The Multiplier Effect (In less than 5 minutes)

Explainer video of the economic concept "The Multiplier".

[MyteeBumbleBee]

So much clearer than the Khan Academy presentation! Thank you!

[ruchibhardwaj]

such an awesome video! its sad there are only 3 videos on your channel. pls pls create more!!:)

[Luke-tqde]

Brilliant video with really clear explanation. Thanks

[EmilyIlett]

If the government decreased spending by 10bn would the effect still be 25bn but less instead of more?

[RobertWilsonCollectables]

Im a little confused when videos say the multiplier was developed by Keyenes when even Keynes himself identifies the originator of the multiplier as Richard Kahn in “The Relation of Home Investment to Unemployment” . I know this is how a level is taught but it seems like a strange simplification which just gives more credit to Keynes

[homesweetcooking]

Why economy so complicated geez, and its also useless for me...really regret to choose this course

[middlepath]

Really helpful to me .. thanqq...🤗 N God bless you

[EsterNghishoongele]

Thank you for this I would like to follow your presentation

[abubakkkaridrees]

Thank you so much for this, it was really helpful!

[jeanbaroro]

thank you this video really helped me a lot..

[dgfclify]

Thank you! i fell asleep throught this part in the chapter because it was so confusing to read. thanks again!

[mystic_hkx]

Thank you sooo much!!! Video was really helpful.

[mamkay]

Thank you've teach me cash flow in 1 minutes

[RaquelSantos-hjmq]

How do you predict MPC and MPS? How do you get into the heads of millions of individual consumers and their unique circumstances and psychology?

[ochukuemmanuel]

Thank you for making this video it was very helpful

[being]

I didn’t get it quite well, does it mean that the 10b$ become 25b$, or some imagery effect that actual doesn’t happen

[diegocolomes]

Savings are either a "leakage" or go to the financial institutions (which they usually do). If they go to financial institutions (as you assume first) you can not call that a leakage (as you do immediately after)...

[shammaalali]

can someone tell me what dose it mean If the initial government value was 25b? like what do we do with the number, what does it show?

[abdullahahmed]

How does the money and individual saves is used in institutions? Isn't it the personal bank statement?

You might need to learn this for an exam but be aware that it's broken. Keynesian economics is broken.

Here's what's wrong...
1/ at 1:00 we are informed that any money saved: the savings, is put back to work in the real economy
2/ at 1:27 we are told the opposite, that savings are removed from the economy and is labelled "leakage"

The base assumption used for the rest of the argument is 2/ but this is false. In reality 1/ is correct - banks put savings back to work within seconds of it being received. Any confusion is quickly covered up with clever math. The only justification for 2/ would be if people kept all of their money under their mattresses - they don't.