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Fiscal Policy and Stimulus: Crash Course Economics #8

9529 ratings | 928807 views
In which Jacob and Adriene teach you about the evils of fiscal policy and stimulus. Well, maybe the policies aren't evil, but there is an evil lair involved. In this episode we learn how government use taxes and spending influence the economy. Sometimes the government gives, and sometimes it takes. And the giving and the taking can have a profound effect on how economies behave. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark , Elliot Beter, Moritz Schmidt, Jeffrey Thompson, Ian Dundore, Jacob Ash, Jessica Wode, Today I Found Out, Christy Huddleston, James Craver, Chris Peters, SR Foxley, Steve Marshall, Simun Niclasen, Eric Kitchen, Robert Kunz, Avi Yashchin, Jason A Saslow, Jan Schmid, Daniel Baulig, Christian , Anna-Ester Volozh Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
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Text Comments (1201)
Vetri Prasath (15 days ago)
What is micro and macro economic
Akshit kubadia (23 days ago)
Fat teacher
Luke Leone (24 days ago)
So we're not going to tell you which side to take, but if you believe in the classical theory, you basically believe in bloodletting....
Maruha Starshaya (25 days ago)
Finally someone mentioned that tax rising harming the economy, Europe still can't understand it
Matthew D Gilpin (1 month ago)
Ok, genuine questions for anyone who knows a whole bunch about econ: Surely the most logical government policy to expand the economy would be to cut taxes for the poor (as they save less and spend more, adding value), increase taxes on the rich (to reduce/manage the deficit, and reduce the amount of money lost into the savings accounts of the wealthy) and increase public spending, so as to increase jobs? Everything there seems to make perfect sense... So why have there been so many cuts to taxes for the wealthy in recent history? Surely that damages the economy, as the rich are just saving, and the government is losing its spending power? Similarly, why did anyone even consider austerity practices like my country, the UK?
FJ Maneja (1 month ago)
Mike is gay
RuizuKun_Dev (2 months ago)
When was the last time we got Tax a cut?
Nicholas Wong (2 months ago)
I know you guys try very hard to sound unbiased, but your bias for Keynesian economics still shows.
Carla Ae (2 months ago)
i am watching your videos for over an hour now, which is literally saving me from failing my macroeconomics test tomorrow morning. you explain that stuff way better than some profs in university as your videos are perfect to understand mathemetically complicated theories! Greets from germany and lots of thanks for all the work :-)
sebastian waseskuk (2 months ago)
Question: how does the government borrow money. And how does gov deficit spending raise interest rates or why?
Edwin Oscov (2 months ago)
she's lovely XD
Dao Pham (3 months ago)
Thank you!
Justin shockency (4 months ago)
Tom Patterson (4 months ago)
the rich have everything they could ever want, so they will just save, since saving is the default state, and in absence of purpose, all things go to the default state, given human nature.
GR8 DANE (4 months ago)
This video sucks
Cory (4 months ago)
Ya'll are gonna pretend that credit and interest rates aren't a thing? And that 2008 was a typical dip in economic growth? Lol k
klose king (4 months ago)
I can't concentrate, i keep looking at her body (hot body)
mikhail king (4 months ago)
4:31 RIP George H.W. Bush.
quoc nguyen (4 months ago)
I think Fiscal policy created job that is not sufficient since it does not have any incentive or demand on the job. Create a job is easy, I can tell someone to dig a hole and fill it up, that is a job.
quoc nguyen (4 months ago)
questions I have for Fiscal Policy: let say if the government deficit was applied then does that mean that the citizen have to pay more taxed or where does the money to pay the worker? If so does it creates incentive for business to grow bigger and create more job?( I bet no). Then I do not think Fiscal Policy do any good to the market. I know that complete Fiscal Policy is impossible without inflation; inflation in the recession is abundance already, I do not think it is a good Idea
ARgmail (5 months ago)
Corruption and cronyism is almost built in to the Keynesian model.
oo0O0 (5 months ago)
Libertarianism is astrology for men.
mozak plesa (2 days ago)
"self ownership and private property is astrology!"
Nelson Swanberg (5 months ago)
One thing the Fed ensures is inflation. As soon as you start raising interest rates to combat inflation prices go up. Somebody needs to study the short term impact of increasing interest rates on inflation and what the affect is on the feedback for the control loop regarding inflation and employment. haha Crypto might undo it all.
Sedar Games (5 months ago)
7 00
nathan madeira (6 months ago)
i cant believe you guys managed to get economics to be entertaining
smile444 (6 months ago)
this should be teatched in school. I swear i stopped counting the number of morons spouting this "taxation is theft" bullcrap
Sean Lhexter Balanquit (6 months ago)
Heck whats with all the weird introductions, lmao!
Justin Wright (6 months ago)
The best part about this is I can dislike it. hit the dislike button on the video pls, thx!
smile444 (6 months ago)
and ? Just because you already knew it and didn't find it funny doesn't mean it is the case for everyone
Justin Wright (6 months ago)
because they say everything that I already know, and try to be fun and it don't work
smile444 (6 months ago)
oh and why should we dislike it ?
Tyson Wildman (6 months ago)
This helped me grasp this concept SO much easier. I was lost and thought I'd fail my essay. I am extremely grateful for this video and the rest of the economics series. Keep up the great work.
Justin Fair (6 months ago)
at 7:05 I was like "I thought u.s. debt went over $10t already, what happens to the clock?"so I googled and, guess what, another digit is added to it. that is so sarcastically convenient as how congress raises the debt ceiling
ray1983able (7 months ago)
Recessionary Gap , Inflationary Gap , Macroeconomics , Fiscal Policy , Expansionary Fiscal Policy , Contractionary Fiscal Policy , Deficit Spend , Crowding Out , Austerity , Multiplier Effect .
James Mac777 (7 months ago)
Fiscal policy like presented here is economic mythology (I'm not saying it is wrong, where each nation's mythos makes the laws, but there are a lot of interpreted variables for any viewpoint); you can look at indicators after an event, you can change your stories as they happen, and you can teach how this happens, but nobody is sure. The problem with storytelling is that it is still a story, even if it is based upon belief. My concern is the national debt that comes with interest, and there is more at stake than spending money, because interest is a deep, deep hole to be in. In addition, the building a new bridge in government spending comes with political strings, where the Federal Government undermines State authority to political control the population through money programs and fancy idealist practices, and this undermines benefits in favor for what is socialism and the authoritarian caregiver state that even regulates religion through the tax codes. There is much more going on here than just stimulating the economy, it is also politically driven and is also about control, driven, national policies.
Dan silva (7 months ago)
Why would poor people be more likely to spend and wealthy people be more likely to save? Wouldnt it be the other way around?
CE01 (7 months ago)
This channel has a very progressive liberal bias. This video was a shout out to Keynesian economics and it compares Austrian economics to out dated medical practices.
Schmeekeer (8 months ago)
What's wrong with this woman? (no hate)
Rick Charles (8 months ago)
In the end she went full evil. Everyone knows you never go full evil
Rapping Manual (8 months ago)
I love how extra the intro is
Tom McMorrow (9 months ago)
"Peer into a world where shadowy government stooges manipulate the levers of fiscal policy from deep within their evil lairs" Nightvale, is that you?
Calo Zheng (9 months ago)
as a person that likes math, the multiplier effect reminds me of the number e. (Euler's number)
Jinsong Li (10 months ago)
Can u do crash course math
Kat TheFanEnthusiast (10 months ago)
Lol the credits section...
Donner Tang (11 months ago)
I think that the stimili has a different effect when government just PRINTS money, not really from trade and production in the economy, so the economy always have artificial inflation
gypsyinthebolt (11 months ago)
You could have talked about Friedrich Hayek while mentioning Classical theory and how the US economy boomed by 1950 following his theory.
Aaron MCD (1 year ago)
thanks im a 10th grader
Enteal (1 year ago)
You talk too fast.
Yacine GACI (1 year ago)
Great video and great series! By the way, I really like those laughs!!! They were really funny
Eli Haymon (1 year ago)
Prequel dig outta left field really turned me off
Benjamin Capotosto (1 year ago)
Government involvement always works (economically only, not with things like free speech)
Benjamin Capotosto (1 year ago)
You can pay debt through higher taxes on the wealthy and making profit on government owned companies and money made from new workers buying things. Monetary involvement also helps through controlling interest rate and currency value.
Dimanjan Dahal (1 year ago)
US debt has crossed $20 Trillion
TheRealNoodles (1 year ago)
Why was fiscal policy bad? Milton friedman and his buddies didn't get a lot of things right... Even Monetarist views of exchange rates were discredited. And still, a lot of people believe him.
Ioan Jivan (1 year ago)
hilarious opening and ending
cyrilFigJam (1 year ago)
acdc helped me get an A in microeconomics. ty
Fredrik Dunge (1 year ago)
Instead of lowering and raising taxes lower and raise investments loans and repayment of loans.
DaroZuo (1 year ago)
And now the Euro zone is back on its feet while the United states are nose deep in debt and have an Orange bufoon for a president
bl00k man (1 year ago)
Oi the prequels were good
Prasanta Pan (1 year ago)
Economists are always wrong about Economy...lol
Adriaan Mangum (1 year ago)
I still think the Classical system, letting the economy run itself, is the better system. Private citizens will always try to manage their money in the best way, the government however doesn't care if it's productive or not; it's not theirs to lose. Plus it seems to me that when you give the power to indebt(A.K.A. enslave) to politicians, it doesn't go well. P.S. I think the parallel of Classical economics and a doctor bleeding patients is incorrect and derogatory. It would be more comparable to letting the patient's body heal itself, with no doctor involved.
Alexander Manz (1 year ago)
to all of you who say they talk too fast in their videos...watch it again and again and again and again until it finally seeps in through that thick molasses brain of yours
Khal Drogo (1 year ago)
I like better the fast talking, slow talking makes me bored and m mind wonders!
Dante's Disco Inferno (1 year ago)
"Maybe it's about that thing you didn't have in sixth grade: *confidence* ." Gurl, please. It's been years since then, and I STILL don't have that!
alaskaoalaska (1 year ago)
Phantom Menace was by far one of the best Star Wars movies ever!
12345 678910 (1 year ago)
Katlego Mashishi (1 year ago)
These guys were lying about the first part of the video. There are people who are the private sector of the economy,who own huge portions of bank stocks. And these banks own portions of the federal reserve bank. Yeah,you may say that the "Fed" is owned by the GOP but its owned by central bankers. These control the rate at which money is printed, which unconstitutional, its actually the GOP'S "TREASURY'S" job. I wish people would know the truth that these organization's exist and that they are owned by powerful families. THE FIRST PART WAS ABSOLUTELY TRUE,BEFORE SHE SWITCHED ON THE BULLSHIT. I SEE YOU LADY.
Emre Akay (1 year ago)
No, you didn't look evil Adrienne :)
Tristan Griffin (1 year ago)
Is that a Karl Marx bust in the background...?
Kiu Tami (4 months ago)
I was searching the comments just for someone who also saw this...
poopiehead (1 year ago)
adriene hill is hilarious.
Samantha Steele (1 year ago)
I don't need like half of this. I am going to sound so smart tomorrow.
realife777 (1 year ago)
Where would I be able to find the real numbers for fiscal policy in 2017?
AMIT KUMAR (1 year ago)
potato psoas (1 year ago)
But then with all of these ups and downs of unemployment, you've got people who are trying to find a job but can't. Do you let them become homeless? NO, that's where welfare is important - it's how you balance out the free market when things are out of control. Personally, I believe everyone, even if they aren't actively seeking work, deserves a basic standard of living through welfare payments. And then you've got to consider the fact that in the future robots will take most of our jobs. And then you have the problem where if 50% of our jobs will be taken and 50% will be on welfare, then why does anyone have to work at all? We can't fill all the jobs with robots (just yet) but we also don't want people to think it's unfair if some have to work and others don't.
Márton K. (1 year ago)
Lol Marx's portrair on the table
Will Haygood (1 year ago)
the phantom menace was a good movie... smh
Sohaib Gulzar (1 year ago)
Let’s move toward no taxes at all
TheLifeOfLu (1 year ago)
The purging of bringing jobs out of the recession was a little extreme for my taste.
Taufiq Adel (1 year ago)
Who here is hyped for dragonball super?
Rick Sanchez (1 year ago)
unless they instated a socialist drug state that uses this policies to starve the country's people under the protection of CHINA, Russia and some of the worst dictators in the Arabs countries... So yes maybe is a tool that can correct a country's economy but in the hands of conspirators and foreign interests like the Cuban regime that takes of resources for free, is just Evil lair mother...ers causing death and famine...
Dylan Wedel (1 year ago)
10:52 I was a cocky motherfucker in 6th grade. As a junior in HS now, not so much
Mansi Gaur (1 year ago)
your video is good, but this big words and english is my second language . slow down plz
Kristopher Driver (1 year ago)
Added to favorites lol well done
Ridzzaida Ridzuan (1 year ago)
i dont know learning economics can be so interesting.
Ankur Agrawal (1 year ago)
Around 1:40 what does she mean by "You get your Empire Strikes back and your phantom menace back" . Please anybody help me get this
Ben Chelnitsky (1 year ago)
Star Wars: Episode V - The Empire Strikes Back (1980 ) 8.8/10 on IMDb (the boom I'm guessing) Star Wars: Episode I – The Phantom Menace (1999) 6.5/10 on IMDb (the bust)
Nicholas Petrick (1 year ago)
so mindblowing!
unknown (1 year ago)
NICE video, love the conspiracy joke XD
Jackson Burch (1 year ago)
no hoover and fdr enacted social programs that prolonged the great depression
SyraphimGaming (1 year ago)
Great review. Really helped me before my exam thanks :)
Nir Harel (1 year ago)
Like for the Soup Nazi reference
Saad Ansari (1 year ago)
I guess this vid was made of largest budget...
W W (1 year ago)
The opening is So scary , I nearly close it ....
Amanda Dara Amadea (1 year ago)
I love you all, thanks for saving me.
Jack Aaron (1 year ago)
It's a bit unfair to compare Austerity to Stimulus on their merits if the purpose of one was to reduce debt, while the purpose of the other was to boost the economy even if that increases debt. Of course Stimulus is going to have a greater positive effect on GDP and Employment. The problem is, it's also going to massively increase Debt, which it has.
Alex H (1 year ago)
why... why is a bust of karl marx in ur background..?
Kiu Tami (4 months ago)
Because at Crash Course they support the ideas of Marx...
Zyon Cetshwayo (1 year ago)
I'm not understanding how government borrowing increases interest rates for the citizen sector or private sector with their lenders?¿?¿
Joshua Young (1 year ago)
Classical theories still prove true. It's a fallacy saying that the government used classical theories in the early Great Depression years. Hoover and FDR used complete price controls and wage controls which made things 10x worse
200Prozent (1 year ago)
Keynes: Y'all mind if I BREAK SOME WINDOWS???
Makdaddy bigmac (1 year ago)
Daniel AJ (1 year ago)
THIS HELPED ME FOR MY GLOBAL ECONOMICS! Keep up doing the good deeds :) Liked & subscribed
for some reason i thought i clicked on the wrong video
Hakai (1 year ago)
You shouldn't really compare the Eurozone to the USA's economy. The Eurozone is incredibly diverse and consists of multiple economies in various states. Whilst Germany might do fairly well, Greece and Spain are failing miserably with massive youth unemployment and debt.
Phan Thi Quynh Anh (1 year ago)
I'm waiting for Crash Course Music and Crash Course Arts!
imaaduldiin algailani (1 year ago)
thank you

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