*Main outtakes of this lesson* 1) _Purchasing power_ - the amount of physical goods and services that can be bought by a given amount of money. a. _Consumer price index (CPI)_ - a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. b. "Real" means that prices from the past has been _adjusted for inflation_. Nominal means a price from the past that _hasn't been adjusted for inflation_. So the highest "nominal" box office receipts list is quite different. c. Since we have to keep the market basket constant over time, a traditional CPI won't adjust for either new products or increases in product quality. 2) _Inflation_ - an increase in a currency supply relative to the number of people using it, resulting in rising prices of goods and services over time. a. _Demand pull inflation_ - too much money chasing too few goods. 3) _Bubbles_ - a market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset. a. _Speculation_ - trading a financial instrument involving high risk, in expectation of significant returns.
Some notes if anyone needs em! -Purchasing power is the amount of physical goods and services that can be bought by a given amount of money, and is measured by comparing the cost of identical “consumer baskets” through different years -Consumer Price Index (CPI) is the current cost of a basket divided by a base year to show how much prices have changed → CPI = a statistical estimate constructed using the prices of a sample of representative items whose prices are calculated periodically -CPI is not perfect as advances in technology change the baskets throughout the years -Demand pull inflation = too much money chasing too few goods → consumers bidding up the price -Cost push inflation (supply shock) → producers raising prices or producing less because of an increase in production costs -Housing costs increased because of bubbles → in early 2000s low interest rates and deceitful lending practices encouraged more people to buy homes (and take out mortgages) and then as the prices skyrocketed, people bought more homes hoping the prices would keep going up → called speculation -Speculation = trading a financial instrument involving high risk in expectation for significant return -Ninja loans = loans to people with no income, no job, and no assets
God! I am a Venezuelan, and now I understand a lot of what is happening with the economy of my country. I have to say that living under this economic condition is really hard, and sad. This series is so great, we all should learn economics, It is just so important. Thank you guys!
I don't know if this has been fixed in later crash courses, but I would recommend homogenizing the volume across the video. Volume jumps around a lot between segments (thought bubble, when Adriene talks, when Jacob talks, etc.). I find myself juggling between cranking up the volume (like around 6:15) and lowering it when it suddenly jumps up higher than ever (like around 9:35).
I think this is intentional. Monotonous volume level usually leads to lower attention span. It wasn't difficult for me to adjust the volume to a level where I'm okay with the volume jumps.
Incredible. I've been in economics courses and have read entire books on economics but no source has broken things down and explained it as intelligibly and impressively as you guys. Job well done. Please don't stop making these!!
I've watched nearly every video these guys have and honestly it helps! I'm working on my GED as of now and they helped me get higher scores so I for one have to thank you crash course for helping me
When I saw the blue line on the graphic that said Venezuela I was like "oh no, this is gonna be bad", I was not disappointed. Though I did start watching this so I could understand my country's economy, so the example was perfect for me. Greetings from Venezuela guys!!
Cool video and very informative, but you have audio normalisation issues. Sometimes your voices would be so low I'd have to up my volume, only for a cut to the other presenter to be incredibly loud making me push my speakers back down.
Jorg Albornoz the toppest of keks my friend. Also, I actually like ITAOTS, but the only people I've ever heard talk about it are /mu/ and anthony fantano, which is why I'm surprised
***** Seriously? not semen stains the mountain tops? but for real though, some of those lyrics, "and in the dark we will take off our clothes, and there'll be lacing fingers through the notches in your spine, and when all is breaking, everything that you could keep inside, now your eyes ain't movin' now, they just lay their in their climb." just, goddamn.
+mundotaku Governments do not look at everything purely though economics a lot of it is Hear and now. your about to face an election people are complaining about food prices, what do you do? invest in more renewable crops tech and promote mechanized farming or subsidize farmers to charge less? one could take years to see any result and you might lose the election and face your same proposal being stripped for a more politically expedience idea. or the other gives you quick votes and fullfills both voter happiness and makes farmers happier
Joseph Fox Joseph, the problem is that all prices are controlled and there is not enough money to subsidize food since gasoline is already subsidized (0.001 USD per gallon) also allfarms were taken over by the government and because they do not know about how to make a farm work, there is no food.
+mundotaku Venezuela is not a scary place. You are mixing economics with a myriad of other factors which can describe the beautifulness and-or scariness of a place. But why do I get the feeling you are Venezuelan haha :) in that case, or any other, you are entitled to describe it any way you want! happy day! Im just morning-coffee thinking out loud!
PacifistKraut actually the Mises institute would fall more in line with classical liberal belief. Are you familiar with Austrian economic theory, or are you just trolling?
Adrienne is so fun! I downloaded the CC on my phone, so I can listen to it while I'm commuting. Adrienne makes me laugh out loud in public places out of nowhere and look like a total weirdo. Thanks? Love you.
NINJA Loan stands for "No income..." not "No interest..." as the video states. No interest loans would be a lot more fun, mysterious, and deserving of the cool title. Great series! Thanks for making it!
no one ever realizes that if prices go up, your salary needs to go up by almost double the % of inflation due to the income taxes you pay on that raise. no employer ever cares to consider.
The highest USA tax bracket is currently 37%. Your statement becomes true at a 50% tax rate. At 37%, a wage increase would need to be 59% higher than inflation. That 37% bracket starts on income over $500K. If that applies to you, I think you'll be okay. At the 22% bracket (38-82K) you only need a wage increase 29% higher than inflation. That's a far cry from 'almost double'. All of these taxes only apply after the standard deduction, so add $12K to all of those numbers. The government doesn't even touch the first $12K this year.
+Alex Padilla Because that would insult the stupid kids in the class. OMG sorry, did I offend anyone by referring to young learning beings as "kids", we are all purple penguins now.
+Alex Padilla I'm sure some schools teach you how to save money because it is beneficial to you, but don't teach investment because it is not fundamental for survival, plus require prerequisite financial knowledge. With that said some Finance teachers might just teach their students how to invest wisely!
+Alex Padilla Cold War. The answer is too long to post about it, but in short during the Cold War US schools and later all western school system started to align itself with the ideology of the Cold War. That meant more focus on Science, standardized test and the ultimate goal of forming professionals. That is in theory. Schools were supposed to prepare the individual to a college, if not to a job in order to be more productive. That capitalist view worked during most of the Cold War, but as competition among capitalist nations rose up so did the cracks in this method. Of course as a marxist observer will point out one of the reasons they don't teach this to the mass as this can create a generation of investors. People who not only know the system, but can refuse to take part in it. They would argue that the less informed the worker is about this the better. After all he is supposed to work and consume. That is his purpose in life. pt.slideshare.net/par913/national-school-reform-the-early-cold-war-era
Anderson Andrighi You literally just started with the conclusion that marxism is correct, and then created a narrative for it. Marxism is a religious cult, and Karl Marx is their god.
College courses are reasonalbe easy to increase in quantity so it's unlikely that there will be a shortage, plus as an intangible good it's difficult to retrade College degrees in a way that would be needed to crash the bubble.
College debt surpasses credit card debt in the U.S. Many forms of student loans cannot be absolved with bankruptcy. Degrees from for profit universities are regarded as virtually worthless. The Apollo Group Education Group is currently under federal investigation for false promotions of their degrees, programs, and institutions. It's likely that there will soon be an excess of people with debt they can't pay off, provided it hasn't happened already.
thanks for putting this together. The difference between this and other "crash-course" attempts from other channels is that you throw in just enough knowledge to make good sense of it. Also, thanks for the speed, some other sources feel the faster they talk the smarter they sound. So, in brief, cool stuff :)
Yeah, in the real world that doesn't work. They can just hire someone else who's more desperate than you are. As they said, there's always 4-6% of the population who will be unemployed... Hence why we need to empower workers and end economic hierarchy, bring democracy to the workplace, and have worker ownership of companies. This would be known as worker co-ops. Something that is sadly never talked about in economics classes... or these videos.
For an example of a historical bubble that was much more prominent than the tulip bubble, check out the crash of the south sea company. Extra History did a series on it. Apparently, a company's stock prices go up if you nominate the King as its CEO.
This video reminds me of an issue that has made me frustrated lately. In California we got a minimum wage hike of 1.00 July 1, 2014. Quite promptly the price of everything I buy, plus rent in the area I live in went up. I think it more than nullified the raise. However, it seems. so many people are really excited about the next hike, and maybe even these really large hikes some people are pushing for. I thought seeing was believing? There is a robot that can do my job now, but presently my company is continuing to use the same meat bags that keep demanding more pay. UGH! Companies are never going to take a loss. When they pay you more they hike their prices and decrease their quality and no one benefits. I'm not a conservative... I've just been paying attention.
+GengoNoTabi so who's the bad guy here then? The guy who wants to put food on the table or the companies that wants to maintain their massive profits? what wrong with saying maybe they shouldn't be raising prices in response to a pay increase. what wrong with saying these big companies can afford to take a pay cut. hell, if they don't raise prices then the raises turn into buying power and the money goes back to the companies anyway.
+swingsetmafia If a company is raising their prices I can almost guarantee they are doing it because they have to to stay in business. If they raise their prices a competitor will just step in and steal their customers. Companies compete by offering value. ie walmart.
oh ok gotcha thank you for the response. So how did we get into this situation in the first place? how has it gotten to the point where inflation is increasing while wages stay stagnate? the argument against raising wages is that it will increase prices but the problem is that prices are rising anyway but wages are staying the same and people are able to afford less and less
+swingsetmafia Wages are going up, just at a rate that is roughly the same as the general rate of inflation. The only real means to increase wages faster than inflation is to grow inflation adjusted gdp, i.e. increasing productivity, as was covered in the previous episode of this show (iirc). Increased productivity acts in two ways, both increasing the financial product and thus worth of the employees as well as driving down the production costs of goods, resulting in cheaper goods and higher consumer purchasing power. Basically, this is why you see a lot of economists and economically minded individuals arguing for economic growth above all else, because it is the only real way to increase the overall standard of living once the fundamentals are covered. Really, if economic literacy was higher overall the only debate left would be how to achieve this growth and what the fundamentals which the market can't provide for might be.
Here is what I know.. My job increased prices by 20% after minimum wages went up by $1. Their reasoning was that the rising minimum wage forced labor hours to drop, and rather than firing people and slashing hours, they opted to increase prices.
Historical note. Prices go up over time; or at least they have over the past say 300 -400 years. Prior to that prices were fairly stable. Inflation is not inevitable and should not be presented as such. It is helpful in a modern economy to avoid deflation though, so small levels of inflation are net-net beneficial.
You guys should do a course for Statistics! (purely because there is no one out there who I think could make statistics interesting except for you and its friggin hard.)
Dude, if you don't think Hank would outbid John on a pizza just to prevent John getting a pizza, you haven't been paying attention. I mean, they're brothers.
What I can't understand about inflation is that it means : 1_ If all people have more dollars that is very bad because it will make things more expensive. So it is better that they have less dollars and be poor so they can't buy these things. I need someone to explain it to me. 2_ Abou bubbles, for me it looks normal that people get interested in something at sometime and after a while everything returns to normal. So what is different about it that makes it called bubble. For example , new things and new models have high price at the bigenning and then they become cheaper, it does not called a bubble. Why? And how would I know if our currency is going to inflate? What charts or data or sites I have to check?
As for the first one imagine it like this, Everyone in the U.S. gets 1 million dollars. You would think that everyone gets rich but instead what happens is 1 million becomes worthless since everyone has it. Its like that for collectors items also, its the scarcity that gives it value. If everyone had a super rare coin it is no longer rare and becomes worthless. Its like that for money also. Once everyone has more money it is then worth less than it was before because everyone has more of it so its no longer valuable. Its why in America some things are worth a couple dollars but in other countries you would need a lot more. Look at the Brazilian real to the American dollar about 5 American dollars are worth 20 Brazilian reals. Its because there are less U.S. dollars than there are Reals (also there are more things backing the U.S. dollar but thats a different discussion). If you want a more real life example look at Germany after WW1. When they needed to pay for the war they just printed money and caused hyper inflation that made their money so worthless it was better to burn it then to buy firewood.
Breezy Cruz Venezuela isn't socialist. Do the workers own the means of production? No, so it's not socialist. 90% of its economy is privatized and articles by slef-proclaimed intellectuals, pseuds who don't know the meaning of the word "socialism" won't change my mind.
I am happy that the disaster that is living my country Venezuela right now, can be used to teach everybody, now I hope we can also teach how to get out of this mess.
Dutch Tulip bubble is the largest market bubble? Really? I would have thought it would have been the South Sea company in the UK/England (can't remember if UK is an anachronism)
+Carson Troeh it's probably a case of measurement: The tulip bubble was probably the biggest when you look at the "real" value of a tulip vs its inflated value. It could be that the south sea company lost more value after its bubble burst, but it's relative inflation, based on an index, was less. Disclaimer: I'm not aware of the exact numbers for both bubbles, this is mostly just a speculation for an explanation and I could be totally wrong for what it's worth. Reading wikipedia as we speak :D
Tulips! I remember that from Extra Credits' Extra History episodes on the South Sea Bubble. (Which was another economic bubble, natch.) I feel educated.
+Alex Mueller Georgia here, Normal adult tickets 9, 8 for student, 7 for military/Senior/child, 6 on tuesday and before 2PM. I use to work for a movie theater, they had a different strat than other theaters through, they charged about cost for the tickets, most of the ticket cost went to the movie makers, I think we got 50 cents per ticket, most people dont realize that movie theaters make their money in popcorn, no seriously pop corn cost like 20 bucks for a 50 pound bag, we made at least 1000 dollars off each bag. with free refils
My grandpa actually won his apartment thanks to inflation! He took a loan right before a big inflation happened, which got smaller and smaller until he didn't have to pay to the bank anymore.
When talking about investment bubbles, special mention must go to the South Sea Company of the early 18th century. Little later than the Tulip bubble but probably bigger in its effect.
+GxrRoflstomp You're wrong on all counts. I've done my best to understand, on his own terms, Sanders' principles, positions, and policies. The man is delusional.
+GxrRoflstomp well, I think there is a serious question of will a 15 dollar minimum wage raise inflation. he also talks about "We must end our disastrous trade policies (NAFTA, CAFTA, PNTR with China, etc.)" which would hurt other nations and us because it would also raise prices. perceptually anything with electronics based in heavy metals (note Lithium) because well... the US doesnt really have too much any of those resources so anything that requires those elements will go up. he also is very vague ( 9. Taking on Wall Street) " The greed, recklessness and illegal behavior of major Wall Street firm plunged this country into the worst financial crisis since the 1930s.They are too powerful to be reformed. They must be broken up." thats a big call for something that isnt really explained... are we going to use anti trust laws? and then "We need to establish a Medicare-for-all, single-payer system" well thats just a call for socialized medicine, and im not criticizing the idea but it took Obama half his presidency just to get his healthcare pushed through and then "It is absurd that we lose over $100 billion a year in revenue because corporations and the wealthy stash their cash in offshore tax havensaround the world. The time is long overdue for real tax reform." im not quite sure what he is suggesting, is he wanting to ban off shore accounts? he has big ideas but a lack of words for those ideas, I would suggest being careful, its one thing for a person to promise something its another for a delivery, (www.sanders.senate.gov/agenda/) Just Look at Obama's promises www.huffingtonpost.com/entry/a-look-at-how-obama-is-keeping-up-with-his-2008-promises_55e09a0de4b0b7a96338ca2f its not that Obama lied. its simply unpredictable, yes republicans did put up resistance, but thats to be expected. cause when you in office you have to compromise, so Just Sanders says something, doesnt mean its going to happen.
Joseph Fox None of Sanders' supporters expect him to come close to fulfilling all his promises. That would be incredibly suspicious. But voting for someone that has the verifiable track record and willingness to pursue their stated goals is a lot better than voting for someone that's not genuine or worse, genuine but an asshole. Raising minimum wage in every state would not affect inflation noticeably, nor would it harm employment. I'm confident that you're open minded enough to research this yourself and come to the same conclusion Bernie's supporters have. Banks and insurance companies will be audited by the federal government and if they are found to be engaging in tax fraud or other illegal activities (price fixing), they will be fined and forced to comply. Likewise, trade partners that violate international laws or act as aggressors will face economic sanctions. All of these strategies are not only possible but have an established history of working. Bernie isn't perfect. He just looks that way compared to all our other choices.
well thats a real bummer. i sa the title in a tumbnail and was so sure this was about the inflation of the early universe and the symmetry bubble explanation.
*Main outtakes of this lesson*
1) _Purchasing power_ - the amount of physical goods and services that can be bought by a given amount of money.
a. _Consumer price index (CPI)_ - a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.
b. "Real" means that prices from the past has been _adjusted for inflation_. Nominal means a price from the past that _hasn't been adjusted for inflation_. So the highest "nominal" box office receipts list is quite different.
c. Since we have to keep the market basket constant over time, a traditional CPI won't adjust for either new products or increases in product quality.
2) _Inflation_ - an increase in a currency supply relative to the number of people using it, resulting in rising prices of goods and services over time.
a. _Demand pull inflation_ - too much money chasing too few goods.
3) _Bubbles_ - a market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset.
a. _Speculation_ - trading a financial instrument involving high risk, in expectation of significant returns.
You cost push inflation.
cost push inflation - increasing prices of goods and services leads to a decreased supply
Сергей Галиуллин thanks for comming back. 😀You help me a lot
Сергей Галиуллин Thank you
Сергей Галиуллин
Thanks dude!!
Crash Course, 4 years ago: The Venezuelan inflation rate has risen up to 70%!
Me, Now: oooh, you have no idea...
Thanks, US, UK, FR and other neocolonialist countries. =')
@@FernandoPereira88 thanks to socialism. That's the main reason. And if you can't see it, then I don't know what are you doing on economics.
Богдан Гончарук Exactly, basic logic.
How much is now?
All due to socialism. Socialism is hell.
This series is so underrated
+Ab Sir Yeah, it's the best comedy series I have ever heard. Not really good for econ though
BUD7H357UD We all hope your economic series will be better
I'm sure he will make great educational minecraft videos
Some notes if anyone needs em!
-Purchasing power is the amount of physical goods and services that can be bought by a given amount of money, and is measured by comparing the cost of identical “consumer baskets” through different years
-Consumer Price Index (CPI) is the current cost of a basket divided by a base year to show how much prices have changed
→ CPI = a statistical estimate constructed using the prices of a sample of representative items whose prices are calculated periodically
-CPI is not perfect as advances in technology change the baskets throughout the years
-Demand pull inflation = too much money chasing too few goods → consumers bidding up the price
-Cost push inflation (supply shock) → producers raising prices or producing less because of an increase in production costs
-Housing costs increased because of bubbles → in early 2000s low interest rates and deceitful lending practices encouraged more people to buy homes (and take out mortgages) and then as the prices skyrocketed, people bought more homes hoping the prices would keep going up → called speculation
-Speculation = trading a financial instrument involving high risk in expectation for significant return
-Ninja loans = loans to people with no income, no job, and no assets
"They would probably share the pizza. They're brothers!"
That is not my understanding of how brothers work.
you discust me
God! I am a Venezuelan, and now I understand a lot of what is happening with the economy of my country. I have to say that living under this economic condition is really hard, and sad. This series is so great, we all should learn economics, It is just so important. Thank you guys!
I'm a Mongolian and i like your examples of ...Mongols
I don't know if this has been fixed in later crash courses, but I would recommend homogenizing the volume across the video. Volume jumps around a lot between segments (thought bubble, when Adriene talks, when Jacob talks, etc.). I find myself juggling between cranking up the volume (like around 6:15) and lowering it when it suddenly jumps up higher than ever (like around 9:35).
THIS
Except yeah, same, I came here late so I presume the later epsiodes have compressed audio :D
I think this is intentional. Monotonous volume level usually leads to lower attention span. It wasn't difficult for me to adjust the volume to a level where I'm okay with the volume jumps.
thanks...somebody has to tell it!
why isn't mongol pizza the exception to inflation?
+Evan B. Because it is delicious.
+Evan B. It looks like they were exceptionally susceptible to both kinds of inflation.
+Evan B. Pizza isn't affected by inflation. The fact that mongol pizza is affected, is the exception ;)
+Field Marshal Fry Yeah dude, Mongols will kill us all (with their 200K population)! -_-
Martin Malinov
people doubted Genghis Khan...
Incredible. I've been in economics courses and have read entire books on economics but no source has broken things down and explained it as intelligibly and impressively as you guys. Job well done. Please don't stop making these!!
Wait, Thought Bubble is a bubble? Do I risk economic collapse by watching all these videos?
😂😂😂
Yes...
Just don’t think about it and it’ll be fine.
what I think is missing here are the effects of deflation and why most countries aim for a 2% inflation rate
One of the best channels on youtube...
+Umberto Gobbi Was one of the best. The bros were the ones that made at great.
+BannerWolf the astronomy host is the best host by far dude
+Kieran Black agreed. love that series.
Too bad my pants can't be adjusted for inflation.
I completely agree
Joe Young why is this not more liked?!
Most underrated comment
I like how you tailor the message of supporting the course at the end according to the topic you just discuss. thank you
I've watched nearly every video these guys have and honestly it helps! I'm working on my GED as of now and they helped me get higher scores so I for one have to thank you crash course for helping me
And now here we are. 2022. The bubble is preparing to burst. Any time soon
When I saw the blue line on the graphic that said Venezuela I was like "oh no, this is gonna be bad", I was not disappointed. Though I did start watching this so I could understand my country's economy, so the example was perfect for me. Greetings from Venezuela guys!!
Kind of surprised there aren't more comments from this year. Inflation is crazy right now!
Cool video and very informative, but you have audio normalisation issues. Sometimes your voices would be so low I'd have to up my volume, only for a cut to the other presenter to be incredibly loud making me push my speakers back down.
>buying neutral milk hotel tickets
>people cheering and fists pumping in the air
what
+therealquade www.clickhole.com/article/disgusting-isis-just-released-2-star-review-aeropl-2620
Jorg Albornoz the toppest of keks my friend. Also, I actually like ITAOTS, but the only people I've ever heard talk about it are /mu/ and anthony fantano, which is why I'm surprised
Kade Hernandez what, because I like ITAOTS?
***** Seriously? not semen stains the mountain tops?
but for real though, some of those lyrics,
"and in the dark we will take off our clothes, and there'll be lacing fingers through the notches in your spine, and when all is breaking, everything that you could keep inside, now your eyes ain't movin' now, they just lay their in their climb."
just, goddamn.
+therealquade /starts moshing at NMH show
Inflation is the invisible tax.
... that we levy on each other, apparently.
Venezuela is a scary place. People at all level do not have any knowledge of economics.
+mundotaku Thats sadly due in part to the oppressive government.
+mundotaku Governments do not look at everything purely though economics a lot of it is Hear and now. your about to face an election people are complaining about food prices, what do you do? invest in more renewable crops tech and promote mechanized farming or subsidize farmers to charge less? one could take years to see any result and you might lose the election and face your same proposal being stripped for a more politically expedience idea. or the other gives you quick votes and fullfills both voter happiness and makes farmers happier
Joseph Fox Joseph, the problem is that all prices are controlled and there is not enough money to subsidize food since gasoline is already subsidized (0.001 USD per gallon) also allfarms were taken over by the government and because they do not know about how to make a farm work, there is no food.
mundotaku no no I was giving a hypothetical
+mundotaku Venezuela is not a scary place. You are mixing economics with a myriad of other factors which can describe the beautifulness and-or scariness of a place. But why do I get the feeling you are Venezuelan haha :) in that case, or any other, you are entitled to describe it any way you want! happy day! Im just morning-coffee thinking out loud!
respect for the Neutral Milk Hotel Reference
This videos are great, however can you put some sources so we can deepen the research??
+duplo93pc mises.org/library/books?book_type=539&book_type=539&title=All&title=All&author=All&topic=21&austrian_school=All&level=All
+joe king Oh god here comes the ancap spamming their stupid pseudo economics books
PacifistKraut
actually the Mises institute would fall more in line with classical liberal belief. Are you familiar with Austrian economic theory, or are you just trolling?
joe king
I'm familiar. It's all bullshit though
PacifistKraut
I'm curious though, what about it do you find to be an inaccurate model for understanding economics?
Adrienne is so fun! I downloaded the CC on my phone, so I can listen to it while I'm commuting. Adrienne makes me laugh out loud in public places out of nowhere and look like a total weirdo. Thanks? Love you.
8 dollars for a movie?! More like 12-16
A ticket at Cinemark theaters costs 9 dollars, and a matinee ticket is 7.50
Movie tickets in the Philippines only cost about 3-4 USD. Prices in the west blow my mind.
+E.T. It's around 8.9 dollars where I come from... Weekend shows have higher prices though.
+E.T. it costs around 5 dollars in my country
Adult tickets are usually $12.50
NINJA Loan stands for "No income..." not "No interest..." as the video states. No interest loans would be a lot more fun, mysterious, and deserving of the cool title. Great series! Thanks for making it!
where are the Green brothers?
we are here for the Mr Greens
+matt lam They don't host this series.
John Green does
and sometimes we do see Hank too
+matt lam Hank is on A&P. John's working on his Lego Wookie gunship with Henry.
matt lam Not the Economics series.
***** O... ya...
econ series is Craig's....
still i want craig more than these two highschool teachers who talk like as if we are preschoolers
no one ever realizes that if prices go up, your salary needs to go up by almost double the % of inflation due to the income taxes you pay on that raise. no employer ever cares to consider.
The highest USA tax bracket is currently 37%. Your statement becomes true at a 50% tax rate. At 37%, a wage increase would need to be 59% higher than inflation.
That 37% bracket starts on income over $500K. If that applies to you, I think you'll be okay.
At the 22% bracket (38-82K) you only need a wage increase 29% higher than inflation. That's a far cry from 'almost double'.
All of these taxes only apply after the standard deduction, so add $12K to all of those numbers. The government doesn't even touch the first $12K this year.
How come schools don't teach how to invest and save money?
+Alex Padilla Because that would insult the stupid kids in the class. OMG sorry, did I offend anyone by referring to young learning beings as "kids", we are all purple penguins now.
+Alex Padilla I'm sure some schools teach you how to save money because it is beneficial to you, but don't teach investment because it is not fundamental for survival, plus require prerequisite financial knowledge. With that said some Finance teachers might just teach their students how to invest wisely!
+Alex Padilla Cold War. The answer is too long to post about it, but in short during the Cold War US schools and later all western school system started to align itself with the ideology of the Cold War. That meant more focus on Science, standardized test and the ultimate goal of forming professionals. That is in theory.
Schools were supposed to prepare the individual to a college, if not to a job in order to be more productive. That capitalist view worked during most of the Cold War, but as competition among capitalist nations rose up so did the cracks in this method.
Of course as a marxist observer will point out one of the reasons they don't teach this to the mass as this can create a generation of investors. People who not only know the system, but can refuse to take part in it. They would argue that the less informed the worker is about this the better. After all he is supposed to work and consume. That is his purpose in life.
pt.slideshare.net/par913/national-school-reform-the-early-cold-war-era
Anderson Andrighi You literally just started with the conclusion that marxism is correct, and then created a narrative for it. Marxism is a religious cult, and Karl Marx is their god.
+Alex Padilla Oh they do, they just made it elective :P
"Oh, that's a bad idea" (printing money)
Well, guess you did not see that coming, uncle Sam.....
Massive audio gain rise on 09:35. Took me by surprise.
To say that the CPI index is 'not perfect' is putting it very very lightly. Grade it.
So is there going to be College bubble?
+Jacob Ferreira Many already say there is a college bubble.(Peter schiff, Tom Woods, many others)
also, we seem to be in an auto Loan bubble.
+Jacob Ferreira College loan, for profit universities, or both?
Bot.
College courses are reasonalbe easy to increase in quantity so it's unlikely that there will be a shortage, plus as an intangible good it's difficult to retrade College degrees in a way that would be needed to crash the bubble.
College debt surpasses credit card debt in the U.S. Many forms of student loans cannot be absolved with bankruptcy. Degrees from for profit universities are regarded as virtually worthless. The Apollo Group Education Group is currently under federal investigation for false promotions of their degrees, programs, and institutions. It's likely that there will soon be an excess of people with debt they can't pay off, provided it hasn't happened already.
thanks for putting this together. The difference between this and other "crash-course" attempts from other channels is that you throw in just enough knowledge to make good sense of it. Also, thanks for the speed, some other sources feel the faster they talk the smarter they sound. So, in brief, cool stuff :)
neutral milk hotel > everything else
Is 2022 um still here listening to this amazing channel
YAY CRASH COURSE! ECONOMICS
you guys are so entertaining. Thank you so much for making this beautiful course
Correction: N.I.N.J.A. stands for No INCOME, No Job, and no Assets.
Bubbles were always my favourite case studies. Easy to remembers and there's one for any situation.
"Negotiate with your boss" AHAHAHAHAHAHAHA
Yeah, in the real world that doesn't work. They can just hire someone else who's more desperate than you are. As they said, there's always 4-6% of the population who will be unemployed...
Hence why we need to empower workers and end economic hierarchy, bring democracy to the workplace, and have worker ownership of companies. This would be known as worker co-ops. Something that is sadly never talked about in economics classes... or these videos.
For an example of a historical bubble that was much more prominent than the tulip bubble, check out the crash of the south sea company. Extra History did a series on it. Apparently, a company's stock prices go up if you nominate the King as its CEO.
This video reminds me of an issue that has made me frustrated lately. In California we got a minimum wage hike of 1.00 July 1, 2014. Quite promptly the price of everything I buy, plus rent in the area I live in went up. I think it more than nullified the raise. However, it seems. so many people are really excited about the next hike, and maybe even these really large hikes some people are pushing for. I thought seeing was believing? There is a robot that can do my job now, but presently my company is continuing to use the same meat bags that keep demanding more pay. UGH! Companies are never going to take a loss. When they pay you more they hike their prices and decrease their quality and no one benefits. I'm not a conservative... I've just been paying attention.
+GengoNoTabi so who's the bad guy here then? The guy who wants to put food on the table or the companies that wants to maintain their massive profits? what wrong with saying maybe they shouldn't be raising prices in response to a pay increase. what wrong with saying these big companies can afford to take a pay cut. hell, if they don't raise prices then the raises turn into buying power and the money goes back to the companies anyway.
+swingsetmafia If a company is raising their prices I can almost guarantee they are doing it because they have to to stay in business. If they raise their prices a competitor will just step in and steal their customers. Companies compete by offering value. ie walmart.
oh ok gotcha thank you for the response. So how did we get into this situation in the first place? how has it gotten to the point where inflation is increasing while wages stay stagnate? the argument against raising wages is that it will increase prices but the problem is that prices are rising anyway but wages are staying the same and people are able to afford less and less
+swingsetmafia Wages are going up, just at a rate that is roughly the same as the general rate of inflation. The only real means to increase wages faster than inflation is to grow inflation adjusted gdp, i.e. increasing productivity, as was covered in the previous episode of this show (iirc). Increased productivity acts in two ways, both increasing the financial product and thus worth of the employees as well as driving down the production costs of goods, resulting in cheaper goods and higher consumer purchasing power.
Basically, this is why you see a lot of economists and economically minded individuals arguing for economic growth above all else, because it is the only real way to increase the overall standard of living once the fundamentals are covered. Really, if economic literacy was higher overall the only debate left would be how to achieve this growth and what the fundamentals which the market can't provide for might be.
Here is what I know..
My job increased prices by 20% after minimum wages went up by $1. Their reasoning was that the rising minimum wage forced labor hours to drop, and rather than firing people and slashing hours, they opted to increase prices.
So Helpful and Funny! Great way of Understanding this topic.
Historical note. Prices go up over time; or at least they have over the past say 300 -400 years. Prior to that prices were fairly stable. Inflation is not inevitable and should not be presented as such. It is helpful in a modern economy to avoid deflation though, so small levels of inflation are net-net beneficial.
Remarkable how connected these varied connections really are.
Hmm Tulip Mania. Sounds a lot like Bitcoin to me!
buying and selling bitcoin is not profitable anymore
ashley beaumont Exactly.
If only people realized how ridiculous is speculating with a currency... It's much better to simply use it as a currency.
+TheBreezyTrousers 1 bitcoin for around 233 USD...waiting on the inevitable bitcoin crash.
InkBlackShadow Down from over $1000. That definitely sounds like a crash to me.
"The average price of a movie ticket in the US is $8...me here in 2022 like sure lol
Audio issues. Good info. Thanks!
You guys should do a course for Statistics! (purely because there is no one out there who I think could make statistics interesting except for you and its friggin hard.)
I recommend watching extra histories series on the South Sea Bubble.
Just stumbled on the channel and this episode is super relevant in 2023.
as an economist i love how simple you explain it, but you forgot to mention the velocity of transactions as a cause of inflation😁
I was reading my text book for macroeconomics, and realized it wasn't making sense. Came to crash course and learned WAYYYYY more
Pffff! Raises! Lol! Might as well ask for an invisible pink unicorn.
+Meep “the” Changeling. Or asking to get fired.
Money printer goes brrrrr
i love this series
Thank you crash course for having economics as a main subject, and thank you for getting Mr. Clifford lol
Dude, if you don't think Hank would outbid John on a pizza just to prevent John getting a pizza, you haven't been paying attention. I mean, they're brothers.
10/10 for mentioning Neutral Milk Hotel.
3:53 Why is the Queen working on a typewriter?
Liked because they mentioned NMH
What I can't understand about inflation is that it means :
1_ If all people have more dollars that is very bad because it will make things more expensive. So it is better that they have less dollars and be poor so they can't buy these things.
I need someone to explain it to me.
2_ Abou bubbles, for me it looks normal that people get interested in something at sometime and after a while everything returns to normal. So what is different about it that makes it called bubble. For example , new things and new models have high price at the bigenning and then they become cheaper, it does not called a bubble. Why?
And how would I know if our currency is going to inflate? What charts or data or sites I have to check?
As for the first one imagine it like this, Everyone in the U.S. gets 1 million dollars. You would think that everyone gets rich but instead what happens is 1 million becomes worthless since everyone has it. Its like that for collectors items also, its the scarcity that gives it value. If everyone had a super rare coin it is no longer rare and becomes worthless. Its like that for money also. Once everyone has more money it is then worth less than it was before because everyone has more of it so its no longer valuable. Its why in America some things are worth a couple dollars but in other countries you would need a lot more. Look at the Brazilian real to the American dollar about 5 American dollars are worth 20 Brazilian reals. Its because there are less U.S. dollars than there are Reals (also there are more things backing the U.S. dollar but thats a different discussion). If you want a more real life example look at Germany after WW1. When they needed to pay for the war they just printed money and caused hyper inflation that made their money so worthless it was better to burn it then to buy firewood.
Thanks for this Wonderful Course Team!
with love from venezuela
I'm really sorry about how you are paying the instability of capitalism with your own lives
What? Venezuela doesn't have capitalism, they have socialism and price controls that created the instability.
Venezuela is capitalist ChopperSakura
Cloven viscount Venezuela is in fact socialist. All it takes is a simple Google search and you would have found this.
Breezy Cruz Venezuela isn't socialist. Do the workers own the means of production? No, so it's not socialist. 90% of its economy is privatized and articles by slef-proclaimed intellectuals, pseuds who don't know the meaning of the word "socialism" won't change my mind.
At least this is economics and not fashion we're learning from these guys
Mongol Pizza... Exceptional Pizza.
I am happy that the disaster that is living my country Venezuela right now, can be used to teach everybody, now I hope we can also teach how to get out of this mess.
Dutch Tulip bubble is the largest market bubble? Really? I would have thought it would have been the South Sea company in the UK/England (can't remember if UK is an anachronism)
+Carson Troeh england and scotland became uk during the bubble from what i remember
+Carson Troeh it's probably a case of measurement: The tulip bubble was probably the biggest when you look at the "real" value of a tulip vs its inflated value. It could be that the south sea company lost more value after its bubble burst, but it's relative inflation, based on an index, was less.
Disclaimer: I'm not aware of the exact numbers for both bubbles, this is mostly just a speculation for an explanation and I could be totally wrong for what it's worth. Reading wikipedia as we speak :D
Strikie That makes a lot of sense,
Tulips! I remember that from Extra Credits' Extra History episodes on the South Sea Bubble. (Which was another economic bubble, natch.)
I feel educated.
8 dollars for a movie ticket??? Where are you getting your tickets???
+Alex Mueller Georgia here, Normal adult tickets 9, 8 for student, 7 for military/Senior/child, 6 on tuesday and before 2PM. I use to work for a movie theater, they had a different strat than other theaters through, they charged about cost for the tickets, most of the ticket cost went to the movie makers, I think we got 50 cents per ticket, most people dont realize that movie theaters make their money in popcorn, no seriously pop corn cost like 20 bucks for a 50 pound bag, we made at least 1000 dollars off each bag. with free refils
+Alex Mueller In Canada its well over $10....
+RadyoMusic don't goods in Canada generally cost a bit more anyway?
I pay 12$, 16$ for 3D (i never go see 3D)
Maria Osorio Yeah I suppose you are right lol
8:11 Gray Fox
"your 40in flat screen."
Lol, newb.
My grandpa actually won his apartment thanks to inflation! He took a loan right before a big inflation happened, which got smaller and smaller until he didn't have to pay to the bank anymore.
Was anyone else moving their head along with the inflation line graph of venezuela? Only me?...ok ill leave...
Hi Adriene! I heard you hosting Marketplace earlier this week. It was awesome!
+Qermaq 9:35 did you go to the bathroom? ;)
Why these people upload so late?
+Luckybawdy It's all relative. It's quarter to 3am over here.
Roberta Tallienne Oh my!
Roberta Tallienne it's 8:51 PM in the cayman islands
Then thou shouldst not complain thy fate.
Ever heard of time zones? You don't life in the centre of the world... Probably. Maybe you do though idk
When talking about investment bubbles, special mention must go to the South Sea Company of the early 18th century. Little later than the Tulip bubble but probably bigger in its effect.
Stan is such a hipster.
Please add this episode to the playlist. Thanks
WHAT is up with this channel's obsession with the Mongols.
If only every economics lesson was like this
We can be certain that Bernie Sanders supporters are not watching these videos.
+GxrRoflstomp You're wrong on all counts. I've done my best to understand, on his own terms, Sanders' principles, positions, and policies. The man is delusional.
+Kelcey Knoernschild troll
+GxrRoflstomp well, I think there is a serious question of will a 15 dollar minimum wage raise inflation. he also talks about "We must end our disastrous trade policies (NAFTA, CAFTA, PNTR with China, etc.)" which would hurt other nations and us because it would also raise prices. perceptually anything with electronics based in heavy metals (note Lithium) because well... the US doesnt really have too much any of those resources so anything that requires those elements will go up. he also is very vague ( 9. Taking on Wall Street) " The greed, recklessness and illegal behavior of major Wall Street firm plunged this country into the worst financial crisis since the 1930s.They are too powerful to be reformed. They must be broken up." thats a big call for something that isnt really explained... are we going to use anti trust laws? and then "We need to establish a Medicare-for-all, single-payer system" well thats just a call for socialized medicine, and im not criticizing the idea but it took Obama half his presidency just to get his healthcare pushed through and then "It is absurd that we lose over $100 billion a year in revenue because corporations and the wealthy stash their cash in offshore tax havensaround the world. The time is long overdue for real tax reform." im not quite sure what he is suggesting, is he wanting to ban off shore accounts?
he has big ideas but a lack of words for those ideas, I would suggest being careful, its one thing for a person to promise something its another for a delivery, (www.sanders.senate.gov/agenda/)
Just Look at Obama's promises www.huffingtonpost.com/entry/a-look-at-how-obama-is-keeping-up-with-his-2008-promises_55e09a0de4b0b7a96338ca2f
its not that Obama lied. its simply unpredictable, yes republicans did put up resistance, but thats to be expected. cause when you in office you have to compromise, so Just Sanders says something, doesnt mean its going to happen.
Joseph Fox None of Sanders' supporters expect him to come close to fulfilling all his promises. That would be incredibly suspicious. But voting for someone that has the verifiable track record and willingness to pursue their stated goals is a lot better than voting for someone that's not genuine or worse, genuine but an asshole.
Raising minimum wage in every state would not affect inflation noticeably, nor would it harm employment. I'm confident that you're open minded enough to research this yourself and come to the same conclusion Bernie's supporters have.
Banks and insurance companies will be audited by the federal government and if they are found to be engaging in tax fraud or other illegal activities (price fixing), they will be fined and forced to comply. Likewise, trade partners that violate international laws or act as aggressors will face economic sanctions. All of these strategies are not only possible but have an established history of working.
Bernie isn't perfect. He just looks that way compared to all our other choices.
Titty Mcgee Except his explicitly stated goal is to destroy American enterprise.
well thats a real bummer. i sa the title in a tumbnail and was so sure this was about the inflation of the early universe and the symmetry bubble explanation.
Isn't NINJA no INCOME no jobs no assets
the opening joke was actually really funny today!
"Irrational exuberance" made me irrationally exuberant.
Always with the Mongols, John and Hank!
Haha! Greatest bubble of all - Thought Bubble 😂🙌
1:40 an irrrrational exuberance
Ground zero for the real estate bubble was Lee County, FL.
The Big Short movie actually makes sense now because a "bubble" was explained - thanks!
Wow, you guys putting GRAY FUCKING FOX into an animation made this show 1 metric infinity times cooler.
$8 is the average movie ticket price? mmmm... gotta have a talk with my local movie theater
I love this course
Thank you
this one is not in the economics playlist. Can you please add it there. I almost missed it. Others watching the playlist might miss it too. Thanks.
Gone with the wind is also a very very good movie