The Circular Flow Model of a Market Economy

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  • Опубліковано 3 гру 2024

КОМЕНТАРІ • 211

  • @monpaps1
    @monpaps1 10 років тому +112

    wish all teachers could xplain like this, indeed teaching is a Art..

    • @reasonerenlightened2456
      @reasonerenlightened2456 3 роки тому

      ==========< There is the owner and the employee.>==========
      Ultimately, the 'Employee' makes the products, takes those products to the market, sells the same products, he made, to himself and finally he pays a fee known as Profit to some 'Owner' for a permission to own the same products he made and sold to himself.
      The owner gets to collect profit for doing nothing.....and many call that 'earning' instead of 'taking'.
      The way forward to a better society is to increase and maintain a strong minimum purchasing power of the end-consumer using the magic formula.
      (Magic Formula: 'Your minimum Purchasing Power' = 'minimum wage' + 'Benefits payments' - 'Cost of dignified living from cradle to grave' - 'Taxes, fees, penalties')
      Firms are no more "legal entities" than your back-up power generator is a "legal entity", and it does not matter if it runs on fossil fuels or if a bunch of humans must run on treadmills all day. Firms are just property and should be treated as such by the laws.
      Save the minimum purchasing power of the human citizens instead of saving businesses/firms.

    • @SebastianJimenezOwO
      @SebastianJimenezOwO 3 роки тому

      @@reasonerenlightened2456 You think businesses, society, or the government should pay everyone’s taxes…? If that somehow worked it really be the ‘magic’ formula

    • @reasonerenlightened2456
      @reasonerenlightened2456 3 роки тому

      ​@@SebastianJimenezOwO
      If we aggregate all humans into one individual then he/she/it would be an Employee for a business, and an owner of the same business and government and a voted for that same government all at the same time.
      Then, what happens depends on the minimum purchasing power of that aggregated individual i.e. stuff can be built, rules can be set to follow, etc. but ultimately the minimum purchasing power must exist first before anything can happen (like having oxygen and nutrients in the blood stream before any movement or thought could exist.)

    • @poritoshpall4947
      @poritoshpall4947 3 роки тому

      @@reasonerenlightened2456 2

  • @babyhokzz
    @babyhokzz 8 років тому +37

    9:21 Money is flowing clockwise.
    Goods & Services Counterclockwise

  • @nofear519
    @nofear519 11 років тому +98

    Thanks! You teach better than my professor.

    • @reasonerenlightened2456
      @reasonerenlightened2456 3 роки тому

      ==========< There is the owner and the employee.>==========
      Ultimately, the 'Employee' makes the products, takes those products to the market, sells the same products, he made, to himself and finally he pays a fee known as Profit to some 'Owner' for a permission to own the same products he made and sold to himself.
      The owner gets to collect profit for doing nothing.....and many call that 'earning' instead of 'taking'.
      The way forward to a better society is to increase and maintain a strong minimum purchasing power of the end-consumer using the magic formula.
      (Magic Formula: 'Your minimum Purchasing Power' = 'minimum wage' + 'Benefits payments' - 'Cost of dignified living from cradle to grave' - 'Taxes, fees, penalties')
      Firms are no more "legal entities" than your back-up power generator is a "legal entity", and it does not matter if it runs on fossil fuels or if a bunch of humans must run on treadmills all day. Firms are just property and should be treated as such by the laws.
      Save the minimum purchasing power of the human citizens instead of saving businesses/firms.

    • @praxym9293
      @praxym9293 2 роки тому

      Same here

  • @drevil530
    @drevil530 6 років тому +9

    Sir, you are a gentleman and a scholar!! Thank you for simplifying the concept of Circular Flow.

  • @joegonzalez6211
    @joegonzalez6211 9 років тому +4

    Jason.. From the bottom of my heart, thank you!!! With watery eyes

  • @stoneg5500
    @stoneg5500 4 роки тому +17

    I went a whole semester trying to understand this just to understand it from watching 10 min of a UA-cam video. Thanks

  • @Bonari11
    @Bonari11 2 роки тому +1

    Explained clearly and in a simple way how the Circular Flow Model works. Thanks, Jason!

  • @silikamokgotlhoa7193
    @silikamokgotlhoa7193 10 років тому +3

    for a person like me that does distance learning your lecture came in very handy. many thanks...

  • @jamie4king
    @jamie4king 7 років тому +4

    Your videos are also being linked as supplemental material in classes from the University of Alaska. Thanks for making such great videos!

  • @irakliiakobishvili4386
    @irakliiakobishvili4386 10 років тому +3

    In this one lesson I have learned more than in four years at the University.

  • @elzerorbeso5789
    @elzerorbeso5789 10 років тому +3

    Thank you! I am not an economist but your lecture helps me a lot in my teaching.

  • @miekecoetzee49
    @miekecoetzee49 3 роки тому +2

    Thank you so much! I tried to understand it by my self and struggled so much! This is straight forward! Thanks Jason!

  • @kceey_dc
    @kceey_dc 2 роки тому +2

    Finally SUBSCRIBED!!! You good at Economics man🔥🔥🔥🔥🔥

  • @925NC
    @925NC 12 років тому +3

    studying for a macroeconomics test, thank you! please make more!

  • @MostBeautifulPIaces
    @MostBeautifulPIaces 10 років тому +21

    THANK YOU YOU SAVED ME FOR MY FINAL TOMORROW!!!!

  • @amandaosborne7721
    @amandaosborne7721 10 років тому +1

    Much better explanation than my text. Thanks!

  • @celarz
    @celarz 4 роки тому +25

    Everyone in the comments says: WOw! You saved me for my final tomorrow! I dont have finals... I'm in grade 8... Why did my teacher make me watch this...

  • @YM-CRAFTY
    @YM-CRAFTY 7 років тому +2

    THANK YOU AND I REALLY APPRECIATE YOUR EFFORT, IT WAS A LITTLE COMPLICATED FOR ME BUT YOU MADE IT LOOK SO SIMPLE AND EASY.

  • @JayKabin
    @JayKabin 2 роки тому +2

    love the song at the beginning

  • @VKDiaries
    @VKDiaries 8 років тому +1

    Thanks for explaining it in simple words. Appreciated.Concept is so beautiful

  • @nilofar728
    @nilofar728 Рік тому +1

    Thank you so much for this video, you teach way better than my lecturer.

  • @proplib
    @proplib 8 років тому +17

    Towards the the end the flows (clockwise and anti-clockwise are mixed up).

  • @levimisilim6415
    @levimisilim6415 9 років тому +2

    thanks a lot..this video had helped me understand clearly the market flow.........
    God bless u sir.
    i think i'm ready to report this assignment to our class on monday..
    thanks again.

  • @arnoldkanarek3585
    @arnoldkanarek3585 5 років тому

    Best video on the circular flow that I have seen.

  • @simon2912
    @simon2912 5 років тому +2

    Great video, thanks for putting this together. Really clearly explained and illustrated.

  • @maitumelomemorylepodisi1929
    @maitumelomemorylepodisi1929 3 роки тому +1

    This was so helpful and I understood better thank you Mr Welker

  • @richardkalembwe1328
    @richardkalembwe1328 4 роки тому +1

    this is an awesome explanation of circular flow of income model

  • @KyleGoMthw
    @KyleGoMthw 3 роки тому +1

    This is really helpful. Thank you for an insightful discussion of the topic!

  • @RealityStar9
    @RealityStar9 11 років тому +2

    Great presentation. We all live this everyday so its nice to see it simplified in such a way. Of course, there are a lot of variables but that would be a very long video. lol

  • @manceseed
    @manceseed 5 років тому +1

    thank you so much! your video was the only way I understood this topic!

  • @yinzjagoffs
    @yinzjagoffs 11 років тому

    I love it when I randomly click a video on economics and see someone with an an-cap flag used as their avatar. A much welcomed sign of the times.

  • @amirwagih4797
    @amirwagih4797 4 роки тому

    this is a video from 2012 but man you nailed it , thanks alot.

  • @glenhael
    @glenhael 3 роки тому +1

    Awesome as always Jason!!!

  • @justinoboyle5767
    @justinoboyle5767 5 років тому +1

    Thanks so much Jason. This was very useful

  • @looley_leewilliams337
    @looley_leewilliams337 3 роки тому +1

    Thanks so much for this video I'm about to write a test and this gave me clarity❤

  • @ivalinapasse2469
    @ivalinapasse2469 6 років тому

    That was a sure fire way to break Down the flow of money

  • @sonuponu343
    @sonuponu343 2 роки тому +1

    Very helpful 🙏❣️

  • @ladradepaz2888
    @ladradepaz2888 3 роки тому +1

    This helped me a lot, you explain so well

  • @jackmarshall5911
    @jackmarshall5911 4 роки тому

    I know this is an old vid but this helps me out a lot. thanks!

  • @sarahlmarcelin5424
    @sarahlmarcelin5424 10 років тому +2

    I hope that my professor would be as wonderful as he is

  • @Shibadoge
    @Shibadoge 6 років тому

    money really does make the world go round

  • @twahrah
    @twahrah 12 років тому +1

    Thanks you for posting! This helped me so much.

  • @5stardagger
    @5stardagger 4 роки тому +1

    awesome lesson, i understand it more clearly now, much appreciated Sir

  • @JUSTFORFUNJAZZ444
    @JUSTFORFUNJAZZ444 2 роки тому +1

    It helped alot❤️❤️

  • @keepingupwithmimi5675
    @keepingupwithmimi5675 4 роки тому

    Omgeeee thank you soo much , you have cleared the clutter in my brain

  • @danielschannel1992
    @danielschannel1992 5 років тому

    Yes. My question is what are the goods and services that are being bought and sold.

  • @masausozulu4812
    @masausozulu4812 4 роки тому

    this an awesome explaination of circula flow of income model

  • @jobethcrafton1119
    @jobethcrafton1119 2 роки тому +1

    great video

  • @rafiymellow1364
    @rafiymellow1364 3 роки тому

    wow..amazing..now i understand it clearly👏..thank you

  • @babylynsalanga9868
    @babylynsalanga9868 10 років тому +1

    truly helped me in my report.. thank you so much

  • @ramibecharalebfr
    @ramibecharalebfr 9 років тому +3

    I liked your video. Till the end. I don't think i happiness equates consumption. I believe that through savings a person can seek to maximize his monetary as a end of itself. The goal being a rise in social status or a preparation for children etc.

  • @LucisFerre1
    @LucisFerre1 11 років тому

    Exactly. Separation of free market and state.

  • @Kilimicore
    @Kilimicore 7 років тому

    Thankyou! u r much better than my Prof!

  • @brainisnotbraining
    @brainisnotbraining Рік тому

    Thank you so much for explaining.

  • @charlies77777
    @charlies77777 11 років тому

    Sorry about asking a stupid question, thank you for explaining it to me.

  • @proplib
    @proplib 8 років тому +1

    Entrepreneurship (that earn profit) should also be regarded as a vital resource (factor of production) in the process. Without entrepreneurship nothing will happen.

  • @ViJocelyn
    @ViJocelyn 11 років тому +2

    What song is that in the beginning?

  • @safgenimac898
    @safgenimac898 5 років тому

    Ive got a Final test 4 days from now Thanks I saved Meh!

  • @economyxai
    @economyxai 2 роки тому

    Great Video. Small point, you mis-spoke at 9:12 when you said money flows counter-clockwise and goods & services flow clockwise. It's the other way round.

  • @taylorstrasser9666
    @taylorstrasser9666 8 років тому +1

    THIS HELPED ME SO MUCH THANK YOU!!!

  • @ashleyanddavian
    @ashleyanddavian 11 років тому

    great video, i understand stand this concept so much better

  • @JasonWelker
    @JasonWelker  12 років тому +2

    Interesting opinions!

  • @kristychan7789
    @kristychan7789 9 років тому +3

    THANK YOU SO MUCH FOR SAVING ME

  • @proplib
    @proplib 8 років тому +2

    Definition of a market can be expanded to include that it is a process by which prices are established - not just a place.

  • @chepah69
    @chepah69 4 роки тому

    Thank you for making this video.

  • @kikimimi10101
    @kikimimi10101 8 років тому +28

    So money CAN buy happiness

    • @zenandesandisosixaba5995
      @zenandesandisosixaba5995 8 років тому +3

      nope..., Consumption leads to happiness, only according to economics..

    • @carlosb1
      @carlosb1 7 років тому

      their is no money without work, and their is no work without health

    • @bigivel
      @bigivel 7 років тому

      Consumption of what you need, desire and demand leads to happiness

    • @EpicBaah
      @EpicBaah 6 років тому +2

      It can, but not forever. -> hints to the principle of diminishing marginal utility.

  • @gallegom58
    @gallegom58 11 років тому

    thanks i got a midterm tomorrow :)

  • @Zztop514
    @Zztop514 10 років тому

    Thanks for that!
    Student from Dawson College!

  • @baloney6893
    @baloney6893 4 роки тому +3

    Well so I simply could of just skipped all my online classes and just watched this video and got an A plus lol like if you agree

  • @R123k4
    @R123k4 5 років тому

    Ohh thank u soo much for teaching in such a nyc way ( will really helps a alot in midterm few days far )

  • @stellaunya5192
    @stellaunya5192 5 років тому

    Thank you so much. Now I understand.

  • @BoppanaAkashAP
    @BoppanaAkashAP 5 років тому

    you just said it soo damn easily thank you very much

  • @luffylaw1996
    @luffylaw1996 10 років тому +1

    @Jason Welker I have a question sir, What if the entrepreneur owns its own land? Would it be possible that the entrepreneur will only acquire Human Resources and Capital from the Households?
    BTW, this is a good video. :)

  • @thaotranphuong8678
    @thaotranphuong8678 10 років тому

    Thanks ! It helps me open my mind

  • @ratonelneilcyrusg.
    @ratonelneilcyrusg. Рік тому

    clearly explained, ty

  • @vijjiapple
    @vijjiapple 8 років тому

    Thankyou so much!! makes so much sense to me!

  • @pavankambo8681
    @pavankambo8681 10 років тому

    I wish I had a prof like you

  • @akg7612
    @akg7612 7 років тому

    Do you have any sources you can refer to?

  • @akirajournals
    @akirajournals 7 років тому +1

    I'm a little confused, what you explained in the diagram and all, money is flowing clockwise while goods and services flows counterclock wise so why did you say the opposite of it??

  • @Soyo.Kaze.
    @Soyo.Kaze. 2 роки тому

    My text book video made this so much more complicated than need be

  • @amrsamir3693
    @amrsamir3693 11 років тому

    Do u have a 1 explaining philips curve

  • @AverageDoctor345
    @AverageDoctor345 5 років тому

    Excellent job

  • @chldndyd21
    @chldndyd21 10 років тому

    Great video thank you!

  • @craignielsen9173
    @craignielsen9173 5 років тому

    Great video.

  • @ajbeew2257
    @ajbeew2257 2 роки тому

    Thank you so much you Saint

  • @tierneyeducation
    @tierneyeducation 2 роки тому

    Great content!

  • @tbcfc
    @tbcfc 6 років тому

    Very Helpful
    Thanks A lot.🤙🏻

  • @pallaksinha2679
    @pallaksinha2679 6 років тому

    Please give me ideas to convert this concept in working model

  • @CynthiaTToney
    @CynthiaTToney 8 років тому

    Enjoyed the video! Hope it helps destroy that catch-phrase "trickle-down economics."

  • @gudgirl_666
    @gudgirl_666 8 років тому

    THank you, very helpful explanation

    • @reasonerenlightened2456
      @reasonerenlightened2456 3 роки тому

      ==========< There is the owner and the employee.>==========
      Ultimately, the 'Employee' makes the products, takes those products to the market, sells the same products, he made, to himself and finally he pays a fee known as Profit to some 'Owner' for a permission to own the same products he made and sold to himself.
      The owner gets to collect profit for doing nothing.....and many call that 'earning' instead of 'taking'.
      The way forward to a better society is to increase and maintain a strong minimum purchasing power of the end-consumer using the magic formula.
      (Magic Formula: 'Your minimum Purchasing Power' = 'minimum wage' + 'Benefits payments' - 'Cost of dignified living from cradle to grave' - 'Taxes, fees, penalties')
      Firms are no more "legal entities" than your back-up power generator is a "legal entity", and it does not matter if it runs on fossil fuels or if a bunch of humans must run on treadmills all day. Firms are just property and should be treated as such by the laws.
      Save the minimum purchasing power of the human citizens instead of saving businesses/firms.

  • @r.a.p5121
    @r.a.p5121 4 роки тому

    Money is flowing clockwise and resources and Goods are flowing anti-clockwise

  • @mohaljassem9494
    @mohaljassem9494 7 років тому

    Thank you so much, that was helpful

  • @etepip
    @etepip 2 роки тому +2

    amazing video im seeling feet pics for an spare bag in gpo

  • @Vivenk88
    @Vivenk88 5 років тому +1

    I like how he just copy-pasted the money at 5:06, if only I could do that LOL

  • @ichigoxpsy
    @ichigoxpsy 3 роки тому

    Very good video

  • @generalsongs2495
    @generalsongs2495 7 років тому

    this is very helpful but in my book there is another "factor?" the taxes and foreign sector

  • @shubendubikashmajumder7295
    @shubendubikashmajumder7295 9 років тому

    thank you very much.............

  • @mgkkkkk123
    @mgkkkkk123 10 років тому

    thx , best explanation..!

  • @tahaezz2127
    @tahaezz2127 3 роки тому

    I wish u explain CFA material.
    Pleeeeeeeeeeaaaaaaassse.
    🙏🙏🙏🙏

  • @thynisia396
    @thynisia396 7 років тому

    Thank you Sir.