@Rene-uz3eb]

4:14 comparative advantage is a euphemism for labor price arbitrage. 9:33 someone's debt is someone else's asset. In other words global debt is just another indicator for wealth inequality 18:38 capital is just someone's profitable plan for labor

[@evancombs5159]

The problem with the most efficient economic model is that it doesn't consider things outside of economics. This makes it very fragile as we have seen the past three years. It is more important to have a robust system, even if on average people are less wealthy, than the most efficient system.

[@Nostradevus1]

This is why you don't let experts run the world. They have a very deep, but narrow view of the world and you cannot run society with blinders on.

[@philiparchambault2506]

Ricardo paraphrased, economics works for economic behavior. Kind of a doubled edged sword I suppose for us.

[@deanchur]

@@Nostradevus1 I told an Accountant friend as he entered the workforce that Accountants can't run companies. 3 months later he told me he now knows what I meant by that. Imagine going to work and being told to use your phone's wifi hotspot because the company axed the internet to save a few bucks.

[@johngeier8692]

Popular delusions are dangerous and can lead to economic ruin war and genocide. The Climate Delusion and the Energy Transition Delusion are currently rather pervasive in the Western World.

[@ibeaman]

just sitting here waiting for ee video to drop so I can finally do hw

[@blackhaulmike]

This was way more optimistic than the thumbnail would suggest.

[@ChuckSwiger]

Nerdy existential crisis before bed sounds good :) Reminds me of the popular book from 1982 "Megatrends"

[@Manx123]

9:50 This value of this aspect of having debt is impossible to understate, and in every situation, this value is almost nothing compared to having a smaller debt burden.

[@martalli]

Persistent, systemic shortages were one of the first obvious signs of the coming collapse in Asimov's Foundation.

[@Jabranalibabry]

Let's lay the foundation for the Foundations then

[@wesleysmith4864]

The statement that "just in time" is the best way is just entirely unfactual and I feel like half the rest of your video proves this

[@Chris.Davies]

The thing we can be sure of, is that if economists proclaim disaster is coming - it is not. Disasters tend to not be predicted by economists. Which begs the question: what use are they? Even a blind squirrel can find a nut sometimes.

[@CyborgTeam]

As a viewer from the United States, I am shocked to only today find out that there are other countries out there beyond my own

[@Snufkin224]

I have seen Americans not knowing what capitals or countries are.

[@paulwilhelmsen6586]

Dark; but good to learn. Wish I hadn’t heard about half of that ;/

[@saeedhossain6099]

the JIT system is great and an amazing achievement, it also is a very high risk option

[@honkiavelli8044]

Fantastic video.

[@radoslavikonomov6667]

Hello EE team! I absolutely loved this video, but what I would love even more is for you to make a video about my country - Bulgaria. There's a lot to be covered in regards to such a small country, however, I would like to see such a video surface on your channel.

[@angelinag3699]

Still waiting for that to happen! And Ive been a subscriber for years.

[@jw6588]

The problem with "comparative advantage" globalism is that is assumes a fair and orderly world, which you can't have without a unilateral hegemony (though perhaps you could with a decentralized blockchain-directed anarchy... maybe). You can't have unilateral hegemony in a world with multiple competing power centers working from adversarial ideological positions. This is not hard to understand.

[@QuatMan]

I think this IS hard for most to understamd.

[@jw6588]

@@QuatMan "Democracy is government by the people... and the people are retarded."

[@HTV-2_Hypersonic_Glide_Vehicle]

19:05 great quote

[@ranjithpowell6791]

It’s not about accurately assessing risk, it’s about having enough cash reserves to sail through and risk even if it takes a year year or more.

[@harikumarv4658]

Unbelievable that such high-quality knowledgeable content is available for free. I've really gained invaluable global perspective and understanding of positioning of individual countries that make up the Earth! Definitely my favourite Economics channel. P.S. Wrote this comment before watching! xD

[@willblack8575]

you sound like a bot bruh

[@flake8382]

"Wait, it was corporate profiteering the whole time?" "Always has been."

[@user-pn4dp4br7n]

when people say they oppose globalism they are usually referring to the restrictions of national sovereignty and the centralization of power

[@gmt-5est803]

Love it! Thank you for calling out my fellow, albeit mostly clueless, Americans. It's true that we tend to forget about the rest of the world. It's not completely our fault, however, as our economy, geographic size, geographic location, population, immigration, etc., are so much larger than so many other Western countries. Oh, and those (entire) oceans on either side of us, our southern and northern neighbors, all add to that objectively very real separation. Europeans can start out in London and drive a personal vehicle, passing through entirely different countries in a single day; yet, if I were to drive the same number of kilometers from around here in western Virginia heading west, I would still be deep within the US. However, that does not excuse us from our collective failure to more actively seek out the rest of the planet's different perspectives; and, more importantly, make an honest effort to keep them in mind. But, that really only works both ways.

[@ChadSimplicio]

EE: "So what can the world do to meet the ever-increasing challenges to their economic life & general well-being?" Me: "Return to dust. That is what some social, economic, & political elites want the bulk of the people to do."