English Vocabulary: How to talk about the economy

TRANSCRIPT

We're going to start with "GDP" because everything somehow relates to "GDP - gross domestic product". What is this? This is the total value, the total monetary value of goods and services produced within a country. So everything that the country produces from toilet paper to airplanes, and services from massage to heart surgery, all the money that's made from these goods and services together adds up to the GDP. So, when we're talking about GDP, we're going to refer back to this expression when we're talking about some of these other words.

So, first, let's look at "fiscal". "Fiscal" basically means anything to do with money, anything to do with financial matters, especially when we're talking about taxes. Okay? So, when... The most common thing you'll hear is "fiscal year". So when we're talking about a company's fiscal year, we're talking about it's the beginning of its tax year to the end of its tax year. In some countries, everybody matches this to January to December; in other countries, you're allowed... Your fiscal year starts when you start your business, and then one year later is the end of your fiscal year. It's easier to match it to the calendar year, but...

A "quarter". Now, you're going to always hear about prices, and stocks, and values going up or down over the last quarter or over the last two quarters. What is a "quarter"? It's basically three months. So if you're talking about the first quarter of the year, you're talking about January, February, March. That's your first quarter. Your next three months, second quarter. Four quarters makes one year.

"Currency". I think everybody knows this word, but just in case, this is the money that is used in a country or a region. This is the monetary value that is used for exchanges, trades, investments, etc. In Canada, we use the Canadian dollar. In the U.S., they use the American dollar. Euro in Europe, etc.

A "budget". A "budget" or "to budget", it can be a noun or a verb, means to make a plan on how to spend a certain amount of money. So, for example, a government has this much money that they need to spend, or they have a plan that they want to spend this much money. Now, they want to spend a million dollars. I'm being very simple, here; I'm not going to get into big numbers. They need to spend a million dollars to provide all the services that they need and to buy all the materials that they need to import, etc. If they are running on a deficit, that means that they need to spend more money than they have. They have to spend on things to bring in or to run the country, but they don't have. So if I need to spend a million dollars but I only make the revenues of the country are only $900,000, then they will run on $100,000 deficit. Okay?

"Surplus" is the opposite. "Surplus" is when the government or any company, you don't have to apply this to a government, when you have more money than you need for the budget. So if I need to spend a million dollars over the next year, but I have a million and a half, then I have half a million dollar surplus, which is always a good thing.

"Inflation/deflation". "Inflation" is when prices of goods and services go up, but wages stay the same. So, basically, the purchase power of the individual goes down. You have the same amount of money, but you can buy fewer things or you can hire fewer people to do to have services for you. "Deflation" is the opposite. That's when prices go down, and the value of your dollar or your currency goes up. Both situations are not good.

[kinecasa]

your voice is very clear i can easly understand your words... thanks adam

[larisaandreeva]

Thank you, Adam, for your lessons! you're the best teacher i've ever known!

[Long-mmci]

i think this topic is so useful to read a newspaper or watch a TV relative to the economic. Thanks Adam so much. God bless you.

[anitaspahijaj]

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[AsadAli-ccfr]

Your teaching technique has been out of this world. Appreciate you too much.

[lenacasasnovas]

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[wenlopezn]

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[stiff.b.c]

The most person that teaches the details that people need to know... You're great! I've been tought alot by you and not only me! Sir.

[ANJEYJOY]

Incredibly clear explanation, thank you so much for your videos.

[khadijarhorbal]

Hi, Adam, Thanks a lot for your explanation, i'm so gratuful for your videos, i improuve my english every single day, i'm so eager to start teaching english, i will use all the vocabulary that you learn me. Thunk you Adam.

[daneluc]

clap you hand!!! are my heroes, rebcca, ronnie, alex and the best voice i've herard before are you of ADAMS..!!

[mardisiswanto]

Nice teaching new English vocabulary in Economics. Thanks so much, my teacher.

[GaryBVlogs]

Thank you so much for your videos. It really helped me a lot understanding and knowing the proper words to be used in an english language. The way you explain and the way you pronounce every word very vividly is awesome. Thank you!

[ayatkareem]

As i am dentist, i struggles to recognize business vocabulary in news paper, the most defucalt part of learning English is to read news paper specially politics and economy section, any way thanks a million for this amazing video, it is really helpfull.

[mxolisithango]

Adam, my name is Mxolisi from South Africa, hey you are a good teacher baba and thank you

[muratceyhanishere]

Short & to the point! Thanks Adam!

[jairoeuzebio]

These are very important tip about business vocabulary. You're the one Adam.

[LenilsonMedeiros]

Thank you Adam in Brazil we can use almost all words that i saw in your video. For example : Our economy is terrible, we have Inflation, Deficit, Stagnation, Recession, Debt and Burst. :)

[mariaceciliaromero]

Thank you very much for all your videos, they are excellent and, I’ve improved my English in many ways! You are the best!!!!

[xuskes]

Your classes are really great! Thanks!