more than half of my life, there has been some 'crisis' going on that directly or indirectly affected me and im not even in my 30s...im kinda getting tired of this BS
The science of how to profit from crisis has gotten so good that now the pro-crisis economic factions can afford real power. People figured out how to make fortunes off change, both positive and negative, so the wilder the swings the richer they get.
Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.
Emotionally-charged decisions to sell off large quantities of stocks or other investments now lock in your losses, removing any chance for future growth.
A 2022 Northwestern Mutual study found that 75% of U.S. adults admit their financial planning needs improvement. However, only 29% of Americans work with a financial advisor.
@@Believer292 Very correct, the bear market has contributed significantly to the growth of my investment. I was able to quickly increase my portfolio from $180K to $472K. Essentially, I was just doing as my financial advisor instructed. You're good to go as long as you get competent assistance.
@@james.atkins88 Would it be okay if I asked you to recommend this specific advisor or company that you used their services? Seems you've figured it all out.
@@Kim.beneteau Big Credits to “Julia Ann Finnicum” she has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Julia has been a good guide through the year.
The broad-based Standard & U.S. consumer confidence has sunk to record lows, thanks mainly to inflation. Retail spending, home-building, and manufacturing output all declined and those who drive the U.S. economy, are starting to cut back on discretionary purchases, such as appliances and services. Regardless of our market conditions, however, we should continue to promote savings and smart investments.
Every person is affected by this directly or indirectly. Taking myself for instance, Investments or stocks still retain their values very much but I'm still at crossroads on deciding if to liquidate my $113k worth of stocks or hold on to them cos I'm scared they might lose value.
There are several reasons I have been investing under the counsel of an advisor which are someone who sets asset allocation that fits my tolerance and risk capacity, investment horizon, present and future goals ‘’Eleanor Annette Eckhaus’ has provided all that and I don’t want to go into ROI on a public space.
@@bsetdays6784 There is this podcast i was listening to and it said something venturing within your tolerance and risk capacity, see you mention it again got to me.
@@lucianoboccedi What the pandemic showed is that people are a lot more secure if they have an emergency fund and a financial plan; one with a Plan B and Plan C. Also the war in Ukraine are both wake-up calls that stock market crash can happen abruptly in a recession and inflation may rise. Hence, everyone needs a crisis investment plan.
I would like to counter that Korea basically grew under coup de tats and very non democratic governments. I think what is really important is how Korea funded many bright minds to go out to great foreign schools which in turn will help the economy grow as theirnhome country has family and familiarity. Education is key to economic growth.
Singapore had authoritarian tendencies as well. The advantage of non democratic governments is they can easily mobilize their population to get educated or work in fields they haven't seen prior. They can even make cultural changes to accelerate their modernization process.
@@auraguard0212 Singapore is basically a (mostly) benevolent monarchy and I'm not trying to downplay their success. The founder of singapore is easily one of the greatest nation builders of all time.
@@auraguard0212 Agreed, even during British colonial period and its stint as part of Malaysian Federation, it was already a cosmopolitan and rather prosperous city in the region. Not first-world prosperous like let's say the US in the same period, but still way, way better off than the rest of Southeast Asia. If I'm not mistaken, it constituted almost half of post-independence Malaysia's GDP (till it was kicked out by Tunku Razak) despite having 10% of its total population. That alone should give them considerably better head-start, although having *unusually* good leader like the late Lee Kuan Yew was a huge, huge plus and a luxury everyone else doesn't (or perhaps will never) have.
I'd put it down to two factors acting in combination. 1) The money economy is falling out of sync with real productivity, the thing that causes most economic crises. 2) When something cannot go on forever it won't.
Shorts were introduced to draw audiences from generation TikTok. I'd say what bother with kids with a 30 second attention span who like vertical videos?
@@sonneh86 you can break the cycle, or if your content is entertaining enough, then it doesn’t really matter, they’re like a 4 year old with cocomellon. I personally don’t like tiktok (although you can have some fire memes if you know where to look) because I prefer as much data on a topic as possible, but tiktok does have some pretty good buffs for both companies and content creators
Thank you. Just what I needed to watch. My wife and I are directors of our own business and own a few property, plus other income . I am nearly 52, We have started to save to retire perfectly, and possibly live on rental income, I'd really appreciate you talk about how to earn passive income online and retire comfortably
The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
Elise Marie Terry is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
@@esther.74 Thank you for this tip. it was easy to find your investment advisor. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
I think a lot of actions taken during COVID pushed the negative consequences of the pandemic into the future. Governments borrowed a lot of money just to keep their economy from imploding. And it worked, for the most part, but now we're having to face some of those negative consequences. That's affecting developed economies significantly, as we have seen, but their overall resilience means you might have a few protests, even some riots, but the government doesn't collapse. In developing economies there isn't so much resilience.
A lot of actions contributed to our current inflation issues- governments handled COVID like it was 2008 but it was a different set of circumstances and needed a different approach.
@@sangle120 To some extent, though I'm not sure what alternative approach would have avoided the massive bailouts to companies and individuals. Perhaps it would have been better to avoid stimulus when the problem is on the supply side, but we'd still have to keep businesses afloat that would otherwise have crumbled.
The economy still imploded as most government money went to money hoarders in usa who then pumped it into the stock market and cryptocurrency. Most downtowns are still gutted from large quantity of small businesses going bankrupt
@@Croz89 mass bailouts needed to happen, but they also needed to be proportional to people staying at home. Tbh I think there's also broader repercussions on a societal level too- people who were essential workers see it as the non essential workers having a better deal and are leaving their careers behind them.
specially if is China, they said every year that China is Done this not gonna happen co China have more than 2 trillion dollars, a lot of Gold, 29% of the world depends of China in a lot of areas. So this channels just want views.
It wasn't normal. 3 decades of exponential growth, a 2 billion increase in population, out of all the centuries humans have existed, these decades certainly haven't been normal. But these economic collapses are about to become the new normal. Covid hit the developing nations where it hurt most, and for some, it really is the end. Unlucky
its trash, nations fail because they arent a nation. a nation is made out of people with pride for their nation, the people and leaders are prideful, that pride is the nation itself. once a country loses its pride, its over. thats why all nationalist countries are a menace to the west who seek to dominate the planet.
Corruption is huge in developing nations as well. Money supply as you went over too is important. Developing nations often borrow a lot of capital either against their own government in the form of printing more cash or bonds or they'll go to other wealthy nations and try to work out a deal. Part of the reason right now things are failing as you stated is that a lot of foreign investment won't see developing nations as a good place to park cash during a downturn as they're more volatile and susceptible to slide very fast if things go up whereas a developed nation has many safeguards in place.
They do it in a larger scale. Bank give money, used to develop the country. Loan ends and collapse, We see this in companies, states are companies with people paying service.
@@ivannaharmoni Then how do you explain corruption in nations that were never colonized (e.g., Russia, Thailand, Greece, Italy, Iran, Afghanistan, etc.)? Your theory is just an ideology.
The biggest problem with the notion that democracy is the best tool to promote economic growth is that for democracy to work, you need a stable economy and government in the first place, as well as a well educated population. Democracy in a nation where most of it's citizens is illiterate and never finish high school is most likely not a democracy, but rather a demagoguery where voters don't really know what's actually good for the country and politicians are just paying lip service to the masses. Granted this happens even in highly educated country, but think about it for a second. If say the president of the united states says that taking on more debt for building infrastructure is a good thing, there will most likely be at least some quality critics about why it might not be actually that good, critics which is build from many sources and after careful analysis. In a country where that is not the case, the people will most likely just listen to the reasons why it is good from the politician and just agree because they don't have the resource or knowledge to make an opinion on why it's a bad idea, people that don't have basic education or illiterate most likely won't know basic economic theories. By extensions, people with low education in a democracy will be more susceptible to bribes and making bad decisions. They will be more impressionable and base candidates based on short term promises that directly benefits them rather than the candidates long term plans or ideologies. Democracy in my opinion also need a stable economy in the first place. Poor farmers that are working all day in the fields with no good access to political resources to make decisions most likely won't make for a good voter, and the process of decisions making and elections itself also need money and an economy that isn't going on a nosedive or at rock bottom
Not sure about that. For example, the US was neither stable, rich,, or well educated for the first 100 years, yet it is the longest democracy to date. Japan and Germany were both utterly destroyed And unstable when they became democratic. Not saying what you say is wrong, but there are examples that don't meet the stable, well educated, etc preconditions
It shows you how amazing it is that western democracies exist. Also, it’s worth considering how many negative feedback loops we have created by fostering a culture of redistribution. I don’t think voters are nearly as diligent as they ought to be about infrastructure projects especially schools and roads.
DEMOCRACY NEEDS SENSIBLE LEADERS. NOW I ASK YOU TO LOOK AT THE USA, HOW MANY SENSIBLE LEADERS IN THAT COUNTRY? WE HAVE A NURSING HOME PATIENT WHO IS SO BAD AS POTUS HE MADE TRUMP LOOK GOOD. THEN WE HAVE THE NVTJOBS LIKE DE SANTIS WHO IS TRYING TO MAKE USA A CHRISTIAN THEOCRACY REPUBLIC. FEEEEKKK!!!
I think economists are looking at the wrong factors and statistics. Instead of paying attention to GDP, and unemployment which are flawed by themselves and look at other factors. For example, can we really say that people are better off when credit card debt balloons to 986 billion??? Or when lottery tickets hit an all time high? Do we look at fuel and food costs increasing in double digits and say “yep! All good!” This is the downside of economics where we focus on a few stats and don’t delve deeper into the cause and look for alternative statistics that could paint a better picture
That is kinda the key detail when talking about economic success. Economics does not have an objective metric, every measurement you assign value to is done relative to the speaker's (or the speaker's school's) priorities. We tend to value GDP and growth because the people who benefit from GDP and growth tend to also be the people hiring economics for research and punditry, so their priorities are presented as 'our priorities'. There are plenty of alternative statistics, but the people who have tied their fortunes to the current ones, along with anyone who wants a career in the field, are not interested in them.
@@chamalinni I think people struggle with GDP. Especially when you explain the 4 parts and what goes into those parts. And everytime I explain that unemployment doesn’t count people who aren’t looking for jobs they instantly dismiss it
@@stephenjenkins7971 On average, when the largest populations China/India pull 100M's people out of poverty they make the figures look quite good, funny how China is used simultaneously as the bad guy and the good guy in global matters of capitalism. Meanwhile countries run by a neolibralist ideology (late stage capitalism) are not, indeed some of the richest countries US (40 million in poverty 12.8%) UK - 14.4 million(20%) people were living in poverty in 2021/2022, according to the government's annual 'households below average income'report. This includes 4.2 million children, which is almost one in three (29 per cent), certainly not progressing. 18/12/22 "UK billionaire numbers up by 20% since pandemic" (the guardian) So yes I'm privileged that I live in the West and not in poverty, but clearly I already knew that, otherwise I wouldn't be highlighting the fact.
@@jamesgrover2005 China/India are just a part of the general trend; and both were looked on extremely favorably when they were doing it. China only started to lose its luster when people started digging into internal matters; which is always what happens when you become important enough. Get used to that. China was and still is the ultimate neoliberal country, genius.
@@jamesgrover2005 That was exactly my thought. He talks about Western democracies as a natural path to economic success without mentioning the biggest success in economic history was a one party state that lifted hundreds of millions out of poverty. .
Everything is so interconnected - banks relying on bonds which rely on other banks and their bond system... which rely on investors and incomes and networths and sales and retail and international shipping and consumerism and government taxes and interest rates. Its all insanely connected.
@@rfwillett2424 when done correctly. The big risk - as pointed out in the video - is when that connectivity is over-leveraged and external factors change the predicted economic outlook. Suddenly a 'good investment' may not seem like such a good idea. Hindsight is, as always, 20-20.
@@boingkster Didn't say there couldn't be pain ;) Capialism is like Democracy. It might suck, especiall when done badly. But evrything else sucks a lot worse. It the end it's all about oversight and sound regulation.
America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun.. Lloyd Bernard
Ironically, these are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The banks are in a big crisis. The market looks very shaky. The bigger the red candles, the bigger the green ones. I have made over $280k in the last 4 months by investing through my FA.
I personally work with ''Deborah Sue Bohn' she covers things like in_vesting, in_surance, making sure re_tirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.
The US is not in a recession. Credit card debt did not increased by 20 percent in a single month. Which rates have doubled in a year, certainly not credit card debt. Inflation is high, but declining. And if people are taking on debt for basic necessities (which I think is a very exaggerated, then the country has a much bigger problem: being unable to provide subsistence level incomes. There is not a collapse happening. Quit fear mongering.
Credit card debt has not increased by 20%. The average interest on credit card debt has increased from 17% to 20.4% ,this may be where you are confused.
Your global gdp growth interpretation is potentially misleading as it doesn't account for inflation. Are we really producing 3 times more stuff? Or did the stuff just get more expensive? You need to show the real gdp growth to be more accurate.
Since Biden took office, there seem to have been more unfavorable results in America. These results include effects on the markets, such as price declines and sharp increases in inflation, as well as bank failures. I wonder if the sudden increase in interest rates will help value investors or if it would be wiser to stay away from the stock and financial markets for the time being.
To "buy the dip" It will be profitable in the long run. However, investors should be wary of the bull run. It is advisable to connect with a skilled adviser to fulfill your growth objectives and prevent mistakes. High interest rates typically result in lower stock prices.
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I love that we're talking about undeveloped economies as the ones that are able to provide all their own needs, if anything, that sounds like a developed economy. Ours are the real undeveloped economies who rely on the market.
There is some truth but also some details that need to be checked, a "underdeveloped" country may be able to be somewhat self sufficient, but in that case it can't specialize or make complicated nation wide projects that can improve the lives of many unless it became really lucky. Without specialization you cant have any type of person other than producers, no doctors, no artists, no soldiers, so if your neighbor has more of these things than you then your sovereignty is always at risk, either via a cultural drain (ie people attracted by promises of better lives/less work to maintain current standards) or violence. Self sufficiency works pretty much only in isolation, but once you get others involved, it wont last forever
Well , Sri Lanka, Pakistan are democracy yet they suffered from crisis. China and Singapore were not democracy yet they developed. Most of the so called advanced economies became democracy only after becoming rich and advanced in first place.
Singapore is a democracy. But the main political party has successfully retained power because their policies work for the country. Even though they are a right-wing party. They combined lots of left-wing policies (like infrastructure, social issues, or housing, for example). To solve societal problems in the country. If they had refused to implement popular left-wing policies, the ruling party would have been voted out years ago.
The best way to describe the present economy is 08' 2.0. Yes stocks are at a discount and things will eventually get better but my monthly living expense is up $3750 from $1600 and I'm left wondering what retirement have in store for me 5years down the line, I'm ill-prepared tbh, my 401k gains are zero-nothing and my stock portfolio?...OH WELL!
The uncertainties accompanying this present market is more reasons I have my daily investment decisions guided by a portfolio-coach seeing that their entire skillset is built around going long and short at the same time, both employing profit-oriented strategy and laying off risk as a hedge against the inevitable downtrends, coupled with the exclusive information/analysis, it's quite impossible not to outperform. Netted over $800k in return on investment, since using a coach for about 2years.
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@@rizkyadiyanto7922 not necessarely. We are living the best times. Doesn't bother me someone flies private jets or drives Ferrari. I still get to fly everywhere in the world and own a car
1) The pandemic response (often mistakenly stated as "The pandemic") 2) Momentum. An object in motion stays in motion, until acted upon. It takes time to spend all the reserves, and then borrow and print your way to an unrecoverable position.
I think economists have forgotten that when people are angry and without hope they can always fall back on an axiom of nature, and just take what they want, if what they want exists. The future is mad max, if governments keep acting like people exist to service the government and not the other way around.
Academics, economists, corporate CEO’s politicians and business leaders do not have any new ideas. They basically keep repeating the same old stories and keep blaming the same old things based on the same old economic models. To me, one of the most stunning things I learned about modern economies is that money is created out of thin air when someone takes out a loan and goes into debt. I was well into my forties when I learned this about modern money. At first I did not believe it and it is certainly not what I was taught about money in my younger days. The money is created by entering numbers into the borrower’s account when the borrower takes out the loan. As the loan is paid back, the money that was created for the loan is eliminated and no longer exists, but the bank or financial institution that created the money gets to keep the interest that was paid. So, the more debt there is, the more money there is and the more interest that is paid to the bank. Modern money is mostly about getting governments, corporations, businesses and people into debt and there is also quite a bit of smoke and mirrors involved. On the international level, debt has been used as a tool to gain power, status and influence over other countries for centuries. In the past century, the US perfected this technique. In the 21st century, China and some other countries have also learned this trick. The idea is to keep the borrowers continuously in debt so they can continuously keep paying interest to the “lenders”. The joke is that the money given out for the loans that make up this debt does not exist. It is basically a “fake loan” and to make the joke even better, to get a loan like this, most of us including governments of other countries have to put up some collateral, so if you default, they can take ownership of your collateral. So basically, they get whatever collateral you put up for free and with no risk since the money they “lent” you did not exist. Supposedly, this has been determined to be a legitimate way to do business! This is how the US has been able to be the dominant player in the world economy but is now being challenged. The Gross Domestic Product (GDP) represents the size of the economy which is the amount of money the economy is worth. When the economy is continuously growing, the GDP is also continually growing. Similar to any addiction, more and more borrowing is needed to have the same effect on economic growth. When the government debt starts to become greater than the value of the Gross Domestic Product (GDP), technically it will no longer be possible to pay back the government debt. If it continues, the buying power of money will start to be significantly reduced and if the government debt starts to become several more times higher than the GDP, the money and financial systems will probably collapse. If this happens, the system is reset and the cycle is repeated. During the run up there will be some good times but, after the reset, times will probably not be good and war is also a possibility. This cycle has been repeated continuously throughout history from the Chinese Dynasties to the Roman Empire to Germany after World War One and to Argentina, Venezuela and to many African and Asian nations in the 21st century. If the American Empire can avoid this cycle, they would be the first. The idea and thinking that the economy always has to grow for there to be innovation, progress and prosperity may be a problem on a finite planet with limited resources and the focus now needs to be on sustainability not on growth! Presently if the economy is not growing, it is considered a failure. This type of thinking cannot go on uninterrupted on a finite planet with finite resources. There needs to be flexibility in the system for the economy to expand and contract and for a contraction to be considered normal and not a problem or a failure. The contraction needs to be just as prosperous and productive as the expansion. For this type of thinking to work, there needs to be some new economic theories and models developed along with some new types of money and financial systems based on economic sustainability not on economic growth and money inflation. I am sure there will be some Nobel prizes awarded to the academics, economists, corporate CEO's and business leaders and of course politicians and government officials that can figure out how to make a sustainable economy work and how not to devalue the nation’s money in the process. The way this can begin and improve peace and fairness at the same time is when our business, government and academic leaders along with our wealthiest and brightest and smartest among us can learn to be much more truthful, honest and trustworthy and learn how not to become corrupt and can start to understand that the wellbeing of others benefits everyone and is the bases for morality.
You wrote well versed explanation to a lot of issues i am constantly thinking about and how to adress them, mainly restructuring our economic models away from growth and towards sustainability. The fact that no economic decision factors in any potential aftermath of a decision (e.g. using pesticides to pump out more but poisoned produce, plastic wrapping for consumer convenience poisoning the oceans our planet sustains itself from, etc.) is literal madness, since we do in fact factor in aftermath in our day to day decisions. If i get blackout druck today i will have a very bad time the next few days and boy has this world been partying. At this point i have a lot of doubt about productivity numbers like GDP, since they can be bolstered by bullshit transactions - e.g. cleaning your room yourself does not increase economic output, whereas cleaning each others room does. This in turn makes me very suspicous of "growing prosperity" projections since the reality i see is very different. To be honest i dont ever see this ending well. The path has been set and the ship is hard to turn around. So hard that it might in fact sink. But im a depressed pessimist anyway. Or is it already realism?
@@raptorcheesus I recently learned about the “Centre for Advancement of the Steady State Economy”. Not sure if you are aware of this organization. I would list the website link but RU-vid does not allow website links to be posted so just google “Centre for Advancement of the Steady State Economy” and the search will list the link. Hope this helps with your research.
Millennials want the green new deal. Which results in inflated housing costs. In San Francisco you have to do an environmental review for every house you build even if you are just demolishing existing house to build a new one. There's a lot of NIMBY ism in the USA too, which also drives up costs. Voters voted for this, so the future generations will pay the cost of bureaucracy.
Our system requires US to buy. That's why demand shocks are bad. So they have methods to make us buy. One is owning all the houses and selling a few to people at inflated prices. We have more than enough houses to get rid of homelessness but instead we have a inflated market.
Great comment. 1% of the population owns the majority of the pie and the pie left for the rest of us is getting exponentially smaller. They do this by constantly making the money you spend most of your waking life breaking your back for worth-less.
India is a democracy while china is a tyranny, yet china is way ahead of India??? Any reasons? Democracy doesn't mean road to prosperity or vice a versa.
What I love about this channel is that he explains economics the way an engineer would explain a piece of machinery. There is no spin, no agenda, no personal ideologies or weird theories thrown in. It just does what it says on the tin. He explains how these systems operate and invites you to think without ever trying to tell you *what* to think. It's a refreshing an oasis in our desert of endless spin.
Everyone has bias. And every Piece of media has bias. If you think this guy doesn’t then you just don’t notice it. It’s better to recognize your own biases and always assume everyone else is putting “spin” on things than to try and find someone who isn’t.
@@josephp.1919 This. The presenter has their own school and priorities, taking many things as givens and ground truth which, if they match the speaker, seem natural. I agree it is like listening to an engineer, but that has a similar problem. Listen to any engineer explain how something works and what parameters mean it is working well or not and you can usually figure out what THEY use the widget for and are taking it as a given that 'does this job better == better'. Put another way.. yeah... it isn't that the presenter is telling people what to think, they are assuming what they already think and presenting that as correctly minded, which is what one would expect when explaining systems where the conditions for success are relative to the speaker.
The greatest trick the devil ever pulled was convincing the world he doesn't exist. Neoliberalism is so insidious because it doesn't posit itself as the most valid of a variety of ideologies, but instead as "just the way the world works". Most people in western countries are so indoctrinated that they would sooner imagine the end of the world than the end of capitalism.
I would love to see deep and long term impact of AI on economy. With current progress in mind (something what many experts would say never happen or in next 100 years)
@@Noe-gj9mw futurists, economists, geopolitical analysts etc are literally worse at predicting the future than the general population. No joke it’s studied.
I don't know much about 🇭🇰. But , countries like 🇱🇧 , 🇱🇰 and 🇵🇰 are facing big economic crises because of having a huge unsustainable debt. And also because of economic mismanagement and corruption.
It'd be interesting to hear what the global economic situation is like if you exclude the top 1 or 2 % of wealthiest people, or how the economy is going for the median person. A lot of the times you get the feeling that when they say the economy is improving, they really mean for the top echelon. Who then pull up the world average by a tonne!
I sometimes think of it as the quality and quantity of goods/services are improving which eventually outweighs the housing issue and can't include the quality of working conditions/the state of labor.
Chinese loans are not 'generous' by any measure. They are commercial i.e match debt market interest rates. However, they are (were) more available to developing countries at a time when anything other than IMF/WB concessional loans were. He nce an attractive option (as compared to nothing).
@@badluck5647 I highly doubt there are any projects built 'exclusively' by Chinese workers and being from a country and region where there were many Chinese Projects, I can attest to seeing for my self. My correction however is on the stated 'concessional' nature of the loans. There is no such thing. Chinese loans were commercial and this compensated for the risk of lending to vulnerable economies
@@kalomboC Are you really going to nitpick how Chinese corporations aren't exclusively using Chinese workers because they let the locals clean the bathrooms at the construction sites?
Advanced economys can outsource their economic negative to developing economys. In this video, I heard like 9 different ways the first world screws the third world so their positions stay the same
Why Nations Fail is probably my most recommended book for someone to read ever. It’s easily the best explanation of why some countries do better than others and it’s all backed up by solid data. Acemoglu is one of todays best economists.
I have a production question if it’s ok to ask: When you call out previous videos your graphics (the mocked up RU-vid pages with the thumbnail in place of a video player) are very consistent. Is there a tool or template you use to generate these? Would love to use something similar in my own work 🙂
You are very right .. should you call development and growth development and growth when the climate externalities are “offshored” to the so labeled “undeveloped” world. Be good. Be light. All power to you my friend. I believe you will find a new deinfition for economics. Also I would refer “Sacred economics” by Charles Eisenstein.
I’m not referring to the thumbnails themselves, but rather the mock RU-vid pages that display them. They’re not standard screenshots so something else is being done here.
Hi, just a small silly question Could the increase of GDP be a result of inflation rather than increase in production? Or perhaps this increase is a combination of both inflation and production
My exact question too. In a world where material wealth is not proportionnal to money/paper wealth, an increase in GDP is meaningless unless accounted for with the corresponding material wealth indicators per capita and against inflation. This was a weak take from EE at best.
Yes. I asked this question also. I mean saying that there are more birth than 20 years ago is somewhat meaningless when there are factually more people availble to give births. Since the birthing pollution "inflated" the overall number of births is likely to increase as well.
You can usually get stats in constant $ value (I think a constant 2010 USD is usually used). Without checking the figures, I would expect he has used these figures otherwise inflation would be a factor
The formula for GDP growth has a component called as the "deflator" which adjusts for inflation/deflation. Of course it doesn't work because governments are real crooks when it comes to counting inflation, they do a very dishonest job and always underreport, throughout the world. But that is besides the point, the GDP growth is always after accounting for inflation.
@@pg.travels Inflation is only one of the parameters that make EE's take questionable. Housing and the division per capita makes the whole GDP argument look meaningless. In most western countries, housing increased in price over 20% over 2 years in the period he looked at. That factor alone can change the entire dynamic of what a GDP increase really is. In this case, since most inflation measures don't even include it, even a calculation factoring ''inflation'' doesn't capture the housing bubble effect, which is absolutely not an ''increase in output''. The division per capita also puts a dent in that interpretation, the median person has been growing poorer in the last 3 years. To anyone with eyes, this doesn't suggest an increase in output. Since GDP is a measure of money flows, all it suggests is that money has been flowing more rapidly toward rich people in the past 3 years.
Most of todays leading economies reached their rank as leading economies when they were not democratic at all. When the US became the no.1 economy (around 1900) majority of the population didnt have right to vote. So democracy has nothing to do with economic success of any organization, that is why none of the corporations are democratic. Quite the opposite. Democracy is a consequence of economic success in many cases. Also who would call todays US a functioning democracy? No one knows who makes the decisions, but everyone knows who does not - that guy who was elected by the ppl
The idea that the influence of voters is positive is ludicrous. As a Greek I can say for sure that any party that dared to address the debt issue by reducing benefits would be heavily punished, which is why it didn't happen. Argentina Brazil, even France is the same. The current world leader thr US has reached the point that it has no power to respond to emergencies due to its debt. Even an easy war like the invasion of Iraq is out of question nowadays.
"If someone invented a new way to build more efficiently on the same amount of land" spoken over a shot of detached single family house suburbia with super wide roads and law-mandated minimum size of the plot of land made me chuckle.
Hey Frank Cooke, if you were trying to denigrate Australia, you failed by using that Chris Hemsworth analogy. He's been ultra-successful in Hollywood you idiot. The only way your comment makes sense is if you meant to say that economic advice from an Australian will lead you to be ultra-successful. You can't even insult people in a way that makes sense.
I've been diligently working, saving, and investing toward financial independence and early retirement, but the economy since the pandemic has eaten up the majority of my $3 million portfolio. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?
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?
I will never understand why @EconomicsExplained doesn't see greed as a big part of this problem. On all scales there is a lack of public trust between individuals which causes a reflexive hoarding mentality in the market. People don't want to get burned not realizing that the very systems they put in place to guarantee their own success comes at a cost of others doing horribly. This is "instinctive" but counterproductive as you hurt yourself in the long run by reducing the amount of specialized individuals in the cohort. Companies are to worried about satisfying their shareholders when their shareholders provide nothing to the economy but pieces of paper. Labor is value
The whole philosophy behind capitalism is using personal greed to develop satisfactions to needs and wants of all sorts. Problem is the biggest rewards go to the most sociopathic actors, which is why private business interests shouldn't be driving public policy as a whole.
Because while economics is a science, economists and institutions that teach economics have been captured by corporate money. Therefore the average economist will talk about the economy in terms that reflect the interests of rich people.
Trickle down economics. If the rich get rich, we will also get rich. Except it's going the other way. The rich get rich we are poorer thinking we're richer.
Governments and the economy in general are too focused on the consumer and not the workers. Workers are what really makes the economy work. Unproductive consumers that don't produce anything (aka don't work) are great at generating inflation and paper gains in economic numbers...but everyone feels they are getting poorer as the economy seems to powers thru (all smoke and mirrors), the economy doesn't feel quite right to anyone, like it is heavily distorted in many ways. That exactly is what is going on, we have plenty of money moving around from government stimulus and monetary stimulus, strong consumers with plenty cash to keep the economic numbers looking somewhat good...but the workers know they are getting shafted, that is where everything breaks down... productivity goes down, employee turnover increases, workers demand ever increasing wage adjustments, and stuff like quiet quitting and the quit rate increase dramatically. Working is just not a very attractive option nowadays, in many cases completely unnecessary, and in other cases can be even counterproductive when many live better by doing nothing at all. The INCENTIVE to be productive is broken...the push to equalize pay at any cost and lift unproductive people from sometimes very arbitrary poverty lines has made it completely pointless to actually be productive and get a job. It is still extremely amusing seeing "the experts" and politicians completely baffled by the very basics of human psychology and economic principles 😂. Sooner or later they will figure it out...they can try changing the world all they want, but they can't change how people think.
"Life is better for people more than it has ever been" Bro, in your own country we are going through the highest inflation in decades, the worst housing crisis ever and the lowest wage growth ever. How can you even say these things? GDP being up has nothing to do with how the average citizen is doing in the world.
Issue with that metric is that it doesn't consider other variables like inflation, increase in density leading to even higher costs, rising living costs, etc. I really don't understand how they managed to miss them.
7:04. The idea that companies actually pay taxes to support the publicly financed infrastructure they use might be the way it's supposed to be. But it doesn't happen
Didn't you mean to say the rba shock? Let inflation rage and say there is none, then admit there is inflation and we need to crush the consumer to stop it! Much better analogy MATE.
It's funny how there's not only a built in assumption that a collapse is due but an expectation, a reliance on it happening. I think people should think very critically on why this is the case.
what’s missing from this video is the fact that some countries went from undeveloped to developed. It’s not like it was given like a gift. It goes the other way too - Argentina was a leading economy in the early 1900s, it’s now a basket case.
A bunch of us tried to warn about the consequences of what was happening, we were called evil for our troubles. We are still warning about some of the other stuff that's going on, and we're still being called evil for our troubles. Things are going to keep getting worse until people stop mistaking what we would like to be true for what is true.
Basic assumptions in scientific research 1) it relies on empirical evidence 2) it utilizes relevant concepts 3) it is committed to only objective considerations 4) presupposes ethical neutrality 5)
Democracy or not , you ultimately need a leader who legibly gives his 100% to improve his country no matter what. And has the guts to literally stand by his vision and his policies, regardless. Like an army personnel who's only and only priority is his country, not his position, nor his progeny , nor his pleasure. One of the very reasons why those top two countries with highest gdp growth continues to grow unlike the rest of the world.
No, you need planning and fundamental economic development. People are there just there for a while. The reason the monarchies collapsed and heads of state had a few years in government before rotation (democracy).
Great video, but missed the real answer here. The issue is that the US dollar is the world’s reserve country and all these countries issue bonds in USD. When the fed raises the interest rate, these developing countries can’t repay - simple as.
@@tobytaylor4051 I'm enjoying working under a platform that brings good return in my life and I've been making my weekly returns without stress all in cry-pto currency
Decades of quantitative easing. With countries tying themselves to the dollar, they also did well during quantitative easing - but are not, with quantitative tightening. USA, EU. and China are in or heading into a recession, and other countries are, not surprisingly, affected. Of course, CoVid and its supply chain disruption was the major catalyst for worldwide inflation and recession.
In the US, there are more millionaires than happy children. The las time time I saw a genuinely happy smile in a child was in a third world country. Enough said. 🧒
That's because they don't know any better. A matter of perspective. If you lived on the streets your whole life and upgraded to a rickety dirty old RV, you'd be happier than someone who had a small comfortable house who had to downgrade to that same RV.
Then I'd rather be happy and ignorant than wealthy and unfulfilled. You even might argue that teaching children about the material value of things is one of the cruelest acts we inflict upon them, since for them there is no difference in joy between playing in a puddle of water or playing with an expensive toy.
Can you do a video on the economic effect of AI and automation? Especially talking about ChatGPT and other AI search engines. Also in the video can you talk about the shift from the information age to the knowledge age.
Massive wealth/power inequality in democracies; (re)creates a stagnant ruling class -a monarchy/nobility with a different name and a few extra steps when enacting their will.
I know this is just an introduction, but I take issue with the framing of this video around aggregate indicators such as GDP. No, global output has not been increased over the past 3 years even though GDP might have. In a world where most countries on Earth are facing the highest inflation in 40 years, in many cases going above 2 digits, an increase in pure GDP means nothing if you value it in a dollar denominated sense because it means even a 10% GDP growth is a material impoverishment of 1% given an 11% average rate of real inflation (those numbers are fictitious to illustrate a point). That is also without mentionning the per capita breakdown and the moustrous increase in shelter costs over the past 3 years (about 20% per year in most countries). Considering this, these aggregate numbers are meaningless for about 90% of the Earth's population. So no, ''global output'' has not, in fact, significantly increased in the past 3 years. Shelter costs alone might account for 50% of the added GDP, I doubt anyone here would argue that paying more for the same shelter is you getting richer...
'debt' is like 'growth'. It keeps the wealthy and powerful onboard with this whole 'liberal democracy' thing and is a way for them to take their cut. Take that away and there is no reason for having capitalism or democracy.
This dude is so out of touch. Life is not better today than 50 years ago for the vast majority of people. Families are wiped out. Transportation, healthcare, housing, food, education are all nearly if not totally unobtainable for regular people
Dude is drowning in ad revenue. In another video he even said he wont ever stop driving a car because he likes to be in his isolated little cage, not with other people on public transit. Actual boomer mindset in what seems a 30 ish guy
"What's Causing This Wave of Economic Collapses?" My guess would be... rich people, who control the masses via the social engineering of the media they own and politicians they fund, but not as a monolithic team operation, ie, there are many players, not all of whom see eye to eye, but most of whom have the resources available to promote what they believe the rest of us - or the majority who pays attention - should adhere to. That there are various ideas, some married together, like culture war and economic issues, as in anti-abortion stances attached to corporate tax cuts, or educational elitism (often class-based, purported "meritocracy") attached to financial or technocratic sector friendly policies, and this just muddles the issue further, so that the voting people are distracted by a culture issue, and then wonder who voted to make sure big business gets a tax cut, or that decades of economic choices have led to a tendency of plateaued wages versus ballooning executive pay, plus the rise of the billionaire-class and the continued erosion of old age pensions and social safety nets in favor of working till you drop to make some other joker rich, just so you have, maybe, enough to survive - and maybe pay down some of that debt they also convinced you to take on. If you get sick or your trailer burns down or your car with which you need to get to work falls apart, at least in my country... they - the ever present they - have even set it up so you can easily create a GoFundMe or similar in order to beg for money from all your friends, family, and neighbors, who are also all broke, so if you're lucky or particularly good at begging, you can get part of your bills covered, and then maybe won't lose everything you've saved up in order to survive... if you're lucky. I could go into the foibles of the real estate market and affordability, and continued rising food costs whilst inflation and supply chain expenses continue to *not* cut into ever growing profits, but... eh... I get tired of writing about stuff people aren't going to fix (and in fact are *happy* to allow to continue in order that there are no transgender athletes competing against the same nominal gender or that "assault weapons" get banned or that somebody else can't get an abortion or that homeless people have a nicer tent city they can live in instead of being moved on down the road). Anyway, yeah... who, I mean, uh, *what* did this? Hm. *What* indeed...
Take stock of your expensive card, MULTIPLE expensive electronics, demanding to be served and waited on and catered. Erase all those and "do for yourself"
are you using real GDP numbers or nominal at the beginning of the video there? If it's nominal that doesn't really mean anything or that we're producing 3x as much
Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $700K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
@Margaret Just because there are opportunities in the market does not mean you should dive in headfirst. I recommend that you seek the assistance of a professional to better understand the potential factors that contribute to your financial growth. I was able to grow my portfolio by 5x in 4 months with the help of a market analyst who helped me understand the investing world.
@@Tsunaniis-j5l Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Every day we encounter novel challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $500,000 savings vanish after putting in so much effort to accumulate them.
