Monetary and Fiscal Policy: Crash Course Government and Politics #48
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- čas přidán 11. 02. 2016
- Today, Craig is going to dive into the controversy of monetary and fiscal policy. Monetary and fiscal policy are ways the government, and most notably the Federal Reserve, influences the economy - for better or for worse. So we’re going to start by looking at monetary policy, and specifically how the Federal Reserve uses interests rates as a means of controlling (or at least attempting to control) inflation. We’ll then move onto fiscal policy - that is the government’s use of taxation to raise and spend money. It’s all, well, pretty controversial, but as it seems Americans hate taxes the most, monetary policy is most often used - meaning that the Federal Reserve plays a hugely significant role in steering the U.S. economy.
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How to cram for my ap test 101
I used to think religion was controversial. It has nothing on politics, mainly economic policy.
Yeah, religion is much less controversial. It's just a suave 'no thank you.' Biggie biggie biggie, can't you see; sometimes your words just hypnotise me.
Hi people who have to watch these videos for homework!
Assignment due tomorrow wish me luck lool
same here lol
You have an awesome teacher
Same
Hello!
There should seriously be a Crash-Course Govt & Politics / Crash-Course Economy crossover, where all 3 of you get together...but. This stuff is shot ages in advance, so probably far too late for that idea...Now I'm sad.
your energy of teaching is awesome!
just wondering if there is a way to forecast fiscal and monetary policy mathematically ?
This show is the only thing that has ever made me want to learn about Government. You make it not boring. :)
He makes learning about our government a fun thing
Even with this help, i still am going to fail my Government and ECON. class. I hate government! So complicated.
A Teacher's Journey Government is not complicated it looks like that because most people want power or money until they look at the government in and it’s complicated because it doesn’t let one person control one thing or control everything
Thanks Wheezy for always keeping me informed so I can kinda know what they're talking about when I listen to NPR.
10 nuggets for $1399? what a bargin!!!
I know Craig was sarcastic at the beginning of the video, but as I am writing my Master Thesis on fiscal policy I was actually looking forward to this topic! Gret job Craig!
Looooved the intro! Haha
The Beginning hyped me up too much XD
Thank you! This helps me a lot! Please make more videos like this to share knowledge!
could you do videos like these that apply to the UK government.
Watch: The Money Masters, Money As Debt, The Money Fix. Look into Public Banking, Cooperative Banking, Monetary Reform. Look up the talks of Richard Werner and Bernard Litaer
Just a thought here: since 2 new CC series are coming out (physics and philosophy) might we get a CC on international politics? As we had american history and 2 world history, I think international politics would enable people to broaden their views and put them into perspective. And instead of punching eagles Craig (if he is qualified for int. pol.) could punch many other types of birds ;) )
Thanks I needed this for my test tom
Thanks for the video, very informative and excellent work. Except, I still don't understand what fiscal policy is. I probably have a good understanding of it by the time you read this comment.
what year was that $8T debt clock from? Over $21T by 2018.
Supply side economics was never really accepted by economists from what I understand. They took the principal that generally tax increases reduce private spending to the nth extreme and created the largest income gap since just before the great depression.
Economists do often like reducing taxes, but not because they think rich people will spend more.
"discretionary spending; when people call for cuts to government spending, this is what they mean"
no. We are talking about cuts to entitlement spending, ie mandatory spending. Or both, ideally, but entitlement spending is the larger of the two.
Hi CrashCourse. Exchange rate of hard currency in black market sometime causes inflation if the government is overspending and etc. My question is, How can black Market be demolished?
Hey, an episode over state and local goverments would be nice after all they're trying to cut out civics classes in schools.
And it is part of U.S. government and politics
The Econ folks are making so many cameos you might have to start putting them in the credits as regular cast members.
what will happen to the exchange rate
if a nation pursue independent monetary and fiscal policies?
Hey I got a question, what's the point to speed up or slow down an economy.
I think this course conflates the federal funds rate and the discount rate. They are two different rates for different purposes. The federal funds rate is the rate at which banks loan each other in order to comply with the reserve requirements. If a bank is short reserves, it can borrow from another bank at the FFR.
Banks often use the FFR as the basis for the prime rate, which is the basis of many other types of loans.
Sad I didn't know about this series for so long.
>Thank you government, you're so useful!
what about mandatory spending on government and bureaucratic salaries?? how much is that in relation to the other spending?
I like your academic and scientific jokes :))
I hope you get better soon, Craig! If symptoms persist for more than a week or two, make sure to visit Doctor Clone.
Video is buffering; Craig is now staring right into my soul
I love you Craig
This video is great, however - from an educational standpoint, I think some of these concepts should have been fleshed out a little more or 'dumb-ed down'. Economics in general is more abstract and takes some time to wrap one's head around. Otherwise, great crash course :)
Thank you very much for the video. It was very informative!
Hi people who are watching this because of social distancing
4:14 Yeah, what worries me most is that Bernie Sanders intends to place the Fed under government supervision. This is asking for even more problems for the reasons you mentioned in the video. The gov could start defaulting debts it doesn't want to pay, fund expensive policies with printed money, etc etc.
All that cash stacked up on pallets in that warehouse.... that would be a work environment fraught with temptation. I bet there's some serious background checks required for that particular forklift position.
Thanks... i had fun listening to the cc, plus I learnt a couple of things... I guess that's how education should be! (...apart from punching that eagle?!! I think you got quite tired of it at the very end... ... ...Need a little bit of motivation....? Get that eagle!!!!)....
Is this the last video of the series ?
Surprisingly, this is a lot more better than the crash course economics video which our teacher made us watch. Thanks!
Dude you really need to slow down a bit. I have to either watch the video at a slower speed which is annoying and sounds all funny or I have to keep going back to hear what you said. Other than that the overall video is really good. Explains exactly what i needed to know.
It really helps as I gain more points on fiscal policy and monetary policy to the economy. Thanks again
I think there should have been more integration between government course and economics course as it shows how the two are intimately connected to each other and also the mobile commenting system is... okay.
Excellent video, very informative. ONE suggestion, talk just a little slower. The speed of which you are speaking makes it a little tricky to keep up with and digest what you are saying. Just my observation, again, great info for sure.
Great video! It opens the question who actually owns and is in control the Federal Reserve bank? Are there share holders in the Federal Reserve bank? If there are share holders how do the banks like the Federal Reserve bank negotiate policy between the share holders, government officials, and the people using the money?
TOTES BEEN WAITING FOR MONETARY AND FISCAL POLICY....uh, actually, I _have_ been interested to hear your outlook on it...no sarcasm...
Great video :-)
Economics final exam tmr!!
Nnnnooooo I JUST Took a test on this earlier in the week and I didn't understand any of it.
Crash course came a little too late this time.
4 years art/design school came to about $160,000 in loans. The most expensive piece of paper I am still paying for.
Did you at least get a good career? Was it all financially worth it in the long run?
Well it's kind of a well known fact that a degree is art is pretty worthless...
Only people who are well off and want/ need a degree go with art.
Good luck paying off that loan though :-)
Vote for Bernie and no more debt
not worth it cringe
So during a depression, does the money just disappear? How would you "decrease" the money supply without making all the banks give their currency back to the Fed?
YOU GUYS SHOULD DO ORGANIC CHEMISTRY!!
PLEASE HELP
+Sarah Lindner
This might not be something that he covers, but I want to recommend Mr Anderson from Bozemanscience to you. His videos remind me quite a bit of Crash Course, as well as Khan Academy.
The Fed is a lot shadier than this video makes it seem.
+Diana, the Inorganic Vegan Besides the rampant lack of transparency and former Fed chairman Bernanke blatantly lying to scuttle proposed legislation that would have made the Fed transparent?
Cue X-files tune
+michael barton all the problems of the US was created by congress. congress made it the Feds goal to stabilize prices and support full employment. Those two goals are a contradiction, hence why monetary policy is in uncharted territories. Congress is the only institution in American where they blame others for their failure. Congress has better chances to fix the job market than the Fed. By letting the Fed take care of full employment, they can blame the Fed and make the public hate them, and guess what, they can win reelection for being fault free.
+Diana, the Inorganic Vegan I don't wanna go over it all, but i'll tell you a bit. It was founded by a bunch of billionaires. Among these founders are John Rockefeller, J.P. Morgan, and the Rothschild family. They created it to be a monopoly on banking just like many of their other monopolies. Woodrow Wilson agreed to sign the bill before he was even elected and was most likely payed off to sign it into law. Congress, nor the president, nor the supreme court can know what the fed is doing. The Fed loans money out to the federal government, and the federal government raises your taxes to pay this debt off. This is where our national debt comes from; the Fed. You can find more info about how corrupt the Fed is on the internet.
+Enyaw The Fed was not even created by Congress.
Too rosy of a picture but appropo to American education. Two GIANTS ignored... DEBT is NOT good thing. Debt relegates your ASSETS to the debt holder, but is prime mover of so-called fiscal policy. Expansion requires ever MORE debt. How to do that will bills (student debt, inflation, job losses, etc) rising. CORRUPTION of system by Wall Street, big banks and complicit politicians.
Crash Course should do crash course government and politics UK since there are a lot more countries using the UK system compared to US system . Ex : Singapore , Malaysia and India .
Wait if they were to reduce spending, wouldn't it lead to a lower aggregate expenditure, and hence a decrease in Real GDP for the economy?
I hear lowering taxes ad infinitum is a good idea.
Hey so these are super duper great and really interesting, as someone who is taking A Level Politics (I'm English btw) I was wondering if you could do UK Politics as well though. I know if you do do it my AS level will be long gone by that point but I still think it would be really interesting and beneficial because I want to go into Politics at Uni and Im sure there's other British people who would like to no more about UK politics who already watch this. These are really cool and super interesting though, will help even more next year when I do USA Politics :D
A possible reason why we don't see too much inflation in the US despite so much money slushing around is because a lot of it is slushing around overseas (since the US is the world's reserve currency) and thus the harmful effects of inflation are less pronounced on US home soil... at least for now
It will all come home to roost soon, my friend. America won't be able to get away with screwing over so many people in other countries for much longer.
Ironically the video shows Donald at 6:00 😂😂😂
3:46 sensing some pent up aggression
why I don't get teachers likes you ,😢😢
this is what my worksheet assigned for the weekend is over
coincidence? yes
The government has never balanced the budget through increases in taxes.
Actually I am pretty excited! We're talking about this in Economics and Personal Finace!!
so why do we need both monetary and fiscal policy in the economy?
This video is way too short to really explain the macroeconomic effects of MP and FP, do check out their econs series
I love this guy
You should have borrowed the Janet Yellen Illuminati animation from CC Economics.
So about that inflation...
You forgot to say that the Federal Reserve is not a Federal Agency but a Private Bank and they don't have any reserve in currency, just the right to create currency and loan it to the banks.
Nocturne but it's elastic is it not? Money is created when needed and destroyed when it isn't. Like an Entreprenuer who needed money for his business idea so he goes to the bank and gets a loan which is created from thin air. Now he employs 3 people. And the money created from the loan is destroyed when the loan is paid back.
Where does the money come from?
Why didn't you say the fed is really a private bank? Or the sneeky way it was created?
I lol'd at the George H. W. Bush line. I was just thinking that he got the rough end of the raising taxes deal.
My questions to ALL candidates running for office. If you were to cut all discretionary spending except Defense, Medicaid, and Veterans affairs, the budget would still not be balanced at the current tax rate. So you have one of three options.
1) Cutting Defense, Veterans Affairs or Medicaid
2) Raising Taxes
3) Passing an unbalanced budget.
Which do you choose?
I'm not running for office now(can't, not old enough) but I would cut defence by 100 billion. We spend WAY too much, making airplanes and tanks that never get used.
+Shotgun Sheller I'm for it. most dems insist on cutting defense. ironically though, the republicans have been most concerned with balancing the budget, and they cling to defense like it's the only thing between us and the Mexican/Muslim alliance.
Chad Tindale I mean, I would like more money to go towards R&D rather than letting tanks and airplanes collect dust.
Thanks
Wait. You`re so fast there talking. Anyway, I get a lot from you. Thanks.
Where was this video when I got an 88 on my test 😭
Talk about MMT
you forgot to mention that the federal bank is actually a private bank with no ties to the government. also you forgot to add in the video that the federal private bank is the only bank that has the power to print american currency and borrow it to others..
Where'd you get the stock footage?
+TheBiscuitStreet google
+Crusender thx bby
We don't have fractional reserve banking buddy. We have minimum reserve ratio requirements, not fractional reserve banking. We haven't had fractional reserve banking for over a century now. Disregarding cash and lending to other banks, banks never lend reserves of any fraction to their members. Banks lend only monetized bank credit.
Liz Truss, you are watching this morning, aren't you?
If you want nice things you have to pay for it, I'll never why you Americans think you can have a nice country without paying for it. Taxes are simple: everyone pays a little and then benefits a lot, like public sewers or libraries. If you don't want to pay taxes, then don't be surprised your country is terrible.
+Chad Leach you mean that communist dictatorship? yeah, like thats the same as voting and paying a littlr
Fenrirthewolf Eh at least we're happy, peaceful and progressive
Alex Turlais your peaceful because America does all your dirty work for you. Your progressiveness is draining you countries of their resources. And giving more power to the far right.
And your happiness is that of ignorance.
Fenrirthewolf How does america do dirty work? they start wars, we deal with the problems. that and america doesnt do dirty work unless they have to
Such simple explanation.
Such profound truth. ^_^
Was sitting here thinking: Its been a long video so far.. Isn't he supposed to knock out the eagle.. 3 seconds later turns focus to eagle... knocks out the eagle
I was exciting about monetary and fiscal policy before you got out the champagne poppers. Hoo hah!
Why depression frequent in USA?
"yet inflation remains quite low"
............... seriously? official inflation numbers use numerous tricks to make the numbers look smaller AND there are a number of asset bubbles that have been growing almost since the crash.......
+Stevie Wonder No, they don't.
Inflation/deflation are measured by consumer/producer price indexes. There's no tricks.
And what asset bubbles are you talking about?
+TheUltimateBeing01 be specific...... and yes they do; food and fuel is not included in inflation calculations, if features are added to consumer goods without a price increase that is counted as deflation, a couple other tricks for making inflation look smaller that I can't remember.... and then onto bubbles: stock market has hit how many record highs in the last year? land prices are retarded, $300k/acre for unimproved residentially zoned land in the rough part of town..... so on and so forth.....
Stevie Wonder Edit: None of this is true.
and the interest that the federal reserve is charging from the banks... where does that money go?
+TheGeniuschrist To the Treasury. The Government makes a profit from it, but its not that much.
small percentages of hundreds of billions of dollars don't add up to that much?
TheGeniuschrist Given the sizes of the US economy and that the US government budget is into the Trillions of Dollars, its not much by comparison.
oh, that was just a joke. the interest that the federal government makes does not go into the united states treasury. if it did we would be able to audit the federal reserve (which we're not allowed to do. check out 2008).
the federal reserve is about as federal as federal express.
that's why this episode didn't mention where those other board members come from. the president appoints one board, and the other committee is partially appointed by the president.
it's the information that we don't receive from this episode that's important. just like in our history books :)
TheGeniuschrist you're a dumbass, they audit the fed regularly. The balance sheet is available online for free. You'll see every financial statement of the Fed there but hey it's easier to stay dumb than do actual study.
Hello. What do U think about Western Nations and Multinational Companies Spoiling Other countries like Asian Countries and African Nations Natural resources for their well Being and polluting these nations.
And actually actually if you combine all welfare, (counting Medicaid, but maybe even not counting it) it exceeds military spending
this is economics I swear
The statism is strong with this channel.....
+Zach Rice To be fair, he just explained how the current system works. He didn't give his opinion on the subject.
Rick Apocalypse ya but he explained that is was needed and necessary
Zach Rice When ?
Bigdawgphilleep He is referring to the kind of statism which the person is in favor of big government.
found the edgy libertarian.
I wonder what their champagne popper budget is.
This video was too short!
Super funny intro
Unconditional Income FTW! Life has to be free!
We’ve got to have, money.