Punk Economics 1: The European Debt Crisis

David McWilliams, Irish economist, gives us our first lesson in punk economics.

Writer/Director: David McWilliams
Producer/Editor: Mary Catherine Brouder
Illustrator: Mark Flood
Production Manager: Sanja Miladinovic
Music: Hassle Merchants "Run Rabbit Run"
Rocketsurgery "Rubix"
The Eskies "Jailhouse Sun"
James Guilmartin "Untimely Tails"

[cityzenjane]

Hey you guys - PLEASE set this series up as a playlist. IT's each peasy.

[magooglevision]

Every citizen in Europe needs to see this, Great stuff David.

[tedtrash]

It is a good analogy. You can't run a vehicle without fuel.
If you don't want to break down a few miles down the road, you should check the system and eliminate any fuel leaks, as well.

If you want to make sure you waste a lot of time and go nowhere, scold your vehicle for not running on the amount of fuel for which it was designed.

[manalorocks]

This guy accurately predicted the collapse of the Irish property market and the Irish economy over 10 years ago even though he was lambasted at the time!!!He's a highly respected economist who actually worked throughout Europe in many different banking firms, I would trust his judgement over some random youtubers who may have done Economics in College!

[LIVEWithLottie]

Great video David - love the stylish new way of explaining a perceived dry or "dull" topic & fantastic pacing & pausing to allow us to really hear the content in your VO. Lovely lyrical storytelling - can't wait to see more!

[iakovos]

Excellent Video.
In Greece with 50K of income last year, I paid 20K in taxes, 12K in never-to-be-refunded VAT(from exports), 2K emergency tax for freelancers, €1700 road tax, 5K in property tax and 10K to the bank for my mortgate and I am left with -€1000 to feel my children and for my bills... If this is their idea to revitalise the economy .. they are for a nasty surprise. I have two choices: 1) dodging my taxes or 2)moving to United States. As a law-abiding citizen will go for option number 2

[LibertyWarrior]

@Coltaculuss I read many books on free markets, I understand them very well. Did you go to University to study Are you able to tell me in a few simple words what is money??? I am interested in what you think.

[TheEuropeanAgenda]

It really is disgusting. Well done to David Mc Williams for standing up and warning the people. Most Irish people know that David has a record of both telling the truth while at the same time being accurate.

[d.irving]

6:25 - "somebody has got to spend! And if the government doesn't spend, who will?"
The pinnacle of broken economics...

We've had the separation of church and state; I hope we someday see the separation of economy and state.

[solasagusdochas]

The views presented are well made and logical. In order to move forward and create a functioning European economy fuel needs to be added once more to the fire to generate consumer confidence and kick start the economic engine which will create employment and continued upward momentum. The low interest rates in the late 90's to 2006 did not suit the Irish economy, however inactive Irish state agencies left the nation greatly exposed, corporate debt should be shared with fellow member states.

[Stadtpark]

it's not about saving the current system - it's about lowering peoples expectations / feelings of entitlement before the restart of the system is undertaken. The restart will come - but it will only work, when peoples minds have been changed to some extend... - and as long that hasn't happened, it doesn't make sense to allow a restart.

[adudzik]

No, I didn't assert that thrift always contracts the economy. The claim of the paradox of thrift is that if every single person simultaneously increases their savings, income goes down. In other words, it is possible under some circumstances (for example, rigid wages in the face of massive economic shock) for thrift to contract the economy.

For a toy example, see Sweeney & Sweeney's account of a babysitting co-op that had this exact problem.

Investment, by the way, is a form of spending.

[ftorresgamez]

Re: QCREIGN,
"This guy thinks saving is bad?"

The guy that made the video is your standard run-of-the-mill Keynesian and anti-free market loon. He gives a good diagnosis of the problem but, like all Keynesians, he prescribes more of the same: More government meddling, more spending, less savings.
Like I told Andrew Dudzik: Capital comes from savings. People postpone consumption today for a greater reward tomorrow, also called Time Preference. It is TP which dictates interest rates.

[turbstlcards]

They should know quite a bit because we are all in it together.

[martyroony]

Really good and really creative in every way

[pendragonyk]

Re-read his books (I've read 'generation game', all his columns, but not i have to admit, 'popes children') and you'll see he is nearly always right. His grasp of real people, real life, common sense and powers of observation added to economics knowledge make him the only voice of reason in all this. I remember only once disagreeing with him recommending Ireland leave the Euro, as I figured the punt would collapse, until I realised that was the whole point!

[snakyjake]

haha k, i get it. its just important to realize how much more destructive inflation can be without any standard, and you're right, it only has value because we give it value, but that can be said about anything, and throughout history, gold has been a pretty good standard when applied correctly

[Gobadán-sw]

I have little faith in the people to stand up and say anything. Even if they do they will be ignored. "Each act, each occasion, is worse than the last, but only a little worse. You wait for the next and the next. You wait for one great shocking occasion, thinking that others, when such a shock comes, will join with you in resisting somehow." - Milton Mayer - They Thought They Were Free.

[ftorresgamez]

Re: Andrew Dudzik,
"Nothing in the model claims[...]you can compare savings rates[...]"

What model would that be? Because if you're talking about the "paradox of thrift", a model that cannot be applied to any economy is no good.

As for markets not adjusting "quickly enough, " see what happened after the Depression of 1921, or after WW2. The economy rebounded pretty quickly after those. In BOTH instances, government spending went DOWN, production (and savings) went UP.

[mccoya]

Great video David. I think you underestimate the power elite in Europe. They are not stupid. This is a massive political drive to consolidate power in Europe and the world. Its very little to do with economics, or peoples well-being. Crises is a perfect opportunity for power hungry people. Again, they are not stupid!!