This is the same economic theory that has created the debt crisis. Economic growth does not come from spending, spending is a function of economic growth. Investment and savings cause economic growth, keynsians believe you borrow your way out of debt, by 'stimulus' creating AD. History proves this is bullshit, US DEbt has grown exponentially, along with the money supply, and the GDP is a false indicator as it is directly proportional to debt.
You saved my butt last semester in Microeconomics, and it looks like you're going to do it again for Macro. Thanks a ton! You're way better than my professors. I can't pause and rewind them. :)
I wish more people were educated on things like this, they explain the current occurence in America, the media blows crap up for hype, people fall. Also, government does have to intervene in the economy, keynasian politics IS what causes the business cycle, withought it wed just keep reeseding like with what happened during the great depresion, since then governments saved us.
Maybe not if it's nominal GDP, but if it's REAL GDP - the output of goods and services that the country produces -- then yes, (theoretically) more stuff being produced means more people needed to produce it.
Ponzi schemes, etc can increase GDP but they do not increase employment of human resource. When economist talk about employment they are talking about use of all economic resources. That includes people, we just have now by idioism taking that to refer to human jobs. Full Employment does not technically even mean jobs. It just means use of all resources in the economy. GDP can increase employment but it does mean better quality of living. limited space, hope I helped you out.
This is the same economic theory that has created the debt crisis. Economic growth does not come from spending, spending is a function of economic growth. Investment and savings cause economic growth, keynsians believe you borrow your way out of debt, by 'stimulus' creating AD. History proves this is bullshit, US DEbt has grown exponentially, along with the money supply, and the GDP is a false indicator as it is directly proportional to debt.
Rasterius 3 months ago
Thank you so much for posting these! I'm reviewing for my AP test right now and you have no idea how much help you videos are! Thanks again! :)
Ironheart15 10 months ago
You saved my butt last semester in Microeconomics, and it looks like you're going to do it again for Macro. Thanks a ton! You're way better than my professors. I can't pause and rewind them. :)
NinjaSteve1 1 year ago
I wish more people were educated on things like this, they explain the current occurence in America, the media blows crap up for hype, people fall. Also, government does have to intervene in the economy, keynasian politics IS what causes the business cycle, withought it wed just keep reeseding like with what happened during the great depresion, since then governments saved us.
prjerry7 1 year ago
What causes the business cycle?
funisverygood 1 year ago
Maybe not if it's nominal GDP, but if it's REAL GDP - the output of goods and services that the country produces -- then yes, (theoretically) more stuff being produced means more people needed to produce it.
mjmfoodie 1 year ago
theoreticallly speaking, does increase in GDP mean increase in employment? if yes, why?
MrAntiemo123 1 year ago
@MrAntiemo123
Ponzi schemes, etc can increase GDP but they do not increase employment of human resource. When economist talk about employment they are talking about use of all economic resources. That includes people, we just have now by idioism taking that to refer to human jobs. Full Employment does not technically even mean jobs. It just means use of all resources in the economy. GDP can increase employment but it does mean better quality of living. limited space, hope I helped you out.
Ryukikon 8 months ago
This has been flagged as spam show
THIS IS ALL NONSENSE. AUSTRIAN ECONOMICS FOR THE WIN. SEARCH PETER SCHIFF, TOM WOODS, RON PAUL FOR MORE INSIGHTS.
mjmfoodiesucks 1 year ago