CrashCourse - 2015-08-24
This week, Adriene and Jacob teach you about macroeconomics. This is the stuff of big picture economics, and the major movers in the economy. Like taxes and monetary policy and inflation and policy. We need this stuff, because if you don't have a big picture of the economy, crashes and panics are more likely. Of course, economics is extremely complex and unpredictable. Today we'll talk about GDP as a measure of a country's economic health, the basics of economic analysis, and even a little about full employment, unemployment 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, Jan Schmid, Simun Niclasen, Robert Kunz, Daniel Baulig, Jason A Saslow, Eric Kitchen, Christian, Beatrice Jin, Anna-Ester Volozh, Eric Knight, Elliot Beter, Jeffrey Thompson, Ian Dundore, Stephen Lawless, Today I Found Out, James Craver, Jessica Wode, Sandra Aft, Jacob Ash, SR Foxley, Christy Huddleston, Steve Marshall, Chris Peters -- 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
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.
thank you
Thank you very much @Сергей Галиуллин
Спасибо, Серёга! Вэри юзфул :)
Thanks
Thank you, sometimes they talk too quickly
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].
Dead on.
The true enlightened centrist has spoken!
This post is so generic it doesn't even try to fill the gaps
You're all [ideolody opposite to the one I'm a "sts" (fanatic) of]sts!!!!
Seems like BJP
I always think that i accidentally set the speed at 1.5x whenever he speaks
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.
TheBurgerkrieg what are you doing here? Is this a crossover episode?
Anguel Roumenov Bogoev nobody does it as good as Mr. Green
@Mian Fei Kids are learning economics in the 8th-9th grade?
it's very entertaining that is why it stops me from falling asleep so yeah
I need more accounts to like this post enough
"It's a recession when your neighbor loses his job; it's a depression when you lose yours." - Harry S Truman
I wish he'd speak slower
yeah i wonder if native speakers find it hard to listen to him
It’s a crash course mi frendo
Put it on . 75x speed lol
I feel as if the guy speaks slower in real life and they speed it up for the video. It's not only fast but the intonations sound "sped up" in a way that makes it even harder to understand. -_-
@Leslie Reyes good one.
You've just summed up 40 pages of the Macroeconomics book I bought. That was amazing!
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.
thomas, you cannot understand macro economics in two days
@A one legged man you can of have a good reference and uninterrupted studying capacity.
This covers atleast 4 chapter of a high school textbook. So yaay. 😁
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
Why does the male host remind me of Mark Cuban?
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?😂
Sorry mate
I need a new brain.
Don't we all?
You should just reset it to factory settings
jim kwik
ok
Same.
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.
+Kay Perkins Also, teachers use these videos in their classes. Most students aren't really interested in learning something that's taught in a lectured way. A lot of people don't like to learn something that doesn't relate to them in some way. (At least in my USA schooling experience). Not all individuals actually value the things they are taught. They especially space out if something is not taught in a way that they'd perfer.
Teachers show these videos in class and i'm pretty sure more than half the students could care less about economics.
I'm not sure why it is. I think it's gotten better as it's gone along, though.
That's good. I've learned some new things, but it's mostly good to be told about this stuff from people who know what they're talking about, since it's not something I'd say I've been well-informed about in my life.
That's good.
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....
2:50 "And economists get raises"
- said economist ( ͡° ͜ʖ ͡°)
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!
> Macroeconmics
> Economic Theory
Prepare your butts.
+Dale Gribble "Hold onto your butts..." - Samuel L. Jackson, 1993
Seasonal Unemployment wasn't included.
that could come under structural unemployment in a way
When your teacher tells you to watch Crash Course without John Green in it.
How dare thee!
12:50 dat AC/DC belt
Thank you Adriene, Jacob, and the rest of the team for these great videos.
He needs to slow down his speech. Breath man! her speed is awesome, I wish she did the whole video! Nevertheless great video!
As a balding man, I'm triggered and need a full apology from the staff of Crashcourse.
watching in 2019 and the jury’s still out on Greece’s economy :(
Please touch on GDP by PPP also....
Excellent video btw!!
@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.
Ni
+Ab Sir
Very good suggestion to bring up PPP.
Purchasing Power Parody is so much more important to determining the health of an economy.
For example if we raised the minimum wage to $100/hr the workers would benefit but then prices would go up as well. In aggregate GDP rises as well so all is good.
NOT really because in PPP terms nothing has changed. A hamburger that cost $2 before would cost $10 after. Basically nothing has changed and PPP may actually go down due to market disruptions. Which means the real economy is actually smaller.
Purchasing Power "Parody"? It's Parity!
5:29, Some European Union countries have been experimenting with counting underground markets..
Sorry, but the "Volkswagen of Growth" in this "carnalogy" just got recalled.
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)
Good stuff, but , Jacob is speaking waaay too fast.
Challenge accepted Stan
She's soo fun ... I want her for my econ teacher!!!!! .. oh ... wait , nvm
I thought they'd explain Keynesian economics when they started talking about how the government intervenes in economic busts.
3:27 "Usually"
I just started my Macroeconomics class today. This was a perfect introduction!
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.
12:56 Greecey.......I see what you did there.......
Hey Crash Course set designer, or Stan, that lampshade blends into the background too much. Time to spice it up! Just sayin'
9:18 By any chance did you donate that to John Oliver's church Our Lady of Perpetual Exemption? Either way, I know that's worth about 40 cents.
2:50 "economists get racist.." - know it is raise, but anyway 🤦♂️🤦♂️😂😂
I love how they make complicated subjects less complicated
when jacob starts explaining suddenly the vid speed goes off to 1.25x
"drug dealers don't usually report their sales to the government" - you tell me NOW?
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.
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.
That flappy bird joke aged well. The fact that the game is irrelevant now makes it way more random.
The guy on the right in the beginning is my professor and I cannot stand him.
Love Mr. Clifford's AC/DC Belt!!!!!
"The economy of Greece... Well it's not..."
Idk why but I found that way too funny 😂
αχ μανα ελλας τι σου καμανε?
"The most important measure of an economy is gross domestic product."
I give up. It's over. This series has no credibility. Who's idea was it to let politicians write the script instead of talking to actual economists?
Lol exactly
I love those guys! They're making me learn so much.
Perfection!! :D
Thanks guys for the video,
Stas Pakhomov - 2017-06-01
Some notes if anyone needs em!
-Macroeconomics is the study of the entire economy as a whole rather than individual markets, like: economic output, unemployment, inflation, interest rates and government policies
-Macroeconomics came about around the time of the great depression with the introduction of data collection to help predict and forecast changes in the money supply
-Since it is a social science, meaning it deals with understanding people, it is just a prediction as it can not possibly control all external variables
-Policy makers have 3 general goals:
Keep the economy growing over time
Limit unemployment
Keep prices stable
-Economists use three main measures to achieve the goals above: GDP, unemployment rate, inflation rate → GDP most important: value of all final goods and services produced within a country’s border within a specific period of time (usually a year)
-Company acquisitions, used cars, stock markets, black markets, and household production (fixing your own sink, etc) etc do not count towards the GDP
-Nominal GDP: GDP not adjusted for inflation (different countries have different nominal GDPs)
-Real GDP: GDP adjusted for inflation
-Recession: When two successive quarters, or six months, show a decrease in real GDP → depression = severe recession
-Unemployment rates underestimate the real problem of unemployment as they do not take into consideration those are unwilling to work, discouraged workers
-Three types of unemployment, or rather, reasons why people would be unemployed:
Frictional Unemployment → transitional time between employment
Structural Unemployment→ caused by lack of demand for a worker’s specific type of labor (includes technological unemployment → workers replaced by machines)
Cyclical Unemployment → unemployment due to a recession (the one to worry about) → businesses lay off workers because people buy less, workers have less money, so more businesses fire more workers
-Natural rate of unemployment = an economy is considered to be at full employment when there is only frictional and structural unemployment
-GDP and Unemployment rates are inversely related
-Stable prices, although counter intuitive when dealing with falling prices, are important to prevent serious inflation or deflation
-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 (decreases the purchasing power of money)
-deflation= a decrease in the general price level of goods and services (economists believe deflation to be bad as falling prices might discourage people from buying more as they feel like the prices might plummet even further)
-Business cycle → the rise and fall of inflation and deflation or contractions and expansions
-An economy has 4 components that make up GDP, each representing groups that can purchase things in the economy, which changes the speed of the economy:
Consumer spending (in USA, this account for 70% of GDP)
Business spending (investment)
Government spending
Net exports (some countries rely more on this)
-Governments can regulate economies (like cruise control) by changing things up like decreasing taxes during recessions to encourage consumption → which creates debt, which is good or bad
Indigo Gabriel - 2020-02-12
You're a legend
Elena Zinchenko - 2020-02-18
Thanks
Mr.crazy - 2020-03-27
Ong u clutch asf💪🏼💪🏼
Cam - 2020-04-03
Goated
Sydney C - 2020-04-03
Stas Pakhomov icon 🤩🤩