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5 years later and this is hitting harder

@OneMinuteEconomics

2 жыл бұрын

:(

Who is here after today’s GDP ??😅

@cosmiccoder7225

Ай бұрын

me ,,, 😁

This video will age well in the coming years as stagflation becomes inevitable

@OneMinuteEconomics

2 жыл бұрын

I will do my best to help folks understand events as they unfold through new videos as well, I try to always tackle important topics in a timely manner, even if things get hectic on my end schedule-wise :)

@ayodez9951

2 жыл бұрын

Happening rn

@szaky7399

2 жыл бұрын

@@OneMinuteEconomics How do you protect your wealth in stagflation?

@pannoni8449

2 жыл бұрын

@@szaky7399 The music won't age well either, just like the disco that accompanied that first go around.

@greyowlaudio

2 жыл бұрын

@@szaky7399 If stagflation causes increases in commodity prices, then the best way to protect your portfolio is to be in commodities. That's not always practical for investors though: imagine the average Joe owning stacks of gold, silver, nickel, cobalt, or barrels of oil, etc... Generally, it's more sophisticated investors who have the ability and means to do that sort of thing en masse. Another option is to buy something with limited circulation like Bitcoin (which its proponents claim acts like a counter to the USD; therefore, if faith in USD is broken, Bitcoin should theoretically rise). However, because the technology is still very new, there's no guarantee that it will increase in the same way as physical assets during a stagflationary period, since speculation has always been a large driver of Bitcoin. Basically, stagflation is a very hard environment to preserve your wealth in, which is why governments and economists fear it so much.

Stagflation is a rise in prices, compounded by a decline in economic activity across the economy due to the scarcity of a vital resource.

@redskinjim

4 жыл бұрын

thank you

@hongkongers9160

2 жыл бұрын

Today we have a new cause. Its called Infinite QE

@szaky7399

2 жыл бұрын

How do you protect your wealth in stagflation?

@tamaselmont8310

2 жыл бұрын

@@szaky7399 Whores, cocaine and alcohol.

@robertbelardo7087

2 жыл бұрын

Coupled with high unemployment

Who is here in 2021 while the economy is falling apart?

@OneMinuteEconomics

2 жыл бұрын

Heh, welcome to the community nonetheless :)

@vopvop803

2 жыл бұрын

I think it’s reaching there 👍

Super confusing. Stagflation NOT explained (alternatively stagflation unexplained) in one minute.

@OneMinuteEconomics

7 жыл бұрын

First of all, thanks for dropping by. If there's something you didn't understand or if there are aspects you'd like me to elaborate on, let me know by replying to this comment or shooting me an email at oneminuteeconomics@gmail.com

@zachariahkerner7896

7 жыл бұрын

0:40 needs a graph in its own right. The Milton Friedman part warrants its own explanation. The 1 minute idea is cute and I'm for it but certain phenomenon demand more. 3 minutes is well within today's ADD range while permitting much-needed expansion.

@OneMinuteEconomics

7 жыл бұрын

Appreciate the feedback. As of this or next Saturday, I'll be introducing a new format through which you guys can ask me questions and I'll answer them in a minute each. A video will therefore be 5-10 minutes long because it'll contain several questions + answers. I think it would be best to stick to the one minute format for my regular animations and for everything else (more specific questions), the new format should be a good compromise. At least I hope so :)

@bverji

5 жыл бұрын

@@OneMinuteEconomics You need to explain how inflation was fought with aggressive policies. You make the assumption that your audience will know this and that is a poor assumption. If they don't understand how the money supply was regulated and why that exasperated the factors that led to stagflation your video doesn't explain anything. You skipped over a significant part of the relevant information.

@hongkongers9160

2 жыл бұрын

When government prints a lot of money and the economy isnt moving. Its called stagflation. Yea?

I take issue at the very first sentence. A healthy economy should result in deflation. If your ability to produce rises, then the price drops. Stagflation is not strange at all. If you just printed money and gave everybody 100 000 euros today. That would do nothing to goods and services being produced, the jobs would remain the same, the economy would not grow, prices would just rise. = STAGFLATION.

@OneMinuteEconomics

5 жыл бұрын

It's worth noting that there's no "one size fits all" answer as to what people would do with the money you give them in your scenario. Poorer citizens are likely to allocate most of that toward consumption, whereas wealthier individuals are more likely to hoard or invest that amount. Going back to your issue, how would you define a healthy economy and why do you believe the result has to be deflation?

Milton Friedman's criticism was that the Fed was printing too much money, not that they didn't 'do enough'. If anything, they did too much

@OneMinuteEconomics

3 жыл бұрын

Not doing enough would mean not being dovish enough in today's landscape, but back then, not doing enough meant not being hawkish enough :)

@barryweiss9977

2 жыл бұрын

I think it was more of a stop go stop go of the Fed that he criticized

@haroldcruz8550

2 жыл бұрын

They didn't raise the interest rate high enough that's what Friedman meant. The same mistake that Jerome Powell is making right now.

With inflation at its highest level in four decades, recession is now "the most likely outcome for the economy". People wonder how to grow their portfolios to beat inflation and maintain a successful long-term strategy. I looked for investors who were making around $250,000 in this troubled market. This is one more reason why you should save and invest to secure your income and ensure your success

@martinsriggs2441

Жыл бұрын

If you don't mind sharing, I think the market deserves the reward, and I know it's real, but how can it be?

@fosterwhales1027

Жыл бұрын

connect with him on Instagram

@fosterwhales1027

Жыл бұрын

Larry Kent Nick Trading

@junepatterson1829

Жыл бұрын

Trading crypto with Mr Kent is a good chance to make money and start paying your bills. It's the best opinion to get out of debt

@kingsleywalker9794

Жыл бұрын

I found Mr. Kent last year, I was low on bitcoins in my wallet so I did the first trade and it was like a shock to me, the profits were great.

Thanks.. This was a very useful video.

@OneMinuteEconomics

2 жыл бұрын

Glad you found it useful Rob :)

prices are either all gonna have to be set or wages are and theres SO many factors that go into people trading. I dont think anybody can account for all the variables unless you make an entire college course about it with a 4 year degree. I dont think even those people understand it.

The main issue is our gross debt is orders of magnitude higher than it was in the 70s, so it can become very dangerous to claim correlations to that time period and apply heavily hawkish economic policies for long amounts of time while expecting the same result.

@OneMinuteEconomics

Жыл бұрын

Fair argument

It would be awesome if you could "recreate" this video with a heavy focus on how the pandemic/lockdown have effected things

@OneMinuteEconomics

2 жыл бұрын

Will do my best to launch a mini-series in early 2022 :)

@curtisrandolph1887

Жыл бұрын

@@OneMinuteEconomics Mini-series ready yet?

stagflation caused by a shortage of goods Must therefore be resolved by that shortage . Increasing or decreasing money supply cannot be solved alone.

@weirdo1060

3 жыл бұрын

Shortage of key goods. As the video mentioned, oil price increase was a contributing factor for 1970s stagflation due to it being necessary for motor vehicle fuel

One Minute Economics needs your help! Please give me a minute (heh) of your time by watching the following video if you find the channel useful, literally anyone can help (either financially or by spreading the word about my work): kzread.info/dash/bejne/m6NklsWkoZS-YbA.html

@hongkongers9160

2 жыл бұрын

Today we have a new cause of stagflation. Its called Infinite QE

I’ve heard this as well as other factors in the 70’s and 80’s was part of the reason why jobs went overseas in those decades.

@OneMinuteEconomics

Жыл бұрын

There's a lot more to it than that, and I'd also add that we're in a completely different context at this point and as such, comparisons to the 70s/80s aren't as relevant as most believe

Inflation is high now, but the economy isn't strong. Inflation is caused by money printing. When productivity is high, supply increases, bringing prices down.

@OneMinuteEconomics

7 жыл бұрын

I do agree the economy isn't exactly in amazing shape but today's inflation is not what I'd call high. The stagflation period of the US has proven that even in the world's #1 economic superpower, inflation can go a loooot higher :)

@aboucard93

7 жыл бұрын

Gee Willickers Inflation can be cause by a number of things. The use economy expects a rate of inflation at 2% each year. This is know as anticipated inflation

@shelleygreyrealtor

5 жыл бұрын

Stagflation

Hey, do price controls matter? Why do I remember seeing pictures in my highschool history books of gas stations with signs saying "no gas"?

@OneMinuteEconomics

7 жыл бұрын

Unfortunately, there are lots of situations in which countries are forced to implement price controls. The authorities will most likely decide to do it if a crucial commodity/product/etc. ends up under pressure. Perhaps due to there not being enough supply (the case with oil) or then again, maybe due to the exact opposite, a lack of demand (propping up the price of certain assets).

@th3b0yg

7 жыл бұрын

Well, I think I have to disagree with you. Conventional economic thinking on price controls today is that they introduce dislocations into the economy by preventing the price mechanism from clearing the market. This was the point of my comment - when you see lines and decreasing supply in the face of strong demand you can be reasonably sure that price controls are in the mix, and are actually a causal element. Nixon's price controls in the '70s finally convinced American economists on both sides of the Keynes/Friedman divide that price controls are just straight up bad.

Stagflation= Inflation+ Rise in Unemployment Rate + Rise in Lower Economic Growth

I was short on time, thanks!

@OneMinuteEconomics

2 жыл бұрын

Glad the video helped :)

This confuses the shit out of me. I was taught that when markup increases (price of oil goes up) on the ws-pc diagram unemployment goes up. because of Okun's law, if unemployment rate goes up output goes down. If output goes down, doesn't inflation reduce? In addition to this, phillips curve states unployment goes up then inflation goes down? So is stagflation just an exception to this? Where prices go up for oil causes inflation to go up?

@cooldudecs

2 жыл бұрын

Inflation is just high amounts of money chasing fewer goods aggressively ... If supply shortages add to it well that’s unfortunate

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I'm from 2024, brace for stagflation

@Liberalcali

23 күн бұрын

I know right!

This happens if you are addicted to oil too much...

@OneMinuteEconomics

8 ай бұрын

:(

Wouldn't a better explanation of stagflation involve the reason for inflation? That reason being that the government is printing money to finance deficit spending.

@midgetwars1

2 жыл бұрын

That would be normal inflation wouldn't it? Unemployment rate is low across the world.

Welcome to stagflation 2023

this video will have many more views soon. very inevitable to happen in the US sometime soon.

@OneMinuteEconomics

2 жыл бұрын

Yep, been noticing it over the past months

will we ever see 150k homes?

Why is economics so difficult

@OneMinuteEconomics

9 ай бұрын

Imagine doing it for a living :D

Thanks

@OneMinuteEconomics

3 жыл бұрын

You're more than welcome :)

Can you do a 2022 version of this?

@OneMinuteEconomics

2 жыл бұрын

It's been on my mind Clayton, I'll most likely publish a mini-series on inflation in the 2022 context :)

@pannoni8449

2 жыл бұрын

@@OneMinuteEconomics You didn't have 24-hour news coverage nor round-the-clock channels like CNBC. But we have other parallels between now and in the 1970s: *Substitute Iran with Russia (though Iran isn't doing many favors with the West) *Wages increasing with the overall inflation rate, but still lagging behind the increases. This wage-price spiral is happening again. *A currency revolution (the final silver coinage was produced in the late 1960s and quickly disappeared from circulation in the early '70s; today, crypto and other digital currency is quickly replacing cash) *Generational effects (instead of the large WWII generation retiring, you have the second half of the Baby Boomers retiring, with the smaller younger generations not picking up the slack as well as not choosing to employ as much. Also, the participation rate for women to work instead of staying at home is the highest since 1988) *Other political effects (anti-fossil fuels, requiring a need for technology to catch up to adapt to the changes like how more economical cars, mostly subcompacts and compacts allowed for a moderation in usage) Typically, the "stag" follows the "flation", with demand destruction forcing a drop in growth/revenue that doesn't cause any real relief in prices. *An inverse relationship between equities (stocks) and commodities, which drives safe-haven, intrinsic investment. Stagflation has few winners and a lot of losers to their portfolios, with the least dependent economies on the affected causes of the price increase as well as those that adapt/change the quickest the winners. Retirees are especially hit hard as their pensions/nest eggs rot quicker than normal, as well as the working and lower-middle classes who don't own any tangible assets. This is in contrast to a depression which harms the wealthy the most, since these are typically accompanied by deflation/very low or now inflation, although unemployment can be more serious in a depression than in stagflation.

When was the last time a growing economy with low unemployment lead to consumer price inflation?

@OneMinuteEconomics

3 жыл бұрын

Hi and thanks for commenting, how problematic of a CPI situation would we be talking about in your scenario?

@aluisious

3 жыл бұрын

@@OneMinuteEconomics I suppose anything over 10% would be widely considered bad.

@OneMinuteEconomics

3 жыл бұрын

Would recommend reading a bit about the 1997 crisis that affected a lot of Asian countries. I've dedicated a subchapter to it in my second book, The Age of Anomaly. If you'd like me to send the subchapter your way, let me know what your email address is and I'll gladly do it :)

1:20 "...should understand that economists ARE ALMOST ALWAYS WRONG."

@OneMinuteEconomics

7 жыл бұрын

:P

@sandeepvk

4 жыл бұрын

@@OneMinuteEconomics We all are too

@themaestro9527

4 жыл бұрын

Listen to Peter Schiff

Essentially is it the oil companies continuing to up the price is the cause?

@OneMinuteEconomics

2 жыл бұрын

Way more complicated than that unfortunately. For example, how powerful are oil companies in a context where there is reduced demand?

Why is stagflation not called inflastag?

Besides problems like stagflation, printing money leads to a decline in morality.

@OneMinuteEconomics

Жыл бұрын

It does lead to an incentive structure that is questionable at best, hard to argue against that :(

I want my 26 seconds back.

I ran revolution?

This video wasn't about what stagflation is.

@OneMinuteEconomics

3 жыл бұрын

If you have any questions, let me know and I'll do my best to answer. Or perhaps other community members can chime in :)

It's hard to believe, but I don't think it's wrong The situation is getting worse in the war between Russia and Ukraine, and if it continues to get worse, everything that's needed besides prices will go up that much the same now It's frustrating that no one knows that the biggest cause is it.

@OneMinuteEconomics

2 жыл бұрын

Indeed, Russia's invasion of Ukraine represents possibly the most important cause, but there are also a lot of other factors that are contributing to this, from pre-war supply chain issues to various policy mistakes and/or misunderstood risks over the years :(

@MrGreen-dp4oz

2 жыл бұрын

When countries go go broke we go to war

Hello darkness my ol friend.. .

@OneMinuteEconomics

2 жыл бұрын

:P

At 49 seconds into the video, why did they replace the white man with a black man for the representation under the word inflation... Come on now🤔🙄😮‍💨🤣

Powell 2022...

@OneMinuteEconomics

2 жыл бұрын

:P

Keynes was just wrong and it's best we admit it as quickly as possible.

@OneMinuteEconomics

Жыл бұрын

What approach would you recommend and why?

BIOFUEL: 😎

@OneMinuteEconomics

3 жыл бұрын

:D

Current situation in West after they poked the bear. Lol.

@frugalmum7943

Жыл бұрын

Was happening before the west's so called 'leaders' poked the bear.

@frugalmum7943

Жыл бұрын

Wish we could get McDonald's to 'boycott' Australia.

@OneMinuteEconomics

Жыл бұрын

The bear is a meme, weak financially and weak militarily. Today's problems are so much more complex than that and with much, much bigger forces at play

This video didn’t explain anything

Clickbait. You didn't explain a dang thing.

Happening right now!

@OneMinuteEconomics

3 жыл бұрын

We need a fair bit more data to conclude that :)

@kahlernygard809

3 жыл бұрын

It's happening right now

@OneMinuteEconomics

3 жыл бұрын

Based on what data points, over which period though?

@kahlernygard809

3 жыл бұрын

@@OneMinuteEconomics let me write you an in depth thesis in the comment section because I care oh so much.

Both aspects of the 70s stagflation were engineered by the Rockefellers, and the 1980s return to corporatism (under the guise of Reaganomics) was discussed in economics dept's in the early 70s. The problems we have today were engineered back then.

Wow. First fallacy appearing just 4 seconds in, "when economy is growing...have more money chasing goods". Nope. When "the economy is growing", we tend to mean production growing, hence when "the economy is growing", the same money chase MORE goods hence prices fall. I'm sure the rest of video was very informative but you lose me there

@OneMinuteEconomics

7 жыл бұрын

Hi Dimitri, do keep in mind that when the economy is growing, wages tend to follow suit :)

@DimitrisAndreou

7 жыл бұрын

One Minute Economics --> It is real wage rates that go up when productivity is increased, ie when the "economy is growing". But nominal wage rates also depend on the quantity of money; you can even have growing wage rates in a _shrinking_ economy (see Venezuela for a stark example). Don't be fooled by the printing press.

@th3b0yg

7 жыл бұрын

Dimitri Andreou - economy growing means investment in production, which means more money chasing the inputs to production.

@DimitrisAndreou

7 жыл бұрын

You're describing a scenario of an increasing the investment/consumption spending ratio, i.e. more money going to investment and less money going to consumption. I don't care whether you understand the concept of "growing economy" to mean only this particular scenario (economies can very well grow even without the investment/consumption ratio changing at all), but regardless, this would inflate the prices of capital goods *and* depress the prices of consumer goods. Back to square one. Unless you also redefine "inflation" to only mean "inflation of prices of capital goods but not of consumer goods", but at that point I'd give up the mental gymnastics.

@th3b0yg

7 жыл бұрын

Dimitri Andreou not quite. Think about the inputs to production. Take steel for example. More cars and more steel buildings being produced in a growing economy. Competition for steel drives the price up. Cost of producing cars and steel buildings goes up. Cost of both capital goods that use steel and consumer goods that use steel goes up. Inflation.

badly explained

@OneMinuteEconomics

2 жыл бұрын

Hi JP and sorry you didn't like the video. If there's something else you'd like me to address that wasn't covered, please let me know.

Thanks

@OneMinuteEconomics

2 жыл бұрын

You're welcome Deepak :)