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Economics — Transcript

by Andrew Johnson · 6,625 words · 992 segments · language en · Watch on YouTube

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0:09hello
0:10again we're
0:13back so at the very beginning the class
0:16it feels like we jump around a lot and
0:19you're gonna say man Andy this how is
0:21this all related to money and it it is
0:23all related to money and it it's going
0:25to start to actually come together here
0:28real soon we're going to see how money
0:30how people feel about money so most
0:32people say how do you feel about money
0:34and they go I want as much as I can
0:38get you're G to find out that that's not
0:41really true oh I am I want as much as I
0:45can
0:46get actually you
0:49want some but we're GNA actually start
0:52to measure how much you want
0:55it that's where it gets more interesting
0:57it's not like you say I I want
0:59everything
1:00I want it all I want it now don't have a
1:03cow there's a video my daughter watches
1:06and the the little girl sings that um
1:10you don't want it all and you don't want
1:11it now I don't know what you think of
1:14cows
1:15but we're gonna find out how you think
1:19about money and how much you want it so
1:22the next section is going to be one of
1:24the tougher sections in this
1:28class it just is
1:33and if you follow Andy's three rules
1:37it's actually not hard but a lot of
1:40times people just will not follow the
1:43rules and then it becomes tougher
1:47so there's if you look at the very
1:49beginning I sent the email to you I say
1:51what pages to read in your textbook and
1:53one section you need to read is the
1:56section on
1:58economics and you need to read it three
2:00times this is the only time I'm ever
2:02going to ask you to read something more
2:04than once most of the stuff you can just
2:06brain through it and you go antitrust
2:09unfair trade okay I remember that and
2:10you you memorize and it's not that this
2:14isn't that tough of a class you're going
2:16to take much more difficult classes than
2:19this but this one
2:22section you need to read the textbook in
2:25it three times so here's how you do it
2:29you open up the textbook and you go
2:32BL close it don't care if you understand
2:36a single word just read
2:40it and that's it just for pleasure you
2:44say
2:45pleasure pleasure just read it like you
2:48would read something for pleasure okay
2:51then wait an
2:53hour open it back up this time read it
2:57like you kind of care what it says
3:01but don't kill yourself right close the
3:04book wait one
3:07day next day now really read it try to
3:13understand
3:14it something magical happens the third
3:17time I always get people that go
3:20Andy I don't understand
3:24this and I say did you read it three
3:27times come on did you really read it
3:30three times and the the answer I get is
3:34oh no but I go read it three times
3:39something magical happens then later on
3:41they come up to me I say hey did you
3:43read it three times they go yeah do you
3:47understand
3:48it yeah I don't know it this is just the
3:52only time that you need to read it three
3:54times but it it because your brain has
3:56to think differently it it's it's not
3:58memorization it's your brain you got to
4:01shift the way that your brain thinks so
4:04I know some of you guys speak more than
4:06one language I
4:09do when you speak in another language
4:11your brain changes a little bit so I
4:15have this dear friend uh in Beijing she
4:18teaches at Bay why Beijing Foreign
4:20Studies
4:22University considered one of the best
4:24schools in China not the best but it's
4:28it's up there in the r terrified it's
4:31it's really good school and you meet her
4:34and she's very quiet she talks like this
4:39and you ask her stuff and she says let
4:42me think about that and then she tells
4:45you the answer and she does everything
4:47so I'm talking to
4:49her and I was in Beijing at the time
4:53with her and she showing me all over
4:54Beijing and I'm just having a ball and
4:57then I said
4:59how how do you say I can't remember what
5:02I asked I said but how do you say this
5:04thing in Chinese and she
5:06says let me think well the way the
5:09probably the best way to say
5:11is I
5:13like what the heck just happen right and
5:18I said that you sound so different than
5:21when you speak Chinese to me then you do
5:25and you speak English and she says well
5:28I'm I'm I put myself in my Chinese
5:31headset or mindset versus the American
5:34mindset my in in Chinese we speak
5:38differently not only different language
5:40but it's different there's a whole bunch
5:42of other stuff that's going on in the
5:45background it's the same with all all
5:46countries anywhere you travel you're
5:48there's stuff going on in the back that
5:50you think that you got it you really
5:52don't have it and apparently the phrase
5:54that I had asked her was supposed to
5:58be asked
6:00in a different way than we would
6:03normally speak Engish because I heard
6:04her speak Chinese to to other people and
6:07I never heard anything like that coming
6:09out of her mouth but it would in that
6:13situation you were supposed to kind of
6:15be a little bit louder and whatever I
6:19don't I I really don't understand
6:21because I'm not Chinese so I don't
6:22really I can't say that I'm an expert on
6:25Chinese um but something happens here
6:27with economics too you gotta
6:31you got to shift the way that you think
6:32you got to just be different it's not
6:35right or wrong it's just
6:38different okay so that's rule number
6:42one rule number
6:44two don't memorize it your textbook one
6:47is going to make it easy for you to
6:48memorize it so you're G to see this cool
6:51little graph and you say that's Supply
6:55and that's demand and this is what what
6:59don't
7:00don't don't don't don't don't don't
7:02instead saying if I produce something
7:05I'm the supplier where's how much I want
7:08money if I'm the consumer or I'm the
7:11person demanding it here's how much
7:13money here's how much I want it I know
7:16one thing as the price goes down I want
7:20more of it I'll buy more of
7:23it as as the price goes up I'm not going
7:28to buy as much
7:30okay do we sell more Toyotas or
7:33Porsches Toyotas by far right but
7:38because Toyotas are cheaper and so
7:41here's a quantity and when the price
7:44goes down you buy more of them how many
7:46Ferraris do we
7:48sell not very many but they're really
7:51expensive aren't they and so this is my
7:55demand gets us to the
7:58next one which I'll tell you later ah
8:01full dip okay two types of Economics one
8:05is called microeconomics and one's
8:08called
8:10macroeconomics microeconomics gives you
8:13the supply curve and the demand curve of
8:15a specific product one thing so you
8:18could say supply curve and demand curve
8:20for old man reading
8:27glasses okay you could say supply curve
8:31and demand curve for silk shirts is that
8:35Silk shirt
8:38yeah you can say supply curve and demand
8:41curve for Big Max which we'll talk about
8:44Big Mac more but Pepsi you can say so
8:48you're talking about one
8:50thing in macroeconomics you're talking
8:53about the supply curve and demand curve
8:55for multiple products multiple groups
8:58you're basically looking at the supply
9:00curve and demand curve for money in a
9:03large group of people like you'll talk
9:06about the macroeconomics of Seattle the
9:09macroeconomics of Tokyo the
9:12macroeconomics of Africa the two cities
9:16Africa is not a city it's
9:20continent supply curve and demac so but
9:23we'll talk more about macro first micro
9:25if you understand micro it makes macro a
9:28heck of a lot easier for some reason
9:30when when they tell you to take classes
9:32so if you have to take micro and macro
9:36they say ah take what youever one you
9:38want no take micro first micro is
9:43macroeconomics is based on
9:44microeconomics if you understand
9:46micro you're actually going to learn
9:48some macro so my wife is taking this
9:50micro and she's asking me these
9:52questions I'm
9:53like that's macro why are you even
9:56studying that that has nothing to do
9:58with micro but macro you can say oh that
10:01has micro because it's based off of that
10:04small micro means small macro means
10:07larger some people say it means big it
10:09doesn't mean big it can but it just
10:12means not small versus micro means
10:16small
10:18okay so first off you have something
10:20called the supply
10:23curve supply curve you want to say the
10:26word Supply you do this is rule number
10:29number three you always say curve you
10:33never say Supply you never say demand
10:35you say curve supply curve demand
10:41curve supply curve is where you produce
10:45something and how much you want money
10:49how hard are you willing to work to get
10:53money okay so if I let's look at
10:57blueberry muffins
11:00if I told you that for every blueberry
11:04muffin you produce or you give
11:07me I'll give you a dollar each so every
11:11blueberry muffin you give me if Monday
11:13if I said that I'll give you a dollar
11:17each you maybe you'd make some blueberry
11:19muffins maybe you would maybe it's not
11:21even worth your time is it worth Bill
11:23Gates time to make a blueberry muffin
11:24for a dollar each no but if you're
11:29starving college student sitting in your
11:31apartment complex all by yourself you've
11:35got nothing to do all
11:37weekend and you figured out that your
11:39cost to make a blueberry muffin is 35
11:42cents and I said I would give you a
11:44dollar each for every blueberry
11:47muffin is it worth your time to make
11:49blueberry muffins probably right because
11:52it's kind of fun you'll eat a few too on
11:54your own right and might make some for
11:56your grandma or something like that but
11:59no make a few but what if I gave you
12:01a100 for every blueberry
12:06muffin $100 for every blueberry muffin
12:09would you make more of them than if I
12:12made you gave you a dollar for every
12:14blueberry muffin yeah you'd go crazy
12:17wouldn't you right so that represents
12:21our supply curve now our supply curve is
12:23different than Bill Gates is it worth
12:25Bill Gates time to make a blueberry
12:28muffin and get $100 for it no he makes
12:32way more than $100 in that short length
12:35of time to make a blueberry month and
12:37even if he made 50 it's still not worth
12:40his time he's he's he doesn't care
12:43right would you care yeah you go crazy
12:47right so I can plot this on this little
12:50chart price versus quantity and I know
12:55that if it's if I give you very little
12:58it's not worth your time so let's say it
13:01cost 50 cents to make a blueberry muffin
13:02and I'll give you 51 cents you're going
13:06no zero I get 55 cents
13:11on zero I gave you 75 cents you're
13:15making 25 cents of blueberry muffin you
13:17go I might make a
13:20few enough for to buy dinner okay I gave
13:25you $2 for blueberry muffin you're like
13:28go I'm G to make more than they were if
13:31they were 60 cents if I give you $5 for
13:35every blueberry muffin you going I'm GNA
13:38make a
13:39bunch I said I'm gonna give you $10 for
13:42every blueberry muffin you would go
13:45crazy wouldn't you you'd be baking
13:47blueberry muffins like nobody's business
13:49so this is our
13:51supply curve say
13:53curve say
13:57curve say curve it will will change the
14:01world supply curve the supply curve is
14:06our desire to make blueberry muffins and
14:09it's not the supply isn't here the
14:12supply isn't here the supply isn't here
14:14the supply curve represents our desire
14:18for blueberry muffins and it moves up
14:21and down but it's actually fairly stable
14:24so well I really oh I want to make more
14:26blueberry muffins for $100 than I do for
14:28a dollar
14:29no that's on the supply curve but the
14:31curve hasn't moved has it the curve
14:35represents our desire for blueberry
14:37method to make blueberry
14:42methods okay I Saw Supply you I say
14:45Supply you say curve supply curve supply
14:49curve supply curve always say the word
14:51curve it
14:53just it changes the way you think and
14:55then you'll be able to answer questions
14:57later on I'll show you I'm gonna give
14:59you a trick question here in a little
15:01bit and you're gonna go Andy that's a
15:04trick question and I'm gonna say yep
15:07because you didn't say when I said
15:09Supply you didn't
15:12say
15:14okay Supply there is no Supply it's
15:17represented by this line there's a
15:21supply curve there's no
15:23Supply then you have the demand
15:31curve the demand curve represents where
15:35our money on a pro or desire to spend
15:37money on a
15:39product
15:41so let's say somebody came into class
15:45tomorrow or next Monday and they brought
15:48in a whole bunch of blueberry muffins
15:50and they wanted a $100 for them they're
15:52really super
15:53yummy would you pay a dollar $100 for a
15:56blueberry
15:57muffin probably nobody
16:01would okay what if I the person comes in
16:05and says hey I'll s for a
16:07dollar probably a few people say well
16:09you know what I haven't had breakfast or
16:11lunch those are pretty yummy looking
16:13blueberry muffins I'd probably buy a few
16:17what if they said 10 cents
16:19each you say you know what I can put
16:22them in a bag I can put them in the
16:24freezer and I can have blueberry muffins
16:27for a long time
16:29time what if there were a
16:32penny you'd buy bags wouldn't you you
16:35might even resell them right you feed
16:37them to your dog to your cat you give
16:39blueberry muffins for everybody's
16:42birthday and Christmas and they get so
16:44tired of your blueberry muffins but for
16:48for a dollar you just got a hundred so I
16:50mean you could give out really good
16:53blueberry muffin baskets couldn't
16:57you so
16:59that's a demand curve now some PE some
17:02people are going to
17:04say I don't like
17:06blueberries I don't like them you can
17:09give them to me for 10 cents
17:11each I don't like it you can give me for
17:14a penny I can't stand the smell I don't
17:17want blueberries in my freezer no I not
17:21some people are gonna say blueberries I
17:24love
17:24blueberries my daughter loves
17:27blueberries my son not so much he picks
17:29them out so but everybody's demand curve
17:34is
17:37different so as the price goes down I'm
17:40willing to buy more price goes up I
17:43don't want to buy do PE how many people
17:46do you know who
17:47have a family and they have three
17:50Porsches in their
17:54garage not too many how many people do
17:56you know have a family and they have
17:59three Toyotas or three Hyundai in their
18:02car in their garage or parked on the
18:05street or whatever you got got the point
18:07as the price goes down you can afford
18:10it now
18:12where the supply curve means the demand
18:16curve which one's Supply and which one's
18:18demand uh oh made a
18:20mistake you go well this a supply oh I
18:24know which one Supply is it doesn't
18:27always go that way sometimes can go down
18:29like this sometimes it can wiggle around
18:32and the demand curve that's the one that
18:34goes like this not always sometimes it
18:36can go the other way around you can I
18:38had a economics class and on the final
18:42exam they inverted price and quantity
18:46and made it so that the supply and
18:47demand curves were completely opposite
18:49and most people missed the question
18:51because they remember I Supply always
18:52goes up now you think it's micro
18:55remember it's one product and you say if
18:58I'm buying it
18:59I'm the
19:00demand do I want more of it as the price
19:03goes down usually you do but up to a
19:05certain point so the price of gasoline
19:07goes
19:08down you buy more once you're up to a
19:11certain point then after a while you
19:14stop buying it why because you already
19:16have all your gas tanks filled all your
19:18stuff you don't need anymore so it go
19:20it's so it changes right so then it's
19:22not always like that don't memorize it
19:24say for this product which is on want so
19:27I know it's blueberry muffins or pizza
19:30oh Pizza I love pizza if the price of
19:32pizza goes down I want more of them so
19:35this has to be demand I really wish in
19:37this slide they didn't put demand here
19:40and they didn't put Supply here and then
19:41you have to figure out which one's which
19:44because it changes every time so now
19:47where our desire our desire to eat
19:50pizza meets The Producers desire to
19:53produce pizza that's called
19:57equilibrium and that tells
20:00you how many pieces of pizza to make
20:03oops eight and how much to
20:08charge here's a
20:10question what does the price of pizza do
20:13to the
20:17supply think about what does the price
20:19of pizza do to
20:21supply yeah in my on my in in class
20:26classes on this I get all sorts of an
20:29he like makes it go up makes it go down
20:33it does
20:34nothing it moves you along the supply
20:39curve do you hear that
20:43curve and you yes that moves along but
20:46it doesn't move the curve does
20:51it supply curve and demand curve are
20:54independent they have nothing to do with
20:56with each other so I'm making pizza and
20:59you want the pizza for
21:00free because you like my free
21:03pizza do I
21:06care no do I care no because I'm making
21:10the pizza for one reason and that's not
21:12because I love the smell of pizza that's
21:14not because it's to make money and do I
21:17care if you want free pizza you want it
21:19so badly you can't control yourself I
21:21don't
21:22care I want $100 for each slice of
21:27pizza do you here will you ever give me
21:30$100 for no you said no it's not worth
21:33it so what we have to do is we have to
21:34look at where our desires meet but
21:36they're independent one moves the other
21:39moves right so let's talk about
21:42blueberry
21:43muffins so I was listening to the radio
21:47one time driving home and they they
21:50found out that blueberries are actually
21:52one of the best foods you can eat that
21:54is it's a super food blueberries and
21:56wild salmon are some of the best best
21:58foods you can eat and nobody says that
22:00wild salmon is bad for you nobody says
22:02blueberries are bad for you they're just
22:04they're really really good for you and
22:06they said it's got all sorts of
22:07chemicals and good stuff in it so I said
22:11okay if it's that good for you I'm going
22:14to get me some
22:16blueberries go to the grocery
22:18store they didn't have any blueberries
22:20they were
22:21out I go I grumbles like let's go up the
22:25next day to buy
22:27blueberries they had
22:29blueberries what do we know about the
22:31price of the
22:32blueberries it went up what happened to
22:35the supply of the
22:39blueberries
22:41nothing what nothing because what did we
22:45change what did we do when we made
22:48Andy's third mistake what is it supply
22:53curve so let's say the price of
22:55blueberries went from a dollar a
22:56container to $10 a container
22:58did they always want $10 a
23:01container yes they always wanted it
23:04right the supply curve did not
23:08change what
23:11changed the demand curve for blueberries
23:15changed Supply they always wion at $10
23:18they always won $1,000 don't if you
23:20offer them $1,000 per container they'll
23:23fill up your
23:25truck right but most people won't pay
23:28$10,000 per container so that's so it's
23:32where our supply curve meets the demand
23:34curve that tells you the quantity Supply
23:37and the quantity demanded and the price
23:39supplied and the price
23:41demanded but it's only where they meet
23:43it's where they
23:52meet
23:55now I was teaching this class once
23:59it was Friday and I was teaching this
24:01supply and demand curve on Friday and I
24:02asked somebody said hey would would who
24:05wants to pretend like they're making
24:07blueberry muffins I got a student he
24:09says I'll do it I okay so I said if I
24:13give you a dollar each how many would
24:14you bring in Monday he says 20 okay I
24:19said I give you $5 each how many would
24:21you bring in Monday he
24:22says as me as I can't I said no really
24:25how many would you bring in you're
24:26you're qualified you how many would you
24:28bring and he says2 200 I said if I gave
24:32you $10 each for every blueberry muffin
24:34you brought in Monday how many would you
24:36bring in he
24:38says I'd fill the whole front room with
24:41it I go okay see so his desire changed
24:45as we raised the price didn't it it's
24:47the supply curve this really
24:50happened that was Friday
24:54Monday I started class and he wasn't
24:57there I'm going strange he's always been
24:59in class then he shows up with a cart of
25:02blueberry muff really happen no no so he
25:05has a cart of blueberry
25:07muffins he walks in and brings them up
25:09to the front and I'm
25:12like okay it's he's making a joke he's
25:16gonna give blueberry muffins to
25:17everybody he's got something going on
25:19here I'll bite it sounds fun right no no
25:23no then comes his buddy behind him with
25:25a cart of blueberry muffins now getting
25:28a little concerned right behind him
25:31comes another friend with a cart full of
25:33blueberry muffins they lined the entire
25:37front of my class with blueberry
25:42muffins I'm like
25:45going am I being punked is there a
25:48camera somebody messing with me and he
25:51says Nope you said you would give me $10
25:55for every blueberry muffin I made and I
25:58said I would fill up your front with 10
26:01with blueberry front of the classroom
26:02with blueberry muffins here's your
26:05blueberry muffins give me
26:08$10 it really
26:10happened and I'm like
26:13going
26:16you're you're messing with me he says
26:19that's what you said you give me $10 for
26:22every blueberry muffin I made I said it
26:26was an example I'm not going to give you
26:27$10 for every blueberry muffin you made
26:29he says you said you would keep your
26:32promise I said it was an example he says
26:36I said I'm not giving him any money for
26:38any of your blueberry muffins he says
26:39then I'm gonna go tell your boss I said
26:42you go you go tell my boss I I'm not
26:45doing I'm not gonna pay you a million
26:48dollars for whatever you you did on that
26:50that that's just that's just crazy so he
26:52walks out and then my boss so I taught
26:56the rest of the class with these
26:57blueberry muffins just all over the
26:58front I was like off you know I'm like
27:02because every time I looked it there's a
27:03blueberry Muffet like everywhere so
27:04finally I uh T taught the class and then
27:07after class was over my boss was
27:09standing outside my my
27:12classroom and she says Andy tell me a
27:18story I'm like
27:20going here this dude crazy dude brought
27:23in all these blueberry muffins cuz he
27:24thought I was giving $1100 for each of
27:26them and my boss
27:28says from now on will you make sure that
27:31every class knows that all the stuff you
27:34say are
27:36examples I said done I'm gonna make sure
27:40that everybody knows that I'm not paying
27:41$100 for blueberry muffins and to that
27:44to this day I always make sure that
27:46nobody thinks I'm going to get them
27:47blueberry muffins and so then a bunch of
27:49of my boss's crew came in and took the
27:51blueberry muffins and you say what
27:53happened to those blueberry muffins I
27:55don't know I don't want to know I just
27:58said huh and then he came back to class
28:00the next Tuesday uh the next day and
28:02everything was fine he didn't say
28:03anything I don't know what they did with
28:05his blueberry monins or anything so this
28:08is an example right we're all I'm not
28:11going to pay $100 for this really happen
28:14there's some teachers who call me the
28:16blueberry muffin teacher it's like shut
28:19up I've heard that joke before well
28:21blueberry muffin going blueberries shut
28:24up so anyway this happened
28:38now let's
28:40pretend I have I'm selling and these
28:44magical blueberry muffins for $100
28:50each okay and my blueberry muffins are
28:54magical and I've developed a blueberry
28:57muffin that you eat
28:59it scientifically
29:02proven you will never ever get
29:07cancer period it's been scientifically
29:10proven all everybody agrees they said
29:12you eat one of these
29:14things you will never get
29:16cancer and I'll give you uh I'll put up
29:19I have a bond uh with the bank that says
29:22that I'll put up a million dollars if
29:24you ever get cancer after anyone my
29:26blueberry muffins and the bank controls
29:27the money
29:28I don't I'm selling these for $100
29:31each and I'm the only one who has these
29:35magical blueberry muffins nobody else
29:37has Andy's magical blueberry muffins
29:39that makes me a monopoly doesn't it I'm
29:42gonna sell them for $100 each kind of
29:44makes me a little bit of a bully but
29:45$100 to never get
29:48cancer isn't such a
29:50bully so how many would you buy so
29:53normally you'd say Andy I'd never buy a
29:55$100 blueberry nothing from you but if I
29:58had these things scientifically proven
30:00otherwise you get a million dollars or
30:03your estate gets a million dollars or
30:04whatever that says that you won't get
30:09cancer if you eat one of my blueberry
30:13muffins how many would you
30:18buy I bet I'd sell out because I know if
30:21somebody came to to me and I knew for
30:24for absolutely
30:26sure that they never get cancer with
30:29these things I wouldn't buy just one I'd
30:31buy one for my wife my kids my
30:35grandparents they're dead but i' still
30:37buy one I buy one for everybody my
30:40friends is $100 worth having a friend
30:42live and never die from cancer
30:45absolutely I buy gazillion of these
30:48things right they would sell out what
30:51happened to the supply of blueberry
30:53muffins of Andy's magical blueberry
30:56muffins I ran out what happened to
30:59Supply
31:02nothing what happened to the demand
31:05curve the demand curve
31:09changed yeah now you do know there's no
31:12such thing as Andy's magical blueberry
31:15Ms right they don't exist but I'm very
31:19honest I don't
31:21lie I don't lie so you know there's no
31:25such thing as Andy's magical blueberry
31:27muffins
31:28but at the same time you know that I
31:30don't lie so you're
31:33saying well what could be going
31:37on well actually I tell the
31:41truth
31:43because if you eat one of my blueberry
31:47muffins you will die instantly not from
31:50cancer they're just poison right so you
31:53even lick one of these things you're
31:54going to go boom you're going to die I
31:57promised you said you will never get
31:59cancer and you won't ever get cancer cuz
32:01it takes you a while to get cancer but
32:03you lick one of these things and you're
32:05dead instantly see I told you I tell the
32:08truth so you eat one of my blueberry
32:10muffins you will never get cancer oh
32:12you're just you're totally safe you're
32:15never gonna get cancer because you're
32:16dead before you can get the
32:20cancer Satan told the truth be careful
32:23about people tell the truth right so now
32:26I want to sell these for $100 each how
32:28many are you gonna buy well none I'm GNA
32:31sell them for $5 each how many are you
32:33gonna buy none I'm gonna F sell them for
32:37five cents each how many are you gonna
32:39buy somebody in the classroom would say
32:42I'll buy one you know what they're going
32:44to do they're gonna buy one and they're
32:47going to feed it to the neighbor's dog
32:48that barks all night long you know what
32:51I'm talking
32:54about Good bark isn't it I scare my dog
32:57a lot of times with my dog Mark right
32:59and so the dogs go hey puppy aaby puppy
33:05goes right so maybe somebody would buy
33:09my blueberry muffins but that's below my
33:11supply curve and then I'm going to go
33:13out of business and look at
33:19something wow veryy crazy
33:25stuff there's the neighbor dog
33:34yeah
33:35okay now that was
33:40microeconomics we're gonna now talk
33:42about
33:45macroeconomics which is very different
33:47they're both based on supply and demand
33:50curves but macro talks about the supply
33:53and demand curve of money so we talked
33:55about the supply and demand curve for
33:57pizzas
33:58supplying demand curve for blueberries
34:01blueberry muffins now we're going to
34:04talk about the supply and demand curve
34:06for money that's what monetary policy
34:09is so so sorry that's what
34:12macroeconomics
34:13is so we had a president of the United
34:16States his name was
34:19LBJ middle name is Baines Lindon Baines
34:23Johnson now
34:26LBJ was really weird I mean he was
34:30really really weird right he did all
34:33sorts of strange things so he had a car
34:36that was a
34:37boat so what he used to do so it turned
34:41into a boat when it gets in the water
34:42right so he would invite people to go
34:45for a ride around his
34:47Ranch and then as he's driving he would
34:50get close to a lake or a river he would
34:53start to tell people in his car about
34:55his Suicidal Thoughts
34:58and saying that life isn't worth living
35:00anymore and he would start to drive his
35:01car faster and faster and faster and
35:06then he says I can't take it anymore and
35:08he would turn and drive into the lake or
35:12the river and people are like what we're
35:15gonna die we're gonna die and then the
35:18car goes it's a boat to has a little
35:21propeller in the back and then he laughs
35:22at you and he thinks that that was
35:24really funny thing to do to you
35:29anyway he was really really strange so
35:33if he didn't like you and you were on
35:35his staff and you had to give him a a
35:38briefing or something he would wait till
35:40he had to go to the bathroom and then he
35:41would ask you to go to the bathroom with
35:43him and give him the briefing while he's
35:45going to B I mean he was
35:48like now he's strange but he's
35:51also consistently ranked as one of the
35:5310 best presidents we've ever
35:56had I mean mean whatever chart all
35:59everybody say he's done some stuff that
36:01has changed your life he he directly
36:05affects your life he's been dead
36:07for 40 years something like that 50
36:10years and yet he's done things that have
36:13changed your life that's T he has
36:15touched your life in some ways that you
36:18will never know about but I'll show you
36:20ways and then you're going to go what to
36:23do so he was really really smart really
36:25really weird he did a lot of really
36:28really good things but he made one
36:32mistake remember can smart people make
36:34big
36:35mistakes he
36:37did so he became president after our the
36:41president before him John F Kennedy was
36:44assassinated so JFK gets assassinated
36:47and then he becomes by the way Johnson
36:49no relation to this Johnson don't
36:53worry so
36:55Baines he decided to increase our
36:59involvement in the Vietnam
37:01War so at the time it was just a little
37:04Skirmish we didn't have very many people
37:06over there he says you know
37:08what we need to really stop communism
37:12and we need to go into
37:13Vietnam and kill the Communists and make
37:16it so that everybody's uh democracy just
37:19like the United States now let's think
37:21about a
37:22war are Wars
37:25free no they're very expensive they're
37:29really really really expensive because
37:32you have airplanes and tanks and people
37:35and what happens to airplanes tanks and
37:36people during war they blow up right so
37:39you have to replace the tanks of the
37:41airplanes which are expensive or the
37:44people you either bury them or you fix
37:45them which fixing a person can get
37:49really
37:50expensive so he says we're going to go
37:52to war in Vietnam and he did he he
37:54increased the war in Vietnam that was
37:56his big biggest mistake he ever
37:58remain so people said well how are you
38:01going to pay for it Mr Baines Mr Johnson
38:05President Johnson wa President Johnson
38:08it's got a nice ring to I like this that
38:11President
38:13Johnson so he says how are you gonna pay
38:15for it he says well I'll tell you what
38:17I'm not gonna do
38:18first he says not GNA raise
38:22taxes so usually that's how you pay for
38:25a war you just tax everybody and use
38:27that money go forward he says not going
38:29to raise
38:31taxes so traditionally that's how all
38:35Wards are paid for they raise taxes
38:37because it's really easy to figure out
38:39he says Nope and he didn't really raise
38:41taxes they went up a little bit not much
38:44he did not appreciably raise the
38:46taxes that's pretty crazy
38:49well we had the war in Iraq the war in
38:53Afghanistan and we've been to Syria and
38:56we've got all these things going on uh
39:00and we didn't increase your taxes after
39:03911 your taxes didn't go up we went to
39:06war in Afghanistan in Iraq for a long
39:09time I me these were long time very
39:12expensive we didn't we didn't raise your
39:15taxes it was easy we sold
39:18bonds
39:19debt so remember that chart I showed you
39:22where it showed our national debt it was
39:25starting to go down and then we had
39:28911 and we said oh let's invade
39:31Afghanistan let's invade Iraq and starts
39:34to go back up again because that's how
39:36we paid for the war so if we took if all
39:39of a sudden we we go to war and we start
39:41raising people's taxes everybody's going
39:43to go don't raise my taxes we say oh
39:46it'll just be national debt and you
39:48don't even really owe it and people
39:51say I like that sure so we really don't
39:55have to pay no no no it's it's good it's
39:58good well LBJ said not get increased
40:02debt he did a little bit nothing much
40:06right your debt didn't really go crazy
40:07under right now you saying well how do
40:10you do this you don't increase taxes you
40:12don't increase debt how can you pay for
40:15an expensive War oh stop spending money
40:18on other
40:19things that's there's usually a term for
40:21that's called social
40:23spending right stop spending money on
40:26education
40:27stop spending money on schools on
40:29library on medicines let's take all that
40:32money that we would have
40:34saved and put it towards the war and
40:37that's a pretty common thing and that's
40:39partially how the United States we we
40:42used a little bit of that to fund the
40:44war in Afghanistan the war in
40:47Iraq LBJ said no to that
40:52too
40:54LBJ said the problem with that is social
41:00spending usually helps the poor people
41:03more than the rich
41:05people school lunch programs does Bill
41:07Gates kid need school lunch programs
41:11no uh Parks city parks does Bill Gates
41:14kid walk through the city park I don't
41:17know I doubt
41:19it
41:21libraries do you think Bill Gates has
41:23his kid taken to the Belleview library
41:26to do research on no he probably has a
41:29better library in the basement of his
41:31house than they do in Bel right or has a
41:34staff member can go pick it up or
41:36something like that right so social
41:38spending usually helps the poor people
41:41that's just what it
41:42does
41:44LBJ was the first person to come up with
41:47an idea of a
41:50war he says let's have a war on
41:52something so right now we have the war
41:54on
41:54terrorism right everybody's heard of the
41:56war on terrorism
41:57before that we had the War on
42:00Drugs yeah before that we had we've had
42:04Wars and wars and Wars they're quot Wars
42:06but they're not real wars LBJ came up
42:08with an idea of a war on an
42:11idea and his idea on a war was he said
42:15that poverty is a form of
42:18terrorism if you've ever been
42:21poor you know what I mean or what he
42:23means he said poverty is is is Terrorism
42:28so he initiated something called the war
42:30on
42:32poverty so instead of decreasing social
42:35spending he actually increased social
42:40spending so everybody
42:43here is going to school at Belleview
42:46College which is really bellw Community
42:50College in
42:521965
42:5364 we didn't have community colleges
42:57so you had two choices you can either go
42:59to the udub or go to a private school
43:03now what do you know about private
43:05schools they're
43:07expensive right usually we'll talk more
43:10about that there's ways to make them
43:11cheap but they're they're not
43:13free or you can go to the
43:16udub it still isn't free it's still
43:19pretty darn
43:21expensive so LBJ said let's make
43:26something called community
43:28colleges let's make colleges so if
43:31somebody doesn't have the money to go to
43:33Havard or Yale or Princeton or any place
43:37like that and they really they even
43:39don't have the money to go to the udub
43:40because udub is not
43:43free let's make up a group of community
43:47colleges to help people get their first
43:50two
43:51years out of the way then they can go to
43:54one of these schools and by then maybe
43:56they have if they they're good they had
43:58got a good GPA they can get some
44:00scholarships or they'll find a ways to
44:02they'll be more successful it's just and
44:05he created the community college system
44:07which you are now part of so see
44:12he touched your
44:15life wow he did a bunch of other really
44:18wonderful things right um that's why all
44:21the the lists put him in the top 10 best
44:25presidents list because he did
44:27these wonderful thing oh and we went to
44:30the
44:30moon yeah he he was really amazing but
44:34boy he goofed up on that Vietnam
44:37thing now think about
44:40this he was honest was kind of a
44:43jerk nobody he wasn't a warm and fuzzy
44:47guy uh but he was honest he kept his
44:51promise and he says no taxes no debt and
44:57increased social SP spending and created
45:00the community college system across the
45:02United States and he did so many other
45:05things that we'll learn more about him
45:06later on uh on deals with employment law
45:09and did all sorts of Great
45:11Stuff how could he do this how could he
45:14no taxes no debt and War on poverty all
45:16at the same time while going to the Moon
45:18which the moon was not a cheap thing how
45:20do you do all
45:22that I'll tell you later thanks for
45:25coming bye bye

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