This video goes into detail on how our economy works and how it relates to social problems and society in general.
I learned about the different cycles in both the video. The economy was explained much simpler in the video explaining how people’s debt and bank’s interest add up to make the the economy work in cycles. The video begin with productivity growth explaining how credit leads to economic expansion and repeats multiple times that one person’s debt is another's income, and it allows us to consume more than we produce when we acquire it Productivity growth is great in the long run. Then he moves onto short term debt cycles which happen in 5-8 years where credit might not be easily accessible causing recession such as the one in US in 2008. The biggest one the video discussed was long term death cycle which basically has everything happen over 75-100 years; the video describes it as debt swings. can obviously relate to the short term and long term cycles during war when either the government controls spending such as during World War 1. And when the country runs out of credit they can pay off its debts through productivity in other lands such as agricultural lands.
Lastly, the video discusses 3 rules of thumb that the speaker lives by. He says don’t have debt rise higher than income, don’t have income rise faster than productivity and raise productivity these are relate to what Patel and Moore talk about through history. For example, the Black Death, the disease wipes out employers and specific markets that lead to Europe's economic downfall. They needed more credit than they could make and it took them awhile to raise back their productivity which caused more problems and eventually the rise of what we discussed previously, capitalism.
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