Economic systems (Not kid approved).mp4

Economic systems (Not kid approved).mp4

an economic system is the way that a
nation organizes, manages, controls the factors of production so that wealth or
materials that get produced within the the nation are somehow
distributed to members of that population now, the method that gets used to manage
these factors of production and determine who gets what, is really what
defines the different economic system so two ends of a spectrum: we can think
about command economies versus a market economy. now, a command economy is an economic system where the government manages all or in some cases
most of the resources within the nation and oversees the types of industries
that are going to operate in a market economy, government is not
involved the resources within that nation get
distributed/shared within society based on this notion of supply and
demand. Command economies let’s look a bit closer two types: first type is communism – under communism the government owns all of the factors of production and makes all the decisions on how
resources within that nation will be used socialism could be thought of as a
watered down version of communism in many ways. Government controls the
critical industries but it does allow individual freedom from some individual
right to own property to start off small businesses that the government doesn’t
consider to be critical to the overall economy. Communism: how does it work? well we could think
about this idea of an entrepreneur coming up with an idea. In our case
opening up a coffee shop, purchasing some land, getting a business up and running well, in communism that wouldn’t happen why? government controls all of the
factors of production, makes all the decisions about which industries are
going to operate. So the government will determine how the factors of production
get utilized so who gets capital? how does that
capital get used to build certain industries? government, under
communism, owns all the resources and makes
decisions that hopefully are going to benefit the most people within society no individual ownership. it’s about
what’s good for all of society not necessarily what’s good for the
individual. so an example: suppose its middle of winter and you’ve got a tree
out in your backyard and you need firewood so you go out back, decide to chop up
the tree and have some firewood for your home. under communism that would be considered illegal. it’s
not your tree to chop down, it’s the tree of the people you just happen to be living
in that house which by the way also is owned by the people. under communism the government would determine how many
farmers there needs to be, how many employees are
needed to go work in a factory, who is going to be a teacher. everyone
needs to go to school so governments could oversee and provide all that too. the
government’s controlling one of the factors of production called Labor. what
happens to the output once industry is made the products it needs to make, once
all the farmers have grown their food, the students have been educated, and so
forth? well I suppose those boxes on the screen
are representative of the output of the economic system. under communism every
member in society would be entitled to an equal share of what was produced
within that economic system over the course of a year or a specific period everyone gets the same amount the second example of a command economy
is socialism. remember, socialism – the government controls critical industries
but individuals are allowed to run noncritical businesses. so in our case
government has determined that a certain factory will get built. making a product that people need will
provide jobs to citizens. effectively they’re employees of the government. An
employee gets hired to be a teacher, a certain number of people get hired to
work on the farm one individual decides they don’t want
to do that they’ve got a musical talent and they
choose to use that talent to earn a living so what happens in socialism is the
members of society get an equal share of what society produced however individuals who do choose to pursue
businesses that are considered to be non critical to the overall economic system
are welcome to pursue their musical talent or to pursue this other type of
smaller business and sell their talents to the rest of the population. a market
economy: market economies are the other end of the spectrum. in the market economy
government is not involved the market is the mechanism of the
exchange of goods and services and resources are distributed by this
concept of supply and demand there’s private ownership of everything so in our case the entrepreneur has an
idea they want to get a coffee shop up and
running. They need to be able to access capital, they need to be able to access labor, they need to be able to access natural
resources and everything has a price as long as the entrepreneur is able to
raise the the capital in order to borrow money, pay the interest back, hire the
labor to do the work, purchase the natural resources required
to build the coffee shop and to keep it running they’re more than welcome to do that. in
a market economy it’s all about private ownership. you
have a tree in your backyard and you decide you want to go out and chop the tree
down for firewood you’re more than welcome to do that. in
fact you’re more than welcome to chop all the trees down on your property and do
whatever you want to do with it. in a market economy there is a price for everything suppose the farmer wants to send his
daughter to school to get an education well there’s a price for that education.
how’s he going to afford to do this? well he produces product. so in our case our
farmer produces milk and it’s got a price. the farmer takes the
milk to market and tries to make it available for sale to see who would be willing to buy it.
everyone’s got freedom some people are going to say no, some
people are going to say yes the farmer’s daughter gets to go to school now why would the farmer want to send
his daughter to school in the first place? what is the point of education in a
market economy? opportunity. education will create an individual
that has more skills or knowledge, all the credentials that an employer is looking
for. they’re then more likely to command a higher wage and generate more money in
the long run that they can in turn purchase more goods vs. an individual who
didn’t get education now how is the output in a market economy
allocated in society? those who produce, those who add value, those who have
skills that are in short supply get the benefits of what the market
economy has produced those who are unable to work, those who
lack the education don’t benefit as much under a market economy this produces the haves and the have-nots. now advantages of communism vs. market economies: in communism, the wealth
of the nation – what what’s been produced from economic
system is shared equally amongst all members of society. now, in market
economies, what’s the advantage? we get what we deserve. this notion of a student who studies very very hard for an exam vs. the
student who didn’t study at all and barely attended class disadvantages of communism and market
economies: under communism everyone gets the same, regardless of how
much they contributed, regardless of how hard they work,
regardless of how smart they are it’s all about equality. so in this case,
the student who didn’t do any work got a B, but so did the student who worked
very hard. there is very little motivation. in market economies the big downside is
potential for greed and all the negative things that can happen along with that greed is there a way to blend the best parts
of each of these systems? This is called a mixed economy a mixed economy is an economic system
that features characteristics of both command and market economies what’s interesting is most of the
economies in the world are in fact mixed economic systems. they have elements of
the market economy but they also have elements of a command economy where
government gets involved this even includes the united states and
canada. two economic systems that we tend to view as being very capitalistic.
canada has a mixed economy In what ways is Canada’s economy like a
command economy? well government manages and regulates
the businesses. There’s a whole variety of rules and regulations and laws that
various levels of government within Canada impose upon business it keeps our water clean, it prevents
people from going out and chopping down all the trees and ruining a wildlife
habitat and ensures that the products that we purchase are safe so all these rules are imposed by
government in order to look after the best interests of all of society government is also the provider of
essential services in canada and in many mixed economic systems. government builds
roads, provides the police force, hospital, prints the money – can you imagine a private
corporation in charge of printing nation’s money now what ways is Canada’s economy like a
market economy? well if mom and dad have enough money to
send the student to school and they work hard and they get a good education hopefully they get a job that allows
them to make more money, they can buy a fancier your car than those who haven’t
worked as hard or we have been fortunate enough to go to school and they can live
in and purchase nicer homes. people who are unable to go to school – for a variety of
reasons – and people who don’t work hard may not get a job that they like, may not be able to afford fancy cars, and
may not have comfortable or luxurious living conditions so to review: we could view economic systems as being two ends of a spectrum. so the high
government control into the spectrum command economies. two examples: communism
and socialism opposite end of the spectrum where there’s low
government control: the market economy somewhere in the middle, a mixed economy

100 thoughts on “Economic systems (Not kid approved).mp4





  5. "You get what you deserve" seriously? Some people work ridiculously hard but will never be able to afford much. Some people don't work much at all, yet cheat their way into wealth or are born with it. This basically shows that the capitalistic system is not the answer, I personally believe that a mixed economy is the best solution as it does not influence the individualism and the freedom of the people too much.

  6. Well here in America, our money is printed by a private bank. the Federal Reserve. Don't let the name fool you.

  7. These systems are based on consumption… and infinite-growth (on a finite planet), and cutthroat competition. We see the results. Fifty years ago this was sustainable. Not today. The resource based economy seems to be the only way we can take care of people and the environment. I'm hoping that people will be smart enough to head in that direction. Not holding my breath. watch?v=4mkRFCtl2MI

  8. Do you really think they don't know about those words or something? I'm sick of the bias people place upon little things such as that. It's funny. It's youthful. It still teaches. And the only thing that it really hurts is the minds of psychorrigid people.

  9. What this 'mixed economy' really means is keeping the best and worst of capitalism while also only utilizing the worst in socialism and completely rejecting the best in socialism. The good (libertarian) aspects of capitalism is free markets,individualism, and voluntary exchange. The bad (authoritarian) aspects of capitalism is hierarchical work oragnization and wage labor. The good aspects of socialism is worker's ownership and control. The bad aspects of socialism is state economic intervention

  10. State intervention brings nothing good about socialism into the economy. If we want to embrace the good aspects of socialism worker's should seize ownership and management of their workplace themselves completely independent of the state and do away with wage labor (bad aspect of capitalism). The good aspect of capitalism is the very fact that it often opposes state intervention and promotes voluntary free markets. This 'mixed economy' without the best of capitalism would be fascist corporatism

  11. Chirsguyish I think u shudder achuly watch the vid before u show ur class nd it was one word NOT for 11 year old it was for collage students which it would just make it a bit more less boring so next time u shud look at the vid first

  12. I created and posted this video and a few others to support the learning of my 1st semester college students. They seem to like them. If other educators and those interested in the topic find any value in them that's cool and I'm happy to share. The dialogue I care about happens in my classroom, so I don't generally visit this site to see what people thought. However; I do want to respond to a couple comments and will do so in seperate posts to get around the 500 character limit.

  13. Response #1 to Laughingblades: Pointing out that you think I am ignorant of communism is not helpful. For your feedback to be helpful I need you to tell me exactly where I have gone wrong and displayed ignorance. FYI. The video sets a theoretical framework where I contrast econoic systems along a spectrum. It helps my students begin to grasp a concept. In class we then discuss, debate and critique. I am not trying to explain all aspects of the theory. Why are you so emotional about this? WTF? 🙂

  14. Response #2 to Chrisguyish: I really, really, really recommend that you carefully preview anything you find on Youtube before showing it to your 11 yr old students. WTF is extremely tame compared to what's out there, so please be careful. FYI, I also would not show this to 11 yr olds so I understand and agree that I probably could have achieved my objective with a "Huh?" or "????". I'll be a bit cautious in the future. Thank you!

  15. Response #3 to MasterOfHamsters: Thank you! You totally get it! There are enough videos of boring "old guys" lecturing, so rather than posting a video of me just talking I tried to create something appealing to younger students, fun, and yet still helped to support some learning.
    Thanks again.

  16. yeah im the second student that hasn't studied at all and didn't attend lectures and am now having to listen to these weird youtube clips to try and understand economics..

  17. The ideology of communism as stated in the original communist manifesto distinguishes between a right to personal property ("acquiring property as the fruit of a man's own labor") and the desired abolition private property (acquired property though capital, the product of wage labor)

  18. Helped Me Out allot when i studied for my econ test the text book and the study guide was so confusing i couldn't grasp the lesson or subject so well but after the video i understood it perfectly thank you for the big help it was really useful allot of students can benefit allot from this vid and all other educational videos Mr Humberheff has put on ill definitely rate it 10 out of 10 and once again thank you so much for this vid was a huge help

  19. Claiming that certain things are worth more or less than market value is intrinsically flawed. If they are worth more than market value, then the market will adjust. Your assessment of their value simply means that you apply a different market value to them, and would be willing to make a greater sacrifice for them. If others agreed, this would raise the market price.

  20. I'm sure it was supposed to be a non-biased comparison.

    When you use words like 'government' and 'control' you indicate that the government is a 'they' and not the people. You also assume that people under a capitalistic society are able to keep control of their property, that some people are lazy (get what we deserve) and that motivation is somehow exclusive to money.
    Lastly the words/indentation describing the differences are 'Government + control' vs 'freedom + property + opportunity'.

  21. Communism is a class less, state less society. So there is no state under communism. There is a state under socialism, but that is called a workers state. Such a workers state is different from the typical state we see today. A workers state is a state run by workers.

    Communism does not give anyone the same salary. Communism gives people what they want. Capitalists say that people get lazy because of this, but I don't think so. The ruling class is the one who is lazy!

  22. Even mixed economies are still capitalist. The mixed market economy is mostly gone, because since the 80's right-wing ideologies rule politics. In Europe the railways, post-offices, the healthcare and other former state owned enterprises got privatized. Government regulation of the market is getting lower, compared to the years before the fall of stalinism

    Before 1990 you could speak of a mixed economy. Today onlyt northern Europe keeps a few elements of the old social market economy.

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  24. I laughed when he said can you imagine a private corporation printing the nation's money hahaha. Sir we have such a thing in the United States, and I'm sure Canada has one too, its called a central bank; a PRIVATE bank that can print as much money as it wants, loan it to the government with interests. How does the government pay this back you may say? Well i'll tell you through TAXATION!!!!!

  25. yes sir. most of the people are losing their money in penny stocks without much guidance. listen to me, One of my friend making tons of money from penny stocks with professional easy guidance. have a try now here –>

  26. The world needs a better system run by honest and rational people instead of the corrupt ones we currently have worldwide, if you want to see this to change to benefit yourself as well as everybody else don't hesitate to visit {~Truth Contest)~X C0M

  27. God damn! In a socialism and communism it is not the government itself who controls the economics, but the actualmajority of the population aka working class who controls the market through the government. Thats a big difference!

  28. Listen to Stefan Molyneux on Free Domain Radio to rationalize deeply on this and other topics. help spread philosophy and critical thinking!

  29. It is written in the communist manifesto, "Each according to his ability, to each according to his need." Thus, everybody does not get the exact same. Those who contribute more to society will get more than those who contribute less. Those who need more, i.e. the disabled, large families, elderly, will receive more than healthy, young individuals. With capitalism, it is not based around who works the hardest as often portrayed. The owner of a business may revive a salary of over 500% more than that of the worker. But does that mean the worker producing the goods does not work as hard as the owner? I am no communist, but this is a inaccurate and simplistic portrayal of both systems.  Read up on market socialism (not socialist market economy), that to me seems the most fair 

  30. So in a communist society, the government picks who gets to do what? As in who becomes a teacher, who becomes a farmer, who becomes a doctor etc?

  31. 3:20 Regarding chopping down trees. Germany is not a communist country, but you can not chop down trees as they have strict environmental laws.

    Bad example!
    You make it sound like capitalist countries have no laws or something.

    You missed the biggest difference between communism and capitalism.
    With Communism, there is no homeless as everyone is cared for and there is no unemployment — everyone has a job.

    With capitalism, you have tons of unemployed and homeless. People are treated as disposable trash. Jobs are given to complete strangers in foreign countries who will work for the lowest price.

  32. Socialism was rarely defined as state ownership of critical businesses. Marxists and anarchists (two primary socialist groups) defined socialism as worker ownership over real capital (no wage labor). And communism was, as Marx and Kropotkin defined it, was stateless. But goods ware distributed according to need.

  33. Let's not rule out the government failures that occur in a "mixed" (i.e. SOCIALIST according to the OP's own definition) economy.

    Regulations are aready too high, and even impose far GREATER social costs than any so-called "market failures."

  34. sorry, but you fail!
    1communism have nothing to do with government – communism is economic system in which workers own collectively the means of production, make decisions, do not use money and distribute the production among the population according to the principle "from each according to his abilities to each according to his needs" marxism-leninism is not communism, it is just one of the two theories about reaching the communist society – according to them, the proletariat must use the force of the government("dictatorship of the proletariat") to redistribute the wealth among all and to reach communism.Sadly this idea is stupid and always fails. There is another theory, the anarchist one, in which people remove  the government with the means of social revolution and colectivise the means of production, establishing direct workers self-management, etc, etc… Please, use internet for research before making videos on serious subjects like this.
    2. Sociaism – just facepalm! You fail so bad, that I wanted to cry!
    3. Market economy – "everyone gets that he deserves" – are you sure? Do Rothscilds deserve billions of dollars?No! because they didn work for them, they hired millions of people to work for them and collected their surplus value. The only economy where everyone gets exactly what he deserves is called "collectivism" or "anarchocollectivism" – where the workers own the means of production and are payed according to their labor, nothing more, nothing less.
    4.And, no, under "state communism people dont get the same grades in school, and the government doesent decide if the individual will become teacher for example… individuals do decide what proffession to work, and they own their homes,(but no more than one home or house per person). And there IS a motivation – to work for the government, cause you can steal very much and very easy.Trust me, I lived under "state communism", we had grades in school etc, etc….but the "communist" party ruled everything….

  35. 12:11 private corporations DO print money hahahahahaha 'can you imagine a private corporation in charge of printing a nation's money' LMAO I hope you was being sarcastic otherwise you're a lost soul

  36. Mr. Humberjeff,

       PLEASE, PLEASE take out the squirrel's "WTF" after the trees have been felled so that I can show otherwise very good vid to my middle school social studies class. 

  37. I love the visual way you share econimcs information! You have broken down complex systems into something that someone of any age/exprience can understand. As a 6th grade teacher, I would love to use this in my classroom, but cannot show it because of what the beaver is thinking in the Market Economy section. Would you be willing to change his thoughts into another acronym… perhaps more age-appropriate for 11 and 12-year olds? My students and I would REALLY appreciate it! 🙂

  38. I made it to start a discussion with 20 year old college students. It wasn't made for kids that young, but I totally understand your point. Do you think we could tell them that the beaver is wondering, "Where's The Forest"? 🙂  Just kidding…

    The sad thing is that by 11 or 12 yrs they already know, but no point in us reinforcing it. I'll try to post a clean version. I honestly didn't realize that kids that young were learning this stuff.

    Thanks for letting me know.

  39. You got socialism right but in communism the people are organized in voluntary communes and work there to benefit all members of this commune and just distribute it. The state is absent.

  40. Why is socialism considered a command economy since there is still some business allowed would it not be just a mixed economy that means very heavily towards command?

  41. Why do people compare Communism/Socialism to a classroom? Economics and Education are different! If Capitalism and Education were treated the same way, Rules would be in place to ensure a select few get the highest grades, while everyone else is given the lowest grades, wether they deserve it or not.

  42. Actually, communism is not a economic system, it is the dictatorship of socialism in a one party state. There is also the marxist communism concept of a future stateless society where everything is shared. This video also fails to mention anarchist socialism, where the means of production are owned by the workers directly.

  43. Mr. Short,    I'm the teacher who wanted you to provide a middle school-friendly version of this video.  Thanks so much for doing this.  Here in the States, the Common Core introduces basic economic concepts in grade 6 (11 year-olds).   Thanks again for re-making the vid….  Last year,  I found out the hard way that the original version was not kid-friendly…..   I did manage to regain control of the classroom, however….     Best, A Public School Teacher in Georgia

  44. Yes I can imagine a private corporation printing the nation's currency (not money) because that's exactly what happens in any country that has a Central Bank in it!

  45. Teaching socialism is like teaching creationism. Since it's just fictional, it's more like art or philosophy than real world economics or science. It really shouldn't be taught in an economics class.

  46. Jeff, the fist 10 minutes of this video are very good. But after that your socialist views take over. Greed is not a disadvantage of a free market. It is a human property that is always present no matter what economic system is attempted.
    The important point that you missed is that a market economy channels people's greed into serving the needs of other people. In a socialist economy, greed always creates corruption because of socialism's use of centralized power.

    Other things the video conveniently forgets to mention:
    *) The total amount of national production is always less under socialism than in a market economy. So there is less to go around.
    *) Under socialism, people all get an equal share but there is usually a shortage of everything and occasionally a wasted surplus. Some years you get too much food and in others you starve.
    *) Socialism always collapses in the end and market economies never do.

  47. The education and exam system really didn't make any sense to me, and I don't think it applies to the economic concepts here to get a "B" in both systems.

  48. This is dumb. His pro and con system is so off. I had to stop watching this video due to the fact that it was based off of his feeling and not real facts.

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