Tax Revenue and Deadweight Loss

Why do taxes exist? What are the effects of taxes? We discuss how taxes affect consumer surplus and producer surplus and discuss the concept of deadweight loss at length. We’ll also look at a real-world example of deadweight loss: taxing luxury yachts in the 1990s.

00:00 Introduction
00:30 The Effects of a Tax
04:16 Explaining Deadweight Loss
07:26 Deadweight Loss and Elasticity
09:30 Taxing Yachts – A Good Idea?

[qtmagic]

1 day before micro final. Wish me luck

[thesocratos]

University are useless, this video made me learn more than the entire course

[memonabaig]

Have had microeconomics for 2 YEARS NOW and these guys explain it in such a efficient way! i have learned more in 2 days than I have in 2 years! Bless you both!

[jessea.]

you just saved my life lol. this is so helpful and easy to understand and I feel like a pro lol

[vincentalykin]

This was well-written and well-executed. I learned from this video explanation more than I learned from some other videos on the subject that I've watched.

[MA-rceo]

Thank you sir. I nominate you to be the hero of Economics.

[MatthewGraham]

The explanation about deadweight loss is the perfect example of why economics and policy don't mix well. People would complain like crazy if you taxed inelastic goods. If we were to tax basic necessities, there would be an uproar about how evil this is. We can't even get the public to release the tax break on healthcare even though it is causing a mess. Maybe we should call the relative elasticity of demand in relation to taxes the "coefficient of complaining curve". Very inelastic = lots of complaining.

[tsalvlaxitov]

I know he mentioned exceptions, but again, the problem with this followed to it's conclusion and put into practice is the diagram around 7:27 the left would represent something like luxury yachts and the right would represent something like electricity. "Pretty clearly we want to tax the hell out of electricity because if people are held hostage to it you can get away with it." Sooner or later its going to get around to something people need instead of want.

[mannatkalra]

Amazing explanation!! 👏
Thank you so much! :)

[derpydino]

thank you so much the chapter explaining this made no sense what so ever to me and this just explained it making it look like the easiest thing in the world

[zainamubarak]

Thank you ☺️ I was finding it very hard to understand but now I love econ 😅

[TheBullOfLewisham]

Thurs 2nd May 2024.
00.05am.
Thank you. 👍

[ruzdiyaaniff]

Thank you so much sir thiz video helps me to get to a clear idea ....

[visheshnarula]

easy to understand. thankyou. would prefer your lessons over any book.

[caryli]

Very helpful and clear video, thank you!

[a-starsibanjeikosa]

This is what I definitely subscribe to

[nafiskhan]

Me watching this video night before exam tomorrow

[aleciaharridon]

i love these lecturers economics is not the easiest subject for me and i really understand it better now. have exam in a few :(

[robindragirl]

YOU SOOOO MUCH!!!! VERY HELPFUL!!
SUBSCRIBED!! 💝💝

[aryanngupta]

I feel like you cannot use the example about the yacht as there are other confounding variables. There may have been a fall in demand for luxury goods due to the economic crisis around the 1990s. I do not think we can suggest causality between the tax and the fall in yacht purchases. Not sure about what people think about this.