Circular Flow of Income and Spending (Introduction to Macro)

preview_player
Показать описание
​Here is an updated video looking at a model of the circular flow of income and spending in an economy. Part of an introduction to macroeconomics.
Рекомендации по теме
Комментарии
Автор

Hi Geoff!
Thanks for the amazing video
Observed behaviour is that both households and firm benefit from a free market economy. However, circular flow model says that profit for one must lead to loss of other(s). How do we reconcile these observations?

dhruvrana
Автор

Hi there, I would like to make an opinion on regards to this model and it is based on the conclusions of at least two economist one is Keynes and the other I won't mention it at the moment.
This circular flow has a chronic and cyclical lack of purchasing power and of overproduction. The former is due in small part to profit, savings, reinvestments and largely to the banking system of loans determined by the fractional reserve. The later manifest in part in the increased production in consumer goods and also capital goods trying to compensate for that lack of purchasing power, which makes exports posible although only for certain time as it's destination are markets that have the same problem. I also think it is essential that this problem is acknowledged in the interest of finding solutions o our increasing economic problems. That can begin by proposing a different view of what is orthodox economic models such as this diagram.

Savings come from purchases which mean more goods and less money, even if that money is reinvested part of it does not return to the households in the same period of production then most loans become money that does not stay in the economy and is only used in one cycle hence it is needed that money stays in the economy until the goods made become useless or until equilibrium is found . If others recognize this to be true I can state the proposals of the economist that identify this problem and tried to bring a solution to it.

DistributistHound
Автор

mujhe maaf karde mera aise na kara kar

jhonnybaba
Автор

I'm here because of my politics teacher

Azylonn