Circular Flow of Income - Macroeconomics

[feelthemelody1]

you my friend are a genius!

[CupcakeAveune]

thank you for the video

[TheOfficialProfessor]

thanks mate but seriously invest in some chalk .

[BrandonC3030]

Thank you for getting thorough with the explanations. It really helped me understand it better, thanks again.

[aerialbuzz]

could you please explain the multiplier? thank you so much

[dolphinspwn]

The Greek government should hire this guy

[maozebong100]

STATIST SHILL

[MsCharlieashley]

Drscribe in as much detail as possible the impact of the great depresssion on those who lived through it.

[sportstuber11]

This guy is brilliant. Where does he teach?

[TheMoestyle]

Thank you so much!

[vivek961984]

Nice. Thanks for this video.

[dineshn]

pause at 0:15

[EwBriii]

@dineshn LOL.

[MatteNoob]

bravo

[jakesmith330]

nice vid, i used this and the Macroeconomics Guide app on my iPhone for only $0.99 and now I'm acing my econ course

[rojash1000]

Good video, thanks for share knowledge with the world!!!!

[teleotec]

on second thought, government could be considered a firm. If thats the case, then taxation would be considered capital from households. So put taxation in with house households and put government with firms. Then if we do that what would be injection and what would be leakage? Would the injection be, newly created money? Would the leakage be debt? Debt is a liability so it really is a leakage. Inflation is an increase in money supply so that would be an injection.Does inflation decrease capital?

[teleotec]

I think you can explain the entire world economy using the first "simple" chart. Just include the over seas firms in the "firms" box. There is no injection just a constant flow of capital (ie. goods, services, investment, labor, land) between "households" and "firms". The only leakage would be "taxation" because taxation is not a good, not a service, not an investment, not land and it is not labor.

[teleotec]

Sorry, another question. Well, I have a few actually. Because capital comes from savings wouldn't "savings" be included with "households" Also aren't imports merely "goods and services"? Are not goods and services also a form of asset or "capital" since all goods and services have some type of value? Aren't "investments" the same as capital? Since government spending requires taxation isn't government spending a leakage?

[ahoblit]

I have a question. Does inflation cause the great income disparity between the wealthiest individuals and the poorest individuals? I think that its possible that when the money supply is increased the wealthiest individuals have the most immediate access to the newly created money. The faster money is created the more frequently the wealthy accumulate it reducing incentive for them to gain wealth by riskier, long term ventures that would require them to invest money in less wealthy individuals.

[Lionheart4046]

@Dmitrydaren

Land, labour, capital and enterprise

[DmitryDaren]

households own factors of production? what nonsense! what factors do they own. Now businesses own all factors of production except labor. And for the latter they are able to set prices, too.

[metubabaful]

there are four factors of production and you are telling us three please correct it...

[oopure00]

@metubabaful You only focus on three in the Circular Flow of Income...

[OHHmeingott]

do I really wanna learn how economy works from a greek... ?!

[qwerty5088]

very much informative ... ur really a good teacher ..

[roddysw08]

beaut

[guyacdavies]

anyone from marlborough wanna say hello?

[johnatv1995]

lol now i have to rewatch the video because i had to vote up on that comment

[johnatv1995]

lol the top comment about the first things that came to mind made my day lol must of been a women to notice that, now for my economics test tomorrow

[allouchem]

i love the sound of chalk on a black board. memories....

[pedroissler]

woo mr aristotle

[B33RisGReAT]

got an A in macro with the help of these videos...

[MegaMojalefa]

I like the way you say ECOMONY

[magaan4717]

I certainly hope that in the next life you can continue to serve in the same education market. Simply, OUTSTANDING!

[ATG0009]

A wonderful machine!...everything flows back and forth.....yet....they failed to see the human factor and measured that into the ecuation. The human factor being....GREED AND CORRUPTION!

[Driftster101]

@ATG0009 That added in there, its in the Leakage Area, there is no specific calculation of how much there is. It's all a ballpark estimate of how much there is in a countries economy.

[Paulboiwarez]

really good video

[HotGuy302]

very good sir... !!! keep it up

[TheJasmineee]

ahh thank you for this! i'm looking forward to viewing all your videos.....even though its holidays ahaha

[SuperNache]

One could also argue that Savings are not leakages because, unless you hide your money under you mattress, the bank to save it in then invests it, keeping that money in the cycle.

[rickyjayjunez]

i wonder how poor old Mr Holden is coping considering the situation in Greece; keep your head up dude and keep up these life saving videos-they are much appreciated (Y)

[MetalGuitarist003]

You think he expected the financial problems Greece is facing now?

[shakespearenapoleon]

Thanks a lot for all of you videos. If your son or daughter doesn't become one of the greatest economists ever, with a teacher like this, then really I don't know...

[pranit13a]

your videos has been a great help..

[osityan]

This was great! thanks yo!

[aditya123sahay]

Thank You Sir :)

[tecampana1970]

Wonderful explanation - Thank you so much!!!! those 6 minutes saved me from 1 hour of reading.

[mattsmurfy]

what about enterprise?

[MarlaSingerIsMyIdol]

Your examples of markets amuse me: 'car', 'meat', 'steel'.

I think only a man would pluck these from his mind first. (Although I know that is a massive generalisation.)

[pajholden]

@MarlaSingerIsMyIdol Fair comment. And you must be a woman to have noticed that yes?

[MarlaSingerIsMyIdol]

@pajholden Indeed. Though I probably would have thought of agricultural and labour markets, not particularly feminine.

Thanks for these videos by the way, they're succinct and have really aided my AS level revision.

[Ramsez]

@MarlaSingerIsMyIdol lol that's a great obsevation. i'm jack's chauvinist pig though, so fuck feminist economics

[RealJ8]

@MarlaSingerIsMyIdol i can't believe the ignorance in this comment. you must be one of those arrogant famale activists who jst think of men as dogs because yu had your heart broken. Instead of listening to what he had to say, no "ur examples amuse me, only a man would say tht!". stupid broad.

[foreseenprophecies]

lol, seeing as you work in Greece, i don't think this video can be seen as reliable when researching how to balance the economy ;)

[pajholden]

@foreseenprophecies By 'balancing th economy' you probably mean 'balancing the government expenditure with tax revenue'. Balancing the economy means nothing. Before you laugh at an entire country, learn your own language correctly. Furthermore, the word 'economy' itself is a Greek word. Perhaps you should learn what Greece has contributed to your life before you laugh at it.

[pajholden]

@cstrosser bye.

[pajholden]

@cstrosser and good luck with wasting the rest of it.

[SubBassCentral]

@pajholden is overreaction a Greek word mate? ;)

[pajholden]

@SubBassCentral :) not as far as I know! Maybe it was an overreaction - they caught me on a bad day. But I am very defensive about Greece - it's a fantastic country with excellent, resourceful people who have been through a lot. The economy has been decimated by the greed and mismanagement of a few and it annoys me when some non-Greeks make the incorrect assumption that all Greeks must be lazy and workshy cheats. They are not.

[Arif4989]

A very very useful lecture Sir, i respect u deep with with my heart. Thank u so much Sir, i found it veru useful:)

[Arif4989]

A very very useful lecture Sir, i respect u deep with with my heart. Thank u so much Sir, i found it veru useful:)

[j0hnb0wman]

thanks for that!

[csakulenzki]

wow! thank you! this is really great

[mikidi92]

Thanks a lot! You're a lifesaver!

YouTube = Best place for revision! :)

[vittoriopain]

Can anybody help me out with a macroeconomics problem, please?

[BolitaMail]

Studying for the Macro AP Test just got ten times easier! Listen and learn :D

(Thank you much!)

[WalkintoaBird]

thank you so much for doing this video. I'm preparing for my macroeconomics AP test and you helped me a lot. I really appreciate it!

[saeedinho]

ur great thanks a lot

[IFyOuClicKThisuRgAy1]

Wow ur a great teacher.

[petercrew]

you mentioned that the households own the factors of production which they supply to the firms. if i'm not mistaken, enterprise is one of them, but you did not include it. is it because enterprise are the firms? a little confused.

[boodle11]

This was super, slightly confused before but simple and clear- thank you!

[authorkarinrochelle]

Excellent Video, Sir! I am totally going to ace my class now. I needed that breakdown. I cannot tell you how wonderful your explanation works in my head now. lol Thank you.

[Heartbreaker1373]

Thank you for your videos sir, they've helped me alot in my econ course so far. Very informative lesson!

[willtwang]

You are so good at teaching!!

[missnell06]

Thank you, this is really helpful.

[WoundedEgo]

I like this presentation but it is not addressing the most fundamental failure point of the macroeconomics of my country (USA) and that is... the greatest "injection" that the USofA has is not from other countries investing in us (that's actually a HUGE leakage issue!) but rather our *natural resources*. This is what actually funded our excesses (that we attributed to our "resourcefulness".

[WoundedEgo]

This was clear and helpful. Thanks so much.

[retroboydeccles]

Just spent an hour annotating what you were saying onto paper for revision notes. I'm a slow writer but I'm using a computer in the exam. Thank you so much for this, really does make sense now, you're a boss!

[enonimoose]

you forgot enterprise thats the 4th factor of production and for those who do not know is the person who has the business ideas the entrepreneur

[ihategigensuresh]

@enonimoose Isn't enterprise the firm?

[ihategigensuresh]

@enonimoose Isn't enterprise the firm?

[enonimoose]

@ihategigensuresh not quite enterprise refers to the Entrepreneurs who are people that organize other productive resources to make goods and services. it is debatable to whether or not they are indeed an outright factor of production or just specialised labour, but the general school of thought i've found is that they are a separate entity.

[thepopular123]

This was really helpful , thank YOU !

[Lynxdom]

Wonderfull! brought more than a few concepts into prospective.  Thank you.

[GreatBritishGal]

You are awesome!!! Thanks for uploading !!!! :)

[heresanand]

great work Mr. Holden

kudos to u....

m a student of macroeconomics 4m India and i loved wat u taught

[Gunnerss09]

this guy is awesome...but under the current greek economic climate, can we really trust him?

[leann8]

brro this guy rocks okrrrrr

[NikiGalabov]

I want this guy to be my economics lecturer!!! :)

[SuperKing613]

@NikiGalabov i wanna be friends and debate money issues, you in?

[03452359874]

thanks,ur lectures r reallly helpfull...thanks again..!!!

[thelocked16]

you are best sir..

[luando212]

for the first time i understand this circular flow of income. thanks a lot mr.Holden! :D

[mgunar]

Great video. You get to the bottom line very quickly, which is what matters at the introductory level. The way my textbook explained it would take 45 minutes or more to understand - and that's just one page!

[rexless11]

WHAT A LEGEND YOU ARE!! YOUR VIDEO'S SCORED ME A DISTINCTION IN MICRO.. USING YOUR VIDS NOW FOR MY EXAM TOMORROW. U MAKE IT SO EASY.

Masters / Sri Lanka

[faizanbukhari]

I have listened so many lectures, But I understand you the best.

believe me I was reading book of economics, I didn't understand it even i was abusing the writer because of his using of hard wording for economics book.

but Sir. Pajholden you are the best.

Regards

Faizan

Karachi, Pakistan

[searfleshjoywear]

thank you so much!id be so lost without ur videos

[ddaniela1000]

Thank you very much for the video. Very well explained :) all the best

[Erickdecastro85]

Very very very good! thank you

[Abu7929]

Thank you, as a layperson looking for an overview, this is just the kind of flow chart explanation of macro economics I have been looking for to get me started.

[NettyiBerry]

THANK YOU SO MUCH!

I understand it now :) my lecture is crap! lol

im going to use this in the exam ^^~

[WMO88]

because of you I cleared microeconomics with a solid B+. Now hoping to score good in Macroeconomics by viewing your videos instead of listening to my dull professor

[TheRicochea]

Thank you.

We covered this today and I was a little hazy on it, this has really helped. You are a great teacher!

Cheers!

[mehmoodk59]

Dear sir

this is kashif mehmood student of MSc Economics from Pakistan. it is your great contribution to upload such videos on youtube. one i searched about macroeconomics lectures and i found your lecture and after listening i became your fan and i have listened about all your lectures i am fan of you now.

wish you best of luck sir

[keepsmilling1]

Thanks for uploading !!!!!!!!!!!!!!

[keepsmilling1]

Thanks for uploading!!!!!!!!

[keepsmilling1]

Thanks for uploading!!!!!!!! hope for more

[stenom70]

The best video l have seen on this site. l suppose because l want to pass my Business Enviroment. l have watched all your videos here and find them very informative, easier to relate to and direct.

Thanks Phil, you are a star..

[ed2767]

mate, thank you so much.

[moraques]

Very concrete and basic video, the essential to start studying this fantastic subject..

Thanks!

[bobichina]

I do love all your lectures. You make me feel I am sitting in your classroom and you are standing in front of me, It's so real!

[vincentca2004]

you should all watch this if classes are that boring...

watch?v=d0nERTFo-Sk

[dimensionn70]

thank you. you decribed it very clearly

[vidrascu88]

I was always very bad at numbers but u have this gift to explain very well, you should be an example to all teachers. Keep up the good work!

[gopikrishnangr]

thanks for the video :-)

i have better understanding now

[gopikrishnangr]

thanks . now i have a better understanding.

[B33RisGReAT]

Macroeconomics actually makes sense to me now. I think I may have a shot at passing my class! Thanks!!!!

[ashleywilson62]

@B33RisGReAT yeah you are right it is good as the "FET SYSTEM"

[zaperovski]

Thanx

[haddockseyes]

Make more vids! . . . best economics teacher on youtube

[1dgkonig]

Thanks. My Macroeconomics teacher is terrible. I can't understand him. You are so clear.

[NarayanLeena]

hey man, that was soooooo damn good!!!! I just started macroeconomics and didnt really understand. This video just makes so much sense. You are definitely the best teacher ever.

[carlcheung4]

Your great job makes an orgasm on me. Thx!!!!!

[lantis123]

Nice lesson! Helps out a lot with understanding :) Looking forward to more!

[rayb0913]

Dude your awesome!

[8644371]

What does the flow of the "injections" into the economy and the dejections—you use the term "leakings"—out of the economy tell us?

[8644371]

Wait. So we take away from other countries to augment our own?

And Government spending? Is that real growth? Or is it temporary?

How does money grow?

Is money the only medium? How does labor get equated into money? Who gets to evaluate how much my backbreaking work is worth?

[8644371]

Who usually invests into the economy? How?

[8644371]

What does Wall Street produce, man?

Don't say interconnectivity.

[ajdaniels5]

Superbly simple but extremely helpful. Thank you!

Just a thought, do you have some sort of table of contents where you organize your micro/macro economics videos to make it easier to find them?

[Warzoooooo]

Saving is not a leak in the economy. It is acctually a very important part of a society. As for all "money" saved, less resources are consumed, and they are available to the industry to work for getting more efficient.

And Govt spending is not an injection in the economy as everything govt spend they have to take from the market.

[vincentca2004]

@Warzoooooo The only person with some common sense!! Governement spending and the printing press will destroy the economy through inflation and devaluation of the currencies. Govt knows only how to tax to benefit themselves, it is not a business, because it has no risks!! I went to the same high school that Mr Holden teaches in but i didnt take Economics with him. Maybe i should have, would have been interesting to challenge him...

[lcemen]

I know this was a general overview, but good job. Thanks.

[mollusc9999]

Thanks very much for a clear, informative and well-constructed video :D

[karthik1107]

Great things explained in simple words in 5 mins . THanks a lot.

I have a question though.

1) Why is US GDP $12Trillion and not $100 Trillion? what is stopping us from increasing GDP?

2) Also, can we print more cash and give it to all poor people in US and increase their standard of living and eliminate the social pyramid?

Thanks in advance.

[vincentca2004]

@karthik1107 are you joking??!! Printing cash will help all poor....hahahaha, get off obamanomics!!! The way poor are helped is by taking away government that doesnt allow competition to happen and know only how to rob the population with taxes and inflation.

[dfjpr]

Brilliant! thanks

[ryanjmcgowan]

Your model has one flaw. It appears you make the assumption it is a very balanced, closed-loop economy with GDP based on only the speed of money flow and negates profits and consumables. What happens when households buy apples? They pay for them with money, then consume the apples and are left with no more value. If the firms didn't have profits, eventually the system would collapse. In order for there to be any growth, profits must be greater than consumption.

[Wonin6billion]

Excellent!

Thanks very much pajholden for making this clear and visual explanation, easily understandable.Educators like yourself, along with thousands of other people sharing knowledge freely across the globe is why I love the internet. Long may it last!

Regards to yourself and the good people of Greece!

[saffaalltheway]

Great video, keep up the good work!

[proudstudent]

hi.ur videos are of great help to me.if u plz do some videos on GNP components(especially on investment and gpdi), NI,NNP,and how to reconcile GNP and NI plus on different approaches used to calculate GNP.i know its a long list but after reading all about national income and its determination i hav'nt got a clear idea yet.i have no teacher and i majorly rely on your videos of micro and macroeconomics.

[rollstuhlunfall]

I've got my macro exam tomorrow, this really helped, thanks!

[iLouisc]

Fantastic video, thank you so much!! Got my macroeconomics paper for AS on Monday...

[allomyself]

does this mean any 'injection' into the economy will have a positive multiplier effect?

what confuses me is that when consumption increases which is not an injection, but still has a multiplier effect. BTW great video should definatly make more =)

[lvngdead]

I respect you very much. You could work anywhere, but you chose Greece.

I'm getting the hell outta America asap and going back home.

[ReadingDave]

This was a nice explanation. I learned a few things. Thank you.

[billybobpie]

great teacher, great country. thank you so much for your help! - many thanks, from Cardiff!

[yavuz178]

i started taking macroeconomics, from the first day I have been watching your videos to understand the concept. You are doing a great job. Your are an excellent lecturer. thanks

[8644371]

@pajholden While I have you here, though—a question: Since I am probably going to move to the U.K. within two years, do you have any advice? Admonition? Insight?

[8644371]

@pajholden My mistake; you work "in" Greece. Still, you have my condolences. I'm not saying that America is that great (actually, in effect I am), but at least it's not as bad as Greece.

I heard those dreaded words on BBC radio: "Draconian" austerity measures. (Then—to really understand the dread you poor, goddamned people are going to be going through—I had to look up what Draconian meant, then I had to look up who Draco was. Didn't sound good.) Again, my condolences.

[8644371]

Uh-oh. You work for Greece. I am so sorry to hear that.

[pajholden]

@8644371 I work in Greece, not for Greece. I live here because it is a great country with great people. It has difficulties now, due to corrupt, incompetent and nepotistic politicians - but it remains a spectacular country. No need to be sorry for me - I choose Greece. I lived in the UK for 28 years, and travelled and briefly worked in the US and various EU countries. Greece is best.

[directoradk]

@pajholden

You are a life-saver! Hope Greece recovers soon from the shackles of poor administration!

[bunce101]

@pajholden Berlin!

[clever50]

@pajholden FUCK no greace is not the best hahahah you retard!

[clever50]

@pajholden but i have to say one thing, i am truely gratefull and have full respect for you for making this video!

[Moyowachena]

@pajholden Thank you for the informative videos. lts UK's loss for sure. l listen to you straight after my lecture and it all becomes a lot clearer. This time l will pass.

[AlaizterURMOM]

@pajholden im alaizter. how is greece best with the amount of dept it has?

[f1mercury]

@pajholden ,

I appreciate your educating me. This was the best presentation on the subject I have seen. I get it now.

Thank you very much. May health and prosperity be with you.

[shawn260607]

@pajholden thanx for the uploads mate u are an eco student's dream come true before exam time :D

[zorgom2]

@8644371 yeah man, he said the country i WORK IN, not for -.-'

[seamr05]

Thank you so much !! Ill just might pass my exam this summer :)

[Kenjineering]

brrr..brrr...brilliant!

[sandiegolover1]

Thank you for doing this!! "I can see clearly now..." :)

[zanfankid]

Isnt a global economy closed?

[52daveg]

brilliant as always

are you a teacher by profession?

[chuqs14]

fantastic explanarion. great job

[claymcneil]

Well done, sir. Thanks.

[jamieheartstwo]

THANK YOU SO MUCH!

i finally understand this chapter!

[tellelephone]

At the very beginning I fell at the first fence which is when you said the households own the factors of production, i.e. land that they 'rent' to the firms.The amount of land owned by households (big purchasers) is minimal compared to land inherited by the gentry (little purchasers) , which creates a huge switch that makes the flow of cash go in the wrong direction..It's not the households who own the factors of production but the few who own big land masses. They financed the industrial revol

[harisk72]

Great job, great teacher ! Nice to have you in Greece