How Money Works Explained in One Minute
Vložit
- čas přidán 1. 02. 2016
- A one minute video which explains how money works, it really isn't all that hard to understand how the economy functions and if we add a bit of historic context to the mix, everything will seem like a piece of cake.
Please like, comment and subscribe if you've enjoyed the video.
To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message.
Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to oneminuteeconomics@gmail.com, any and all support is greatly appreciated!
Oh and I've also started playing around with Patreon, my link is:
/ oneminuteeconomics
Interested in reading a good book?
My first book, Wealth Management 2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below:
Amazon - www.amazon.com/Wealth-Managem...
Barnes & Noble - www.barnesandnoble.com/w/wealt...
iBooks (Apple) - itun.es/us/wYSveb.l
Kobo - store.kobobooks.com/en-us/ebo...
My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below.
Amazon - www.amazon.com/Age-Anomaly-Sp...
Barnes & Noble - www.barnesandnoble.com/w/the-...
iBooks (Apple) - itunes.apple.com/us/book/age-...
Kobo - www.kobo.com/ww/en/ebook/the-...
Last but not least, if you'd like to follow me on social media, use one of the links below:
/ oneminuteeconomics
/ andreipolgar
/ andrei-polgar-9a11a561
GiganticWebsites.com is a project through which I make it possible for people to build truly gigantic websites (thousands of articles each!) at ridiculously low prices. If you have a great domain you want to turn into an amazing website or an existing site you'd like to upgrade/scale, visit our website or check out the One Minute Economics presentation video below:
czcams.com/video/gE8yEOQFMvo/video.html
Please note that this comment is not an ad for a third-party service provider. GiganticWebsites.com is my baby 100% and I will personally be involved in each and every project so as to ensure the website turns out great :)
“Most people fail to realize that in life, it’s not how much money you make. It’s how much money you keep.” - Robert Kiyosaki
One Minute Economics needs your help! Please give me a minute (heh) of your time by watching the following video if you find the channel useful, literally anyone can help (either financially or by spreading the word about my work): czcams.com/video/io04ckq1X1M/video.html
I didn't learn anything from this video
Genuinely sorry you feel that way, thanks for dropping by though! Also, if you're interested in videos where I dig deeper and cover more specific topics, I'd recommend my "money and banking" playlist, 36 videos at the moment of writing. Here's a link, hope you'll be able to extract value from at least a few of them: czcams.com/play/PLhICud5IUwVimLuZK0Qfi6OzCB0CloH5J.html
That's because this video is brain numbing stupid and pure misinformation for the purpose of dumbing people who can't think for themselves down. Sea shells? Really? I'd rather have knives or wood or whatever was being offered for survival over sea shells. This video is completely incorrect about the person needing to go find what the other person needed to trade. Think of stores today. Do stores only sell one item? Today superstores are more popular because they have everything we need in one place. So EVEN if the guy didn't need the wood right away (wood is always needed in survival for heat, cooking, creating furniture or housing) he would have traded and taken the wood and used it for trading with someone else. So he would have more items to trade with, a larger variety. So next time he's trading he'll say, I Have wood and eggs to trade which gives him more power than just having eggs. so NO, this video is complete BS.
Same
@@OneMinuteEconomics don't worry buddy some of us also understand it completely, great video, but maybe instead of using seashells as an example you should've used golds or something that sounds more valuable for most people
@@veganangel811 You really missed the point and I feel sorry for you. If trading "things" was better than we would still be doing so. We do not, the creation of a money system actual generates real wealth. We would never have gotten to the point of having superstores if we were still wasting time bartering. Your comment is complete BS.
As people need to be given a price, there has to be a price in common, one that everyone likes and have multiple uses for and that price is money, which can cover almost any need. That's right fellow! thanx for the videoooo.
You're more than welcome Stella, thank YOU for dropping by :)
barter with gold until goverment making criminal whoever keeping the gold and forcing to use paper as money.
Very Educational. I would recommend this video for educational purposes!
How did you remove comments?
hey guys do you notice this guy is giving a heart for all negative comments lol :D
Yours is neutral, but there you go! What can I say, I'm a loving fellow :)
@@OneMinuteEconomics what can i understand is you love yourself for sure 😅
It's not always easy :D
A bright way to look at currencies.
:)
Hey do you have an one on one coaching program teaching how money works? Thanks
Hi Joe, I don't have a one on one coaching program but if you have a question or need assistance with something, shoot me an email at oneminuteeconomics@gmail.com and I'll do my best to help :)
One Minute Economics sorry for the late reply. Well I just send you an email but for some reason it's not going through, so can you send me an email. My email is joemorrow51@yahoo.com
What animation tool is this?
GoAnimate -> Vyond
is there any other thing is possibly invented as like money to trade?
A LOT of things have been used as money over the years, from sea shells or cattle to cryptocurrencies. Are you referring to alternatives to the use of money, such as barter systems?
Okay just watched the video and it was awesome if you watched the video and didn’t understand then you don’t understand money which is a lot of people ..... the video waad awesome and 💯 true of way to look at money..... its all most the desire to trade that’s what money is .... we create its value us humans and or needs ... read rich dad poor dad about money and how it works ... forget about the negative comments this was a great video and I will sub to you ... cuz I put a great information about money in 1 visualization video and I love visualization video
Really happy you liked the video and even happier that you took the time to say something nice, thanks a ton and have a great 2021 :)
People didn't simply barter before money was used, from a reddit post:
>It was debunked by a three pronged attack.
First prong, examining the origin of the theory of barter. It began as a thought experiment by a Scottish philosopher in the 17th century (can't remember specifically who). As you say, "it seems natural", and that thought experiment turned out to sound reasonable to many other people as well, so it got propagated. The people who invented the idea were just using "imaginative historical reasoning" to suppose how exchange in early societies worked. Since it was untestable, it stuck, and became virtually the first "truism" in the canon of traditional western economics.
Second prong, no data. Anthropological research into the history of money and exchange show an absence of data for barter economies existing in history. One thing we might reasonably expect with a barter system is that (1) pre-currency societies would still be around who use barter, and (2) the historical record would show tally sheets, exchange value calculations, or historical literature indicating barter. And according to him, neither of these things can be found.
Third prong, an alternative method of exchange that actually is found to exist in the world (for example in Madagascar or Papa New Guinea), and is quite widespread, is the "social credit"/gift economy. This also has decent historical support, I believe. Basically you gave people whatever they asked for, because they were your kin, and because strong social traditions controlled what they could and couldn't ask for, and also because an idea existed of 100% reciprocity. (I'm providing my own, much fuzzier understanding of the dynamic, but I think it hits the core of it). You'd have to read more for the specifics.
In a nutshell, one of the reasons why barter never existed is because the prices of things were never considered independently of the social relationships that underpinned the exchange. 5 chickens might equal a cow if you and me are doing a deal, but if you and your brother are doing a deal, 0 chickens equals one cow; if you and a cousin with a bad reputation are doing a deal, 15 chickens might equal one cow; perhaps the largest part of our local population, you might outright refuse to sell to, given the social nature of exchange, hence infinity chickens equals zero cows, for them.
If everybody pays a different rate of exchange, then it can't be implied that the prices themselves have a de facto existence outside of the social relationship which determines them. Prices didn't exist, in the abstract sense, because there weren't yet socially atomized, anonymous individual consumers to show up and get "the flat rate". All exchange was social. There was no anonymous customer. Thus there was no disembodied "economy" that could be seen as separate from the social body.
Edit: just realized I actually supplied one of the weakest arguments for why pre-currency exchange wasn't barter. By my description above, it would still be barter, just without fixed prices. The actual reason it isn't barter requires more paragraphs than I can succinctly muster, but here's a nutshell. Its because the exchanges were not atomic (i.e. considered as having a beginning and an end), but rather each person had something like a 'tab' with each other person, based on personal reckoning, and this extended to non-material goods like positive social relationships. The 'tit-for-tat' in modern exchange happens each time per 1 exchange. The 'tit-for-tat' in pre-currency exchange happens spread out over possibly an entire lifetime. You might give someone something, and not ask anything of them for 5 years time. Then in 5 years, you might ask them for a favor (instead of a good). In this sense, it was not 'exchange', but rather a gift economy, because people gave each other what was requested, knowing that they would later have leverage to request things in turn. Whew! wipes forehead
Thanks a lot for the very articulate comment David, welcome aboard!
I was actually just about to reply with something similar to "it would still be barter, just without fixed prices" before reading the final part of your comment :)
I guess it ultimately all depends on how strict we choose to be when defining the term "barter" or in other words, whether or not we consider the non-atomic nature of the transactions you've referred to a deal breaker.
For example, the Merriam-Webster definition of the term as a verb is this:
"to exchange things (such as products or services) for other things instead of for money"
Going back to the transactions you've referred to, we have a simple question: are products or services exchanged for other things instead of for money?
The answer is yes.
The Oxford Dictionaries put a similar definition on the table:
"Exchange (goods or services) for other goods or services without using money:"
As fascinating as the social component is, it doesn't change the fact that things are exchanged for something other than money and therefore, I for one tend to think the term barter can definitely be used.
David Kloos it's still the same thing, it's still barter, even if it's indirect.
So a dept in modern term and then it becomes interest then interest becomes money then money becomes invest then inflation and so on.....
Basically modern exchange but with no fix amount of value such as the money printed out by banks that i.e has no physical value but has positive interest creating inflation with no value.
What I'm saying is it lead to the most imbalance system of exchange currency cause dept needed to be paid but with the system the real value of the currency/product is not fixed creating inequality in low income and rich the distance just keep getting bigger and banks had free to print money unknowingly with
Value baught by no value which doesn't make sense
Just hope they find a way to fix it atleast not make it worst
nice speech
I showed this to my son and now he thinks you can use sea shells for money... the ending of this video did more to confuse kids than anything else
Sorry to hear that Gibbet. If he has any questions, please ask and I will do my best to address them :)
Agreed, Gibbet. If it had simply stopped when the concept had been explained it would have been much more effective. Sometimes, more is less.
Dang…to think we had put so much value in sea shells at one point
This made sense to me, and I know nothing about economics. Not sure why there’s so many evil humans in the comments. Thanks for the video!
Thanks a ton Kenan, comments like yours make all my hard work worth it :)
I see you think thoughtful, helpful comments are evil.... I've got news for you... this is an important topic when it comes to controlling your destiny and you would help yourself by learning all you can about money.
Walmart uses the same music for their pathways training holy shit that’s weird
That's because it's pure misinformation and is probably made by the same people. the .05% who want to continue running this world the way they do.
I have a lot of seashells. i am rich now. :)
They have larger value than the paper money we all use now, that's for sure. Did you know that our money today is ACTUAL DEBT!? it has no value at all, it's value is actually -. It's actually DEBT. I think it's a system to keep us all working like slaves while the bank owners can create as much "money" (slave power) as they want for themselves.
What the fuck is this ? I came here to learn how money and inflation works
Hi Arunav, I'd strongly recommend my playlist about money and banking. It contains 59 videos but if you're serious about meaningfully understanding money and inflation, it's the place to be. Here it is: czcams.com/play/PLhICud5IUwVimLuZK0Qfi6OzCB0CloH5J.html
Also how do i block you?
I read the comments before watching the video and while commenting this I have not yet watched the video but I will watch it and give my honest answer of the videos ... it’s 2021 I will not judge something just cuz other Jude in that way so I will go and watch the video and give u my honest though !!!!
Such hateful, complex comments for such a simple beginner video. Sorry you are getting a lot hate. I think this is a good introduction to why currencies even exist. I feel sorry for the people in the comments that just don't get it and are probably socialists.
Thanks a lot for the kind words, you unfortunately need thick skin when putting yourself out there by publishing videos. Some days are better than others and you're contributing to the better ones through comments like this one :)
Somebody explain me if money can be made by mints at large amount, why not make some more.
Economists please explain it to me.
One Minute Economics has an entire playlist dedicated to just that. Here it is: czcams.com/play/PLhICud5IUwVimLuZK0Qfi6OzCB0CloH5J.html
Money is used in exchange for products and services. So just think about the math there. The amount of money that can be printed should roughly be around the same value of the total products and services available right?.. If you print more money, then all that extra money is worthless because there are no products and services left to buy. If you print lesser money, then some products and services will never get consumed. So that's an overly simple explanation but I think its gets the point across that we can't just go around printing as much money as we want.
@@zeuskyst Thanks a million mate! So to earn more money I'd require more goods and services?🤔 Then please explain me about credit, what I learnt is that most money I see around are credits. Once again thank you!
@@Son-km3rt Well yeah, if you want to earn more money, you would have to produce more goods and services. It's basically like getting paid for a job. There are also business owners obviously who make money when their employees produce products and services but conceptually yes the business owner took the risk of setting up the business so he's producing the products and services. Further, if you think about countries as well, this is why it's in the best interest of the government to enable their citizens to become more skilled so they are capable of producing products and services and thereby generating money in the country (Which becomes the country's GDP). The government has to provide infrastructure to let their citizens do this and they do so by using our taxes. We pay taxes in return for the government's services.
Ok by credit do you mean debt, if so then yeah I think credit is a bit tricky. Credit is money you don't own and you promise to return it in the future. So what you are really saying is that you want products and services made by other people NOW and you will provide your products and services to other people in the future. This is enticing to an individual because it's instant gratification as a consumer but for the banking system this is useful too as it promotes cash flow. You see for money to really work, there has to be cash flow. Debt, in a way, secures that future cash flow. People have mortgages for pretty much their entire lives so they can never stop spending money. If enough people in the world stop spending money, the concept of money will basically crash so it is in the best interest of the banks (And ours as well) to keep spending money all the time and how to do that better than by making us slave to a monthly credit card bill or car loan payment 😂
@@zeuskyst marvelous insight! Do you have a social media account? I believe you do! No instagram please😆 you are a wonderful, there's much to learn from you. I'd grateful if we kept in touch.
this is wrong, money is a thing that records debt and has units for exchange to keep tally
how it works is you create money and get it approved and recorded by the people/government then you can freely spend it as you wish but the catch is you need to acquire that money back and show the government that you have enough to erase your debt then you destroy the money and the government destroys the debt and in the end you got what you payed for but had to work for it.
True. Just reading Money by Felix Martin and he says exactly what you saying.
May I ask at what time, which country and is the statement still true or obsolete till today?
Lol. And there are people saying that money is worthless.
Are you a comment removing type of dude?
I try not to be.
I have pretty thick skin and accept my flaws, so there's absolutely nothing wrong (in my view, at least) with people criticizing my work or arguing with one another as long as they do it in a civilized manner. To give you an idea as to how open-minded (to the point of being politically agnostic!) I can be, at one point I had two videos in production, one about Ayn Rand and one about Karl Marx. So... yeah :)
Let's admit it.
...
...
..
...
Admit what? :D
We can not learn about working of money in the global market within a minute
Lies !
Hi there, can you please elaborate?
@@OneMinuteEconomics What is the point of elaborating when there are plenty of well formulated critizisms in the comment section. And those you have not responded to. Very snarky. Super snarky. you are like a snake
Utterly misleading
Sorry you feel that way, may I ask why?
@@OneMinuteEconomics because money don't possess any intrinsic value as gold does...the system of paper money is itself misleading and a scam and you guys didn't highlight that fact...
I agree it's important to put the concept of intrinsic value under the microscope in light of frequently it is used, I've actually published a video about it 9 months or so ago: czcams.com/video/1K0H13cNWn8/video.html
terrible way to explain an essential concept, fiat currency
Would recommend checking out this one when you get a chance to:
czcams.com/video/_HR7ocy6eAE/video.html
He knows nothing...!!!!