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Monetary and Fiscal Policy: Crash Course Government and Politics #48

4348 ratings | 416695 views
Today, Craig is going to dive into the controversy of monetary and fiscal policy. Monetary and fiscal policy are ways the government, and most notably the Federal Reserve, influences the economy - for better or for worse. So we’re going to start by looking at monetary policy, and specifically how the Federal Reserve uses interests rates as a means of controlling (or at least attempting to control) inflation. We’ll then move onto fiscal policy - that is the government’s use of taxation to raise and spend money. It’s all, well, pretty controversial, but as it seems Americans hate taxes the most, monetary policy is most often used - meaning that the Federal Reserve plays a hugely significant role in steering the U.S. economy. Produced in collaboration with PBS Digital Studios: http://youtube.com/pbsdigitalstudios Support is provided by Voqal: http://www.voqal.org All attributed images are licensed under Creative Commons by Attribution 4.0 https://creativecommons.org/licenses/... Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashC... Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
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Text Comments (580)
Hunni Sem (26 days ago)
The Beginning hyped me up too much XD
Marissa Olivia (1 month ago)
when u live in a different country...
Bitter Cider (2 months ago)
craig please I want to go to sleep its 2:30 am and I have to take the test in 6 hours please craig I cant do the confetti poppers right now pleas e I ne ed sl eep cr aig plea se
Elianna (2 months ago)
Shes tommorow!!
Angelyn Pham (2 months ago)
ap gov exam tmrw ;-;
Avery Smedley (2 months ago)
same... good luck
KALI'S VLOGSS (2 months ago)
EveryBodySucks100 (3 months ago)
Audit the FED
Elijah Ford (3 months ago)
Put taxes on the rich.
Elijah Ford (3 months ago)
We’ve got to have, money.
Vinduli Minara (3 months ago)
I wanna get fiscal 😂😂😂😂😅😅
Lily Iotua (3 months ago)
It really helps as I gain more points on fiscal policy and monetary policy to the economy. Thanks again
Zhana Sirbiladze (3 months ago)
Why is it mandatory to act over excited and scream/talk super fast at Crashcourse videos?
Carmen Mencar (6 months ago)
Sad I didn't know about this series for so long.
Thinking Ahead (7 months ago)
What an idiot. This is a very stupid way to learn such important things..
Daniel Sauceda (7 months ago)
im goonna suck him
Asher Hernandez (8 months ago)
You're a bad teacher.
Summondadrummin (8 months ago)
Watch: The Money Masters, Money As Debt, The Money Fix. Look into Public Banking, Cooperative Banking, Monetary Reform. Look up the talks of Richard Werner and Bernard Litaer
Summondadrummin (8 months ago)
However you slice it the Banksters create the currency and define it as an interest bearing debt and allocate made up numbers only where they want. The currency is only made valuable by people working. Without people working it would be worth nothing so its value is entirely derived from Labor but its control and creation is entirely derived from Finance. This can go on because people are gullible or able to be bought off and have been so for a long time this is the way the Fed likes it. Watch the Talks of Richard Werner for details on how Banks create the money supply.
Farhan Ahmad (9 months ago)
Ironically the video shows Donald at 6:00 😂😂😂
Justin Dean (10 months ago)
Low interest rates directly lead to inflation. It’s 1 to 1. Idk where he got that information from.
bsktblmasta31 (10 months ago)
Mandatory spending is only mandatory until Congress updates the law, which desperately needs to happen.
bsktblmasta31 (10 months ago)
what year was that $8T debt clock from? Over $21T by 2018.
SeanA118 (10 months ago)
Hi people who have to watch these videos for homework!
cortex383 (10 months ago)
Assignment due tomorrow wish me luck lool
Vas Alexander (10 months ago)
You are not funny but silly stick on the things you know. Ok
TRED (10 months ago)
Uncle Scrooge Mcduck!!!! Whooo--Hooo!!!
Mark Sze Chai Chan (11 months ago)
Just cut spending on defense
saima arshad (1 year ago)
Dude you really need to slow down a bit. I have to either watch the video at a slower speed which is annoying and sounds all funny or I have to keep going back to hear what you said. Other than that the overall video is really good. Explains exactly what i needed to know.
Ankur Kale (1 year ago)
what will happen to the exchange rate if a nation pursue independent monetary and fiscal policies?
Miranda Bowen (1 year ago)
He makes learning about our government a fun thing
Warcraft Devil (1 year ago)
Thanks I needed this for my test tom
CodeKillerz (1 year ago)
I’m watching this after the government shutdown. How fitting
Luxmi Tushamar (1 year ago)
why I don't get teachers likes you ,😢😢
World Recipe of Life (1 year ago)
what about mandatory spending on government and bureaucratic salaries?? how much is that in relation to the other spending?
julia caroline (1 year ago)
How to cram for my ap test 101
Aku (1 year ago)
Death to the penny
Hi CrashCourse. Exchange rate of hard currency in black market sometime causes inflation if the government is overspending and etc. My question is, How can black Market be demolished?
Marcell G (2 years ago)
does he actually have any drink in his mug?
weallbfree (2 years ago)
So during a depression, does the money just disappear? How would you "decrease" the money supply without making all the banks give their currency back to the Fed?
ML V (2 years ago)
Where's John? Who is this guy?
Richman 4066 (2 years ago)
Video is buffering; Craig is now staring right into my soul
Richman 4066 (2 years ago)
Anyone else think something bad is going to happen to the economy now that trump is president?
WeirdWorld (2 years ago)
What ever happen to just ratio earnings, like a wealthy man should earn what 20 men earn, but now a wealthy man earns what 200,000 men earn.
Peter Guzman (2 years ago)
WeirdWorld sounds like communism
? (2 years ago)
Not to sound mean but craig's starter jokes are extremely awkward...
interiortruth (2 years ago)
Surprisingly, this is a lot more better than the crash course economics video which our teacher made us watch. Thanks!
Majoofi (2 years ago)
Talk about MMT
A Teacher's Journey (2 years ago)
Even with this help, i still am going to fail my Government and ECON. class. I hate government! So complicated.
Travis Taylor (2 years ago)
there he goes again encouraging communism and destroying the freedom of americans. Eagle abuse is real and a big problem. Communist #StandwithEagle #EagleAbuseAwarenessMonth
Abraham Chinye (2 years ago)
this is economics I swear
Zachary Falberg (2 years ago)
Social security will fall, not rise because people like them...
Prameet Aglave (2 years ago)
you are damn funny
Mrqueest (2 years ago)
so why do we need both monetary and fiscal policy in the economy?
Meeco Adnan (2 years ago)
Alex da Vinci (2 years ago)
Craig, were you bully in school a lot? Just asking.
Luna Sunshine (2 years ago)
I wanna get fiscal.
Luna Sunshine (2 years ago)
How does one get fiscal?
Bell Dupont Pérignon (2 years ago)
Looooved the intro! Haha
Walter Torres (2 years ago)
love the eagle
Ronalyn Caingcoy (2 years ago)
Wait. You`re so fast there talking. Anyway, I get a lot from you. Thanks.
Ben Hansen (2 years ago)
Noting could ever beat a moneyless sociaty. Why do people feel the need to use a monetary system to mediate social interaction? Even a debt based monetary system hinders our full societal potentiality. People seem to be stuck banging their head trying to make social development fit into archaic ideology. If we do not socially evolve we will not grow with the speed and flexibility that we are capable of, and I would argue that right now we can clearly see the stunted growth in our technological advancement due to our use of a monetary system. We need to evolve and develop into a moneyless sociaty. Of course this is contingent on living through biosphere destruction and mass extinction, so in reality we need to work to maintain a habitable planet and better our social relationships at the same time. We can do the right things but it will take courage.
Laurens Sipahelut (2 years ago)
First step: Vote Jill Stein to office.
Abhay Singhal (2 years ago)
This video is way too short to really explain the macroeconomic effects of MP and FP, do check out their econs series
Guadalupe Estrada (3 years ago)
If the defense concentrated their efforts on education then they could maintain their large share of funding without feeling guilty about it. Defend impoverished children attain a better education by keeping them out of gangs, drugs, and abusive parents, for example, and hopefully, they shall see the same privileges of a second chance I have been grateful to be born with. They have the money and skill to do it, don't they? And both liberals and conservative thinkers can maintain their idea of justice, authority, fairness, and protection from harm.
Oh yeah
孙明亮 (3 years ago)
Hey I got a question, what's the point to speed up or slow down an economy.
merdo merco (3 years ago)
u talk so fast damn
Jason Waite (3 years ago)
Crash Course, your REALLY pissing people off not telling the truth. The Fed is NEITHER Federal, nor a reserve!
TheFireflyGrave (3 years ago)
The Econ folks are making so many cameos you might have to start putting them in the credits as regular cast members.
Isabelle von Lockner (3 years ago)
I literally LMAO during every video, the host is so funny.
Carolina G (3 years ago)
I love this guy
drummerboy1119 (3 years ago)
I love you Craig
NickSheridanVids (3 years ago)
It's appropriate that most money is made of paper, because so is the fucking economy. Or some other witty college level remark.
RedLeader327 (3 years ago)
Ronald Reagan's toxic policies are why the US has been going to shit.
Arya Santoso (3 years ago)
demand side policies will always lead to inflation. stick to supply side policies
Maximilian (3 years ago)
I know Craig was sarcastic at the beginning of the video, but as I am writing my Master Thesis on fiscal policy I was actually looking forward to this topic! Gret job Craig! <Pulls Partypopper>
Gregor Mattedi (3 years ago)
Is this the last video of the series ?
If you want REAL analysis of monetary policy check out The Kieser Report with Max and Stacy on Russia Today. Or checkout Steve keen or Ross Ashcroft.
Visda58 (3 years ago)
All that cash stacked up on pallets in that warehouse.... that would be a work environment fraught with temptation. I bet there's some serious background checks required for that particular forklift position.
RonPaul Revered (3 years ago)
Where does the Federal Reserve get the capital to loan to governments? Oh! that's rights, they make it up out of thin air.
RonPaul Revered (3 years ago)
@Banter Board Surprisingly you and I have found common ground. :) 
Banter Board (3 years ago)
They do pull it out of thin air. What's worse is that they use the thin air money to create and fund wars.
Spencer Burns (3 years ago)
Spencer Burns (3 years ago)
I don't like you you punch egads that's un-American get out my country
A possible reason why we don't see too much inflation in the US despite so much money slushing around is because a lot of it is slushing around overseas (since the US is the world's reserve currency) and thus the harmful effects of inflation are less pronounced on US home soil... at least for now
Banter Board (3 years ago)
It will all come home to roost soon, my friend. America won't be able to get away with screwing over so many people in other countries for much longer.
476 Anno Domini (3 years ago)
*Libertarians* :Tell me another Joke.
Adam Borison (3 years ago)
Reaganomics is a joke, for those wondering.
Lady Catfish (3 years ago)
Social Security spending far exceeds military spending. And those small government folks (especially Libertarians) call for lower defense spending too.
Saraaa_Catherine (3 years ago)
Hey so these are super duper great and really interesting, as someone who is taking A Level Politics (I'm English btw) I was wondering if you could do UK Politics as well though. I know if you do do it my AS level will be long gone by that point but I still think it would be really interesting and beneficial because I want to go into Politics at Uni and Im sure there's other British people who would like to no more about UK politics who already watch this. These are really cool and super interesting though, will help even more next year when I do USA Politics :D
shy cake (3 years ago)
talk too fast
Dylan Collette (3 years ago)
is it me, or does he look like a younger Tom Mulcair?
Laharal Bob (3 years ago)
Just a thought here: since 2 new CC series are coming out (physics and philosophy) might we get a CC on international politics? As we had american history and 2 world history, I think international politics would enable people to broaden their views and put them into perspective. And instead of punching eagles Craig (if he is qualified for int. pol.) could punch many other types of birds ;) )
Petar Mihaylov (3 years ago)
After more than 6 years of 0 percent interest rates and 3 rounds of QE, you think the inflation would really be at 2 percent? Come on, Craig. The reason it hasn't all been blown up by now is that the dollar is still the world reserve currency. It's unstable and not so secure, but it's still the best and everyone wants it as a form of backup. Just think of all the dollars stored in foreign banks around the world and then talk about inflation. And then think about the consequences when everyone decides that the dollar is not worth while anymore and that money starts flooding back into the US.
Freek314 (3 years ago)
If you want to learn economics, look up the Mises Institute.
Sarah Lindner (3 years ago)
Joel Shewmaker (3 years ago)
+Sarah Lindner This might not be something that he covers, but I want to recommend Mr Anderson from Bozemanscience to you. His videos remind me quite a bit of Crash Course, as well as Khan Academy.
Jesyca (3 years ago)
Thanks... i had fun listening to the cc, plus I learnt a couple of things... I guess that's how education should be! (...apart from punching that eagle?!! I think you got quite tired of it at the very end... ... ...Need a little bit of motivation....? Get that eagle!!!!)....
Jackboy019 (3 years ago)
Here's my logic against the efficiency of supply side economics, it seems hard for anyone to justify the amount of money necessary to be spent by the rich in order to have the same amount of money feed back into the economy. The ratio of money the upper class is able to generate compared to how much they spend is heavily favoring the idea that they earn more money then they can ever hope to spend, therefore this causes uneven wealth distribution which weakens the flow of money in the economy and slows it down. It seems the only way to counter this is through heavy taxation of the upper class then using the tax money to allow the lower classes to generate more wealth for themselves which would strengthen the flow of money creating a strong economy through balanced wealth distribution. There is has never been evidence suggesting trickle down economics strengthens the flow of money necessary for a strong economy.
TheJrpacman (3 years ago)
RIP Justice Scalia
Millz Pillz (3 years ago)
This video is great, however - from an educational standpoint, I think some of these concepts should have been fleshed out a little more or 'dumb-ed down'. Economics in general is more abstract and takes some time to wrap one's head around. Otherwise, great crash course :)
Thomas Kinyon (3 years ago)
Hey, an episode over state and local goverments would be nice after all they're trying to cut out civics classes in schools. And it is part of U.S. government and politics
MaxFrisch84 (3 years ago)
Unconditional Income FTW! Life has to be free!
Syed Fazil (3 years ago)
Crash Course should do crash course government and politics UK since there are a lot more countries using the UK system compared to US system . Ex : Singapore , Malaysia and India .
Ricois (3 years ago)
Crooks and thieves.
Jamiethecommie (3 years ago)
Bankers landlords bosses oh my

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