How The Economic Machine Works by Ray Dalio
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Economics 101 -- "How the Economic Machine Works." Created by Ray Dalio this simple but not simplistic and easy to follow 30 minute, animated video answers the question, "How does the economy really work?" Based on Dalio's practical template for understanding the economy, which he developed over the course of his career, the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur. To learn more about Economic Principles visit: http://www.economicprinciples.org. [Also Available In Chinese] 经济这台机器是怎样运行的: http://www.youtube.com/watch?v=-ZbeYejg9Pk [Also Available In Russian] Как действует экономическая машина. Автор: Рэй Далио (на русском языке): http://youtu.be/8BaNOlIfMLE
Comments
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I think this might be the best video on youtube.
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taxation is theft
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its economy of socialism. fail.
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this video is wrong
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So, if you dont pay your workforce it all falls apart...."incomes rose"? Lol, really? Lol. Wages and benefits have been stagnant or in decline since 1970. what a crock of shit. All explained by a greedy capitalist. The stock market does not reflect the state of the economy. It reflects profit and greed. Not one word of predatory banking. The only way to build a healthy economy is to pay your workforce well enough so they can spend and acquire credit. Period. Look at 1910-1970. What did we do right.? We started gov programs, let unions flourish and taxed the shit out of the rich.
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nice
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The danger with debt it seems to me then is the instability that it can cause which might be a too heavy burden on the human psyche which in turn might result in violent/forceful behaviour.
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roschild NWO let,s kill it
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Very well done propaganda,,,,,
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Thanks Ray!!
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Printing money is not the key to economic growth, and history agrees.
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awesome, but there are some other key points that could be explored in a second video: how much money there really is vs. the extra bebt created by interrest, how that balences out? its not just paying it back, its paying it back with interest, someone in the game is not gonna be able to pay it cause theres more debt than actuall currency.... can you explain that to me?
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Our 'credit' economy only became larger after the super rich big business owners got political clout and repressed wages and unions. That ramped up a LOT in the 70's, after the unrest of the 60's, when the greedy got worried about 'the power of the people'. The greedy had already ensured that public school education equated socialism with communism, and did NOT teach us that many other countries already had free healthcare, free education, great maternity leave, paid vacations of 4-6 weeks per year, and so on. They sure did NOT want American workers to demand those things. When wages were repressed, then the super rich could offer easier credit so they could make more money (interest) from the plight of the workers!! They never miss a trick, and they always tell LIES about why things are the way they are. (We even had FREE COLLEGE here for about 100 years until the wealthy saw that more people wanted an education, so they figured a way to give us 'loans' to go to college; they pretended the government could not fund the colleges, so people wanting to go would have to pay. Same old crap they do about EVERYTHING!!) http://www.nationofchange.org/2016/04/21/free-college-worked-us-100-years-elite-took-away/
PLUS - technology has now increased productivity but will less labor, but all the PROFITS are going to very few at the top, leaving Americans without enough full-time, decent-paying jobs. This is why Basic Income is being discussed - not just here, but in many countries, because the pathologically greedy managed to push for unregulated capitalism which is seeing a failure in most of the Western world countries.
If you want better info about how our economy CAN and SHOULD work, listen to Stephanie Kelton, Warren Mosler and others. Since 1971, when we went off the gold standard, our government has been able to print all the money it needs. And guess what? A government DEFICIT is actually GOOD FOR THE ECONOMY, since it means that the money the government put out is STILL OUT as a credit in the non-government economy!!
Yes, we have been told lie after lie after lie to keep us down, and we should have had healthcare for all, free education, GOOD WAGES and benefits, etc., as so many other countries have had for DECADES! Richest country in the world - and the pathologically greedy at the top lie, cheat, steal, defraud, and give us propaganda to keep us down and struggling so they can feel superior, and make money from the wars and oil, etc. smh -
Unemployment isn't paid by the government - it's paid by a worker's former employer. Unemployed people may depend more heavily on other government subsidies, such as food stamps, but their "Unemployment Pay" comes out of business costs, not taxation.
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Not clear how credit disappeared before they started printing new money. How did they destroy the old money?
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So basically the hole notion of credit is whats fucking us up economically? I mean if you produce more you are richer, not if you borrow more, because you are not making a genuine transaction but instead you are buying with credit and no real money.....That can sum up things pretty well?
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This is a beautiful way of providing people just enough to think it's true but not enough to understand the real ramifications of credit. You see, when your wage gets deposited in a bank the bank becomes the legal owner of it and gives you credit - bank's private money.
Those numbers on a computer are credit.
Since everybody believes that those numbers are just representations of "real" money (physical money ) and that they can always convert those numbers into paper, they accept credit for repayment. However, the banks then "extend credit" that is to say, they enter new numbers into computers. In order to do that , they need somebody willing to go into debt. Further more, that person has to have wealth that can be taken away if they can't repay the debt. This is important to remember. The more wealth you have the more credit you can get. The richer you are - even more richer you can become.
But hold on, since the bank needs our paper money in order to create its own will we get anything from those upstart capitalists?
:D NO!
In fact, we are even under risk of a bank run. We might not even be able to convert banks money (credit) into paper.
Further more, since the banks expand the quantity of money in economy, will there be increase in prices of goods and services?
:D YES!
Who benefits from this? Well, let's see:
The first economic class ( the profit class) has fixed costs ( wages and bank debts ) and non-fixed income (profits).
The third economic class ( dependant workers in a free-market ) has fixed income (wages) and non-fixed costs (goods and services for living, etc.)
So, profit class benefits from price rise and workers do NOT!
So why , oh why would most people keep they wages in a bank?
Because they have to. Either government has made a regulation that wages get deposited in a bank or business will do it by themselves because they benefit from credit.
So you see, you are forced to finance the accumulation of wealth so that those industrious capitalists, like Ray Dalio, could become very rich.
The amoebas that lick Dalio's boots don't realise a thing or two about conflict of interests. It doesn't matter if you have a lot of money and degrees if telling the truth turns out to be a bit uncomfortable for your interests. Everybody protects their own interests and in the game of life those that don't understand the system, like the aforementioned amoebas, end up serving somebody else's interests.
Why don't most capitalists seek capital by offering chares of tehy ventures. Because you have to share the profits with the investors and that's not how you get rich fast. -
Holy Crap! This is the most effectively clear and complete lesson on the basics of the economy I have ever seen. It is knowledge capital gold. As soon as I get home I am going to have my children watch this YouTube video - over and over again. Three Cheers for Mr Dalio. I am going to check out his other videos. I just discovered these. Kids all over the US at colleges and universities are paying a fortune for this content and they graduate without any clue. Dalio is giving it away for free. This is their cheat sheet for a fundamental understanding of the economic system including credit and debt.
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Wow, I watched the whole video and found that it was incredibly useful for me! Rather than reading a thousand pages in the book. Thank you!
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how can I get those videos in My email allyraymond1419@gmail
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