A huge thank you to Acorns for making this video possible. Go check them out, it helps the channel and hopefully makes saving and investing that little bit easier! Sign-up for Acorns now and they'll deposit $5 into your investment account to help you get started with investing! 👉 www.acorns.com/ee?s2=SND1

@simulping4371

3 жыл бұрын

no

@georgewood6897

3 жыл бұрын

acorns in australia called raiz? looks the same

@0xjrr

3 жыл бұрын

I tried looking at it but it was a bit confusing for someone in Europe. By the way, another great video.

@jemesmemes9026

3 жыл бұрын

what music did you use?

@1337w0n

3 жыл бұрын

I disagree with the assertion that a $0 minimum wage would lead to 0% unemployment, and as far as I can tell, you don't actually defend that position. Also, you're ignoring the fact that if there's no minimum wage, then when new workers enter the workforce, they can be paid lower than the previous generation, and then be conditioned to accept the wages they receive as acceptable and normal. And this isn't speculation; this is what's happening in the United States at this very moment, because minimum wage has remained stagnant for decades.

$0 dollar wage workers come in two forms: grad students and interns.

@garethbaus5471

3 жыл бұрын

I actually made $20 an hour as an inturn.

@AdonisGaming93

3 жыл бұрын

But then if there was a UBI to at least stop you from starving...that $0 internship is fine if it means I can go pursue something I love and not starve. But too bad modern politics will never allow this.

@garethbaus5471

3 жыл бұрын

@stockart whiteman depends a lot on what your major is, $20 an hour is about average for an engineering inturn.

@StuartFerguson55

3 жыл бұрын

@@garethbaus5471 but how much would an English inturn get paid?

@thomasdtrain

3 жыл бұрын

@@StuartFerguson55 I have no idea what English majors would even intern as. Do English majors just go into education to teach English or something?

We talked today in my Econ class about how economist using “perfectly competitive” is the equivalent of a physics teacher using “in a vacuum”. Sure it’s true but it’s not what you find on Earth.

@firstwavenegativity6379

3 жыл бұрын

Theory is filled with these. Angles and lines also don't actually exist.

@Zenheizer

3 жыл бұрын

Great analogy

@jimr3286

3 жыл бұрын

It's a disgrace to compare a natural science with a social one.

@honestabe6926

3 жыл бұрын

Haven't taken physics, but I definitely agree with the "perfectly competitive" part!

@_daudnasir

3 жыл бұрын

Cetirus Peribus

Iceland doesn't have a minimum wage because everyone has the right to join a union and 90% of people are in a union wich set their own minimum wage for each field of work

@firstwavenegativity6379

3 жыл бұрын

@Viktor Kolbeinn Sigurðarson That's the point of the video, in the absence of artificial rigidities, market forces (such as unions) still shape and regulate wages.

@viktorsigurdarson

3 жыл бұрын

@@firstwavenegativity6379 well it's the law that everyone has a right to a union

@jessicaneafie590

3 жыл бұрын

@@ShiningTitan The United States. There are entires markets where unions are prevented from existing and regulation that has given them no power to actually collectively bargain.

@rohitkurup6191

3 жыл бұрын

@@ShiningTitan no where in the US. Federal law (and in many cases State law) prohibits companies from stopping their employees from joining unions..On the other end of the spectrum "Right to work" proponents think that somehow it means unions can't be formed in those states. In fact it's the not the case at all.. here is an excerpt of what this actually means..They claim this helps attract businesses but there is no evidence to actually back that claim up. 24 of the states already have these laws but a majority of these states have blue collared workers in manufacturing jobs and they also have unions..eg. Michigan, Ohio etc.. "Right to work" laws address situations related to memberships in labor unions -- In short, you never need to join a union or pay union dues to be hired or to work for a company. Commonly, these laws involve employers refusing to hire non-union workers or requiring that workers join a union as a condition of employment. This behavior is illegal because people have the "right to work" without being part of a union under state and federal laws.

@rohitkurup6191

3 жыл бұрын

@@ShiningTitan maybe read my second paragraph which literally says the same thing you are saying..

"When was the last time you checked the price of a nice restaurant before you sat down?" Every. Single. Time. I guess I'm not normal for wanting to make sure the price seems reasonable for the food and location before I'm obligated to pay it. I don't just waltz into some new location without trying to find information on it first.

@Olivia-W

3 жыл бұрын

... Yep. I don't have the funds to just willy nilly waltz into a restaurant and pay whatever the going rate is. Going to a restaurant is a _planned_ event for me.

@Anonymous-ld7je

3 жыл бұрын

Me too buddy.

@At0micMeltd0wn

3 жыл бұрын

I just don't go, ez

@mikemiller7377

3 жыл бұрын

This is just to let you know that you are in violation of the laws of economics. Please adapt your behaviours to better conform to the standard model. Thank you for your cooperation.

@briandbeaudin9166

3 жыл бұрын

But how can you possibly know if a restaurant is worth it until you've eaten the food? If you are basing your decision to eat at a place solely on price that is an irrational decision. There may be other factors inside the restaurant such as the ambience which may influence your desire to pay more. If price will influence your decision, then perhaps you would be better off just to eat at McDonald's...

EE: "If a company was to charge $5000 for their new phone, nobody would buy it." Apple: "Am I a joke to you?"

@ericnipas49

3 жыл бұрын

They actually sell a phone without a charger and their fanboys still find a way to justify it... "it's better for the environment"... lol

@osl5686

3 жыл бұрын

The Ipad is like a Big iPhone so yeah. Apple played their hand right

@rexmann1984

3 жыл бұрын

Yes you are Apple.

@economicsinaction

3 жыл бұрын

**Tim Cook liked this comment**

@manueloctaviomartinez3173

3 жыл бұрын

@@ericnipas49 money doesn’t flow to non productive companies. Cry all u want but if they’re rich it’s because of something

“Ask yourself when was the last time you checked the price of a nice restaurant before you sat down” As someone who always checks, I feel attacked 😥

@MicahLoRusso

3 жыл бұрын

Check most of the time also

@TheManinBlack9054

3 жыл бұрын

Lol, me too

@fireballxl5768

3 жыл бұрын

Always check the price of a service or product.

@imho7250

3 жыл бұрын

My checking of prices is probably why I rarely sat down in an expensive restaurant. Lol

@ReasonableRadio

3 жыл бұрын

tbf this is very normal in a lot of countries, especially in Europe. In Canada where we're influenced by a lot of different cultures, it's a coinflip whether a restaurant has its menu posted outside, and depends on the cuisine and genre of that restaurant.

My wife introduced me to the awesome concept of walking out of a restaurant after having been seated because either the prices seem too high and no item on the menu is really appealing. Now it feels like a real life superpower. I mean... I didn't know I could do this!

@kirstyjjamieson

3 жыл бұрын

Yay - we do the same.

@justinblechinger6723

3 жыл бұрын

As someone who worked in the food industry for a decade. Please don’t do this. Ask for a menu or search up one on the internet. It sucks when you’ve been sat and the table leaves. I lose that table and the money.

@danielye3600

3 жыл бұрын

@Elias Håkansson If I do this and I have the cash, I’ll usually leave the server a dollar or two. They did do some work and it’s not within their power to change prices or the menu.

@66maybe66

2 жыл бұрын

@@justinblechinger6723 As someone else who has worked in the food industry for almost a decade, I 100% disagree. People are not obligated to pay just for sitting down. Unless your restaurant is completely packed and has no spare tables, there's no real difference between them checking out the menu for a couple minutes or them not showing up at all aside from a very minor inconvenience.

@aceous99

2 жыл бұрын

@@justinblechinger6723 u sound desperate man.. have you heard of onlyfans?

you cannot mention Scandinavia's lack of a state-mandated minimum wage without mentioning the role of unions in the labour market. because that is the only reason that no minimum wage works in the first place

@jbyrne8977

2 жыл бұрын

Yeah, this channel feels pretty biased. Either this guy doesn't understand economies, or is being disingenuous about the market... Bit sad to see

@crow2989

Жыл бұрын

@@jbyrne8977 this guys whole career is understanding the economy

@TheRandCrews

Жыл бұрын

@@crow2989 yeah but it’s still flawed and incorrect

@adamcraft9118

Жыл бұрын

@@TheRandCrews you’re assuming economics is a hard science. It’s definitely not.

@flyingspinners1

10 ай бұрын

They also understand that they have to pay a certain minimum otherwise nobody would buy their products/services due to lack of money

"$0 minimum wage" You mean "internships"?

@EconomicsExplained

3 жыл бұрын

haha well however you want to market it

@grahamturner2640

3 жыл бұрын

🤣

@saasda6255

3 жыл бұрын

@@EconomicsExplained you know the job market is bad when free labour is hard to get

@j.fo.v5260

3 жыл бұрын

Slavery

@dickiewongtk

3 жыл бұрын

@@j.fo.v5260 Slave can't quit their jobs. Even if there is no minimum wage, you can quit yours and find a better one.

It's worth noting that the countries mentioned at 17:20 have very powerful unions, so even if there is no standard minimum wage, you'll still be earning a pretty decent amount no matter what job you do.

@EconomicsExplained

3 жыл бұрын

definately worth mentioning. THey have alternative protections in place outside of regulation. Unions, Strong welfare, UBI's, all help make this possible.

@alexcereuceta5907

3 жыл бұрын

@@EconomicsExplained echoing a bit what op mentions, the idea of a $0 minimum wage in a “free market capitalism” system such as the American, is unsustainable without the social safety-netting of said Nordic countries. The video is great, and I knew that the examples were coming, but our “laissez-faire capitalism” enthusiast (read libertarians), will absolutely and unapologetically abuse your video to push against minimum wage increases, choosing to ignore the social systems put in place by the government itself to regulate the virtual $0 minimum wage Scandinavian work market. An extra 45 seconds or so to explain their remarkably robust safety net systems would’ve made your video simply perfect.

@caorusso4926

3 жыл бұрын

Just look at india, they have 0$ wages and still happy. The nordic system is inefficient and overrated

@czechmeoutbabe1997

3 жыл бұрын

@@caorusso4926 yeah uh huh www.indiatoday.in/business/story/indian-economic-slowdown-challenges-unemployment-coronavirus-inflation-demand-1713197-2020-08-20

@indeed1023

3 жыл бұрын

@@caorusso4926 India has a huge amount of poverty and the wealth disparity there is insane....

While the minimum wage isn't technically set by the government in Iceland, I need you to know that there is, in fact, a minimum wage in Iceland. And it is set in agreement between the many unions here, with deliberation with the government and other governing bodies. I'm not sure how Sweden and Norway do it, but in Iceland there is absolutely a hard minimum wage.

@angeleyes2c

2 жыл бұрын

It's the same thing. The umbrella organizations for the employers and the employees negotiate all wages. Which doesn't apply to guest workers from outside nations like thailand, which is why they're popularly imported as cheap labour for simple things.

@yvindvego9404

2 жыл бұрын

in Norway there is a minimum wage in some professions like transport, carpentry, plumbing, electrician, etc. basically its in professions that have a higher amount of foreign labour. who would pay a norwegian carpenter 250 kr when you could pay a polish person 150 kr and with less benefits.

@johnny_eth

2 жыл бұрын

Sweden and Norway also do it by collective bargaining.

@mrfreckles666

2 жыл бұрын

I think the point remains that it’s not a flat out minimum wage across the board because wages are incredibly nuanced between professions so a blanket wage for all of them is a bit silly

Yes, Denmark has no minimum wage, but in turn we have extremely good union laws. Unions set standards (paid time off, vacation days, minimum wages etc.) across entire industries, and these are negotiated every 2-4 years. Unions even negotiate these same standards with the government. So in practice the minimum wage is on average $17.5, but differs from industry to industry.

@GiRR007

2 жыл бұрын

Nothing is stopping unions from doing the same in the US

@ottobenthaus3349

2 жыл бұрын

@@GiRR007 ha lol, unions and usa, good luck trying to get smth done with unions in the usa, there are many reasons why euorpe has usually way stronger unions but the most important is job securtity whoch doesnt exist in the usa and many other reasons

@altvibr

2 жыл бұрын

"It differs from industry to industry" I think thats what he was getting at, not a flat out universal minimum wage.

@realmadridsi

2 жыл бұрын

@@ottobenthaus3349 And what is the big difference between Europe and the US why it's possible over here and not in the US? We have big companies too that hate spending money and would pay you 1 euro an hour if they could.

@ottobenthaus3349

2 жыл бұрын

@@realmadridsi if they could, but they can't due to historic circumstances unions in Central Europe for example hold a strong position of power. The European unions weren't used for Money generation like The American unions by The mob, and The companies didn't have so insane monopolies on The economy, The unions stayed Strong in Europe due to lacking sources for erodation

Do the Economy of Argentina, the only developed country to go back to developing.

@rtfj5341

3 жыл бұрын

Yes please. I watch your Venezuelan video and there were a LOT of wrong things. I'm Venezuelan. But if you do a good argentinian video I will like it

@pnp072000

3 жыл бұрын

Isn't Brazil going back to developing too?

@economicsinaction

3 жыл бұрын

... so far

@tiaandeswardt7741

3 жыл бұрын

@@pnp072000 Not sure if Brazil was ever developed to start with...

@joaopedroraffo7964

3 жыл бұрын

you mean before Peron? Argentina was the 6th most powerful economy after WW2 if im not mistaken even europeans were jealous of their lifestyle

Case for 0$ minimum wage Jeff Bezos: You have my attention

@EconomicsExplained

3 жыл бұрын

oh boi don't give him any ideas

@bubblewrapmonster8801

3 жыл бұрын

Lol you started it😂 love your content, I’m studying hard on my economics degree at uni!

@michal5642

3 жыл бұрын

@@EconomicsExplained BOI

@livethefuture2492

3 жыл бұрын

how bout some automation for good measure, don't need to pay the machines... effectively 0$ wage, just initial price, and cost of electricity.

@AlecMuller

3 жыл бұрын

Once you have a lead in automation (which Amazon does), it's a lot easier to crush your competitors with a $15/hr minimum wage than a $0/hr one. With good enough automation, a $25 or even $40/hr minimum wage will still give Amazon fat profits along with an edge over competitors.

"When was the last time you checked the price of a restaurant before you sat down?" Pretty much always. Do restaurants not have menus visible outside the door where you live? I love the idea that restaurants are hostage situations where once you're in you can't leave without at least buying the cheapest main on the menu.

@jeremyanderson3819

3 жыл бұрын

Uh, mcdonalds is NOT a restaraunt.

@joshuacollins385

3 жыл бұрын

@@jeremyanderson3819 I agree, and McDonald's is pretty much the only place locally I can think of that obscures their prices. Do restaurants there really not have their menus stuck to the inside of the window or inside a waterproof box on the outside?

@nurainiarsad7395

3 жыл бұрын

agreed. here even posh restaurants have a menu left outside so you can see what they’re offering before ever walking in. sometimes i don’t even consider a restaurant that doesn’t have their menu *outside*. coz... there are other options who remove that little bit of doubt for me, they’re... ten steps away?

@mwbgaming28

3 жыл бұрын

@@joshuacollins385 the only place you can see prices at McDonald's in Australia (at least in Adelaide anyway) is on the self service screen, or in the drive-thru The screens above the counter no longer show the menu, now they just show ads and other pointless garbage It's actually impossible at my local maccas to place an order via human to human interaction unless you're in the drive-thru (literally there's no eftpos terminal or anything on the counter, it's either use the screen, or use the drive-thru)

@aravind787

2 жыл бұрын

I don't know any person who doesn't care about prices in a restaurant. In a lot European Restaurants the entire menu is placed outside so people can decide if they can afford it.

You’re right, it’s been over a year since I checked the prices of a restaurant before I sat down. . . It’s also been a year since I sat down in a restaurant

7:00 I swear to god, every time on this channel when the question is asked, "When was the last time you...?" my answer is always "this week"

@Olivia-W

3 жыл бұрын

True. Though I generally don't go to restaurants, because eating out is usually more expensive. When I do eat out, it's most likely a promotion at Mcdonald's and I know exactly how much I'll be paying before I ever step foot inside.

@TheKyrix82

2 жыл бұрын

I'm starting to think this channel may be a little out of touch...

You have really good clickbait in a way that i rarely see anyone else have. Title: "Supply and demand is overrated" Text on image: "Case for 0$ minimum wage" My thought is "How those you could possibly be linked?". My mind spins along, but i know that the only way i can find out is if i click, so i do. Really good.

@redhidinghood9337

3 жыл бұрын

And he actually answers it

@EconomicsExplained

3 жыл бұрын

haha nicest comment calling me a click baiter ever

@emperorza5777

3 жыл бұрын

@@EconomicsExplained The second comment is the most important lol

@haughtywillow2499

3 жыл бұрын

Minimum wage is just a price floor for the labor market. That’s it. Draw a horizontal line at your minimum wage price on a supply and demand graph and there you go you got a surplus of labor (unemployment).

@Mythhammer

3 жыл бұрын

@@EconomicsExplained If it works, use it. ^^

I've been featured on Economics Explained. Does that mean I've finally made it?

@admiral_waffles533

3 жыл бұрын

It just means you invited him to your CIA blacklist. But yes, it does in a way

@Seth9809

3 жыл бұрын

Oh wow.

@TSDamiano

3 жыл бұрын

Hi jake

@EPICoutcast24

3 жыл бұрын

Eyyyyy Sponge bob mi boy. Just came from you vid on lobbying. Yeah I think you made it bruh

@cydre3401

3 жыл бұрын

The KZread crossover I never thought I needed

15:31 totally disagree. I think you underappreciate the human's capacity for apathy. If they are going to be paid 20 cents an hour, there are inevitably going to be a percentage of humans that will deliberately remain unemployed until they are paid what they feel they are worth. Thus unemployment will never be zero.

@colto2312

3 жыл бұрын

make more picking up pop cans on the side of the road

@arieroskam4000

3 жыл бұрын

He means 0% unemployment in the sense that it would be now be theoretically possible due to the removal of inhibiting laws, not that literally every man, woman and child would be working at McDonalds.

@Jose-gc8rl

3 жыл бұрын

Why would I or anyone on a developed nation ever sell the scarse time of our lives for a meagre 0.20 cents an hour, it'd be like working 50 hours for a Netflix subscription, basically a long week's worth of work, it is simply ridiculous.

@louip11913

3 жыл бұрын

This. I’m at the point in life where there is zero chance I’d work for less then 20$ an hr. That is just the minimum my time is worth

@aravind787

2 жыл бұрын

Exactly! This video is misleading on many accounts.

"If all the economists were laid end to end, they would not reach a conclusion." --George Bernard Shaw

@tiaandeswardt7741

3 жыл бұрын

You can pretty much say the same for any form of profession. The lack of a consensus on something also isn't automatically bad. I don't really know what the point of the quote is

@christopherellis2663

3 жыл бұрын

@@tiaandeswardt7741 G B Shaw was a public figure and playwright, and was expected to exude witty aphorisms.

@tiaandeswardt7741

3 жыл бұрын

@@christopherellis2663 Even those that are nonsensical after thinking about it for a moment?

@jstpsgthru

3 жыл бұрын

@@tiaandeswardt7741 Please explain? Isn't it just an observation about the complexity of economics; that it is as much an art as a science? It is an idiom that helps us normal people understand the world.

@ninety1nethagawd

3 жыл бұрын

youre going over heads here. they believe that economists have already concluded things and that its up to us to fill in the gaps they leave.

Scandinavian countries don't have state regulated minimum wage but they have "effective" minimum wage, set by workers unions in different sectors. These unions are very strong and backed by the law and government for example in Sweden. So Scandinavians technically don't have minimum wage but basically they do. In Switzerland it's pretty similar, in industry minimum wage is mostly regulated in Collective labour agreements. Some cantons even introduced minimum wages, and they are highest in the world.

@olska9498

3 жыл бұрын

Exactly! These minimum wages due to collective bargaining of strong trade unions are even much higher than their federal mandated counterparts. I really don't understand why these minimum wages would be any less "sticky" than federal laws. After all, fast food workers in Denmark earn a minimum wage of 20$/hour, set by the trade unions.

@MrMajani

3 жыл бұрын

Which is fair. The right to organize. Unions have their pros and cons, but as long as they are joined voluntarily by their members, it's OK.

@quintessenceSL

3 жыл бұрын

This is assuming negotiation for wages only travels one way- i.e. what an employer offers vs. what an employee demands. No one is forcing business to buy labor at that price, and like everyone else in the world who can't afford a thing, they can do without (or seek alternatives). That is diametrically different than a price floor for labor.

@hanysslunzok1626

3 жыл бұрын

Labour "supply"is effectively "monopolized" by workers unions in Scandinavian countries, so it is basically the same as minimum wage

@eror151

3 жыл бұрын

@@MrMajani in many workplaces in Norway you automatically join a union through the job you're working at.

EE: Without a minimum wage, there would be no unemployment. Victorian era England: I beg to differ.

@angeleyes2c

2 жыл бұрын

Yeah that's complete bs that never worked.

@littleman6950

2 жыл бұрын

People aren't going to waste any hours of their day making money for someone else if they themselves will still end up homeless and starving anyway.

@Stszelec01

2 жыл бұрын

The supply and demand needed only couple generations and threat of socialism to back of a little great system

@andretsang7337

2 жыл бұрын

@@littleman6950 they literally do that right now anyways. Plenty of people work poverty wages and are living out of their car.

@speedroidterrortop3171

2 жыл бұрын

@@littleman6950 Well then the supply of workers would go down and businesses who need workers will be forced to up their wages… duh 😂 Maybe you should’ve thought about the video for more than 2 seconds before commenting 🙄

all, well, unless you realize how monopolised and cartelized most sectors have become. Also the countries that you name - Sweden, Denmark etc. -also have very good social security. Also in countries like Sweden, you can't fire an employee without adequate notice - which can be upto 6 months.

@ALittleMessi

2 жыл бұрын

How common is a prolonged notice like that? That has to be a strain on some companies, even if you have smart planning

@RajbirBhattacharjee

2 жыл бұрын

@@ALittleMessi it's a legal requirement and is a function of the number of years of service. Nordic countries have very strong labor laws. Yet they do very well in terms of innovation and profits.

@ALittleMessi

2 жыл бұрын

@@RajbirBhattacharjee That's not really what I was asking though. The less flexible a company is the worse off it can be in drastic changes(i.e. last year). If you have to fire an employee 6 months ahead of time, that essentially gives no flexibility. I'd like to see what impact that has on companies

@10010110100102Error

2 жыл бұрын

@@ALittleMessi impact is not that great, it's the same in germany. there's various options, the most common being short time work. employees are sent home to remain on standby when the company needs more people again. they get less money for that time, but remain employed, which is good for their health insurance as well as their retirement. the flexibility you talk about is a myth the americans want just so they can keep the employees on edge as well as the companies not responsible for their workers. there is still the option to fire people when the company has a very bad time, but the advanced notice still remains, so it's generally those that got hired most recently that are fired first. companies also tend to have a good amount of money in the back, as they know about these requirements, so they can easily pay for that time. the worker will of course still work during the time until the employment is terminated, so he will still make money for the company to pay his wage. not doing so would be cause for termination with extreme causes, similar to the employee attacking people, willingly and on purpouse damaging expensive equipment, violating their employment contract, or stealing, so they can get fired imediately. the great benefit is, that the employees have a lot of time to search for a new workplace that thaey then can start in almost imediately after their former employment has ended, which puts much less strain on the social security net. it's far less spiradic who's employed and who requires help for a time. so, overall, it's actually much more beneficial for the employer as well as the employee and wevn the government, it keeps more money in circulation as the worker doesn't suddenly have zero income, and it offers nearly as much "flexibility" as the american system without the downsides to all parties.

* looks at some of his coworkers * No, some people have a negative hourly wage, i.e. they cost the company more money than they bring, even when their wage is 0. That is one of the reasons why charities don't take on unlimited volunteers.

@ArtumTsumia

3 жыл бұрын

This is certainly true; more employees does not necessitate more productivity. At the very least, it increases managerial overhead and particularly poor employees can cause problems for more experienced workers in the form of training or time lost to fix mistakes. That's of course assuming that such things can be tracked to some extent, in which case a manager can send them home early or such (I've commonly done this, and these employees don't usually mind even if they are paid hourly). That's not even taking into consideration some of the more complex work environments I've been in where even "productive" workers can cost the company huge amounts of money by creating bottlenecks and such for other employees which would not be remedied simply by that worker earning no wage.

@EternalKernel

3 жыл бұрын

Love those "I'm better than all of my coworkers, and likely everyone everywhere in any similar position" They always fail upward.

@Elbrasch

3 жыл бұрын

​@@EternalKernel Part of it was overemphasizing stereotypes to refute the videos point that free labor is always desirable. Something that has nothing to do with being better or malice is inexperience. Often, for example in Software engineering, it can take up to 6 month till a new employee is producing more value than they have cost up till then, including time spent vetting all the candidates and teaching the new one the difference between engineering and craftmanship.

@Elbrasch

3 жыл бұрын

Also, I was part of a team that fucked up the architecture of a software product. We burnt a lot of money over a year and it took another team half a year to unfuck it all. Main reason we identified afterwards? Almost all of us were in stretch roles, i.e. it was the first time we had this kind of position. We definitely produced negative value there.

@richardboesen7423

3 жыл бұрын

@@Elbrasch YOU didn't produce negative value, the people ABOVE YOU who set the conditions INCREASED THE COST without factoring that into the Price received for the product supplied. You're much too young to remember ( at the Top of your reflection ) but it's "The Peter Principle" writ Large and ALWAYS Denied by "those at the Top" 😒

The whole situation with minimum wage in Switzerland is very different from how it was referred to in this video. First of all, minimum wages here are not introduced on a federal level, rather some cantons have them (like Jura, Neuchatel with 20 CHF/h and Geneve with 24 CHF/h - roughly a 26.5 USD/h - the highest minimum wage in the world). And although there are no federal requirement for a minimum wage directly, there are other regulations for a minimum payment to a full-time employee, such as that employee wouldn't be under a poverty line (which would be around 40000 CHF/y in ZH making an effective minimum wage for a full-time employee in the region of 18 CHF/h).

@BMXaster

3 жыл бұрын

Very true and also Geneva is hella expensive. Probably more than Zurich. And 18usd/hour in zurich is actually a pretty hard fight already. You will look at that 1 week italy holiday per year 3 times if you really can afford it

@Kenionatus

3 жыл бұрын

There are also federal minimum wages in certain sectors which are notorious for bad wages, such as cleaning services.

Really well done. There is one point at the beginning I think you may have looked at incorrectly though. You mentioned how in perfectly competitive markets beet farmers would continue to undercut each other until they did not make a profit. However, farmers would cut prices until they make 0 economic profit not accounting profit - meaning including the opportunity cost of doing something else plus their monetary profits. Therefore, farmers will still be making $ profits. Of course markets are never completely perfect but I think the idea of economic profit vs. accounting profit is super relevant and often overlooked. Super minor thing and love the videos!

"When was the last time you checked the prices at a restaurant before you say down?" .. every time...

I would honestly not go into any restaurant if I don't have at least an idea of what their prices are beforehand.

Wait, wait, wait. You're just going to drop all those European countries as examples of limited minimum wages without going into the the other protections and systems those countries have to keep it from being too exploitative? At least tell me you're going to make a follow video on that.

@pijuskri

3 жыл бұрын

Especially when those "no minimum wage" countries literally have min wages just set by unions

@dereknalley

3 жыл бұрын

Yeah, I felt that was pretty disingenuous as well. Clearly someone as well informed as this channel would know WHY they can have zero minimum wage. Hint: They have incredibly strong anti-corporate powers in the country.

@olska9498

3 жыл бұрын

Right?! These nations might not have federal mandated minimum wage laws, but minimum wages due to collective bargaining of strong trade unions. How would these minimum wages (which are even much higher than their federal mandated counterparts in the USA) result in any less of "sticky prices" than federal mandated minimum wages?

@TheBard1999

3 жыл бұрын

If you watch rest of his videos, you will see that he never goes deep into his arguments. Only talking about most basic things, without even bringing any numbers to support it.

@blackgold2589

3 жыл бұрын

@@TheBard1999 I mean it’s supposed to be for uniformed people going in-depth isn’t something this channel is for

Working Poor: “Allow us to introduce ourselves”

@iwersonsch5131

3 жыл бұрын

Maybe people only hate taxes because the taxes aren't good enough to abolish the working poor with UBI?

@iwersonsch5131

3 жыл бұрын

​@Matt Olivier You will have to explain to me why you think that taxes are theft. It's probably not worth your time, though, as all it will do is motivate me to sit down and explain to you why they are not.

@tongpoo8985

3 жыл бұрын

@@iwersonsch5131 every penny of your taxes that gets spent on dumb bullshit or bloated bureaucracies is theft. The proportion of that depends on where you live

@iwersonsch5131

3 жыл бұрын

@@tongpoo8985 That's something I'm a little less opposed to than making sure everyone can afford food, shelter, and medical treatment, and that your city's lighting, roads, teachers, and democrazy are funded. Still, I would like to hear your definition of "theft" and why it applies here.

@tongpoo8985

3 жыл бұрын

@@iwersonsch5131 taxes are meant to fund the public good. Any amount of your taxes that do not go toward creating societal value is theft. The definition of theft in this case is money that you're compelled to pay by law and doesn't get put towards any of the sort of things you mentioned or a portion is swallowed by excessive bureaucracy or inefficiency.

I consider a company scummy when it pays minimum wage. Its like openly saying I would pay my employees less if I wasn’t forced to pay them this amount.

@atomsmasher9411

3 жыл бұрын

Or would own slaves if it were allowed. Actually, I suspect that slaves would incur more cost than minimum wage workers do.

@scifirealism5943

Жыл бұрын

Yep.

In nordic countries minimal wage isn't set by law, but it still exists in contract with labor unions.

@skepticcat2443

3 жыл бұрын

yes, here in Denmark we do not have a minimum wage law but we have very strong labor unions that negotiates the wages for each sector.

@oentoleas

3 жыл бұрын

@@skepticcat2443 Yeah, you basically have the only true pro-market way (combating the natural, unbreakable oligopsony of the employers with an artificial oligopoly of the unions), which sets a much fairer and market-cleared price(=wage). The fact that any neoliberal or capitalist would be against this crucial, market-induced balancing of the job market (against the unions) is proof of the level of self-contradicting, rich-leaking morons they are.

@tonycatman

3 жыл бұрын

Not everyone belongs to a union. For as long as there are people who are not in an union, those who are worth less than the MW can get a job. In effect, if the MW doesn't apply to everyone, it doesn't apply at all.

@robconstant797

3 жыл бұрын

I'm not sure hpw it works in Sweden, but in the Netherlands we have what are called Collective Labour Agreements which bars any employer who has signed it or is part of an industry association which has signed it from hiring anyone at a price which is lower than the specified wage. I suspect it might work the same in those countries.

@crose1466

3 жыл бұрын

Which I, as a right wing federalist, would prefer far more than a national minimum wage.

Oddly enough, your hypothetical example is exactly what my company did at the start of the pandemic. And rather than seeing it as you suggest - as a signal to flee the company - it was universally seen as a good faith effort to preserve jobs in the face of serious economic turmoil. It probably helped that the owners and managers took a bigger pay cut percentage wise at the same time, we're in a well off industry (IT consulting) so there was room for the pay cut to not be TOO painful, and it was explicitly temporary until conditions improved.

@WorthlessWinner

3 жыл бұрын

EconomicsExplained needs to take his own advice and think about human psychology,. not just what models would predict :Y

@EPICoutcast24

3 жыл бұрын

Shoulda commented below you, but yeah it depends what the leaders value more, community, or the individual pursuit of profit. Short term gains of greed are eclipsed by long term profits through relationships

@sorsocksfake

3 жыл бұрын

@@EPICoutcast24 It's a false contradiction, as illustrated by the (in my opinion disgusting, but accurate) term "human resources". Or "human capital". Relationships, reputation and so forth are very real assets and most business is well aware of their value. This is part of their profit calculation. In the long run such companies ought to self-destruct through unethical practices, removing the problem from the long-term calculation. Unfortunately workers and consumers likewise often act out of greed (if defined as short-sighted profit), which is how companies like Amazon can continue to profit.

@99Cafer99

3 жыл бұрын

​@@sorsocksfake I believe that Amazon will fail in the long run, at least in Germany. When the poorer neighbour countries will be better of, were currently all longtime Amazon delivery employees come from, their whole employment system will collapse. As no German would work and is actually working at the conditions Amazon currently offers for their drivers. They would have to increase wages so much, that the traditional stores will be way cheaper again. Because working in an store is currently paid better, with better working conditions, as you e.g. don't have to be in bad weather conditions or lift heavy stuff without machinery, and you have clearly defined working hours. So Amazon would need to pay an significantly higher salary to an delivery driver than an cashier earns at Aldi to have enough employees. Even now, were non-German speaking people with no comporable working opportunity in their homeland are working there, they are always hiring and never get all positions filled. Combine that with the higher personell usage of delivering a few items to your home to sitting at an register and just scanning items and their Online-retail business will collapse. Lucky for Amazon that they make most of their profits elsewhere.

Sticky prices is why Hershey Bars are always getting smaller. Instead of raising the price, Hershey shrinks the Bar. And then one day, Hershey decides that they have shrunk it too much and come out with the original sized bar at a new higher price. Usually with a slightly lower unit price to convince the buyers that they are getting a good deal. Then Hershey starts it all over again.

Aside from the Nordic countries, Singapore also has no minimum wage (except specific jobs like cleaners and security guards). Their reasoning is almost word-for-word what you've said. However, Singapore also has a government that has an employment credit scheme, where workers making below a certain wage get additional money from the government (like low-income benefits, except you need to be employed to get it). They also have an extensive state-supported pension program, one of the largest Sovereign Wealth Funds, and some of the highest home ownership rates in the world, so the system can work.

I have actually walked out of resturants after getting seated. It has been resturants with outrageous prices and i just get annoyed at how they tried to use this cultural shame to their advantage.

@davidml1023

3 жыл бұрын

I'm seeing more restaurants leave the price off drinks. That's on a whole next level of douche baggary.

@grizzlednerd4521

3 жыл бұрын

It's also becoming easier to check the menu and pricing online before you book. Just today my work Friday lunch changed proposed venue because of online menu/pricing.

@heatherswanson1664

3 жыл бұрын

Usually after they already serve me water, I don't feel bad for wasting their time because they wasted mine

@jaymzx0

3 жыл бұрын

If I'm worried that a restaurant is out of my price range, I usually ask for a menu at the front desk under the guise that I'm not sure if I'm in the mood for whatever they're serving.

@fernandouseodysee5027

3 жыл бұрын

I have leaved restaurants too for the same price. People needs to understand that they are the ones that are paying for being treated well. If the restaurant tries to shame me then I will never consider them again and that's it. Still I have never been tried to be shamed by any restaurant.

Zero dollar wages and Beets... I feel like this video will summon a Dwight.

@samryder6129

3 жыл бұрын

Ahahha

@simulping4371

3 жыл бұрын

kzread.info/dash/bejne/f65nr8uYf72_ntI.html

@sudhanvakashyap297

3 жыл бұрын

@@simulping4371 @furrypolice

@ben927

3 жыл бұрын

@economicsexplained You mention that the nordic countries do not have government set minimum wages. What you did not mention is that these countries have very strong national unions who negotiate for an unofficial minimum wage

@Vid_Master

3 жыл бұрын

When will you do a video on Goose Grease cost inflation???

A video about trade unions and whether or not they’re good for economies would be killer!

"When was the last time you checked the price of a nice restaurant before you sat down?" Between all the six-figure hypothetical salaries you talk about and comments like this, I really regret not going into the financial sector.

@rblyle382

2 жыл бұрын

For real. Teacher salary here so yeah I check prices every flipping time.

Nobody: ... Economics explained: B E E T S

@EconomicsExplained

3 жыл бұрын

Bears... Battlestar Galactica

@tedarcher9120

3 жыл бұрын

@@EconomicsExplained are widgets manufactured from beets?

@Jupiter__001_

3 жыл бұрын

@@tedarcher9120 I believe they are a biproduct

@iasonkostellenos8341

3 жыл бұрын

@@EconomicsExplained how much did acorn pay for all that stock footage of beets?

@MJ-uk6lu

3 жыл бұрын

Lithuanians: beet soup

17:20, You forget one massive factor in this, unions, one thing all these countries also have is very strong unions, combined with laws and regulations preventing the busting of them. You can't destroy labor protection without replacing it with labor power. All you do is create a market meltdown; as labor efficiency increases more people are fired because you can do the same with less, the labor supply increases and the price of labor drops, while more stuff can be produced but nobody can buy it, this leads to overproduction and eventually a market meltdown. Something like this played a big part in what lead to the great depression, Ancapistan would last a couple years at most. High labor power prevents this as an organized workforce can force wages to rise with productivity and make increased productivity = increased quality of life as it should.

@Robbedem

3 жыл бұрын

yeah, The reason those countries don't have a minimum wage is not because it helps their economy, it's because they don't need it in the first place. Also, they kinda do have a minimum wage since (almost?) nobody would be stupid enough to go work for less than they'ld get from unemployment benefit.

@klogechris

3 жыл бұрын

Yeah it is a combination of our strong unions and our high unemployment benefits, which makes this whole structure possible. In Denmark our system is often referrred to as “flexicurity” since it combines a very flexible labor market (easy to hire, easy to fire), which is god for the employer, with a lot of security for the unemployed, which is good for the employee

@lek1223

3 жыл бұрын

@@Robbedem The best case for taking such a job would be if there was obvious clear and likely room for promotion, Etc. start a army job as a private, good chance for a promotion to a corporal < sergeant < etc. (as a clear example) But yea, why would people take a job at a gas station at a super low wage, as there is no real opportunity to get promoted.

@darrin7684

3 жыл бұрын

@@klogechris So does Denmark have a zero wage economy?

@klogechris

3 жыл бұрын

@@darrin7684 Well officially there is no minimum wage, but, as I pointed out, this flexible system is only possible because of High unemployment benefits and strong unions, which gives the worker leverage when negotiating with the employer (the workers are not terrified of losing their job, since most of them pay a portion of their Income to something Called an “a-kasse”, which ensures That you get something like 80% of your previous sallary when you are unemploeyed). However this system Works both ways, since employers Can easily hire and fire people, so if the worker demands an outragous sallary they are easy to replace

even with a minimum wage inflation means it needs to be increased every few years because employers aren't willing to do so on their own...

The example of pricing in restaurants not mattering is clearly false, eating out is a repeated purchase for the majority of a restraints customers. When deciding where to go out a couple may well choose the more reasonably priced of the two options based on their past experience of the resultant a pricing

@asharak84

2 жыл бұрын

yeah it's an interesting case where the difference between repeat custom and one-off walk-ins comes into play, along with reviews and word of mouth and so on. Still an interesting talking point, though the conclusion was fairly flawed.

If I go to a restaurant and the prices surprise me, I probably won’t walk out - but I will definitely factor this in when deciding to return, or when recommending restaurants to people I know.

@wesleyowens4089

2 жыл бұрын

I walk out or just order appetizers

@lajya01

2 жыл бұрын

@@wesleyowens4089 I hope you walk out before eating...

@wesleyowens4089

2 жыл бұрын

@@lajya01 well obviously.

"Something like a UBI should come with a 0$ minimum wage" *baited conservatives have left the chat*

@Gotwired

3 жыл бұрын

*Alaska has entered the chat*

@appa609

3 жыл бұрын

Baited progressive depending on point of view.

@goldenblacklee

3 жыл бұрын

@@Gotwired if it wasn't for the mosquito and the high price of shipping i would move there.

@bonda_racing3579

3 жыл бұрын

Wait when are conservatives against ubi? ( my inner circle of friends are economically conservative and socially liberal) just saying.

@michaelsmith4904

3 жыл бұрын

@@goldenblacklee That *one* mosquito...

I love how shamelessly you have taken on so many topics that directly relate to the economic changes due to the pandemic knowing that the interest hinges on the current situation, but being aware that the content is fascinating in and of itself makes it feel like totally genuine, non-opportunistic content. Keep up the good work m8

Minimum wage is just meddling with the whole "voluntary" element of contracts and hits the workers whose job is worth less than a minimum wage

Funny story: I’m currently pursuing a Master’s Degree in Applied Economics and just the other day in my Applied Microeconomic Theory class, one of the quotes in the PowerPoint was “all interesting questions in Economics boil down to transaction costs.” This one concept is basically the reason why firms even exist at all, and yet for something seemingly so central to the subject matter, it rarely gets much attention in the academic literature. I’m actually thinking of doing my Master’s Thesis on something related to this. Great video BTW!

@strateeg32

3 жыл бұрын

How can you even think this video is great? He did not even understand the principle of a perfect market. He confused accounting and economic profit. This is basic economics. For a master student you should have been able to see through this...

@bachpham6862

3 жыл бұрын

Applied Microeconomic Theory sounds ironic. Almost every theory in Economics assume no transaction costs and perfect access to information, when applied economics is never that.

@tiaandeswardt7741

3 жыл бұрын

@@bachpham6862 Every basic theory assumes that. So much work is done in relaxing those assumptions, through introducing frictions into the theory

@tiaandeswardt7741

3 жыл бұрын

Ronald Coase gang

@stofan

3 жыл бұрын

.

Hey, I just wanted to point out a bit of a fallacy in the $0 minimum wage theory. Assuming the current US system (or any system with less 'welfare' than the current US system), a $0 minimum wage would not lead to 0 unemployment, and 0 unemployment would be bad anyway. There are a few reasons for this: 1) static costs to hire an employee Much like your point on sticky prices, with complete deregulation of labor pricing, an employer would still face static costs to hire an employee. Many estimates abound, but it generally would still be many thousands of dollars, even for the simplest of roles. 2) UBI's interaction with wages As you mentioned, UBI would mean that employees would only work for wages that made sense, since they could always fall back on UBI. Employees will then not take some jobs, leading to price stickiness, leading to some unemployment. 3) Quality of life drop You mentioned that welfare was not a solution due to it causing a quality of life drop, but perfectly elastic prices would also lead to a quality of life drop as wages fall, so they wind up being different forms of the same thing. 4) People are not rational actors Many will not accept these jobs due to pride/lifestyle choices. Many people define their self worth by how they work. That means falling wages would lead to falling self worth, and many would rather maintain their self worth while being unemployed than take employment at reduced wages. This is just one example of people not being rational actors, but it is a powerful one in my opinion. As for 0 unemployment being bad, there are several factors. It causes inflation and increases the static cost of hiring an employee as companies need to work harder to bring someone over. This isn't so bad for skilled labor, but for unskilled labor it would increase the cost of hiring someone to beyond the productive worth, causing unemployment as companies aren't willing to sink the static costs, even for a $0 wage employee, and you're back with some unemployment.

@desbowman9497

3 жыл бұрын

As to point 4 Mises would say this kind of decision has psychic profits bringing people back into rational actors (although lowering the value of the term)

@buffcommie942

3 жыл бұрын

@@desbowman9497 Mises doesnt have any evidence or real world examples to prove that and is just preforming mental gymnastics go justify letting poor people die

@desbowman9497

3 жыл бұрын

@@buffcommie942 you don’t need an example to argue from first principles. People value the same things differently and only a subjective theory of value can hold true given this. Economics can be applied to the monk who values no material object because he must still economise his time to that which gives him the most psychic profit, meditating vs good deeds ect.

@iwersonsch5131

3 жыл бұрын

For 2), the thing about UBI is that it is universal. Employment does not replace UBI, it adds onto it. Yes, this does mean you probably need like a flat 50% tax rate to afford it without causing rapid inflation, but it also means that working for a dollar an hour would still be a profit for you. This flows into 1). If there is no need for a job to pay more than UBI, you can easily make microjobs where employees do very little for a very low wage. The less a job distracts from what somebody wants to do in their free time, the lower their cost for not just doing that instead will be, possibly less than $10 per day for some people. 3) The main issue with welfare, as mentioned, is that it's inefficient for the economy and expensive to the state. The fact that it doesn't solve the problems for employers nor employees anyway is just to point out that it doesn't improve over the base situation. And for 0 unemployment: What you described is exactly how the economy would healthily hover around 0.01% unemployment, due to people being fired or quitting when the wage gets too high or low.

@christianlibertarian5488

3 жыл бұрын

A comment on your point 1). I would argue that before the pandemic, the US effectively had zero unemployment, and effectively a zero dollar minimum wage. The reported unemployment rate was 3.9%. This has been reported as the lowest that can be achieved, as people are always quitting jobs, or moving or some other issue having nothing to do with wages or demand for labor. Likewise, at $7.25/hr, the static costs of hiring are higher than the actual W2 costs. Effectively, cost of labor set by government was lower than the cost set by other factors. Based on this, I feel this is a partial confirmation of the assertion that zero minimum wage produces zero unemployment.

incredible!!! and hardwork, Anmol Singh does alot more to make sure such level of profit is generated... its just pure natural intuition

Love your videos! However here there is an important aspect that wasn’t discussed: I don’t anyone would be able to sell much if everyone was desperately saving to survive in a market with extreme wage volatility! I would be saving like crazy, presumably like everyone else. Recessions guaranteed for all.

The last time I was this early, tulips was still in demand

@Homer-OJ-Simpson

3 жыл бұрын

Last time I was this early, tulips hadn’t peaked yet

Scandinavian countries effectively do have a minimum wage thanks to massive unions and they definitely don't have 0% unemployment because their lack of minimum wage seeing as people don't like to volunteer for slave labor. Minimum wage is absolutely needed until something like UBI or generous welfare systems ensures that people don't need to work to live, seeing as if people need to work to live and there is no minimum wage then you have the beets example in reverse; people undercutting each other until everyone starves because some money is better than no money. Zero minimum wage only works without the welfare option if there is 100% employment and no immigration which would force companies to actually compete for workers but that's unlikely to ever happen either.

@ddannydaniel3340

3 жыл бұрын

they don't have a minimum wage. Workers or unions negotiate wages which is massively better than the government mandating an arbitrary minimum wage.

Hey, love your videos. I would like to suggest you make a video on the Irish economy, it’s surprisingly interesting.

The main reason they don't need a minimum wage in the Nordic countries is strong union membership. Over 2/3 of workers are in unions in most of these countries, giving them enormous bargaining power to set their wages with employers without needed the govt to enforce minimum wages. Union membership in the US is extremely low in contrast (and it's harder to form a union) so workers have much less power bargaining.

The economics of monopolies would be good😏

@EconomicsExplained

3 жыл бұрын

Oh yeah thats one that we will probably cover soon.

@saasda6255

3 жыл бұрын

@@EconomicsExplained amazon??

@fullyverified7491

3 жыл бұрын

@@EconomicsExplainedIntel over the last decade would be a good example of that. Also their downfall in recent times.

@jsheav

3 жыл бұрын

@@saasda6255 amazon is not really a monopoly, but it is growing to be a monopsony. EE taught me that :)

@SuperSlayer76

3 жыл бұрын

“When I was a child I thought quicksand would be more of a problem.” Monopolies are a lot like quicksand. On the other hand monopolies are easier to achieve with governments propping up big businesses and protecting intellectual property rights.

"A $0 minimum wage would mean a 0% unemployment rate" I dunno about that. When someone hasn't got a working background (whether in the job market or their upbringing), sometimes a $0 wage can still wind up being quite expensive for the company as it costs lots in other people's time to train them, and in worse cases, do the work required to correct their mistakes. And in the case of a small minority of some very unfortunate people, there is absolutely nothing they are capable of doing to be productive.

@nicolaspinto2927

3 жыл бұрын

Training should not be viewed as a cost, but an investment. This is the same mentality that has led to the overproliferation of certificates and other credentials and the awful gating of otherwise entry level positions. Trying to reduce training costs by offloading them onto the laborer is ethically suspect at minimum, and has a strong forward negative affect on future labor. If you want to know why even janitorial jobs now often require certifications, it's because at some point someone decided that all entry level pencil pushers needed a two year degree to ensure they knew how to use Excel and email so they wouldn't have to be trained up. The death of OJT has been catastrophic for laborers up and down the ladder.

@fetchstixRHD

3 жыл бұрын

@@nicolaspinto2927: Definitely agree with your point in general (and despise the rise in "certificate qualifications"), though I think the issue that OP is pointing out is with "free interns": they're a cost to the company while being trained, but by the time they're qualified to a level where they're beneficial, they'll probably leave at that point (after all, their aim is to get experience to earn money!) so really they end up being a net cost overall.

I was waiting for the caveats. Yes there are conditions where a minimum wage of $0 doesn’t make everything monumentally worse. Those require either a robust support system for citizens and/or mandated collective bargaining that provide an industry (or regional) specific minimum wage.

@anteeko

2 жыл бұрын

Singapore and sweden have no minimum wage.. Singapore is not what you would call a union country yet wage are very high

@alexgallagher9759

2 жыл бұрын

@@anteeko singapore has a very high level of income inequality. The top wages are high.

EE: Why the market is not really influenced by supply and demand. Also EE: proceeds to explain why the market *IS* governed by supply and demand.

Saying Sweden has 0 minimal wage is kinda missleading. Evryone need to have a contract thats OK with the trade union that is relevant. Sure a trade union coud OK a 0 wage but that never happend. It´s abit like all diffrent trades have diffrent minimal wage that keeps on changing depending on economy etc.

@lazergurka-smerlin6561

3 жыл бұрын

I mean the thumbnail is misleading wholly because "0$ minimum wage" makes you think this guy just wants go back to the gilded age. But really he's proposing that people should have UBI + whatever amount a business is willing to offer for your work, which is significantly less crazy.

@jamesclark209

3 жыл бұрын

Those countries also have strong social safety nets and so periods of unemployment aren't as big of a deal. This makes the effective minimum wage for those countries quite high as no one would be so desperate as to work for a few dollars per hour.

@ddannydaniel3340

3 жыл бұрын

there is nothing misleading there. As far as the government doesn't mandate a minimum wage. Workers or unions can negotiate wages.

Germany didn't have a minimum wage until 2015. Why wasn't their unemployment rate 0%?

@18Jaws1989

3 жыл бұрын

Because some people simply just don't want to work, can't work or nobody wants to hire those people. Also, the welfare state pays you your apartment and gives you money so you can buy food, water and pay other expenses. So to put it simply the mindset of some of those people is: I rather stay at home and get social welfare than to go 40 hours a week to work for the same outcome. You are even allowed to have a side job up until 400 € a month next to your social welfare.

@eror151

3 жыл бұрын

workers rights besides minimum wage. and who would even take a job that's not profitable enough to sustain your living costs?

@danpolyukhovich5291

3 жыл бұрын

I really hope this is a bait and not a genuine question

@carlosMartinez-fy4pz

3 жыл бұрын

0% unemployment is impossible. I guess he meant that unemployment would be the lower besides the NAIRU (natural rate of unemployment). There would not be "artificial" unemployment.

@leftaroundabout

3 жыл бұрын

Perhaps more to the point: why is unemployment in Germany lower after it introduced MW than in ever the 20 years when it didn't have this?

In the U.S. we effectively don't have a national minimum wage anymore because the number is so insanely low that nobody actually pays that little.

@atomsmasher9411

3 жыл бұрын

Plenty of business still pay minimum wage.

@XFizzlepop-Berrytwist

3 жыл бұрын

A lot of states are that low, and businesses do pay that low, or very close to it. Missouri is fairly recent in paying over 8$ an hour. Illinois I believe still has 7.25, and that is what the businesses there pay. A business really will only pay as little as they can Which does suck, because there is always someone willing to work for 3$ an hour. You think I’m joking, but I’m not.

This video makes a lot of assumptions that do not apply to the American labor market. 59% of Americans are hourly, without a set salary. Most states in the US have at will employment, where there is no contract. Businesses can fire anyone at any time, and for many, there is no social safety net. Beyond that, the zero dollar minimum wage assumes infinite supply. Real world economics shows that this is not true: when the benefits of work are low, people leave the workforce rather than work for less that their time is worth. People pushed to the brink of poverty by such a program (which is regularly advocated by the Republican Party in the US without any UBI or welfare support), will turn on those who make the change. Politicians will be voted out, and any employer willing to mistreat their workers in this way will be targeted. The French Revolution was the direct result of the rich trying to squeeze the poor through a Let Them Eat Cake mentality. The Russian Revolution, and Communism, came from the same. This kind of dangerous theory, if adopted, will lead to a violent backlash.

@CosmicValkyrie

3 жыл бұрын

Just wanted to say that there are a lot of markets other than america so some of your critiques don't really stick. I don't think everyone thinks the us is the default country on the internet anymore right?

@Hrafnskald

3 жыл бұрын

@@CosmicValkyrie The second half of my critique is global: workers will not turn out for jobs that do not pay, and any attempt to eliminate meaningful salaries without replacing the income will lead to a backlash by workers and voters, who outnumber employers.

@CosmicValkyrie

3 жыл бұрын

@@Hrafnskald oh, i don't disagree with that bit. That's just inertia. People don't like big changes even if they will mostly benefit from it.

@Hrafnskald

3 жыл бұрын

@@CosmicValkyrie Workers being paid low wages is not a benefit.

@CosmicValkyrie

3 жыл бұрын

@@Hrafnskald well i had other situations in mind when i meant beneficial changes to economy. But depending on the economic conditions, wage cuts might be beneficial although it cant be too much.

The beet analogy doesn't work because the beet seller also values their time effort and risk and no farm would reduce their price below this!!!

@gravityhypernova

3 жыл бұрын

If there was a corporate farm which has profits in other regions that can make up for it, they can afford to undercut all of the independents: so much that it makes the rest of the ones without such deep pockets get forced out of the beet game.

@64standardtrickyness

3 жыл бұрын

@@gravityhypernova Yes but that is besides the point. Actually it's precisely BECAUSE of inefficiencies entering an industry because otherwise there wouldn't be any point in taking a loss to drive a competitor out as once you tried to profit other companies would come in to challenge you.

@SumBrennus

3 жыл бұрын

The last time I valued my time and effort I lost my job, home, health, and sanity.

@64standardtrickyness

3 жыл бұрын

@@SumBrennus Clearly when I said value I meant just above $0. A Mcdonalds employee "values" their time and effort at minimum wage. Each beet farmer in this analogy values their time at value whatever else they can do with their time. So those who have the best alternatives to beet farming leave the system until the system balances out. *of course real world has unseen...

@SumBrennus

3 жыл бұрын

@@64standardtrickyness Alas, that was the last time I valued my labor at $0. I tried to pay off a bill by trying to get them to hire me to work for them to pay it off...

4:44 This is incorrect. In the theoretical case of a beet market adhering to the perfect market conditions that are laid out, the price would not drop to the "at cost price", it would drop to: "at cost + opportunity cost price", and since everyone has different opportunity costs, the last beet supplier standing is one who has the least opportunity cost, or in other words, one who is most specialized in producing beets. Furthermore, if we assume that everyone has the same opportunity costs, these opportunity costs are not zero, so the suppliers will continue to make profits selling their beets. So the beet production will in fact go on under these conditions.

@lukeskyrunner95

2 жыл бұрын

This EE guy has all sorts of misconceptions of free market principles. I’ve stopped watching his videos because they made me too frustrated. He’s a sophist.

"When was the last time you checked the price of a restaurant before you sat down?" I looked in the window at the furniture. Then i knew whatever price they had for their food was too high!

About the perfect beats market. There's no supernormal profits, but there are normal profits. Normal profits are all that's required for the market to persist. If there's too many farmers in the market, supply is too high and investors are earning under normal profits; investors redirect their capital to areas with >= normal profits, causing supply to fall and profits to rise towards normal.

@bhad7787

3 жыл бұрын

Yes this is the only thing i found fault in with the video. He said the profits would drop to zero, farmers would sell until they are out of stock, then the market would fail. That is not correct. Assuming rational market participants the farmers wouldnt drop their prices to zero profit levels, but instead would drop it to a level where it is still slightly worth it for their labor and inputs.

@TlalocTemporal

2 жыл бұрын

@@bhad7787 -- Or a few stalls that are confident in their superior stock sell at a decent loss, drive the other sellers out of the market, and then charge whatever they want.

@bhad7787

2 жыл бұрын

@@TlalocTemporal This would either trigger legislation to break them up, open the door to sellers coming back in the market with normal prices, or would not be cost efficient for the sellers with superior stock unless they created some form of technology or system in which they were making the product more efficiently. Without some form of advantage they created they would not have the competitive edge to make that move

@pontoancora

2 жыл бұрын

@@bhad7787 if you bring legislation, isnt a perfect market anymore

Last time i was this early I didn't live in a centrally controlled economy

@fatpotatoe6039

3 жыл бұрын

@Rappa Kalja You

@colto2312

3 жыл бұрын

this

I've checked the price of every meal I've ever had since I was old enough to read.

Always interesting, thank you.

We could also try out Milton Friedmans idea of a "negative income tax"!

@quintessenceSL

3 жыл бұрын

Probably the best schema I've read for dipping a toe into the UBI pool was massively expanding the EIC. Doesn't get you the lessened overhead of UBI though.

@SangoProductions213

3 жыл бұрын

@@quintessenceSL It was already tried in the US though, to less than stellar results.

@SangoProductions213

3 жыл бұрын

@MrFishbone111 lol. Yeah. 50 Cent coming out and saying he didn't want to be 20Cent was pretty funny.

@quintessenceSL

3 жыл бұрын

@@SangoProductions213 "These EITC dollars had a significant impact on the lives and communities of the nation's lowest-paid working people largely repaying any payroll taxes they may have paid. The EITC is one of the most effective social welfare programs in the United States.[11] The Census Bureau, using an alternative calculation of poverty, found that EITC lifted 5.4 million above the poverty line in 2010."

@TheDhammaHub

3 жыл бұрын

@Brian Abisdid The same way you pay for any welfare system with the difference that people have the opportunity to acquire skills since they have to work

2:53 I knew it! I always knew EE was a kangaroo!

Is anyone else shocked by the statement that if perfect information in the "beet market" would bring prices so low that no beets would be produced? Prices would stabilize with razor thin profits so only the most efficient beet producers would survive. Maybe less beets would be produced, or maybe the efficient beet producers would take-over the competition farms, but efficient markets dont make products dissappear! Im reconsidering many things I thought I had learned in this channel after such statement honestly.

Yes, if people didn't have to work to live well, they would be able to genuinely bargain for their wages, and be able to take a job without being coerced.

@GiRR007

2 жыл бұрын

No they would still bargain even if they have to work to live. No reason to accept a job that wont let you work to live. So no reason to have a minimum wage for that.

@robintheviking8990

2 жыл бұрын

@@GiRR007 If that's what you think, then you've never been desperate. This isn't a hypothetical, individual workers don't have the power to effectively bargain with potential employers, and employers will pay the least they think they can for any position. What ends up happening is people are forced to take any job, no matter how terrible or low paying, and they often have to find more than one and work 60-80 hour weeks. And that still doesn't give them enough money to do more than subsist. No opportunity to save or do better. The consequences of this are playing out right now with a broken economy that's falling apart, and businesses going understaffed because they are refusing to provide better pay and benefits, and the people they rely on to take their shitty jobs just aren't.

@GiRR007

2 жыл бұрын

@@robintheviking8990 ok but... If they are that desperate wouldn't it be better for them to be able to get any job at all instead of being completely jobless? And if that's the case abolishing the minimum wage would help people get jobs ALOT eaiser.

@robintheviking8990

2 жыл бұрын

@@GiRR007 No, it literally isn't. We know what happens when there's no minimum wage, and it's horrific. Condemning people to poverty is what the current system does, and removing the requirement to pay people a certain amount super charges that making things worse. The only solutions that have ever actually pulled people out of that cycle of desperation is forcing businesses to pay people fairly, or entirely abolishing capitalism. So we either strengthen the minimum wage and unions in order to improve the economy for everyone, or we force people into increasingly desperate poverty until they have no other option than to rebel. This is not new, this has happened multiple times both in the US and all over the world. Business interests are inherently opposed to the interests of labor. So long as the profit motive remains the driving force of an economy, that will not change, and businesses always have more power than workers.

@GiRR007

2 жыл бұрын

@@robintheviking8990 What the current system does to try and prevent poverty has proven to be disasterous . Social programs hurt the impoverished ALOT more than they help because they incentivizes people to become dependent on the government instead of trying to increase their standing in society, ensuring they stay in poverty. What happens when there is no minimum wage is people flourish as they have more access to jobs. The whole idea of a minimum wage in America originated from racist sentiment about how black people were taking jobs from white people. At that time blacks had a higher employment rate than whites and were doing well because of it. But then to combat this the minimum wage was implemented which drove black people out of jobs since why would store owners employ a black person when the could just employ a white person for the same price. Compare that to now with a MUCH larger part of the black community being impoverished AND ALSO dependent on social programs. So if anything it's been proven that having no minimum wage works far better than trying to implement social programs into a capitalist country. A business is suppose to have more power than a single worker as it employs more than a single worker. And obviously if a business is paying to low no one will accept the job so that will just naturally force them to raise their wages, basic supply and demand. This will also help increase industry in the US as more businesses are able to be created. So again no, forcing business to have a bare minimum wage has done nothing but hurt the impoverished in the US since it only forces employers to lay more people off since they no longer can pay their current employees. Not just pay people more and give away free money. Businesses aren't made of money.

This is much more entertaining if you replace the word “farmer” with “rapper”.

@MysterCannabis

3 жыл бұрын

Haha most of them do make beats for absolutely no money

Investing make up the top notch hemisphere of the wealth. That's the more reason one should save and invest to secure profit and ensure success

@philipjames9034

3 жыл бұрын

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@biaheza3677

3 жыл бұрын

True💯

@biaheza3677

3 жыл бұрын

For me Investments like stock and forex has become very profitable and very good options in securing a better financial life that's where I belong and survive from

@kellymelissa8909

3 жыл бұрын

You don’t need someone to tell you how to invest your coins, you can also make researches or try doing it yourself

@johnnymilky585

3 жыл бұрын

Hey someone talked about researching and trading without professional guide.. huh I laugh you, because you will remain where you are or even make huge losses that will stop you from trading, this has been one of the biggest problem to new traders

Interesting thoughts. Keep them coming!

Hi @Economics Explained, I wish Acorns was available outside the US like eToro. Thanks! :)

That argument against perfect markets has so many holes -_-

@adamsfusion

3 жыл бұрын

I'm not an economist, care to explain a bit more?

@blimpgaming8534

3 жыл бұрын

Ye please elaborate am interested

@carlosMartinez-fy4pz

3 жыл бұрын

@@blimpgaming8534 @avfusion His example is about 100 farmers that are competing for customers, so they will be willing to lower prices in order to get more customers. So, the cost of being a farmer would not be profitable in the long run; making everyone poorer The problem with that example, is believing farmers just compete in prices. But he himself says later that you may be incline to go to X farmer instead of Y farmer, in order to get more nutritious beans, even when they could have higher prices. So, he is admitting that those farmers not only compete in prices, but in product, services, quality, etc... His example shows the limit of perfect markets competing under just one variable (which no market would be like), not perfect markets themselves.

@blimpgaming8534

3 жыл бұрын

@@carlosMartinez-fy4pz Thanks

@GhostEmblem

3 жыл бұрын

@@blimpgaming8534 Well even assuming that the products are exactly the same down to the nutrional value his example ignores ignores price equilibrium, supply doesnt keep reducing. If demand remains the same while the suppliers reduce there wont be enough supply to satisfy demand and people will start paying more for access. It ignores cost of production, people wont reduce the price below the production cost. It also treats supply as infinite, each supplier can only produce so much else the basic economic problem would be solved and the example would be worthless for economic demonstration. It assumes that suppliers will undercut eachother instead of matching prices. There are many things wrong with it and I'm sure others could point out more.

Regarding the lack of minimum wage in Norway. That's a truth with modifications... It's still illegal to pay salaries significantly smaller then the ones negotiated for in a sector. So for instance people working in a hotel or restaurant might benefit from lower wages right now rather then losing their job and companies might be desperate for cheaper workers and they will indeed be cheaper then in other sectors like say programming jobs not as impacted by the virus. So the unions for hotel workers etc will agree to lower wages in return for other concessions, be they higher pensions or less work hours/time off/vacation or even controlling votes in the board of directors of the company. The company stays afloat. But lets say that a company finds someone cheaper available? Someone new trying to get hired to a hotel job might want to undercut the others available but there's a limit to how low the hotel can go without breaking the law. Not a fixed minimum wage set by the government or the same as in a totally different industry, but rather a fixed percentage of the negotiated wage in that particular industry. So hiring someone for 5% or even 10% less wage then those that's unionized may be possible. But if you find someone from another country moving in willing to take 25% less then you still have to pay significantly more then that because paying them that sum *would* be breaking the law. Essential we *do* have a minimum wage. It's just that companies and unions takes part in setting that minimum wages together with the government only enforcing it and helping out if there's a stale mate or if too much harm comes to society at large. (So nurses may go on strike but only if there's zero doubt that no lives are at risk)

"It'll lead to the point where people will undercut prices so much it'll lead to people no longer turning a profit." Simply not true. Competition is to naturally select down to the best consequences. If people aren't turning a profit then, through natural selection, they fail. Unless they're a nonprofit industry. This isn't a problem.

@TheCheeseman1983

2 жыл бұрын

There is no selection pressure, though. There is no advantage that any single actor could leverage over any other, making competition irrelevant.

What's really gross about this is that while you've thrown up your hands at the dilemma of a salary workers having fluctuating value, the solution you present is that the lowest earners should have even less.

@witoldschwenke9492

2 жыл бұрын

no, if you as a business already employ low earners and you lower their wages, as he explained, you'd just get less performance in return

@ZePopTart

2 жыл бұрын

@@witoldschwenke9492 a lower performance doesn’t really matter in a lot of food service and retail jobs. The lines at the normal grocery store in town are already long. It they lower the cashiers wages 15%, and their checkout time slows down 15%, I don’t know if I’d even notice as a customer. And even if I did, I’m not going to pay $80/wk more to go to Whole Foods, I’m not going to the cheaper grocery store with no produce and even longer lines, and I’m not going to drive 20 minutes to the next town over.

"Check the price of a nice restaurant before you sit down?" Literally always. Depending on the occasion when going out, my wife and I will set search filters on Yelp, including price bands, and then we'll preview the menu and see what the options are and prices. We're willing to pay for a given range, or say "we still want to try this" or what have you, but we know in advance what we're going for and are interested in. Guess we're weird.

@pegoe7784

Жыл бұрын

You aint going to a nice high-end restaurant, brokie, lets be honest.

There is no zero dollar zero unemployement. People just won't leave their home for 1 dollar an hour

@sinenominee1454

3 жыл бұрын

People would pay more than 1$ an hour in order to attract skilled workers. I think minimum wage is a good idea to make sure people can not be exploited but the more you pay the more efficient you become therefore reducing average costs.

@jwfcp

3 жыл бұрын

@@sinenominee1454 The incentive for efficiency is always there, the question is whether taxpayers or consumers should be burdened with this expense (hint one of them is called communism).

@tedarcher9120

3 жыл бұрын

@@sinenominee1454 I know, but the idea that 0$ minimum wage = 0 unemployement is false. People won't work for less than they spend to get to work

@sor3999

3 жыл бұрын

Just like how businesses go out of business when the product they're selling costs more than people are willing to pay. And if they sell at a loss then there is simply no supplier. With no minimum wage, it's the same thing except people die instead of corporations dying, and that's the kind of "my way or the highway" leverage crass capitalists love. We tried no minimum wage before. It was before we instituted minimum wage.

The problem with a lack of minimum wage is the habit of companies in America to resist competition as hard as possible. The idea that a business couldn't pay someone .50/day because another business will offer more is predicated in the idea that the two businesses arnt working together to keep wages down (which they do even if they arnt supposed to) and that there is another business to compete with in general. A LOT of industries in the US are effectively free of competition.

where do you get the stock footage for all videos? some kind of company that sells this? seems to fit very well with the content of the video many times and some are quite funny

That passive agressive surprised "Hmmm" at the end got me hahaha

Dwight Schrute watching this video : "write that down, WRITE THAT DOWN"

Zero dollar wage...'We won't exploit that' Said no company ever.

@firstwavenegativity6379

3 жыл бұрын

@Matthew Whitehead Who would work for zero dollars?

@sunnysunshine8897

3 жыл бұрын

@________ Yaaay everyone's rich!!

Big agree on the UBI thing. The only reason people like min wage is to provide min living standards. With UBI that is already covered and we can focus on market efficiency

Up next... The economics of stock footage!

After 18years I finally moved away from that small town that sells beets. Couldn't take it any more.

“Direct then to the location where they can stick there wages” that is certainly one way to say it 😂

Every time before even booking a table at a restaurant I check their menu and prices. I suspect I’m not alone or even that unusual.

17:22 Germany also didn't have a minimum wage until a few years ago and it literally didn't hurt anyone when it was introduced.

@witoldschwenke9492

2 жыл бұрын

that's utter bullshit!! incredible that you'd think that. It didn't "hurt" anyone, you've got to be kidding me. No all they did was either close their business and numerous people had to, or pretend they pay minimum wage without actually paying it and that's what the rest are doing. How do i know this? my dad works together with several people who own various businesses, a lot of them cut the official work hours and pay minimum wage but the employees just work for free for a few hours or they resort to completely cutting out the government.. ..

It's curious that we see an argument to lower wages when times are bad, where's the argument for wages to rise as times were good? If it's good to cut wages when cash flow is poor it's equally good to raise wages when cash flow is high. The argument here is just "how much can we cut wages so capital can always make their nut"

@stillbuyvhs

3 жыл бұрын

@Dan Ryan Because the company will go bankrupt, & then you won't have a job at all?

When you mention the Nordic countries, you can’t really compare their policies and actions to non-homogenous nations... Ah yes, Norway, a country with a collective culture of camaraderie where people have shared values and wealth disparity is on the lower end of the spectrum. Unless you change the culture of the people to one that has the best interest of all (because all is society), then these policies aren’t possible. The “Rugged Individualism” of the US makes working together difficult. It makes one want to maximize their own success regardless of what it do to others. So a minimum wage law is necessary to protect workers from bosses, who have been blinded by the idea that excessive wealth accumulation is something to strive for not something that is morally reprehensible. Until society operates under the notions of “when you succeed, I succeed,” minimum wage laws and other regulations are essential for protecting people from themselves... (bosses that get $ hungry)

@jordan-ho7gt

3 жыл бұрын

nah, the secret of Nordic countries is the lack of cultural / racial diversity. In the USA there is a culture salad that prevents a uniqueness of moral and consequently political values.

I study economics and I love this side of youtube thanks ee for those amazing videos