What is the circular economy? | CNBC Explains

Imagine a world where you never throw anything away. CNBC's Elizabeth Schulze explains the circular economy.
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[@Dark__Thoughts]

What I like about this, is the fact that it would favor quality again, instead of incentivizing a product to break down after the warranty runs out (if it even has one), while mass producing one after another new model to replace the old one as soon as possible.

[@anupamappar5456]

This is actually beneficial for companies because they can hold on to customer for years. For example if the bulb gets fused instead of buying a new bulb of some other company.. customer would have to use the bulb of same company as he is already paying subscription for it. This is also a downside for the customers though as it would be tough for them to switch companies of same product..

[@rifkyprakoso9288]

If you want to switch companies, you can just return your old stuff to the previous company and purchase the same new stuff from a competitor company that applied the circular supply chain model as well. The subscription doesn't have to last a lifetime.

[@NiffirgkcaJ]

@@rifkyprakoso9288 but there's a contract, it's much more easier to just let a contract expire, then make a new one with another company.

[@avengers9286]

Great comment. This made me understand the circular economy in depth.

[@qazwsxedcrfvtgb8877]

This is not a circular economy this is communism disguised as a circular economy. Imagine if a billionaire owned everything in your house.

[@richardgregory3684]

"Lots of companies are looking for ways to get involved". Yeah I bet they are. They'd just LOVE for everyone to become a dependent renter.

[@vevelombez6082]

Dude, that was magic at 0:02

[@thatsinteresting7041]

I know right!

[@giorajrhev]

I was surprised too

[@user-up1cy3ow9i]

Oh, you make your videos in such an interesting and also beautiful way! It is so bug pleasure to watch content like that!

[@clairedorey4081]

Unfortunately H&M only recycles 10-15% of the clothes that are returned to them:( The rest go to developing countries or are disposed of:( Read their latest sustainability report - it's all there closer to the end of report.

[@sunnyinamorata6574]

most are resold as ukay- ukay or like thrft shops.

[@ligamenttears]

@Account99 How is it not bad? Low quality fruits and vegetables are already dumped in developing countries, you want us to lower our standard of living by accepting lower quality clothes too? Its like there is no concept of equity

[@Sanjay-ub7eq]

@Account99 then keep your waste with yourself

[@houstonkasen3068]

dunno if anyone gives a damn but I just hacked my gfs Instagram password by using InstaPlekt. You can find it by Googling if you wanna try it yourself

[@tophugo2]

@@sunnyinamorata6574 E

[@AnaCristinaFigueiraC]

H&M is fast fashion. It doesn't matter that they collect old clothes. Their model still relies on producing high volumes of clothes with meh quality, and continually launch new designs and marketing promotions so that you replace your clothes quickly. I definetly would not use any fast fashion business in a topic like this, even if they recycle or reuse

[@chrism8180]

And the same thing would happen with other products as well. This isn't to promote sustainability, quite the opposite. You lease a product for so long(1-2 years), then turn it in and get the next model. It's all bullshit to keep manufacturing in operation, which gives jobs, which has employees paying taxes, ect. Keeping that money flowing. It's similar to planned obsolescence. It's just another greenwashing scam. And also a way to increase profits. All lies 😡

[@OmniversalInsect]

This is very helpful for my DT homework thanks

[@evolvewithmarcello]

This video was very well done!

[@olebrasderuiter1200]

You can also own stuff in a circular economy you don’t have to lease everything as long as the dispose part is done differently then it is done today

[@NoOneAtAll666]

Great video :)

[@romsasha]

Hi CNBC, I like your explanations very much. Could you make a video about best pension (retirement) systems in the world? Thanks!

[@sgnconsulting]

great video, great explanation

[@LorelynTDumaug]

I learned so much from this!

[@naveengwalia4007]

this is an amazing idea

[@mugasiracrescent5632]

Well explained

[@lukakamwabvi2646]

Well summarized

[@JJs_playground]

This is great news, we need more of this.

[@aarone1777]

If only enough people cared; but the "conservites" will never go for any good things (for the planet) ideas!

[@rajeshagarwal3278]

The idea is so Cool

[@vivekraj2984]

Cool idea

[@doodelay]

Elizabeth is one of your best hosts guys. Hope you realize this!

[@SuperSaiyan3985]

Excellent video! I'm currently researching circular economy.

[@ProfKofiPhD]

I'm also currently writing a PhD on circular economy!

[@SuperSaiyan3985]

@@ProfKofiPhD That's super cool, I didn't even know that was a possible doctoral topic. Do you have an engineering background?

[@ProfKofiPhD]

@@SuperSaiyan3985 Yes, Currently persuing a PhD in engineering!

[@SuperSaiyan3985]

@@ProfKofiPhD Industrial Engineering?

[@ProfKofiPhD]

@@SuperSaiyan3985 civil engineering

[@SamvitAgarwal]

Although I definitely do see the benefits of such an economic system, I believe that it might just be an inconvenience to many people as it ultimately brings about a boatload of what are basically subscriptions, things that generally don't have a good reputation with regards to the public. At some point it is simply no longer in the benefit of an individual to keep an item and throwing it away may just make more financial sense than constantly paying for it. However, I do see the potential gains from this system as this will push companies to ultimately keep updating and improving their products in order to keep their customers.

[@manictiger]

They need another way to implement this. No one wants more fucking bills.

[@andrew-paulclements1502]

Maybe a "Buy, Use, Return, Recycle" I buy a lightbulb, it is mine, i pay for it once I use it until it burns out I return the lightbulb to the manufacturer The Manufacturer can now reuse some of the resources in the construction of a new lightbulb

[@nandakishore7070]

people are lazy.they don't return to manufacturer if they own it.

[@fatinamira8939]

• LCA is a “game changer” for circular economy • Keywords (finite resources, business model, circular supply chain) • Take-use-dispose • Make-use-return • Production-consumption- repair-manufacturing-waste management

[@epichaxer2265]

People need to have a circular mindset

[@shashankjajoo]

It's possible for a product like apparel to take longer time for acceptance than a light bulb. Completely on board!

[@maximem.2333]

Good video

[@FedJimSmith]

let's support those companies guys... It will pay off in the long run for all of us

[@KeithMetoyer]

I think I like this idea

[@manoloblanco5240]

Nice video, i love learning with your videos. @ManoloWhite4real

[@joshuagaming9518]

Nice

[@SkillSlate]

🎯 Key Takeaways for quick navigation: 00:00 🌟 Circular economy leases products, changing ownership and disposal approach. 00:32 🔄 Linear economy relies on 'take, make, dispose', assuming infinite resources. 01:00 💡 Circular model: Make, use, return; lease products like lightbulbs. 01:27 🛍️ Companies like H&M embrace circular strategies, recycle old garments. 02:24 💰 Transitioning to circular economy could boost GDP, but involves costs. 02:49 💼 Challenges include redesigning supply chains, logistics, and mindset shift. Made with HARPA AI

[@conservastore]

Nice recap--worldwide tradeable price for carbon expectorate and GHG's is a large part of making this work--Philips for instance could get some strong carbon reduction love by doing the bulb leasing program that can be translated to Operating income if it is rewarded for lower total carbon use in a year

[@ericd.mabuto2423]

please do an episode on cargill

[@asad0810]

It's really an insightful and interesting video.

[@anomad6314]

University of London brought me here... good vid.

[@joshuajoshua46]

WTF are these animations they are blowing my mind.

[@KartikeyaDutta]

world class

[@LM-cg8oz]

👌

[@tycoony8976]

Look up the table inside:).

[@abz998]

We still run on dollars and energy. The cost to return and reprocess materials would be far in excess to what they save in buying less materials. Would only work for some niche products.

[@thechadeuropeanfederalist893]

We will always run on energy. There is no energy free economy. Of course it will be more costly, but what we buy with this higher price is longevitiy, since a finite ressource linear economy isn't sustainable for a long time. Eventually we will run out of ressources. So we need to either recycle them, which costs energy or we will have to give up on human technological civilization.

[@ricky5369]

I was looking for a video on the cyclic economy, i have no idea what im watching

[@skolarii]

yo where did that bulb come from?

[@Mumu_UwU]

This all seems very well but I’d be worried it’d be all fun and games until the leasing companies decide the lease has just gone up a couple hundred dollars and you have no options but to pay, this would have to come tied with policies and laws that would prevent those outcomes and not allow companies to increase the rents at will. If that is worked though properly, we will all be able to enjoy a healthy, responsible economy and lengthen our life on this planet as a species.

[@paulb9769]

This seems like feudalism to me.

[@mna9211]

I love CNBC

[@ai.simplified..]

👍

[@harikrishnan-wr9no]

Where were you???

[@danielcuevas5899]

America needs this badly.

[@PiyushGupta-vx6qi]

It is like cloud computing

[@GoProSolo]

Universal income period

[@lillinablue]

Used and recycling are not synonymous with Vintage

[@Ruben9138]

Circular economy is the way

[@themanager1980]

Yet prices are rising usinh same materials I bought previously! Only benefits big companies

[@kiran9696]

Smartphones?

[@anonwithamnesia]

you can recycle them too.

[@sarthakjoshi9824]

It contains very tiny portion of gold n silver!!! It is already recycled.

[@Macrocompassion]

Making Macroeconomics a More Exact Science Today macroeconomics is treated as an inexact topic within the humanities, because at a first look it appears to be a very complex and easily confused matter. But this attitude does not give it fair justice--we should be trying to find a good way to approach and examine the subject that avoids these problems of complexity and confusion. Suppose we ask ourselves the question: “how many different KINDS of financial transactions happen within our society?”, then the answer is that only a limited number of them is possible. Although our society comprises of many millions of participants, to answer this question properly we should be ready to take aggregates of all the various kinds of activities (no matter who performs them) and then idealize them, so that they fall into a relatively small number of more general classes, for the expression of their specific social functions. Here, each activity is found to apply between its particular pair of entities-each having different economic properties. Then the author has discovered that to cover the whole social system of a country (excluding foreign trade), it takes only 19 kinds of mutual flows of money for the purchase and payment of/for goods, services, access rights, taxes, hire-fees, credit, investments, valuable legal documents, etc. The analysis that led to this unexpected result was performed by the author and it may be found in his working paper (on the internet) as SSRN 2865571 “Einstein’s Criterion Applied to Logical Macroeconomics Modeling”. In this model there are these 19 double flows of money verses goods, etc. They are found to pass between only 6 kinds of role-playing entities. (There are of course a number of different configurations that are possible for this type of simplification, but if one tries to eliminate all the unnecessary complications and sticks to the basic activities, these particular quantities are the most concise result of this simple yet satisfactory and comprehensive analysis.) Surprisingly, past representation of our social system by this kind of an interpretation model has neither been properly examined nor presented before. Other partial versions have been previously modeled, but they are inexact due to their being over-simplified (or in the case of econometrics, too complicated), and this is the reason for their earlier non-scientific confusion and failure for obtaining a good understanding about the way the whole system works. The model being described here is unique in being the first to include, along with some additional aspects, all of the 3 factors of production of Adam Smith's “Wealth of Nations” book of 1776. The three factors of production are Land, Labor and Capital and along with their returns of Ground-Rent, Wages and Interest/Dividends respectively, which are all included in this presentation. A diagram of this model is in my paper, and also may be viewed in Wikipedia, Commons, Macroeconomics as: DiagFuncMacroSyst.pdf , which needs enlargement to get all of the aspects included in one view--for a mention of the related teaching process see my short working SSRN 2600103 “A Mechanical Model for Teaching Macroeconomics”. With this model the various parts and activities of the Big Picture of our social system can be properly identified and defined. Subsequently by analysis, the way the system works can then be properly calculated and illustrated. It is done by the mathematics and logic that was devised by Nobel Laureate Wassiley W. Leontief, when he invented and introduced the important "Input-Output" matrix methodology (but he applied it only to the production sector). This short-hand method of modeling the whole system replaces the above-mentioned block-and-flow diagram. It enables one to really get to grips with what is going-on in our social system. It is found that it is the topology of the matrix which actually provides the key to this. The math is not hard and is suitable for high school students who have been shown the basic properties of square matrices. Developments of these ideas about making our subject more truly scientific (thereby avoiding the past pseudo-science being taught at universities), may be found in my recent book: “Consequential Macroeconomics-Rationalizing About How Our Social System Works”. Please write to me at [e-mail] for a free e-copy of this 310 page book and for additional information.

[@harshulchugh9220]

Can cnbc explains how e-commerce giants like Amazon , Flipkart effect the retail business

[@CNBCi]

Hi, thanks for your request. We do have one on Flipkart here! kzbin.info/www/bejne/aJ_GoWekeZqYgJI

[@darrenespinosa9861]

Yey. More debt...

[@emsik185]

we need to stop buying online, we are killing off local stores buying online, being lazy

[@blueskies5670]

Less private property, more corporate power!

[@lothean2099]

Could they do this with plastic bottles.

[@elisa6287]

Si y a un collègue qui regarde les commentaires, vous êtes de génies

[@arhanya8552]

lol...leasing is like so old concept. Most of the office equipment is actually leased by offices; funded by companies like GE capital services. That in no way changes things radically.

[@fellowgoodie]

I think the major difference in circular economy is literally any consumable product can be returned to the original manufacturer /seller (and not just goodwill) and the Mfr will reuse/refurbish/re-manufacture those returned products and for reselling them.

[@chrism8180]

@@fellowgoodie they will only reuse if its profitable to do so, and don't think the manufacturer is gonna absorb those cost, that will be passed to the customer

[@fellowgoodie]

@@chrism8180 I think Circular economy is a return process that goes all the way in value chain. Every one in the value chain will/should adhere to it. Meaning the customer returns the product to the Finished goods seller, the FG seller returns to the Manufacturer, who will in turn tear it apart and return the components to the component seller and so on. So it does not end at only one step, goes all the way in the value chain, if you will.

[@chrism8180]

@@fellowgoodie what I am saying is the cost of that will be passed to the consumer. And what are going to be the terms of the lease? Leases tend to run a length of time so you will probably either renew, or turn in for a new product(+upcharge for price difference). None of this is going to help the environment. It is only going to burden consumers with more cost. There are so many issues with this idea, and it is really only going to promote more consumption of new goods, keeping manufacturing in operation.

[@fellowgoodie]

@@chrism8180 From what I heard the whole idea of circular economy is to help environment by reusing the products in the first place. The world population is increasing and they cant keep producing new products all the time. Remarketed/refurbished goods are supposed to cost much lesser than a new product to the customer. Once a product is returned the customer will get his money back, but I am talking on the procurement side. I dont know if we are talking on the same line.

[@arhanya8552]

Please explain why so many women host these media company funded videos which is not the case with individual info. channels in KZbin.

[@DADDYnick007]

this is worth the govt spending

[@zoefofo7769]

Well it sounds smart

[@manolog3284]

Ratio

[@267hightrip]

yoo i swear thats my favourite step sister riley reid

[@SandeepKumar-tj1jz]

Duh....did it take us so long to realize this. Looks like Mankind just woke up from consumer utopia.

[@yeahokay5038]

more like loop hole economy.

[@user-jj1br3co8z]

*Hope more companies or business will adopt CIRCULAR ECONOMY* 🙂 *Hope it will be promoted by MEDIA, GOVERNMENTS and PRIVATE ORGANIZATIONS* 🙂

[@chrism8180]

Wow, you ate this pile of bullshit right up.

[@ellDiavolo666]

H&M is no circular business as they don't pay the customer to return the clothes

[@nars-]

Is she magic?

[@user-xj1oz1lt3j]

I can’t understand now.QAQ

[@crazieeez]

So if I am getting this right, I buy a hamburger, eats 50% of it, I can rent the remaining 50% hamburger out? The next person eats 25% of it, and rent the remaining 25%, and so on until the hamburger is gone. I then jettison and rent out my poop.

[@amarabidali5316]

no you throw burger in compost and make sure your crap is also composted safely and then you have a circular economy of nature as the plants will grow from it and eventually give you another burger

[@zj5308]

What you said is too simple. Circular economy is kind of like recycling

[@AntonioCostaRealEstate]

You use silica, tungsten , carbon, steel , copper to make incandescent light bulbs. These junior reporters are completely illiterate.

[@ratatata3445]

Anyone else here for geography 🤣😭

[@jamezzz9829]

Ye I am

[@rsmelliott3642]

Same

[@manictiger]

I like recycling, but this just seems like a way to get more money out of stupid gullible suckers. The poor lease, rent and borrow everything. The rich OWN wealth. Rule 1: Stack wins, not losses. I would never contract these fools to 'lease' me light bulbs. There has to be a better way.

[@chrism8180]

Someone in the comments with brains.

[@aarone1777]

Guess which nation will be the last to get on-board this boat? I won't name anyone but thier (our) initials are; U.S. !😒

[@hl7708]

I love fortnite

[@zawarudo1041]

Subscriptions, modern cancer only comparable to TikTok and Twitter before musk purchased it

[@vai2612]

She looks too cute at 3:16....

[@DA-jw6nm]

difference=companies maintain ownership. communists

[@nirajpatil3061]

Nice