CrashCourse - 2015-09-16
In which Jacob and Adriene teach you about the evils of fiscal policy and stimulus. Well, maybe the policies aren't evil, but there is an evil lair involved. In this episode we learn how government use taxes and spending influence the economy. Sometimes the government gives, and sometimes it takes. And the giving and the taking can have a profound effect on how economies behave. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark , Elliot Beter, Moritz Schmidt, Jeffrey Thompson, Ian Dundore, Jacob Ash, Jessica Wode, Today I Found Out, Christy Huddleston, James Craver, Chris Peters, SR Foxley, Steve Marshall, Simun Niclasen, Eric Kitchen, Robert Kunz, Avi Yashchin, Jason A Saslow, Jan Schmid, Daniel Baulig, Christian , Anna-Ester Volozh Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
At the beginning I was looking for the skip ad button...
heheheeh...me too
feludaify me too loo
lolzz..xame here
I swear, they're so extra. And I love it.
The lady is cute!
Hey Crash Course, can we get a "why are we learning this" series? I'm a middle school science teacher and my kids always ask this question. Many times I am able to relate material to life but sometimes it's a struggle and I know it is for other teachers in science and other subjects as well. It would be fantastic to introduce a subject with a short video explaining different layers of importance of certain subjects as well as specific topics within them.
id love to have a great answer but we r learning this because its on the ap macro exam
Because the government mandates it. Boom answered.
economic is a part of society, so learning the economic we learn about ourselves
Tell them that if people don't learn this stuff then you end up with flat earthers. Also point out that modern technology and medicine would not be possible without science.
Look how relevant this is now...
I'm surprised you didn't make more use of that really expensive looking under ground lair set.
+Hen Barrison Thats not a set, that's Stan's bedroom.
+Ted Cullen (Twister) Oh...
+Ted Cullen (Twister) Hmm, that's really interesting, I didn't know those existed. Do you know of any more?
There are a fair few I think, but I can't recall any specifically. I think there are YouTube Spaces in NY, LA and London... but there are probably even more.
+Emperor Theodor Tronét I think its green screen
GIVE US CRASH COURSE PHYSICS, DAMMIT!
..nice video, by the way.
+Zach Glover go on Khan Academy, he studied at MIT and teaches computer science + LOADS of other subjects
Ask and ye shall receive!
khhnatkor RZ wtmy I yr wt wt wt to wt u TV wt
They already have one
true that
Let the economics melee begin!
ACDCLeadership We need the belt
Cheers for this, been searching for "recession proof shares" for a while now, and I think this has helped. Have you heard people talk about - Teysaiah Recession Stopper - (Have a quick look on google cant remember the place now ) ? Ive heard some awesome things about it and my mate got cool results with it.
It's good to see you on crash course, bud! I watch your videos on your channel and now they're here! :D
You talk super fast
"Maybe it's all about that thing you didn't have when you are in 6th grade: confidence."
I still don't have it by now.
I would love to see sources on Crash Course videos. Just a "we used these papers for sourcing" type deal. Allow some of us to dig deeper if we want.
This comments section: people who can't handle that economics is largely Keynesian.
@Joe Lima Which claim?
@Tom The claim you made a week ago when you came back to this that some mergers made the crash worse.
@Joe Lima Allowed more capital and made it easirr to be used and invested in credit swaps, asset backed securities.
@Tom So does that mean you have no evidence? Because I asked what evidence you have to support the claim, I didn't ask for another unsupported claim that is obviously wrong.
It is the federal reserve that allows more capital and makes it easier to be used in investing. They set the interest rate and print the money. If two banks merge they still have the same amount of capital when they are one bank.
@Joe Lima I'm not saying their capital overall increases. The capital spent on bad investments increases. Interest rates were also set too low.
"Maybe it's about that thing you didn't have in sixth grade: confidence ."
Gurl, please. It's been years since then, and I STILL don't have that!
I just want to say Adrienne is my new crush. Love the personality.
+Johnson Taylor she has a wonderful speaking voice, like I can listen to her all day <3
+Johnson Taylor mine too bruh!! <3
Jacob, you speak too fast. STAHP! D:
+Sexual Potatoes seriously tho what is his rush?
@oeiwyuzl84332165 He is getting better in new episodes, apparently he listened! (:
In the settings you can slow the speed down... also pause and re-watch as necessary.
I watch them on 1.5 speed 😂
You could always decrease playback speed ;-) or pause the video every few words to digest :P
As you said, Keynes also said that in inflation times - when the economy is running well - the government should increase taxes and decrease government spending. The problem is that many countries do not do that, so their debt rises and rises. That's one of the main problem many countries nowadays have in my opinion.
Friedmann=anti-Keynes=wrong
Jacob needs to talk more slowly
Yes im from the south and i can not follow him at all 🤣
Just one error to point out (behavioural economics): a musician wouldn't save 50%
Loving this series so far, you guys are doing a great job, I was skeptical at first but keep it up guys!
mgs1398
You should remain skeptical. This is little more than pro-Keynes ra ra nonsense.
Hayek FTW! Make a video about Hayek theories!
raising taxes is not part of austrian economics. So you cannot compare Europe to US. (at least not to say which school of economics works better)
And you cannot judge how the program has worked until you stop the stimulus.
So far fed raised rates by 1/4 point and the market is already freaking out and heading towards another recession.
We will see if the keysian ideology has worked when we are back at normal interest rates. Before than its like saying that operation was successful before the patient woke up and is off the life support.
"In the long run we are all dead" - We'll I guess the US economy is getting closer to that long run. And guess what, it is no fun. That focus on the short term is simply cowardice.
Try applying it to global warming:
"Hey global warming is going to have negative consequences!"
"Don't worry in the long run we're all dead. Who cares, as long as we can use up everything now, it's our kids who are going to suffer."
Sounds ridiculous right.
Look up the depression of 1921. We cut spending and taxes, guess what - it worked. Hoover & Roosevelt did exactly what Keynes wanted, increase spending. And the Depression lasted the longest ever. Fast forward to today and look at us, it has been 7 years and we are still debating raising interest rates. (Still in emergency mode) Sure we escaped a worse of the recession in the short run, but now we can live in a zombie apocalypse economic system. All of the undead banks are trolling the economy. Everything is on life support from the Fed. Is that really a better decision?
Finally, how can we have a system that inspires confidence knowing that rich people will be bailed out in case of a crash, but poor people cannot do the same?
Matthew Graham government's non-intervention does not have a crystal-clear record you seem to be trying to paint. Free market economy always splits people into 2 groups, those who own means of production and those who seek to explain 'bad economy' through what not. Down the line free market economy does not work the way you imagine. Are you not old enough to apprehend that?
"In the long run, we're all dead" LOL
Thank you!
Spent over 30 hours reading through material for my pre-course and this channel explained it in a much easier way in under two hours.
Now I can make informed decisions while making my opinions on government policy AND better manage my economy while playing Galactic Civilizations 2 and the like.
+Michael Turner I just put space malls everywhere I can put 'em :)
+Michael Turner
throw a coin.
+Michael Turner GalCiv 2 and the like have unfortunately limited economic models. Bonus: You don't have to deal with recessions.
Not until you study the critics of Inflationism and mercantilism.
Read Bastiat, Hazlitt, Hayek, Mises, and Rothbard, or watch the "Keynes Hayek rap" on youtube as a good pop introduction.
Adriene, you're a whack job! :) Love the ending.
Don't ever put Empire Strikes back and... that other movie in the same sentence ever again.
Love u Adriene , your teaching ! Thank you all for making such videos which are very helpful in understanding economics .
"Peer into a world where shadowy government stooges manipulate the levers of fiscal policy from deep within their evil lairs"
Nightvale, is that you?
Something tells me the intro was over budget
I love Evil Stan Voice. GIFF ME MOAR!!!
sighs dreamily Shrank. (8:41) She said, "shrank." I think I love her right now better than anyone in the world.
I really panicked when the video started playing since I know nothing about fiscal policy and i'm writing a test about it...…. lol you had me good
I've learned more watching 11:53 minutes of this than the whole semester at my University.
Keynes: Y'all mind if I BREAK SOME WINDOWS???
Lmao she said "non-shadowy government officials"
Jacob please slow down ! You are speaking too fast, I catch like only 30% of your speach :(
00:39 "citation needed"
I feel like this debuted about a month too soon. ....was intended for Halloween and got a little too stimulus and jumped the gun.
Great video and great series! By the way, I really like those laughs!!! They were really funny
@ Adriene I love your sense of humor and the way you look at Jacob when he talks makes me laugh 😂
8:17 Adrienne is Canadian now?
This helped me grasp this concept SO much easier. I was lost and thought I'd fail my essay. I am extremely grateful for this video and the rest of the economics series. Keep up the great work.
Heck whats with all the weird introductions, lmao!
I've been waiting for your videos guys!
Great video. :DD
THIS HELPED ME FOR MY GLOBAL ECONOMICS! Keep up doing the good deeds :) Liked & subscribed
i am watching your videos for over an hour now, which is literally saving me from failing my macroeconomics test tomorrow morning. you explain that stuff way better than some profs in university as your videos are perfect to understand mathemetically complicated theories! Greets from germany and lots of thanks for all the work :-)
I like the first few seconds of this video blondy....haha haha..🤣😂🤣
we have this kind of problem in Australia at the moment..😘
Yes crash course :D
I can't concentrate, i keep looking at her body (hot body)
You should do a Kaynes Vs Hayek video, I'm a great fan and would love to see it explained by you
I had to watch this for school but I left a like for the Empire strikes back/Phantom menace joke. Nice one!
All I ever hear when being taught economics is crazy claims and no evidence or explanations. Like how would a booming economy lead to inflation? It makes no sense to me.
Сергей Галиуллин - 2016-03-20
Main outtakes of this lesson
1) Recessionary gap - a situation wherein the real GDP is lower than potential GDP at the full employment level.
2) Inflationary gap - the amount by which the actual gross domestic product (GDP) exceeds potential full-employment GDP.
3) Macroeconomics - the study of the entire economy as a whole rather than individual markets.
4) Fiscal policy - the way a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.
a. Expansionary Fiscal Policy - stimulates the economy during or anticipation of a business-cycle contraction.
b. Contractionary Fiscal Policy - enacted by a government to reduce the money supply and ultimately the spending in a country.
c. Classical theories assumed that the economy will fix itself in a long run, and that government intervention will, at best, lead to unintended consequences and, at worst, cause massive inflation and debt.
5) Deficit spending - the government spends more money than it collects in tax revenue.
a. Crowding out - where increased public sector spending replaces, or drives down, private sector spending.
b. Keynesian economists maintain that crowding out is only a problem if economy operates at full capacity, where all workers are employed and we're producing as much as we can.
6) Austerity - raising taxes and cutting government spending to reduce debt. In crisis of 2008 was main policy of EU, which led to worse results than deficit spending policy in US.
7) Multiplier effect - the initial increase in government spending of 100$ might turn out to be 175$ worth of actual spending in the economy.
a. When the economy is booming, multiplier is close to 1x.
b. When economy is in recession, the multiplier is around 2x.
c. Spending on infrastructure, and aid to state & local governments , also seems to have fairly high multiplier, about 1.5. But general cuts to payroll and income taxes seems to have a multiplier of about 1:. If the government cuts 100$ in taxes, the economy is going to grow by about 100$.
Furkan Y. - 2019-12-26
You must be a prophet sent to save us from the wrath of the economy, sir... Thanks a lot! :)
Daniel Kim - 2020-01-13
lets go boi <3
Diverted Vehx - 2020-02-05
u r gay
anyagutzie - 2020-02-26
God bless you
Lucas Silberschmidt - 2020-03-30
absolute legend