Is There a Better Way to Measure the Economy?

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  • čas přidán 9. 07. 2024
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    The health of our economy is measured by a number of statistics, and the biggest is the Gross Domestic Product... but can it be trusted?
    Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson, AFC®
    Directors: Katie Graham & Andrew Matthews
    Written by: Andrew Matthews
    Executive Producer: Amanda Fox
    Produced by: Katie Graham
    Edited & Animated by: Dano Johnson
    Fact checker: Yvonne McGreevy
    Executive in Charge for PBS: Maribel Lopez
    Director of Programming for PBS: Gabrielle Ewing
    Assistant Director of Programming for PBS: John Campbell
    Images by: Shutterstock
    Music by: APM
    Two Cents is a production of Spotzen for PBS Digital Studios
    sources:
    www.imf.org/en/Publications/f...
    www.cnbc.com/2016/03/24/cnbc-...
    www.nytimes.com/2019/12/15/op...
    www.scientificamerican.com/ar...
    www.pbs.org/newshour/economy/...
    www.stlouisfed.org/open-vault...
    www.bea.gov/sites/default/fil...
    www.scirp.org/journal/paperin...
    www.bea.gov/data/consumer-spe....

Komentáře • 294

  • @tonysilke
    @tonysilke Před 5 dny +135

    More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

    • @PatrickLloyd-
      @PatrickLloyd- Před 5 dny

      The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.

    • @PhilipDunk
      @PhilipDunk Před 5 dny

      This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

    • @mikeroper353
      @mikeroper353 Před 5 dny

      Who is this person guiding you and how can i reach he/she?

    • @PhilipDunk
      @PhilipDunk Před 5 dny

      I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Amber Dawn Brummit" I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.

    • @mikeroper353
      @mikeroper353 Před 5 dny

      Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

  • @irishpolyglot
    @irishpolyglot Před 17 dny +106

    I'm from Ireland and our GDP per capita (2nd highest in the world) is definitely not trustworthy, since it's nearly entirely Apple and Google's international tax workarounds not impacting the local population.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +5

      For countries like ireland and Luxemburg you should use GNI instead of GDP to get rid of the outliers

    • @wafercrackerjack880
      @wafercrackerjack880 Před 17 dny +1

      @@TheLazyGeniuses even GNI is not accurate.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +2

      @@wafercrackerjack880 would you explain in more detail please?

    • @penultimateh766
      @penultimateh766 Před 14 dny +1

      Yeah but you're in Ireland so nothing you do really matters.

    • @GeraldDeBelen
      @GeraldDeBelen Před 3 dny

      GDP star is key.

  • @prettypic444
    @prettypic444 Před 17 dny +22

    My mother’s great uncle was a statistician for the Mayo Clinic, and he told her something very important when she was a child: “you can make statistics say whatever you want”. A single number or study never tells the whole story

    • @dosadoodle
      @dosadoodle Před 13 dny +1

      There's a nuance that was likely missed in communication: You cannot make statistics say whatever you want, unless you are willing to flat-out lie, but you can very often find a statistic that tells a particular story. For example, we can check unemployment trends across regions of the US, median income trends for different demographics, different inflation indices, and the different stock market indices, and at least one of the statistics among these is likely to offer a positive spin and at least one is likely to offer a negative spin -- so it is possible to pick the one that tells the desired story. That's why it is so important to ask, "is this the single correct number to care about?" before simply accepting what stories a politician will spin.

  • @stewarthoi
    @stewarthoi Před 17 dny +83

    4:30 People really need to realize this. For example, if I sell a used screwdriver to my neighbor for $1 trillion, and he sells me his half bag of Oreo cookies for $1 trillion, we have immediately just increased the US GDP by $2 trillion.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +8

      Do you have an example where this happened in real life before?

    • @ttuliorancao
      @ttuliorancao Před 17 dny +13

      @@TheLazyGeniuses basically the US defense budget...

    • @stewarthoi
      @stewarthoi Před 17 dny +18

      @@TheLazyGeniuses Not on a personal level, but governments can certainly paint a rosy picture of their economy by artificially boosting their GDP through major projects such as infrastructures or encouraging real estate developers to build tons of houses that perhaps nobody actually wants to buy.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +5

      @@ttuliorancao The US military gas large inhouse projects and many large outsourced contracted projects. Contracts are typically bided on to compete prices down but there is a duopoly for some contracts so competition can be limited.
      These projects create real goods and services. Real labour and capital is expended and created. Even if you think the prices are higher than they should be, they're clearly not phantom projects just to bulk gdp.
      Us military spending accounts for 2.5% of GDP. Over time US military spending has decreased as a portion of GDP. That means it's physically impossible for US military spending to be inflating gdp over time as it's actively becoming a smaller part of GDP.

    • @ttuliorancao
      @ttuliorancao Před 17 dny +8

      @@TheLazyGeniuses all US defense contracts have artificially inflated prices as the lobby of those companies are responsible for electing the whole congress. Furthermore, the defense sector became a oligopoly with very few companies competing and most of the time it's two fighting for any contract. If they say a jet will cost U$ 350 millions each, it will cost this much and hey, you just increased the GDP.
      Those artificially ballooned prices are the reason the US military costs so much but can't help letting the gap between them and China shrink year after year.

  • @smallmj2886
    @smallmj2886 Před 17 dny +11

    I'm old enough to remember when all the talk was about GNP, not GDP.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 16 dny

      The next one around the block is NGDP

    • @johnjakson444
      @johnjakson444 Před 15 dny +1

      geez I had completely forgotton GNP, I must be even older

  • @MegaLhammond
    @MegaLhammond Před 16 dny +7

    😂 Philipp’s style has changed so much from season 1

  • @dosadoodle
    @dosadoodle Před 13 dny +2

    How about we focus on median income of working age adults? GDP is a metric that rewards a polarized income in society by keeping a larger set of the population desperate to keep working, while median income focuses on the center of the distribution and opportunities that are attainable for most people willing to think creatively about how to improve their situation.
    This metric would have signaled the severe problems of the US economy that has disproportionately pushed gains since ~1980 to the top 1% (thank you, Ronald!).

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 5 dny +1

      Median income of working age adults does not take into account child poverty or elderly poverty

    • @dosadoodle
      @dosadoodle Před 5 dny

      ​@@TheLazyGeniuses Those two topics are very specific economic questions and a single broad economic gauge should not track them with much precision. If it did, it wouldn't be tracking the broader economy anymore. (Of course, we can and do track those specifics using their own economic metrics.)
      The median working-age adult income is intended to reflect economic opportunity. This does relate to parents' ability to care for children, but it does not ensure every parent can do so (still not always fair) or is willing to put in the effort to do so (requires effort to realize the opportunity). Likewise, median income for working age adults also signals whether the typical working age adult can conceivably save for retirement, but it does not guarantee it due to personal circumstances (e.g. larger vs smaller family, dual or single income, healthy or chronically ill, etc) or due to undisciplined spending or saving behaviors. The metric also reflects unemployment levels -- if unemployment goes up, the metric goes down, and vice versa -- and the metric also captures when the economy is so crappy that people simply opt out of working (because we don't require the working-age adults to be employed).

  • @calebhermann
    @calebhermann Před 17 dny +6

    Love your content. Thanks for consistently making these videos!

  • @asartalo
    @asartalo Před 17 dny +5

    Always look forward to your videos. Thank you for what you do!

  • @kanicshep
    @kanicshep Před 17 dny +1

    Your videos will always be sheer joy to watch

  • @feynstein1004
    @feynstein1004 Před 18 dny +25

    Why is the outro so loud? 😅

  • @SimmerFerdon
    @SimmerFerdon Před 2 dny +75

    *I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields*

    • @AkesMcelpraug
      @AkesMcelpraug Před 2 dny

      Interesting, This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro Investor?

    • @AdamHetherton-i7y
      @AdamHetherton-i7y Před 2 dny

      the first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional.

    • @TaroneHeisser
      @TaroneHeisser Před 2 dny

      Finding yourself a good broker is as same as finding a good thing, which you go less stress, you get just enough with so much little effort at things

    • @NonemanDucayne
      @NonemanDucayne Před 2 dny

      I went from no money to Invest with to busting my Ask off on Uber eats for four months to raise about $20k to start trading with

    • @NonemanDucayne
      @NonemanDucayne Před 2 dny

      (Tracy Britt Cool Consulting). I am at $128k right now and LOVING that you have to bring this up here

  • @SimGunther
    @SimGunther Před 16 dny +2

    That "No" was 7min 9sec too long

  • @johnjakson444
    @johnjakson444 Před 15 dny +1

    The recent articles by the media comparing the UK as having a far worse GDP than the poorest state in the US ie Mississippi has more than convinced me that US based GDP metric is useless.
    Having lived more tthan half my life in the richest states of the US, I choose to return to the UK for many reasons other than GDP. The weather in both MA and MS is incredibly oppressive in Winter and Summer, while in England it is simply mild and boring. When you can not leave the house for 6 months in the US which forces you to use a car for everything while in the UK you can live without a car year round speaks volumes. So when Americans add in cars to the GDP it helps the US GDP while it makes the UK look poor when the reverse is true. But the UK has very different problems to Mississipi.

  • @Strawb3rryD3ath
    @Strawb3rryD3ath Před 17 dny +20

    unrelated but i love how the couple is “morphing” into totally different people

    • @abiku2923
      @abiku2923 Před 17 dny +2

      Right? Does she have a tattoo now??

    • @SylvanEvergreen
      @SylvanEvergreen Před 16 dny +7

      I personally don't. I acknowledge that they're their own people of course, and they can express themselves as they please, but I thought the old-timey/traditional look was charming.

    • @CarlosMercadoINIGTDY
      @CarlosMercadoINIGTDY Před 11 dny +1

      @@SylvanEvergreen yeah, but they are bored of it now... or having middle age crisis... dunno

  • @paigeresch9338
    @paigeresch9338 Před 15 dny +1

    My understanding is that GDP also includes spending on healthcare, pollution cleanup, rebuilding after a disaster, interest on loans, etcetera. So even if you're spending money on a bad thing, it's good for the GDP. And saving for the future is theoretically bad for it because then you're not spending it.

    • @scottwhitlock8559
      @scottwhitlock8559 Před 15 dny +1

      True on the first part, but not true about savings. If you save the money in a bank account, that bank will loan the money out to other people who want to buy a car, house, or businesses that want to invest in growing their business. On the other hand if you invest it in stocks and bonds you're directly giving it to companies so they can fund their growth. Companies funding growth means spending it on new buildings, new equipment, and paying people to do R&D. The only savings that don't increase GDP would be stashing cash under your mattress.

  • @RockResilient
    @RockResilient Před 8 dny

    I guess I fell in love with this channel. I've watched at least 20 videos(for some multiple times) in last 2 weeks. Your videos are quite informative, understandable and sincere.

  • @ashwindatta1328
    @ashwindatta1328 Před 17 dny +2

    I NEED Andrew's shirt. where did you get it from??

  • @MoneyGist
    @MoneyGist Před 17 dny +22

    That's why you don't look at GDP alone.
    Same way you can't tell a child is healthy just because he's growing chubbier.
    Still, if that child starts losing weight uncontrollably, you know for sure that you need to see a doctor.

    • @royce9018
      @royce9018 Před 17 dny +1

      You could try watching the video before commenting, lol

    • @MoneyGist
      @MoneyGist Před 17 dny +6

      @@royce9018 I did.

  • @shakenbacon-vm4eu
    @shakenbacon-vm4eu Před 15 dny

    Love the man bun, bro

  • @scottwhitlock8559
    @scottwhitlock8559 Před 15 dny

    Good video, but a bit out of date. Saying that inequality has been increasing "for the last 15 years" but showing a graph ending in 2016 is a little misleading. Since deglobalization, the pandemic, and the Ukraine war we've seen inequality reversing in the US. Also, the trend away from manufacturing towards service jobs has also reversed around the same time. Because of that, a lot of our labor is being directed towards building industrial infrastructure at the same time we're seeing the labor pool shrink because more people retire per year than graduate just due to demographics. Anyone who's tried to hire a skilled tradesperson in recent years can see the result of this.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 15 dny +1

      While inequality has dropped since 2019, I find your reasons for it odd and out of line with expert opinion.
      1. Deglobalization - the world is still very globalized, not much has changed. If you're referencing tariffs, tariffs increase income inequality. They're a regressive tax that disproportionally tax the poor more than the rich.
      2. The pandemic - the pandemic arguably did decrease inequality but mostly because of us monetary policy.
      3. The war in Ukraine??? What? The only connection is maybe more domestic oil production but the US was already a net exporter of oil before the war.
      4. The transfer from goods to services - This might have lowered inequality but I haven't seen anyone argue this before. The only thing I can think is that the share of capital income from services is smaller than the share of capital income from goods, which leads to more labor eating a higher share of the profit which lowers inequality. But I'm just spit balling.
      The labor pool is shrinking - this is objectively false. The US labour pool has only increased. This is because the labor market is hot so companies are willing to pay more and create more hospitable working conditions with flexible hours which has drawn in more workers that otherwise would have stayed in school or stayed retired. That and also immigration has increased the working pool.
      The real reason inequality has dropped is because of monetary policy which makes labor valuable, which increases the income of workers, especially the poorest workers.

  • @crazydrifter13
    @crazydrifter13 Před 3 dny +1

    GDP incentivizes waste. For example, if I buy 10 use-n-throw containers, it increases the GDP more than buying one container and reusing it 10 times.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 3 dny

      Not really, 10 use and go containers are around the same price as 1 reusable container so the same amount gets added to gdp either way

    • @crazydrifter13
      @crazydrifter13 Před 3 dny

      @@TheLazyGeniuses 10 is just an example number. How about 1000 (1 years worth of cups if I throw 3 cups per day) vs 1 container that I reuse? How about 10 Years?

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 3 dny

      @@crazydrifter13 it's also not clear that gdp in a world without disposability would be lower. You assume that money spent on disposable objects would just be saved if we banned disposables. But it's likely that money would.just get spent elsewhere which might even raise gdp.

    • @crazydrifter13
      @crazydrifter13 Před 3 dny

      @@TheLazyGeniuses yes but the world runs on incentives. And the incentive to waste and fill up landfills is strong currently. The money would be spent on other things that create long term value instead.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 3 dny

      @@crazydrifter13 but your original claim that gdp incentives waste is likely wrong. If anything it seems to disincentive waste inso far as people even take into account an economic metric when they shop. It's fine to say we're too wasteful, but don't pin that on gdp when it's a perfectly useful metric

  • @pradanal.m.r.8276
    @pradanal.m.r.8276 Před 15 dny

    If you put it into accounting, GDP is equivalent to revenue... why do you argue about cost, debt, etc , in revenue? Thats just not possible. GDP alone is the single most large scale meausrement that its reliable its better than the other... so take it with grain of salt

  • @user-ms9mq1xp8e
    @user-ms9mq1xp8e Před 14 dny

    If we rised minimum wage then we'll have a better economy

  • @SigFigNewton
    @SigFigNewton Před 15 dny

    GDP almost entirely ignores the bottom third of Americans

  • @Kevin_geekgineering
    @Kevin_geekgineering Před 15 dny +1

    growth in capitalist economy means richer get richer and you know the rest

  • @JosephDickson
    @JosephDickson Před 17 dny +1

    How much of our GDP is absorbed by the one percent? ;)

    • @royce9018
      @royce9018 Před 17 dny

      Do you not understand what GDP is 😂😂

    • @LabGecko
      @LabGecko Před 16 dny

      @@royce9018 If a 1%er takes their yearly earnings and moves it outside the US, they are in fact absorbing that away from the US GDP.
      That money is no longer affecting the US GDP, just another nation's.

  • @wangtoriojackson4315
    @wangtoriojackson4315 Před 17 dny +31

    Oh, at first I thought the title said "Can You Trust the GOP?" I was like, no, no you cannot trust the GOP.

    • @TechedOff
      @TechedOff Před 17 dny +4

      Was just about to comment the same thing and here it is haha

  • @OscarHernandez-dj3yv
    @OscarHernandez-dj3yv Před 16 dny

    #justiceforphilsmustache love the tats too

  • @artilleryisbetter
    @artilleryisbetter Před 16 dny

    Yerr

  • @edwardhoffenheim3249
    @edwardhoffenheim3249 Před 17 dny +3

    3:10 this is true. I have a cocaine empire in a small African country. Our economic activity is equivalent to 1.7x that of the legal and public economys output. And that's our team alone. But you can't really blame it for not being recognized in the international numbers considering our leaders would like us to be kept under wraps given how theyre under our payroll.
    I hope one day there can be more transparency so the people can be helped properly.

  • @MaryLawson874
    @MaryLawson874 Před 2 dny

    The economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

    • @EdmundEthan093
      @EdmundEthan093 Před 2 dny

      Things are strange right now. The US dollar is becoming less valuable because of inflation, but it's getting stronger compared to other currencies and things like gold and property. People are turning to the dollar because they think it's safer. I'm worried about my retirement savings of about $420,000 losing value because of high inflation. Where else can we keep our money?

    • @roxdietren
      @roxdietren Před 2 dny

      @@EdmundEthan093 Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.

    • @AlfredStephen127
      @AlfredStephen127 Před 2 dny

      @@roxdietren this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

    • @roxdietren
      @roxdietren Před 2 dny

      @@AlfredStephen127 My CFA Claire Robert’s Durand , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

    • @AlfredStephen127
      @AlfredStephen127 Před 2 dny

      @@roxdietren Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.

  • @LittleMopeHead
    @LittleMopeHead Před 17 dny +6

    I've learned that stocks going up does not always correlate to a healthy economy. People are struggling, spending less (quantity), but profits are still all time high because inflation, etc. E.g. a company is still profiting, but at a slower pace (decreasing). Profit shows good, people assume it's good.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +4

      GDP is not they stock market. They are different ideas. The stock market can be down and gdp can be up.

    • @LittleMopeHead
      @LittleMopeHead Před 17 dny +1

      @@TheLazyGeniuses Ah good point!

    • @doomsdayrabbit4398
      @doomsdayrabbit4398 Před 17 dny

      The stock market is just a casino.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny

      @@doomsdayrabbit4398 if your picking stocks sure but an index fund is as far as you can get from gambling and still earn money

  • @cdmsvt
    @cdmsvt Před 17 dny +39

    Like if you want the mustache back

  • @ElArgelinoBasado1962
    @ElArgelinoBasado1962 Před 17 dny +18

    Of course the GDP is growing when food costs double than before,there's no room for savings!

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +8

      Gdp is inflation adjusted

    • @royce9018
      @royce9018 Před 17 dny +1

      lol, fry cook isn’t paying the bills any longer?

    • @swaggery
      @swaggery Před 17 dny +1

      @@TheLazyGeniuses based on an averaging of a number of costs, and excluding a bunch of others that may or may not be a factor in a large minority of the population. What this comment is getting at could in fact be true.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +4

      @@swaggery it's fine to have nitpicks with how CPI is done, I do too. But the magnitude of error between measured and real inflation would have to be unrealistically massive to show that the median poor is worse now than 2019, economically speaking

  • @lightanddarklove
    @lightanddarklove Před 17 dny +6

    I feel like the economy is only good if you’re making over $100k a year. Eating out is way more than it was prior to 2016, the housing market has squeezed many people into terrible situations, many reports of food producers show huge profits which are causing consumer prices to be over inflated, and although wages are growing, it’s not keeping up for people at the bottom and middle incomes (the last I checked the average annual wage was $55k) - partly thanks to the failed attempt at a minimum wage increase in 2021 (don’t quote me on the year, if go to check it on Google in the middle of my comment, my tablet loves to delete what I’ve written). A combination of decreased regulation to companies making billions (no thanks to recent rulings by SCOTUS) and huge tax cuts that are still ongoing to those at the top of the ladder has lead us to this point and unfortunately the slow trudge of congress means nothing can change for the better until after the new term. The only way any positive change can happen is not economy-wide, but company-wide in the form of union contracts. My union may have decent safety standards and pay for most federal holidays, but I’m only making .25 over minimum wage in my state which is simply terrible, and why I’ve been looking for another job for 9 months.

    • @royce9018
      @royce9018 Před 17 dny

      😂😂😂

    • @turntostone
      @turntostone Před 17 dny

      ​@@royce9018 I've been perusing the comments for this video, and roughly half of yours come off as petty and unhelpful; your additions often detract from the overall discussions being had. Perhaps try to elaborate more on your points and be less disrespectful other commenters. Then again, my suggestion is under the assumption you're not a troll trying to bait people.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny

      The median poor is richer since 2019 and the median rich is poorer than they were since 2019. Inflation has helped the poor.

  • @charanvantijn541
    @charanvantijn541 Před 17 dny +5

    background music has become foreground music. Why is it so loud that I can hardly understand what Julia and Philip are saying?

  • @artemaeus
    @artemaeus Před 17 dny +1

    Yo i love that bicycle shirt tho

  • @dukuzimanaconcorde7692

    Is she his wife?

  • @jabberwockydraco4913
    @jabberwockydraco4913 Před 17 dny +3

    Economists are almost always wrong, it's a running joke at this point.

  • @DistanceTraveled
    @DistanceTraveled Před 17 dny +1

    Charles Szasz is the real legend

  • @AK255.
    @AK255. Před 17 dny +3

    Your right its hard to tell if people are doing well. I can tell u for sure I will be doing significantly better than my parents. People should take acccountable for their own lives.

  • @zodiacfml
    @zodiacfml Před 17 dny +3

    GDP becoming less relevant due to large inflation/slice of real estate but owned by the few, rich, powerful.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +1

      Real gdp is inflation adjusted

    • @zodiacfml
      @zodiacfml Před 17 dny +2

      @@TheLazyGeniuses i meant price increase of real estate. inflation number exlcudes most of real estate

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +3

      @@zodiacfml the CPI measures rent and calculates owner equivalent rent for homeowners. This captures the actual cost of living in real estate prices and it is taken into account for inflation

    • @zodiacfml
      @zodiacfml Před 17 dny +1

      @@TheLazyGeniuses rent not sale of real estate

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +2

      @@zodiacfml real estate costs are downstream of rent. Property values are determined by the rent and the interest rate.

  • @blackspiderman1887
    @blackspiderman1887 Před 17 dny +4

    The GDP is still high because everyone is living off borrowed money

    • @royce9018
      @royce9018 Před 17 dny +3

      Not really how that works

    • @blackspiderman1887
      @blackspiderman1887 Před 17 dny

      @@royce9018 yes it does work like that. If I buy something on my credit card it still counts toward the GDP.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +3

      Financial instruments like loans bonds and treasuries don't count towards GDP

    • @blackspiderman1887
      @blackspiderman1887 Před 16 dny

      @@TheLazyGeniuses credit cards

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 16 dny

      @@blackspiderman1887 credit cards lower GDP in the aggregate, not increase it

  • @Nersius
    @Nersius Před 14 dny

    Why is there a sound effect every other second?

  • @erik365365365
    @erik365365365 Před 18 dny +182

    No and you can’t trust the GOP either 😂😂😂

    • @rachel_sj
      @rachel_sj Před 18 dny +24

      I’m glad I’m not the only one who saw GOP too 😅

    • @kevinengle477
      @kevinengle477 Před 18 dny +7

      Same

    • @letsclimb5828
      @letsclimb5828 Před 18 dny

      Also kinda hard to trust the DNC when their representatives keep assuring American citizens that President Biden is mentally capable and ready for another term. The entire political establishment is corrupted by corporate money

    • @bens5859
      @bens5859 Před 18 dny +17

      I mean you're right but I'd be careful not to trust any political party, even if like me you are "team blue"
      I also don't think it's helpful to say "party x is MORE trustworthy than party y." Obviously I don't take issue with voting for or preferring one party over another...but even on team blue we ought to be on highest alert these days.

    • @Xsetsu
      @Xsetsu Před 18 dny +15

      @@bens5859 It could change but as of right now one party is objectively more "trustworthy" than the other. The dividing line has become more and more between the educated and uneducated.

  • @robertpatterson3385
    @robertpatterson3385 Před 18 dny +5

    Interesting piece. You mention depreciation is not calculated as a negative factor and suggest it should be considered. GDP =Gross Domestic Product, Not Net Domestic Product. Apologies if you stated this, and I failed to see.

    • @JusDoc
      @JusDoc Před 18 dny +4

      No you're correct, but you seem to have landed just adjacent of the point - they were specifically defining what the GDP is and isn't to someone who'd never thought about it before. As in, to someone for whom GDP is just a 3 letter short hand for "Economy Measuring Stick" without any idea of the pros and cons of that approach. They mention depreciation as an example of a negative factor that isn't included in the GDP, and point out that a more whole picture should include such data.

    • @robertpatterson3385
      @robertpatterson3385 Před 17 dny

      @@JusDoc Thank you for your feedback. I appreciate the point that GDP isn't the most accurate metric for describing the health of the economy.

  • @0_1_2
    @0_1_2 Před 18 dny +45

    Can you trust someone without a mustache?

  • @Dx-Dm
    @Dx-Dm Před 17 dny

    No discussion about PPP?

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +1

      Paycheck protection program or purchasing power parity?

    • @SeventhHeavenFTW
      @SeventhHeavenFTW Před 17 dny

      @@TheLazyGeniuses Obviously the later given the context of this video.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny

      @@SeventhHeavenFTW yeah, but this is nominally related to inflation and a lot of people argue us inflation is high due to programs like paycheck protection

  • @JasonBegheofficial-rs5bq
    @JasonBegheofficial-rs5bq Před 16 dny +4

    I'm favoured, $27K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America.

    • @Adoretracy725
      @Adoretracy725 Před 16 dny

      Started with 5,000$ and Withdrew profits
      89,000$

    • @Jeffery-e1r
      @Jeffery-e1r Před 16 dny

      I'm glad to write her tay I do hope she will help handle my paycheck properly☺️☺️☺️
      Can I start with as low as $1,000?

    • @Luk-ou5tr
      @Luk-ou5tr Před 16 dny

      Please who is this Mrs Sonia

    • @Luk-ou5tr
      @Luk-ou5tr Před 16 dny

      This sounds so good andI would like to
      be a party to this, is there any wayl can
      speak with her?

    • @Adoretracy725
      @Adoretracy725 Před 16 dny

      Yeah get connected to Miss Sonia, here's her line👎🏻

  • @hectorgonzalez5030
    @hectorgonzalez5030 Před 17 dny +1

    Stock market is for the rich.....doesn't mean squat for everyone else

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +3

      Gdp is not the same as the stock market. They are different concepts. GDP can be up at the same time as the stock market is down.

  • @me-myself-i787
    @me-myself-i787 Před 17 dny +1

    GDP doesn't matter. GDP is a measure of spending. What matters is inflation-adjusted GDP, since that measures how much people are actually making. Because as products improve and the economy becomes more efficient, prices fall, causing deflation with an equivalent level of spending. However, increased spending (usually as a result of an increased money supply) counteracts this and causes inflation, but the level of spending has no impact on people's quality of life, so should be factored out, which is why GDP is included in the equation. However, most economists have misunderstood and have been pursuing inflation to boost GDPs, and have been saying the economy's doing well because nominal GDP is up even though inflation-adjusted GDP is down.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +6

      Inflation adjusted GDP is called real GDP and its the only GDP economist talk about. Real US GDP increased 2.3% over 2023.

  • @jimmyyu2184
    @jimmyyu2184 Před 17 dny

    Thought the title was "Can You Trust the GOP"... My bad. 🤣😂

  • @sor3999
    @sor3999 Před 17 dny +2

    "Unpaid work" is kind of irrelevant as we're trying to measure market activity. 4:09 The value of these services are what is paid for. They're not free. People get paid.

    • @tylerpeterson4726
      @tylerpeterson4726 Před 17 dny +2

      Unpaid labor should be accounted for because you wouldn't want to see GDP double because women entered the broader workforce, they were previously doing very valuable labor! You only want to see if the additional women getting paid for their labor are increasing their overall productivity despite no longer "producing" childcare, cooking, cleaning, etc.

    • @royce9018
      @royce9018 Před 17 dny

      lol, so close to understanding it 😂

  • @DarthHao
    @DarthHao Před 16 dny

    Trust? In this economy? Don’t be a fool

  • @odalissk
    @odalissk Před 18 dny +5

    Oh my what's with the german-speaking bots in the comments ? By the way could you please explain the ecnomy of bots I don't get it.

    • @Marthastewart209.
      @Marthastewart209. Před 18 dny

      They boost engagement on CZcams. More comments mean the algorithm will push this video higher and potentially get more views. Creatisng more engagement and views. Potentially creating a viral video. Usually this is paid for by the people posting the videos.
      Also, there is the classic bots, used in phishing schemes. And finally, there are bots promoting other content and bots paid for by governments to promote agendas (Chinese bots will promote socialism and communism, degrade capitalism, pit Americans against each other, make unpatriotic claims, etc.). The ultimate goal is the culture war.

    • @chefnyc
      @chefnyc Před 18 dny

      They got lost. Or were kicked out from Germany because they were too sluttý

  • @Lepinkainen_
    @Lepinkainen_ Před 17 dny +3

    I read this as "can you trust the GOP" 😅
    (and no, you can't)

  • @ranferi64
    @ranferi64 Před 18 dny

    Second!

  • @MSWMW
    @MSWMW Před 18 dny

    great video, great information but I can't help but feel like I have seen that manbun grow up over the past year. None of my business, I know but it is so interesting to see that progress!

  • @ScorpiaBoost
    @ScorpiaBoost Před 18 dny +3

    Excellent video, as always!

  • @micahbush5397
    @micahbush5397 Před 18 dny +7

    TL;DW: There's no single number that truly captures the health of an economy or society. (And what people think about the economy often has more to do with politics and nostalgia than the actual state of the economy.)

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +1

      Yeah, the biggest indicator for whether somebody thinks the economy is good or not, is to ask them if their preferred president is in office.

  • @terminatorxp2007
    @terminatorxp2007 Před 18 dny +15

    I don’t think the stock market is a good indicator of how normal people are doing. It’s a good indicator of how the rich are doing, but when it comes to normal people I think it’s better to look at affordability of basic necessities, job quality, and overall happiness.

    • @maestrulgamer9695
      @maestrulgamer9695 Před 17 dny +2

      Lol,not even that.
      The rich actually have the means and skills to buy the dip and gain more when the market goes down,or invest into companies that are not even publicand get totally different results.
      Many also have their assets in 1 or 2 specific companies they own that rarely match the market.
      Most people who invest in the overall market are middle class who want to retire or upper middle class who try to become rich as well.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +5

      GDP is not the stock market. GDP can be up and the stock market can be down at the same time. They are different concepts.

  • @chefnyc
    @chefnyc Před 18 dny +9

    You know what GDP also doesn't care about? The quality of the items we purchase. I have been to an outlet after so many years. The prices are up, the quality is down. When I was a poor kid, we used to buy rubber/plastic shoes for 50 cents because it was the cheapest thing. Now I see certain brands like crocs, selling that rubber thing for $70. Yeah, GDP growth comes from advertising, marketing, huge profits and selling 5-dollar garbage to consumers with few choices.

  • @justinturman
    @justinturman Před 18 dny +3

    Guy has the perfect announcer voice.

  • @kimberlyjones4534
    @kimberlyjones4534 Před 18 dny +60

    Great video. Surprising how people are not keying in to Bitcoin even when is been the best performing asset for a while now. I’m favored financially with Bitcoin ETFs approval, Thank you buddy. $12,000 monthly profit regardless of how bad it gets on the economy

    • @William.Jones01
      @William.Jones01 Před 18 dny +2

      Same here, I believe the Bitcoin ETFs approval will be life changing opportunity for us, with my current portfolio made from my investments with my personal financial advisor 1 totally agree with you

    • @maxinenovoa5508
      @maxinenovoa5508 Před 18 dny +2

      YES!!! That's exactly her name ( Audrey lauren) so many people have recommended highly about her and am just starting with her 😊 from Brisbane Australia 🇦🇺

    • @BeckyThacher
      @BeckyThacher Před 18 dny +2

      She is my family’ personal Broker and also a personal Broker to many families in the United States, she is a licensed broker and a FINRA AGENT in the United States…

    • @willetawafer4831
      @willetawafer4831 Před 18 dny +2

      A lot of people still make massive profit from the crypto market, all you really need is a relevant information and some < professional advice. ‹ it's totally inappropriate for investors to hang on while suffering from dip during significant

    • @ingridneil60
      @ingridneil60 Před 18 dny +1

      This sounds so good and I would like to be a party to this, is there any way I can speak with her?

  • @FacePlant1324
    @FacePlant1324 Před 18 dny +1

    Not to mention people who work and don't report the money they make from working to the IRS.

    • @jaredeiesland
      @jaredeiesland Před 18 dny +3

      GDP is based on expenses, so a company who paid a worker is a measured expense, and a worker who purchased food and rent is a measured expense, so this is still counted.

  • @tonysoviet3692
    @tonysoviet3692 Před 18 dny +3

    You can trust GDP, except the USA, because it's literally the only country where most other countries have parked their foreign reserves, aka Treasury, so this skew the GDP data massively.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +7

      Bonds and treasuries are not counted in GDP. GDP measures goods and services. Bonds and treasuries are financial instruments so they don't count.

  • @kwfown
    @kwfown Před 18 dny

    Not first!

  • @Issac-eg5ek
    @Issac-eg5ek Před 17 dny +1

    The majority of people are struggling??? Where do y'all live, cause I don't see that, I only see like one or two homeless people and that's it, y'all make it seem like 70% of y'all are a 5% rent hike from declaring bankruptcy

    • @Cosmin388
      @Cosmin388 Před 17 dny +1

      Bruh .. I couldn't afford a good education and now I work for 420 euro a month. My rent is 160/ month and food costs me around 200. Meanwhile I see people around me going to groceries in Hummer and Teslas

    • @Mu51kM4n
      @Mu51kM4n Před 17 dny +4

      Ah the typical "I don't see it so it must not exist" fallacy

    • @LabGecko
      @LabGecko Před 16 dny

      Better question is where do you live that you don't see it.

  • @wallycola5653
    @wallycola5653 Před 18 dny +3

    Economic health should be measured by living standards, and access to healthcare and education

  • @adamsummerhill5653
    @adamsummerhill5653 Před 18 dny +8

    Here's what I know...
    In 4 years rent has gone from $700 to $1100
    4yrs ago my Costco bill was $200-$400, now $400-$800 for the same shit!!!
    Gas under $2, now $4.32
    100% inflation!!!

    • @micahbush5397
      @micahbush5397 Před 18 dny +5

      Not all of it; let's not forget that in 2020, Russia and Saudi Arabia were in an oil price war, during which Saudi Arabia flooded the market with more oil during a period of low demand, causing gas prices to drop precipitously. Comparing the current prices to a point when suppliers were actually paying people to take their product because stopping production would have been even more expensive, and attributing that to "100% inflation," is bad economics.

    • @leiferickson3183
      @leiferickson3183 Před 18 dny +3

      @@micahbush5397 I remember that the price of a barrel of oil went negative - All I could think was "Send me 50 barrels of Oil and I will wait for the turnaround!"

    • @maestrulgamer9695
      @maestrulgamer9695 Před 17 dny

      ​@@leiferickson3183
      The driver would still need to be paid for it.

    • @TheLazyGeniuses
      @TheLazyGeniuses Před 17 dny +1

      Lowes incomes wages have increased more than the rate of inflation

  • @lucianoosorio5942
    @lucianoosorio5942 Před 18 dny +7

    “I Bust a trust fund lush with my American muscle!” Theodore Roosevelt
    Sigmund Freud: I notice that you talk about yourself which is funny, since you are hiding your true feelings like they were other people’s money.

  • @koby2995
    @koby2995 Před 18 dny +1

    The answer to that is nope.

  • @pooh6546
    @pooh6546 Před 18 dny +2

    So are never going to make a follow up video on your bitcoin video from 5 years ago? The one where it was $6K at the time. Funnily bitcoin has been called various things like scam, useless, fraudulent, malicious, wasteful or number of other things but I have NEVER seen anyone who has spent more than 100 hours of researching bitcoin say anything of such sorts. Oh and it just happens to be the best performing asset for the last decade. Looking for your take on it 2 cents😇

    • @chefnyc
      @chefnyc Před 18 dny +1

      Still a scam and a pyramid scheme. Still useless.

    • @maestrulgamer9695
      @maestrulgamer9695 Před 17 dny +3

      There's not enought to research about Bitcoin to waste 100 hours on.😂

    • @pooh6546
      @pooh6546 Před 17 dny

      @@maestrulgamer9695 we will see, let's see after 10 years.

    • @LabGecko
      @LabGecko Před 16 dny

      I've researched that much. In general it's a scam, and you can't compete without running a server farm, running bots, or both, and you can still *easily* get rug pulled or hacked. I'm guessing you're pumping for a rug pull? Most earnings I've seen are due to this.

  • @travisrichmond3797
    @travisrichmond3797 Před 18 dny +3

    The economy sucks. Debate me

  • @manujohn99
    @manujohn99 Před 18 dny +1

    There is pretty much nothing for us to do with GDP.

  • @danielnelson-2121
    @danielnelson-2121 Před 18 dny +2

    Never trust a financial advisor with a man bun