@siggy16 The dudes using a basic economics principle to trick people. 725 Billion in 1930-dollars. Which was during the dip in the great depression. Remember when he said a dollar today is worth .05 cents in 1913? Most economists would pick a stable year to stick with. Plus the gold standard didn't really end until the 1940's. You can go look up how all this stuff works online. It's Macroeconomics 101.
How does this guy manage to find people to sit in his lecture room who are actually less intelligent than him. I can't believe they actually exist.
Is he seriously suggesting that 0% inflation should be a policy objective? How much real growth does he think would be achieved if that were the case?
"it's an illusion". No it's a fact of life that when comparing today's money with that of the past, you adjust for inflation. Anyone who hasn't grasped this concept is a moron.
Actually, he's quite right. There is no reason for inflation if there is sound monetary policy. Goods and services merely become overvalued or undervalued and prices adjust accordingly. GDP IS an illusion if you are using it as a gauge with inflation because when there is monetary expansion, there is reported GDP growth, but it's not real growth and eventually the smoke and mirrors get exposed as we're seeing now.
You really ought to read a book or two on Austrian economics. I can suggest some.
agreed. THat's the whole point of using "real GDP" cus inflation just creates the illusion of an increase in wealth but real standards of living rise through increased output and what people actually live with, not a specific number of dollars especially if your dollars buy less.
Thanks for mentioning these books. might be a bit last second but im' gonna look up these books and get my ass educated. the more i find out about our economy, the more i realize the middle and lower class are about to get an ass full of debt, inflation and end up in the streets.
An approach that brings inflation close to 1% has nearly always lead to low growth. Inflation of 2.5% is not a problem. It's amazing how vague people are when describing how they would like to achieve zero inflation. The last thing approaching this in the UK was the return to the Gold Standard which was a disaster.
growth would be lower but the standard of living would steadily rise and while you wouldn't get big booms, you also wouldn't get big busts. there was a period of time in the 1800s when historians thought it was a depression cus of falling prices...turns out prices were falling but wages staid relatively stable so real wages increased and the standard of living for the majority of people was steadily rising.
depends on the measure of inflation. The CPI is pretty much bogus. It's great for consumers of course if the CPI is stable or getting lower. I think they now use the GDP deflator(supposed to be the broadest measure of the price level), but before they used the CPI...even though the PRODUCER Price Index could be going up 12% they would say "oh there's no inflation" so it's really troublesome if you only stick to one index.
Yeah CPI is a stupid indicator, disregards food and energy, two things that for the longest time (during the bubble) were seeing sharp rises in prices
No because even if you adjust for inflation, there is a higher standard of living now than 50 years ago. You also say that when there is monetary expansion, there is reported GDP growth. What you fail to understand is that there have been several years with monetary growth but no GDP growth. GDP growth is not an illusion if you adjust for inflation.
Why doesn't Zimbabwe with all its monetary expansion have a high standard of living? The U.S. does NOT have a higher standard of living. There is already depression level unemployment, 1 in 10 Americans are on food stamps, there is trillions of debt. GDP growth is another scam because it counts government spending and gov't jobs as GDP growth. The gov't can't create wealth, it can only destroy it. Taking money from the private sector makes everyone poorer, not richer. Keynesianism is a farce.
@passerby23: "Taking money from the private sector makes everyone poorer, not richer." But that's not what really happened, though, is it? No..........no, the reason for most of the world's economic problems{with the exception of the Soviet Union, and perhaps a few other nations}, was because of TOO MUCH POWER going TO the 'private sector'{a.k.a., big business}...........and this is what happened here in the States. We let big business go wild, and look what happened to us.
Can't say I was that impressed by it. What hib00st doesn't seem to realise is that higher than expected inflation, can ease the burden of debt. (Though I'm not suggesting that inflation is the answer to debt problems.) The IFS has a good paper on it.
It is never in the long-term interest of the general good to debase a currency. Period. It reduces savings, thereby reducing capital formation, thereby reducing productive output of goods and services (versus what they could have been without the inflation).
But that aside, government-induced inflation through printing money is as ethical as stealing. It is taxing us without even bothering to inform us.
By the way, be wary of government issued statistics. There is an obvious bias there.
These are all lies! Everyone knows that the economy of the world is run by zionist Jews!
chica476 1 year ago
725 Billion O_O YOU'RE FUCKING WITH ME!!!!!
Anyone have any links to prove this??
siggy16 1 year ago
@siggy16 The dudes using a basic economics principle to trick people. 725 Billion in 1930-dollars. Which was during the dip in the great depression. Remember when he said a dollar today is worth .05 cents in 1913? Most economists would pick a stable year to stick with. Plus the gold standard didn't really end until the 1940's. You can go look up how all this stuff works online. It's Macroeconomics 101.
Mestilf22 9 months ago
@Mestilf22 A comic book in 1940 was like 10 cents, today it's I think 2 dollars at the cheapest
dubified89 7 months ago
This is neoliberal propganda
TheLeftPilot 1 year ago
weak, just like his vid on keynes
FreakishDonQuixote 3 years ago
I've checked the website this links to and there's actually a video explaining the difference between the dfeicit and the debt. lmao!
SERVANTOFSET 3 years ago
How does this guy manage to find people to sit in his lecture room who are actually less intelligent than him. I can't believe they actually exist.
Is he seriously suggesting that 0% inflation should be a policy objective? How much real growth does he think would be achieved if that were the case?
"it's an illusion". No it's a fact of life that when comparing today's money with that of the past, you adjust for inflation. Anyone who hasn't grasped this concept is a moron.
SERVANTOFSET 3 years ago
Actually, he's quite right. There is no reason for inflation if there is sound monetary policy. Goods and services merely become overvalued or undervalued and prices adjust accordingly. GDP IS an illusion if you are using it as a gauge with inflation because when there is monetary expansion, there is reported GDP growth, but it's not real growth and eventually the smoke and mirrors get exposed as we're seeing now.
You really ought to read a book or two on Austrian economics. I can suggest some.
passerby23 3 years ago 12
agreed. THat's the whole point of using "real GDP" cus inflation just creates the illusion of an increase in wealth but real standards of living rise through increased output and what people actually live with, not a specific number of dollars especially if your dollars buy less.
stealthswimmer 3 years ago 4
Yeah, I really can't say much more than the two previous comments.
Just wanted to reiterate that the guy in this video is absolutely right. Inflation is not necessary for economic growth.
Read Austrian economics, seriously. A good book to start with is "Economics in One Lesson" by Henry Hazlitt.
justingaylor 3 years ago 5
Thanks for mentioning these books. might be a bit last second but im' gonna look up these books and get my ass educated. the more i find out about our economy, the more i realize the middle and lower class are about to get an ass full of debt, inflation and end up in the streets.
hib00st 2 years ago
An approach that brings inflation close to 1% has nearly always lead to low growth. Inflation of 2.5% is not a problem. It's amazing how vague people are when describing how they would like to achieve zero inflation. The last thing approaching this in the UK was the return to the Gold Standard which was a disaster.
SERVANTOFSET 2 years ago
growth would be lower but the standard of living would steadily rise and while you wouldn't get big booms, you also wouldn't get big busts. there was a period of time in the 1800s when historians thought it was a depression cus of falling prices...turns out prices were falling but wages staid relatively stable so real wages increased and the standard of living for the majority of people was steadily rising.
stealthswimmer 2 years ago 2
People use real GDP when calculatiing growth. That's why GDP growth is nearly allways lower than monetary growth.
SERVANTOFSET 2 years ago
depends on the measure of inflation. The CPI is pretty much bogus. It's great for consumers of course if the CPI is stable or getting lower. I think they now use the GDP deflator(supposed to be the broadest measure of the price level), but before they used the CPI...even though the PRODUCER Price Index could be going up 12% they would say "oh there's no inflation" so it's really troublesome if you only stick to one index.
stealthswimmer 2 years ago
Yeah CPI is a stupid indicator, disregards food and energy, two things that for the longest time (during the bubble) were seeing sharp rises in prices
jjwilli6 2 years ago
No because even if you adjust for inflation, there is a higher standard of living now than 50 years ago. You also say that when there is monetary expansion, there is reported GDP growth. What you fail to understand is that there have been several years with monetary growth but no GDP growth. GDP growth is not an illusion if you adjust for inflation.
SERVANTOFSET 2 years ago
Why doesn't Zimbabwe with all its monetary expansion have a high standard of living? The U.S. does NOT have a higher standard of living. There is already depression level unemployment, 1 in 10 Americans are on food stamps, there is trillions of debt. GDP growth is another scam because it counts government spending and gov't jobs as GDP growth. The gov't can't create wealth, it can only destroy it. Taking money from the private sector makes everyone poorer, not richer. Keynesianism is a farce.
passerby23 2 years ago 2
This has been flagged as spam show
@passerby23: "Taking money from the private sector makes everyone poorer, not richer." But that's not what really happened, though, is it? No..........no, the reason for most of the world's economic problems{with the exception of the Soviet Union, and perhaps a few other nations}, was because of TOO MUCH POWER going TO the 'private sector'{a.k.a., big business}...........and this is what happened here in the States. We let big business go wild, and look what happened to us.
MiracleMile90 1 year ago
i'm less intelligent than him. my goal is to be as brilliant as you though.
hib00st 2 years ago
I highly recommend it! "Economics in One Lesson" blew my mind away. I also have a playlist of commentary videos on it if you're interested.
Best luck!
justingaylor 2 years ago
Can't say I was that impressed by it. What hib00st doesn't seem to realise is that higher than expected inflation, can ease the burden of debt. (Though I'm not suggesting that inflation is the answer to debt problems.) The IFS has a good paper on it.
SERVANTOFSET 2 years ago
It is never in the long-term interest of the general good to debase a currency. Period. It reduces savings, thereby reducing capital formation, thereby reducing productive output of goods and services (versus what they could have been without the inflation).
But that aside, government-induced inflation through printing money is as ethical as stealing. It is taxing us without even bothering to inform us.
By the way, be wary of government issued statistics. There is an obvious bias there.
justingaylor 2 years ago 2