How Money Works

Can We Afford For Everybody To Be Financially Responsible?Get a FREE bag of coffee with a new Trade subscription: http://drinktrade.com/howmoneyworksSign up for my FREE newsletter! - https://www.compoundeddaily.com/Support me on Patreon - https://www.patreon.com/HowMoneyWorksMy Other Channel: @HowHistoryWorksEdited By: Andrew GonzalesMusic Courtesy of: Epidemic SoundSelect Footage Courtesy of: Getty ImagesFor sponsorship inquiries, please contact sponsors@worksmedia.groupSign up for my newsletter https://compoundeddaily.com 👈All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.#personalfinance #wealth #investingYou are probably terrible with money. Credit card debt is at an all-time high, a majority of Americans can’t afford a $1,000 expense without going into debt, and even one third of people that earn two hundred and fifty THOUSAND dollars a year [$250,000] OR MORE live paycheck to paycheck. But is this a good thing for the small minority that do keep their spending in check? Or can we afford for everybody to be financially responsible?If everybody was financially responsible there would be nobody left to spend money on disposable consumer junk, overpriced restaurant meals, leased pickups and day trading courses, but all of these purchases give other people a job. If YOU are being financially responsible, are you denying an opportunity to someone else to be financially responsible? And does that mean that you should be grateful to all the people living pay check to pay check? The average American is not in a comfortable financial position at the moment and it’s the same story everywhere around the world. Money that people saved up in the pandemic has evaporated and credit card debt has taken its place.But how much of this is recklessness and how much of this is people who do not make enough money to keep up?So it’s time to learn How Money Works, to find out if we can really afford for everybody to be financially responsible, and if we would even want that to happen.Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.---- Learn more about your ad choices. Visit megaphone.fm/adchoices

Wealth is becoming alarmingly concentrated in the hands of a few, with private equity controlling a significant chunk of the U.S. economy. Major index funds now own substantial shares in most large companies, raising questions about fair resource distribution. Local monopolies are emerging, affecting youth sports leagues and community economics. This concentration also stifles job opportunities and hinders entrepreneurship, creating challenges for those looking to thrive in an increasingly competitive market.

What You Need To Know About SVB, Silvergate & Signature Bank Collapses (In 7 Minutes)Sign up for my newsletter https://compoundeddaily.com 👈Last week America had it’s second largest bank collapse ever, here is how that actually happened in seven minutes.Silicon Valley Bank the 16th biggest bank in America has been shut down by regulators and its operations have been seized by the Federal Deposit Insurance Corporation just three days after Silvergate bank another Californian Bank announced it would by winding downs it’s operations and liquidating.SVB was called the investors investor as they had a venture capital and credit arm that would directly invest into funds such as sequoia capital, Ribbit Capital, Spark Capital and Greylock, basically the who’s who of institutional investors in Silicon Valley.Most new businesses fail so traditional banks aren’t going to lend to any company that can’t show consistent profits or put up adequate security. Just like Silvergate saw a gap in the market to serve risky crypto traders Silicon Valley Bank saw a gap to serve new start-ups.------- Edited By: Andrew GonzalesPatrick Boyle's video at 1:50 https://www.youtube.com/watch?v=kxcwn7xoXhU&t=163sMusic Courtesy of: Epidemic SoundSelect Footage Courtesy of: Getty ImagesFor sponsorship inquiries, please contact sponsors@worksmedia.groupAll materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.#svb #silvergate #signatureFollow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.---------------------------- Learn more about your ad choices. Visit megaphone.fm/adchoices

Buy Now Default Later - The Broken Business of BNPLLooking to grow your business online? Odoo is an all-in-one solution for businesses. Get started today with a 14-day trial https://www.odoo.com/r/r3USign up for our FREE newsletter! - https://www.compoundeddaily.com/Books we recommend - https://howmoneyworkslibrary.com/Listen on Spotify - https://open.spotify.com/show/5gi1JobDJC3QqaF4aKfenR?si=f3IsgWIlSKObF8BT1FitigMy Other Channel: @HowHistoryWorks @HowMoneyWorksUncutEdited By: Svibe Multimedia StudioMusic Courtesy of: Epidemic SoundSelect Footage Courtesy of: Getty Images📩 Business Inquiries ➡️ sponsors@worksmedia.groupSign up for our newsletter https://compoundeddaily.com 👈All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.Buy Now Pay Later companies now have over half a trillion dollars worth of debt on their books according to estimates from industry groups. An exact number is harder to track than something like total credit card debt because these companies are not required to record their lending practices in the same way. Either way this is an especially concerning amount of money because by design “buy now pay later” “loans” SHOULD only last for eight weeks before they are paid off in a predictable instalment plan. But new research (and company confessions) have revealed what you probably already knew… people aren’t really paying off their Klarna account, they are just using it as a new way to make their month go a little bit further at the end of their money… Most of the largest Buy Now Pay Later companies are barely ten years old now, but in that time they have been able to scale rapidly thanks to a combination of generous investor funding, a tech bro attitude towards regulations, and a service that was appealing to people who didn’t want to go through a formal credit application process… for whatever reason… The argument was that these companies weren’t giving out loans… They were just letting people split up their purchase into smaller payments made over a set time period, and if everything was done properly the users wouldn’t even need to pay interest. But now after giving out quick, easy “not-loans” to anybody who could download an app, the companies are pulling a shocked Pikachu that their “not-debt” is NOT getting paid back. Now consumer debt defaults are on the rise everywhere, but BNPL has its own risks that could make this a whole lot worse than people not being able to split their Costco hotdog into 4 easy payments.Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.------- Learn more about your ad choices. Visit megaphone.fm/adchoices

Strikes Just Shut Down America's Most Important Ports... WTF Happens Now? (Never mind it’s over)To try everything Brilliant has to offer for free for a full 30 days, visit http://www.brilliant.org/howmoneyworks. You’ll also get 20% off an annual premium subscription.Sign up for our FREE newsletter! - https://www.compoundeddaily.com/Books we recommend - https://howmoneyworkslibrary.com/My Other Channel: @HowHistoryWorksUncut Channel: @HowMoneyWorksUncutEdited By: Svibe Multimedia StudioMusic Courtesy of: Epidemic SoundSelect Footage Courtesy of: Getty Images📩 Business Inquiries ➡️ sponsors@worksmedia.groupSign up for our newsletter https://compoundeddaily.com 👈All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.#strike #business #shippingAt midnight on Monday this week, 45,000 dock workers, operating 36 ports across America walked off the job as part of their union’s first strike since 1977.These ports handle TRILLIONS of dollars’ worth of trade every year and are an essential bottleneck in global supply chains.This will affect everything from the fight with inflation, to manufacturing jobs, to just your ability to buy some junk off Temu… oh and I don’t know if you have noticed, but this is also happening right before an election…The accusation has been made that this is just an opportunistic money grab directed at the most vulnerable part of the economy, made by workers who are already earning MUCH more than the national average…So why are these workers striking? … and what happens now that they are?The Union is asking for the standard renegotiation of pay and conditions, but the Maritime Alliance is arguing that their demands have gone too far… and… I can’t believe I am going to say this… but… they might have a point…According to a the associated press the union’s demands are a 77% increase in pay across all workers to be implemented over the next six years, and a COMPLETE ban on automation which could replace workers jobs…The union is arguing that despite these earning the pay increase is not unreasonable considering this is just an opening offer which is already being negotiated AND it’s meant to be incremental across six years which means their pay will “only” increase by about 9% year to year…Union workers believe they are in a fight for the future of their jobs and the ports are desperately trying to catch up with other global rivals, and it’s unclear how either of them are going to back down from their non-negotiable positions…So, it’s time to learn How Money Works, to find out what shutting down a crucial supply channel means… for everybody else in the world.Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.------------------------- Learn more about your ad choices. Visit megaphone.fm/adchoices

How Companies Cheated Price Fixing Laws... With Math🧠 Brain.fm is the best focuse music I’ve ever tried - get 30 days free here https://www.brain.fm/HMWSign up for our FREE newsletter! - https://www.compoundeddaily.com/The everything war - https://www.amazon.com/Everything-War-Dana-Mattioli/dp/0316269778 (but do consider buying it at your local book store)Books we recommend - https://howmoneyworkslibrary.com/My Other Channel: @HowHistoryWorksEdited By: Svibe Multimedia StudioMusic Courtesy of: Epidemic SoundSelect Footage Courtesy of: Getty ImagesFor sponsorship inquiries, please contact sponsors@worksmedia.groupSign up for our newsletter https://compoundeddaily.com 👈All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.#business #inflation #financeAlgorithms are everywhere.Every app, every website, EVERY business you interact with has a program working away in the background to show you what you want to see, get you to make decisions you didn’t have to, and make you spend as much as you’re absolutely willing to on stuff you didn’t know you needed…A month ago Wendy’s CEO Kirk Tanner announced that the fast food franchise would be introducing dynamic pricing. A system where how much you pay for a Baconator would depend on an algorithm that balanced customer demand with store capacity.According to the companies announcement they were planning to invest twenty MILLION dollars [$20,000,000] into this technology before it was rightfully ridiculed across the internet.This was a win for the little guy that just wanted to clog their arteries at a predictable price point, but Wendy’s only mistake was announcing their plans. Dynamic pricing is already here, and it’s making inflation and essential feature.So it’s time to learn How Money Works to find out how mathematical models mandated inflation.Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.--------------- Learn more about your ad choices. Visit megaphone.fm/adchoices

Private Equity is a TERRIBLE Investment... Who Keeps Giving Them Money?Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.------------ Learn more about your ad choices. Visit megaphone.fm/adchoices

You Suck at Investing.Upgrade the way you learn with Brilliant! To get started for FREE go to http://www.brilliant.org/howmoneyworksSign up for my newsletter https://compoundeddaily.com 👈 -----Investing is the most important thing you can do to reliably build wealth during your life. The only problem is… you inevitably suck at it…The S&P 500 has a historical average return of 10.4% over the past 100 years, even when including all the major stock market downturns during that time. $10,000 invested in 1972 would be worth $1.7 Million today. But look around, and you will be hard pressed to find anybody who has made themselves wealthy EXCLUSIVELY through diligent investing practices.Research done by Dalbar Inc an investment research firm found that the average equity fund investor only made average annualized returns of 4.25% over the past 20 years. To understand how big a difference this truly is, the same investor getting those returns would only turn their initial $10,000 investment into $83,000 today over the same 50 year period.People are terrible at investing, YOU are terrible at investing, and even finance industry professionals are buy and large… terrible at investing.The only real solution is to stop trying.#Investing #PersonalFinance #HowMoneyWorksEdited By: Andrew GonzalesMusic Courtesy of: Epidemic SoundSelect Footage Courtesy of: Getty ImagesFor sponsorship inquiries, please contact sponsors@worksmedia.groupAll materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.--------------------------- Learn more about your ad choices. Visit megaphone.fm/adchoices

The Great Corporate ExtinctionMeet your new favorite daily sneaker—Vessi is waterproof, ultra-comfy, and fits every part of your routine. Visit https://vessi.com/MONEY and enjoy 15% off your first pair at checkout! -----Sign up for our FREE newsletter! - https://www.compoundeddaily.com/Books we recommend - https://howmoneyworkslibrary.com/My Other Channel: @HowMoneyWorksUncut @HowHistoryWorksEdited By: Svibe Multimedia StudioMusic Courtesy of: Epidemic SoundSelect Footage Courtesy of: Getty Images📩 Business Inquiries ➡️ sponsors@worksmedia.groupSign up for our newsletter https://compoundeddaily.com 👈All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.#business #finance #money2023 saw a record number of new businesses being created here in America, with five and a half MILLION new companies being registered within the year. Data hasn’t been published for 2024 yet, but most expectations suggest this record could be broken again. At the same time it seems like every pre-revenue, pre-idea, pre-clue startup that vaguely mentions artificial intelligence is getting billions of dollars thrown at them by cashed up investors. And yet there is a problem that you may not have noticed. There just aren’t that many companies anymore. In 1996 the market hit an all time record of 8,090 companies publicly listed on the various stock markets around America. Today almost 30 years later, despite the economy being THREE times larger, and the market handling about SEVEN times as much capital, there are fewer than HALF as many companies publicly available to buy shares in. There are a lot of theories about what is going on here, from private equity making wall street irrelevant, corporate consolidation, to the dwindling savings of average investors. BUT there are some even bigger issues at play here.Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.---- Learn more about your ad choices. Visit megaphone.fm/adchoices

The Tax System is Broken... In Just The Right WayLooking to grow your business online? Get started today with a free 14-day trial from Odoo: https://www.odoo.com/r/xwlSign up for our FREE newsletter! - https://www.compoundeddaily.com/Books we recommend - https://howmoneyworkslibrary.com/My Other Channel: @HowHistoryWorksEdited By: Svibe Multimedia StudioMusic Courtesy of: Epidemic SoundSelect Footage Courtesy of: Getty ImagesFor sponsorship inquiries, please contact sponsors@worksmedia.groupSign up for our newsletter https://compoundeddaily.com 👈All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.#tax #finance #moneyThe Federal Tax Code when written out from beginning to end is about two thousand six hundred [2,600] pages long.Depending on who you ask it can be as SEVENTY THOUSAND [70,000] pages IF you include all of the relevant legal rulings on the contents of the code itself.This snowballing complexity would be a big enough headache by itself, BUT the biggest problem of all, is that the Federal government only collects about a dozen different taxes…The guidelines on what these taxes are, how they are calculated and how they are collected take up a total of about 250 pages… everything ELSE in the code is allowances, credits, deductions, offsets, incentives and deferments.And that’s just FEDERAL taxes, things become EXPONENTIALLY more complicated when local and state taxes are included as well.Now it doesn’t matter if you believe that all taxes are theft, or if you think that the rich should be taxed out of existence, the CURRENT system is broken in JUUSSTT the right way.Ok so it’s no secret that tax loopholes benefit the rich… and that’s for TWO reasons… HOWEVER most people choose to just focus on one.The first reason is because wealthy people can afford to pay the billable hours of accountants and tax lawyers to set up their personal finances and business structures to take advantage of these loopholes.According to the National Association of tax professionals the average cost to prepare an individual tax return in America in 2023 was two hundred and forty eight dollars [$248].That’s ALREADY more expensive than it should be BUT tax services go way up from there.Tailored tax services that submit the paperwork required to take advantage of some of these loopholes can cost tens of thousands of dollars every year to put together. That means that it’s only worth it for people that can save hundreds of thousands of dollars in tax by diligently structuring their affairs.The SECOND reason that tax loopholes only benefit rich people is because… they are the ones that pay tax.But distorting already highly problematic markets is just the first problem with the loophole arms race.So it’s time to learn How Money Works to find out why our taxes are so hard to fix.Follow to learn How Money Works.Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorksDisclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.---- Learn more about your ad choices. Visit megaphone.fm/adchoices