Questions, why did we move away from elemental metal "money", ie. Gold, Silver etc, to paper currency? Paper currency can be forged, elements can't be. Does the world need more "money" that there are elements in the world? Paper of course can be easily reproduced (for circulation). Would be interesting to see a comprehensive historical/economical discussion on paper currency and metal currency.Especially with how gold and other metals affect regional and world economies. Any videos address that?
I agree with the post below @mdadnan. I don't know which order I should watch them in. Please prefix with a number or something to indicate the order.
Can you do a video on PPP? You seem really good at all this economics stuff. Maybe you should do global economics after that. I think it would help tons of people.
Inflation is caused by the increase of the money supply. The more money you print the more inflation you get.
The best way to measure inflation is to look at the change in gold price.
Gold has been used as money for thousands of years. Gold was once used in America as money but the government made it illegal to use gold as money. Why?
Inflation helps governments as they can print money to pay for war and other illegal government actions.
If you use gold or silver as money u can not print it.
@hyylo the price of gold does NOT determine the price of the dollar - now your moving into international economics. Inflation is the correlation between printed money/credit moneys and the cost goods that are associated with them through the stock market and the commodities markets. If a company lays off 2% of it's staff and sees a quarterly profit return by putting people on the street, investors might buy that stock. They see the profit not the mismanagement. Hidden inflation is the result.
There was no talk of the CPI shuffle. Every year/quarter/week/day/whim the "basket of goods" becomes a different basket so that calculation for inflation is an apples to oranges comparison. Today gasoline might be included tomorrow it is not. Today coffee might be included but several weeks ago when it was not, when every coffee distributor skimmed 2oz out of every bag but kept the prices the same. You just lost 2oz of coffee buying power. Is that hidden inflation? Yes it is.
@generationalist that's what governments do, they drop out anything that's going up, while including anything that's going down, this makes very convenient inflation numbers which helps buy more votes at next election - actual personal inflation for the average American/European is more like 7% a year.
@VERGIS92 - DUH - "Is that hidden inflation? Yes it is." - That is exactly what I said, DOH. And to be more precise that is what OUR representatives do - NOT the people of the US. Where did you get that 7% a year number from, site your source or most people will think you pulled it out of your butt.
@generationalist that 7% is a figure based on a research done in the UK years ago, the people interviewed were either paying rent, or paying off a mortgage (the biggest expense), then spending on all other things. If they left their money in cash, it would lose 7% of its buying power in a year! that's
7% inflation.
For people who live on rent, it can be even higher, since rent increases alone can hardly be absorbed.
@VERGIS92 what research? You still failed to site your source. Telling me that it is based on some obsolete data mining err. meta analysis means --- absolutely nothing.
Sal if you are watching can I suggest to put a number in the video title before and after? Usually you have just the title like "What is Inflation" I download all videos but once downloaded they are not in sequence(see the algebra videos they are numbered in end). Obviously you made in a sequence but I have no clue which one should I watch first(in the finance section). Another related issue I cannot find a missed video in the finance section, alphabetically ordered once missed difficult to find
I always wanted to understand what inflation is, but when I finally understood the concept it was the other way around before watching this video! somebody explained it to me as the reduction of people's purchases that lead to the increase in goods' prices!!!! o_O
could it be both ways? like decrease in purchasing power due to increased prices and increased prices to compensate for reduced purchases???
@evergreend inflation is more money supply in the financial system. the more money is printed and available, the more ''demand'' for the same amount of resources. if an apple cost 1 buck, and then another dollar is printed..there are 2 bucks chasing 1 apple. that means that purchasing power was cut in half. each dollar only gets you half an apple now. that is the problem with our economy, they are printing more money and it is chasing the same amount of oil..so you see oil prices go up.
@evergreend Inflation comes (top to bottom) from financial institutions or the government. Normally consumed goods prices people have no control over it. If the dollar gets cheaper for Chinese and Yuan increases then it gets expensive for the US to do any imports, they will do less or as required making local prices go up.
@alphacodexx like the CPI, a lot of their bullshit is blatant for everyone to see. we all just got robbed in 2008 for 800 bilion. then robbed again obama style for a 2nd 700 billion bailout. then he robbed us again with HIS 2nd "stimulus." then the fed started THEIR stimulus calling it QE1, when it's actually the 4th bailout robbery. they just did QE2, which is the 5th blatant robbery. now they're talking about QE3 robbing all american citizens blind for the 6th time.
Khan, I respect your videos here about economics, but unless you're willing to delve into economic theory, I don't think that introductory videos will be especially helpful to anyone.
@KingOfShadows92 He should do some videos on basic reasoning, as it appears you have none. This video in particular helps those who know nothing about economics understand a basic concept which affects their day to day life.
what if we only buy things at reduced listed price or on a special seasonal sale? thats starting to happen but things like fuel and services the prices are unfairly hiked up out of proportions!
@cjracer1000 Bwahahaha. I love the ignorance of a naive political critic. Don't lobby your uneducated views on videos meant to be used for didactic purposes.
Aren't Food and Energy (fuel) Excluded from the governments Inflation Numbers (CPI)?
Shouldn't these two categories Alone be the Most Important part of the CPI?
Why would the government exclude these fundamental necessities of Everyday Life?
mrfoodarama 7 months ago 4
Questions, why did we move away from elemental metal "money", ie. Gold, Silver etc, to paper currency? Paper currency can be forged, elements can't be. Does the world need more "money" that there are elements in the world? Paper of course can be easily reproduced (for circulation). Would be interesting to see a comprehensive historical/economical discussion on paper currency and metal currency.Especially with how gold and other metals affect regional and world economies. Any videos address that?
U2HereY 7 months ago
@U2HereY Gold and silver keep their values despite inflation. If you want to save your money go down to your local shop and buy gold and silver.
The FED is a banking cartel that was created to rob people. When they print money they are taking value directly from your wallet.
mrhnm 7 months ago
I agree with the post below @mdadnan. I don't know which order I should watch them in. Please prefix with a number or something to indicate the order.
U2HereY 7 months ago
You forgot.
Hedonic quality adjustment.
Food and fule exclusion.
Basket of goods Substitution bias.
Teach people the full story. Not just part. or at least follow up on these topics.
Zorn101 7 months ago
Aww...i thought he was making a video of cosmological inflation...and then i realized it was in finance...
Sal please make a video on cosmological inflation, it's confusing.
MonicaKn17 7 months ago
OH...i thought this was about the COSMOLOGICAL inflation. my bad. still interesting though.
Ryagful 7 months ago
How long does it take before these vids are on the khanAcademy website??
SuperBallashotcalla 7 months ago
So if say i have a billion euros and live from percents from that billion, do i create inflation?
SEThatered 7 months ago
Can you do a video on PPP? You seem really good at all this economics stuff. Maybe you should do global economics after that. I think it would help tons of people.
KingPtolemyIII 7 months ago
Inflation is caused by the increase of the money supply. The more money you print the more inflation you get.
The best way to measure inflation is to look at the change in gold price.
Gold has been used as money for thousands of years. Gold was once used in America as money but the government made it illegal to use gold as money. Why?
Inflation helps governments as they can print money to pay for war and other illegal government actions.
If you use gold or silver as money u can not print it.
hyylo 7 months ago
@hyylo the price of gold does NOT determine the price of the dollar - now your moving into international economics. Inflation is the correlation between printed money/credit moneys and the cost goods that are associated with them through the stock market and the commodities markets. If a company lays off 2% of it's staff and sees a quarterly profit return by putting people on the street, investors might buy that stock. They see the profit not the mismanagement. Hidden inflation is the result.
generationalist 7 months ago
@generationalist
what are you talking about? i said gold is money. the dollar is not money.
the dollar is paper with ink on it.
people like you try to make economics complicated.
i think you need to read real economics such as Austrian Economics.
Stop reading the government books on economics from government schools and colleges.
hyylo 7 months ago
I believe you meant to say, in your example in the video, that we say that "inflation is 2%" rather than "the inflation rate went up by 2%."
ihearu2 7 months ago
@ihearu2 Sorry, I forgot the word "rate": "The inflation rate is 2%" rather than "the inflation rate went up by 2%."
ihearu2 7 months ago
There was no talk of the CPI shuffle. Every year/quarter/week/day/whim the "basket of goods" becomes a different basket so that calculation for inflation is an apples to oranges comparison. Today gasoline might be included tomorrow it is not. Today coffee might be included but several weeks ago when it was not, when every coffee distributor skimmed 2oz out of every bag but kept the prices the same. You just lost 2oz of coffee buying power. Is that hidden inflation? Yes it is.
generationalist 7 months ago
@generationalist It's not as arbitrary as you make it out to be.
Mestilf22 7 months ago
@generationalist And yes, inflation can be calculated differently for every single individual however it's impossible to do that practically.
Mestilf22 7 months ago
@generationalist that's what governments do, they drop out anything that's going up, while including anything that's going down, this makes very convenient inflation numbers which helps buy more votes at next election - actual personal inflation for the average American/European is more like 7% a year.
VERGIS92 7 months ago
@VERGIS92 - DUH - "Is that hidden inflation? Yes it is." - That is exactly what I said, DOH. And to be more precise that is what OUR representatives do - NOT the people of the US. Where did you get that 7% a year number from, site your source or most people will think you pulled it out of your butt.
generationalist 7 months ago
@generationalist that 7% is a figure based on a research done in the UK years ago, the people interviewed were either paying rent, or paying off a mortgage (the biggest expense), then spending on all other things. If they left their money in cash, it would lose 7% of its buying power in a year! that's
7% inflation.
For people who live on rent, it can be even higher, since rent increases alone can hardly be absorbed.
VERGIS92 7 months ago
@VERGIS92 what research? You still failed to site your source. Telling me that it is based on some obsolete data mining err. meta analysis means --- absolutely nothing.
generationalist 7 months ago
Sal if you are watching can I suggest to put a number in the video title before and after? Usually you have just the title like "What is Inflation" I download all videos but once downloaded they are not in sequence(see the algebra videos they are numbered in end). Obviously you made in a sequence but I have no clue which one should I watch first(in the finance section). Another related issue I cannot find a missed video in the finance section, alphabetically ordered once missed difficult to find
mdadnan 7 months ago 19
Khan you are my hero!
sahatnow 7 months ago
Khan you could and should teach everything ever!
josepharchbold 7 months ago 11
@josepharchbold All in one video titled "everything ever"
ByTheGram 7 months ago
@josepharchbold Do you think Khan can teach autistic children and children with neurological disorders through his videos? Oh please do.
generationalist 7 months ago
@josepharchbold
I'm still waiting for Mr Khan to teach English
hyylo 7 months ago
The title question is the kind of question that you would like to get a clear answer but feel stupid to ask.
baburo101 7 months ago
I always wanted to understand what inflation is, but when I finally understood the concept it was the other way around before watching this video! somebody explained it to me as the reduction of people's purchases that lead to the increase in goods' prices!!!! o_O
could it be both ways? like decrease in purchasing power due to increased prices and increased prices to compensate for reduced purchases???
evergreend 7 months ago
@evergreend inflation is more money supply in the financial system. the more money is printed and available, the more ''demand'' for the same amount of resources. if an apple cost 1 buck, and then another dollar is printed..there are 2 bucks chasing 1 apple. that means that purchasing power was cut in half. each dollar only gets you half an apple now. that is the problem with our economy, they are printing more money and it is chasing the same amount of oil..so you see oil prices go up.
alphacodexx 7 months ago
@evergreend Inflation comes (top to bottom) from financial institutions or the government. Normally consumed goods prices people have no control over it. If the dollar gets cheaper for Chinese and Yuan increases then it gets expensive for the US to do any imports, they will do less or as required making local prices go up.
mdadnan 7 months ago
CPI doesn't include food or fuel...probably the most important things to the american consumer...this is to keep the figures low and hide inflation.
alphacodexx 7 months ago
@alphacodexx exactly, the two most important resources are not included...
tmac9938 7 months ago
@tmac9938 shows how trustworthy gov is...makes you wonder about other things...
alphacodexx 7 months ago
@alphacodexx like the CPI, a lot of their bullshit is blatant for everyone to see. we all just got robbed in 2008 for 800 bilion. then robbed again obama style for a 2nd 700 billion bailout. then he robbed us again with HIS 2nd "stimulus." then the fed started THEIR stimulus calling it QE1, when it's actually the 4th bailout robbery. they just did QE2, which is the 5th blatant robbery. now they're talking about QE3 robbing all american citizens blind for the 6th time.
tmac9938 7 months ago
Khan, I respect your videos here about economics, but unless you're willing to delve into economic theory, I don't think that introductory videos will be especially helpful to anyone.
KingOfShadows92 7 months ago
@KingOfShadows92 He should do some videos on basic reasoning, as it appears you have none. This video in particular helps those who know nothing about economics understand a basic concept which affects their day to day life.
bennayboi01 7 months ago
what if we only buy things at reduced listed price or on a special seasonal sale? thats starting to happen but things like fuel and services the prices are unfairly hiked up out of proportions!
AUTubeN22 7 months ago
The short answer, Obama.
cjracer1000 7 months ago
@cjracer1000 Keep your politics and negative energy out of educational videos, idiot.
pochankitty 7 months ago
@pochankitty but it is true and it is a freedom of expression so really he can keep his politics and positive energy and being right
HowdidIdothat1 7 months ago
@cjracer1000 you are right
HowdidIdothat1 7 months ago
@cjracer1000 Bwahahaha. I love the ignorance of a naive political critic. Don't lobby your uneducated views on videos meant to be used for didactic purposes.
zNz1G 7 months ago