how does this guy just know everything?!?!?

I owe so much of my life to you... you have helped me pass soo many classes!

+Magicstaa According to wikipedia: "Khan attended the Massachusetts Institute of Technology, graduating with a Bachelor of Science in mathematics, a Bachelor of Science in electrical engineering and computer science, and a Master of Science in electrical engineering and computer science in 1998.[7] Khan was class president in his senior year.[8] Khan also holds a Master of Business Administration from Harvard Business School.[9][10]"

"All hamburgers are created equally....which we know is not true" I swear ive heard something similar to this before :/ huh

"We are just assuming that all Hamburgers were created equal" - Emancipation Proclamation for Hamburgers. LOL.

@QuickSilverD I do believe that the government does need revenue and does need to tax. The harder question is how much revenue as a % of GDP and where it is best used.

Man just did in 9 minutes what my professor couldn't do in 9 weeks.

HAHAHA! the video title says "dead weight loss" meaning the lose of the surplus, but all these auto typers or bots or whatever you call them think its about human weight lose. I haven't laughed this hard for a while...who knew it would be in an econ video.

wow thank you much ! legit spent the last hour trying to understand this

To pay off their debt? haha..Sal...your funny...that's a good one.

Perfect explanation but if you watch videos just before the exam i recommend you Jacob Clifford - he prepares 3 minute videos and explain everything in short and clear manner

I would love to see how tariff taxation is calculated. I feel like this method should consider the nation we are responsible for. Say money taxed is value saved by another form of tax times the number of people within the nation they exchange with "pay". People are looking at economic efficiency, without considering the lost wages from being out of competitive balance. Lost wages we must make up for in another form of taxation.

Really good explanation. Thank you so much for sharing the knowledge!

Fantastic Video! Thanks

in this whole video i feel like *government was villain*

Do a video on supply-side economics

Have you done a video on Land Value Tax?

Thank you so much for making all of these videos!

Great information! Thanks for sharing this

Well explained! Thank you.

Amazing explanation Thank you 😊😊

Thank you very much Sal Khan!

Your handwriting distracts me. How can it be so neat?! And you're writing with a computer mouse?

soo the producers surplus is the profit?

thank you so much for these!!!!!!!!!!!!!

Why does the producer surplus decrease in price. They raise they're prices, should the only producer decrease be in quantity?

You are GOD

This video explained how taxes mess up consumerism

Well I am back here after you helped me pass linear algebra and calulus

Cheeseburgers are drop dead gorgeous!

This was great!

@QuickSilverD i think this is just an objective observation of the effect of taxes on the economy. i'd be surprised if khan was a raging anarchist.

wouldn't the producer surplus lie on the right of the equilibrium price. Because they a gaining much more??

This operates on the assumption of zero competition- making prices rise at a one to one ratio. Not only that, taxes are only paid on profits.

this video is very helpful thank you sir

made it easy for me to understand!

terimakasih :)

Thank you 💖

Why not give functions of S and D and then add 1 to the supply equation in terms of price or add 1 to the inverse supply function, rearrange and find supply function in terms of quality set it equal with demand function to get the new pe and qe

Tomorrow is my test and I know only he can make me pass

show how an increase in taxes can actually decrease revenue

thank you

@khanacademy Do you feel confortable sharing your own opinion on whenever the US Goverment do, taxes and spends too little or too much?

RIP to those watching today and taking a test tomorrow

Nice khan sir......

Great

Why has demand curve not shifted?

Great video. Now I know how they tax us for their poc*et

thank you Sal! :)

Nice. More proof that the class room is a waste of time.

Ahh you're too good! Thankyou

Massive love!!

Taxation is good. Its the governments job to protect the transactions of all demanders and suppliers and it needs revenue from somewhere so yes it is ok for the government to tax. haha but then the question of how much "protection" needs to be placed to protect the transactions and protection comes in the form of stable currency, laws, "pro growth tax", ease in starting a business,few barriers to business, respect for property rights... not price setting as some people assume.

best of the best

What you're missing is that this is just a model. Sure there's economies of scale but you're not taking into account marginal benefits. As you get closer to full capacity and over your workers might get in each other way. Eventually it would be better to increase capacity by getting new land and more workers, but they might have a better marginal benefit else where in society.

common khan w

Does Khan thinks that it is a good thing or not that the goverment gets revenue?

No more dead weight! We don't need it! Can't pay for school, can't pay for gas, insurance is ridiculous - the best income I can get can't keep up! Guess we'll all just live @ home for the next 10 years till we can pay for it all.

#millions of Hamburgers per day.....Dead 'weight-loss'..... Harberger's triangles..... I see what you did there Sal! I am not fat!

So people start eating healthier food, get healthier and live longer and we realise that the consumer's assessment of their own "surplus" (by which i think you mean their love of hamburgers) was partly unreasonable and the government had health advice which was more reasonable. We also don't see here the consumer benefit of eating that other healthier untaxed food, so the diagram is isolated from the full picture. If we saw that full picture, we would not need to lament this fictional "deadweight". Of course, if this economy is in the USA, people have probably just started eating cheap and nasty pizza anyway, so i get that.

ITS NOT

Yeah, so, as for federal taxation, federal taxes are not a funding mechanism for the federal government. Every time the federal government spends, it creates new dollars to fund that spending. That is how dollars are created and injected into the private sector. Federal taxes are how dollars are extracted from the private sector and destroyed. Federal taxes are not recycled. In fact, if you pay your taxes in cash, they literally shred it. In the olden days, back when all taxes were paid in cash, they burned it. This belief that taxes are recycled is a neoliberal bluff akin to believing that banks are financial intermediaries that take deposits and then lend those out. This is a strange faith in what was learned from George Bailey in It's a Wonderful Life. The financial intermediary theory of banking, like the fractional reserve theory of banking are complete bunk. There is no empirical evidence to support either of these theories. The only theory of banking that is empirically proven is the credit creation theory of banking. Imagine for a moment that the federal government asks you to pay a tax in dollars before it, the sole creator of the dollar, has spent it into existence. Is it possible? No. The federal government has to create that dollar before it can tax that dollar. And no, the federal government never borrows dollars to fund spending. Securities are a monetary tool used to control the overnight interest rate and a timed payout savings account. It is also not a funding mechanism. As for state taxes, yes, the state absolutely needs revenue before it can spend that revenue as it is not a currency creator. It's like comparing apples to a soccer ball.

tattoo spit ir!

Anyone else here from Zeducation?

My family laughed when I told them I was going to get rid of fat with "Lean Body Stagger", but then they saw the results. Google "Lean Body Stagger" to see their reaction.

lol if the government doesnt get revenue how does the country gonna be operating?

I don't think he is getting it. Sorry

Mr khan you literally farted in this video

marry me ( jll )

I find his voice annoying and distracting

this video is very helpful thank you sir