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What is "The Great Reset" & Why are People So Worried About It? | Economics Explained - YouTube
Channel: Economics Explained
[0]
never let a good crisis go to waste
[2]
winston churchill's famous words from
[4]
the darkest days of world war
[5]
ii have taken on a more sinister meaning
[7]
as the decades have passed
[8]
this quote was actually meant to be an
[10]
inspirational message of hope to the
[11]
british people
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but these days more cynical onlookers
[14]
see that people with ill intent can use
[16]
a crisis
[17]
just as well as those who are virtuous
[19]
the great reset is a collective name
[21]
given to a series of economic policies
[23]
that are attempting to use the recovery
[24]
from the coronavirus as a way to
[26]
supposedly build a better
[27]
brighter more sustainable future this
[30]
policy was first unveiled by the world
[32]
economic forum and the united kingdom's
[33]
prince charles and since this
[34]
announcement it has gathered support
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from a laundry list of economists
[38]
politicians business people
[39]
and celebrities but it has also gathered
[42]
a fair bit of criticism
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just 72 hours after its announcement a
[46]
petition to stop it
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gained 80 000 signatures which is kind
[50]
of fair enough
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the whole premise of this proposal does
[53]
sound very ominous
[55]
economic plans titled the great
[57]
something have not exactly had the best
[59]
track record
[60]
the fact that this plan is leveraging a
[61]
disaster alongside the fact that it is
[63]
pushing some pretty spicy policies
[65]
means that major conspiracy theories
[67]
have surfaced ranging from this plan
[69]
will make us all poorer
[70]
all the way up to this plan will make us
[72]
all slaves to the lizard people
[74]
now in fairness the marketing around
[76]
this great reset has not helped its case
[78]
at
[79]
all if someone was to try and research
[81]
what this plan actually was
[82]
they would be presented with two
[84]
extremely bizarre ads that explain
[86]
absolutely nothing and a two-hour panel
[88]
which is extremely boring even to a
[90]
major economics nerd like myself
[92]
and also kind of equally as unhelpful we
[95]
know this because well
[96]
we had to research this plan to make
[98]
this video so it sounds like some
[101]
economics need to be explained
[103]
and to properly do this we're going to
[104]
need to look at a few key questions
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what is the great reset actually
[109]
proposing to do
[110]
do these ideas have any merit who are
[113]
the players involved in pushing this
[114]
agenda
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and is this actually a nefarious scheme
[118]
or just the victim
[119]
of terrible marketing this episode of
[122]
economics explained was made possible by
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our fans on patreon
[125]
if you would like to gain early access
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to these videos before they're uploaded
[128]
to youtube
[129]
as well as participate in exclusive q a
[131]
sessions which are now held every
[132]
saturday at 9 30 eastern standard time
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please consider supporting our channel
[136]
at patreon.com
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economics explained now perhaps one of
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the largest concerns shared amongst
[142]
rational onlookers to this great reset
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proposal
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is the distinct lack of support from
[147]
economists time magazine has created a
[150]
page to help
[150]
explain the idea and it's broken the
[152]
proposal down into featurettes from its
[154]
key supporters
[155]
these are models cellists reddit
[158]
co-founders
[159]
ex-royals but outside of claus schwab
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the chairman of the world economic forum
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there are no economists for what it's
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worth class schwab is actually an
[168]
engineer by education but
[170]
he is brilliant in his own right so that
[171]
one's fair enough now a lot of this is
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because people like prince harry and
[175]
meghan markle are going to attract a lot
[177]
more attention than people like paul
[178]
krugman or thomas piketty
[180]
something something decline of society
[182]
but you know what again that's fair
[184]
enough plenty of brilliant ideas make it
[186]
nowhere because they fail to get any
[188]
attention
[189]
the second reason this page of
[190]
supporters is devoid of economists is
[192]
because the great reset
[193]
has for better or worse become more than
[195]
just an economic plan
[197]
it has become a bloated wish list of
[199]
things ranging from independent media to
[201]
demilitarization
[202]
support for the arts to sustainable
[204]
architecture which
[205]
may very well be credible and important
[207]
arguments in their own right but
[209]
only work to make this whole proposal
[211]
more confusing
[212]
at best or more confronting at worst
[215]
so for the sake of simplicity we're
[217]
going to go ahead and ignore all the
[218]
fluff that has been tacked on
[220]
and focus purely on the economic
[222]
proposals
[223]
because oh boy there are still a lot of
[226]
them
[227]
but the foundational point of all of
[229]
this is this
[230]
single point so if you remember just one
[233]
thing from the great reset
[234]
make sure it is this the great reset
[237]
plans to ensure that every recovery
[239]
stimulus
[240]
both fiscal and monetary from now on
[242]
must include green conditions
[244]
given that 2020 has been a very rocky
[246]
year and fiscal stimulus has been a
[248]
major topic
[249]
we have spoken about these policies many
[251]
many times on this channel
[252]
we've explored infrastructure spending
[254]
in china just last week we looked at
[255]
quantitative easing in japan and the
[257]
united states and a host of other
[258]
policies from a diverse group of nations
[261]
one common theme we saw amongst all of
[262]
this is that fiscal stimulus is a great
[264]
opportunity to put money towards
[266]
something that needs to be improved in
[267]
the nation
[268]
if a country desperately needs new
[270]
highways more funding for schooling or
[272]
you know what
[273]
even a stronger military fiscal stimulus
[275]
is a great way to provide that spending
[278]
the key objective of stimulus is to get
[280]
money out into the economy
[282]
and into the hands of people that can go
[284]
out and spend it that spending keeps
[286]
businesses open
[287]
people employed and quality of life
[289]
improving
[290]
now pretty much any type of government
[292]
spending will
[293]
achieve this core goal throwing money
[295]
off the tallest building in a selection
[297]
of major cities
[298]
will achieve this goal but there are
[300]
alternatives that achieve the same core
[302]
results
[303]
while also having some happy little side
[305]
effects
[306]
infrastructure spending is a great
[308]
example of this
[309]
we talked about it briefly in our last
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video and i don't want to repeat too
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much
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but governments putting money towards
[314]
building new pieces of infrastructure
[316]
will achieve their goal of getting money
[318]
out into the economy in the form of
[319]
paychecks to workers
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contracts to builders and commissions to
[323]
architects and engineers
[324]
but they will also have something left
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over to provide utility for decades to
[329]
come
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what this great reset is proposing is
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something similar
[333]
but channeled exclusively towards
[334]
building out infrastructure for green
[336]
technologies there are a lot of
[338]
advantages to installing solar panels on
[340]
your home
[341]
so long as you live in a reasonably
[343]
sunny area it will reduce your energy
[344]
bills to the point where the system will
[346]
pay for itself a few times over
[348]
it also reduces your carbon footprint
[350]
and may even add value to the property
[351]
itself
[352]
however the upfront cost is a
[354]
prohibitive hurdle for a lot of
[356]
households
[357]
similar situations exist on a nationwide
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level a modernized and expanded rail
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network in a city like los angeles would
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work to take thousands of cars off the
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road reducing emissions congestions and
[367]
lost time for commuters
[368]
but the upfront expense would probably
[370]
take it out of consideration
[372]
however if a fraction of the two
[374]
trillion dollars was rolled out in the
[375]
initial wave of fiscal stimulus was
[377]
redirected towards a project like this
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the cost would be comparatively trivial
[381]
while still achieving the desired
[383]
results of putting money into people's
[384]
pocket during times of economic
[386]
uncertainty
[387]
now i'm not a city planner so this
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example is exactly that
[390]
and there probably is hundreds of better
[392]
ways to spend this money on renewable
[393]
infrastructure
[394]
but the point is that getting that money
[396]
out there while redirecting it through a
[397]
project like this or building a wind
[399]
farm or a fleet of electric buses or
[401]
whatever
[401]
is literally a win-win now you might be
[404]
thinking well that sounds excellent
[406]
even the most staunch
[407]
anti-environmentalists would agree that
[408]
it's probably better to get
[409]
something for those government dollars
[411]
than nothing at all right and well yeah
[413]
it really is a great idea but there are
[415]
problems
[416]
for starters it can be really slow to
[418]
implement
[419]
it's all well and good to say we will
[421]
build some amazing new wind farm that
[423]
will power an entire city
[424]
but there is a lot that goes into that
[426]
plans have to be drawn up proposals need
[428]
to be accepted
[429]
land needs to be procured turbines need
[431]
to be manufactured
[432]
and only once all of this is done can
[435]
tradesmen and labourers start getting
[436]
paid to put this whole plan together
[438]
this could take years all the while
[441]
people are losing jobs going hungry and
[443]
not contributing to economic growth
[445]
say what you will about just giving
[447]
people money but it is
[449]
fast the second issue with this kind of
[451]
scheme is that money is channeled
[452]
towards a group that may
[454]
or may not need it as much as others a
[456]
typical project like let's say our wind
[458]
farm
[459]
will be handled through a corporation
[460]
that specializes in these types of
[462]
contracts
[463]
their goal will actually be to spend as
[465]
little money as possible on labor
[467]
because any money spent there is money
[469]
that isn't taken as
[470]
profit and yeah sure that profit money
[473]
will eventually find its way to
[474]
shareholders or be reinvested into the
[476]
company itself
[477]
but that is money that is not going to
[478]
be recirculated nearly as quickly as a
[480]
1200
[481]
check in the hands of a working class
[483]
family the final problem is
[485]
what to do with the infrastructure once
[487]
it's there it could be privatized in an
[489]
attempt to recoup some of the expense of
[491]
building it in the first place
[493]
but then a potential vital public
[495]
service is in the hands of a private
[496]
company
[497]
and any benefits it provides will be
[499]
left behind a paywall of swords
[501]
be it a toll for a highway higher
[503]
electricity costs or a more expensive
[505]
ticket to ride on a train
[506]
this is on top of the optics of
[508]
privatization which can sometimes be a
[510]
little bit
[510]
politically spicy of course the
[513]
alternative is just to keep the project
[514]
as a public asset
[515]
but then it's just another piece of
[517]
infrastructure that will need to be
[519]
maintained on taxpayers dimes
[521]
which could be unpopular to the people
[522]
that don't directly benefit from it
[525]
a potential solution to at least half of
[527]
these problems would be to have a
[528]
comprehensive list of projects
[529]
pre-planned and ready to implement
[531]
quickly after a downturn
[533]
complete with a plan for the project to
[535]
cover its own costs or be shared
[536]
equitably amongst taxpayers who will
[538]
fund it
[539]
of course easier said than done but if
[542]
governments did have the forward vision
[543]
to put some projects in the metaphorical
[545]
chamber then you know what
[546]
nobody would have any major problem with
[548]
this kind of strategy
[550]
if the great reset was a challenge to
[552]
governments to create these kinds of
[553]
plans and have them ready for the next
[554]
downturn
[555]
it would probably have a slightly more
[556]
favorable reception
[558]
but advocating for doing this right now
[560]
is just on an achievable goal
[562]
for many people companies and economies
[564]
which are simply looking to survive
[565]
through the next few months
[567]
of course this proposal was one of just
[569]
many incorporated into the narrative of
[571]
the great reset
[572]
and the list is comprehensive and
[574]
controversial
[576]
so let's see what else the fuss is all
[577]
about now these are the takeaway issues
[580]
that we were able to discern from the
[582]
articles published by the wef
[584]
again probably one of the biggest issues
[586]
with this whole proposal is that it's
[587]
just really hard to tell
[589]
what the proposal is but i digress it's
[592]
time for a speed round to get through
[594]
them all
[594]
one point is to push for investment into
[596]
technological education so that workers
[598]
around the world are better suited for
[599]
employment in increasingly tech focused
[601]
industries like logistics manufacturing
[603]
and retail
[604]
and you know what fair enough that's
[606]
probably a good call education is of
[608]
course something that i
[609]
am very passionate about and making sure
[611]
everyone has access to good applicable
[613]
knowledge is vital for maintaining a
[615]
strong workforce
[617]
so long as this education is directed
[618]
towards in-demand fields
[620]
this is an investment that will pay
[621]
dividends many times over on an
[623]
individual
[624]
national and global level the next
[626]
proposal is to encourage
[627]
long-term investments by private sector
[629]
into sustainable industries
[631]
and yeah this is a bit of a tough one
[633]
certainly there are huge advantages to
[635]
carrying this out
[636]
but it is market intervention so there
[639]
will be critics
[640]
a carbon tax is an effective way to
[642]
achieve what this point is proposing
[644]
carbon emissions are what we call a
[646]
negative externality
[647]
this is something that costs everybody
[649]
in the wider economy regardless of if
[651]
they are benefiting from those emissions
[653]
putting attacks on these emissions would
[654]
mean that the external cost borne by
[656]
society
[656]
is also a cost borne by the emitter and
[659]
this money can either be collected as
[661]
revenue to use on public goods so at
[663]
least the wider community is getting
[664]
something for the medical price that
[665]
they are paying
[666]
or in the best case scenario it will
[668]
encourage businesses to invest into
[670]
lower emitting alternatives to avoid
[672]
this cost
[672]
altogether a large part of tesla's
[675]
revenue currently comes from selling
[676]
unused allowances for emissions to
[678]
companies that are less green in their
[680]
operations
[681]
now a good group of people would support
[683]
policies like this
[684]
but many wouldn't so perhaps a more
[686]
applicable takeaway
[688]
might be that governments don't need to
[689]
subsidize solar farms or roll out carbon
[692]
taxes just yet
[693]
but perhaps they should stop subsidizing
[696]
major emitters
[697]
that's like paying in actual dollars to
[699]
pay with intangible costs
[701]
silly stuff and surprisingly a
[703]
widespread problem
[705]
the next proposal is to roll out a new
[707]
dashboard for measuring economic success
[709]
beyond just gdp metrics and well you
[711]
know what
[712]
no problem there either hey world
[714]
economic forum i will lend you the
[716]
economics explained national leader
[717]
board just give me a ticket to davos
[718]
next year yeah
[719]
in all seriousness though no problems
[722]
here gdp has its uses but it gets way
[724]
more attention than it should
[726]
social metrics as well as things like an
[727]
increase in collective net worth are
[729]
sometimes far
[730]
more telling than gdp figures are alone
[732]
the next point is to encourage
[734]
entrepreneurs to establish new
[735]
technologies and environmentally ethical
[737]
rules
[738]
[Music]
[740]
look this is nice in theory and full
[743]
disclaimer
[744]
believe it or not i am personally a big
[746]
supporter of protecting the environment
[747]
by living below your means walking
[749]
instead of driving recycling
[751]
all of that good stuff but it just isn't
[754]
the role of business it's really the
[756]
role of policymakers and the
[758]
responsibility of individuals
[760]
businesses generate profit and keeping
[762]
their motivations pure
[763]
and singular makes for better economies
[766]
now
[767]
if maintaining ethical environmental
[768]
standards were baked into their profit
[770]
motive
[771]
well that's great people love hearing
[773]
about businesses that have neutral
[774]
carbon footprints or
[775]
treat their employees well and those
[777]
businesses get rewarded with
[779]
conscientious dollars
[780]
a better solution to this would be to
[782]
work on making consumers demand higher
[784]
standards of corporations
[785]
and encouraging competition that could
[787]
challenge companies that do not meet
[788]
these standards
[790]
saying that companies should sit down
[791]
and sing kumbaya with one another
[793]
sounds nice in theory but in practice
[795]
they have duty to their shareholders
[797]
you don't use a hammer to fix a laptop
[799]
so just don't use corporations to
[801]
implement ethical regulation
[803]
there are just better tools for the job
[805]
now so far these policies have been a
[807]
bit optimistic but not exactly
[810]
evil it would probably be difficult to
[812]
see how people would think this is a
[813]
plan for world domination
[814]
if it weren't for one final piece of the
[816]
puzzle
[818]
terrible marketing this is a direct
[821]
extract from the world economic forum's
[822]
collaboration with time magazine on this
[824]
issue
[825]
in which the two organizations paint a
[826]
picture of a future world where the
[828]
great reset has been implemented
[829]
by all governments the year is 2023
[833]
the covert 19 pandemic has come to an
[835]
end and the global economy is on a path
[837]
to recovery
[838]
how did we get here the u.s began to
[840]
change its approach after november 3rd
[842]
2020 when joe biden defeated donald
[844]
trump in the presidential election
[845]
and the democrats held the majority in
[847]
both houses of congress
[849]
following his inauguration in january
[850]
2021 biden moved quickly to rebuild
[853]
frayed ties between america and europe
[855]
setting up a forum to share collective
[857]
intelligence that could inform a smarter
[859]
form of government
[860]
european governments who are eager to
[862]
learn from investment strategies used by
[864]
the us government like those led by
[865]
defence research agency darpa to spur
[867]
research and development into high-risk
[869]
technologies
[870]
the european leadership used
[872]
challenge-orientated policies to create
[874]
100 carbon-neutral cities across the
[876]
continent
[876]
governments used a digital revolution to
[878]
improve public services from digital
[880]
health to e-cards and create a
[882]
citizen-centred welfare state
[884]
holy partisanship batman the article
[887]
continues on like this and i will leave
[889]
a link in the video description for
[890]
those who want to read it in full
[892]
now you may personally support
[893]
everything that has been said here and
[895]
that's great
[896]
but you have to realize how blatantly
[898]
partisan it is
[899]
it also pushes globalist ideas and
[901]
advocating for nations to openly share
[903]
their intellectual property
[905]
now this in reality is what people are
[907]
taking issue with
[908]
the world economic forum sounds like it
[910]
should be well a
[911]
forum and one that positions itself
[913]
above agendas like this one
[915]
but of course it isn't and understanding
[918]
what the world economic forum actually
[919]
is will teach us a lot about what this
[921]
whole proposal
[922]
is in reality and why even the most
[924]
staunch rivals to its policies
[926]
shouldn't be overly afraid of it the
[928]
world economic forum is a non-government
[931]
organization
[931]
probably best known for their annual
[933]
meetings held in davos switzerland where
[935]
thousands of wealthy people descend on a
[936]
small alpine village to talk about
[938]
all things economics it makes a majority
[941]
of its money through membership fees
[942]
which are steep they range anywhere from
[945]
sixty seven thousand dollars a year to
[946]
seven
[947]
hundred thousand dollars per year
[948]
depending on the level of engagement
[950]
with the organization
[952]
so who are these members well obviously
[954]
very rich people
[956]
or influential public figures that get
[957]
complementary invites
[959]
so by virtue of the fact that it
[960]
attracts the type of people who can
[962]
afford this membership
[963]
it is influential but it's not like the
[966]
united nations or the international
[968]
monetary fund or the world bank
[969]
as much as it would like you to believe
[971]
that it is it's for lack of a better way
[973]
of putting it
[974]
a book club for woke billionaires where
[976]
the only thing that they discuss are
[978]
economics textbooks
[979]
the great reset may as well be the great
[982]
gatsby
[982]
it's not really a genuine proposal it's
[985]
a hypothetical to stir up conversation
[987]
and maybe a little bit of controversy
[990]
that's how they get attention
[991]
which is how they get membership which
[993]
is how they maintain
[994]
influence and relevance and now since i
[997]
have totally destroyed my chances i've
[999]
ever been invited to davos as a guest
[1000]
speaker to bring this message to you all
[1002]
go and support the channel on patreon it
[1005]
might not make up for those sweet sweet
[1006]
guest speaker dollar you do's but
[1008]
you will be continuing to make these
[1010]
videos possible just like these awesome
[1012]
people did
[1013]
so thanks guys bye
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