@Kirk Wolfe - Indie Music yeah yeah, whatever , China tries to become rich by slaves and colonization too. Taiwan, South Korea, Japan, Singapore, Hongkong, Australia, New Zealand, Canada, North European countries,.... are all rich because of what ?
"The Soviet Union also included East Germany in addition to 14 other member states" - East Germany was part of Warsaw pact, it had never been one of 15 USSR members.
De jure yes, but de facto no. The USSR was a one sided construct to the economic and political benefit of Russia in the end (post Stalin there was a short period where it was different, but this can be ignored). So you can consider the Warsaw Pact states as part of the USSR. They were even called satellite states during the Cold War.
I'd argue that part of why the Soviet collapse didn't affect the global economy is that much of the raw materials it was producing no longer was going to domestic industries. Instead it found its way to international markets which suddenly had a cheep source for these raw materials.
Yes, few people realise the decolonization of Africa at the same time the Soviet Union collapsed resulted in a power vacuum not only in Russia and its eastern bloc nations but also throughout Africa. The newly independent ex-Soviet nations then liquidated all their weapons stockpiles by selling them to Africa. This is why the national flag of Angola has an Soviet AK-47 on it. In many ways WWIII did happen but it was Africa-centric and Europeans only acted as suppliers of the weapons. Remember the genocides and famines in Rwanda, Somalia, Biafra, just to name a few. But this stull isn't taught in Western schools.
@@yucateco14 economics explained is so biased towards the west, the man really makes china look like a villain for some reason, all of his explanations are modelled on the American capitalist method
The reason why the Soviet collapse didn’t have negative effects on the global economy was because their economy wasn’t globalized and cheap raw materials were dumped into international markets. A country like China is way more globalized and interconnected with the world at large.
Kind of an interesting counterpoint to what I was thinking (they continued to exist and therefore produce and consume). Wonder if part of the increase in global GDP was partly because they continued to exist and participate despite the turmoil (my basic theory), but now integrated the result was they showed up properly in statistics only focused on $.
There was a recent discovery involving magnetizing metals that will make rare earth elements no longer needed. This was from Argonne National Lab and MIT.
It's now time to unhinge and rethink globalization with other states. There are other options like southeast Asia. Why the world is strictly beholden to China, I will never truly understand.
This is only slightly true. China as a whole is a mass importer of raw materials and vast exporter of goods - consumer and luxury goods. Look around the world. Most countries are all suffering inflationary pressures and will be for years to come. This means consumer good imports will drop massively. Making the "need" for China's manufacturing less important. Infact over the last 10 years many companys and countries have already moved away from Chinese manufacturing. Now many of the goods that used to be made in China are now made in Thailand, India, Bangladesh, Turkey, and many other countries. The world has been decoupling from China "single source" for a while now. So a reduction or a collapse of Chinas economy is not as drastic for the rest of the world as people make out. Its bad for them, for sure, because their economy is so tied to the worlds consumerism, but that is now rapidly reducing (recent Chinese reports put exports down over 50% YoY). This will impact resource countries like Australia, and some of the South American nations. The reduction in the need for raw materials will hit these countries economies hard. But as mentioned, they are going through inflationary issues anyway, so economic recession is happening anyway.
4:42 the Soviet Union did not include its Germany, it was part of the eastern bloc of Warsaw Pact Soviet Satellite states, but it was not “part of the Soviet Union”
Yes. I see very often that people mistake USSR for the group of countries USSR led: the Eastern Block. They also mistake the Warsaw Pact with both. USSR was a country. Warsaw Pact was a military alliance of USSR and its allies. And the Eastern block was the group of countries living under communist doctrine and cooperating economically. Post-soviet is not the same as post-communist.
In late 1777, Adam Smith received news of General Burgoyne's defeat at Saratoga, promising calamity for Britain's war effort in America. His correspondent expressed deep concern that the nation was ruined. "There is a great deal of ruin in a nation", was the great economist's calm reply.
Yes. I see very often that people mistake USSR for the group of countries USSR led: the Eastern Block. They also mistake the Warsaw Pact with both. USSR was a country. Warsaw Pact was a military alliance of USSR and its allies. And the Eastern block was the group of countries living under communist doctrine and cooperating economically. Post-soviet is not the same as post-communist.
After a horrendous 2022, shell-stunned financial backers have misfortunes to recover and a lot to consider, as an expansion report and a pile of different information did close to nothing to change assumptions that the Central bank would probably keep climbing interest rates regardless of whether the economy dials back, And that implies more red ink for portfolios for the principal quarter of year 2023. How might I benefit from the ongoing unstable market, I'm currently at a junction choosing if to exchange my $250k security/stock portfolio.
Centre around two key targets. In the first place, remain safeguarded by realising when to offer stocks to cut misfortunes and catch benefits. Second, get ready to benefit when the market turns around. I suggest you look for the direction a representative or monetary consultant.
@@obodoaghahenry9297 In-fact, ever since coronavirus I've been in regular conversation with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.
@Mark George She is Julie Anne Hoover, my consultant. Since then, she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the chief online, on the off chance that you're interested. I made no regrets about substantially adhering to their exchange strategy.
East Germany wasn't a part of the Soviet Union, it was a Warsaw Pact nation. While they were extremely close ideologically, politically, economically, and socially to say that the DDR was part of the Soviet Union is like saying Canada and the USA are the same country because both are in NATO and NAFTA.
@@bharatkapoor4062 I mean, all things considered? Sure, I guess. There can be no Socialism while Capitalism is still in place. This is true at least not at a global scale, local attempts at socialism have been successful. That's been the plan of socialist movements from the early 20th century onwards: global Socialism, leading to what Marx described as an eventual stateless Communism. The Soviet Union never claimed to be a communist nation and the PRC doesn't claim to be one today... both state that they are part of a larger global movement towards communism that's in its early stages which are, but not completely, socialist in nature. Make sense?
@@Robert0Pirie no i am seeing things from a normal man where income inequality is huge for that reason poor people need free Healthcare free education cheap public transport
@@bharatkapoor4062 oh, well then yes. Democratic Socialism or even just Social Democracy are both better systems of politics and economics than our current Neoliberal Corporate Capitalism.
Yes. I see very often that people mistake USSR for thegroup of countries USSR led: the Eastern Block. They also mistake the Warsaw Pact with both. USSR was a country. Warsaw Pact was a military alliance of USSR and its allies. And the Eastern block was the group of countries living under communist doctrine and cooperating economically. Post-soviet is not the same as post-communist.
I love how you have so many false facts in this video but never point them out even when corrected, like the fact that you mislead people about the warzarpact and the soviet sattalite states@@EconomicsExplained
I know he's already got at least one video in that vein, at least regarding age demographics. It's called "Young Generations Are Now Poorer Than Their Parents And It's Changing Our Economy"
@@bdlbug6 I've seen that episode and its good. But I would like a forward looking one. The Institute for Health Metrics and Evaluation at the University of Washington is projecting global fertility rates (yes I do mean global) to be below replacement by 2050 and at around 1.5 by 2100. Not all demographers are forecasting the same but the above is still a reputable source and (at least based on that source) it would imply that humanities days are numbered just based on the fact that people do not wish to keep having (enough) kids. Obviously anything like that is very far in the future but as far as I've seen nothing any country with below replacement fertility has done has brought fertility rates back up to replacement.
@@ZelenaZmija Demographics may become a sizeable problem, unless handled with exceptional governance. All of the well-developed countries have fertility rates well below the replacement rate. Most of these have wellfare systems that will likely prove to be hard to uphold in the next few decades. Far too many elderly people that are no longer adding value and too few working people paying for their pensions. You're probably familiar with these basics, given your interest (consider it context for those who are not). However, I do believe it's not a lost cause, but only if those countries find ways to systematically decrease their median age. Luckily, there are plenty of volunteers that would prefer to escape their country and migrate to the generally prosperous west. But just as clearly, this is a delicate matter. Older migrants won't help, working age migrants are unlikely to be productive in prosperous countries. It is young people that the west needs, so that they can still complete education that sets them up for success in that particular context. That's still significant investment and raises difficult ethical questions, why one, and not the other. And also, why are these new people paying so much text for these old folks that they have no relation to. I think mess is unavoidable, but tragedy for "the west" is optional. Just a few thoughts of mine. What do you think? I'm curious to EE's perspective, but just as curious to see yours or someone else's perspective on this matter (it also concerns me, quite a bit).
@@mr-boo Appreciate your reply. I think what you've outlined is a general solution for wealthier countries, or "the west", that could work at least in our life times. However, I would emphasize that "the west" is not only one facing declining birth rates. The majority of Central and South America are at below replacement fertility, all of Eastern Europe is, India is currently at replacement rate fertility but that's just where they are at currently, the trendline for India is still going downward and suggests they'll be below replacement in the coming years, and China's fertility rate is well below replacement as well. The only region that still has high fertility is Africa but it is also dropping as they develop, and may drop more rapidly than other countries who have experienced falling birthrates. Just my opinion but I think too many countries will need immigrants, and many nations who typically send away people will make the process of trying to leave exceptionally difficult because they themselves need to keep what people they have. Furthermore, immigrants match the fertility rate of host country, if not immediately then within one generation. I do not see any clear solution, though frankly I just like observing the trends from a mechanistic perspective. If we've built a world where people either cannot procreate or do not wish to then it is what is.
I view it like kicking the leg out from a table with the smaller global economies on top. No matter how it shakes out, it will disturb the rest of the table or destabilize it.
*4:40 This is completely false, the Soviet figures count the figures of the countries IN the soviet union (Ukraine, Russia, Kazakstan ect), but NOT countries in the Warsaw Pact (Poland, East Germany, Romania ect) Saying the Soviet Union's figures "included east Germany" because of the Warsaw pact is as silly as increasing US gdp by 3 trillion because France is in NATO (I'm not saying this was out of dishonesty, just a mistake or misconception)
Yes. I see very often that people mistake USSR for the group of countries USSR led: the Eastern Block. They also mistake the Warsaw Pact with both. USSR was a country. Warsaw Pact was a military alliance of USSR and its allies. And the Eastern block was the group of countries living under communist doctrine and cooperating economically. Post-soviet is not the same as post-communist.
If China falls, it would take a very long time to get production going on home turf so it would have to be done gradually. That is why if China collapses, it will be a disaster for the rest of the world as well. I have not mentioned all the rare earths that China has that the rest of the world is dependent on as well.
That would not happen. If China collapses randomly then a short period would see companies come back home for a short while.But most companies would move eventually to other countries like Mexico, Malaysia, Vietnam, Bangladesh, India, Pakistan, South Korea, and maybe Japan ,Egypt and Turkey.
Nobody is desperate enough in the west to work in a factory. You have been told your entire life . If you don't try hard at school you will end up working in a factory. That thinking is strong even for myself. I just took a job as a carpenter but in a factory. I nearly turned it down. Same work as I do on site but in a factory with the same pay . They can't get people. It's the stigma. It is ok to be a tradesmen but not a factory worker . People's ego can't take being that low social status.
@@avancalledrupert5130 a bit true, however the West is pretty well at increasing productivity - especially if under pressure. This adaptibility due several layers of freedom is what gives it the edge.. It's just that engineers will have to re-learn well forgotten things and we will have a bad recession.
@@daxasd3270we don't have enough tradesmen as it is. There's like 3 job vacancies for every tradesmen All my friends and family are in those fields. They all pay more than all but the top 10% of whit collar jobs but still nobody wants to do it . I've offered people working retail on minimum wage chances to learn construction skills. Instantly £3 or £4 than they make with chance to double it in a year . They still won't . Plus gen z is untraceable. I've been given them as apprentices . It's like mate I can teach you carpentry. I can't teach you how to use your own body . You should know that all ready.
Were. We are entering an age of deglobalization. We realize we can't change country by commerce and it's a bad idea to rely too much on other countries.
@@poojancharadva5634 you've missed the point. Dependence is not a means unto its own. The reason why dependence is bad is because there is cultural significance to independence.
You can see that the Soviet economy fell before the fall of the Soviet Union in a video called "Top 10 European Countries by GDP (1897-2022)". It was an epic economic collapse.
what you would need to minimise the effects of China's manufacturing having a major decline (It's unlikely for it to just stop producing things) is to either impose a self-sanction to limit how much they rely on the nation but to stop relying on China entirely isn't easily possible or justifiable unless China does something extremely denounced
China's "manufacturing" is sinking. Most foreign companies and a lot of chinese companies are relocating to places like vietnam, india and others. by the time that china totally collapses the global economy will have moved on and the impact won't be that great. and because the chinese government went to great lengths to keep imports to a minimum, the drop in consumption is minimal. China is done. nothing can bring it back.
Imagine the largest industrialized economy collapsing. That also means other economies are also collapsing and not buying manufactured goods. This is a doomed scenario that nobody wins.
USSR collapse was not felt in US and Europe but it was disastrous for many countries in South America, Africa, and South & East Asia. In terms of unlikely China collapse, the EU and USA would not have much impact because the imports would from China will be taken over by the rest of the world, and Exports to China will not impact the EU and USA much.
The USSR made a much smaller percentage of the world economy then than China does today That actually shown that the containment approach did work long term and that china gotten larger influence because we didn’t do it in fact we welcomed it with open arms for decades
Just look at supply chain disruption from COVID and the impacts that had on businesses in Europe and the states, in a globalized world where companies are interconnected it'd create a huge shock , give it a year or two and things would smooth out again..
@@eastcorkcheeses6448 If anything, Covid showed us that fragile, single point of failure, "at time of need" supply chains are dangerous to the point of being a national security risk. The solution isn't to walk on eggshells trying to avoid rocking the boat in China, the solution to build a boat that won't sink at the first stiff breeze.
I was wondering if OP has addressed this question before: Is it possible for a country to have a "fully developed" economy and still be a manufacturing giant? What happens when all countries are finally fully developed? Will the cycle of seeking comparative advantage reset and start anew?
Your theory is based on the assumption that Progress is a linear sequence and there is only going forward. If the Soviet Union / Russia and the American Rustbelt are anything of prove then we know that there will always be setback that prevent it.
Technology is the cycle breaker in many scenarios. As AI and automation mature even more, there is a good reason to believe that high-tech nations can now produce goods cleanly and cost-efficiently so that manufacturing demands no longer need human employment but are all run by robots. In such a situation, it comes down to social policy changes that ensure the unemployed population is well taken care of, and humanity as a whole can be liberated from simple tasks and seek higher meaning in life as a species. Third world countries rationally should be brought to equilibrium by the first world because their population can only be an asset to humanity if they can also contribute to the cumulative brian power of humanity to further the technological frontier. This is the best-case scenario, the worst-case scenario is what you can often see in cyberpunk stories where the society is heavily fragmented into rich and poor, the powerful and the weak.
I think (can't stress enough the opinion part) that if China collapsed, it would affect everyone. But it would affect the rich hedge fund and market manipulators WAY more than the average middle/poor class person. The middle/poor class are already seeing huge inflation and price hikes right now. But the stock market is still going strong. And the only people I see who are pushing doom and gloom scenarios about a Chinese collapse are those people who have tons of their money in speculation and foreign investments. And frankly, they made their own bed. Of course, if you believe in trickle down economics, then it will eventually impact the middle/poor class. And that's not good. But a lot of the people who attack the rich don't believe in trickle down economics. So it would be interesting to see which way the scenario would play out. If companies and governments were smart, they would have started diversifying away from China long ago. And a few companies have been, moving their manufacturing to Vietnam, India, Thailand or even back to their own country. A collapse of China would just force everyone else to do it, and very quickly (as the video pointed out). But maybe that could even be a good thing in the long term. Really suck for a decade or two, but then even out or even improve things in the long run.
Nobody believes in “trickle down economics”. The term was first popularized by Ronald Regan political opposition in the 1980s but Reagan himself never used the term or advocated anything called “trickle down economics”. Reagan called his economic policy “free-market economics”. Nobody has ever gone to congress and asked them to implement trickle down economics and no economist who ever lived can be considered the creator of the theory. It’s a stawman invented by the left to avoid actually having to criticize rightwing economics. That’s a fact not my opinion.
@@gooel My particular area is a lot more self sustaining than others in the US. That comes from living in one of the big agricultural centers. We would lose access the latest iphones and cheap dollar store goods. But we could get all the actual necessities. But other major urban centers where they need to get those things imported would be hurt more, yes.
Countries like the US cannot do that cheaply. An average american has way more education to waste in making textile and you would have to pay them more. Your already high inflation would increase while you could give the work to Bangladeshi sweatshops and enjoy cheap goods
Admittedly this is highly speculative (and probably incorrect), but AI could prove key to unlocking more effective humanless automation of such production, which would reduce or remove the need to exploit cheap labor overseas.
they actually get richer by having services based out of them and exporting manufacturing but I agree that ACs should keep a level of competitive, high quality domestic manufacturing
East Germany was never part of the Soviet Union. East Germany was part of the Warsaw Pact. The author has extremely serious problems with the reliability of the facts. 4:41
imo the majority of the Impact would be towards companies who enjoy profits from low cost manufacturing (labor, equipment, etc). The real issue will be if those companies absorb the lower profit or pass it on. At this point I don't see them passing in on (but maybe in the future when they can use smoke and mirrors by releasing a new feature or major product upgrade)
Not really, most of the western company like Tesla, BMW, VW, Apple, Etc also have a huge percentage of salessnd profit in china. So they will also get impacted
the argument "let's not wish the economy to collapse since it supports hundreds of millions" is a weak one imo since it allows the CCP to build literal filtration camps while we stand there and raise our "concerns"
@@seadkolasinac7220 It can be both ways. When USSR economy collapsed, the regime changed. Not so in North Korea. Chinese economic collapse can be fall of the regime, a civil war, or rise of the brutality of the regime.
The main thing that makes it hard to predict is having a very authoritarian government, which can take huge action in response. Don't get me wrong, I'm sure there isn't a lot they can do to prevent it, but their actions will distort our predictions.
East Germany was not part of the USSR. This isn't just a small mistake. You went out of your way to make a specific point about East Germany's assumed contribution to the USSR's GDP. Why would you write that into your script without fact checking? This is a red flag....what other "facts" are you stating with confidence without having checked them? What else makes it into your scripts because it just kinda seems right? I'm disappointed because I think I've learned a lot from your videos and now I need to be a lot more wary.
If Australia’s economy collapsed, I probably wouldn’t be looking to an Australian for economic advice afterwards. You might actually be out of a job in that scenario.
@@seadkolasinac7220 it was a joke about a hypothetical scenario that isn’t going to happen. But realistically, ya, I assume people would hesitate taking economic advise from an Australian in that hypothetical.
@@devinfraserashpole4753 Mix of capitalism and socialism like west north Europe & countries like China follow ? Is that system is better over capitalism
@@bharatkapoor4062 My god are you a broken record or something? I swear your practically spamming that copy/paste. Plus since what you mean is 'like china' since when you brought it up in other posts you basically argued that the Chinese model was the better one, you might as well be straight forward about it rather than sticking in West North Europe to make it sound less pro china.
i really like your videos you do a great job. they are informational very interesting and well presented. would like to see you do longer format videos were you dive into abit more detail on the topic
I agree with most of this but one thing is definitely an incorrect overstatement. You say we are "dependent on China". Actually, we are not. We have taken advantage of China's lower labor costs to allow higher profits on consumer goods and to fuel a consumer culture that borders on entitled hedonism. We could be fine without China. But spoiled consumers would whine and cry, and Apple would need to take a smaller profit on each iPhone. Or, as is happening, just make them in India.
India don't have the manufacturing infrastructures/pipelines that already existed in China. India laws and bureaucracy also would made it harder to start businesses there.
What the last ~3 years have shown us is that China can make extremely abrupt, unpredictable and damaging policy changes that - as implemented - make absolutely no sense, do horrible damage to industries and the economy, and are doubled down and not reversed until it is too way late even if it is painfully obvious they don't work. Coupled by the sheer size it leads to unprecedented risks, and it seems for some reason investors tend to ignore them. Look at what happened (semi-)recently: One-child policy. Caused ongoing sever demographic crisis. Was not lifted until it was way to late to fix demographics, and reversal of policy didn't even work. Maternity capital was introduced too late to help and is too small to make a difference. It was increased but again too late, and by then - again too small to make a difference. Three red lines to deflate real estate bubble. Destroyed all large real estate developers, market and relevant industries. Policy was not relaxed until after all relevant companies were thoroughly bankrupt, workflow completely destroyed and so work could not resume. Despite falling prices, did not really help much with unaffordability of housing where it matters because of industry collapse which made supply worse. Common prosperity and pressure toward IT sector ("internet companies") to fix failing textile industry. Didn't help textile industry at all. Severely harmed IT industry and services, cause huge layoffs and downsizing all around. State funding for microchip industry. Failed to produce relevant chips in any usable amounts. Lead to massive, probably unprecedented money laundering. Harmed companies that made actual progress toward developing chips domestically (who were "outcompeted" by fraudsters). Destruction of private education industry to help against exam abuse. Exam abuse didn't stop (arguably got worse). Education is now an increasingly criminalized, shadow economy. Ban on videogames and some related entertainment activities for underage. Didn't change schoolchildren habits. Did deal a massive blow to domestic entertainment, partially forced it into shadow economy as well. The olympics. Stopped all heavy industries around Beijing for a couple of months. Didn't really improve anything. Harmed public image of the country more than improved it. Coupled with lockdowns - many companies didn't recover. Forced integration of Hong Kong into mainland. Didn't really help any. Hong Kong is now more or less redundant and is experiencing drawn-out economic and population collapse which will only accelerate. Political and social pressure applied to foreign companies (automotive, IT, electronics, industrial, etc) to promote domestic product. Domestic product didn't really improve. Many of foreign companies are downsizing or leaving. And the -elephant- supermassive whale in the room: the zero-cvd-policy. Failed to save lives completely and utterly. Devastated the economy like nothing since Mao. Damaged investor confidence severely, forced huge outflow of foreign companies and capital which will likely continue. Caused energy crisis and contributed to food shortages. Made a large portion of population poor among rising prices and employment shortages. Caused social unrest. Was lifted suddenly and without warning AFTER the most severe permanent damage was already done. Reversal failed to improve economy yet, and killed millions.
Cookie cut and paste smearing China propaganda. The dynamic covid policy didn’t save lives. All the world covid deaths statistics expose this lie. Common prosperity is to tackle the income inequalities and more resources goes to the rural China. Bubbles regardless its real estate, banks or others are part of capitalism, proactively popping the bubbles are better than let the bubbles grow out of control eg: 2008 world financial crisis starts in the US, the 20 years of one child policy implemented urban China, semi in rural (if the first child is a girl, (families are allowed to have a second child), at the time, it’s logical since the boomer generations have at least 4 to 5 kids and were not able to feed them. As for the crackdown of after school education facilities and video games, it’s the parents who are demanding it. People need to look at things with a more balance perspective will see things more objective.
I wish someone would properly define 'economic collapse' in this context, seems like there are wildly different interpretations depending on who is talking. Also, seems to me people from countries that are very dependent on China as an export market tend to lean towards denial China has significant, existential problems...
Economic collapse is when a significant portion or a majorly of jobs (especially critical jobs) stop being done in such a way that they can’t be started back up easily. Say if trucking and trains got shut down due to a lot of the workers staging a revolution, getting caught in the crossfire or being scared of getting killed. Without transport other industries can’t get raw materials or export so many jobs become impossible to do and it wouldn’t be easy to fix because of the civil unrest.
@@jukio02 what do you mean by fine? With millions of covid cases and thousands of deaths per day, a burst property bubble, reduced export advantage, low cost manufacturing compilation, declining growth, religious genocide and all the other problems, it is not fine. It’s not going to collapse of course or fall by a large amount because it is still the second biggest economy and while the CCP are terrible people, they are at least fairly competent.
Every country has significant problem. The problem is that you guys only focusing on the bad side of the story all while ignoring the good side. That is why you think China will collapsed when in fact, it is far from it.
@@Rex-ww4cw did you read my comment? I said it won’t collapse. Yes every country has significant problems but most of them aren’t killing off ethnic minorities or suppressing their own people.
I was stunned when I heard him say that East Germany was a part of the Soviet Union. That was never true. Even Saturday Night Live once famously mocked East German Olympic athletes - which were not the same as Soviet athletes.
I'd argue that part of why the USSR collapsing didn't tank the world economy is because despite what EE seems to think, neither they or their satellites magically stopped existing afterwards. They continued to do business as best they could given the turbulent situation, so of course global GDP kept rising. They were now doing it more efficiently.
6:10 I find it odd that graph jumps up at 2020 when there's talk about corporations firing sizable chunks of their staff and other such entities getting ready for another recession. I've heard Canada is going to struggle for the next 50 years, though I find that hard to believe.
At the point in the video where you talked about moving your business in the event of economic collapse (to the point of no electricity) in Australia, the map shows your business being moved to Europe. Is this indicative of where you'd want to move in the event of that? And if so, do you have a particular country or region in Europe you'd want to live in?
My guess is he'd pick Ireland, ranks quite high on his leader board and is very Anglo sphere since the Irish language is not really the main language anymore
I don't want China's economy to collapse--just for China to dramatically reform its internal and external economic, social, military and political practices.
I would like China to stop commiting genocides, stop violating human rights and stop spreading agressivity throughout the world. I would also want them to return freedom to Tibet and Hong Kong.
@@samuela-aegisdottiryeah, and I would like the west to get off their high horse and stop pointing fingers while they do shtt far worse, but we can't all have what we want, can we?
I think one of the consistent fallacies western media or content creators have when looking at the Chinese economies, or India or other developing economies, is that they look at it through a "developed economy" lens, assuming everything is run with a certain order and formality, underestimating how informal their economy actually is. Just as an example, In developed economy, when a person or company or entity can't pay debt, they go bankrupt, and a specific process will follow. This formality governed by law can be rigorous and therefore disruptive. But in China, companies can halt their workers salaries or stop paying their suppliers for months or years while the entire supply chain seemingly functions normally. This is all due to the informality of how businesses are done in China. Corruption, nationalism, social pressure, lack of law enforcement, abundance of exploitable population all contribute to an almost infinitely flexible economy that can and will do anything to survive. If a company collapses in the developed economy, its workers and employees has no income and its products stop being produced as the system sort out its physical/intellectual properties. If a company collapses in China, there will be no change in the general economy as another entity will start producing exactly the same thing, disregarding any laws on intellectual property protection/worker's right/environmental regulation/any law whatsoever, working overtime to replace it, and the government will help, because they profit from it too. And this isn't a new thing, this has been happening since the establishment of the current CCP government. I think everyone just want the regime to collapse, not economy. There has been plenty examples before when a dictatorship regime collapsed, the economy was mostly fine, and got better in the long run. South Korea, Taiwan, Singapore, etc.
Okay Economics Explained, you read my mind. I literally searched UA-cam yesterday for videos titled this and nothing what I was looking for came up. Your timing is impeccable!
"Nobody can predict the future, least of all economists". Side note though, I agree with our Economic Aussie. I don't think there's going to be a fast decline in China's economy unless there's a suitable black swan. They'll do everything they can to stabilize the situation. Nothing is off the table when it comes to China. They can bleed but they won't die a quick death.
A poll for EE’s economics-inclined audience: Do you believe EE when he said China is going through an unprecedented wave of protests and protestors are calling for change at the highest level of government. Please answer in Yes or No and feel free to leave a reason but refrain from replying to other’s comment to avoid turning into a thread war
Definitely not. The vast majority of the protests were as a result of lockdown fatigue. They were certainly not interested in a political revolution. Once the lockdown has been lifted, most ppl were happy to go about their day to day activities.
I'm not from Australia, but happen to be in Australia while watching this video. Does my consumption count towards the domestic market, or is it a tourism export?
@@tobybrown1179 I'm from neighbouring New Zealand, and actually have Australian working rights from a reciprocating agreement. Some aspects of work are more regulated in Australia, with the need to get an RSA or White card for fairly basic jobs. Wages are generally higher per hour, but a lot of the work I've found is very casual with a low amount of hours (or none) available each week, where as in NZ I had a minimum number of hours guaranteed each week for similar work. Due to this I've spent far more of my NZ savings then I've earned in Australia. Taxes are lower, due to the tax free threshold, and GST being excluded from groceries. Cost of living is a little higher, especially accommodation, although groceries are pretty similar if not a little cheaper in Aus. Eating out is more expensive, probably due to those higher wages. After I leave next week, I will have spend 3 months in Australia.
@@MsJubjubbird Except in the specific case of watching the video, I'm not spending anything (excluding a little bit of electricity and data) so it's advertisers that are paying. I generally get some local aussie ads, some ads that have followed me from New Zealand, and some ads from multinationals. So there is some domestic ad spend, and some exported ad spend.
You might also have added a comparison to a former #2 economy, striving to be #1, Japan. Also, the COVID global economy is a real-life example of a China collapse. Their shut down cut the import spigot for other countries and the export spigot to China.
@@bharatkapoor4062 Western/Northern Europe and China has significantly different economies. China is esentially a command economy with companies, Europe is esentially a set of market economies with welfare states. China's model seems to be the better than capitalism but worse than socialism when it comes to stability and growth (when compared with the USSR and the US), but lacks civil liberties and is led centrally. This means that any bad decision the Chinese elite makes can be really detrimental. Europe's model is one that supports the status quo, and simply cannot be implemented by any other culture. There are many requirements for a healthy democracy, from a nuclear family structure to a cultural recognition of civil rights. Those states probably won't make bad decisions, but they will also make decisions slower. They make up the most livable places in the world with the best education systems in the world, the best healthcare systems in the world, they're the freest in the world... the list goes on. Tldr: Europe's model creates heaven on earth but is really difficult to implement. China's model is good for growth but doesn't provide civil rights. They're both better than, say, islamism.
See, here's the thing, while China was in strict COVID measures for 3 years, in 2 of those 3 year due to these measures China barely had any COVID outbreaks. Most of Chinese people went about work, study and play relatively the same for 2 years. So China dodged the Original and Delta waves, the more deadly variants. When US's death count went over 1 million, China wss thousands. The Omicron is maybe 10+ times more infectious, and thankfully much less deadly as well.
As usual, videos like this and reporters cherry pick and paint China as extreme to fit the western narrative and to justified its provocations to destabilize the world
"If ever there was an economy that could be neatly removed with little interruption to the rest of the world, it would have been one that lived behind the Iron Curtain." That ignores all the countries that were also behind the Iron Curtain, or otherwise allied to the Soviet Union.
As if anyone care about oppressed ppl in China. If they collapse and millions of refugees heads west, we all know they'll be given fingers just like Afghans
Considering the current human suffering, just directly from China, not even indirectly, an economic collapse and a new regime born from the frustration over the immense centralized control would probably result in a good outcome overall.
Well, as a economics content youtube channel, the fact that you mixed up Taiwan and Thailand out loud even with a picture with Taipei 101 and pre-scripted lines at 12:46 is AMAZING.
Thanks to COVID, many companies (if not most) have already started to diversify supply chains. That said, a Chinese collapse wouldn't be that devastating to the overall world economy... there would be major disruptions, but within 18-24 months, things would normalize. China is a producer of goods, a producer that is losing its global importance every year that passes.
@Firas Ajoury ROFL! Next time, maybe try arguing facts, theories, or specifics. Childish personal attacks only get you nowhere and only demonstrates ignorance.
@@samuela-aegisdottir I do kind of believe my comment was there would be major disruptions, but I think we'd all survive using the same cell phone or laptop an extra year or two.
Hey, forget all that noise about 'China will collapse.' That title's been gathering dust on UA-cam for 13 years now, and you know what? China's still standing tall, rock-solid as ever. Just like how the China lander touched down on the dark side of the moon like a total boss.
@@nicodesmidt4034 I assume if it wasn't China it would have been made in another developing country which wouldn't make us dependent upon them necessarily
@@hendrik2792 I checked, HP's components are made in Philippines, Malaysia and assembled in US for US market. my only "beef" with his video is the claim of other countries dependence upon China... I guess I took it as without China we wouldn't have something. Maybe the dependence he references is simply for cheap labor (something that has now moved to other countries like Vietnam)
@@jeffbee6090 yes, the US is a bit different, although it could be argued that more common parts, such as chips, find their way into, say an iPhone, within China. No China no iPhone. And yes Vietnam can take some of it, but it will take time and won’t take all
3 decimal places in the GDP table @4:36 makes the dot look like another comma, two decimal places would have been sufficient and clearer, also why not right align a list of numbers?
Do we really "need" China tho? I mean Vietnam, India and Mexico can easily fill the gap China will leave. If anything China needs to work harder to show us they still deserve to be the world's workshop.
They can't. Vietnamese communists are even more corrupted than their chinese counterparts. Also, in those countries infrastructure is underdeveloped and the governments except those in Vietnam are of flawed democracy. In Mexico, they don't have the economy of scale power, where nobody wants to lower their wage to get more revenues. Sorry but it will take those countries a long time. I was born and bred in one of those countries by the way.
4:43 The Soviet Union did not include East Germany. It was a satellite state, but never a constituent republic of the USSR. It's also not included in Soviet economic statistics.
Protect yourself online with Guardio ⇨ guard.io/EE and get a 20% off with a free 7-day trial!
It might be the first global Great Depression.
@Kirk Wolfe - Indie Music yeah yeah, whatever , China tries to become rich by slaves and colonization too.
Taiwan, South Korea, Japan, Singapore, Hongkong, Australia, New Zealand, Canada, North European countries,.... are all rich because of what ?
We don’t need genocide! We don’t need Marxism Lennonisn! We don’t need authoritarians! We don’t need social credit scores! We don’t need China!
What is your opinion on Peter Zeihans predictions in regards to china?
thanks for exporting content t my phone :)
"The Soviet Union also included East Germany in addition to 14 other member states" - East Germany was part of Warsaw pact, it had never been one of 15 USSR members.
Mix of capitalism and socialism like west north Europe & countries like China follow ?
@@bharatkapoor4062No, no, no and no.
@@bharatkapoor4062 government doing stuff != socialism
I came to the comment section looking for this.
De jure yes, but de facto no. The USSR was a one sided construct to the economic and political benefit of Russia in the end (post Stalin there was a short period where it was different, but this can be ignored). So you can consider the Warsaw Pact states as part of the USSR. They were even called satellite states during the Cold War.
I'd argue that part of why the Soviet collapse didn't affect the global economy is that much of the raw materials it was producing no longer was going to domestic industries. Instead it found its way to international markets which suddenly had a cheep source for these raw materials.
Hundreds of countries suddenly had a source of cheap weapons they could buy without having to be communist as well.
It went from doing everything to only doing what you are good (cheap) at
Globalisation for you
Mix of capitalism and socialism like west north Europe & countries like China follow ?
Yes, few people realise the decolonization of Africa at the same time the Soviet Union collapsed resulted in a power vacuum not only in Russia and its eastern bloc nations but also throughout Africa. The newly independent ex-Soviet nations then liquidated all their weapons stockpiles by selling them to Africa. This is why the national flag of Angola has an Soviet AK-47 on it. In many ways WWIII did happen but it was Africa-centric and Europeans only acted as suppliers of the weapons. Remember the genocides and famines in Rwanda, Somalia, Biafra, just to name a few. But this stull isn't taught in Western schools.
@@geigertec5921 Mix of capitalism and socialism like west north Europe & countries like China follow ?
Is that system is better over capitalism
The Soviet Union did not include East Germany as claimed at 4:44. East Germany was a separate state similar to Poland and other Eastern Bloc states
I just wanted to add that, great observation !
The ol' conflation of the Warsaw Pact and the Soviet Union
Was about to say the same, I wonder what the GDP of the union + all the warsaw pact states would be though!
I was also just about to add that
The bit that confuses me is whether that distinction matters when surely it was the Soviets keeping East Germany socialist in the first place
You should create a tee-shirt saying "Nobody can predict the future, least of all economists"
Nope a polo shirt is durable and high quality.
Lol or a shirt that says "Economics Explained just got bribed by Covid CCP"
@@yucateco14 economics explained is so biased towards the west, the man really makes china look like a villain for some reason, all of his explanations are modelled on the American capitalist method
Mix of capitalism and socialism like west north Europe & countries like China follow ?
mix of semi slave workers and lack of freedom of expresion. Not like north Europe at all
The reason why the Soviet collapse didn’t have negative effects on the global economy was because their economy wasn’t globalized and cheap raw materials were dumped into international markets. A country like China is way more globalized and interconnected with the world at large.
Kind of an interesting counterpoint to what I was thinking (they continued to exist and therefore produce and consume). Wonder if part of the increase in global GDP was partly because they continued to exist and participate despite the turmoil (my basic theory), but now integrated the result was they showed up properly in statistics only focused on $.
There was a recent discovery involving magnetizing metals that will make rare earth elements no longer needed. This was from Argonne National Lab and MIT.
@@12time12 I doubt it
It's now time to unhinge and rethink globalization with other states. There are other options like southeast Asia. Why the world is strictly beholden to China, I will never truly understand.
This is only slightly true. China as a whole is a mass importer of raw materials and vast exporter of goods - consumer and luxury goods. Look around the world. Most countries are all suffering inflationary pressures and will be for years to come. This means consumer good imports will drop massively. Making the "need" for China's manufacturing less important. Infact over the last 10 years many companys and countries have already moved away from Chinese manufacturing. Now many of the goods that used to be made in China are now made in Thailand, India, Bangladesh, Turkey, and many other countries. The world has been decoupling from China "single source" for a while now. So a reduction or a collapse of Chinas economy is not as drastic for the rest of the world as people make out. Its bad for them, for sure, because their economy is so tied to the worlds consumerism, but that is now rapidly reducing (recent Chinese reports put exports down over 50% YoY).
This will impact resource countries like Australia, and some of the South American nations. The reduction in the need for raw materials will hit these countries economies hard. But as mentioned, they are going through inflationary issues anyway, so economic recession is happening anyway.
4:42 the Soviet Union did not include its Germany, it was part of the eastern bloc of Warsaw Pact Soviet Satellite states, but it was not “part of the Soviet Union”
Yes. I see very often that people mistake USSR for the group of countries USSR led: the Eastern Block. They also mistake the Warsaw Pact with both. USSR was a country. Warsaw Pact was a military alliance of USSR and its allies. And the Eastern block was the group of countries living under communist doctrine and cooperating economically. Post-soviet is not the same as post-communist.
作为一个中国人，最近30年似乎听到过太多次，中国即将崩溃的说法，这也挺好的，提醒中国人及时进行调整。
In late 1777, Adam Smith received news of General Burgoyne's defeat at Saratoga, promising calamity for Britain's war effort in America. His correspondent expressed deep concern that the nation was ruined. "There is a great deal of ruin in a nation", was the great economist's calm reply.
East Germany was Warsaw Pact, not USSR.
Still, being virtually tied with WG given the size and population disparity isn’t great.
And germany is still the 4th largest Economy now LOL
Yes. I see very often that people mistake USSR for the group of countries USSR led: the Eastern Block. They also mistake the Warsaw Pact with both. USSR was a country. Warsaw Pact was a military alliance of USSR and its allies. And the Eastern block was the group of countries living under communist doctrine and cooperating economically. Post-soviet is not the same as post-communist.
But what a difference in GDP.
After a horrendous 2022, shell-stunned financial backers have misfortunes to recover and a lot to consider, as an expansion report and a pile of different information did close to nothing to change assumptions that the Central bank would probably keep climbing interest rates regardless of whether the economy dials back, And that implies more red ink for portfolios for the principal quarter of year 2023. How might I benefit from the ongoing unstable market, I'm currently at a junction choosing if to exchange my $250k security/stock portfolio.
Centre around two key targets. In the first place, remain safeguarded by realising when to offer stocks to cut misfortunes and catch benefits. Second, get ready to benefit when the market turns around. I suggest you look for the direction a representative or monetary consultant.
@@obodoaghahenry9297 In-fact, ever since coronavirus I've been in regular conversation with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.
@Mark George She is Julie Anne Hoover, my consultant. Since then, she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the chief online, on the off chance that you're interested. I made no regrets about substantially adhering to their exchange strategy.
Thank you! I'm always happy to come here and get a much more reserved and thoughtful explanation to counter the clickbait.
East Germany wasn't a part of the Soviet Union, it was a Warsaw Pact nation. While they were extremely close ideologically, politically, economically, and socially to say that the DDR was part of the Soviet Union is like saying Canada and the USA are the same country because both are in NATO and NAFTA.
Mix of capitalism and socialism like west north Europe & countries like China follow ?
Is that system is better over capitalism
@@bharatkapoor4062 I mean, all things considered? Sure, I guess.
There can be no Socialism while Capitalism is still in place. This is true at least not at a global scale, local attempts at socialism have been successful. That's been the plan of socialist movements from the early 20th century onwards: global Socialism, leading to what Marx described as an eventual stateless Communism. The Soviet Union never claimed to be a communist nation and the PRC doesn't claim to be one today... both state that they are part of a larger global movement towards communism that's in its early stages which are, but not completely, socialist in nature.
Make sense?
@@Robert0Pirie no i am seeing things from a normal man where income inequality is huge for that reason poor people need free Healthcare free education cheap public transport
@@bharatkapoor4062 oh, well then yes. Democratic Socialism or even just Social Democracy are both better systems of politics and economics than our current Neoliberal Corporate Capitalism.
Yes. I see very often that people mistake USSR for thegroup of countries USSR led: the Eastern Block. They also mistake the Warsaw Pact with both. USSR was a country. Warsaw Pact was a military alliance of USSR and its allies. And the Eastern block was the group of countries living under communist doctrine and cooperating economically. Post-soviet is not the same as post-communist.
Another great, easy to understand video. Congrats on 2M! The cream rises to the top.👍
Thanks a lot!
I love how you have so many false facts in this video but never point them out even when corrected, like the fact that you mislead people about the warzarpact and the soviet sattalite states@@EconomicsExplained
Can you do a video about what would happen if the US economy collapses too? Thanks!
Mix of capitalism and socialism like west north Europe & countries like China follow ?
Let’s see if they do one on the US or EU. If not it’s another one if these propaganda video finding a scapegoat when things went south.
East Germany wasn't part of the USSR and in fact had reunited with the Federal Republic before the USSR broke up.
Can we get an episode about demographics? It seems like it'll be a substantial issue for quite a lot countries going forward.
I know he's already got at least one video in that vein, at least regarding age demographics. It's called "Young Generations Are Now Poorer Than Their Parents And It's Changing Our Economy"
@@bdlbug6 I've seen that episode and its good. But I would like a forward looking one.
The Institute for Health Metrics and Evaluation at the University of Washington is projecting global fertility rates (yes I do mean global) to be below replacement by 2050 and at around 1.5 by 2100.
Not all demographers are forecasting the same but the above is still a reputable source and (at least based on that source) it would imply that humanities days are numbered just based on the fact that people do not wish to keep having (enough) kids.
Obviously anything like that is very far in the future but as far as I've seen nothing any country with below replacement fertility has done has brought fertility rates back up to replacement.
@sonjeo That's fair, but I like this channel's take on things, so I hope he makes a video about it.
@@ZelenaZmija Demographics may become a sizeable problem, unless handled with exceptional governance. All of the well-developed countries have fertility rates well below the replacement rate. Most of these have wellfare systems that will likely prove to be hard to uphold in the next few decades. Far too many elderly people that are no longer adding value and too few working people paying for their pensions.
You're probably familiar with these basics, given your interest (consider it context for those who are not). However, I do believe it's not a lost cause, but only if those countries find ways to systematically decrease their median age. Luckily, there are plenty of volunteers that would prefer to escape their country and migrate to the generally prosperous west. But just as clearly, this is a delicate matter. Older migrants won't help, working age migrants are unlikely to be productive in prosperous countries. It is young people that the west needs, so that they can still complete education that sets them up for success in that particular context. That's still significant investment and raises difficult ethical questions, why one, and not the other. And also, why are these new people paying so much text for these old folks that they have no relation to. I think mess is unavoidable, but tragedy for "the west" is optional.
Just a few thoughts of mine. What do you think? I'm curious to EE's perspective, but just as curious to see yours or someone else's perspective on this matter (it also concerns me, quite a bit).
@@mr-boo Appreciate your reply.
I think what you've outlined is a general solution for wealthier countries, or "the west", that could work at least in our life times. However, I would emphasize that "the west" is not only one facing declining birth rates.
The majority of Central and South America are at below replacement fertility, all of Eastern Europe is, India is currently at replacement rate fertility but that's just where they are at currently, the trendline for India is still going downward and suggests they'll be below replacement in the coming years, and China's fertility rate is well below replacement as well.
The only region that still has high fertility is Africa but it is also dropping as they develop, and may drop more rapidly than other countries who have experienced falling birthrates.
Just my opinion but I think too many countries will need immigrants, and many nations who typically send away people will make the process of trying to leave exceptionally difficult because they themselves need to keep what people they have. Furthermore, immigrants match the fertility rate of host country, if not immediately then within one generation.
I do not see any clear solution, though frankly I just like observing the trends from a mechanistic perspective. If we've built a world where people either cannot procreate or do not wish to then it is what is.
I view it like kicking the leg out from a table with the smaller global economies on top.
No matter how it shakes out, it will disturb the rest of the table or destabilize it.
Mix of capitalism and socialism like west north Europe & countries like China follow ?
@@bharatkapoor4062 Unlikely. They don't have the resources, demographics and freedom. China isn't very rich if you divide it by 1.5 billion people.
@@TheGoukarumathe ruling powers of Communist China are ridiculously rich, that’s where all the wealth is
*4:40 This is completely false, the Soviet figures count the figures of the countries IN the soviet union (Ukraine, Russia, Kazakstan ect), but NOT countries in the Warsaw Pact (Poland, East Germany, Romania ect)
Saying the Soviet Union's figures "included east Germany" because of the Warsaw pact is as silly as increasing US gdp by 3 trillion because France is in NATO
(I'm not saying this was out of dishonesty, just a mistake or misconception)
Yes. I see very often that people mistake USSR for the group of countries USSR led: the Eastern Block. They also mistake the Warsaw Pact with both. USSR was a country. Warsaw Pact was a military alliance of USSR and its allies. And the Eastern block was the group of countries living under communist doctrine and cooperating economically. Post-soviet is not the same as post-communist.
@@samuela-aegisdottir EXACTLY
Its a both yes and no, because we could take production back to home but rebuilding It from scratch Is tough
If China falls, it would take a very long time to get production going on home turf so it would have to be done gradually. That is why if China collapses, it will be a disaster for the rest of the world as well. I have not mentioned all the rare earths that China has that the rest of the world is dependent on as well.
That would not happen. If China collapses randomly then a short period would see companies come back home for a short while.But most companies would move eventually to other countries like Mexico, Malaysia, Vietnam, Bangladesh, India, Pakistan, South Korea, and maybe Japan ,Egypt and Turkey.
Nobody is desperate enough in the west to work in a factory.
You have been told your entire life . If you don't try hard at school you will end up working in a factory.
That thinking is strong even for myself. I just took a job as a carpenter but in a factory. I nearly turned it down. Same work as I do on site but in a factory with the same pay . They can't get people. It's the stigma. It is ok to be a tradesmen but not a factory worker .
People's ego can't take being that low social status.
@@avancalledrupert5130 a bit true, however the West is pretty well at increasing productivity - especially if under pressure. This adaptibility due several layers of freedom is what gives it the edge.. It's just that engineers will have to re-learn well forgotten things and we will have a bad recession.
@@daxasd3270we don't have enough tradesmen as it is.
There's like 3 job vacancies for every tradesmen
All my friends and family are in those fields. They all pay more than all but the top 10% of whit collar jobs but still nobody wants to do it .
I've offered people working retail on minimum wage chances to learn construction skills. Instantly £3 or £4 than they make with chance to double it in a year . They still won't .
Plus gen z is untraceable. I've been given them as apprentices .
It's like mate I can teach you carpentry. I can't teach you how to use your own body . You should know that all ready.
China also needs the world, we're all interconnected
Based on the direction the world is going, the argument is less about interconnectedness and more independence and morality
Were. We are entering an age of deglobalization. We realize we can't change country by commerce and it's a bad idea to rely too much on other countries.
Its not about the connection,
Its about the dependence....
@@poojancharadva5634 you've missed the point. Dependence is not a means unto its own. The reason why dependence is bad is because there is cultural significance to independence.
The big question is - Who needs whom more?
You can see that the Soviet economy fell before the fall of the Soviet Union in a video called "Top 10 European Countries by GDP (1897-2022)". It was an epic economic collapse.
"Invasion of Thailand", "East Germany was part of USSR"... Is it a comedy?
God sent !! BUMERPAY God will keep on blessing you
Love your channel. Economics "for the rest of us". Appreciate it.
what you would need to minimise the effects of China's manufacturing having a major decline (It's unlikely for it to just stop producing things) is to either impose a self-sanction to limit how much they rely on the nation but to stop relying on China entirely isn't easily possible or justifiable unless China does something extremely denounced
China's "manufacturing" is sinking. Most foreign companies and a lot of chinese companies are relocating to places like vietnam, india and others. by the time that china totally collapses the global economy will have moved on and the impact won't be that great. and because the chinese government went to great lengths to keep imports to a minimum, the drop in consumption is minimal. China is done. nothing can bring it back.
@@theoldtimefiddlerThat's totally not true.
@@theoldtimefiddlerthe manufacturing sector in China experienced a 4,6% increase in 2023.
I couldn't live without your videos so keep making them
Mix of capitalism and socialism like west north Europe & countries like China follow ?
中国崩溃论我已经听了20多年了，但是我对国家的信心越来越足了。没有到过中国，在中国居住几年的根本不会了解中国，这是你们西方人最大的弱点。你们总以为自己很了解，中国和你们根本是两个世界，任何经济学理论都不一定适用中国，也许你们应该编写新经济学课程了。想正确分析中国，你必须了解中国文化，用你们的文化习惯思考中国问题行不通。
Love your vod !! It's like candy for my brain 🧠
It's not selfish to revolt against injustice. We should absolutely encourage that
It is when literally everything can be deemed as unjust if you squint at it hard enough
let me guess, Jan6 MAGA-tard?
4:44 false, east Germany wasn’t a part of the Soviet Union but was just in the union’s sfere of influence (Warsaw pact country)
Potato potato
@@zesky6654 I read this as potato potato, and I was embarrassed since I should have read it as potato potato.
Imagine the largest industrialized economy collapsing. That also means other economies are also collapsing and not buying manufactured goods. This is a doomed scenario that nobody wins.
USSR collapse was not felt in US and Europe but it was disastrous for many countries in South America, Africa, and South & East Asia. In terms of unlikely China collapse, the EU and USA would not have much impact because the imports would from China will be taken over by the rest of the world, and Exports to China will not impact the EU and USA much.
The USSR made a much smaller percentage of the world economy then than China does today
That actually shown that the containment approach did work long term and that china gotten larger influence because we didn’t do it in fact we welcomed it with open arms for decades
what?
Just look at supply chain disruption from COVID and the impacts that had on businesses in Europe and the states, in a globalized world where companies are interconnected it'd create a huge shock , give it a year or two and things would smooth out again..
@@eastcorkcheeses6448 If anything, Covid showed us that fragile, single point of failure, "at time of need" supply chains are dangerous to the point of being a national security risk. The solution isn't to walk on eggshells trying to avoid rocking the boat in China, the solution to build a boat that won't sink at the first stiff breeze.
China will collapse, but it might not happen now or in a year or two. But it will in next two decades because of population collapse.
I was wondering if OP has addressed this question before: Is it possible for a country to have a "fully developed" economy and still be a manufacturing giant? What happens when all countries are finally fully developed? Will the cycle of seeking comparative advantage reset and start anew?
Your theory is based on the assumption that Progress is a linear sequence and there is only going forward. If the Soviet Union / Russia and the American Rustbelt are anything of prove then we know that there will always be setback that prevent it.
Technology is the cycle breaker in many scenarios. As AI and automation mature even more, there is a good reason to believe that high-tech nations can now produce goods cleanly and cost-efficiently so that manufacturing demands no longer need human employment but are all run by robots. In such a situation, it comes down to social policy changes that ensure the unemployed population is well taken care of, and humanity as a whole can be liberated from simple tasks and seek higher meaning in life as a species.
Third world countries rationally should be brought to equilibrium by the first world because their population can only be an asset to humanity if they can also contribute to the cumulative brian power of humanity to further the technological frontier.
This is the best-case scenario, the worst-case scenario is what you can often see in cyberpunk stories where the society is heavily fragmented into rich and poor, the powerful and the weak.
Germany Is fully developed and a manufacturing power at the same time. Japan as well and to a lesser extent, South Korea.
USA was that, too, many years ago.
“These protests show no sign of slowing”…it lasted less than a week and ended entirely over a month ago
I can kind of fathom the great amount effort that goes into making such content! great job.. :)
Thanks for this. Interesting and informative
I think (can't stress enough the opinion part) that if China collapsed, it would affect everyone. But it would affect the rich hedge fund and market manipulators WAY more than the average middle/poor class person. The middle/poor class are already seeing huge inflation and price hikes right now. But the stock market is still going strong. And the only people I see who are pushing doom and gloom scenarios about a Chinese collapse are those people who have tons of their money in speculation and foreign investments. And frankly, they made their own bed. Of course, if you believe in trickle down economics, then it will eventually impact the middle/poor class. And that's not good. But a lot of the people who attack the rich don't believe in trickle down economics. So it would be interesting to see which way the scenario would play out.
If companies and governments were smart, they would have started diversifying away from China long ago. And a few companies have been, moving their manufacturing to Vietnam, India, Thailand or even back to their own country. A collapse of China would just force everyone else to do it, and very quickly (as the video pointed out). But maybe that could even be a good thing in the long term. Really suck for a decade or two, but then even out or even improve things in the long run.
You wish. The true cost for over 3/4ths of everything your city consumes would uproot your standard of living.
@@gooel Exactly.
Nobody believes in “trickle down economics”.
The term was first popularized by Ronald Regan political opposition in the 1980s but Reagan himself never used the term or advocated anything called “trickle down economics”. Reagan called his economic policy “free-market economics”.
Nobody has ever gone to congress and asked them to implement trickle down economics and no economist who ever lived can be considered the creator of the theory.
It’s a stawman invented by the left to avoid actually having to criticize rightwing economics.
That’s a fact not my opinion.
@@gooel My particular area is a lot more self sustaining than others in the US. That comes from living in one of the big agricultural centers. We would lose access the latest iphones and cheap dollar store goods. But we could get all the actual necessities. But other major urban centers where they need to get those things imported would be hurt more, yes.
"Let's intentionally destroy their economy, it'll turn out just fine, no big world event is gonna happen because it certainly didn't happen before"
Great presentation! Learned something about China!
All we can do is hope for a peaceful reform in China, but prepare for the worst
Share your sentiment here, but the majority of poor Chinese (roughly 800m)are not prepared for the worst.
@@vanessali1365 wonder what would hope. If they all tried to come to the US or Europe, India etc.
@@nicodesmidt4034 US or Europe I understand but India .............
@@orkkojit neighbouring country so it is easier to travel and india isn't as bad as you think
@@Mahaksh lol give me a break.
That was a very long advert.
The actual video didn't start until 4 minutes
Consumers will whine that everything is slightly expensive for a year or two before companies move everything to India and Southeast Asia
not sure all those factories could be set up in India that quickly
@@seadkolasinac7220 you underestimate what you can do when you have a lot of people for cheap and ignore workplace safety
Love watching your videos.. Thank you
Should countries make more of their own stuff so they are not as vulnerable the the economic woes of the major producers?
In the age of globalization it’s very hard
Countries like the US cannot do that cheaply. An average american has way more education to waste in making textile and you would have to pay them more. Your already high inflation would increase while you could give the work to Bangladeshi sweatshops and enjoy cheap goods
There's million type of product in the world and how would country like Singapore, Vatican city, Luxembourg ect going to most all of it ?
Admittedly this is highly speculative (and probably incorrect), but AI could prove key to unlocking more effective humanless automation of such production, which would reduce or remove the need to exploit cheap labor overseas.
they actually get richer by having services based out of them and exporting manufacturing but I agree that ACs should keep a level of competitive, high quality domestic manufacturing
East Germany was never part of the Soviet Union. East Germany was part of the Warsaw Pact. The author has extremely serious problems with the reliability of the facts. 4:41
imo the majority of the Impact would be towards companies who enjoy profits from low cost manufacturing (labor, equipment, etc).
The real issue will be if those companies absorb the lower profit or pass it on. At this point I don't see them passing in on (but maybe in the future when they can use smoke and mirrors by releasing a new feature or major product upgrade)
Mix of capitalism and socialism like west north Europe & countries like China follow ?
Not really, most of the western company like Tesla, BMW, VW, Apple, Etc also have a huge percentage of salessnd profit in china. So they will also get impacted
@@Fauzanarief-n7i You do realize that you have LITERALLY listed "the companies who enjoy profits from low cost manufacturing" (in china).
@@Telhias not only low cost manufacturing, but also a huge sales and profit in china.
They definitely will pass increased costs over to the customer. Because they always do.
Extreme Economics,
New name 🤯
the argument "let's not wish the economy to collapse since it supports hundreds of millions" is a weak one imo since it allows the CCP to build literal filtration camps while we stand there and raise our "concerns"
so economic collapse in China would make their government less repressive? I'd imagine it would make the state even more repressive.
Mix of capitalism and socialism like west north Europe & countries like China follow ?
Is that system is better over capitalism
@@seadkolasinac7220 its already more oppressive already. Hong Kong, Xinjiang, Tibet. What next Macau, Guangxi, Ningxia, and let us not forget Taiwan.
@@seadkolasinac7220 It can be both ways. When USSR economy collapsed, the regime changed. Not so in North Korea. Chinese economic collapse can be fall of the regime, a civil war, or rise of the brutality of the regime.
I would like to see Chinese regime to collapse, but the economy to continue to feed millions.
People would have usless consumers goods than get rid of a mortal enemy
Can you do a similar video about the US or Europe? Curious about how the fallout would be different with a different type of economy.
I may be mistaken, but IIRC East Germany was part of the Warsaw Pact but was *not* a member of the USSR.
Australia's property market will definitely collapse
I remember hearing a joke about China signaling left then turning right
The main thing that makes it hard to predict is having a very authoritarian government, which can take huge action in response. Don't get me wrong, I'm sure there isn't a lot they can do to prevent it, but their actions will distort our predictions.
05:10 The DDR was a part of the Warsaw Pact, not the USSR.
East Germany was not part of the USSR. This isn't just a small mistake. You went out of your way to make a specific point about East Germany's assumed contribution to the USSR's GDP. Why would you write that into your script without fact checking? This is a red flag....what other "facts" are you stating with confidence without having checked them? What else makes it into your scripts because it just kinda seems right? I'm disappointed because I think I've learned a lot from your videos and now I need to be a lot more wary.
4:40, the Soviet Union didn't include East Germany.
The author has extremely serious problems with the reliability of the facts.
If Australia’s economy collapsed, I probably wouldn’t be looking to an Australian for economic advice afterwards. You might actually be out of a job in that scenario.
weird comment. If Australia's economy does badly that must mean all Australian people don't know anything about economics?
@@seadkolasinac7220 it was a joke about a hypothetical scenario that isn’t going to happen. But realistically, ya, I assume people would hesitate taking economic advise from an Australian in that hypothetical.
@@damongnojek3912 What about warnings from Australians?
@@devinfraserashpole4753 Mix of capitalism and socialism like west north Europe & countries like China follow ?
Is that system is better over capitalism
@@bharatkapoor4062 My god are you a broken record or something? I swear your practically spamming that copy/paste. Plus since what you mean is 'like china' since when you brought it up in other posts you basically argued that the Chinese model was the better one, you might as well be straight forward about it rather than sticking in West North Europe to make it sound less pro china.
i really like your videos you do a great job. they are informational very interesting and well presented.
would like to see you do longer format videos were you dive into abit more detail on the topic
I agree with most of this but one thing is definitely an incorrect overstatement. You say we are "dependent on China". Actually, we are not. We have taken advantage of China's lower labor costs to allow higher profits on consumer goods and to fuel a consumer culture that borders on entitled hedonism. We could be fine without China. But spoiled consumers would whine and cry, and Apple would need to take a smaller profit on each iPhone. Or, as is happening, just make them in India.
India don't have the manufacturing infrastructures/pipelines that already existed in China. India laws and bureaucracy also would made it harder to start businesses there.
Agree! we shouldn't spoil consumers too much
Production can increase rapidly in 10 years, population won't. So the economy will hurt for 4-5 years to move or rebuild the factories.
@@blackaugust2035 Capitalism don't deal with morality.
Rare earth metals? pharmaceutical ingredients?
“… despite what some outlets might present” lol
What the last ~3 years have shown us is that China can make extremely abrupt, unpredictable and damaging policy changes that - as implemented - make absolutely no sense, do horrible damage to industries and the economy, and are doubled down and not reversed until it is too way late even if it is painfully obvious they don't work.
Coupled by the sheer size it leads to unprecedented risks, and it seems for some reason investors tend to ignore them.
Look at what happened (semi-)recently:
One-child policy. Caused ongoing sever demographic crisis. Was not lifted until it was way to late to fix demographics, and reversal of policy didn't even work. Maternity capital was introduced too late to help and is too small to make a difference. It was increased but again too late, and by then - again too small to make a difference.
Three red lines to deflate real estate bubble. Destroyed all large real estate developers, market and relevant industries. Policy was not relaxed until after all relevant companies were thoroughly bankrupt, workflow completely destroyed and so work could not resume. Despite falling prices, did not really help much with unaffordability of housing where it matters because of industry collapse which made supply worse.
Common prosperity and pressure toward IT sector ("internet companies") to fix failing textile industry. Didn't help textile industry at all. Severely harmed IT industry and services, cause huge layoffs and downsizing all around.
State funding for microchip industry. Failed to produce relevant chips in any usable amounts. Lead to massive, probably unprecedented money laundering. Harmed companies that made actual progress toward developing chips domestically (who were "outcompeted" by fraudsters).
Destruction of private education industry to help against exam abuse. Exam abuse didn't stop (arguably got worse). Education is now an increasingly criminalized, shadow economy.
Ban on videogames and some related entertainment activities for underage. Didn't change schoolchildren habits. Did deal a massive blow to domestic entertainment, partially forced it into shadow economy as well.
The olympics. Stopped all heavy industries around Beijing for a couple of months. Didn't really improve anything. Harmed public image of the country more than improved it. Coupled with lockdowns - many companies didn't recover.
Forced integration of Hong Kong into mainland. Didn't really help any. Hong Kong is now more or less redundant and is experiencing drawn-out economic and population collapse which will only accelerate.
Political and social pressure applied to foreign companies (automotive, IT, electronics, industrial, etc) to promote domestic product. Domestic product didn't really improve. Many of foreign companies are downsizing or leaving.
And the -elephant- supermassive whale in the room: the zero-cvd-policy. Failed to save lives completely and utterly. Devastated the economy like nothing since Mao. Damaged investor confidence severely, forced huge outflow of foreign companies and capital which will likely continue. Caused energy crisis and contributed to food shortages. Made a large portion of population poor among rising prices and employment shortages. Caused social unrest. Was lifted suddenly and without warning AFTER the most severe permanent damage was already done. Reversal failed to improve economy yet, and killed millions.
Don’t forget it also kills it own tech industry, remember Didi? Its real estate bubble is another huge potential problem.
What a sb
Cookie cut and paste smearing China propaganda. The dynamic covid policy didn’t save lives. All the world covid deaths statistics expose this lie. Common prosperity is to tackle the income inequalities and more resources goes to the rural China. Bubbles regardless its real estate, banks or others are part of capitalism, proactively popping the bubbles are better than let the bubbles grow out of control eg: 2008 world financial crisis starts in the US, the 20 years of one child policy implemented urban China, semi in rural (if the first child is a girl, (families are allowed to have a second child), at the time, it’s logical since the boomer generations have at least 4 to 5 kids and were not able to feed them. As for the crackdown of after school education facilities and video games, it’s the parents who are demanding it. People need to look at things with a more balance perspective will see things more objective.
Lol cope
I can imagine Peter Zeihan scoffing and sighing at this hahah
I wish someone would properly define 'economic collapse' in this context, seems like there are wildly different interpretations depending on who is talking. Also, seems to me people from countries that are very dependent on China as an export market tend to lean towards denial China has significant, existential problems...
Economic collapse is when a significant portion or a majorly of jobs (especially critical jobs) stop being done in such a way that they can’t be started back up easily.
Say if trucking and trains got shut down due to a lot of the workers staging a revolution, getting caught in the crossfire or being scared of getting killed. Without transport other industries can’t get raw materials or export so many jobs become impossible to do and it wouldn’t be easy to fix because of the civil unrest.
@@jukio02 what do you mean by fine? With millions of covid cases and thousands of deaths per day, a burst property bubble, reduced export advantage, low cost manufacturing compilation, declining growth, religious genocide and all the other problems, it is not fine.
It’s not going to collapse of course or fall by a large amount because it is still the second biggest economy and while the CCP are terrible people, they are at least fairly competent.
@@ewanlee6337 why are they terrible exactly ?
Every country has significant problem. The problem is that you guys only focusing on the bad side of the story all while ignoring the good side. That is why you think China will collapsed when in fact, it is far from it.
@@Rex-ww4cw did you read my comment? I said it won’t collapse.
Yes every country has significant problems but most of them aren’t killing off ethnic minorities or suppressing their own people.
I was stunned when I heard him say that East Germany was a part of the Soviet Union. That was never true. Even Saturday Night Live once famously mocked East German Olympic athletes - which were not the same as Soviet athletes.
The USSR did not include east Germany. That was the Warsaw Pact
I'd argue that part of why the USSR collapsing didn't tank the world economy is because despite what EE seems to think, neither they or their satellites magically stopped existing afterwards. They continued to do business as best they could given the turbulent situation, so of course global GDP kept rising. They were now doing it more efficiently.
Short of a country being nuked off the face of the earth that’s true for pretty much any economic collapse
lol i think you need to read a bit more about what happened to the Russian economy in the 1990s - it was not more efficient
Except they didn't continue to do business. That's why the economy collapsed...
6:10 I find it odd that graph jumps up at 2020 when there's talk about corporations firing sizable chunks of their staff and other such entities getting ready for another recession.
I've heard Canada is going to struggle for the next 50 years, though I find that hard to believe.
At the point in the video where you talked about moving your business in the event of economic collapse (to the point of no electricity) in Australia, the map shows your business being moved to Europe. Is this indicative of where you'd want to move in the event of that? And if so, do you have a particular country or region in Europe you'd want to live in?
My guess is he'd pick Ireland, ranks quite high on his leader board and is very Anglo sphere since the Irish language is not really the main language anymore
That was just a graphic
9:55 .... did he just insert a 69 joke into Belgium economic figures?
I don't want China's economy to collapse--just for China to dramatically reform its internal and external economic, social, military and political practices.
Yeah, reform would be better for everybody.
@@garethbaus5471 Collapse is more likely thought.
I would like China to stop commiting genocides, stop violating human rights and stop spreading agressivity throughout the world. I would also want them to return freedom to Tibet and Hong Kong.
@@samuela-aegisdottir that too
@@samuela-aegisdottiryeah, and I would like the west to get off their high horse and stop pointing fingers while they do shtt far worse, but we can't all have what we want, can we?
Well, Soviet Union didn't actually included East Germany : ) .
I think one of the consistent fallacies western media or content creators have when looking at the Chinese economies, or India or other developing economies, is that they look at it through a "developed economy" lens, assuming everything is run with a certain order and formality, underestimating how informal their economy actually is.
Just as an example, In developed economy, when a person or company or entity can't pay debt, they go bankrupt, and a specific process will follow. This formality governed by law can be rigorous and therefore disruptive. But in China, companies can halt their workers salaries or stop paying their suppliers for months or years while the entire supply chain seemingly functions normally. This is all due to the informality of how businesses are done in China. Corruption, nationalism, social pressure, lack of law enforcement, abundance of exploitable population all contribute to an almost infinitely flexible economy that can and will do anything to survive.
If a company collapses in the developed economy, its workers and employees has no income and its products stop being produced as the system sort out its physical/intellectual properties. If a company collapses in China, there will be no change in the general economy as another entity will start producing exactly the same thing, disregarding any laws on intellectual property protection/worker's right/environmental regulation/any law whatsoever, working overtime to replace it, and the government will help, because they profit from it too. And this isn't a new thing, this has been happening since the establishment of the current CCP government.
I think everyone just want the regime to collapse, not economy. There has been plenty examples before when a dictatorship regime collapsed, the economy was mostly fine, and got better in the long run. South Korea, Taiwan, Singapore, etc.
I agree that the informal economy doesn't get enough attention. To EE's credit he did dot he Chinese Tax video covering this.
What do you mean Singapore?
Okay Economics Explained, you read my mind. I literally searched UA-cam yesterday for videos titled this and nothing what I was looking for came up. Your timing is impeccable!
I have a feeling this video will age well….
"Nobody can predict the future, least of all economists". Side note though, I agree with our Economic Aussie. I don't think there's going to be a fast decline in China's economy unless there's a suitable black swan. They'll do everything they can to stabilize the situation. Nothing is off the table when it comes to China. They can bleed but they won't die a quick death.
I Don't know will it Age like a wine or not but whag iam thousand percent sure is p@jiits can never ever become the superpower let alone asian power
A subtle title for one of many China collapse UA-cam content
A poll for EE’s economics-inclined audience:
Do you believe EE when he said China is going through an unprecedented wave of protests and protestors are calling for change at the highest level of government.
Please answer in Yes or No and feel free to leave a reason but refrain from replying to other’s comment to avoid turning into a thread war
i dont know but i dislike his way of putting out a statement like that while the scale of this protests is questionable at least
No
Definitely not. The vast majority of the protests were as a result of lockdown fatigue. They were certainly not interested in a political revolution. Once the lockdown has been lifted, most ppl were happy to go about their day to day activities.
Yes I believe him, I'm a bit of a sheep though
no, he's a fool
Was the opening to this video recorded a long time ago? I thought China had opened up almost fully now.
it has, uploader's got egg on his face
I'm not from Australia, but happen to be in Australia while watching this video. Does my consumption count towards the domestic market, or is it a tourism export?
It's a tourism export, which contributes towards the Australian domestic GDP
Have you compared the cost of living and regulations from where you are from?
@@tobybrown1179 I'm from neighbouring New Zealand, and actually have Australian working rights from a reciprocating agreement. Some aspects of work are more regulated in Australia, with the need to get an RSA or White card for fairly basic jobs. Wages are generally higher per hour, but a lot of the work I've found is very casual with a low amount of hours (or none) available each week, where as in NZ I had a minimum number of hours guaranteed each week for similar work. Due to this I've spent far more of my NZ savings then I've earned in Australia. Taxes are lower, due to the tax free threshold, and GST being excluded from groceries. Cost of living is a little higher, especially accommodation, although groceries are pretty similar if not a little cheaper in Aus. Eating out is more expensive, probably due to those higher wages. After I leave next week, I will have spend 3 months in Australia.
it's an export as you are bringing money from outside of Australia and putting it in the Australian economy
@@MsJubjubbird Except in the specific case of watching the video, I'm not spending anything (excluding a little bit of electricity and data) so it's advertisers that are paying. I generally get some local aussie ads, some ads that have followed me from New Zealand, and some ads from multinationals. So there is some domestic ad spend, and some exported ad spend.
4:35 The Soviet Union also included East Germany?
Thats news to me,mate
You might also have added a comparison to a former #2 economy, striving to be #1, Japan. Also, the COVID global economy is a real-life example of a China collapse. Their shut down cut the import spigot for other countries and the export spigot to China.
Mix of capitalism and socialism like west north Europe & countries like China follow ?
Is that system is better over capitalism
@@bharatkapoor4062 Western/Northern Europe and China has significantly different economies. China is esentially a command economy with companies, Europe is esentially a set of market economies with welfare states.
China's model seems to be the better than capitalism but worse than socialism when it comes to stability and growth (when compared with the USSR and the US), but lacks civil liberties and is led centrally. This means that any bad decision the Chinese elite makes can be really detrimental.
Europe's model is one that supports the status quo, and simply cannot be implemented by any other culture. There are many requirements for a healthy democracy, from a nuclear family structure to a cultural recognition of civil rights. Those states probably won't make bad decisions, but they will also make decisions slower. They make up the most livable places in the world with the best education systems in the world, the best healthcare systems in the world, they're the freest in the world... the list goes on.
Tldr: Europe's model creates heaven on earth but is really difficult to implement. China's model is good for growth but doesn't provide civil rights. They're both better than, say, islamism.
@@MimOzanTamamogullar but don't you think people need food education healthcare over civil liberties especially in poor countries
@@MimOzanTamamogullar islamic system failed already it is surviving because of oil in middle east
@@MimOzanTamamogullar Every country in the world has nuclear families. I don't think that criteria is needed.
Good one
See, here's the thing, while China was in strict COVID measures for 3 years, in 2 of those 3 year due to these measures China barely had any COVID outbreaks. Most of Chinese people went about work, study and play relatively the same for 2 years.
So China dodged the Original and Delta waves, the more deadly variants. When US's death count went over 1 million, China wss thousands. The Omicron is maybe 10+ times more infectious, and thankfully much less deadly as well.
As usual, videos like this and reporters cherry pick and paint China as extreme to fit the western narrative and to justified its provocations to destabilize the world
"If ever there was an economy that could be neatly removed with little interruption to the rest of the world, it would have been one that lived behind the Iron Curtain."
That ignores all the countries that were also behind the Iron Curtain, or otherwise allied to the Soviet Union.
"...leaders, people have no direct say over..." that's every country in the world, no matter how "democratic" it considers itself.
4:43 pretty sure the soviet union didn't include east germany.. it was a separate country though definitely aligned with the soviet union
Oppressed Chinese people: should we upheaval?
EE: probably not, in the west we like our high living standards.
That's not at all what he is saying. Not every change has to come from a economic collapse.
What do you care about oppressed people you keep bombing countries
As if anyone care about oppressed ppl in China. If they collapse and millions of refugees heads west, we all know they'll be given fingers just like Afghans
@@rongarcia2128 do you?
East Germany was not Part of the USSR, But of the warsaw pact. Same for poland, hungary..
I know you meant to say "Taiwan" at 12:48 but it sounded like "Thailand". 😅
Considering the current human suffering, just directly from China, not even indirectly, an economic collapse and a new regime born from the frustration over the immense centralized control would probably result in a good outcome overall.
Well, as a economics content youtube channel, the fact that you mixed up Taiwan and Thailand out loud even with a picture with Taipei 101 and pre-scripted lines at 12:46 is AMAZING.
Ahhhh yes, the addict reasoning why he needs his drug.
This video is heavy cope.
agreed
Wall Marts would be empty of most everything.
Thanks to COVID, many companies (if not most) have already started to diversify supply chains. That said, a Chinese collapse wouldn't be that devastating to the overall world economy... there would be major disruptions, but within 18-24 months, things would normalize. China is a producer of goods, a producer that is losing its global importance every year that passes.
It would be a huge disruption to the global economy (remember covid shortages?) but the economy would adapt over time.
This smug and naive arrogance no wonder your name is William
@Firas Ajoury ROFL! Next time, maybe try arguing facts, theories, or specifics. Childish personal attacks only get you nowhere and only demonstrates ignorance.
@@samuela-aegisdottir I do kind of believe my comment was there would be major disruptions, but I think we'd all survive using the same cell phone or laptop an extra year or two.
Great video! Pretty sure you meant Taiwan at 12:47 not Thailand
He did say Taiwan but pronounced it a bit odd like "Thai-hwan"
You should make a video of a world without USA instead. 🤣🤣🤣
Hey, forget all that noise about 'China will collapse.' That title's been gathering dust on UA-cam for 13 years now, and you know what? China's still standing tall, rock-solid as ever. Just like how the China lander touched down on the dark side of the moon like a total boss.
China isn't collapsing
We all know that
1:48 "the reason we pay attention to China is because we are dependent on it." ....total BS
The device you just typed this comment on couldn’t be there if it wasn’t for China
you propably typed this on a device made in china
@@nicodesmidt4034 I assume if it wasn't China it would have been made in another developing country which wouldn't make us dependent upon them necessarily
@@hendrik2792 I checked, HP's components are made in Philippines, Malaysia and assembled in US for US market. my only "beef" with his video is the claim of other countries dependence upon China... I guess I took it as without China we wouldn't have something. Maybe the dependence he references is simply for cheap labor (something that has now moved to other countries like Vietnam)
@@jeffbee6090 yes, the US is a bit different, although it could be argued that more common parts, such as chips, find their way into, say an iPhone, within China. No China no iPhone. And yes Vietnam can take some of it, but it will take time and won’t take all
3 decimal places in the GDP table @4:36 makes the dot look like another comma, two decimal places would have been sufficient and clearer, also why not right align a list of numbers?
Do we really "need" China tho? I mean Vietnam, India and Mexico can easily fill the gap China will leave.
If anything China needs to work harder to show us they still deserve to be the world's workshop.
They can't. Vietnamese communists are even more corrupted than their chinese counterparts. Also, in those countries infrastructure is underdeveloped and the governments except those in Vietnam are of flawed democracy. In Mexico, they don't have the economy of scale power, where nobody wants to lower their wage to get more revenues. Sorry but it will take those countries a long time. I was born and bred in one of those countries by the way.
wait an endian?
@@manishgrg639 a pakistani who doesn't have toilet, so he came in youtube to do his morning stuff
@@manishgrg639 anyway, did you get your dinner today?
@@mainakmandal2003 yeah i had a curry
4:43 The Soviet Union did not include East Germany. It was a satellite state, but never a constituent republic of the USSR. It's also not included in Soviet economic statistics.