How To Fix an Economic Crisis financial crisis 2008 explained

by sdfghjWWErtykjbv



This video was made possible by our Patreon community! ❤️ See new videos early, participate in exclusive Q&As, and more!

Images related to the topic financial crisis 2008 explained

How To Fix an Economic Crisis

How To Fix an Economic Crisis

Search related to the topic How To Fix an Economic Crisis

#Fix #Economic #Crisis
How To Fix an Economic Crisis
financial crisis 2008 explained
See all the latest ways to make money online: See more here
See all the latest ways to make money online: See more here

You may also like

26 comments

Economics Explained 25/09/2021 - 6:50 Chiều

Thanks for watching EE nation! ❤️ If you enjoyed, please consider supporting the show on Patreon! 😎
See new videos early, participate in exclusive Q&As, and more!
➡️ https://www.patreon.com/EconomicsExplained

Reply
Tom McMorrow 25/09/2021 - 6:50 Chiều

Your analysis of big banks behavior is perfectly expanded upon in a book I just finished, The Banker's New Clothes.

Reply
TMCD677 25/09/2021 - 6:50 Chiều

This video does a good job of describing post Brexit, post COVID Britain. Empty Supermarket shelves is becoming normal.

Reply
TacoLePaco 25/09/2021 - 6:50 Chiều

Yeah just studying so one day i can fix a countries issue, thinking of making Puerto Rico independent and fixings is issues, since it seems all the governors don't know how to do their jobs.

Reply
Sharika 25/09/2021 - 6:50 Chiều

covid be like: im gonna make it worse heehe

Reply
Whallin Brot 25/09/2021 - 6:50 Chiều

Man I heard of an Austrian guy back in the great depression that fixed the economy by abolishing the central bank. I wonder why we don't do that today.

Reply
durwin pocha 25/09/2021 - 6:50 Chiều

How to refinance a country or location. Enter a new monetary standard, any ideas would be helpful ?

Reply
Gastón Linares 25/09/2021 - 6:50 Chiều

Ah, yes… Keynes at its finest…

Reply
Tony bruh 25/09/2021 - 6:50 Chiều

Anybody else watch these tutorials without actually doing them?

Reply
Jeremy Keller 25/09/2021 - 6:50 Chiều

The US stock markets collapsed today to an all time high.

Reply
11tokarski 25/09/2021 - 6:50 Chiều

2021:
theory goes reality.

Reply
David Warford 25/09/2021 - 6:50 Chiều

hay EE. what would your opinion be on aiming for 0% inflation/deflation and encourage spending by having very high income taxes but allow people to write off almost anything from their personal taxes. essentially encouraging spending by forcing people to either spend their money or give it to the government, I'm sure most people would take the former.

Reply
Blind River Bill 25/09/2021 - 6:50 Chiều

How about the government not messing with the economy in first place, just provide a stable playing field by enforcing the rule of law and protecting the boarders.

Reply
DelayedHapiness 25/09/2021 - 6:50 Chiều

What if, hypothetically, I wanted to save venezuela and make it a international super power

Reply
Jake Zimmerman 25/09/2021 - 6:50 Chiều

I love these videos

Reply
Dan McNerney 25/09/2021 - 6:50 Chiều

"What you earn. You keep." Calvin Coolidge and what you earn more. They roared 1924 more. What other solutions is there all of you out there?

Reply
Edward Dodson 25/09/2021 - 6:50 Chiều

There is a good deal to be learned by studying how depression triggers aligned in the past. So, to understand why the "Great Depression" occurred in the 1930s, one must look at what occurred during the years building up to the crash.

A significant amount of the credit made available during the 1920s went into land speculation. A good primer on what occurred is found in the book "Only Yesterday" by historian Frederick Lewis Allen. Not only did investors become captured by the frenzy of the Florida land boom, this same frenzy occurred in many cities in response to population increases that triggered a significant increase in the demand for both commercial and residential land. An agricultural land boom also occurred during the First World War, during which time farmers borrowed heavily to expand their land holdings and production. A few years was required after the war ended for European farmers to recover, but by the mid-1920s global production exceeded demand, prices fell, farmers defaulted on loans when government guarantees were removed, and rural banks failed by the hundreds.

As the land boom crashed, investors shifted heavily into the stock market, driving up prices well beyond what any fundamentals supported. Thus, by the end of 1929 the U.S. economy was stressed across almost all areas of production as well in the financial markets. To be sure, imprudent bank lending deepened the crash and lengthened its duration, but it was a crash in the making because of the failure to utilize tax policy to tame the credit-fueled, speculation-driven land markets. A few economists (e.g., Harry Gunnison Brown, Scott Nearing and John R. Commons) had argued the case made in the late 19th century by Henry George, who showed that cyclical booms and busts would be tamed only if the full or nearly-full public capture of the potential annual rental value of land and of rents from other sources (e.g., the broadcast spectrum) became public policy.

Harry Gunnison Brown was joined over the succeeding decades by a small group of economics professors who continued to make Henry George's case. One could argue that recessions that began again following the end of the Second World War would have been even worse if local governments did not capture some land rent via the taxation of real estate. However, as land prices climbed property assessments rarely kept pace. This made speculation in land an even more profitable investment.

Relying on out-of-date assessed valuations rather than current market values created a serious analytical problem for government statisticians. They simply did not understand that any increase in the price of land is inflationary and did not include such increases in their calculation of inflation. Another failure has been to accurately calculate the annual aggregate rent that is privately captured as unearned income (whether imputed or actual). Since the administration of Ronald Reagan, the federal government has not monitored land prices. The figures utilized in the econometric models relied upon by the Congressional Budget Office and the Federal Reserve are around 5 percent of the actual potential rent in the economy (see Joseph Stiglitz or Mason Gaffney on this particular problem).

I offer here a very rough estimate of the rent attached to just one part of the economy, the residential property market. At mid-2020, the median price of a single-family property was around $295,000. There are about 140 million existing housing units in the United States. If we assume a fairly conservative median land-to-total value ratio of 35%, this means that the aggregate residential land value in the U.S. is $103,250 per property, multiplied by 140 million = $14,455,000,000,000 ($14.455 trillion). Economic theory tells us that this aggregate land price occurs because of the capitalization of the net amount of rent that remains in private hands after taxation. If most or all of the rent were captured via taxation there would be nothing to be capitalized and land prices would fall to very close to zero. What the rent fund might be depends on the discount rate. If we assume that investors will invest in land if they can obtain an annual increase of 5%, the the rent fund would be calculated as follows: 5% of $14.455 trillion = $722.75 billion of rent JUST for the land under existing residential buildings. Add in the number of vacant residential lots around the U.S. and this figure will increase considerably.

Tragically, the public capture of land rent never became public policy, allowing the land market cycle to operate from boom to bust. It is on schedule to crash again in 2026. I have prepared a relatively short video in support of this forecast for anyone who reads this and has an interest in more details:

https://www.youtube.com/watch?v=fmA6ZPs-wus

Reply
Garrett Shaw 25/09/2021 - 6:50 Chiều

If you reward bad behavior don’t be surprised when it happens again. On the other hand, having read a comment by you guys below, the S&P500 is almost at 4,000.

Reply
Burner Andy 25/09/2021 - 6:50 Chiều

The President doesn't make these choices. The people votes these fucks in and they pretend to fix things and never fix them because doing ANYTHING would be POLARIZING. People want to be in a state of "almost there…"

Reply
Arif Mark 25/09/2021 - 6:50 Chiều

Invest as much money as possible. Nobody knows the future and right now it does not look bright.

Reply
Sandesh Poudel 25/09/2021 - 6:50 Chiều

Joe Biden has entered the chat

Reply
Felipe Tellez 25/09/2021 - 6:50 Chiều

Your content is really insightful. I have to say though that the B-Roll Stock Footage gets a bit old after some time, almost making me feel like a podcast would be a better format. You often supply graphics….more of that instead of so many skylines would be cool =) ….my unrequested 2c's

Reply
Ian Board 25/09/2021 - 6:50 Chiều

I've reached the point where I have ZERO confidence in economists and politicians (both parties).

Reply
Sie P 25/09/2021 - 6:50 Chiều

I was there for The 2008 Australian Fiscal Stimulus, and it's true: we PAYE folk did get A$900. what is even MORE impressive is that everyone on Gvmt benefits/welfare/pensions got A$600. Practically every adult got some cash: a wonderful demonstration of Adam Smith's ENLIGHTENED SELF-INTEREST as THE economic driver.
The UK gave £700 billion to its banks, and got … not much. Each and every British man, woman and child would have gotten £13,000 under Aussie rules.

Reply
Clinton Lunn 25/09/2021 - 6:50 Chiều

The good old USA uses economic downturns as an excuse to give billionaires tax breaks.

Reply
Raymond Nicola Jr. 25/09/2021 - 6:50 Chiều

No! This is what the globalist cabal wants. Total dependence on the government. When you think about it, the tax payer are to become dependent on the taxpayers, what! How stupid is that. Don't be fooled. Well' maybe the majority will be fooled. Dependency on anyone for your lively hood is foolish.

Reply

Leave a Comment