Keynesian Theory in 5 min

Wtf 😂

This was the best video, I've ever watched. Thank you for a explaining a theory in 5 mins.

That equation actually does a pretty good job on explaining what happened to a Keynesian's minds

It's so outdated but still way less distorted than modern economies. Can still work in some countries with very low debt, a young population and assets. But they need stability, that's what african countries always lacked and efforts to cut ties with western countries have been counter productive. It's like leaving NATO before building an army. Literally, they can't do without western countries without stable economies, which they clearly don't have and there's always civil unrest and civil wars. They just end up being bought by China and relying on Russia too much when they've shown to be unreliable partners for what they expect from them.

LMAO! This is ridiculous and is definitely not Keynesian Economic theory. 😂

Amazingly dumb

Brock represents the governament?

This is full genius.

This was a unique and genuinely awesome music video to educate 😂 loved it

one of the lamest idea you have discovered to teach this.
it was totally a waste of time .

hyper inflation doesn't result from printing money if it's used to invest in productive assets. If Brock was really a Keynesian he would have spent money on tractors and factories instead of shopping sprees.

Now Brock is dead and his soul is being tormented in hell for eternity for causing all that suffering and corruption on earth.

“Eat and enjoy yourselves a little; indeed, YOU ARE THE CRIMINALS.”
(Quran 77:46)

And the Day those who disbelieved are exposed to the Fire, "You exhausted your pleasures during your worldly life and enjoyed them fully, so today you will be punished with the torment of humiliation for the arrogance you used to show on earth without right, and for the sins you used to commit.”
(Quran 46:20)

What Japan's self-proclaimed Keynesians are claiming is crazy.

Simply put, "the more profligate the government is, the better the economy will be, so the fiscal situation will improve.

They are tantamount to claiming that perpetual motion is a real thing.

Of course, they don't forget to take precautions. They think it's enough to add at the end, "But moderation is necessary."

But. That is like saying, "Use plenty of stimulants, but use them in a way that doesn't harm your health or get you addicted.

It's just a contradiction.

When you say you need stimulants, you are an addict who will never be healthy again.

Wonderful assassin-job on Keynesianism. And wonderfully erronious too. Well, easy answers are always most popular!

A load of bollocks

funny but nonsense

You may have forgotten that one's spending will become other's income. So...

This is wrong in so many ways it only proves you don't know anything about economics

If you want to understand why this is a terrible argument against Keynesian policy, first of all:
- Leaving aside whether it's a strawman or not, the monetary policy described is a monetarist policy that was advocated by Milton Friedman, and monetarism is not part of Keynesianism, it came later. Furthermore, monetarism was developed in opposition to Keynesianism. This argument is a bit like blaming Toyota for your Jeep breaking down.
- As pointed out by others in this comment section, Keynesianism only advocates this sort of massive fiscal stimulus during a recession.
- People are not countries. When a country gives money to its people, those people then spend it, primarily on local goods (such as food). The revenue from this spending then goes to businesses that sell that produce, who then give part of that money to their employees, and part of it to tax. Those employees then also get taxed. So part of the money will go back to the government that way. Furthermore, when companies see such an increase in their profits due to that increase in spending, they'll use part of that money to expand, increasing their productive capacity. This increases their profits, and thus also increases the amount they pay in tax. Because of this, countries that use Keynesian stimulus often accumulate relatively small amounts debt compared to their policies' economic impact, and also find it far easier to recover from a recession than countries that implemented austerity, as Keynesian policies avoid the massive contraction in productive capacity that austerity causes. This means that when the fiscal stimulus policies are eased, the government is able to reduce its debt quite rapidly.
- "In the long run, we're all dead" is a cherry-picked quote. The full quote is this: "The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is past the ocean is flat again." What Keynes is criticising here is the view of many economists at the time that eventually the economy will go back into equilibrium if the government doesn't interfere, so long as we wait long enough. Particularly, in his General Theory, he argued that if the government refuses to ever intervene, economies can get stuck in an equilibrium of underemployment - that is to say, the storm will never end, and the ocean will never be flat.

Shut idiot!!! Yea ur so special you work Fuxk off everyone deserves a good life

"Bur Brock was a Keynesian" 😂😂😂

Propaganda from the current economic status quo. Nothing to see here.

I’m here for the sick beat

People get hurt that way

great music choice

wow

Nice cartoon simplistic thinking of Milton animated beautifully ...hasnt aged well

The fallacy of Keynesian theory in a nutshell... A man finds $20 on the ground and buys a lunch out that day even though he normally brown-bags it. And, going forward, he buys lunch out every day afterwards.

It's very much the notion that as long as you never stop drinking, you'll never get a hangover.

not quite Keynesian theory lol

Someone who never studied Keynes or economics made this film. Completely got Keynes wrong and is running on right wing stereotypes. Most of the modern World adopted Keynes after WW2. Only too be abandoned by the United States in the 80's for Milton Friedman's "monetarism." If your having problems with "debt" and overspending blame Milton Friedman and the monetarism that runs the country.
If you want to know the successes of Keynes...Look at Europe, Asia, and other countries that invest in the sciences, education, infrastructure, and health. Look at their middle class as opposed to ours. If you look at other indicators outside of the GDP, the United States is a train wreck.

As Post-keynesian i officially want to say i have never seen worse video about economics

Great video! Only issue is that empirically Keynesian ideas don’t actually hold

"But Brock was a Keynesian"

Its investments into infrastructure and public services, not cars and luxury goods. These investments provide jobs and pay dividends down the line. We waste so much on military budget, 1 trillion for a war jet prototype that failed, but 1/5 of all miles of roads in america are in desperate need of repair

Should compare Keynesian theory vs Keynesian practice bc theory has saving while in practice it is ignored

Too bad the whole thing basically falls apart because the point of Keynesian economics is that the government spends so the private sector can better save and invest. Seriously, gov spending puts $ into the economy, taxation takes $ out, so if you have a deficit its a net flow of $ into the economy. This makes it easier to save, especially during a recession!
See....the government is not a household. This is what so many fail to grasp. WE need to go austere in tough times, then we can spend more as times get better, and as we do the gov budget deficit naturally shrinks bc more spending = more taxes. The government spending kinda balances our savings. Like if you drop the ideology and getting caught on conceptual ideas, it's really quite reasonable.

I wont even bother touching the notions of taxation being theft or this silly fear that inflation is constantly lurking (dont yall have eyes? Where is the damn inflation! "its coming" we've been waiting since 2009) and the idea of fed created money being "counterfeit" I dont even have words for. Nor does the Central Bank just print $ and throw it into the economy. I am sorry but this is just woefully ignorant or purposefully misleading. Like if anyone sees any video, person, anything that says "The Fed prints money, throws it into the economy" stop right there and run away. That is so woefully incorrect I cant even

Whats the matter neolibs? Trying to distract from trickle down lies?

America summed up in 5 minutes

This is a great video,,,, but the music made it REALLY hard to focus

People ain't getting the point if disliked the video, obviously Keynesian theory is being used improperly but its highlighting the points and result of Keynesian thinking and its effects on lack of national investment leading to more keynesian theory as a result.

comments are kind of brutal but i think this is a great video for people to learn basic economic theory

I'm going to go out on a limb and say that the person who made this video has probably not studied economics. This video discounts the complexity of economic theory. Economics is not as simple as people want it to be. In our modern economy there are so many moving parts and so many factors to take into account that nothing is this simple and nobody has all of the answers. This video is such a bad take that is meant not to teach Keynesian theory, but rather to manipulate opinions with superficial examples. There is nothing academic about this.

Now do MMT. I think it stands for Magic Money Tree?

To whom it may concern (why this video correctly explains Keynesianism):

1. You borrow my money without paying back.
This is achieved in multiple ways now. One is indirectly through deposits in the bank. You used to be able to get some interest on your money sitting in your bank. Now, your money can only lose value in the bank. Even if you "save it", the interest is much lower than annual 2% inflation. It is also achieved through taxes, where you give government money to fix things, however, most of that money isn't used for actual services. It's usually for paying interest on previous debt.

2. You print money and diminish my purchasing power.
This is done through trading bonds between governments and banks (this is the new system of "printing money). Today, when your government "prints money" it's mostly to keep the money flowing and that's ok. However, what used to be called printing fake money is now distilled into a bond transaction between your bank and the government. When government wants to increase money supply, they buy government bonds (and pay interest) from the banks. When they want to reduce it, they sell bonds. It is amazing to me how people don't care how did the bank buy government bonds in the first place. This is even worse, because before, when government printed money, the bank would lose too. Now, only the government (aka. people) lose on every transaction back and forth. Moreover, what I've noticed in the EU is that even when government buys bonds from the banks to increase flow, banks stay reluctant and don't give out credit. So what's the point if the only way to spread new money is through credit that you have to pay interest on and banks are barely giving any credits.

3. You steal my money with impunity.
This is done through ridiculous government taxes on top of previous two points as an extra added bonus...

D+I = P
Yes, this is what many people believe. They build debts and expect the inflation to eat up their debt. And this actually happens, which makes other people stupid for not doing it. On top of that, if you're good with the bank (aka. corruption), you can get better credit and you can pay significantly less for it than other people in the market. This gives you a direct advantage in the market.

List of businesses with advantages:
1. Medicine suppliers
2. Hospital equipment suppliers
3. Dental equipment suppliers
4. Realtors
5. Any import export company dealing with any government supplies.

Those mentioned above are just the few businesses with special privileges that universally get huge amounts of credit with no problem. And banks will be very flexible with them.

It wouldn't be a problem if banks were private and if they could lose money. But keep in mind that banks cannot lose money, the government will always save them and on top of that, the money that they should've been giving easily because government bought bonds to increase money supply is usually not given easily to regular people.

I have personally had to bribe a bank manager in order to get a credit.

argentina be like:

Wtf. I was supposed to do my assignment. Why am watching this.

This is one of the most poor presentations I've ever seen

What can be learned from any of this? when it is realised that perpetual growth can not be sustained theft becomes the order of the day. We need to minimize non democratic corporate owned government control so no more dictators, workplace and community direct democracy is the only way this would not be hard because the working week can be reduced because of mechanisation. No sate nor flag should be bigger than its people!