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The five sector model/circular flow of income 

Alex Symonds
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The five sector model/circular flow of income is an important concept in economics.
In this video, I'll take you through how the model works, including the sectors involved (households, firms, the financial sector, government and the international sector) and the income flows between them.
We'll also look at the relationship between injections and leakages.
Here are some additional posts to help you with this concept:
mrsymonds.com/blog/the-five-sector-model-aka-the-circular-flow-of-income
mrsymonds.com/blog/the-five-sector-model-circular-flow-of-income-and-economic-growth
Questions in the comments!

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21 июл 2024

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Комментарии : 36   
@iamunable
@iamunable Месяц назад
THIS VIDEO WAS SO HELPFUL I HAVE MY EXAM TOMMOROW OMG TYSMMM
@DistributistHound
@DistributistHound 6 месяцев назад
Hi there thanks for the video and great explanation. I am trying to spread knowledge about the economic proposals of major C.H. Douglas and whish to point out from what I have learned so far that there are some impicit assumptions in this model that do not reflect reality, it is not my intention to challenge the explanation but rather the model itself. I think it the flow between firms and households represents a handcraft economy where only human labour is involved. However once machinery and a multistage process arises then a problem in the circular flow becomes evident as explained by major Douglas in his A+B theorem in regards that the flow of goods is ever increasing in order to maintain the flow of incomes sufficient to acquire a portion of the production and therefore a chronic lack of purchasing power is ever present in the economy, this gap is solved in many ways however those approaches only cause more productive in the future. Problems that could be solved with the right amount of free debt money bringing the circular flow back into equilibrium. If we acknowledge this as true then I hope people and economist change the way we spread the study of economics in order to bring a positive impact into real economy and peoples lives. I recommend the video series of C.H. Douglas social credit on RU-vid to see the implications of this change of mindset in regards to economy.
@saqlainjawaid3496
@saqlainjawaid3496 Год назад
I don't know why there is not much views on the this video, the video is great, you explained the concept so smoothly.
@tofu9069
@tofu9069 3 года назад
Tysm, you’re so amazing at explaining the circular flow!!! Humanities and Social Studies haven’t been one of my stronger subject so and now I feel like will do well in my next assessment!!!
@mrsymonds
@mrsymonds 3 года назад
This is great feedback -- thank you for sharing!
@vishvamodi822
@vishvamodi822 4 года назад
This video is just awesome. Loved it Totally!!!!!
@mrsymonds
@mrsymonds 4 года назад
Just glad it was helpful!
@fooly592
@fooly592 3 года назад
Thank you! I have a hard time focusing on reading so this really helps me learn as a visual learner!
@mrsymonds
@mrsymonds 3 года назад
That's excellent to hear! I also find it valuable to have it demonstrated in visuals. Makes it much easier to absorb. Thanks for watching.
@johnnyg7905
@johnnyg7905 4 года назад
great video! nice and easy to understand
@mrsymonds
@mrsymonds 4 года назад
Thanks JohnnyG -- appreciate the feedback and thanks for watching.
@udaynataraaj2390
@udaynataraaj2390 2 года назад
Nice way of explanation... Love and respect from India
@mrsymonds
@mrsymonds Год назад
Thank you! Appreciate the support
@PiwaJalupa-AngaMapu
@PiwaJalupa-AngaMapu 4 месяца назад
Wow that was a good explanation 👏 thank you so much Mr
@faizasoha636
@faizasoha636 Год назад
Do countries (eg. Australia) usually try to stay in an equilibrium so they don't hit an economic boom or recession? or do they just increase or decrease the inflation rates?
@shashankdhokade9416
@shashankdhokade9416 3 года назад
Thanks it helps me lot. You are a good teacher. 👍
@mrsymonds
@mrsymonds 3 года назад
Thanks for the feedback. I'm really glad that the video was helpful. This is a very important eco concept.
@minmin-yx8ke
@minmin-yx8ke 4 года назад
Thank you! This is so helpful for my HASS test😂
@jamesvandamere805
@jamesvandamere805 3 года назад
Wow! Thanks man, you are truly a god
@mrsymonds
@mrsymonds 3 года назад
I don't know if I'd go that far. But you're definitely welcome.
@morrischen8951
@morrischen8951 4 года назад
international sector buy exports from australian firms... isn't that a form of leakage?
@mrsymonds
@mrsymonds 4 года назад
Good question. Think about this phrase: 'follow the money'. So goods leave Australia... but money arrives in Australia. Therefore, injection. Hope that helps. Thanks for watching!
@stevengreige6831
@stevengreige6831 Год назад
thanks for the vid what you opinion on jano
@xavierbianchini6420
@xavierbianchini6420 3 года назад
Thank you very much!!
@mrsymonds
@mrsymonds 3 года назад
No probs! Glad it was helpful
@yashsharma1256
@yashsharma1256 2 года назад
Thanks for the vedio ....I really love it ...👍👏👏👍👏
@mrsymonds
@mrsymonds 2 года назад
You're welcome. Thanks for the emojis!
@axelpape7540
@axelpape7540 Год назад
Bro saved me from failing me commerce exam, Life Saver.
@mrsymonds
@mrsymonds Год назад
You are so welcome. No dramas
@lavacopter4952
@lavacopter4952 Год назад
thanks mate
@jevins6320
@jevins6320 3 года назад
I know this may not be related but could you please explain to me what a market economy is. Thanks
@mrsymonds
@mrsymonds 3 года назад
Hi Jevin -- try here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-6yLY06tTQ1A.html
@alialogaily882
@alialogaily882 2 года назад
I Have 2 questions. 1. If an individual were to use a percentage of his income to invest into stocks or smth, where in the circular flow model would that be in? 2. Im confused in classifying savings and tax as leakages. If banks are using our money that we saved to invest would that be an injection overall meaning the more we save the more they invest increasing money flow into economy ? (same thing with government spending and taxes)
@mrsymonds
@mrsymonds 2 года назад
Hi! Thanks for watching and the questions. 1. It's not in the circular flow. It's one of the limitations of the model. You can check out more here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-aqzdlbYwAPc.html&ab_channel=AlexSymonds 2. I feel you on point 2. Here's how I think about it. Individuals save money with banks. Banks invest some of these funds -- but NOT all of them. So, savings is the leakage and some of that is turned into an injection. Same with govt spending. The govt collects taxation (a leakage) and then spends it on the economy -- but not all of it. Hope this helps!
@shankargupta5893
@shankargupta5893 Год назад
The reason of corruption wow
@mehreen1239
@mehreen1239 3 года назад
this is bad bad
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