Most of your econoimc thought comes from people who live in the theoretical world. They do not operate in reality. Their entire discipline is watching from the sideliness. Economists do not generate out put or contribute to economic activity.
In this video I give a clear example of how the theory does not match reality. This is a simple equation that shows how wrong traditional economic thought is.
▶️ 3Speak
Most of those professors seems knowledgeable because they've been teaching these courses for many years. Real-time finance actually depend on the decisions of real-time people. You talked about their degrees and what I think is that their economic knowledge creates them jobs.
Economics is fascinating in paper. You talk about them reading books from way back 1970 when each day real-time economic activities don't depend on the knowledge they teach. It's generally crazy.
In my personal microeconomy, it's helpful to hold crypto briefly during a pump for spending. This keeps my capital gains low, meaning taxes won't be nuts. And, I can buy a little more than I did a few days prior.
There is some crypto I am holding long term. But, I am skeptical that I'd borrow too much against it. Even at 1% interest, I'd struggle to make payments on a $1 Million loan from my paycheck. And, it doesn't do me any good to just sit there either.
Ideally, I'd use the crypto as collateral to borrow and invest in another asset that would generate enough cash to pay the loan. This isn't something the economists say people would do.
The goal isn't to hoard like Smaug with his gold. The goal is to build up the capacity to buy more wealth. Deflation would be instrumental in that regard. It makes for more people having excess capital to invest, not hoard.
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Summary:
In this video, the speaker passionately discusses his belief that economists are usually wrong and that much of what they discuss is nonsense. He asserts that economics is not a real science like physics or chemistry, noting that economists simply observe and create models without directly contributing to the economy. The speaker argues against the commonly held economic theory that deflation discourages purchasing by providing real-world examples such as the semiconductor industry and the increasing adoption of deflationary products like smartphones and solar panels.
Detailed Article:
The speaker vehemently expresses his skepticism towards economists and their theories, labeling much of their discourse as nonsensical. He begins by recounting his own experience studying economics, where he eventually realized that the professors, despite their expertise, actually lacked practical knowledge and were merely theorizing about past events without adding tangible value to the economy. The speaker challenges the credibility of economics as a field, particularly in contrast to traditional sciences like physics or chemistry.
He argues that economists mainly focus on observation and creating models rather than actively contributing to economic growth or business development. The speaker criticizes the entire field of economics, stating that it serves no purpose and does not assist in enhancing productivity or generating economic output. He emphasizes that economists are merely theoretical and do not engage in the practical aspects of running a business, such as meeting payrolls, employing people, or generating revenues.
A significant portion of the video is dedicated to debunking the economic theory of deflation, which suggests that lower prices in the future discourage immediate purchases. The speaker counters this theory by illustrating examples from various industries, including semiconductors, smartphones, batteries, and solar panels, where despite the deflationary trends, sales continue to rise year over year. He emphasizes how consumers are aware of future price reductions but still make purchases, challenging the economists' narrative on deflation's impact on consumer behavior.
Moreover, the speaker highlights the role of Wall Street traders and professionals in understanding the flow of capital and real-world economic dynamics. He suggests that individuals with trading experience have a better understanding of economic principles because they have practical exposure to market fluctuations and the consequences of theoretical inaccuracies.
In conclusion, the speaker encourages the audience to be critical of economic theories and to seek out practitioners with practical experience in the financial markets. He underscores the disconnect between economic theory and real-world economic activities, using examples like the semiconductor industry's growth to support his argument. The video serves as a thought-provoking critique of traditional economic thinking and highlights the speaker's skepticism towards conventional economic wisdom.