CrashCourse - 2015-11-20
What is a trade deficit? Well, it all has to do with imports and exports and, well, trade. This week Jacob and Adriene walk you through the basics of imports, exports, and exchange. So, you remember the specialization and trade thing, right? So, that leads to imports and exports. Economically, in the aggregate, this is usually a good thing. Globalization and free trade do tend to increase overall wealth. But not everybody wins. 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, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks -- 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
"Its unlikely the worlds largest economies will return to strict protectionism".... 1 year later Donald Trump is elected and Trade War is started haha. Good video tho!
They are assuming that somewhat competent politicians are elected.
People don’t want their lifestyle (job) to be at the mercy of global market forces. You know, they kind of want some control themselves to decide what they want to do.
@jobanski definitely an interesting topic given that most countries in SEA and China put high tariffs on certain non-local produces.
这就是为什么西方的经济学总是闹笑话，把自己都忽悠了
@Roscelle Visita I agree.
Seriously, isn't anyone gonna talk about that ACDC belt?
no
ur right, he always wears it...
I love it
He has a consulting company called ACDC Leadership.
@Darik Forrest I thought it was called joe
igcse-students-who-are-too-lazy-to-open-books squad
Can someone please talk about how utterly useless our IGCSE economics book is? So many pages. 😭
abdelrahman s the video better than books anyway
ME
😭😂
AYE SIR
With all this free education on YouTube, how does this affect the value of college education? It's ironic how all of these are now paid for by ads. It's like companies are paying to educate its future employees
Aren't ads a subtle form of collectivism?
Doesnt affect it one bit
"Free Education" - nothing is free, if its "free" you are the product.
A factor you have to consider about the value of college education is it’s recognition. What I mean by recognition is it’s acceptance in a specific situation by an upper figure such as a government or an employer. A person who studied and read all courses and lessons that are applied to a field such as engineering can become worthless in employment if it is not recognized by a government in which case it is deemed illegal to practice engineering due to laws. About the free stuff thing, it is technically free in terms of monetary exchange but on a broader sense it isn’t. Companies such as Google take information about you and sell it to advertisers in which you exchanged your privacy for access to Google. Some companies are also going for a more donation form of business in which it is optional to pay but tou still get a service from them.
Nothing beats expertise when it comes to trading.
I’ve been freed from the average 9-5 life to a life of wealth and prosperity all because I’m trading in the right hands. Bless you Wes.
I did my background check on him, I started out trading his trading course and three weeks into trading with him, I’m enjoying trading. Thanks for the referral.
It looked quite impossible when I was told about Grafton’s trading prowess. I’m glad I’ve made sizable profit from the online market.
Ads are getting smarter
@Keagan Hess LOOOL
"Protectionism is unlikely to ever happen"
Trump: "hold my Big Mac"
"The creators of the thought bubble are Canadian. These GRAPHICS are IMPORTED"
This made my day :D
They look like the South Park depiction of Canadians!
It's funny that he said our largest trade partner is Canada when China surpassed them like a week ago.
This video must me late in a way
Warrior Son you think Canada would try to goto with anyone?
It is Canada
Watching this in 2019, in the heat of a US -China trade war... so much for non protectionism policies...
i am watching too, i am chinese
@Alice Mclean 看看西方经济学怎么闹笑话，把自己都忽悠了
"It is unlikely that wealthy nations will return to strict protectionist policies" RIP Ameria 2k17
Then they won't remain wealthy. And we know how that ends. Or, as "Mark Blyth" the scottish economist said. "Long Island is not a defensible position."
The US is the biggest exporter of dollars printed out of thin air. That's a pretty good deal for Americans.
+Robonza US print dolars = profit
Other countries print their currency = inflation
Yeah, the world is really fair
+Ramon Denner #America
yes and these people don't get it. China or India has been sending real resources, for numbers on a spreadsheet. They have received pollutions and sent their goods that they don't get to consume.
no such thing as petrodollar.
"It's unlikely that the world's largest economies will return to strict protectionism."
You still sure about that?
They will once they see some of the big players collapse in the hell of Civil War.
only USA, rest of the world is still pretty much free trade
You export Kanye West albums to the world?
Why would you dot that?
@freddo 1614 Yeah stupid mistake, I admit.
His music is good af
To destabilise them
im a fish
if you can profit, why not. they must like kanye i guess
the words "intellectual" and "kanye" cancel each other out
I just hope all NorthWest's Kardashian-stupid is limited to his name, and we can expect earth-shattering hip-hop albums from "Lil' NorthWest" in just a few years.
4Smart6You
lol
Lmao 😂😂😂😂 right!
two years later and he actually has a point
Maybe Trump should watch this
Ooooweeee someones a selective learner lol. Sounds like confirmation bias but idk. The lady has some points but when you hit a certain point those deficits become unsustainable. And do you not understand just how destructive to the us economy it is to have china only able to basically invest in american business? Cause and effect my friend
.... use your brain. You do understand how corporations work dont you?
@mswhatzittooya typical liberal. Deflect, laugh like infant, orange man bad....
@shakka mannaka argument from authority is hardly relevant... information changes for one. And secondly... when has a world changing genius not been self educated? Yeah... the kind of people that solve serious real world problems usually understand that old rick sanchez line.... school is not a place for smart people. Why? Because it seldom reflects reality. Especially when its run by people who think Marx has a good economic theory despite the constant stream of evidence to the contrary. Cognative dissonance does not lend credence to an argument from authority. Sincerely, literate straight white male.
I trust him over aczio o cortaaz
@shakka mannaka I know this is LATE (two years) but your comments are interesting. Anyways, I recommend watching Stephen Harper's interview with Ben Shapiro on the China/Trump issues. Despite how you may feel about either of them, I think Harper makes some good points in support of what Trump is doing and directly ties into the content of this lesson.
"intellectual goods, like kanye west albums" LMAO dead
We would trade kanye for justin biever😂
Drew Vanheistel nah
6:29 I'm Popeye the Sailor Man!
Toot Toot!
The Fulton Recovery System aids in international trade :)
+Michael Kandrashoff Fed-Ex, bringing Russians to your Mother Base since 1984.
I'm hesitant to call a West album an "intellectual" good... :P
4:52 "it's unlikely that the worlds larges economies will return to strict protectionism" hehe
"It is unlikely that the worlds largest economies will return to protectionism." This would have sounded so reasonable before Trump came along. But no it doesnt anymore in the Trump economy.
Oh... why.... you're mistaken; the US economy is doing great! The best in the world. I know 'cause dmfp says so; and since his blind lemming followers believe anything he says and... all thoose people can't be wrong!..... 🙃😟 Come on 2020!!!
Trying to study for economics but every time i watch this, I almost fall asleep... ugh
Lmaooooo so me
Keep trying bro it will work out. 1 day u will finish it. Keep going.
Drink some coffee, it helps.
Hey, I had that cash register toy in the background!
This was really good. Thank you guys, I feel smarter.
Forgot to mention all the Teargas, Guns, Tanks, and other weapons of death that the US exports.
Weapons of death, fair enough
Same thing in other countries.
Ike Okereke except we are still bombing innocent populations, yes, there are countries that run the same, but it doesn’t mean they aren’t as corrupt
Crash Course: No large country will go for protectionism
Donald Trump : Hold my Beer
"good or service" sounded like you said "gooder service" I almost thought you needed a grammar slam, but CM Punk doesn't need to get involved this time.
1:49 Irony is speaking about economics while having a Karl Marx piggy bank on your book case.
9:18 trade is about winners and looser”s? Trade isent about two countries coming together in a MUTUAL agreement??? Im looking forward to a reply.
4:50 ha ha ha. Some regular guy from 3 years into the future is laughing...
Laughs in 4 years
Love the show, sometimes hard to follow, especially when those paragraphs come up, but still love it!
I would love to know how Jacob Clifford styles his hair. It's just so perfectly coiffed.
He didn't say, "Thanks, Thought Bubble!"
"International trade is the lifeblood of the economy" I see you sneaked in Adam Smith paraphrase (Trade is the lifeblood of nations).
"Best wishes, John Green"
😁
wow I like these!! I've always been interested in diversity. I might get into something like this.
I'm taking a Economics of the EU class and this helps me with some questions I have been having. Thanks Crash Course.
4:42 NOOOOOOOOOOOOOOOOOO!!!!!!!!!
J/k actually that's pretty interesting.
Hi u chi
so why US dollar always appreciated when they always deficit? ahhh CCP always buy bond of USA.
"gooder service" :(
I liked the video. Especially the part where she’s throwing clothes on his face. ..lol jokes apart very informative.
It feels like the US is becoming more of a “service” economy and That just seems like a bad idea.
We can’t have a country that is primary employed by the Chipotles of the world.
Had to check the year this was made when I heard protectionism lol.
I really appreciate your way of facilitating those kinda solid definitions and make it simplistic for us
Thanks for this series guys really helped me get ahead on the basics for my A-levels
Love this series! Thank you so much for breaking it down. Very helpful!
Thanks for making this video. I'm taking an upper-level Macroecon course and this has helped make it less abstract. Keep it up!
Looking for some clarification. Their argument seems to be that if I save $200 by purchasing an imported TV, then I will spend that $200 on domestic goods and services. However, in the current state of things, it seems that most consumers would be more likely to spend that $200 on more imported goods. Is that better? Also, what consumers who did not have the option of purchasing the more expensive domestic TV, and in fact only bought at TV at all because the $200 cheaper imported TV was available. So, in that case there may be no additional $200 in the economy. In fact, it would seem that instead of encouraging the economy in that situation, it was only creating a false sense of an inflated standard of living, one that would not be possible without the exploitation of trade. This then seems like it would create an expectation, or false sense of entitlement, towards items which are only affordable through trade. I'm not saying I disagree with trade; I'm just trying to reconcile these ideas for myself.
Levi Wright You're not wrong but since the US population has the highest earnings per year in the world i think is fair to assume that there is extra money
The explanations given in the video are facile and misleading. A country that goes on importing more and more, and exporting less and less is in an untenable position. You don't have to be an economist to comprehend that.
no ones gonna mention his acdc belt?
Federico García Lorca - 2017-08-12
Main outtakes of this lesson
a. Net exports - the annual difference between a country's exports and imports
b. Trade surplus - when a country exports more than it imports
c. Trade deficit - when a country imports more than it exports
1) International trade
+ It doesn't make sense to make everything on your own if you can trade with other countries that have a comparative advantage.
- Unsafe and unfair working conditions and environmental degradation.
2) NAFTA, 1994
- Dropped trade barriers between Canada, the US and Mexico.
- Increased US trade deficits. Decreased manufacturing jobs.
- Millions of jobs created. Reduced prices. Net positive impact on 3 countries.
3) Protectionism - Placing high tariffs on imports and limiting the number of foreign goods to protect local businesses. Limited by the WTO or World Trade Organization.
a. Exchange rate - how much your currency is worth when you trade it for another country's currency.
b. Currency appreciation - An increase in the value of one currency in terms of another.
c. Currency depreciation - A decrease in the level of a currency in a floating exchange rate system due to market forces. Foreign imports get more expensive, which makes them fall. Exports to other countries get cheaper, which makes them rise.
d. Floating exchange rates - they change based on supply and demand.
e. Balance of payments - accounting statement that records all International transactions in a country. It's made up of two sub-accounts, the current account and the financial account.
f. Current account - records the sale and purchase of goods and services, investment income earned abroad, and other transfers like donations and foreign aid.
g. Financial account - records the purchase and sale of financial assets like stocks and bonds.
There is a reason why the flow of goods and the flow of money are symmetric. If consumers, businesses and the government want to buy more stuff than their country is producing symmetrically, they have to import it. So there's a trade deficit.
Дмитрий Труфанов - 2019-12-24
Chinese government kept their currency depreciated vs US dollar and that made US import from China cheap Do you know why were they doing that?
Luca Fanciullini - 2020-01-11
Wait, you're not that guy that usually write the "main outtakes of this lesson"
吴杰森 - 2020-02-22
Thank you Bro.
Picharady Emerald - 2020-04-05
Thank q so much ...
Emma Allen - 2020-04-11
Thanks soooooooo much mate