60 Second Adventures in Economics (combined)
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TELL US WHAT YOU THINK and help us improve our Free Educational Resources https://www.surveymonkey.com/r/2015_YouTube_descr For more like this subscribe to the Open University channel https://www.youtube.com/channel/UCXsH4hSV_kEdAOsupMMm4Qw Free learning from The Open University http://www.open.edu/openlearn/money-management/money/economics --- Ever shaken an invisible hand? Been flattened by a falling market? Or wondered what took the bend out of Phillips' curve? David Mitchell helps reveal some of the great dilemmas faced by governments trying to run an economy - whether to save or spend, control inflation, regulate trade, fix exchange rates, or just leave everyone to get on with it and not intervene. You'll learn why Adam Smith put such a high price on free markets, how Keynes found a bold new way to reduce unemployment, and what economists went on to discover about the impact of policy on people's and businesses' behaviour - which may not always be entirely rational. Playlist link - http://www.youtube.com/playlist?list=PLhQpDGfX5e7DDGEQvLonjDQsbclAF2N-t --- Study economics with the OU http://www3.open.ac.uk/study/undergraduate/course/social-sciences/economics/index.htm ---
Comments
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1:30 - if technology destroys jobs, wages will drop? - why?
businesses will hire more people? - why when technology is already doing the job?
not simple. -
What is meant by equilibrium in 'the invisible hand'? Does it only mean Demand=Supply but that idea is not plausible in real world where every moment need is created and destroyed.
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I think that the thing with economics is that there are way too many people challenging each other, some with a solid foundation and others with no idea or a poor understanding of what they are talking about but who, however, are the ones holding to their opinions the strongest. But it's YouTube, I doubt there are actual people commenting here who know what they're talking about.
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Please do more on economics or cap markets!!! Thanks!
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Would a global currency and unified static interest rate solve the perfect trinity problem?
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Worth mentioning every single theory here has been put to the grave (and some are completely misrepresented here).
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Dangerous assumption in this video:- . - That governments 'create jobs' when the reality is there is an equal argument that they 'destroy jobs' by entering the market to redirect resources that the market would otherwise use by competing with the private economy on an unfair basis because of the government's exemption from risk of bankruptcy that does not restrain them from paying higher prices. The reslultant effects are government can always win against the private bidders for goods and services.
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Economics are confusing AF.
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On to the second point, which is the idea that savings decreases the constrains on lending. That is, that "fractional reserve" system constrains banks by limiting the amount they can lend, thus more savings equals lower interest rates.
While there is some truth to this, banks are not in any way constrained in their ability to make loans based on savings. Savings take money out of the productive economy and does not offset the lack of spending that results.
MV=Py
Money x Velocity=Price x Quantity.
Savings reduces M and unless V goes up (which has been historically constant) or P falls (again historically P is hard to move and often happens out of sync with a decrease in M) Which leaves quantity which must fall (increasing unemployment).
When people save the governments response should be to balance the equation though increased spending. If people decide to deploy funds in savings, the government should decrease M by increasing taxes or selling of securities (savings).
AND OMG, falling wages (due to increased unemployment) do not encourage business to hire more people. Business are coin operated. They don't hire unless there is an increasing demand. Increased unemployment means more people with less money!
Taxes aren't about paying for spending, they are about maintaining the equation MV=Py. -
So.... 30 seconds in I have to stop and point out to our viewers that the first claim made in this video is 100% wrong. Adam Smith used the term invisible hand 3 times in ALL of his works and NEVER in the context given here. Since I can't send you a link to something that doesn't exist. I challenge anyone to link back to Smith's work showing where I'm wrong. The longer this stays up here, without refutation, the more it should lend credence to my claims, at least for those who don't wish to search Google or read all of Smith's works to see if I'm correct
The Irony is that Smith argued against the ideas in what has become known as "Free Markets" the term invisible hand is supposed to represent. The term Free market is simply a euphemism for "lawless markets".
The myth that Smith is famous for is nothing more than an ideological construct.
The 1st use of the term in Smiths works was regarding the superstitious Greeks.
The 2nd use was when Smith pointed out how Mid evil landlords shared their wealth with their servants to prevent them from starving. While this may seem close to what we recognize today, Smith never argued for this idea and actually said that it was inefficient and wasteful.
The last appearance of the term was in the context of national security. -
Free Market is fine as long as a Giant foreign economy isn't artificially devaluing its currency, paying its workers peanuts and completely disregarding health and safety, but its a good job China is a real place isn't it.
Nice propaganda OU -
Who's watching this after Brexit?
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You totally skipped talking about the supply of money in the Philips Curve section.
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IS THAT DAVID MITCHELL?
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Excellent...
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3:45 as if exporting goods doesnt use up resources... the 10 largest cargo ships use up more fuel than all passenger cars in the world.
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humorous yet educational
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Ha Ha. Humans are Not rationally motivated. They are emotionally motivated per brain chemistry and structure.
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A crocodile hunter from New Zealand? That'd be a boring job unless you were in a zoo... don't you mean Australia?
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Is an economics degree worth pursueing?
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