It is really a cruel joke that the only finance minister knowing what he is talking about had to resign after being a few weeks in duty. Many thanks to Yanis for continuing in the struggle against neoliberalism and trying to bring economical education to the people!

Total expenditure = Total GDP, Therefore decrease expenditure (austerity) = decrease in GDP. He's right, that's a simple principle.

Some people in the comments struggling to understand why at the national level income equals expenditure. Let me give a simple but clear explanation. Every income that a person has is someone else's expenditure (it doesn't come from nowhere). Expenditure in turn comes from income. At the aggregrate level, expenditure must equal income. That is, when you add up all the incomes it must by definition equal all the expenditures. That's the simple way of looking at it. If you struggle to visualise it, imagine a toy economy of 3 people. There are 3,000 Buckaroos (currency) total in the economy. Person A has income 2000 and expenditure 1000. Person B has income 1000 and expenditure 1000. Person C has income 0 and expenditure 1000. The total income in the economy is 2000 + 1000 + 0 = 3000. The total expenditure is 1000 + 1000 + 1000 = 3000. Total income = total expenditure (3000 = 3000). However, this is not necessarily true for each individual. Person A is saving 1000, Person B is breaking even, and Person C is dissaving 1000. It is critical to realise that we are talking about two different levels. The macro / aggregate / system level, and the micro / disaggregated / elemental level. What is true for the individual is not necessarily true for the system. If one person stands up in a theatre, they get a better view. If everyone stands up, nobody can see.

I think this video is missing at least 6 zeros.

Talk to Stephanie Kelton about the solution to this problem. It is called taxation (of excessive capital and complete removal from the economic system) Sequestered Billions need to be eliminated. It the capital is only paper, it needs to disappear for the protection of the common man and woman.

Is there a recording of this entire talk?

@alexandrosanastasiadis3372

5 жыл бұрын

Yep

Can anybody help me out? The expenditure if a nation = it's income? Why?

@moodifi

6 жыл бұрын

I thought this would apply to a household and not to a nation. Furthermore, he says it is dependent of a nations income as well as literally "the nations total expenditure is the nations total income". I still don't understand it

@moodifi

6 жыл бұрын

Klash Song the expenditure here also refers to e.g. social expenditure as i recall his talk. For instance greek raised taxes and cut down social expenditures like retirement

@kwizrak

5 жыл бұрын

GDP is calculated based on two basic methods which are identical. The one is based on income and is calculated via the prices of all goods and services at a certain time. The other is based on spending and includes government spending, investments e.t.c. From these two, you can derive that government spending can be seen as expenditure (definition 2) or as an income/service (definition 1). That is why there is a 1-1 relation between spending and income. That is why our economy is said to be "comsumption-driven" economy. www.investopedia.com/articles/investing/051415/how-calculate-gdp-country.asp See the above link

@EclecticSceptic

3 жыл бұрын

Every income that a person has is someone else's expenditure (it doesn't come from nowhere). Expenditure in turn comes from income. At the aggregrate level, expenditure must equal income. That is, when you add up all the incomes it must by definition equal all the expenditures. That's the simple way of looking at it. If struggle to visualise it, imagine a toy economy of 3 people. There are 3,000 Buckaroos (currency) total in the economy. Person A has income 2000 and expenditure 1000. Person B has income 1000 and expenditure 1000. Person C has income 0 and expenditure 1000. The total income in the economy is 2000 + 1000 + 0 = 3000. The total expenditure is 1000 + 1000 + 1000 = 3000. Total income = total expenditure. However, this is not true for each individual. Person A is saving 1000, Person B is breaking even, and Person C is dissaving 1000. It is critical to realise that we are talking about two different levels. The macro / aggregate / system level, and the micro / disaggregated / elemental level. What is true for the individual is not necessarily true for the system.

2023: No austerity during the pandemic. The economy is stalling, debt is skyrocketing, inflation is high, life sucks.

Yanis: Austerity. Blonde girl at the front: Tell me more daddy.

Notice all the nervous, guilty tells of the kleptos.

public spending goes down by 20%=GDP goes down by 20% ??? wat.

@It9LpBFS37

6 жыл бұрын

1425363878 Public debt as percentage of GDP goes up 20%

@mek101whatif7

5 жыл бұрын

Well, if the GDP is 100% made by public spending...

@mirror452

4 жыл бұрын

In his example public spending went down by 50%, which was 20% of total GDP.

5:06 How the hell does he arrive at the conclusion that the nation's expenditure is equal to its income? Is he suggesting that every bit of money that the government spends goes back into the economy that spent the money? If I buy oil to create a tar on the roads and that oil comes from Saudi Arabia how then is my expenditure equal to my income? There is no truly closed macroeconomy in the short term (perhaps in the long term but nations fall in the long term). I can see how government spending within its own economy is not (by its self) bad but all that government spends on/controls/produces is done inefficiently compared to the free market. If the government frees up the market to build toll roads, private schools, stops taxing production, the economy can do the same thing as the government but in a way that is not coercive or wasteful and if private buisness is doing the investing in infrastructure the general public is not on the line for the failures or the debt, only that buisness is on the line for that debt.

@mek101whatif7

5 жыл бұрын

"Is he suggesting that every bit of money that the government spends goes back into the economy that spent the money?" No. He's saying that if you cut public spending for welfare-related businesses and activities then the spent money doesn't go flow into the rest of the economy "I can see how government spending within its own economy is not (by its self) bad but all that government spends on/controls/produces is done inefficiently compared to the free market" That's a preassumption.

@pillmuncher67

4 жыл бұрын

What you don't realize is that, trade surpluses and trade deficits in the world also equal each other out. If a country exports the same amount it imports, then Varoufakis is right and also, if you look at the world as a whole. If a country like min, Germany, over many years has a trade surplus, it forces other nations to have deficits. That's commonly known as beggar-thy-neighbor policy.

forget greece?alitheia?wraios................

@karagiozhs

7 жыл бұрын

George Kalokairinos ennoei se eurwpaiko h pagkosmio epipedo. mhn trwgesat gia kauga

@georgekalokairinos2469

7 жыл бұрын

gia kauga oute kan...alla den to les auto san prwin ypourgos "gelontas"

@georgex.moutafis4997

7 жыл бұрын

Το είπε προς χάριν του λόγου. Ηρέμησε, μην το παίρνεις προσωπικά.

@giorgosasimakopoulos4307

7 жыл бұрын

karagiozhs καραγκιόζη για την Ελλαδα τρεχει αν δεν το βλεπεις κοιτας το δαχτυλο σου και χανεις το δασος

Austerity, happens when you have ZERO plan to develop your country and instead, you shell every single penny of yours to londons and for boostin hms PREMADE YANISARIES like baroufakis...