==========< There is the owner and the employee.>========== Ultimately, the 'Employee' makes the products, takes those products to the market, sells the same products, he made, to himself and finally he pays a fee known as Profit to some 'Owner' for a permission to own the same products he made and sold to himself. The owner gets to collect profit for doing nothing.....and many call that 'earning' instead of 'taking'. The way forward to a better society is to increase and maintain a strong minimum purchasing power of the end-consumer using the magic formula. (Magic Formula: 'Your minimum Purchasing Power' = 'minimum wage' + 'Benefits payments' - 'Cost of dignified living from cradle to grave' - 'Taxes, fees, penalties') Firms are no more "legal entities" than your back-up power generator is a "legal entity", and it does not matter if it runs on fossil fuels or if a bunch of humans must run on treadmills all day. Firms are just property and should be treated as such by the laws. Save the minimum purchasing power of the human citizens instead of saving businesses/firms.
@@reasonerenlightened2456 You think businesses, society, or the government should pay everyone’s taxes…? If that somehow worked it really be the ‘magic’ formula
@@SebastianJimenezOwO If we aggregate all humans into one individual then he/she/it would be an Employee for a business, and an owner of the same business and government and a voted for that same government all at the same time. Then, what happens depends on the minimum purchasing power of that aggregated individual i.e. stuff can be built, rules can be set to follow, etc. but ultimately the minimum purchasing power must exist first before anything can happen (like having oxygen and nutrients in the blood stream before any movement or thought could exist.)
==========< There is the owner and the employee.>========== Ultimately, the 'Employee' makes the products, takes those products to the market, sells the same products, he made, to himself and finally he pays a fee known as Profit to some 'Owner' for a permission to own the same products he made and sold to himself. The owner gets to collect profit for doing nothing.....and many call that 'earning' instead of 'taking'. The way forward to a better society is to increase and maintain a strong minimum purchasing power of the end-consumer using the magic formula. (Magic Formula: 'Your minimum Purchasing Power' = 'minimum wage' + 'Benefits payments' - 'Cost of dignified living from cradle to grave' - 'Taxes, fees, penalties') Firms are no more "legal entities" than your back-up power generator is a "legal entity", and it does not matter if it runs on fossil fuels or if a bunch of humans must run on treadmills all day. Firms are just property and should be treated as such by the laws. Save the minimum purchasing power of the human citizens instead of saving businesses/firms.
Everyone in the comments says: WOw! You saved me for my final tomorrow! I dont have finals... I'm in grade 8... Why did my teacher make me watch this...
thanks a lot..this video had helped me understand clearly the market flow......... God bless u sir. i think i'm ready to report this assignment to our class on monday.. thanks again.
Great presentation. We all live this everyday so its nice to see it simplified in such a way. Of course, there are a lot of variables but that would be a very long video. lol
I liked your video. Till the end. I don't think i happiness equates consumption. I believe that through savings a person can seek to maximize his monetary as a end of itself. The goal being a rise in social status or a preparation for children etc.
Great Video. Small point, you mis-spoke at 9:12 when you said money flows counter-clockwise and goods & services flow clockwise. It's the other way round.
@Jason Welker I have a question sir, What if the entrepreneur owns its own land? Would it be possible that the entrepreneur will only acquire Human Resources and Capital from the Households? BTW, this is a good video. :)
I'm a little confused, what you explained in the diagram and all, money is flowing clockwise while goods and services flows counterclock wise so why did you say the opposite of it??
Entrepreneurship (that earn profit) should also be regarded as a vital resource (factor of production) in the process. Without entrepreneurship nothing will happen.
==========< There is the owner and the employee.>========== Ultimately, the 'Employee' makes the products, takes those products to the market, sells the same products, he made, to himself and finally he pays a fee known as Profit to some 'Owner' for a permission to own the same products he made and sold to himself. The owner gets to collect profit for doing nothing.....and many call that 'earning' instead of 'taking'. The way forward to a better society is to increase and maintain a strong minimum purchasing power of the end-consumer using the magic formula. (Magic Formula: 'Your minimum Purchasing Power' = 'minimum wage' + 'Benefits payments' - 'Cost of dignified living from cradle to grave' - 'Taxes, fees, penalties') Firms are no more "legal entities" than your back-up power generator is a "legal entity", and it does not matter if it runs on fossil fuels or if a bunch of humans must run on treadmills all day. Firms are just property and should be treated as such by the laws. Save the minimum purchasing power of the human citizens instead of saving businesses/firms.
I'm currently a freshman that's taking microeconomics in effort to becoming a business major. My question is, how are households providing wages and rent, when they're the ones paying it. Isn't the firms providing the wages and rent via income in exchange for the labor provided by households? Sorry Still trying to understand all of this thoroughly.
So how it works is firms have the money and give it to the households (consumers) in the form of either wages (labour), Interest (Capital), Rent (Land). so for example i can own the land that the firm wants to us. so then the Firm comes to me and we talk about a deal to either buy the land or rent it. that money i get for the land that i own then goes to the product market because i can now lets say buy that car that i always wanted. that car was produced by the firm that either rented/bought the land i had or the land that someone else has. Households aren't providing wages and rent. They are gaining wages that can turn into rent in exchange for the scarce resourses they have. Like yeah they can provide rent but it would be to the landlord that that there renting there appartment or house from. So in this case Household provides labour to a business, that person gets a wage, which turns into rent and is paid to the landlord for the service of providing a place to live. ultimatly the flow goes to mulitple places but it has one circular motion. from consumer to producers and then back.
