Freakonomics » How Does the Economy Actually Work? Ray Dalio Explains

Jay Liew
10:43 PM Oct 31 2013

Stashed in: Economics!, Best Videos, America!, The World, policy, Freakonomics

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An economy is the sum of the transactions that happen in all of the markets.

The total amount of spending drives the economy. Because one person's spending is another's income.

A market consists of all of the buyers and sellers of a good or service.

Adam Rifkin
11:02 PM Oct 31 2013

Credit is the most important part of the economy.

Total Credit in the U.S. = $50 trillion.

Total Money in the U.S. = $3 trillion.

Credit causes cycles. The video explains why.

Adam Rifkin
11:07 PM Oct 31 2013