Is Hyperinflation Coming?

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  • čas přidán 8. 06. 2024
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    Inflation is something we more or less take for granted these days. The idea that 5 dollars today is not going to be able to buy 5 dollars worth of stuff in the future, and the fact that you used to be able to buy a family home for 10 grand, are all the result of inflation.
    The idea that over time money becomes worthless and less influences a lot of decisions in out lives. Everything from retirement planning to salary negotiations take this relatively benign and constant force into account.
    But it is something that should be feared.
    Hyperinflation is where this slow but steady force explodes and renders money all but useless.
    Since the money printers fired up in early 2020 the US has added over three trillion dollars to is m2 money supply. That’s more than a 20% increase in the total amount of money washing around in the economy in the space of around 6 months.
    What’s more is that 3 trillion dollars is coming close to doubling the amount of cash in active circulation, that is the pool of cash which is actively out there been spent on good and services rather than sitting dormant in bank accounts or term deposits.
    When you consider that hyperinflation is classed as a 50% increase in general prices per month it is reasonable to expect that this printing bonanza may be starting to push into dangerous territories.
    Or is it?
    Is hyperinflation actually something to be concerned about, in a developed nation like the USA? Or are all of these cautionary tales simply a ploy to try and get people to buy gold coins at 50% over their base value.
    Well to answer this we of course as always need to loot at a few key details and answer a few key questions.
    What actually is inflation? It’s weirder than you might think
    Is inflation actually good or bad for the economy?
    Is the money printer causing inflation right now?
    And what are the best ways to protect against this harsh reality?
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Komentáře • 2,8K

  • @EconomicsExplained
    @EconomicsExplained  Před 3 lety +262

    Thanks as always for watching :D This video was requested by the team over on Patreon. If you want to have your say on what video is produced next please consider supporting the channel.
    www.patreon.com/EconomicsExplained

    • @jai-kk5uu
      @jai-kk5uu Před 3 lety +4

      Inflation bad fire good

    • @jacobw703
      @jacobw703 Před 3 lety +1

      Chrome and Firefox are giving me certificate errors when I try to go to the link for the newsletter.

    • @salkjshaweoiuenvohvr
      @salkjshaweoiuenvohvr Před 3 lety +6

      Video request: overall which has helped overall economy better? Laws enacted by conservative parties, or the liberals?

    • @nomadMik
      @nomadMik Před 3 lety

      IS YOUR MAILING LIST SERVER OKAY? I just tried signing up for your newsletter, and I was getting SSL problems. I tried twice. It could be something innocuous, but I can see why email addresses for your viewers would be a lucrative target for hackers-it doesn't take a lot to think of email scams that could trick people interested in finance in these interesting times, even if only 1% of people fall for them. So please check that your mailing list server is secure.

    • @robertgaul8109
      @robertgaul8109 Před 3 lety +5

      ok, so two things that I think are failed to mention in this video
      1. what if we are able to produce more goods with the same amount of money? We have seen are productivity skyrocket, so one dollar should by more goods rights?
      2. we have more things competing for our dollar, we had access to a more variety of goods and services, we have smartphones, TV, exotic foods, and trinkets from around the world
      these are both massive deflationary forces that should be driving drown prices like crazy or causing an increase in wages, neither of those things is happening, so why? the easy anwser - consumer debt. instead of lowering prices or increasing wages, to buy more and more stuff and the same prices, people have opted for buying things through consumer debt, they buy their cars with debt, their homes, their furniture, their phones, and increasingly their groceries. consumer debt is so high because it's holding back the wave of deflation. a lot of the stimulus is not causing inflation because of this, any extra cash that goes to the consumer is going not to increasing standards of living, savings, or buying more stuff - it's going to pay off loans.

  • @darrenstettner5381
    @darrenstettner5381 Před 3 lety +3187

    High school me would never have imagined I’d one day be listening to lectures about economics for fun.

    • @jorse456
      @jorse456 Před 3 lety +77

      well my economy teacher was not an ozzy

    • @aayushagarwal4138
      @aayushagarwal4138 Před 3 lety +148

      Jokes on you I am still in High School

    • @charliejenkins100
      @charliejenkins100 Před 3 lety +16

      Ditto..

    • @winterking2510
      @winterking2510 Před 3 lety +39

      Same here. It's actually quite interesting and affects us through out our entire lives so it pays to understand it

    • @winterking2510
      @winterking2510 Před 3 lety +78

      @@aayushagarwal4138 Joke's on you actually. You'll be leaving high school and entering one of the toughest economies ever

  • @kudamanjonjo55
    @kudamanjonjo55 Před 3 lety +914

    As a Zimbabwean who has seen inflation, hyperinflation, deflation and then hyperinflation all in the last 12 years , this video is emotionally triggering! Lol

    • @dallyh.2960
      @dallyh.2960 Před 3 lety +26

      Is your country one of the ones being neo-colonized by China?

    • @screenarts
      @screenarts Před 3 lety +12

      Do not privatize your resources. Don't do it.

    • @ashthegreat1
      @ashthegreat1 Před 3 lety +14

      MMT = Mugabe’s Monetary Theory

    • @Ganglydude
      @Ganglydude Před 3 lety +11

      God bless you. I hope you and yours receive the blessings of Christ in your life.

    • @EnergeticWaves
      @EnergeticWaves Před 3 lety +1

      @Mutant Pig but do you have any filler?

  • @quirkyork5607
    @quirkyork5607 Před 3 lety +385

    If reading “money printers go brrr” is funny in memes, hearing you actually say it is hysterical

  • @CL-oy3jh
    @CL-oy3jh Před 3 lety +253

    "There are three kinds of lies: lies, damned lies, and statistics." Mark Twain

    • @brandonvillatuya9539
      @brandonvillatuya9539 Před 3 lety +22

      To be fair, he was pretty bad at math

    • @kaydgaming
      @kaydgaming Před 3 lety +13

      He had some stupid quotes at times... and he changed his name to Mark Twain to evade taxes

    • @Aristocratic13
      @Aristocratic13 Před 3 lety

      @@brandonvillatuya9539 lol

    • @Aristocratic13
      @Aristocratic13 Před 3 lety +14

      Statistics don’t lie, but people do. I know this from experience

    • @artsmart
      @artsmart Před 3 lety

      Thumbs up from me just because if Twain said it, it's probably so;)

  • @QuestionEverythingButWHY
    @QuestionEverythingButWHY Před 3 lety +1355

    “A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
    ― Mark Twain

    • @0xszander0
      @0xszander0 Před 3 lety +25

      I think i've seen this posted on every single ee vid..

    • @schumanhuman
      @schumanhuman Před 3 lety +33

      "The earth belongs to the people. I believe in the gospel of the single tax."
      Also Mark Twain, smart and witty fellow.

    • @chrisblue46
      @chrisblue46 Před 3 lety +26

      An umbrella is also a good thing to have on a hot sunny day.

    • @GRNM-ro6hu
      @GRNM-ro6hu Před 3 lety +8

      Well....the sun can cause cancer so the umbrella is pretty useful

    • @bhe8336
      @bhe8336 Před 3 lety +7

      That isn't his umbrella though...Deposits are liabilities.

  • @randomjin9392
    @randomjin9392 Před 3 lety +822

    _How to know when it's just inflation and when it's a hyperinflation?_
    Take some money, put it in the bag, leave the bag out there in the street.
    *Just inflation:* somebody picks up the bag, takes the money, then throws the bag away
    *Hyperinflation:* somebody picks up the bag, takes the bag, then throws the money away

    • @elmikatv
      @elmikatv Před 3 lety +33

      Great tip!

    • @nathanseper8738
      @nathanseper8738 Před 3 lety +28

      You summed up the madness of hyperinflation very well.

    • @will-wowdk1930
      @will-wowdk1930 Před 3 lety +12

      in hyperinflation money is still wortg lol you can buy things

    • @OopsFailedArt
      @OopsFailedArt Před 3 lety +9

      william super well spotted. Good thing this was trying to make an entirely different point. Very smart sir. Your are a true Einstein:P

    • @will-wowdk1930
      @will-wowdk1930 Před 3 lety +2

      @@OopsFailedArt XD people complain about "to much money in circulation"
      just give me those milions dude and see how i buy a house a car nice garden and "settle" myself for life, because i am smart enough to not waste milions in a lifetime lol..

  • @ziksy6460
    @ziksy6460 Před 3 lety +248

    My economics teacher in high school used to keep saying "The government doesn't print money! It's a recipe for disaster!" But here we are.

    • @billmelater6470
      @billmelater6470 Před 3 lety +7

      "teacher"

    • @joaquinbarocio5320
      @joaquinbarocio5320 Před 3 lety +8

      More like “ TEACH HER”

    • @Cpnweze
      @Cpnweze Před 3 lety

      Countries are weaponizing thier currency for trade once china has amassed trillions doing it. Your teacher was teaching on old economic warfare strategies.

    • @joaquinbarocio5320
      @joaquinbarocio5320 Před 3 lety

      Leroyyyyyyy jenkinssss

    • @gmarefan
      @gmarefan Před 3 lety +1

      Technically the gov doesn't. It just let's a private org do it and distribute it to private banks

  • @AtlantiansGaming
    @AtlantiansGaming Před 3 lety +60

    The stock video of the dude wondering why he is being filmed at 1:26 was hilarious!

  • @FingeringThings
    @FingeringThings Před 3 lety +1459

    Last time I was this early housing was affordable

    • @jai-kk5uu
      @jai-kk5uu Před 3 lety +17

      Inflation bad

    • @freeze1305
      @freeze1305 Před 3 lety +29

      1980?

    • @miavatarful
      @miavatarful Před 3 lety +1

      😂😂😂😂

    • @jai-kk5uu
      @jai-kk5uu Před 3 lety +43

      @@alexander-mauricemillamlae4567 you mean housing bubble started right. Because if the bubble has already burst the prices have dropped and became affordable

    • @sownheard
      @sownheard Před 3 lety +3

      Good old boomer humor

  • @themongolsarecoming_9437
    @themongolsarecoming_9437 Před 3 lety +1441

    To rephrase your question in the words of legends:
    "Money printer go brrr....?"

  • @mikesteelheart
    @mikesteelheart Před 3 lety +42

    When I was a little boy in the 90's my grandpa acted like if I saved a dime then I'd be a millionaire now... LOL!!!

    • @Freshman24727
      @Freshman24727 Před 3 lety +12

      I’m pretty sure he was trying to teach you the fundamentals of saving

    • @conradvonhotzendorf1128
      @conradvonhotzendorf1128 Před 3 lety +4

      I mean with compound interest you’d probably have a couple dollars 😂

    • @ivarvaw
      @ivarvaw Před 2 lety +2

      If you'd put that dime into assets like Bitcoin, he was right!

    • @electronresonator8882
      @electronresonator8882 Před 2 lety

      yes, but a dime every day in form of bitcoin in 2009, ...the coin is so trash that the price is basically 0

    • @cf6713
      @cf6713 Před 2 lety

      @@Freshman24727
      Unfortunately his fundamentals were based on a system that makes sense.

  • @stevesmith7413
    @stevesmith7413 Před 3 lety +314

    Reminder that most economists have no idea what they're talking about.

    • @screenarts
      @screenarts Před 3 lety +35

      Yeah they brought us neoliberalism and look where that's gotten us

    • @tnatstrat7495
      @tnatstrat7495 Před 3 lety +14

      As opposed to... who?

    • @frederickdoofman5020
      @frederickdoofman5020 Před 3 lety +1

      @@screenarts what has it gotten us

    • @screenarts
      @screenarts Před 3 lety +4

      @@frederickdoofman5020 The last 40 years. You do know what neoliberalism is right?

    • @wyattbarnes9641
      @wyattbarnes9641 Před 3 lety +3

      None of the kainzean economists anyway

  • @economicsinaction
    @economicsinaction Před 3 lety +926

    **Hyperinflation is coming**
    Me: "And my teacher said I'd never be a millionaire! Suck on it!"

    • @SavantAudiosurf
      @SavantAudiosurf Před 3 lety +37

      Peter Schiff said there will be a 35% decrease in the value of the dollar throughout the year 2021.

    • @janeethapa8730
      @janeethapa8730 Před 3 lety +3

      lol

    • @cageybee7221
      @cageybee7221 Před 3 lety +19

      @USA 2 MEXICO the value of the dollar has fallen that amount since 2000. it's not unthinkable.

    • @punditpounder5153
      @punditpounder5153 Před 3 lety +67

      A friend of mine said, "One day we're gonna drive $100,000 cars and live in $1m homes, trouble is they're gonna look just like the cars and homes we have now."

    • @SavantAudiosurf
      @SavantAudiosurf Před 3 lety +26

      @USA 2 MEXICOOK then, I'll go into detail of how it has already been happening for the last 250 years. A bimetallic monetary standard was formalized in 1792 with the Mint Act. It set the gold to silver price ratio at 15:1, deeming gold to be valued at $19.39/oz. The price of gold was $19.39 for 1 ounce in 1792. Today, gold is $1915/oz. That means that since the dollar was created on April 2, 1792, it has now lost 99% of it's purchasing power in comparison to gold, which is what the US dollar used to be back by when it was originally created. Anything else?

  • @EconomicsExplained
    @EconomicsExplained  Před 3 lety +138

    Sorry the video is a little bit late tonight guys. Hopefully it is worth the wait :)

    • @michaelmeng1108
      @michaelmeng1108 Před 3 lety +5

      It’s actually pretty early for Friday

    • @pojke4130
      @pojke4130 Před 3 lety

      Its worth the wait till 12 am no worries mate

    • @UGMD
      @UGMD Před 3 lety +6

      Bit late = decent time in US

    • @maruwan-dono
      @maruwan-dono Před 3 lety

      na mate ; thanks a lot

    • @MikeSnitkovski
      @MikeSnitkovski Před 3 lety

      This was a careful and nice explanation!
      10/10 would worth again

  • @sertank735
    @sertank735 Před 2 lety +15

    “We have this crazy global economy that is based on debt and inflation.”
    Also, “There are these crazy people that want to balance budgets and have a balanced monetary policy in a world of runaway inflation.”

    • @lewis123417
      @lewis123417 Před rokem +1

      Damm fiscal conservatives wanting to ruin people's good times with restrictive monetary policy 🤣

  • @rhwing5095
    @rhwing5095 Před 3 lety +80

    9:20 You know the system is fucked when a reduction of consumption is seen as a bad thing. The foundation of the entire world economic system is based on debt financing. A sad tale.

    • @openlink9958
      @openlink9958 Před 3 lety +3

      I mean if you buy stuff with money you dont have thats a more cultural problem, and I agree Im more for small government

    • @nowhereman6540
      @nowhereman6540 Před 3 lety +5

      Are you taking about consumption, or the rate of consumption? If the former, you are wrong, unless you want society to return to a pre-industrial time.

    • @freddie7981
      @freddie7981 Před 3 lety +1

      @@nowhereman6540 yeah... i assume he means rate of consumption.

    • @letobabel4519
      @letobabel4519 Před 3 lety +1

      All economies are based on debt. Money is debt.

    • @rhwing5095
      @rhwing5095 Před 3 lety +2

      ​@@letobabel4519What I mean is the economy is based on _debts growing indefinitely._ I.e., keep borrowing _more_ to generate growth.

  • @Quickonomics
    @Quickonomics Před 3 lety +192

    The Bureau of Labor Statistics be like: "Dont skew the CPI, spend your money like nobody's watching."

  • @spad4728
    @spad4728 Před 3 lety +25

    I'm not an economist, but: When I buy something, the money goes from me to the store, and the item goes from the store to me. The goods move in the opposite direction of the money. All of the discussions I've heard about inflation seem to treat inflation as happening uniformly across the entire economy. But, the freshly printed money usually isn't distributed uniformly across the economy, but is instead dumped into specific sectors. It will eventually spread out until it's uniform across the economy. But, since goods and money move in the opposite directions, that means the goods get concentrated as the money spreads out. The end result is both a debased currency and an increased concentration of society's real wealth among those who were lucky enough to be the recipients of the new money (analogous to executives who get extra stock to make sure that their ownership isn't diluted). Inflation doesn't just devalue the currency, it also redistributes the real wealth of society to those who are favored by the man with the money printer. This is a knock-on effect that I don't think is generally discussed enough in the public conversation about inflation.

  • @dudewaldo4
    @dudewaldo4 Před 3 lety +18

    I feel bad for saying this but I never come away from an EE video feeling like I actually understand anything more than I did before I watched it.

    • @freeross371
      @freeross371 Před 3 lety +1

      Pretty complex stuff, you have to take notes and break it down like you're in a class.

  • @aventh1114
    @aventh1114 Před 3 lety +98

    Whats weird is that we are always talking about this mental construct of what inflation is supposed to be and how to measure it etc. But when we talk about it we rarly talk about the reality that most people experience. Who here can say that their wage has increased each year according to the rate of inflation? What do I care how you call it, or what a few economists are debating about if the reality is that a large percent of the population is working at maximum capacity (working hours) but can afford less and less with each year?

    • @Rocio-op7ot
      @Rocio-op7ot Před 3 lety

      @False I like to work tough...

    • @vidard9863
      @vidard9863 Před 3 lety +6

      Inflation is a tax on savings that allow the government to spend more money. That is all it is.

    • @vidard9863
      @vidard9863 Před 3 lety +1

      ... he just said that low unemployment was bad... I don't care if I am paying more for labor because I will be making more, and raw resources would be dropping in value. Besides that it would just make imported goods cheaper, which is what the free trade was supposed to help with. The average people everywhere wins.

    • @Rocio-op7ot
      @Rocio-op7ot Před 3 lety

      @False Eh..yes, it does, when you wrote "Nowadays the wife has to enter the workforce for the family to survive, not out of being a "free independent woman"… but out of necessity." and I just stated I do like to work. But dont worry that I got clear your position regarding taxes.

    • @Rocio-op7ot
      @Rocio-op7ot Před 3 lety +1

      @False Ah...Ok. Fair point.; just thought you were the typical "boomer" that complains how things were better in the past -in this case how women dont actually want to work and the majority would rather be housewives but due to the current economy.
      Still, I dont understand why you came with such annoyed tone. at the end of your comment. Did that touch your feelings somehow?
      You know, it could had just been a misunderstanding from me as in this case was...

  • @MichaelGGarry
    @MichaelGGarry Před 3 lety +135

    (In a near 100% employment situation): "People only leave jobs for a pay rise" - not even close to being true in the real world. People move jobs for a whole host of reasons, of which pay is only but one variable. Shitty bosses, badly ran companies, change of address, change of industry, new qualifications, new job role, better non-salary perks, the list is endless....

    • @MichaelGGarry
      @MichaelGGarry Před 3 lety +7

      Also no mention of the effect of population changes to inflation either...

    • @W1DO
      @W1DO Před 3 lety +29

      I only move jobs when the new employer offers better working conditions. I work from home 2 days a week permanently and can cycle to all my site meetings. Money isnt worth anything unless it can buy you a better life.

    • @basharlabadi1790
      @basharlabadi1790 Před 3 lety +10

      yeah that part didn't make sense to me, it also ignored the fact that people retire and graduate every year, so there is always a supply of new graduates, it's not a closed system

    • @AnimatedStoriesWorldwide
      @AnimatedStoriesWorldwide Před 3 lety +3

      Try to change job in a 30% unemployment economy because of a "shitty boss" then we'll talk...

    • @writerconsidered
      @writerconsidered Před 3 lety +4

      Was it a generalization? Yes. But it still holds true and half of your other reasons also have a hidden or open monetary perks. These "change of industry, new qualifications, new job role, better non-salary perks." all have some upward salary trend. Salary will also be the most important reason to move jobs but certainly not the only reason. None of which changes his argument.

  • @tylerinvests
    @tylerinvests Před 3 lety +90

    Inflation is the expansion of the money supply, and prices going up is the result of more money chasing few goods and drives up the price. So inflation is NOT prices going up, that is just the result.

    • @AftercastGames
      @AftercastGames Před 3 lety +7

      Thank you for taking the time to explain this, so that I don't have to.

    • @TheOzembuch
      @TheOzembuch Před 3 lety +11

      Yes, this video is taking people on the journey through the eyes of central banks and their twisted definitions of facts.

    • @TheOzembuch
      @TheOzembuch Před 3 lety +2

      @Ksenzu No, exactly the opposite, it's important to get that right.

    • @TheOzembuch
      @TheOzembuch Před 3 lety +7

      @Ksenzu Well my friend, you need to go a little deeper and beyond Britannica, they have it wrong too. Too many revisionists and Keynesians are running around spreading this misinformation. Many times purposely to further their way of thinking about monetary issues and policies.

    • @TheOzembuch
      @TheOzembuch Před 3 lety +1

      @Ksenzu NO Sir, you just need to ignore the new changed definition of governments to serve their purpose and look at the original classic definition.
      schiffgold.com/wp-content/uploads/2020/08/inflation-def-768x445.png

  • @Vinit.R
    @Vinit.R Před 3 lety +7

    Heart goes out to the man sitting sadly on the curb at 17:32. I hope he is alright.

  • @hamsterbrigade
    @hamsterbrigade Před 3 lety +38

    It's weird that so many of the "bad for the economy arguments" really only seem to map out to "good for employees and bad for businesses." Like unemployment being low. In demand employees leave/join companies for a lot more reasons than money.

    • @GalacticNovaOverlord
      @GalacticNovaOverlord Před 3 lety +5

      Yeah, it's just what hurts the elite and rich, not what actually hurts the population.

  • @abrvalg321
    @abrvalg321 Před 3 lety +92

    Invest into inflation, it always goes up.

    • @warwickeng5491
      @warwickeng5491 Před 3 lety +20

      Those Zimbabweans know what's up

    • @caorusso4926
      @caorusso4926 Před 3 lety +9

      Stonks

    • @cageybee7221
      @cageybee7221 Před 3 lety +9

      jokes aside, you may be onto something. if you can plan for it you can make money off inflation.

    • @bachpham6862
      @bachpham6862 Před 3 lety +11

      *George Soros hyperventilating*

    • @NUCLEARARMAMENT
      @NUCLEARARMAMENT Před 3 lety

      @Steven Moore Mansa Musa was living proof of that.

  • @johnshellenberg2329
    @johnshellenberg2329 Před 3 lety +36

    The assumption that you can only hire away employees with a raise in their salary is completely wrong, and is why companies struggle with turnover - they lack understanding of motivational theory and why people work. The idea that full employment (typically about 3.5% unemployment) is bad is a myth propagated by business interests that see any unemployment figures below 7-8% as bad - it gives too much power to labour.

    • @kelvinhbo
      @kelvinhbo Před 3 lety +6

      Good luck trying to convince people otherwise. The cult of work is worst than the cult of religion.

  • @glennh3855
    @glennh3855 Před 3 lety +12

    You have a gift for explaining economic concepts in a way that people can grasp.

  • @johanliebert6734
    @johanliebert6734 Před 3 lety +120

    AH YES
    it is all coming together

  • @ivanbumaschny3758
    @ivanbumaschny3758 Před 3 lety +147

    EE: Is hyperinflation coming?
    Me, who lives in Argentina: Always has been.

    • @BennieVredestein
      @BennieVredestein Před 3 lety +2

      Is it still bad over there bro? I hope not

    • @saniks5070
      @saniks5070 Před 3 lety +7

      @@BennieVredestein it's about to get worse . Because the currency is controlled by the central bank .The dolar net reserves are negative.And to solve that problem they convert all the dollars that get into Argentina to pesos at a range of 80 to 1 ,much lower than the real value of 150 pesos per dólar. So after the conversion they use your dollars to supply the increasing demand.

    • @tomasfaella7499
      @tomasfaella7499 Před 3 lety

      @vertex2100 well, we have a burble in the dollar value, so the people buy it because "it will never go down"

    • @matilozano96
      @matilozano96 Před 3 lety +2

      ​@vertex2100 We buy foreign currency, because it can only go up. It's also not advisable to deposit big quantities of USD in banks because our country has a history of using money from deposits in order to finance the central bank's deficit. In 2002 bank savings were forcibly converted to government bonds denominated in Pesos (regardless of the original currency), which was devaluating rapidly.
      As a result, most USD in Argentina is saved in cash today, wether in safes in banks or at homes. We don't trust the government, basically.
      Cars tend to go up in price, as well, so they're a good way to save value. In other words, a new car depreciates at a slower rate than the peso does. Mainly because car prices are set in USD and then converted to peso when selling.

    • @gonzalomorislara8858
      @gonzalomorislara8858 Před 3 lety +1

      @@saniks5070 Net liquid dolar reserves are negative, net reserves are still over 3000 mill, albeit perhaps not for long

  • @loc1123
    @loc1123 Před 3 lety +24

    "hyperinflation = game over for the economy"
    Argentina: ha! i can do this forever.
    *introduces a new currency for the 4th time in like 50 years.

  • @Luminousplayer
    @Luminousplayer Před 3 lety

    i randomly stumbled upon this channel but i love the delivery, great job!

  • @Gio-ym4uj
    @Gio-ym4uj Před 3 lety +288

    I wish I lived during a time when buying a house was something normal people could do.
    Edit: Some of you should grow an empathy bone.

    • @t4ntr420
      @t4ntr420 Před 3 lety +74

      @@_patrickst actually wages have stagnated while productivity has increased increased

    • @nomadMik
      @nomadMik Před 3 lety +59

      @@_patrickst If you compare average housing cost to average income, that just isn't true, at least in major Australian and US cities, especially Sydney and San Francisco. For my parents, an average house cost slightly less than an average annual salary. Now it's several times an average annual salary. Nationally, it's still over twice as much, so moving to a cheaper state doesn't really solve the problem, either. This is similarly true in the majority of the US… Seattle, Austin, New York, Portland, LA, etc. www.businessinsider.com.au/chart-australian-wages-house-prices-2018-3

    • @GeldorfMcleod
      @GeldorfMcleod Před 3 lety +1

      and why would buying a house; if you could do it; not benefit the economy; more than permanent austerity ; service cuts and low wages ; for the lower waged anyway.

    • @basspig
      @basspig Před 3 lety +8

      But taxes were exponentially lower back then. In 1966 my taxes were covered by 1 week of wages. Today they exceed my annual ss income.

    • @WellBattle6
      @WellBattle6 Před 3 lety +3

      basspig May I inquire were you lived to get such low taxes?

  • @KevinButler55
    @KevinButler55 Před 3 lety +21

    I find it amusing how professional the "Is the money printer causing inflation" card looks at 2:47

  • @mwbgaming28
    @mwbgaming28 Před 3 lety +16

    The problem is when prices increase faster than wages
    Look at the poor bastards on centrelink, even disability pension is insufficient to pay the rent outside of government housing, now imagine living in private rental on less than $300 per week (for all household expenses)

  • @ddmcdono
    @ddmcdono Před 3 lety

    @Economics Explained, you have just picked up a new subscriber due to your excellent explanation of inflation, hyper-inflation, and some of its variants. I thank you and look forward to viewing your other videos. "Two opposable fingers up"!

  • @ethanbrinkman7110
    @ethanbrinkman7110 Před 3 lety +122

    *sees video posted a second ago* Me: oh yeah time to procrastinate

    • @EconomicsExplained
      @EconomicsExplained  Před 3 lety +106

      We understand you have many options for your prcrastination and we would like to thank you for choosing to procrastinate with Economics Explained! We hope to see you again soon.

    • @markonfilms
      @markonfilms Před 3 lety +3

      One of my favorite ways to pass the day while I learn!

  • @QuestionEverythingButWHY
    @QuestionEverythingButWHY Před 3 lety +224

    “Don't think money does everything or you are going to end up doing everything for money.”
    ― Voltaire

    • @Grizabeebles
      @Grizabeebles Před 3 lety +18

      I hope I live to see the day when people stop counting the value of things in money and start counting value in terms of *calories.*
      Economics predates our current models of thermodynamics - there's no such thing as perpetual motion, ergo there's no such thing as perpetual growth.
      The key to a stable and prosperous economy is meeting everyone's needs while also reducing costs and eliminating overproduction.
      It's what every living thing on the planet already does.

    • @capitainebonhomme1609
      @capitainebonhomme1609 Před 3 lety +3

      Voltaire never said that
      Haha 😂🤣

    • @voxomnes9537
      @voxomnes9537 Před 3 lety

      @@capitainebonhomme1609 He probably didn't.

    • @Booth-
      @Booth- Před 3 lety +4

      Everything is about money, except money.
      Money is about power.
      -Gina Reignhart

    • @louisejoel
      @louisejoel Před 3 lety +1

      Oh but I wish I had a real garden to tend sometimes

  • @romin7255
    @romin7255 Před rokem

    I love your videos man. They're as clear as such subjects can be (LOL)... and they're rather fun !

  • @aceausdesigns2536
    @aceausdesigns2536 Před 3 lety

    Nice video and something I was searching.

  • @LeRoiJojo
    @LeRoiJojo Před 3 lety +46

    Last time I was this early, a dollar saved in the mattress was indeed a dollar saved.

  • @chillian12
    @chillian12 Před 3 lety +60

    Great, now we all can become trillionaires and weave baskets out of money! Always wanted a Benjamin Franklin backpack!

  • @johnhunt5089
    @johnhunt5089 Před 3 lety +65

    "All we can do in the meantime is hope that this future is managed carefully, and make sure that we plan around this new reality"
    In other words, we're doomed

    • @MPlain
      @MPlain Před 3 lety

      Trekonomics. No money is the future. We don't need it.

  • @lesliehorwinkle
    @lesliehorwinkle Před 3 lety +6

    Knocking off a zero hurts more but keeps everyone in sight of what's going on.

  • @lucaschang689
    @lucaschang689 Před 3 lety +7

    I saw my name as one of the Patrons! Awesome! Thanks again Economics Explained! You are doing good work!

  • @thelogicmatrix
    @thelogicmatrix Před 3 lety +20

    It kinda sucks how things are getting more expensive but we aren't earning more

    • @codycast
      @codycast Před 3 lety

      Who’s “we”? I am. My employees are. Our vendors are.

    • @will-wowdk1930
      @will-wowdk1930 Před 3 lety +5

      @@codycast most people cant afford things

    • @OwenPrescott
      @OwenPrescott Před 3 lety

      Invest in things that will become more expensive over time

    • @Grizabeebles
      @Grizabeebles Před 3 lety +7

      @@OwenPrescott -- That's like telling a drowning man to "swim harder". In order to invest, you have to be able to accumulate an initial nest egg of capiital. More than 15% of workers in the U.S. are stuck working part-time jobs. About 10% of the work force were working 2 jobs before the pandemic.
      It's really, really _hard_ to work on your investment portfolio when you're working 60+ hours per week just to keep a roof over your head and food on the table.
      And before you start - if there's not enough captial to make inveatments, there's not enough capital to buy a house or go to college. It's not about skill or work ethic - it's about capable people not having inherited family wealth.
      If you want a system that rewards merit, make health care, housing and education human rights - life, liberty and the pursuit of happiness.

    • @codycast
      @codycast Před 3 lety

      william super I wouldn’t say “most”. Our biggest company challenge is still finding good people who will work. We don’t even require any special skills. Just work hard. Honest. Able to communicate. $60k to start. And can’t find people.

  • @veganchaatparty
    @veganchaatparty Před 3 lety

    Awesome!!! Thanks for sharing!!

  • @WhatIfTrayvonMartinHadAGun

    2 years later, it would be a great time for a new video on this topic...

  • @iihamed711
    @iihamed711 Před 3 lety +35

    I just finished watching a meme of the inflation of Venezuela seconds ago and I get recommended this

  • @redhidinghood9337
    @redhidinghood9337 Před 3 lety +44

    When will we see "Economics of Economics Explained"?

  • @1000xGLOBAL
    @1000xGLOBAL Před 3 lety +11

    Today it's not about return ON capital. Today it is about return OF capital.

    • @tims9376
      @tims9376 Před 3 lety +1

      What does this mean?

  • @aceausdesigns2536
    @aceausdesigns2536 Před 3 lety +1

    Finally proud to see someone from Australia ❤️ love this video so easy to understand.

  • @charlieross6866
    @charlieross6866 Před 3 lety +33

    Reminds me of the Good Place: of course, the opposite is also true, and precedes to make a whole new argument.

  • @edmundthespiffing2920
    @edmundthespiffing2920 Před 3 lety +31

    I live in lebanon, hyperinflation is a thing since January.

    • @merlinthelemurian3197
      @merlinthelemurian3197 Před 3 lety +2

      I hope you're doing okay. I'm sure the big boom that happened there didn't help the situation

    • @lucianoosinaga2980
      @lucianoosinaga2980 Před 3 lety

      @@scratchsoft2347 wrong

    • @centerous411
      @centerous411 Před 3 lety

      How much dollar today?

    • @habibhteit6715
      @habibhteit6715 Před 3 lety

      kint 3am fakker inno we should ask EE for a lebanon video

    • @vkray
      @vkray Před 3 lety

      Don’t worry. Only America can give you justice.

  • @Troublesomenights
    @Troublesomenights Před 3 lety

    Great update Andy

  • @dekyl935
    @dekyl935 Před 3 lety +33

    'inflation is something take for granted these days' laughs in greek
    'deflation is worse than inflation' cries in greek

  • @tariqueanwarmulla
    @tariqueanwarmulla Před 3 lety +25

    So me being unemployed is helping my country 😀

  • @cellwrkz8006
    @cellwrkz8006 Před 3 lety +3

    Love the vids keep up the work

  • @michaborski7383
    @michaborski7383 Před 3 lety

    incredible, one of the best material

  • @alysonbritta4312
    @alysonbritta4312 Před 3 lety +9

    stock has a relatively high short interest. there recent earnings report was way better than expected. I think they may also see high short term gains.

    • @smolmanager3511
      @smolmanager3511 Před 3 lety

      How do you reposition your stocks to be more profitable, do you manually pick them?

  • @beastyms
    @beastyms Před 3 lety +28

    Can you do a video "What if there was no inflation or deflation"
    What kind of benefits and disadvantages would such an economy have.

    • @Jack-sq6xb
      @Jack-sq6xb Před 3 lety +2

      Uhh is that even possible, like wouldnt the economy just break? Il not an economist so i could be wrong but the economy would just grind to a halt

    • @MikeSnitkovski
      @MikeSnitkovski Před 3 lety +2

      any precise value like 10 or 3 or 0 is impossible to achieve in the first place
      even in full command economy it will be a "paper value" that only exists in reports

    • @garethbaus5471
      @garethbaus5471 Před 3 lety +4

      It would be incredibly difficult to get 0% inflation, but the consistancy might make life simpler, definitely an interesting concept.

    • @capnbilll2913
      @capnbilll2913 Před 3 lety

      Stability. And far less government power.

    • @WaviestMetal
      @WaviestMetal Před 3 lety +1

      I'm studying economics so this is actually something I know instead of the wild speculation I have been seeing in this comment section. No inflation or deflation would mean the economy itself is in completely steady state. To achieve this, the amount of people operating within the economic system would have to remain constant, as would the currency in circulation, as would the amount of producers operating within the system. Even something as simple as population growth can entirely destabilize this equation, meaning it's never realistically possible to achieve in the real world unless human immortality becomes a thing.
      An economy is "alive" in a way, it is always in a constant state of flux because it involves the exchange of goods and currency... well across the entire globe at this point. There are far too many actors involved for it to ever remain truly stable.

  • @wecsam
    @wecsam Před 3 lety +21

    9:35: "Why buy a Toyota Camry this year if that same money could buy a BMW next year?"
    **Scotty Kilmer has entered the chat.**

    • @michaelhunsinger8351
      @michaelhunsinger8351 Před 3 lety +6

      Scotty: "don't ever buy a BMW they are endless money pits"

    • @craigcarter400
      @craigcarter400 Před 3 lety +1

      In that example it would be better to buy the Camry and invest the difference.

    • @applehotful
      @applehotful Před 3 lety

      Lol

    • @gemmrk
      @gemmrk Před 3 lety

      Scotty is awesome

  • @youtubesucks8024
    @youtubesucks8024 Před 3 lety +6

    If inflation is bad but deflation is worse, why not keep inflation at 0?

  • @mannyespinola
    @mannyespinola Před 3 lety

    Thank you for this video

  • @armin1048
    @armin1048 Před 3 lety +33

    11:10 Would you perhaps make video on the minimum wage? Seeing as economists are usually against price controls, and a minimum wage is basically a price control on labor, I would be interested in your take. Milton Friedman had a lot to say about that, too ;)

    • @analcommando1124
      @analcommando1124 Před 3 lety

      Milton Friedman was an evil little dwarf who perpetuated an economic scam.

    • @slurpii4669
      @slurpii4669 Před 2 lety

      Mixed economies work better than traditional capitalism, you just need to compare us to Scandinavia, funny thing is that Scandinavian countries apply restrictions to everything except the minimum wage

  • @darknecropsy
    @darknecropsy Před 3 lety +147

    “inflation is good” says the wealthy economist while your average joe can hardly make it to next month and is a hospital visit away from ruin while everything around him is getting more and more expensive...

    • @MikeSnitkovski
      @MikeSnitkovski Před 3 lety +38

      I don't understand...
      if you are poor, just stop being poor...
      /sarcasm

    • @caorusso4926
      @caorusso4926 Před 3 lety +13

      lol just buy cake lmai

    • @NagorbMan
      @NagorbMan Před 3 lety +46

      Yeah, Inflation is good for banks and rich people who have money in assets. Its also great for people who are up to their eyeballs in debt (like every government). For everyone else its at best neutral assuming their inflation adjusted wages are the same for the same amount of work, and more likely they're just losing money. The real suckers are the people who are responsible and save their money and don't spend more than they have.

    • @sebas8225
      @sebas8225 Před 3 lety +10

      The rich part is that when the average joe wants to invest, it usually ends in a scam or a robbery, where the bank gets away with it case State money print, etc...

    • @thegypsy8779
      @thegypsy8779 Před 3 lety

      @@NagorbMan Those people better wake up and buy some stocks, silver, and gold

  • @christopherweston6028
    @christopherweston6028 Před 3 lety

    Really good, TY

  • @vicencalbets612
    @vicencalbets612 Před 3 lety +4

    Deflation has always been said to be bad because it is very bad if you own money, but it's very positive if you have money.
    Now ask yourselve who has the more debt in a country and who has the more savings.
    Yep, the goverment has the more debt and the ordinary people has the more savings so, why do you think inflation is said to be good? and deflation is said to be bad?

  • @carlosfuentes9506
    @carlosfuentes9506 Před 3 lety +3

    I just watched your video on the history of global banking, and I’m in shock. Please talk more about the 2nd half of that video and about Dr. Richard Werner!

  • @marcusw4107
    @marcusw4107 Před 3 lety +8

    " This videoes sponsor is you" meanwhile i get four commercials in this video 🤣

  • @glenngilbert7390
    @glenngilbert7390 Před 2 lety

    Thank you!

  • @menguardingtheirownwallets6791

    The price of food is rising at 15% per year, but the government says that inflation is only 1%.
    Yeah, right.

    • @ashthegreat1
      @ashthegreat1 Před 3 lety +6

      And house prices going up 10% year on year sounds a whole lot like inflation too.... but let’s not include that everyday expense in the calculation. Gets in the way of the statistical ‘narrative’. Definite oxymoron there right?

    • @jamesholt7340
      @jamesholt7340 Před 3 lety +5

      I've seen no increase in the price of food,maybe exotic fruit but a gallon of milk is only $2.30 ,same for the last 15 years...gas is only $2 a gallon compared to $4 10 years ago

    • @DumbledoreMcCracken
      @DumbledoreMcCracken Před 3 lety

      @@jamesholt7340 agree.
      There can be no PRICE inflation without WAGE inflation.
      The median income is flat or declining.
      Millionaires have to pay at lot more for luxuries, like Hypercars. But those are discretionary purchases.
      Things people must buy can't go up if people don't have more money.

    • @iWambo
      @iWambo Před 3 lety

      DumbledoreMcCracken the statement there can be no price inflation without wage inflation is not true. Idk where you got that idea. Wage inflation can be a cause of price inflation but without wage inflation, tax inflation will also causes price inflation.

    • @DumbledoreMcCracken
      @DumbledoreMcCracken Před 3 lety

      @@iWambo where did you get that idea?
      My statement is relatively well known if not popular in economics.

  • @whateverllllllllllll
    @whateverllllllllllll Před 3 lety +5

    Thanks for another intersting video. However, I feel you missed two important points related to inflation. First, the issue of sticky wages. The second, how inflation benefits those that that have access to credit or assets which increase in value as the money supply increases. Both tend to increase wealth inequality..

  • @EckosamaGhostTsushima
    @EckosamaGhostTsushima Před 3 lety +11

    hyperinflation is already her-
    money printer go *brrrrrrr*

  • @christopherweston6028
    @christopherweston6028 Před 3 lety +4

    I'm curious how automation will effect these systems and if traditional responses to the fluctuation of indicators will keep the system in balance.

  • @Rob-fx2dw
    @Rob-fx2dw Před 3 lety +1

    It is absolute B. S. to say nobody is going to leave their work unless they get a pay increase . People leave employement for a variety of reasons including wanting reduced working hours or more suitable work hours, wanting to relocate for family reasons , relocating for health reasons, relocating for lifestyle reasons and many more factors.

  • @MardukGKoB
    @MardukGKoB Před 3 lety +5

    Ten years ago, Arby's used to have special offers of five sandwiches for five dollars. Today, the equivalent special deal is two sandwiches for six dollars. That sounds like prices have tripled. But if you look at the official measure of inflation, which in the US is not based on consumer purchases, you'll see that it comes nowhere near the actual increase in price. My grocery spending has roughly doubled in the last three years. Not reflected in the official inflation rate. I say, bring on the inflation - inflation is good for debtors and bad for creditors. In the current circumstances, almost anything that is bad for creditors is good for the economy.
    Also, what increase in unemployment payments? Not many people actually got that extra money, and a lot of people were even denied the ordinary level of unemployment. I know three people who lost their jobs, all qualified for unemployment and the extra money, only one actually got unemployment at all and he didn't get the extra amount. The "stimulus" was just another big corporate welfare program, designed to cripple the economy. It's looking like starvation will break into the top ten causes of death in the US this year, and maybe top three next year. It was 44th in 2017, according to the CDC (it's called malnutrition there).

  • @brunorohden7413
    @brunorohden7413 Před 3 lety +20

    The original definition of Inflation is the expansion of money supply, while the increase of price levels are its result. The definition has been changed to benefit the government, as the expansion of the money supply is the government falt, the overall increase of price levels are the capitalism fault.

    • @sebas8225
      @sebas8225 Před 3 lety +4

      Socialize the losses, privatize the gains, how the rich get richer and the poor get poorer.

    • @chillinchum
      @chillinchum Před 3 lety

      How did you come to these conclusions?

    • @brunorohden7413
      @brunorohden7413 Před 3 lety +2

      Some study, look for the old definition of inflation, you will be able to find on old dictionaries if you access to those. From that point on you will need some research, if I'm not mistaken Rothbard wrote something about it, but the objective behind changing the definition was never explicit, nor could it be, with some common sense you will reach it.

    • @Tate.TopG.
      @Tate.TopG. Před 3 lety

      @@brunorohden7413 wow, I didn't know anything about it. We are getting played by the system.

    • @QoraxAudio
      @QoraxAudio Před rokem

      @@brunorohden7413 That's not an old definition. That is the definition of inflation.
      But people often confuse lower value of money with higher prices of products, since they tend to be inversely proportional to each other.

  • @jevans101
    @jevans101 Před 3 lety

    Great video and love hearing the home twang on the www.
    However, noticed it on myself when I moved OS, that I didn't pronounce "properly" properly. You're in the same boat ;)

  • @staygrayed1099
    @staygrayed1099 Před 3 lety +6

    The stock market has suffered the impact of the virus and electoral debates and has affected major holding companies. However, market analyst see a new favorable shift coming in the market. Taking advantage of the situation and buying shares of global brands at minimum prices would be best.

    • @ignatibaraig1122
      @ignatibaraig1122 Před 3 lety

      The stock market is appreciating with various stocks like, gold, , bentoil, AMZN, SHLL, NVR, PLNHF13. I've gotten a 120% increase this year. Actually great thanks to Paul my fund manager and analyst.

  • @richdobbs6595
    @richdobbs6595 Před 3 lety +11

    As somebody with a bit of exposure to Austrian economics, I do not endorse this message. I like the AE definition of inflation better: Inflation is a general increase in the money supply. CPI is a kludgy estimate of the effect of inflation for a particular part of society. In particular, it is subject to Goodhart's law: "When a measure becomes a target, it ceases to be a good measure." For those folks that will eventually retire, it is idiotic to ignore the increase of share prices that is driven by increasing the money supply. For somebody actually paying for things, it is pretty clear that CPI is a poor government joke. Food, healthcare, education, housing... They're all gamed in the CPI.
    That said, since the purpose of the current inflation is to prevent the collapse of stock prices, it seems unlikely that it will be lead to lead to hyperinflation. Instead, it will be managed to lead to a controlled increase of prices in the stock market, for the benefit of a shrinking number of folks that meaningfully participate in the stock market, with the net effect of collecting in assets from victims to the beneficiaries. Hyperinflation won't happen in the USA as long as the system keeps at least 10 carrier groups functional.

    • @thewhitefalcon8539
      @thewhitefalcon8539 Před 2 lety +1

      "Inflation is an increase in the money supply" is a useless definition. We have a term for an increase in the money supply. It's called an increase in the money supply. It doesn't need another name.

  • @freddyfx231
    @freddyfx231 Před 3 lety +142

    - Everyone: Money printer go brrrr
    - Me in Venezuela: Isn't that the default state?

    • @richdobbs6595
      @richdobbs6595 Před 3 lety +2

      Since this situation seems to persist, I'm guessing that little of the economy is actually carried out in Bolivars. It doesn't seem like Venezuela is going through the uninterrupted exponential growth that Zimbabwe and Weimar Germany went through. I'm curious, fill me in!

    • @wigglebot2368
      @wigglebot2368 Před 3 lety +1

      How do you store cash in Venezuela?

    • @freddyfx231
      @freddyfx231 Před 3 lety +4

      @@richdobbs6595 Actually I don't know how much of the economy goes in actual Dollars I'm guessing a lot, but even if the majority of us still use Bolivars its just to facilitate the trade but prices are set in Dollars, we have the government's official exchange rate and the not so official varius exchange rates of the black market, the saddest part of it all is that much of the economy it's "Dolarized" but the vast majority of the people don't have access to Dollars or even some meaningful equivalent in Bolivars, there are the cryptocurrencies and services like airtm, paypal or payoneer too they facilitate trade and for those who can enables some sort of savings anything is better than have mountains of Bolivars

    • @freddyfx231
      @freddyfx231 Před 3 lety +4

      @@wigglebot2368 if you're lucky enough to keep some of the Dollars in circulation that's a way but that's a little minority, usually via cryptocurrencies o services like paypal, payoneer or airtm, but most people just barely make enough to get by so there isn't much going to savings any way

    • @Mythhammer
      @Mythhammer Před 3 lety +1

      @@wigglebot2368 Dump trucks?...

  • @freckrpeckr
    @freckrpeckr Před 3 lety +2

    Nice video, but I would have mentioned how house prices (the main cost for households) isn’t included in the CPI, also how the substitution of good works in estimating inflation and how this can downplay inflation, and finally how technological forces, especially going forward, can easily contribute to price deflation. Thoughts? Cheers.

  • @tinyrye
    @tinyrye Před rokem

    Thanks!

  • @pinned.byjohnmichaelgodier1726

    A financial crisis is a great time for professional investors and a horrible time for average ones.
    Think deep..

    • @BBC....
      @BBC.... Před 3 lety

      @Adrian Henry
      Which is the best asset to invest? I want to know.

    • @pnnedbyRabbiSimonJacobson
      @pnnedbyRabbiSimonJacobson Před 3 lety +1

      Gold or bitcoin

    • @user-vv2rm1oe9w
      @user-vv2rm1oe9w Před 3 lety

      @@pnnedbyRabbiSimonJacobson
      Gold is physical, Bitcoin is digital and has strong cryptography. Bitcoin is the new digital gold

    • @cryptocapitalventure6096
      @cryptocapitalventure6096 Před 3 lety

      Don't see bitcoin investment as a risk, in every success there is always a risk, the ability to take those risk makes you successful.

    • @thinkmedia5705
      @thinkmedia5705 Před 3 lety

      The recent trend is the fact that crypto currency traders can never be poor.
      Thats always my motivation

  • @redmeat4vegans62
    @redmeat4vegans62 Před 3 lety +11

    Blast from the past - Stagflation. But my experience of what was happening in America in the late '70s and the brief explanation you gave of stagflation do not add up to me. And it is likely because I need for you to do an excellent explanation for what happened to the US economy in the '70s.
    Could you please, please do a video of the US economy of the '70s?

    • @caorusso4926
      @caorusso4926 Před 3 lety

      People that don't experience stagflation will never understand, same thing with hunger

    • @cageybee7221
      @cageybee7221 Před 3 lety +1

      Tl;DR the 70's suffered stagflation because of a fuel shortage that dampened economic growth while boosting up prices, combined with a recent abandonment of the gold standard that spiked inflation.

    • @cageybee7221
      @cageybee7221 Před 3 lety +1

      @Liberty Meister I would also throw in *Kapital volumes 1-3*

    • @cageybee7221
      @cageybee7221 Před 3 lety +2

      @Liberty Meister ah so you only read economics books that agree with your politics. shoulda just started with "i'm a hack" and let us all know to ignore you.

  • @tropicalpnch4549
    @tropicalpnch4549 Před 3 lety

    I'm a new sub to your channel so I'm still looking to see if this was already answered in a different video of yours, but I'm really curious to know how economics are impacted if consumer staples like basic food, water, housing and clothing were no longer scarce and everyone had enough somehow (hypothetically, just for the sake of thinking about this.) Would the consumption of above-basic goods and luxury goods keep things stable? Would there be a net benefit from eliminating scarcity of these things in regards to the economy? Anyway, keep up the great work on this channel!!

  • @Tmrfe0962
    @Tmrfe0962 Před 3 lety

    So interesting, thank you...

  • @ftlengineer
    @ftlengineer Před 3 lety +26

    The thing with inflation; it is a form of entropy. If going from inflationary to deflationary will cause problems, so will going from high inflation to low inflation. The rate of inflation is a ratchet which does not naturally decrease. For this reason, I am concerned that once inflation does catch up (and it must; the money pool is increased and the amount of goods and services produced are down) that the inflation rate will never be able to return to a healthy level.
    50% inflation per month? Probably not beyond one month, anyway. But we could wind up trapped in the 10% per year range, and that would likely force stagflation.
    Ultimately, I do not find the arguments against deflationary policies convincing. Sure, going from inflation to deflation causes problems, but fundamentally it just encourages different behavior. An inflationary economy encourages borrowing, deflationary encourages saving. I prefer deflationary because saving is a fundamentally healthier norm behavior than borrowing, but either of them will have problems if you exceed the 5% per year range.

    • @hadynharris494
      @hadynharris494 Před 3 lety +1

      surely governments will increase taxes when things get back to normal to remove excess money from circulation?

    • @JOCoStudio1
      @JOCoStudio1 Před 3 lety +5

      @@hadynharris494 Yeah, but you can't expect them to increase taxes in the right places so it will still disproportionatly affect the poor in a big way.

    • @whitesquirrel4131
      @whitesquirrel4131 Před 3 lety +2

      It's funny because none of the money is backed by anything, just slave notes. Sounds smart though. I hope you were well educated on the scam.
      Life is a circus, the rich are the carnies, and you rubes are the suckers born every minute.

    • @ieuanmartin7845
      @ieuanmartin7845 Před 3 lety +1

      It's true but deflation and increased savings severely slows down the economy. Look at Japan. The Japanese Government have had to spend huge amounts to prop up the economy due to the fall in domestic demand

    • @tylerbrown4483
      @tylerbrown4483 Před 2 lety

      Wow. Almost all of that was treacherously wrong.

  • @hweigel528
    @hweigel528 Před 3 lety +9

    I still don't understand why "wage inflation" is so bad (15:31) according to conventional wisdom. Worker productivity rose over the past several decades, so shouldn't we expect/promote a proportional amount of wage inflation?
    Maybe I'm just a center-left armchair economist, but it seems like the fiscal policies which "defend against" wage inflation exacerbate income and wealth inequality.

    • @richdobbs6595
      @richdobbs6595 Před 3 lety +6

      Stock price inflation is good. House asset inflation is good. Education inflation is acceptable, because we need an educated workforce. Healthcare inflation can't be argued against or you want to people to die. Wage inflation is apparently "real inflation".

    • @Arhpeco
      @Arhpeco Před 3 lety +2

      I woud also prefer more in deph explanation or real world example. More money (to a point) might lead to less workhours, less burnout, greater satisfaction, better productivity and more spending (simmilar to german or french economy) building a fundation for strong middle class that coud afford paying a little more for produced goods.

    • @richardallen1555
      @richardallen1555 Před 3 lety +2

      It’s all about comparisons if you inflate all wages costs equally you haven’t actually payed people more value you just increased the number

    • @hweigel528
      @hweigel528 Před 3 lety +2

      ​@@richardallen1555 Not necessarily! As the video discusses, the "Consumer Price Index" is the main metric used to measure the harmful effects of inflation.
      As far as I know, there's no law which says that CPI and wage inflation MUST be highly correlated. Most goods are price-sensitive, they won't get more expensive just because consumers have more money.
      If I understand correctly, the typical argument goes: "Well if wages rise then companies will have to spend more on labor, so they will be FORCED to raise prices." But large companies have saved record amounts of liquid assets and spent record amounts on unnecessary buybacks in recent years. So I don't think this is a legitimate argument either.

    • @ritwikreddy5670
      @ritwikreddy5670 Před 3 lety +1

      @@hweigel528 "Most goods are price sensitive, they won't get more expensive just because consumers have more money". That's where you may be wrong. Most goods are price sensitive, and that's why they get more expensive as consumers have more money.
      If consumers have more money, then the value of the money vs their time and comfort decreases. They would want more goods since they have better value to price ratio now( essentially like buying an item on sale). And since most productions have very little flexibility in volume of goods produced, the output of goods remains almost constant ( unless there is a technology breakthrough that enables better production). This drives the demand up driving the prices up.
      It definitely won't cancel out the effect of increase in wages if the goods output remains constant or increasing, but if output is decreasing like now, it may.

  • @AndyLambg
    @AndyLambg Před 3 lety

    Thk for this video liked n subd

  • @ASMRSilentStocks
    @ASMRSilentStocks Před 3 lety

    great video, thanks for putting the information in a clear and enjoyable video 👍👍 I see a lot of taxation coming, also I think inflation numbers are skewed however I dont want to come off as some major conspiracy person.

  • @spacecanuk8316
    @spacecanuk8316 Před 3 lety +5

    Was going to say that the inflation over the last while seems to be more in the capital markets than the ground level economy.

  • @Griffatron3000
    @Griffatron3000 Před 3 lety +16

    When your ADHD kicks in and you're just staring endlessly at b roll footage

  • @777mofo4
    @777mofo4 Před 3 lety +66

    “Can we print trillions forever?” Short answer, No.

    • @pauliusvismantas2859
      @pauliusvismantas2859 Před 3 lety +7

      Yeah, u will run out of paper or ink, stupid question.

    • @777mofo4
      @777mofo4 Před 3 lety +3

      Paulius Vismantas $100 trillion dollar ball point pen.

    • @shiva_689
      @shiva_689 Před 3 lety +4

      No, you'll reach quadrillions eventually

    • @georgeemil3618
      @georgeemil3618 Před 3 lety +7

      If the superrich weren't hoarding all the cash and actually release it into the economy, money-printing can slow down.

    • @ashthegreat1
      @ashthegreat1 Před 3 lety +3

      Will the sun shine forever? Short answer - also ‘no’. But a ‘fcuking long time’ is close enough 😉

  • @storminmormin14
    @storminmormin14 Před 3 lety +1

    I also wish you had addressed the problem of reserve currency dumps that come along with a lack of faith in a currency.

  • @sunname6252
    @sunname6252 Před 3 lety +4

    It feels like there are 3 main take aways:
    1: In an ideal world, the relative value of currency would be constant, but since this is realistically impossible, having it trend slightly so that currency is worthless is easier to handle than the inverse.
    2: A 100% competitive employment rate is unsustainable as it creates a feedback loop of having to outbid everyone else. (Possible solution? Have a non competitive base line, IE Government sponsored construction that feeds everything else)
    3: As long as money keeps moving, the printer can keep going. If everyone was given a million dollars, and goods/services supply was able to satisfy the consumption of that million dollars, no harm done, but if the supply of goods and services can not meet the new demand, costs go up and the value of that million goes down.

    • @mikeg9b
      @mikeg9b Před 3 lety

      1. Maybe not. Constant money sounds like the gold standard. Most economists think leaving the gold standard was a good move. Here's a video trying to be balanced in showing both sides of the argument: czcams.com/video/FbDZ0ObRXfE/video.html
      3. This has nothing to do with your comment, but here's a good video on the money printer (and its effect on stock prices) if you can think deeply enough to understand it. I wasn't able to, but maybe you'll do better: czcams.com/video/K3lP3BhvnSo/video.html. Ben Felix has the best investment CZcams channel I know of, BTW.

  • @droptimistic
    @droptimistic Před 3 lety +18

    I thought it said 4 months ago, then I realised it was 4 minutes lol

  • @West_Anderson
    @West_Anderson Před 2 lety

    I feel like a follow up to this video being that it's now a year later, would be fantastic.

  • @dannydaw59
    @dannydaw59 Před 3 lety +20

    When there's deflation people are still going to buy what they need like food, utilities, gas. They're not going to wait to buy those things they need.

    • @varghen0
      @varghen0 Před 3 lety +2

      Exactly. And nowadays (with inflation), people don't hoard food, utilities and gas fearing they will be more expensive the next year. Small inflation and deflation doesn't make people care about that.

    • @ChaotikmindSrc
      @ChaotikmindSrc Před 3 lety +9

      That thing about deflation being so terrible is bullshit, we have seen no country dying of deflation, on the opposite there are plenty of inflation catastrophic exemples.

    • @bonbi16
      @bonbi16 Před 3 lety

      @Chaotikmind bc deflation is less likely to happen

    • @ChaotikmindSrc
      @ChaotikmindSrc Před 3 lety

      @@bonbi16 That's kind of a moot argument, since gov always push for an inflationary system...

    • @ChaotikmindSrc
      @ChaotikmindSrc Před 3 lety

      @@bonbi16 And btw a lot of economist disagree with that