How Governments Can Support Economic Growth
Vložit
- čas přidán 14. 08. 2022
- Now that we have discussed several types of economies that vary in the degree of government involvement, it's time to get a closer look at a government's role in economic growth. It is possible for governments to both promote and hinder economic growth, so let's start by looking at six ways in which a government can support economic growth.
Script by Matt Beat: / iammrbeat
Animation by Ignacio Triana: / unraveled
Watch the whole Economics playlist: bit.ly/ProfDaveEcon
Mathematics Tutorials: bit.ly/ProfDaveMath
American History Tutorials: bit.ly/ProfDaveAmericanHistory
History of Drugs Videos: bit.ly/ProfDaveHistoryDrugs
General Chemistry Tutorials: bit.ly/ProfDaveGenChem
Classical Physics Tutorials: bit.ly/ProfDavePhysics1
EMAIL► ProfessorDaveExplains@gmail.com
PATREON► / professordaveexplains
Check out "Is This Wi-Fi Organic?", my book on disarming pseudoscience!
Amazon: amzn.to/2HtNpVH
Bookshop: bit.ly/39cKADM
Barnes and Noble: bit.ly/3pUjmrn
Book Depository: bit.ly/3aOVDlT
The most basic economic truth is this: employees/workers are the most valuable commodity.
Humans make our human world work
And many of them don't even know that.
How though? A printing company for example pays more for a printer than they do an employee in the warehouse?
@@sashamuller9743 But can they make anything without employees?
But it goes the same way. Employees can’t make anything without the complex machines they are using. The value that’s placed on things is easily determined in a capitalist system by how much a company pays for it. In my example maybe a company would pay more for 20 employees that’s the printer. And then you could say 20 employees have more value than the printer.
Helped me a lot for my economics test . Thanks Dave.
I’m not sure the goal of all governments is economic growth. Maybe growth for a few but not for most seems to be the most common theme through history.
Yea, this (video) is what they're supposed to do in principle.
IRL there are a lot of shitty people who have made it work only for themselves.
It's what they are supposed to do. Their effectiveness varies considerably.
@@wrathofainz can you provide examples?
@@laincoubert9657 Trump, a rich person, cutting taxes for the rich.
Also officials who are paid by companies making it easier for said companies to avoid paying taxes or lessening restrictions related to environmental stuffs.
Ex. Republican paid by pharma to vote against lowering drug prices.
@@laincoubert9657 and to clarify, corrupt people aren't the only ones to benefit ("made it work only for themselves") but the main driver behind many people's actions is how it will help them personally.
I'm enjoying this series a lot, binged it all this afternoon. I wonder how many videos are yet to come and when I should come back to finish watching this playlist?
It'll end up being 40 total!
Can you also explain common hindrances that governments face when trying to do these 6 things. Like, for infrastructure, acquiring land can be hard sometimes so that slows infrastructure development by a lot. A clash between private property rights and infrastructure development. Can you also give a similar counterpart of this, but for the welfare programs? Like what problems does a welfare program face?
The next video is about how governments harm economic growth. It's a well-balanced series.
@@ProfessorDaveExplains Thanks for being highly objective and informative Professor Dave. If you ever get a chance please give a watch to Patrick Boyle's youtube channel. He has some good wit but provides extremely detailed information on multiple aspects of the market like mergers, take overs, short selling, and others.
@@baronmeduse Bud, this is high school level economics content. There are no "factual operational errors". It's just basic information.
You're such an amazing teacher. The best thing about your videos is that you don't use any difficult term that you do not explain within the video. And even the explanation is so easy. Thankyou so much for your time and effort. Thankyou so much for making this channel. May Allah reward you for it. ❤️
Thanks for all the time you put into your vids Dave! They are helping a lot of people!
I learnt something new. Good stuff dave
Dave, I implore you dive into other schools of economics. Keynesian is the predominant school today, but others have their merits and the shortcomings of our modern economy is unfairly judged as "capitalism" failing when in reality it's a multifaceted issue.
I don't see how that pertains to this video.
@@ProfessorDaveExplains you seem to lean towards Keynesian Economics. Try giving Austrian School of Economics a try and there is an full audiobook on youtube called Economics in One Lesson by Henry Hazlit.
@@ProfessorDaveExplains understandable, I appreciate you took the time to reply.
I do enjoy much of your content. Keep up the good work.
@@crclzz I don't lean toward anything as I didn't write this content. A high school economics teacher did, following a standard high school economics curriculum.
The Austrian School is long discredited.
this is an excellent video!
Well that's a big change... I immediately noticed that little new something in this video. The animations make the video very dynamic and even more enjoyable (not to say that they weren't). Nice Job, can't wait to see how it looks like on physics/chemistry or other topics in general.
Thanks Professor❤
Well explained
Honestly, with such a shortage of trade work in the us I’m surprised the government hasn’t subsidized trade school to get people interested in the fields. Instead, popular focus is still in STEM fields despite an over-saturation which is leading to underemployment and reduced wages for those in those fields.
Dave, you have made me a better informed adult and I’m so thankful. I promise I’ll support you when I can
this is just basic economics information that is easily observable. I don’t know how you figure this isn’t true lol you can see all of these elements in a capitalistic society.
Would you please explain why government intentionally create deficit to increase economic growth? How does it work? Isn't deficit a bad thing?
The government shouldn't borrow to pay for deficits, instead they should make the rich and big businesses pay more tax so that governments do not have to run a deficits.
Seems like for *Intellectual Property*, property isn't exactly the right metaphor.
I'm not even subbed to you but I'm here before the first 1k views what
Here after the other video of how they harm economic growth.
I just started playing Democracy 4 on Steam and now I'm watching this.
Thanks, Professor! 😁
The private sector creates jobs, not the government!
They both do.
Hey Dave can you make another video about suspicious observers I've been digging on his channel and it's just full of people that have no idea how he really is
Seconded. He makes a point considering the north magnetic pole really is moving, quite rapidly. I can care less about how the guy is (I'm aware he's a grifter). I'm just curious if there actually is something behind his science or not. There seems to be other scientists that make the same claims, and there's been books written about it too.
thank you
good afternoon sir I want to learn calculus,what topic do I study first?can you help me🥺
Just head over to my mathematics playlist and start watching anywhere that seems unfamiliar.
@@ProfessorDaveExplains so the whole playlist of 160 videos?
Well better get a quite room, underground will be better.
I was gonna ask the same question as him, that's why I replied, sorry.
@@imhere6246 Well you can skip whatever portion you already understand. It starts with arithmetic, basic algebra, geometry, middle school level stuff. If you want to start at calculus that's totally fine.
It is unsustainable. Growth has limits and we are yet incapable of dealing the consequences.
That doesn't make much sense but ok
It’s currently unbalanced as wages have not increased to keep up with inflation for 40 years now
Please expand on what you are trying to say. I think I understand the emotions you are trying to share, but intellectually I am completely ignorant. Growth does have its limits, sure, but as the population grows so does that limit. Please understand every single country on earth invests in economic growth (Even mixed economies like Finland, Germany, or Switzerland). Now, we could discus overpopulation and how that will contribute to this "unsustainability" but I think that to be outside the scope of this discussion :) I personally would like to understand what these "consequences" you are talking about are.
@@Zeitiah population growth is slowing. Set to stabilize around 11 billion. Idk what he's going on about
@@uberboat4512 That still doesn't change much, the 8 billion people on this planet are not all participating in economic exchanges, there is still plenty of room for growth. But please remember to be more open minded. I know the original commenter didn't really explain much in their comment, but that doesn't mean that they don't have a well thought out argument :)
broken window fallacy .
You just told bunch of regulations.
Love your content but the title triggered me. Instant dislike!
You should probably watch this then.
The government doesn’t have a single penny of its own money. It’s either accounted for through taxation or it has to be borrowed.
Ultimate Irony: if you want the best real world example of a Laissez Faire economy in a government, it’s actually Transnistria (ironic bc they kept their flag from the Moldavian Soviet Socialist Republic)
How ?
Like, I am not saying you are wrong, but can you explain this please ?
I just became interested. :D
@@Claudius_Ptolemy it’s the government policies - it’s straight up like… upside down land lol… the culture there is also hard to summarize in a comment so bare with me. Maybe I’ll find a good video citation to add to this. But the culture there is very much a cowboy-wild-west type economic culture. Zero government intervention in business affairs mostly. It’s both necessitated and made possible by the fact that they have virtually zero foreign investment since they’re only recognized by a handful of countries (this despite their winning their war of independence - which actually predates any of the other post Soviet independence movements ironically). That war lasted from early 1990 when they sought independence from the MSSR and then after the collapse of the USSR when they continued fighting with Moldova. I believe 1990-92). The reason it works for them is because you don’t see any foreign businesses buying up things and creating monopolies. So it’s extremely free market - more so than any country I’ve seen - however, they don’t fall into the trap of corporatism as much due to lack of foreign investment in large part. Mostly just mom and pop shops and entrepreneurs. There’s still seedy black markets but that’s where their government actually does step in - it’s less of a problem than Moldova for that reason. They maintain that Soviet culture in the sense that they don’t have police, they have militias to protect people (at least ostensibly that’s how it’s meant to operate but from what I’ve seen and heard it largely works for them). Their culture is also very… weird. While their officials extoll the successes of their market economy and economic freedoms, they also have this weird nostalgia for Soviet times. But not like Soviet nostalgia you see in Russia. It’s hard to explain. I watched a presser once where the president (maybe the PM - I don’t remember) of Transnistria was asked why they still use Soviet symbolism and upkeep all the statues of Lenin etc. He said because they’re proud of the sacrifices and accomplishments of their ancestors - even if their system is now completely different, that system worked in that time to meet the challenges of that time. They’ve recognized mistakes, but also times have changed so they consider it unfair to compare them side by side. - something along those lines. He sort of implied that every system has flaws and after the fall of the USSR, the old system was unviable. But that their current system would have never worked back then and would’ve caused problems that it doesn’t cause nowadays due to the realpolitik and geopolitical surroundings on the ground. Hope that makes some sense.
@@recklssabndon Very interesting to think that a country that still has a communist flag has such a system, thank you :)
@@Claudius_Ptolemy no problem! It’s a fascinating place and I usually always recommend visiting Tiraspol if you’re in Eastern Europe but given the current situation in Ukraine - I don’t know if I would recommend booking that trip until that conflict is resolved. Unless you’re able to enter from Moldova instead of Ukraine.
@@recklssabndon isn't 60% of the transnistrian economy based on steel mfg and trade? I also read that a large part of their economy is attributed to weapons dealing. Either way, classifying it as largely mom and pop entrepreneurs is a staggering mischaracterization it would seem to me
U remind me of Destiny
The government can loan money to students to get and education for jobs that don’t exist, don’t pay well, or the student decides they really don’t want to do
…leaving them with a huge debt.
Don't forget that lots of different countries exist.
@@ProfessorDaveExplains yeah, well, I’m not too sure they’re getting much bang for their buck either.
BTW: Loved the asskickin you gave Flat Earth Dave. 💪
@@ProfessorDaveExplains This. Europe has mostly free or cheap education
Pretty sure he won't pin me
Thought this was a political video ngl 🤣
It's an economics tutorial.
And economics is a political topic, so in that sense it is a political video. That also applies to debunking creacrap and flatturdism.
I can sense the "government bad and evil" people in the comments.
Isn’t that the opposite of shilling
@@keyboardguru4212 Wait, damn you are right :(
@@keyboardguru4212 It is fixed :D
I mean is it not? Governments do more bad than good.
I like how he mentions the Great Recession in 2008 but doesn't mention how a president Trump was doing what it is he was doing throughout the years of 1998 all the way up to 2019-2021 to cause the markets to be manipulated in a way that caused a financial recession for the entire United States of America
Well made as always. Gonna share this with some minarchist who thinks governments redistributing capital for the benefit of society is socialist.
If the state controls the economy then it is socialist. Socialism is the state control of the economy.
@@crclzz 🤦♂️
@@k.umquat8604 did I miss something?
@Pajeets Exposed Yes,but that guy had no idea what welfare was at all, other than it was a "socialist policy".
@@k.umquat8604 I believe this video is supposed to be the textbook response of what a government SHOULD be doing if it were to support a good economy. So it wouldn't include any negative outside forces that we may see in practice in any of these categories. Sounds like Professor Dave is gonna hit that topic in an upcoming video though.
1:20 Regulations should have nothing to do with unemployment. Regulation is about protecting the public. We shouldn't endanger the public just to get people working.
3:40 "Because derivatives markets can get complex, governments have generally been slow to regulate them." I don't think the complexity has anything to do with it, altho that may be an excuse some give. The reality is that these markets are basically casinos run by and for the wealthy, and they have pressured governments not to regulate them.
@@K-xor The best way a government can help *the public* is by having reasonable regulation. That why we have regulations on the quality of food & drugs. It's why gas stations have to label the octane rating of their gas. It's why we ban predatory or unfairly discriminatory lending practices.
Much of regulation has nothing to do with predicting the future, merely with observing the past and present for ways companies will do whatever they can get away with to get more money.
👏👍
おはようございます
professor dave can you explain why everytime i wake up i just want to cry my self back to sleep
Cuz u a bih?
Same…
How’s life going with ya
@@reubenmanzo2054 yeah i think it gets worse every time someone named reuben starts talking about the economy
I feel like this is going to trigger both libertarians and communists.
Wait that’s SOCIALISM?!?!?
Socialism is when the government does stuff. When they do a lot of stuff, its communism
No, not even close.
I've always wondered why we define the unemployment rate as the percentage of PEOPLE who want a job, but don't have one? For example, we can't possibly know who, outside of the U.S., might want a job in the U.S. and would be really successful at it. If we had considerably more jobs available than AMERICANS who want a job, wouldn't that go a long toward improving our immigration program? At the very least, it would muzzle those who erroneously believe there is less opportunity for them because some illegal immigrant "took their job."
Anyway, great material presented in an easy-to-understand format. Well done, as always, Professor Dave.
@@EdwardHowton No. I don't think the real world has a magical auto-sort button. I'm not high either. I'm invoking the notion that the U.S. is a place where people want to be, for some odd reason. I'd bet it's because the U.S. offers people a better standard of living and better jobs than they have access to in their own country. I'm not talking about kidnapping people and forcing them to do anything, so, please, put your strawman arguments away.
Probably time to stop ✋, forget the economy and ration everything for every single person.
Save the earth and actually be smart instead of greedy and spoiled.
The poor who are least respected in society actually do less harm to the earth, those with no car and don't go abroad or buy much stuff, those who didn't get a good education or high wage are the least to blame.
The smart folks are the least smart in the end.
Unfortunately that's not going to happen
If wishes were horses we would ride as kings 👑
@@k.umquat8604 It will eventually when it’s almost to late or to late.
It has to happen at some point.
Every time I hear economy I think no thank you, let’s crash that MF with rationing.
Bullshit.
What a cogent rebuttal of basic economic principles! Thank you for sharing your wisdom!
Ratio