*Main outtakes of this lesson* 1) _Macroeconomics_ - the study of the entire economy as a whole rather than individual markets. 2) In general policy makers try to achieve three goals: a. Keep the economy growing over time (gross domestic product - GDP) b. Limit unemployment (unemployment rate) c. Keep prices stable (inflation rate) 3) _GDP_ is the value of all final goods and services produced within a country's border in a specific period of time, usually a year. a. Transactions where nothing new was produced - don't count as GDP. b. Also not including illegal activities. c. Measured in dollars. d. _Nominal_ GDP is GDP not adjusted for inflation. e. _Real GDP_ is GDP adjusted for inflation. 4) _Recession_ - when two successful quarters, or six months, show a decrease in _real GDP_. a. _Depression_ - a severe recession. 5) _Unemployment rate_ is calculated by taking the number of people that are unemployed and dividing by the number of people in the labor force, times 100. a. _Discouraged workers_ - unemployed people that were looking for work, but have given up. b. There are three types of unemployment: - _frictional unemployment_ - the time period between jobs, when a worker is searching for, or transitioning from one job to another. - _structural unemployment_ - unemployment caused by lack of demand for a worker's specific type of labor. - _cyclical unemployment_ - unemployment due to recession. c. _Natural rate of unemployment_ - the lowest rate of unemployment that economy can sustain over a long period. 6) _Inflation_ - an increase in a currency supply relative to the number of people using it, resulting in rising prices of goods and services over time. a. _Deflation_ - a decrease in general price level of goods and services.
Here's the thing about this series: you don't need to tell me in every episode that economics are not boring and actually exciting. I get it, I clicked on the video, I'm watching the show, and you're doing a good job. There is no need to remind me of this.
Inorganic Vegan Even if that's true, I'm assuming that those kids who are forced to watch these videos in class are at least 14 years old. Yet the tone of these videos is often as if they're directed at 6 year old kids. Past some age, even "mere" school kids know that they're being patronized and treated with contempt.
+TheBurgerkrieg Agreed. I find the tone of this one a little annoyingly condescending. I feel like the attempted gags are pretty flat, and way too common, as well. I hope the later ones drop the act a bit as they go on, this was never the case with the other series. They just present the info and make a joke where it seems fun, rather than trying to....i dunno, calm your non existent fears about broccoli while you're fucking eating it.
Alot of my friends watched this whole series about a year ago, and now they all have detailed economic arguments that i can't take part in. It's time for change.
Worth noting: the Latin motto on the archway Adriene and Jacob drive through in Thought Bubble, "noli oblivisci mirabilis esse" translates literally as "do not forget to be wondrous," or, more colloquially, "don't forget to be awesome. Not a dead language after all.
there's a book of Mankiw/Taylor, really easy to read. but I don't have the english title. you can make the whole book with approx 700 pages in 2 full days
Insisting that the topic is exciting simply distracts from the fact that this topic is, indeed, interesting. I know you guys have probably already produced and filmed many of the episodes already, but you don't need to convince me to watch, because I genuinely want to learn.
Kelsey Gertje at first I thought maybe it was aimed at kids then I realized children don't give a crap about economics. lol No clue why they speak as though they are teaching a kindergarten class. Very annoying.
I'm not here to criticize. I agree with everything you say about their delivery. I sincerely appreciate the knowledge they're giving me. Which is why I wish they would stop trying to convince me to be interested.
Love these courses. I studied economics at university for 3 years and we learnt absolute garbage with no real world application. I hated economics when i left. This channel is bringing back my passion for the subject and the reason why i got into it in the first place. Bravo !
The economy is bad because the [name of political party I don't like] are in power. If only we did what [a radical politician on the same side of political spectrum as I] proposed years ago, it would all be fine. But what can you expect when [a media outlet I don't like] manipulates voters into making irrational decisions. Also, it is somehow a direct effect of [a particular set of religious or philosophical views I don't like].
+TapOnX Yeah, that makes sense that this view would come from a [derogatory term that oversimplifies your worldview]. Meanwhile, in reality, [biased evidence from pet information source] tells us all we need to know your "proposal." If you had a brain, you would know [conclusion based on faulty assumed premise] but we all know [derogatory term again, maybe shortened or combined with generic insult] don't have brains. Take some time to do research. [Dismissive farewell]
+TapOnX Plug in Repunlicans, Bernie Sanders, Fox news, and Conservative Ideology and you have an accurate representation of America. Let the Flame War begin!
I have a test in my macro class tomorrow and I was so lost; watching this video has already made me feel a hundred times better about it. Thank you so much!
As an economics major, I love this way this course is structured with basic information. Two firm, real-life takeaways from this installment: 1) It's impossible to say definitively there is or isn't a gender wage gap because it's impossible to control for just gender, so people should give up the fruitless argument. I personally believe there is, but regardless, what we should do is work to ensure protections. 2) Economic growth is a balance so anyone who thinks the blanket solution is always to decrease government spending or control is simply misinformed.
My favourite market basket is the 12 days of Christmas basket- the price of: * 12 partridges * 12 pear trees * 22 turtle doves * 30 french hens * 36 calling birds * 40 gold rings * 42 geese * 42 swans * 40 milkmaids * 36 ladies dancing * 30 lords (leaping) * 22 pipers piping * 12 drummers The people are, presumably, employed for the average hourly wage for that occupation for 8 hours.
Ab Sir Yes they should definitely do this. Many people get this wrong. Often people will say that country X is better to live in than country Y because the GDP per capita is higher or they will say that country X has a bigger economy than country Y since the GDP PPP is higher. Both are wrong. When comparing the quality of life per citizen in a country you want to use GDP PPP per capita. When comparing the economies of countries you want to use real GDP measured in some standard unit (for instance the dollar).
xXSelastiosXx You seem like a smart guy. Can you tell me, precisely, what the difference between CPI and PPP is? Because when you think about it, the price level and a currency's purchasing power seems like it would be the exact same thing.
david21686 The two are actually related via a simple formula. Let's discuss CPI first. We start by constructing a so called market basket. By means of a survey we find out what a typical household needs per a certain time period (for instance 1000 liters of gasoline, 100 liters of milk, 250 cans of beer etc. a year). The cost of the market basket (denoted by CB) is then determined by multiplying the average price of the good by the quantity and adding this together (so simply how much this list of goods costs a household on average in that year). We then establish a base year, say 1970, and calculate the CB. We will denote this base CB as CB70 (70 as in 1970). The CPI in for instance 2014 (denoted by CPI14) is then given by: CPI14=(CB14/CB70)*100. So it's the cost of a market basket in 2014 divided by the cost in the base year times 100. This means that a value above 100 represents a rise in prices (on average) and below 100 a fall in prices (on average) with respect to 1970. If we now want to compare say 2002 and 2009 we calculate (CPI02/CPI09)*100=(CB02/CB09)*100. If this is say 88 we see that the same basket was more expensive in 2009 then in 2002. We conclude that the purchasing power declined 12% from 2002 to 2009. At this point we should note that CPI is country specific. It just tells you something about what the prices do in a specific country. If we want to compare countries we need PPP. PPP simply equalizes the basket of goods across countries. Here is how you find it. Suppose we want the PPP between France and the UK. Again we first need a base PPP. We pick a base year (let's take 1970 and denote it by PPP70) and calculate: PPP70=(CB70FR / CB70UK). The PPP in the year 2014 is then PPP14=PPP70*(CPI14FR/CPI14UK). In words, CPI measures the price of a selection of goods purchased by a "typical consumer" with respect to some base year. Tracking the CPI tells you how prices vary within a country. The PPP is a factor that when applies makes it so that the cost of the same basket of typical goods is equal. This is why it is useful when you want to compare the standard of living for average households since it is based on this typical basket of goods rather than the market exchange rates of currencies. It still has problems however since it is difficult to find equal baskets of goods in countries since the consumers buy different things (are you going to say that 1 bread is equal to 1 kg of noodles?).
xXSelastiosXx This information is delicious. My next question: Does the CPI account for the *quality* of a basket of goods over time? For instance, let's (hypothetically) assume the following: 1. a) In the year 2000, 90% of cars have 100 horsepower, and the other 10% have 200 horsepower. b) In the year 2015, 60% of cars have 100 horsepower, and the other 40% have 200 horsepower. c) While the average horsepower of cars have gone up, the average price of cars have gone up as well. However, the price of 100HP cars has stayed the same, and the price of 200HP cars has stayed the same as well. 2. a) In the year 2000, 90% of computers have 1GB of ram, and 10% of computers have 2GB of ram. b) & c) Pretty much the same thing as the car example, just replace "cars" with "computers", and "horsepower" with "RAM". Now, in this hypothetical, no individual product has increased in price, but the *category* that the product lies in has increased in price overall because of the increase in average quality. Would the CPI be able to account for the increase in quality in this scenario, or would it just say that there's inflation?
david21686 This is an exccellent question. I must admit that I don't know how the basket is constructed precisely but I think it does not account for quality. I think that they calculate how many cars a household has on average and what that costs and don't correct for the fact that an average car 10 years ago is worse than an average car today. I am not sure about this though so maybe someone else can answer this better.
Thanks for this episode! We put so much faith in our models and forget they can't cover 100% of the actual data. Like the unemployment rate not including workers who have given up but would be working if they had the opportunity. It's a good reminder that numbers can tell more than one story, especially if there's relevant data you aren't measuring.
I've watched the entire series twice but I keep coming back to this video because the animation of the car engine with its components is well, oddly satisfying. GDP is a very important and needs its own series imo. We should all know what we can do to contribute to or even stimulate the economy, especially for poor countries like mine.
You guys need to get over the whole "let's convince them economics is fun!" thing. Nobody who thinks economics is boring is watching this series. If they did, they wouldn't think it was boring. It just makes you guys seem really self conscious.
i watch crash course history,geography,government and politics,biology,literature 1,study skills,zoology, and economics and this was the first time i have ever actually seen Stan.😮
Some conservative politicians in my country use that and argue that more women being housewives means less unemployment - because they're not looking for jobs and are therefore not counted as unemployed, and their jobs can be taken by men. Personally, I think that's shitty.
At about 8:30 you say that unemployment is always inverse to GDP. But what of the scenario you mention in which machines replace workers? The GDP can raise while unemployment raises too.
***** I think maybe they mean just the cyclical unemployment - the third "bad" kind, not the first two "good" kinds - in the inverse relationship...or at least the overall total. If machines replace workers, the company can save money on labor costs and spend it elsewhere, which could create jobs elsewhere and balance itself out in the equation, so to speak.
In general jobs being 'taken by machines' doesn't reduce employment. Look at farming in the U.S., for example. In 1900 a large percentage of people worked on farms. The twentieth century produced many machines that increased farm productivity while reducing the farming population to about 3%. That's a huge drop in one sector's employment, but has had very little, if any, effect on overall employment.
Why is one of the primary economic goals to keep the economy growing over time? If our economy is supposed to express how we as a group access resources, wouldn't the achievement of this goal ultimately necessitate resource depletion (at least it would for any K-type species)? What is the rationalization for this goal assumption? 3:25 GDP encourages waste and lack of resilience, but we still use it as our primary indicator of economic success? 6:17 Why can't we update our measuring instruments?
Adriene's excitement and energy levels is what making this video and macroeconomics more interesting, and Jacob's outfit and teaching skills are breaking new highs on every video 😂
Jacob is really talking to fast but a very pleasurable course, both Adriene and Jacob are enthousiastic and they certainly succeeded in making it a pleasure to watch.
I'm 2 years late, but I just want you all who made this series possible know that I'm very thankful for all your efforts. Only after many years past my economics lecture in pre-U, this series made me realise how interesting and important they actually are. Can't thank you enough.
Xiao'sChannel Oh, herro I'm here to end the hate, and bring peace between all the Asian race. I mean Korean and Chinese? Their all really the same. I mean, we look the same right? We eat with chopstick?
Love it! Don't listen to those who say that your humor is childish and therefore stupid. It is childish, but it's just the right thing to smooth those complex concepts you're explaining to us ;)
If it wasn't for you guys, I'd never even have looked at expanding my knowledge when it comes to Economics. Thank you for wonderful and understandable presentations time and time again!
the rate of the guy's speech is insanely high. dude, lower your sugar and caffeine intake, your counterpart has a good pace. match it. this puts a dent in this well made video.
I hope this series will eventually cover Fractional Banking of the Federal Reserves. Just the literal root of everything wrong with this country and the world in terms of unsustainable economic policies so people can be aware of what's really going on.
SirChocula ... you'll be disappointed. Despite what many people say online, Fractional Reserve Banking is necessary for our economy to function. Most economists agree it is a relatively good thing.
I just want to thank you guys for sharing these videos with us. It's a great job behind them, and you make these interesting topics even more attractive and amusing. Good things like these make the time at home more enjoyable, Cheers!
Presentation: A; Scope of the Topic: B; (because it didn't even mention about "Scarcity", which is the central theme of macroeconomics, at least according to many economists; secondly, Supply and Demand, which is the "soul" of an economy, without understanding of it, some POWERFUL and yet stupid leader could fall for command economy, which would ruin its citizens' life (low standard of living). Value: A- Overall: A- Thanks for the good work.
+James Hemsley there's also the option to slow down the video. As someone who has already take Micro and Macro, i'm watching it faster. Just change the video player speed by 25%.
I'm going through this stuff carefully and taking notes and I found a possible mistake. At 5:40 you say according to Robert Froyen... but I when I looked up "Robert Froyen" I couldn't find anything, so I put in the quote itself and found it was accredited to Richard Froyen. Is that a mistake on your part?
It is literally impossible for GDP or any other measure of the economies size to grow continuously, this is doubly true and urgent for us to understand when growth is measured as a percentage change from a year prior; any system, either planned or emergent, that seeks to continually increase the size if the economy will invertibly ruin the ecology upon which it is dependent and then collapse itself.
You don't have to keep telling me every episode that your subject isn't boring! I'm already voluntarily watching youtube videos about it, I think it's safe to presume a basic level of interest on my part.
Hi I love crashcourse and I was wondering if crashcourse would ever consider making a playlist about mathematics, like trigonometry for example? Thank you :-) :-) :-)
Thank you for making this video, but I also want to thank the editors because it takes quite some time piecing together footage and editing in the music and sound effects and transitions as smoothly as they're done. So thanks : )
I like Adrian a lot. I feel like this show goes a little slower than it should, but that's not a huge issue. They gotta make it accessible to everyone, and since we're finially getting out of the woods of exposition, maybe the pace will pick up :P
You guys should talk more about taxes and how they effect the economy... I understand how taxes can cripple the US economy, but can taxes HELP the economy with the services provided as well? I heard the system of taxation we have now is often evaded, so that hurts the ones paying their taxes because they get less bang for their buck.
"If you ask 3 economists a question you're likely to get 3 different answers " This is why I find it hard to take economists seriously. They also seem to have heavy ties to various political ideologies. Like, is it inevitable that the economy will always go through booms and busts or is that just part of someone's ideology because they benefit from it somehow.
Please please remember that when you are explaining these ideas to someone completely new to it. It takes a little time to process the information and for us to put it into context and imagining these scenarios. Talk slower please!! If video length is a concern please consider splitting it up. Subtitles are also a little too small. But thank you for doing this
Is he the boring economics teacher from that one 80's movie starring a male student? _(never seen the movie, probably wasn't alive when it was released, but I have seen that scene)_
*Main outtakes of this lesson*
1) _Macroeconomics_ - the study of the entire economy as a whole rather than individual markets.
2) In general policy makers try to achieve three goals:
a. Keep the economy growing over time (gross domestic product - GDP)
b. Limit unemployment (unemployment rate)
c. Keep prices stable (inflation rate)
3) _GDP_ is the value of all final goods and services produced within a country's border in a specific period of time, usually a year.
a. Transactions where nothing new was produced - don't count as GDP.
b. Also not including illegal activities.
c. Measured in dollars.
d. _Nominal_ GDP is GDP not adjusted for inflation.
e. _Real GDP_ is GDP adjusted for inflation.
4) _Recession_ - when two successful quarters, or six months, show a decrease in _real GDP_.
a. _Depression_ - a severe recession.
5) _Unemployment rate_ is calculated by taking the number of people that are unemployed and dividing by the number of people in the labor force, times 100.
a. _Discouraged workers_ - unemployed people that were looking for work, but have given up.
b. There are three types of unemployment:
- _frictional unemployment_ - the time period between jobs, when a worker is searching for, or transitioning from one job to another.
- _structural unemployment_ - unemployment caused by lack of demand for a worker's specific type of labor.
- _cyclical unemployment_ - unemployment due to recession.
c. _Natural rate of unemployment_ - the lowest rate of unemployment that economy can sustain over a long period.
6) _Inflation_ - an increase in a currency supply relative to the number of people using it, resulting in rising prices of goods and services over time.
a. _Deflation_ - a decrease in general price level of goods and services.
+Сергей Галиуллин Thanks this helped alot!! :)
Jean I'm trying to do them for all the crash course economics videos, so feel free to find and use them ;)
Thanks you are a legend
+Сергей Галиуллин Thank you very much. I really appreciate this.
+Сергей Галиуллин Thank you sir
"It's a recession when your neighbor loses his job; it's a depression when you lose yours." - Harry S Truman
Everyone who puts notes in the comments for people are real heroes.
Here's the thing about this series: you don't need to tell me in every episode that economics are not boring and actually exciting. I get it, I clicked on the video, I'm watching the show, and you're doing a good job. There is no need to remind me of this.
Inorganic Vegan Even if that's true, I'm assuming that those kids who are forced to watch these videos in class are at least 14 years old. Yet the tone of these videos is often as if they're directed at 6 year old kids. Past some age, even "mere" school kids know that they're being patronized and treated with contempt.
Mian Fei As a college student this is very refreshing. This video is entertaining even if a few elements seem childish.
Mian Fei I like it tho
I totally thought economics was boring, but the intro really opened up my mind and now I realize economics is rad. /sarcasm
+TheBurgerkrieg Agreed. I find the tone of this one a little annoyingly condescending. I feel like the attempted gags are pretty flat, and way too common, as well. I hope the later ones drop the act a bit as they go on, this was never the case with the other series. They just present the info and make a joke where it seems fun, rather than trying to....i dunno, calm your non existent fears about broccoli while you're fucking eating it.
I always think that i accidentally set the speed at 1.5x whenever he speaks
I slow him down sometimes...
Ya he sucks. Such a dweeb
Alot of my friends watched this whole series about a year ago, and now they all have detailed economic arguments that i can't take part in. It's time for change.
I'd really love to talk to them. Where can I find them?
Worth noting: the Latin motto on the archway Adriene and Jacob drive through in Thought Bubble, "noli oblivisci mirabilis esse" translates literally as "do not forget to be wondrous," or, more colloquially, "don't forget to be awesome. Not a dead language after all.
You've just summed up 40 pages of the Macroeconomics book I bought. That was amazing!
Which book u have?:)
there's a book of Mankiw/Taylor, really easy to read. but I don't have the english title. you can make the whole book with approx 700 pages in 2 full days
Thomas Winkler VictoriaSobocki Yeah, it's a book by Gregory Mankiw: Macroeconomics, 8th Edition.
@@analogeit you can of have a good reference and uninterrupted studying capacity.
This covers atleast 4 chapter of a high school textbook. So yaay. 😁
"drug dealers don't usually report their sales to the government" - you tell me NOW?
Insisting that the topic is exciting simply distracts from the fact that this topic is, indeed, interesting. I know you guys have probably already produced and filmed many of the episodes already, but you don't need to convince me to watch, because I genuinely want to learn.
Kelsey Gertje at first I thought maybe it was aimed at kids then I realized children don't give a crap about economics. lol No clue why they speak as though they are teaching a kindergarten class. Very annoying.
Yeah, it's kind of frustrating me. :P
Kelsey Gertje Humbug! they speak with energy and enthusiasm, they concisely cover a crapload of information in
I'm not here to criticize. I agree with everything you say about their delivery. I sincerely appreciate the knowledge they're giving me. Which is why I wish they would stop trying to convince me to be interested.
Yeah, I hope so too. That might be the case!
Love these courses. I studied economics at university for 3 years and we learnt absolute garbage with no real world application. I hated economics when i left. This channel is bringing back my passion for the subject and the reason why i got into it in the first place. Bravo !
The economy is bad because the [name of political party I don't like] are in power. If only we did what [a radical politician on the same side of political spectrum as I] proposed years ago, it would all be fine. But what can you expect when [a media outlet I don't like] manipulates voters into making irrational decisions. Also, it is somehow a direct effect of [a particular set of religious or philosophical views I don't like].
+TapOnX Yeah, that makes sense that this view would come from a [derogatory term that oversimplifies your worldview]. Meanwhile, in reality, [biased evidence from pet information source] tells us all we need to know your "proposal." If you had a brain, you would know [conclusion based on faulty assumed premise] but we all know [derogatory term again, maybe shortened or combined with generic insult] don't have brains. Take some time to do research. [Dismissive farewell]
+TapOnX Plug in Repunlicans, Bernie Sanders, Fox news, and Conservative Ideology and you have an accurate representation of America.
Let the Flame War begin!
+Sedrick Alcantara Your formatting is bad and you should feel bad
James Grant you're right.
Hey, you know who is a traitor? The president!
That flappy bird joke aged well. The fact that the game is irrelevant now makes it way more random.
I have a test in my macro class tomorrow and I was so lost; watching this video has already made me feel a hundred times better about it. Thank you so much!
As an economics major, I love this way this course is structured with basic information. Two firm, real-life takeaways from this installment:
1) It's impossible to say definitively there is or isn't a gender wage gap because it's impossible to control for just gender, so people should give up the fruitless argument. I personally believe there is, but regardless, what we should do is work to ensure protections.
2) Economic growth is a balance so anyone who thinks the blanket solution is always to decrease government spending or control is simply misinformed.
im cramming this series to make up for a wasted 8 weeks in econ class. great stuff crash course team, keep it up
Sometimes I feel, frictionally, structurally and cyclically unemployed all at the same time.
My favourite market basket is the 12 days of Christmas basket- the price of:
* 12 partridges
* 12 pear trees
* 22 turtle doves
* 30 french hens
* 36 calling birds
* 40 gold rings
* 42 geese
* 42 swans
* 40 milkmaids
* 36 ladies dancing
* 30 lords (leaping)
* 22 pipers piping
* 12 drummers
The people are, presumably, employed for the average hourly wage for that occupation for 8 hours.
Please touch on GDP by PPP also....
Excellent video btw!!
Ab Sir Yes they should definitely do this. Many people get this wrong. Often people will say that country X is better to live in than country Y because the GDP per capita is higher or they will say that country X has a bigger economy than country Y since the GDP PPP is higher. Both are wrong. When comparing the quality of life per citizen in a country you want to use GDP PPP per capita. When comparing the economies of countries you want to use real GDP measured in some standard unit (for instance the dollar).
xXSelastiosXx You seem like a smart guy. Can you tell me, precisely, what the difference between CPI and PPP is? Because when you think about it, the price level and a currency's purchasing power seems like it would be the exact same thing.
david21686
The two are actually related via a simple formula. Let's discuss CPI first.
We start by constructing a so called market basket. By means of a survey we find out what a typical household needs per a certain time period (for instance 1000 liters of gasoline, 100 liters of milk, 250 cans of beer etc. a year). The cost of the market basket (denoted by CB) is then determined by multiplying the average price of the good by the quantity and adding this together (so simply how much this list of goods costs a household on average in that year).
We then establish a base year, say 1970, and calculate the CB. We will denote this base CB as CB70 (70 as in 1970). The CPI in for instance 2014 (denoted by CPI14) is then given by: CPI14=(CB14/CB70)*100.
So it's the cost of a market basket in 2014 divided by the cost in the base year times 100. This means that a value above 100 represents a rise in prices (on average) and below 100 a fall in prices (on average) with respect to 1970.
If we now want to compare say 2002 and 2009 we calculate (CPI02/CPI09)*100=(CB02/CB09)*100. If this is say 88 we see that the same basket was more expensive in 2009 then in 2002. We conclude that the purchasing power declined 12% from 2002 to 2009.
At this point we should note that CPI is country specific. It just tells you something about what the prices do in a specific country. If we want to compare countries we need PPP. PPP simply equalizes the basket of goods across countries. Here is how you find it.
Suppose we want the PPP between France and the UK. Again we first need a base PPP. We pick a base year (let's take 1970 and denote it by PPP70) and calculate: PPP70=(CB70FR / CB70UK). The PPP in the year 2014 is then PPP14=PPP70*(CPI14FR/CPI14UK).
In words, CPI measures the price of a selection of goods purchased by a "typical consumer" with respect to some base year. Tracking the CPI tells you how prices vary within a country. The PPP is a factor that when applies makes it so that the cost of the same basket of typical goods is equal. This is why it is useful when you want to compare the standard of living for average households since it is based on this typical basket of goods rather than the market exchange rates of currencies. It still has problems however since it is difficult to find equal baskets of goods in countries since the consumers buy different things (are you going to say that 1 bread is equal to 1 kg of noodles?).
xXSelastiosXx This information is delicious. My next question: Does the CPI account for the *quality* of a basket of goods over time?
For instance, let's (hypothetically) assume the following:
1. a) In the year 2000, 90% of cars have 100 horsepower, and the other 10% have 200 horsepower.
b) In the year 2015, 60% of cars have 100 horsepower, and the other 40% have 200 horsepower.
c) While the average horsepower of cars have gone up, the average price of cars have gone up as well. However, the price of 100HP cars has stayed the same, and the price of 200HP cars has stayed the same as well.
2. a) In the year 2000, 90% of computers have 1GB of ram, and 10% of computers have 2GB of ram.
b) & c) Pretty much the same thing as the car example, just replace "cars" with "computers", and "horsepower" with "RAM".
Now, in this hypothetical, no individual product has increased in price, but the *category* that the product lies in has increased in price overall because of the increase in average quality.
Would the CPI be able to account for the increase in quality in this scenario, or would it just say that there's inflation?
david21686
This is an exccellent question. I must admit that I don't know how the basket is constructed precisely but I think it does not account for quality. I think that they calculate how many cars a household has on average and what that costs and don't correct for the fact that an average car 10 years ago is worse than an average car today. I am not sure about this though so maybe someone else can answer this better.
Thank you Adriene, Jacob, and the rest of the team for these great videos.
I just started my Macroeconomics class today. This was a perfect introduction!
Thanks for this episode! We put so much faith in our models and forget they can't cover 100% of the actual data. Like the unemployment rate not including workers who have given up but would be working if they had the opportunity. It's a good reminder that numbers can tell more than one story, especially if there's relevant data you aren't measuring.
Why does the male host remind me of Mark Cuban?
I see him as a mix of Jason Segel and John Mayer
He reminds me of Jason Biggs tbh.
was thinking the same the last 2 or 3 episodes tbh then i saw this lol they should get a show going
I know right! I wanted to comment on that.
Aosc2 You mean Mr. Clifford, my guy?😂
I've watched the entire series twice but I keep coming back to this video because the animation of the car engine with its components is well, oddly satisfying. GDP is a very important and needs its own series imo. We should all know what we can do to contribute to or even stimulate the economy, especially for poor countries like mine.
You guys need to get over the whole "let's convince them economics is fun!" thing. Nobody who thinks economics is boring is watching this series. If they did, they wouldn't think it was boring. It just makes you guys seem really self conscious.
i watch crash course history,geography,government and politics,biology,literature 1,study skills,zoology, and economics and this was the first time i have ever actually seen Stan.😮
2:50 "And economists get raises"
- said economist ( ͡° ͜ʖ ͡°)
I didn't know that unemployment doesn't count people who aren't looking for work. Secret political argument ammo!
Some conservative politicians in my country use that and argue that more women being housewives means less unemployment - because they're not looking for jobs and are therefore not counted as unemployed, and their jobs can be taken by men. Personally, I think that's shitty.
@@Zoykah Lol what's your country?
work force....
At about 8:30 you say that unemployment is always inverse to GDP. But what of the scenario you mention in which machines replace workers? The GDP can raise while unemployment raises too.
+Haran Yakir wouldnt that be structural unemployment? in which case they dont consider that for unemployment
454ffv all forms o unemploymet are considered are acounted for in the statistics, apart from hidden
***** I think maybe they mean just the cyclical unemployment - the third "bad" kind, not the first two "good" kinds - in the inverse relationship...or at least the overall total. If machines replace workers, the company can save money on labor costs and spend it elsewhere, which could create jobs elsewhere and balance itself out in the equation, so to speak.
+Haran Yakir The GDP wouldn't increase because supply would go up and demand would go down, due to more unemployment.
In general jobs being 'taken by machines' doesn't reduce employment. Look at farming in the U.S., for example. In 1900 a large percentage of people worked on farms. The twentieth century produced many machines that increased farm productivity while reducing the farming population to about 3%. That's a huge drop in one sector's employment, but has had very little, if any, effect on overall employment.
Why is one of the primary economic goals to keep the economy growing over time? If our economy is supposed to express how we as a group access resources, wouldn't the achievement of this goal ultimately necessitate resource depletion (at least it would for any K-type species)? What is the rationalization for this goal assumption?
3:25 GDP encourages waste and lack of resilience, but we still use it as our primary indicator of economic success?
6:17 Why can't we update our measuring instruments?
this video isn't much fun to watch if you're greek....
im greek and i am watching this :p
I'm Greek and I liked the lesson, Greece's financial situation is a good example. :-)
rip
Apparently I've been both frictional and structural unemployed for almost two years now. Think I'll just give up and call myself a discouraged worker.
I love how they make complicated subjects less complicated
Adriene's excitement and energy levels is what making this video and macroeconomics more interesting, and Jacob's outfit and teaching skills are breaking new highs on every video 😂
Jacob is really talking to fast but a very pleasurable course, both Adriene and Jacob are enthousiastic and they certainly succeeded in making it a pleasure to watch.
Watching this at 1am the night before my macro test is clearly the answer to all my problems.
> Macroeconmics
> Economic Theory
Prepare your butts.
+Dale Gribble "Hold onto your butts..." - Samuel L. Jackson, 1993
I'm 2 years late, but I just want you all who made this series possible know that I'm very thankful for all your efforts.
Only after many years past my economics lecture in pre-U, this series made me realise how interesting and important they actually are.
Can't thank you enough.
The Guy is talking toooooooo fast. The explanation is sooo good that even a 12yr old can understand. But even a 24yr old cant catch up the speed.
this video was much better than the previous ones, no stupid jokes, no childlike talk. Good.
Thanks!
I love this channel, I feel like I'm in a school environment whenever I watch this. I take notes and stuff and read comments.
funniest episode on ECON so far! i think this could rank on top 3 of all CC episodes and i'm only 2 minutes in
Xiao'sChannel Oh, herro I'm here to end the hate, and bring peace between all the Asian race. I mean Korean and Chinese? Their all really the same. I mean, we look the same right? We eat with chopstick?
Franziska Von Karma Ugh, are you replying to my comment? Can I get some context here?
Love it! Don't listen to those who say that your humor is childish and therefore stupid. It is childish, but it's just the right thing to smooth those complex concepts you're explaining to us ;)
If it wasn't for you guys, I'd never even have looked at expanding my knowledge when it comes to Economics. Thank you for wonderful and understandable presentations time and time again!
the rate of the guy's speech is insanely high. dude, lower your sugar and caffeine intake, your counterpart has a good pace. match it. this puts a dent in this well made video.
I hope this series will eventually cover Fractional Banking of the Federal Reserves. Just the literal root of everything wrong with this country and the world in terms of unsustainable economic policies so people can be aware of what's really going on.
Really? Fractional Banking is the source of ALL problems in the world's economy?
+lightingbolt85 Fraud will always be #1 but I think FRB could be a close second
SirChocula ... you'll be disappointed. Despite what many people say online, Fractional Reserve Banking is necessary for our economy to function. Most economists agree it is a relatively good thing.
+Richard Juarhhuiez jh $435)97& &869l 666776544
+SirChocula You realise that pretty much every country in the world uses fractional banking right?
Golden opportunity!
GOD DOES EXIST!!
*Grabs popcorn*
Great content but I think you guys talk way too fast. Slow playback feature isn't available because I use Chromecast.
I just want to thank you guys for sharing these videos with us. It's a great job behind them, and you make these interesting topics even more attractive and amusing. Good things like these make the time at home more enjoyable, Cheers!
I’m watching this video during the corona virus pandemic of 2020 and I’m starting to realize how bad of shape the US economy is in 🥺
This helps so much with my online economics class! the videos in he course are super boring and vague so i very much prefer the crash course
watching in 2019 and the jury’s still out on Greece’s economy :(
Presentation: A;
Scope of the Topic: B;
(because it didn't even mention about "Scarcity", which is the central theme of macroeconomics, at least according to many economists; secondly, Supply and Demand, which is the "soul" of an economy, without understanding of it, some POWERFUL and yet stupid leader could fall for command economy, which would ruin its citizens' life (low standard of living).
Value: A-
Overall: A-
Thanks for the good work.
I wish he'd speak slower
+Mitchell Bass they have subtitles
+James Hemsley Way too fast. I keep pausing.
+Nguyễn Châu you just saved my life
+James Hemsley there's also the option to slow down the video. As someone who has already take Micro and Macro, i'm watching it faster. Just change the video player speed by 25%.
its called crash course for a reason...
This video cleared up some misconceptions I had about the unemployment rate. Thank you.
I'm going through this stuff carefully and taking notes and I found a possible mistake.
At 5:40 you say according to Robert Froyen... but I when I looked up "Robert Froyen" I couldn't find anything, so I put in the quote itself and found it was accredited to Richard Froyen. Is that a mistake on your part?
It is literally impossible for GDP or any other measure of the economies size to grow continuously, this is doubly true and urgent for us to understand when growth is measured as a percentage change from a year prior; any system, either planned or emergent, that seeks to continually increase the size if the economy will invertibly ruin the ecology upon which it is dependent and then collapse itself.
I need a new brain.
.
Don't we all?
You should just reset it to factory settings
jim kwik
ok
Yay, finally a weekly and not fortnightly video in this series!
When your teacher tells you to watch Crash Course without John Green in it.
*How dare thee!*
You don't have to keep telling me every episode that your subject isn't boring!
I'm already voluntarily watching youtube videos about it, I think it's safe to presume a basic level of interest on my part.
good video but guy speaks really fast
you can slow down the video, theres a option for that
its way too slow dude i need like 0.95 speed
Download video speed controller. It's a google chrome app that lets you adjust video speed precisely!
I like these videos. Never took one Economics course. This is a good way to get information and it is entertaining (to me)!
Seasonal Unemployment wasn't included.
that could come under structural unemployment in a way
I love Jacob's AC/DC belt buckle.
Hi I love crashcourse and I was wondering if crashcourse would ever consider making a playlist about mathematics, like trigonometry for example? Thank you :-) :-) :-)
The intro song makes me all pumped up for some reason
Absolutely love this series! Real life advice for real life concerns, more people should watch these videos!
Best comments to read ever! Clearly you guys succeeded in creating a discussion about something!
You two are great and are really started to hit your groove now. Keep it up! :)
love this course
I thought they'd explain Keynesian economics when they started talking about how the government intervenes in economic busts.
So I've created a machine learning algorithm that plays flappy bird pretty dam well... I would like to take you up on the flappy bird challenge offer.
Thank you for making this video, but I also want to thank the editors because it takes quite some time piecing together footage and editing in the music and sound effects and transitions as smoothly as they're done. So thanks : )
I like Adrian a lot. I feel like this show goes a little slower than it should, but that's not a huge issue. They gotta make it accessible to everyone, and since we're finially getting out of the woods of exposition, maybe the pace will pick up :P
5:29, Some European Union countries have been experimenting with counting underground markets..
You guys should talk more about taxes and how they effect the economy... I understand how taxes can cripple the US economy, but can taxes HELP the economy with the services provided as well? I heard the system of taxation we have now is often evaded, so that hurts the ones paying their taxes because they get less bang for their buck.
12:50 dat AC/DC belt
Very informative lesson!
4me I"ve got confused the differs btwn inflation and deflation now, i understood em well. Thank you teachers!
Sorry, but the "Volkswagen of Growth" in this "carnalogy" just got recalled.
"If you ask 3 economists a question you're likely to get 3 different answers " This is why I find it hard to take economists seriously.
They also seem to have heavy ties to various political ideologies. Like, is it inevitable that the economy will always go through booms and busts or is that just part of someone's ideology because they benefit from it somehow.
Please please remember that when you are explaining these ideas to someone completely new to it. It takes a little time to process the information and for us to put it into context and imagining these scenarios. Talk slower please!! If video length is a concern please consider splitting it up. Subtitles are also a little too small. But thank you for doing this
True, but this is a crash course, i think it is made for people who already have an idea of what is going on. It serves as revision.
But that same guy from the videos has his own chanel where he also talks about economics and i think it will be easier to understand.
Nice ACDC Belts. I like how he just changed it at the end.
0:16 Neil Hamburger cosplay?
Paul Keefer We can't be the only ones who get this reference.
Is he the boring economics teacher from that one 80's movie starring a male student? _(never seen the movie, probably wasn't alive when it was released, but I have seen that scene)_
Love your energy!
Challenge accepted Stan
crash course videos are enough to improve our subject knowledge.
2:16, sure, cool Stan, but when, and where?
Am I the only 12 year old who has never done economy but watches this because its helpful for later economy?
12:56 Greecey.......I see what you did there.......
i just love how you played , adrienne
Great video! Too bad the comment section is cancer.
I like that free, well explained lessons can be accessed by everyone and crash course has hit that!
She's soo fun ... I want her for my econ teacher!!!!! .. oh ... wait , nvm
My homie Jacob really got a different AC/DC belt in each video
have a video saying that economics not an exact science. or why economics is not about making predictions and stuff...
very useful! finished a chapter in a 10min video. Luv you guys. Crash course gets my sub of the day.
Same old people picture!
Great job and awesome ACDC belt buckle! :P