INFLATION, Explained in 6 Minutes
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- čas přidán 9. 06. 2024
- Why Everyone is Worried About Inflation
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I'm hearing a lot about inflation lately, so I want to break it down. What it is. Why it happens and it means for all of us. I hope this is helpful!
Thanks to all my macro Econ professors.
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Thanks for being here everyone.
to all the economist watching: I KNOW I KNOW I KNOW there's SOOO much more complexity and nuance to inflation. my purpose here is to give the broad intro into the root idea of inflation especially as it pertains to this round of inflation. condensing what could be 12 years of higher education into 6 minutes.
-Johnny
I love to HEAR ABOUT THIS !! Cuzz I had talk soo Much ABOUT it sooo its really Nice to see THIS my brorther god bless u AMEEN !
Oh that's the inflation we talkin about
@@oliverbanes5121 helll Yeayea I give u right bro!!
If only this was what is happening. But it's not. The check was only for the US. But inflation isn't only happening in the US. It's happening all over the world. That check wasn't that big even.
Over here in Europe, inflation is through the roof too. But not because of a stimulus check. You are right about one thing. There is too much money in the market. But it's not at the bottom, it's at the top. And the bottom will suffer.... AGAIN!
Your Venuzuela inflation BS was because of US intervention... your government cannot let a country create their own policies if it hurts your oil business. It's well documented.
Also, your Private bank explanation is false... not even inaccurate it's simply false.
This video is a complete and utter lie.
You have an excellent channel, please upload videos at a higher rate.
Everything costs more, so I ask for a raise, but then companies raise prices to cover their costs, and here we go again!Feels like a hamster wheel, going nowhere fast.
Knowledge is power. Research your industry's average salary and be prepared to negotiate for a raise that reflects the rising cost of living. Strong data makes a strong case. Personally I gave up on the raise and started chasing supplementary income via bond dividends and stocks.
Inflation has turned the stock market into a terrifying ride. So I hired a fiduciary to be my investment compass. There are aspects of market trend that is difficult for the untrained eyes to see. I have made more than 350% through my estateplanner(fa) by alternative investing. The portfolio comes with perks as well.
I need a guide so i can salvage my port-folio due to the massive dips and come up with better strategies. How can one reach this advisor??
Google Sonya Lee Mitchell and do your own research. She has portfolio management down to a science
I ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
I just want my money to keep outgrowing the inflation rate. That’s why I'm looking for companies now to put in $200k for a start. Just don't know strategies to employ in buying stocks to invest in
The rules are simple. Chose quality stocks and follow them up. If you're not one for such complexities, hire a wealth manager to grow your money. I use the latter. Pulled in more than $46k in the last two months alone.
I agree with you. This is what I do too. I'm not cut out for financial reports and industry news, so I use a wealth manager. Profits have been very consistent since 2022. i've pulled in roughly 200% in ROI since then
I've been thinking about switching but have been hesitant. Could you recommend your financial advisor? I'd appreciate some assistance.
*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
It's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.
Yeah, things may be hard right now, but I've come to realize both bear and bull market, recessions and economic boom, all provide opportunities to make high gains, I used to call bluff on folks that bragged about making a fortune from such down-markets until I happened to do so myself
I agree. I've been working with a financial advisor since 2020, and I return up to 15k every month, and I don't even have to lift a finger. Although I also think the reason I make this much is because I started with significant capital.
That makes a lot of sense. To be on the safer side and not second guess your market decisions, I’d suggest you reach out to a proper investment adviser for guidance, they’re better equipped at understanding market patterns/movements and adjusting portfolio to match up with these market trends
Monica Shawn Marti is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
Nice Jonny, if this inflation continues to be allowed to grow unimpeded then I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.
....Numerous opportunities exist to achieve substantial profits at present, but executing high-volume and nearly flawless trades requires the expertise of real-time professionals with an ISDA Agreement. This agreement allows investors to participate in sophisticated trades, exclusive to seasoned individuals, and unavailable to amateurs. Attempting to be a high-stakes trader without an ISDA is akin to trying to win the Indy 500 riding a llama.
I'm sure the idea of an invstment-Adviser might sound controversial to a few, but a new study by Motley-fool found out that demand for Financial-Advisers sky-rocketed by over 42% since the pandemic and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 580k within 16-months from an initially stagnant Portf0lio worth 85k.
Inflation is over 10% here in the UK, but as we know it's definitely way more than the Government would like to admit. My plan is to earn more passive income and ride this out, can your Investment-adviser assist?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with 'MICHELE KATHERINE SINGH' for the last five years or so, and her returns have been pretty much amazing.
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
It's interesting that when central banks like the Fed start raising interest rates, inflation of more than 2% has been a concern. Since more investors would surely take their money out of the stock market as a result of the rising interest rate, I view this as a very significant problem. However, there are still some investors that I know of that make more than $360,000. I wish I could pull that off.
Very likely! especially with the market as it is now. There are many ways to make fantastic profits, but only experienced market experts should handle such complex deals.
AGREED! Over 3 years now, I've made over 1.7 million by simply following a coach's advice. I was on the sidelines for a while watching, trying to determine the best time to get in, before I came across a coach, recommended by my wife. I was reluctant at first but I went ahead and contacted the coach. Best decision yet
This sounds interesting. My portfolio is in the red. Can you recommend your analyst, please?
Vivian Carol Gioia is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Johnny, one of the main reasons we watch your videos is that they're long. So please never think of that as an issue, it's a blessing for us that you really make sense out of huge topics in less than 30 minutes!
Love everything you make!
Check out the inflation video by the "some more news" chanel, they cover some things that Johnny's corporate sponsors won't let him talk about. I think that's why he made it so short, so he could leave out all the stuff his friends at the World Economic Forum might get angry about.
@@Cannabonsai I agree Johhny has no idea what he is talking about here, but i don't think it is bc he is in on a consiracy, rather he is applying a blanket economic ideology about inflation, while ignoring the know facts of supply shortages & profiteering on the basics which makes all prices rise (fuel, gas, electricity, fertilizer, building materials).
I hate it so much that so many ppl get so misinformed by this video.
Please see someone like Money & Macro, who is both a PhD AND importantly, not fixated on the neoliberal ideology he learnt at school, as Johnny appears to be (without him knowing it, I think he means well & has a good intention).
So true
@@Cannabonsai No, he made it short because the goal of this particular video isn't to in-depth explain inflation. It's so that people can spend a negligible amount of time to get a decent understanding of what inflation is, and how it happens
I need it to bc fast w crazy kids running around house so little bit here n there is big blessings. He’s great n love long vids when I can keep my eyes opened. 🌹
With inflation in the United States still excessive, most Federal Reserve officials expect to raise interest rates further this year, Chairman Jerome Powell has told a House of Representatives committee.
If you lack market knowledge, your best bet is to seek advice or support from a consultant or investing coach. Contacting a consultant may sound simple, but it's how I've managed to stay afloat in the market and increase my portfolio to roughly 65% since January. It is, in my opinion, the best way to get started in the industry right now.
I encountered ROCH DUNGCA-SCHREIBER through a CNBC interview, and I look her up. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested. You can hunt her up online if you require care supervision.
Inflation in the US is much lower than in Europe. Chill out.
I'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
I can’t focus on the long run when I should be retiring in 3years, you see I’ve got good companies in my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/unstable market doesn’t provide any calculated risk opportunities to make profit?
There are a lot of strategies to make tongue wetting profit especially in a down market, but such sophisticated trades can only be carried out by proper market experts
Very true! I've been able to scale from $50K to $189k in this red season because my Financial Advisor figured out Defensive strategies which help portfolios be less vulnerable to market downturns
@@martingiavarini I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you
@@hermanramos7092 My consultant is ‘’Catherine Morrison Evans’’ I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can look her up online if you care supervision. I basically follow her trade pattern and haven't regretted doing so.
One important thing missing from this explanation, is that one business raising its prices leads to increased costs for other business that they supply. So these business in turn have to raise prices in order to not lose money. It's a nasty feedback loop if it takes hold.
Does this in turn make inflation in one country spread to other countries?
@@haoyu53 Most of times it's minimal, the inflationary spread between nations depends on the level of trade between them.
yet the commies wanna blame "greedy corporations"
Go to 6:58 in the video. He said
"So what do businesses do ALL at the same time? They Raise Prices".
@@haoyu53 yeah in australia we get all our oil from foreign countries who have inflation on there own and less supply cause of russia. that means that its more expensive to ship things around making every other good more expensive leading to more inflation atm oil prices have doubled and lettus is now $11
Me, an Argentinian reading the title:
- You know, im a bit of a expert myself.
Me, an Irish person reading this comment : Hola. I'm a bit of a connoisseur as well.
@@ccman322 Zimbabwe would like to know your location
Venezuela: I am four hypered inflations ahead of you-
Me, a Russian reading this comment: Hola, my government tries it's best to keep up with yours.
Me, a Sri Lankan, I am a expert as well.
We even filed for bankruptcy!
The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?Read more
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
Very true, you can be passively involved in the markets and still amass wealth-gains using an investment advisor. I first dabbled in stocks late 2019, just before the pandemic, and that same year gained over 150% with no prior investing experience, basically all I was doing was following directions of my advisor. We are working on a retirement ballpark of $3m and I’m certain my goal isn’t farfetched after subsequent investments and tremendous returns so far.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.
Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just checked her out on google and I have sent her an email. I hope she gets back to me soon.
Warren Buffet said, the S&P 500, if one sticks with it, outpaces inflation by many percentage points. I just want my money to keep outgrowing the inflation rate. That is why I'm looking for companies now to put in $80k for a start. Just don't know how to proceed
The rules are simple. Chose quality stocks and follow them up. If you're not one for such complexities, hire a wealth manager to grow your money. I use the latter. Pulled in more than $46k in the last two months alone.
Could you recommend your financial advisor? I'd appreciate some assistance.
Thank you. I just checked her out on the web browser, She seems really proficient. I'll follow up with an email. Thanks for the lead.
*Sharon Louise Count* is a massive thief and con artist.
"What's inflation?"
Me, an Argentinian: Finally, a topic I am an expert on! (pls help)
You wanna know about inflation? Come to Sri Lanka.
@@troll2637 I have a friend living in Caracas, the capital of Venezuela... I think we know enough about inflation hehehehehehe (I know that the situation in Sri Lanka is horrible at the moment, I am just trying to make a quick joke)
@@matty6244 I will sri lanka over Venezuela any day. (watched too much Hollywood movies) lol
As a brazilian, seeing americans having to deal with inflation its kinda cute...
What I love more about this is how they're falling in the same traps that we did when inflation started back in the 2000s
"The companies are so greedy!"
"Stimulus checks aren't the problem"
"Inflation is a complicated issue, but our view is that it's driven mainly by cost increases"
"Price controls!"
They don't know what comes next. We didn't.
The market and the Fed consistently underestimate the sticky nature of inflation. The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $401k worth of stocks?
Even though there will probably be more pain in the future, investors should look for stocks like Royal Philips NV and Alstom SA that have been sufficiently battered down to be a bargain or get a great portfolio manager.
That's why I'm creating more income streams that I have complete control over. These will take me places that my day job never could. The earlier you start investing your money and putting it to work, the more time compound interest has to work its magic on your portfolio. This is how I'm going to achieve early retirement and it's possible for everyone. understand , know the path needed and stay committed to the craft
@@HarrietBemish How are we going to achieve all that given that the market has being a mess most of the year seems farfetched. I keep hearing that the market is pricing in a 60% probability of a 75 hike. But isn’t it also pricing in a dovish fed that’s going to pívot relatively quickly?
@@philipr1759 My advisor Christine Jane Mclean is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@@HarrietBemish Thank you for this tip , I must say, Christine appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, educational background, and qualifications, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
Interesting how over 2% inflation has been a concern when central banks and the Fed begin to hike interest rates. I consider the rising interest rate to be a very serious issue since it will undoubtedly cause more investors to withdraw their money from the stock market. But then I'm still aware of certain investors that continue to earn over $365,000. Wish I could accomplish that.
Very possible! Particularly in the current market. There are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.
AGREED! Over 3 years now, I've made over 1.7 million by simply following a coach's advice. I was on the sidelines for a while watching, trying to determine the best time to get in, before I came across a coach, recommended by my wife. I was reluctant at first but I went ahead and contacted the coach. Best decision yet
@@PatrickLloyd- This sounds interesting. My portfolio is in the red. Can you recommend your analyst, please?
Vivian Carol Gioia is a thief and will steal all your money.
So government is responsible for all this mess right? Government was jealous of village's prosperity so it decided to ruin it.
Inflation is not creating food shortages; Politicians are. Look at the money being spent in the Ukraine alone; and, WEF cronies are insisting on ESG systems in which fertilizers are banned and food production is halved (Sri Lanka was their poster child for this and it miserably failed; they are now at the mercy of the World Banksters who will grab any value out of that country). Fuel shortages... again the result of political control and manipulation. Politicians are cutting production to please the WEF cronies (again with ESG), and blowing up gas lines under the North Sea. The financial system has been artificially pumped for over a decade to ensure big pockets were lined, i have been reading of investors making about $250k profit in this current crashing market, and I need ideas on how to achieve similar profits?
You’re right! The current market might give opportunities to maximize profi.t, but in order to execute such effective transactions, you must be a skilled practitioner.
@@purplebliss6875 On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then.
@@arthurworld9768 Please can you leave the info of your invstment analyst here? I overheard someone talking about how a couple made $200k during this red season. I need such luck lol
@@lindamattalom Deanna Lynn Renfro is the professional that assists me my investment, just look up her name, her info and services she provides are all online.
@@arthurworld9768 Thank you for this amazing tip. I just looked the name up, wrote her and scheduled a call
The older generation expects us to have a stable work, a high income, a family, a house in our early 20's because that's what all they achieve back in the day, not knowing that we all deal the consequences of the older generations actions.
They really didn't even do that in their 20s, they get married and divorced quicker than I can complete this sentience. Or you reading my comment. 😉
Or most of the current generation like us are lazy and keep complaining because we get whatever we want easily through our parents. They made more with less while we complain on some phones about everything without doing a thing
So what they say about the younger generation is true..that they're all whiners and lazy...easily offended and a bunch of pansies
It’s possible for us just a lot harder to do. With inflation it’s even harder now
@@anzarm.a8547 that is a huge part that people don’t want to admit
My spouse and I are diversifying our long-term investment portfolio by adding various stocks and ETFs. We've allocated $220k to begin with, focusing on inflation-indexed bonds and companies with strong cash flows. I think the current market presents a good opportunity for long-term gains, but I'm also interested in learning ways to make short-term profits.
Having an adviser is the smartest approach in today's market, especially for those nearing retirement. I personally gained over $270K during this market downturn, which highlighted that there's valuable insight the average individual may not be aware of.
I wouldn't mind consulting the advisor who guides you, I really want to grow my retirement fund since I could retire in 3 years.
My advisor is *Sharon Louise Count* With the help of google you can book an appointment. She has a wealth of experience in the financial market gained over several years.
She actually appears really understand the market. I just did a Google search for her name and found her webpage, I appreciate you sharing
If you’re experiencing a dwindling portfolio, it’s important to reassess your investment strategy and consider making changes to your portfolio. I diversified my three-funded portfolio by investing 50% in a total U.S. stock market fund, 30% in a international stock market fund, and 20% in a total U.S. bond market fund. My $500K investment has grown to over $3.2M within a few months
TBH, 25% of my portfolio is in the red and I really don’t know how long I can stomach the losses. I’m beginning to reach a breaking point.
I need a guide so i can salvage my port-folio due to the massive dips and come up with better strategies. How can one reach this advisor?
Thank you. I just checked her out. She seems really proficient. I'll follow up with an email. Thanks for the lead.
@@AddilynTuffinNowadays, most people’s investment portfolios are in a slump, which requires the guidance of a professional. It has only been 4 months since I joined the Newberg Foundation, and my 200K capital has increased to 850K. I am very grateful to their diversified transactions. recommend
buy T. will be 60
Thanks for your simple information
cool
Amazing
Awesome.
Nice
We have been dealing with inflation for decades here in Argentina, to the point where we joke saying that we have a degree in economics as we need to figure out how this works in order to overcome the situation. It's really amazing to see that the USA is dealing with the same problems we started to face long time ago. I really hope your goverment take the correct decisions to fix this before you find yourselves saving you money in another currency rather than the local one (as we actually do).
As always, your content is brilliant. Keep it up!
Reduce public spending.
As long as sleepy Joe and his administration are still in office, things WON’T get better.
yeah we're fucked Joe ain't sleepy he's brain dead
I don't want to sound ironic, but is the other currency you trade your local currency to coincidentally the American dollar perhaps?
@@Ustaleone yes 😂
It surprises me why everybody gets really worked up about inflation and inflation data. Inflation has always existed, and people have been using investments to beat the inflation. The stock market return, for example, always beats inflation. I heard of someone who invested $121k last October, and has grown the portfolio by more than $400k. I need recommendations that can give me similar return.
I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $200k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.
True. I first came across investing in the market in 2019. Already stashed about $460k in savings then, and the free money from the Government was pouring in, increasing inflation rate. I just got an advisor and kept the money there, just because I didn't want to keep the value of the money depreciating in the bank. Tbh, it's the best investment decision I've made since then.
@@talented009 I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
@@ThomasHeintz Haha. I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Laura Marie Ray”, and she's really good.
@@talented009 Thanks a lot. I'm definitely gonna check her out on google. Do yo have any idea if she manages family fund?
The thing that all of these experts fail to take into account is that the politicians will never act fiscally responsible and they will continue to encourage the FED to print money thereby worsening inflation...
Inflation is producing a slew of problems throughout the world, including food shortages, diesel and heating fuel shortages, and housing prices and financial market crash. It's all coming together, and by the end of the year, it may be a complete disaster. (or earlier..God help us.
@@roddywoods8130 This global collapse might end up being a part of us for a very long time and due to that fact any money you keep in cash or in a low-interest account declines in value each year.. investing is the only way most people will ever have enough money to retire. Personally I hired ‘’Patrice Carol Rainer’’ a financial advisor who I copy her trades and with a good 10%-15% in ROI monthly..>
Before investing; you need to develop yourself in all ramifications don’t just jump in because you heard someone made so amount of money, employ professional help if you need to because on the long run you’d loose money not sand. look her name up online to get in touch with her, her details are provided online Bash.
@@selenajack2036 It's incredible to come across Patrice’s-related comments on here...God bless her!
"If you vote for my two guys in Georgia, you will get $2000 checks in the mail the first thing"
If people figure out they can vote themselves
largesse from the Treasury, democracy will fail
----Socrates
I truly miss Borders, such a good series. I’m sure Jonny has moved on and COVID has made that kind of series unviable but I hope it comes back at some point.
Your the only comment I see
ok
For real. It was great "joining" him as he traveled the globe.
ok
He's continuing it! It's called Uncharted and the first episode(s) are on Cyprus
This video explains inflation from a perspective that is very specific for the US, however is not true for most countries, as inflation can not only originate from too much demand but also too few supply. We actually see this since quite some time, as a consequence of repetitive shutdowns in China and other countries. Furthermore right now there is also a war that Russia started with Ukraine, which aggravates production shortages especially in Europe, as many european countries are very dependent on Russian gas and oil, which is phased out right now. Also a huge number of agricultural products which normally comes from these two countries is also not exported. (e.g. wheat, mustard and vegetable oil) This however means production is getting more expensive, as resource costs rise (which is a bigger problem in Europe but probably also “somewhat” true in the US).
Most governments didn’t gave everybody tons of “free” money (or at least not to the extend the US did), however inflation is a problem in many countries. This is not because of too much money but decreased production (from China) and increased costs of resources, which trickle down the production line.
Therefore the bigger picture is that there is a substantial reduction in worldwide production, which is not simply solved by increasing the interest rates (which will in turn decrease investment and consequently slow down growth further).
This is the bigger picture. I'm surprised that Johnny, who claimed to have learned econs, didn't at least touch on the supply side of the equation. Oil is the lubricant of the modern economy. The vast majority of transport of all people, goods and intermediate goods requires oil. When the oil is cut, people simply can't deliver to the hands of buyers as much as they used to. Buyers in more need of the now reduced amount of goods will be willing to pay more to secure their needs, thus raising the price for other buys to bid against.
>Most governments didn’t gave everybody tons of “free” money (or at least not to the extend the US did), however inflation is a problem in many countries.
Those countries are also having inflation because USD is the de facto global currency. Almost every good/commodity is priced in USD. The consequence of this is that goods are having a global price increase. It doesn't matter if other countries didn't print money and hand them out, if they rely heavily on the USD, then they're victims of the US exporting inflation abroad.
This is true for every country on a macro timescale - decades, not months or years. The war in ukraine and the supply disruptions from covid lockdowns in china are really... and i hate using this term like the fed... "transitory". Decades not years. Macro not micro.
He did touch on the supply side. In the explanation of inflation during the pandemic he mentions the effects of "supply chain issues". Did you not watch the video or?
@@columbustalley330 Those 'issues' at the start of covid are nothing compared to oil at $120 a barrel. High inflation only came into the fore recently after the war started.
As an elder millennial, one of the few advantages is having lived through the Great Recession. My advice. Reduce unnecessary expenses, increase your savings by investing in financial markets and do not sell. One thing I know for sure is that diversifying your income can help insulate you from much of the craziness going on in the world.
True..... I'm thinking of investing in stocks or digital assets to grow my money for the first time, but I lack the in-depth knowledge and mental toughness to deal with these recurring market conditions. please any advice or pointer on how to outperform the market producing good returns
It's true... It just takes a good mindset and nerves of steel. I was deeply invested in 2017/2018 in a well-diversified portfolio of stocks and digital assets that grew 4x with capitalization, venturing is not necessarily just about funds but also to be well informed. It's a long term plan for me so I invest and reinvest
@@liambracey6708 Search and connect with *Katherine Duffy Burke* . She’s a verified CFP and she helped me see that returns can be made in both bull and bear markets. She covers things like investing, insurance, making sure retirement is well funded and looking at ways to have a volatility buffer for investment risk, lots of things like that.
@@aubreymcgovern9467 I searched for Katherine by her full name and she seems quite trustworthy and knowledgeable. She is a fiduciary acting in the interest of the individual. So I left a message on her site, I hope she will answer soon.
Best day of my life was when I stopped spending borrowed money and only what I earn...
Also Distroyed my financial credit score so can't borrow money.. it's definitely an bad addiction.. kids need to learn this quickly..
I would like to see a proper follow up on this video. Mr. Beat pointed out many flaws in the way you explained. It would be nice to see a response and a revised version of this video
Thank you!
Mr Beat got it wrong too.
The main cause is corporate greed run rampant. And no one in the mainstream are talking about this fact! They’re reporting record profits. All data shows it’s lack of price gouging regulations. Since corporations own the media and the government, there’s nothing to counteract the propaganda.
following
This is by farrr the worst explanation of inflation I have ever seen! N it’s first on suggestions. Smh
One major factor that was left out is that we are seeing global inflation. These countries are all competing for parts, products, food etc. Even nations that managed their rates better are seeing major issues. The glut of money was an issue sure, but the surging demand from nations that re-opened from Covid lockdowns played a larger role. Add to this pandemic-related staffing issues and the intentional global oil supply problems and it's a nightmare. I know the intention was to explain inflation but that doesn't do justice to the current inflation on a global scale.
A very good nuance :)
thx for that comment, was thinking the same. its the same when people blame Biden for all the inflation happenning, just ludicrous.
It is helpful to recognize that the private, for profit bank behind the Fed (which is an autonomous unit more than a US govt entity), is also the bank behind the monetary systems of most developed nations globally.
@@patrickbalkany7989 yeah it can never be Biden’s fault for anything ever. I mean come on he is a democrat and democrats can’t make mistakes, they are perfect
@@williammasters1620 Where in my comment did i say it was not Biden's responsability? i said its not entirely his fault, but he is to blame for some of the inflation, especially in the energy sector. Please read the comment before writting a response... (enough internet for me today jeeezzzz)
It would be interesting to see a video about how QE has affected the world since it was first implemented for the 2008 financial crisis. I had no idea that QE wasn't really an economic idea before then, and grew up thinking it was the norm. It's really come around to bite us, and this may be the a reckoning after 14 years of it.
It didn’t affect inflation as QE does not lead to increased money supply.
@@arachosia I thought it does lead to increased money supply. But with the way QE is done, most of the free money goes into investor's pockets, instead of common people. So it leads to asset price bubble instead of a general inflation. Which I'm not sure whether it's better or worse.
Japan has been doing it since the 1990s to keep a positive inflation rate to kerp the economy from contracting, sometimes literally having negative interest rates
@@coolfer2 Well said
crisis my axx,,, Iceland threw a bunch people in JAIL. we wallowed in cowardice instead
This is not an accurate description of inflation. It's important you recognize this as to not mislead more people than you already have.
I was thinking the same thing. It feeds the idea of corporate greed and only that. It's a little more complicated than this. You can't double the supply of something and not expect its value to decrease (money supply).
Highly misleading and over exaggerated points made here, with the needless intensity typical of a Johnny Harris video. The biggest problem I had was the insinuation that stimulus checks created inflation. These payments went out while 20m+ people lost their jobs. This money mostly replaced lost income in the economy. If you look just at the demand side, the biggest culprit was the massive change in spending habits of consumers. Being forced to stay home, consumers spent far less on services and much more on physical goods. These goods have to be produced, unlike services. With mass layoffs, idled workers due to quarantines, etc, the production side was sluggish to fill this increased demand. This caused the prices of physical goods to skyrocket. That was the start of the inflationary outbreak we’ve seen over the past couple years.
You are somewhat right. Stimulus checks didn't create inflation, however it certainly contributed to it. What has really caused inflation, at its core is the inequitable tax bracket for the high income earners. More money to the rich through increased profit margins, from exploitation and wage theft of minimum wage labourers, as well as the evolution of technology causing certain jobs to become redundant and in recent times, covid layoffs, therefore an "inflation" of the unemployment rate. With more labour going unused, human suffering needs to be avoided by stimulus checks, and where does that money come from? An inflation of the "money well", trickles down to an inflation of goods and services, to further increase profits, rising the money back up to the elites.
It starts with inequitable tax distribution.
@@audreydoyle5268 While consumers and business pull back on spending, the government actually sends out stimulus checks during recessions to counter deflation. The current inflationary cycle started with physical goods and then took off like a raging wildfire due to extremely low interest rates and easy monetary policy (which encourages spending on mortgages, credit cards, cars, etc due to low interest rates). A low rate environment also incentivizes investors to put cash into stocks (since they get little return from bank savings). Increased equity in soaring home values and stock market allows people to take out low interest loans against these assets (ie margin, HELOC’s, etc) which further fuels the inflation fire.
It’s basic economics and the Fed failed Econ 101 when they eased monetary policy way too much and for far too long. The stimulus checks really had little to do with it. It was mostly irresponsible monetary policy by the Fed. I’ll grant you that corporations took advantage of inflation, which they could do after widespread consolidations as a result of the pandemic/lock downs that out many small businesses under. This created a lot of monopolies and oligarchies, giving large corporations excessive pricing power. I think we need to explore anti-trust enforcement, breaking up corporate conglomerates that have become too large and threaten consumers.
I really respect you for keeping the explanation uninterrupted, even if it meant the ad read came sooner, and that you still support Vox and you wait until the end to give yourself a shoutout. You are one of my go-to resources for a basic understanding of these crazy concepts in human terms and I would love to see you working with big budget clients to produce more content like Borders again soon.
Wow thank you
Literally cannot say it any better than this
You took the words right out of my keyboard, well said!
If you want to watch the good videos of Harris, stick with the history and geography ones. This one is pretty trash. He even gets the most basic definition of inflation wrong. Inflation is the general increase of prices for the basket of goods; having more money supply than what the economy needs is a monetary policy.
Harris is lying through is teeth.
I hope that you've researched inflation more after you saw this video.
Watch Richard Wolff for an actual explanation. Just write "Richard Wolff what is inflation"
Shortly:
Inflation Is when the cost of products is higher than the value of money.
Plain and simple.
This happens because employers raise prices, and lower or stagnate salaries.
So your salary stays the same, but what you make is sold for more money, and thus your employer makes a profit, whille you struggle paying your bills.
*The chat is filled with bots.
* this was a prewriten message with small alterations per person sent.
*Please send it to a few more people if you've found it useful. We need to counteract this misleading propaganda video.
In srilanka our money became basically worthless like you mentioned we needed like a pile of cash to buy single piece of bread(180LKr for 450g piece(0.50 usd) before this crisis we used to buy it for 60LKr(450g)=0.17usd
😢
I feel like this is just propaganda to think that consumers are the problem when in reality corporations are making tons of profit right now so they have no reason to crank up prices
To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?
I always found the idea of using spreadsheets very time consuming and unnecessary. I just dump a bunch of money into my savings accounts each month and keep my spending money in a separate account and try to spend as little as possible.
It all boils down to technique, the downtrend leaves room to key in on the market and grow-substantially whether in the long or short run, it's only just easier to make profit when the market is green, a downtrend provides an equal high-yielding avenue if you have the requisite set of skills and knowledge, reason I've been using an investment-adviser to scale up in this hard time, only way I was able to raise upto $150K in the last 6months.
@@piercejordan5335 Please can you leave the info of your investment advisor here? I’m in dire need for one.
He actually doesn't prove anything here and if anything he is more wrong than he is right throughout this entire video. This is a pretty bad hack job
You explained how the higher demand leads to insufficient supply and therefore Inflation, but a change in supply can also cause inflation. I would have appreciated a few words on how the war is impacting the supply side and leading to inflation as well, especially here in Europe.
I thought the same, he explained it like that's the only reason for inflation while it is way more complicated than that and currently not even the main reason. Supply issues are way more of an issue at the moment.
I think this is right. War in Europe, and recession in China would be major drivers. The Covid money given for relief is just too small. The numbers don't add up.
Which came first the chicken or the egg? I think they came at the same time when trillions of dollars were sent out and businesses stoped production due to the pandemic
Our obsession with growth and dependency on foreign countries led us to this. Going to get worse before it gets better.
Also I don't get why if loan is cheap people just don't collectively use it to invent a solution for these supply problem? is it true that we just waste it all on consumerism (partying?)? I mean surely there must be a majority that is rational and use this money to create more (or at least saves) money?
I’ve been trying to explain inflation to my wife along with the recession that’s coming but you did it in six minutes and you did it really well Johnny. Thank you.
Check out “ HOW THE ECONOMIC MACHINE WORKS” by Ray Dalio
@Jesus Gonzalez so its easy for the viewer to understand. you that dull?
This is one of the worse video I have seen . this is inflation in theory , only applicable back in the day .
This is a purely economic theory view of it, but really companies are increasing prices just better they can a majority of inflation is purely profit driven while a fair amount is also due to supply chain issues
Stop waiting for the government to tell you the recession is coming. Its already here
Who else is here after Mr Beat's video??
🙋🏻♀️
With inflation running at a four-decade high, a Recession is now the ‘most likely outcome for the economy. How can I grow my portfolio to outpace inflation and maintain a successful long-term strategy? I have been reading of investors making about $250k profit in this current crashing market, and I need ideas on how to achieve similar profits.
You’re right! The current market might give opportunities to maximize profi.t, but in order to execute such effective transactions, you must be a skilled practitioner.
I’m down by $13k in stoc'ks this week alone. I would not mind looking up the professional that helped you.
Thank you for the tip. it was easy to find your handler. Did my due diligence on her before scheduling a phone_call with her. She seems proficient considering her résumé.
@@brianwhitehawker1756. How did you finder the person with the little information provided in Flynn Chasin's comment?
Thanks Johnny. Makes me feel much better about our current situation whether that was the intent or not.
That is the intent. Neoliberal Johnny Harris will make you love the status quo.
How deep did you have to dig the hole to get your head in the sand?
I remember the recession in the 90s. It effected me hard. Me and my family lost our home. Rate on our home was at 29%. Our fed didn't want to accept the high inflation we had, so they raise over 500% to defend the krona (Swedish currency) later that year they let krona float and it was the worst time to be in Sweden.
You're a Swedish guys?
the thing is about the video that even enforces,
is that if the government didn't lent that money in the first place, this wouldn't have even happened.
@@NeostormXLMAX If you think we'd be in a better spot without the stimulus checks/welfare spending; you're talking out of your education level. The biggest issue was the corporate bailouts, and even they served a very important purpose. If you didn't need the money, got it, and spent it; you're part of the problem.
I thought recession made things cheaper.
@@1Shalnark1 Food made it expensive: Meat: 50% Coffee: 40%, Diary products: 30%. Electricity: over 115% Diesel: 50% normal gas: soon hits 100% Only is getting cheaper is leek onion and cauliflower is about 35% cheaper and headphones is about 10% cheaper
This is definitely _a_ reason, but it's not _all the_ reasons. The Fed doesn't control global currency, so it's a bit weird to blame them for global inflation. That said, they also are more-or-less not controlled by the government. It's totally cool to be critical of them, but the government has the barest control over their operations.
Sad fact is that even after understanding Inflation,most of us cant do anything about it
Yeah we can’t just march up to the banks and demand to abolish loans which literally prints out new money which devalues the original money people had in their pockets.
Harris is lying through is teeth.
I hope that you've researched inflation more after you saw this video.
Watch Richard Wolff for an actual explanation. Just write "Richard Wolff what is inflation"
Shortly:
Inflation Is when the cost of products is higher than the value of money.
Plain and simple.
This happens because employers raise prices, and lower or stagnate salaries.
So your salary stays the same, but what you make is sold for more money, and thus your employer makes a profit, whille you struggle paying your bills.
*The chat is filled with bots.
* this was a prewriten message with small alterations per person sent.
*Please send it to a few more people if you've found it useful. We need to counteract this misleading propaganda video.
@@zachduperron8543 If you abolish loans, the whole system will collapse
Inflation has more causes. You’re right about this one cause but monetary policy like printing money also leads to inflation as well as supply reductions and other factors.
And pulling strings are never gonna fix this problem. Research my ass with this guy
If you pay close attention, you can see that minute 6:20 shows other common causes of inflation, and printing money is included there. He just explained the interest rate situation a little more than other causes because it is one of the main ones people are seeing and can relate to right now.
The oil cartel of Saudi Arabia and Russia is a big reason for everyone's higher gas bill(i say this from an Eastern European country)
@@andreaalonson I saw that and I would argue the government did that with the "free money" he also mentioned briefly in the video. I think that is an additional cause of the current inflation.
@@Mischu708 that's completely true. Nobody says this enough. They are having a hard time extracting and selling it due to financial uncertainty from Ukraine war and the heightened consumer demand coming out of lockdowns. I wish government would negotiate with this oligarchs and soften the blow rather than heaping the burden on the people.
Inflation is the ANTAGONIST of the movie Called MILLENNIAL AND GEN Z. 😂.
This is just trying to blame consumers though when it really is the federal government and corporations who set prices
As someone who apparently has a degree in economics, this "simplication" cuts way too much out and gives the wrong impression. Government stimulus was a factor in the current inflation, which is already beginning to cool down (I'm as surprised as anyone else at how quickly it resolved), but laying the blame on the consumers is ridiculous.
This position of attacking the government when it actually did what it's supposed to do (i.e. support those who their jobs, helping support families with children) as something irresponsible weaves a very dangerous narrative and might influence people on important policy proposals. Not everyone was buying fancy ebikes (like what you probably did), but instead were getting food for their family and paying necessary bills.
More of the government stimulus went towards businesses, and so many of the big businesses gave themselves bonuses and did stock buybacks instead of helping their employees. They rose their prices as a result of supply chain issues yes, but the chain issues have mostly resolved, and they're keeping their prices up for record profit, as this last quarter has been more profitable for most business than the last 7.
I cannot condone this video in the slightest and I emphatically hope that others choose a better source for any information economics related.
Inflation is when this guy can't teach video editing for free.
The future terrifies me. Especially being from a country where the politicians are so corrupt. I hope things get better.
Filipino?
Like the USA is different
The politicians are corrupt in every country.
Imagine being from Russia. This is really terrifying
corrupt politicians? you must be from... anywhere!
This might be a good breakdown for inflation in the US, but it certainly isn't accurate for inflation in the EU. We never got checks from the government. Our inflation only went up as fast as it did once the Ukraine war started, making gas and oil prices explode. This in turn made literally everything more expensive because everything needs gas or oil to be produced or maintained. It's not an oversupply of money, it's an undersupply of actual goods at reasonable rates. Hence, a fast inflation explosion went up the entire chain of supplies. This, unfortunately, leaves us with the situation of "We still got no extra money, but now we have to pay 8-50% more for literally anything and everything". This is why Europe is headed for a recession - I can't keep going to the cinema if I can't even pay for my rent.
I'm hoping that as soon as gas and oil prices start to go back to pre-war levels, we can get out of the recession before it starts to circle us down the drain.
Canard Réfractaire said it eloquently : inflation is organized theft.
Inflation is a lagging metric. But your economy spends more in social service
thats cost inflation. This video is basically about inflation caused by government printing money , which is a type of demand inflation..
This is not accurate. The Federal Reserve system controls the monetary supply, yes; they can increase the availability of money they lend to financial institutions, and reducing the cost of borrowing CAN spur demand. But the Fed is legally independent of directive from the executive branch. They're trying to balance inflation with economic growth and employment as a policy - and they did a GREAT thing by loosening the purse strings when COVID induced a massive recession. But they do NOT control how much the federal government spends - Congress does - and they don't even print money or control how much currency is minted - the Treasury department does that.
Further, the primary driver of inflation in 2022 has been the Russian war in Ukraine and related energy and food price increases. This has been well documented by actual economists. And this is the last flaw in this video - the cost of making (and during 2021, shipping) things has gone up due to COVID and the Ukraine situation. That increases prices by reducing supply, even while demand stays flat or falls.
We should not blame the fiscal and monetary policies that have led to the fastest economic and employment recovery in the history of this country without doing due diligence on the basics of the topic you're covering, ESPECIALLY when you have, at the time of this writing - 3.27M subscribers.
The inherent view here seems to be that this is a flawed system. Well, obviously. The question is not "is this system flawed" but rather "is there a better system and what is it?"
The Islamic system with no interest whatsoever for any debt and living a simple life with only the necessities
The video starts at 2:01 by the way 😅
It's hard to predict the future until we see this month’s inflation results. However, historical data consistently show that stocks tend to outperform bonds in the long term. Therefore, I'm staying in the market and focusing on selecting high-quality stocks. The challenge lies in identifying these stocks.
Staying in touch with a financial advis0r was my effective strategy. During the pandemic, I outperformed the market, earning about $200k in four months. Its been a remarkable few years for me with my advis0r .
I wholeheartedly agree, which is why I choose to delegate my daily investment decisions to a coach. Their specialised knowledge, research, and risk management skills make it challenging for them to underperform. They focus on utilising risk for its asymmetrical potential while mitigating downsides. I've been with my investment coach for over two years and have earned over a quarter-million dollars.
My collection has been underperforming recently, and I'm considering a strategy change with the help of a coach. Is it possible to get in touch with your coach?
There are many financial coaches who excel in their profession, but for the time being, I employ Stacey Lee Decker because I adore her methods. You can make research and find out more
She seems quite knowledgeable and well-educated. I just Googled her name and found her webpage. Thanks for sharing!
Didn't realize Johnny Harris was a Friedmanite monetarist...this explanation is exactly how Milton Friedman would explain this
Man my hat's off to you with the way you presented this video. This is what I needed to hear and haven't been able to find until now. You explained it better then anyone else I have heard up to this point.
ok
Some More News video on inflation was so much better. They made it a point to not use metaphores in explaining how this stuff works and actually analyzed and broke down these Keynesian economics rules, whereas this video just made it sound like the stimulus checks were the problem.
+
Didn't even touch on how this necessarily effects regular people, didn't touch on the cause of inflation of many huge sectors, especially oil/gas.
And why? This video is pointless, a thousand others just like it already exist even on Vox itself and that one even is slightly better than this one.
The stimulus checks are the problem.
Absolutely. This video is very shortsighted and is just regurgitating the typical Wall Street, corporate media narrative that the measly amount of money that average people received is the cause of the inflation, completely ignoring the housing market, completely ignoring the corporate greed raising prices and making record profits after record profits.
the stimulus checks were the problem
Hi Johnny. I think this video is very misleading and quite dangerous to blame such a complex topic on a small group of people "at the top." Inflation is NOT your definition. Inflation is a general increase of prices in an economy. Here are seven common causes of this.
1. A monetary expansion (more money in the economy, as you focused the video on)
2. Less supply of goods and services
3. More demand for goods and services
4. Consolidation of firms into monopolies/oligopolies lead to higher markups than competition
5. Bargaining power shifting towards workers. Higher wages ARE higher costs for somebody and they tend to get passed to consumers.
6. A depreciation of the exchange rate makes imports of foreign goods more expensive
7. High expected inflation means passing through higher prices to consumers as firms prepare for higher costs. Expected inflation can lead to actual inflation. (This is the largest factor out of these seven that is affecting us today. Wish you would have mentioned it)
I will say that every single case of hyperinflation in human history was caused by reckless money printing. You would be correct if this video was focused on hyperinflation, but it's not and the other 6 factors absolutely play a role in raising prices. Hope this helps.
That's not how this works. That's not how any of this works.
how does it work then?
Johnny Harris is truly the educational channel we all want to be. The goat!
Agreed
Great channel you will do so well 😊
what happened with the dead body video?
🙄
the editing is on 🔥 and the information is amazing would’ve loved to have a longer version of this, very informative in a very simple way. Great job
The stimulus wasn't to buy us Pelotons. Important distinction to make when you're summarizing it. Apparently you were alright during quarantine but the government passed that so people could afford to pay their rent, light bills, fuel bills, and food.
+
Back in my day, you could explain inflation in 30 seconds. Crazy how things change
Even as teen i learned what inflation is in 30 seconds. Can't believe that some older people do not know what is it.
Pp
is this an accidental or genius inflation joke?
More bullshit money tools to make money
Yeah if you're 90 years old then inflation is pretty simple back then.
Being a Geopolitical youtuber, I agree that Inflation is on the rise all Over the world, from the US to India! When
Russia goes to war, this is what happens.Oil has a direct impact on inflation.
Let's hope the war comes to an end soon
Yes Russia will win.. go Russia
@@aratirao9007 what ABT the innocent people that lost their lives
Aditya nice content and u r much more consistent than Johnny
@@aratirao9007 Glory to Ukraine
@@xddp4910 yes we want peace
"Inflation is my war on poor people" - Johnny Harris
Indeed. The scumbag is practically a vegetable
From an economics perspective, this video has a LOT of errors, starting from the very definition of inflation itself, which is the general increase of prices in the economy. Money supply is ONE influencing factor of inflation, NOT the definition of inflation itself. The impact of government stimulus packages on the economy is grossly overrated since it doesn’t take into account where those trillions of dollars actually went into, with the majority going into businesses, not the population. Also taking into account the size of the American economy, the amount of stimulus money sounds like a lot but it’s really not as large as you made it sound in context. The vast majority of families did not just “spend free money wildly” on everything and anything because much of the stimulus money went into the purchasing of necessities to make up for the money that families were losing from COVID, and this point comes off as out of touch. Finally, the raising of prices by businesses is actually NOT necessary due to demand, it’s mostly just large companies getting greedy. Large businesses made insane amounts of profit during COVID, which means they could comfortably afford to keep prices the same as pre-COVID and still make the same levels of profit they did before. Instead, small businesses suffered whilst large businesses predatorily took advantage of the desperation and panic of people to extort them out of money.
Thank you. ! Brilliantly states
@Mike Collon go read any high school economics textbook or even go on Wikipedia and read out the first sentence and then come back here and try convincing anyone who’s studied economics that your definition is accurate when it’s literally the first thing any student learns.
@Mike Collon your definition is based on the original 1838 American definition, which is NO LONGER the definition used in modern economics and hasn’t been for decades if not longer and is specifically distinguished under the separate term “monetary inflation”. What you described is “monetary policy” which is ONE specific measure that can be used to control inflation.
@@kendrick6740I appreciate you taking the time to properly rebut that guy as so many people are ill informed about how the economy truly works and parrot what the rich say things like “we need to raise poverty rates to lower inflation” like wtf how do people not see that the elite are doing this with intention
This really feels like the most important issue of my lifetime as we will all end up generationally enslaved to the elite
The more people see comments like yours and OP’s the more we can hopefully open peoples eyes and get rid of this false narrative of capitalism that the rich implanted in us
well-stated Kendrick. Increase in the money supply is a cause of inflation. The symptom is inflation (a rise in prices) - the main illness and root cause is an increase in the quantity of money (more money in the economy chasing fewer goods).
How beautiful would it be if throughout the course of your life you could just slowly save a million dollars in the bank and then when you pull it out for retirement, still have almost a million dollars? Unfortunately when you vote for inflationary policies, that's no longer possible, your money loses value when it sits there in the bank, which is why people instead have to save their money in risky places like stocks and commodities in order to try and outpace inflation. In many ways inflation is a tax on the poor, and I really wish people would think about that before voting for fiscally irresponsible policies.
I mean, it's not really that high risk to keep your $$$ somewhere like an index fund, by and large over a long time it's gonna result in the money being stable and kept up with inflation at a minimum.
The govt issues inflation-indexed bonds (TIPS) which vary their payments depending on reported inflation, the are essentially risk free since if your government defaults on their bonds you have way bigger problems in your country, so almost any other asset will also be essentially worthless too. Remember that inflation also increases the cost of labour, which is disproportionately beneficial to younger/poorer people.
I do understand what you mean when you say "inflation is a tax on the poor", but imo it's more accurate to say inflation is a tax on unproductive capital. If you put your $1m in the bank or in piles of cash in your basement, it isn't being used to build anything of value in the world. Whereas if you loan it out or buy productive assets you're financing real economic activity.
Videos like this are super important then to help educate people on these topics. While it's unfortunately true that wealthy people can afford to just pay someone to manage their money, and transaction fees are essentially a regressive tax on investing, I really think understanding economics is a way to escape the paycheque-to-paycheque subservient reality many people find themselves in. Having done a finance degree I can guarantee that all of the stuff they teach you is available for free on Wikipedia.
People like free things w/o having to earn for it
we should all just start accepting gold and silver as payment and that would fix the problem.
just buy gold or hedge it on oil/raw materials
One huge thing missing from this is that it wasn’t just the federal government spending money. The demand for services during the pandemic dried up and so most people had more money to spend on goods instead. Demand for goods exploded, meaning a huge increase in the price of goods. This video almost makes it seem like the federal government spending money to help people was a bad thing and solely caused inflation. It was necessary and also was only a part of what caused inflation. The other thing that was included but contributed as much as the fed spending was the supply chain disruption. Supply of goods was sharply curtailed at the exact same time as demand exploded because people weren’t spending money on restaurants or music venues or vacation.
That is the American view of things. "Oh no, we gave our populace 3200 bucks so they wouldn't die of starvation, and now we broke our whole economy, oopsie poopsie." Meanwhile, most of Europe got $1200 every month for a year and their economies seem to be doing just fine.
@@heychrisfox The have inflation in Europe as well.
@@youngloenoe But logically, inflation should be insurmountable over there. If US citizens received $3000, and it caused runaway inflation in our country, the EU should be completely crippled by giving away tens of thousands of Euros to citizens.
But shocker, that's not happening. Does inflation exist there? Yeah, but it's mostly in line with the US. Why? Because it's all a grift. It's corporations deliberately squeezing the economy for extra cash, and forcibly causing inflation as a result.
@@heychrisfox I agree with the grift part.
It's funny to note, the Neoliberals had a chance to prevent this issue, Friedrich Hayek himself proposed an effective UBI (even Adam Smith talks similarly in 'Wealth of Nations'), but his idea was just poo-pooed off the table and never honestly revisited
I'm not a fan of UBI myself, the economy sucks for worse reasons than inflation, the UBI doesn't fix those, but at least we could have a roof on our homes
Since this is a 10 minute thing I'll just ignore it since the nuance here is lacking and there's a bit of misrepresentation of inflation as it's happening in the US, but if you wanted to do the simplest, dumbest, first time understanding of inflation, this is an OK video explaining it. It's enough for a very rough picture of it at least. The fed isn't run by the government, by the way. And his town explanation isn't really how inflation is happening in the US and that part of the explanation isn't the main cause of inflation in the US.
This is not very accurate to what is happening this time. The price of raw materials and the cost production is a bigger factor. People should watch Mr Beat's response to this video.
Lol “I was gonna put an ad in the middle but realized that sucked, so here’s an ad at the beginning “ I appreciate the work you do, it’s the system we allow to exist that makes things a little ridiculous.
Harris is lying through is teeth.
I hope that you've researched inflation more after you saw this video.
Watch Richard Wolff for an actual explanation. Just write "Richard Wolff what is inflation"
Shortly:
Inflation Is when the cost of products is higher than the value of money.
Plain and simple.
This happens because employers raise prices, and lower or stagnate salaries.
So your salary stays the same, but what you make is sold for more money, and thus your employer makes a profit, whille you struggle paying your bills.
*The chat is filled with bots.
* this was a prewriten message with small alterations per person sent.
*Please send it to a few more people if you've found it useful. We need to counteract this misleading propaganda video.
What is going on now is not just inflation but also corporate price gouging. All these corporations have reported record profits.
There isn't such thing as supply side inflation!
Whenever a business increase its prices it obviously impacts other prices that also go up. However, if the total amount of money is the same, consumers HAVE to either:
- Reduce the quantity demanded for those sectors
- Reduce the money spent on other goods, inevitably making them lower their prices.
- If everyone raises their prices, recession will come and lower the prices again.
Sectorial price changes make relative prices move, but NOT general increases. That only can happen if the central bank increases the money supply.
Every inflationary government in the world will push for the cost-inflation theory, that keeps the blame away from them and justifies price controls measures to fight inflation.
It's important not to buy this explanation.
Record profits are just a consequence of inflation messing up with relative prices and smart people taking advantage of it. Here in Argentina it's actually the best way of doing business, which it's really messed up.
I love the content you put out my man - very recently have arrived on your channel, have been enjoying every episode. As you alluded to on this video, the impact of both editorialisation and sponsorship, I was wondering, if you would ever consider doing a set of videos on our process of accepting sponsors, so that, we can always reference that as a method of understanding your independence in journalism
Harris is lying through is teeth.
I hope that you've researched inflation more after you saw this video.
Watch Richard Wolff for an actual explanation. Just write "Richard Wolff what is inflation"
Shortly:
Inflation Is when the cost of products is higher than the value of money.
Plain and simple.
This happens because employers raise prices, and lower or stagnate salaries.
So your salary stays the same, but what you make is sold for more money, and thus your employer makes a profit, whille you struggle paying your bills.
*The chat is filled with bots.
* this was a prewriten message with small alterations per person sent.
*Please send it to a few more people if you've found it useful. We need to counteract this misleading propaganda video.
Counterpoint:
czcams.com/video/hSCPqhYUoOY/video.html
As a small business owner I want to explain that the "bike shop owner" doesn't want to raise prices. When prices go up, then their sales go down because less people can afford it.
The reason that prices go up is because the factory they buy their bikes from have a certain capacity (they can make x amount of bikes a day) and any addition to the capacity would takes years to build, so they're stuck with how many they can make. If supply is constant and demand is up, then basically a bidding war happens to try and be the bike store that actually has bikes, whereas the other stores you outbid, now have no bikes.
This is happening to the factory owner too with trying to get the right metals, and it's happening for the mine where they get the metals for fuel/ delivery of parts, etc.
It's not greedy companies pocketing the money, it's demand outstripping supply.
Love it
Mostly wrong. People who got checks replaced income not buying a peloton. Most money went to businesses. Inflation isn’t too much money. It’s a part of the problem not the definition. Johnny like anyone has really missed the mark on this one & it’s a pro corporate answer. Blaming the government for giving a stimulus check when businesses got most of the cash as always,
turns out having a well edited video while wearing the most egregious beanie is not enough to make you right.
The inflation this year was so bad, a 6 minute video is worth 10 minutes today
I’ve never seen this amount of patriotism between us Argentinians as to when Inflation is a thing. As some guys mentioned, we’ve been dealing with this problematic, for some of us, what’s been our entire lifetime. Luckily this video clarifies some concepts which we’ve been trying to explain our society for decades.
Great video as always!
I don’t understand how you can afford Internet and electricity if the inflation has been so out of control for so long now. Seems like everyone there would be homeless and penniless by now.
@@arachosia That's because the salaries try to keep up with the inflation, obviously, but they usually lag behind the prices, so it becomes crazy to live like that after so long (but ultimately we became used to it)
@@grago interesting. I'm curious how it all works, especially since it might happen in my country now. I guess I expected if inflation keeps rising, eventually nobody will be able to afford anything, but I didn't consider that wages would also rise.
@@arachosia Yeah, everything rises. It's like a spiral, it's very hard to control it again. When salaries rise, people have more money to buy products, so those products rise again (in one hand it's speculation, in the other it's just the law of offer and demand), so salaries need to rise again to keep up.
People get used to it and live a "normal" life, until we have a market shock or a big devaluation of our currency. Suppose, out of the sudden, your currency worths 20% less in one single week. No salaries rise that fast. That doesn't happen everyday, but it's something that happened with every government that we had (left or right wing), and nobody made the inflation really stop rising. Anybody that tells us inflation it's an easy thing to fix, it's bullshiting.
Yay for doing the advert at the beginning instead of the middle, I actually listened as it wasn’t an interruption
I hope you make other videos like these. I learned a lot in this video than I did in classes, maybe because of the visuals and examples.
5:46 The Federal Reserve is not run by the government. It is a private banking cartel that prints money for the government when the government (congress) "votes/approves" it, which is really the government asking for a loan. The interest on that loan is picked up by the taxpayer.
Can we just take a moment and appreciate the editor of this video?
the animation was outstanding that helped us understand the concept.
For real. I was about to say the same thing !
I just don’t understand why businesses HAVE to raise prices. You say it’s to slow spending but it seems like it’s more for increasing profits.
The federal reserves is not a government agency it is privately owned
Great description. I really do think the next 50 or so years is a pivotal point for modern society as a whole. So much is happening, so quickly where the average person won't have any standard to set their lives to. It's fascinating but also quite scary. These years feel like a cliff edge.
I think there is a problem with this explanation. I'm not an economist and I haven't followed this issue super carefully but my understanding is that a significant driver behind the current situation is cost push inflation not demand pull. The shipping crisis was behind a lot of this. In addition energy has been a significant unique factor and that has been driven by what is happening in Ukraine. The demand for energy is actually relatively constant or perhaps slightly reduced but the supply of energy has changed somewhat and markets are pricing in the current uncertainty. This is not the demand led inflation described in this video. Is that right?
You think it's wrong because it is. The entire way we think about money is wrong. Read The Bitcoin Standard. It will teach you lots. Also for something more brief go on CZcams and look up cold fusion's channel and all the ones on money there. Inflation is literally the increase of money supply. Everything else follows. There is a lag by the time they can no longer hide what's going on. Inflation happened in Mar 2020 and continued until this year. Now we are tapering but prices are going up due to the lag. Very few understand. The Austrian approach is the only one that makes sense.
You should ask for a refund form whatever college you studied economics at
I really enjoyed the video. This was a great explanation of what inflation is and how it works, but can you answer this question for me? How is it that we're still in a "inflation" when corporations are still bringing in record profits?
Thanks for your simple information with all the info needed made in a easy way to get all that we need and explained it to others in a easy way!
The FED had been keeping the inflation rate at an artificial low since the 07 recession because of this they know if they drastically raise interest rates we will hit a hard recession. So we are either going through a recession or living with inflation
Or both........ think about it........
@@charlescoryn9614 yeah right now it’s both
lol
Okay - I am SUPER impressed!
I just jumped on your channel because I came across your visual storytelling course with Nathaniel Drew & wanted to see how you create your videos (because, i'm sorry but i'd never heard of you before)
BUT WOW!
your channel is amazing!
I am so happy I clicked on this video because I've never understood inflation... your visual story telling technique is bloody amazing & it helped me learn so much!!
I aspire to be as good as you one day!!!
Thanks for sharing Johnny :)
That's only demand side inflation, but there is also a supply side inflation, when price of production inputs increases like raw material, power, labour etc., the price of goods also increases that is supply side inflation.
Jonny Harris makes a video about inflation
The money scam spam bots - It is truly my time to shine.
Johnny, do more of this!!! Like a eco-101 series.
Thank you. I love your videos! Recently started watching your videos.
very helpful to clarify how this process works. Thanks!
😃 Hey Johnny. You’re a great teacher and spokesman‼️😃 First time seeing you on CZcams. I am subscribing because I’m impressed with teaching concepts within a brief window of time. Brevity matters in today’s information landscape.