What is "The Great Reset" & Why are People So Worried About It?

never let a good crisis go to waste winston churchill's famous words from the darkest days of world war ii have taken on a more sinister meaning as the decades have passed this quote was actually meant to be an inspirational message of hope to the british people but these days more cynical onlookers see that people with ill intent can use a crisis just as well as those who are virtuous the great reset is a collective name given to a series of economic policies that are attempting to use the recovery from the coronavirus as a way to supposedly build a better brighter more sustainable future this policy was first unveiled by the world economic forum and the united kingdom's prince charles and since this announcement it has gathered support from a laundry list of economists politicians business people and celebrities but it has also gathered a fair bit of criticism just 72 hours after its announcement a petition to stop it gained 80 000 signatures which is kind of fair enough the whole premise of this proposal does sound very ominous economic plans titled the great something have not exactly had the best track record the fact that this plan is leveraging a disaster alongside the fact that it is pushing some pretty spicy policies means that major conspiracy theories have surfaced ranging from this plan will make us all poorer all the way up to this plan will make us all slaves to the lizard people now in fairness the marketing around this great reset has not helped its case at all if someone was to try and research what this plan actually was they would be presented with two extremely bizarre ads that explain absolutely nothing and a two-hour panel which is extremely boring even to a major economics nerd like myself and also kind of equally as unhelpful we know this because well we had to research this plan to make this video so it sounds like some economics need to be explained and to properly do this we're going to need to look at a few key questions what is the great reset actually proposing to do do these ideas have any merit who are the players involved in pushing this agenda and is this actually a nefarious scheme or just the victim of terrible marketing this episode of economics explained was made possible by our fans on patreon if you would like to gain early access to these videos before they're uploaded to youtube as well as participate in exclusive q a sessions which are now held every saturday at 9 30 eastern standard time please consider supporting our channel at patreon.com economics explained now perhaps one of the largest concerns shared amongst rational onlookers to this great reset proposal is the distinct lack of support from economists time magazine has created a page to help explain the idea and it's broken the proposal down into featurettes from its key supporters these are models cellists reddit co-founders ex-royals but outside of claus schwab the chairman of the world economic forum there are no economists for what it's worth class schwab is actually an engineer by education but he is brilliant in his own right so that one's fair enough now a lot of this is because people like prince harry and meghan markle are going to attract a lot more attention than people like paul krugman or thomas piketty something something decline of society but you know what again that's fair enough plenty of brilliant ideas make it nowhere because they fail to get any attention the second reason this page of supporters is devoid of economists is because the great reset has for better or worse become more than just an economic plan it has become a bloated wish list of things ranging from independent media to demilitarization support for the arts to sustainable architecture which may very well be credible and important arguments in their own right but only work to make this whole proposal more confusing at best or more confronting at worst so for the sake of simplicity we're going to go ahead and ignore all the fluff that has been tacked on and focus purely on the economic proposals because oh boy there are still a lot of them but the foundational point of all of this is this single point so if you remember just one thing from the great reset make sure it is this the great reset plans to ensure that every recovery stimulus both fiscal and monetary from now on must include green conditions given that 2020 has been a very rocky year and fiscal stimulus has been a major topic we have spoken about these policies many many times on this channel we've explored infrastructure spending in china just last week we looked at quantitative easing in japan and the united states and a host of other policies from a diverse group of nations one common theme we saw amongst all of this is that fiscal stimulus is a great opportunity to put money towards something that needs to be improved in the nation if a country desperately needs new highways more funding for schooling or you know what even a stronger military fiscal stimulus is a great way to provide that spending the key objective of stimulus is to get money out into the economy and into the hands of people that can go out and spend it that spending keeps businesses open people employed and quality of life improving now pretty much any type of government spending will achieve this core goal throwing money off the tallest building in a selection of major cities will achieve this goal but there are alternatives that achieve the same core results while also having some happy little side effects infrastructure spending is a great example of this we talked about it briefly in our last video and i don't want to repeat too much but governments putting money towards building new pieces of infrastructure will achieve their goal of getting money out into the economy in the form of paychecks to workers contracts to builders and commissions to architects and engineers but they will also have something left over to provide utility for decades to come what this great reset is proposing is something similar but channeled exclusively towards building out infrastructure for green technologies there are a lot of advantages to installing solar panels on your home so long as you live in a reasonably sunny area it will reduce your energy bills to the point where the system will pay for itself a few times over it also reduces your carbon footprint and may even add value to the property itself however the upfront cost is a prohibitive hurdle for a lot of households similar situations exist on a nationwide level a modernized and expanded rail network in a city like los angeles would work to take thousands of cars off the road reducing emissions congestions and lost time for commuters but the upfront expense would probably take it out of consideration however if a fraction of the two trillion dollars was rolled out in the initial wave of fiscal stimulus was redirected towards a project like this the cost would be comparatively trivial while still achieving the desired results of putting money into people's pocket during times of economic uncertainty now i'm not a city planner so this example is exactly that and there probably is hundreds of better ways to spend this money on renewable infrastructure but the point is that getting that money out there while redirecting it through a project like this or building a wind farm or a fleet of electric buses or whatever is literally a win-win now you might be thinking well that sounds excellent even the most staunch anti-environmentalists would agree that it's probably better to get something for those government dollars than nothing at all right and well yeah it really is a great idea but there are problems for starters it can be really slow to implement it's all well and good to say we will build some amazing new wind farm that will power an entire city but there is a lot that goes into that plans have to be drawn up proposals need to be accepted land needs to be procured turbines need to be manufactured and only once all of this is done can tradesmen and labourers start getting paid to put this whole plan together this could take years all the while people are losing jobs going hungry and not contributing to economic growth say what you will about just giving people money but it is fast the second issue with this kind of scheme is that money is channeled towards a group that may or may not need it as much as others a typical project like let's say our wind farm will be handled through a corporation that specializes in these types of contracts their goal will actually be to spend as little money as possible on labor because any money spent there is money that isn't taken as profit and yeah sure that profit money will eventually find its way to shareholders or be reinvested into the company itself but that is money that is not going to be recirculated nearly as quickly as a 1200 check in the hands of a working class family the final problem is what to do with the infrastructure once it's there it could be privatized in an attempt to recoup some of the expense of building it in the first place but then a potential vital public service is in the hands of a private company and any benefits it provides will be left behind a paywall of swords be it a toll for a highway higher electricity costs or a more expensive ticket to ride on a train this is on top of the optics of privatization which can sometimes be a little bit politically spicy of course the alternative is just to keep the project as a public asset but then it's just another piece of infrastructure that will need to be maintained on taxpayers dimes which could be unpopular to the people that don't directly benefit from it a potential solution to at least half of these problems would be to have a comprehensive list of projects pre-planned and ready to implement quickly after a downturn complete with a plan for the project to cover its own costs or be shared equitably amongst taxpayers who will fund it of course easier said than done but if governments did have the forward vision to put some projects in the metaphorical chamber then you know what nobody would have any major problem with this kind of strategy if the great reset was a challenge to governments to create these kinds of plans and have them ready for the next downturn it would probably have a slightly more favorable reception but advocating for doing this right now is just on an achievable goal for many people companies and economies which are simply looking to survive through the next few months of course this proposal was one of just many incorporated into the narrative of the great reset and the list is comprehensive and controversial so let's see what else the fuss is all about now these are the takeaway issues that we were able to discern from the articles published by the wef again probably one of the biggest issues with this whole proposal is that it's just really hard to tell what the proposal is but i digress it's time for a speed round to get through them all one point is to push for investment into technological education so that workers around the world are better suited for employment in increasingly tech focused industries like logistics manufacturing and retail and you know what fair enough that's probably a good call education is of course something that i am very passionate about and making sure everyone has access to good applicable knowledge is vital for maintaining a strong workforce so long as this education is directed towards in-demand fields this is an investment that will pay dividends many times over on an individual national and global level the next proposal is to encourage long-term investments by private sector into sustainable industries and yeah this is a bit of a tough one certainly there are huge advantages to carrying this out but it is market intervention so there will be critics a carbon tax is an effective way to achieve what this point is proposing carbon emissions are what we call a negative externality this is something that costs everybody in the wider economy regardless of if they are benefiting from those emissions putting attacks on these emissions would mean that the external cost borne by society is also a cost borne by the emitter and this money can either be collected as revenue to use on public goods so at least the wider community is getting something for the medical price that they are paying or in the best case scenario it will encourage businesses to invest into lower emitting alternatives to avoid this cost altogether a large part of tesla's revenue currently comes from selling unused allowances for emissions to companies that are less green in their operations now a good group of people would support policies like this but many wouldn't so perhaps a more applicable takeaway might be that governments don't need to subsidize solar farms or roll out carbon taxes just yet but perhaps they should stop subsidizing major emitters that's like paying in actual dollars to pay with intangible costs silly stuff and surprisingly a widespread problem the next proposal is to roll out a new dashboard for measuring economic success beyond just gdp metrics and well you know what no problem there either hey world economic forum i will lend you the economics explained national leader board just give me a ticket to davos next year yeah in all seriousness though no problems here gdp has its uses but it gets way more attention than it should social metrics as well as things like an increase in collective net worth are sometimes far more telling than gdp figures are alone the next point is to encourage entrepreneurs to establish new technologies and environmentally ethical rules [Music] look this is nice in theory and full disclaimer believe it or not i am personally a big supporter of protecting the environment by living below your means walking instead of driving recycling all of that good stuff but it just isn't the role of business it's really the role of policymakers and the responsibility of individuals businesses generate profit and keeping their motivations pure and singular makes for better economies now if maintaining ethical environmental standards were baked into their profit motive well that's great people love hearing about businesses that have neutral carbon footprints or treat their employees well and those businesses get rewarded with conscientious dollars a better solution to this would be to work on making consumers demand higher standards of corporations and encouraging competition that could challenge companies that do not meet these standards saying that companies should sit down and sing kumbaya with one another sounds nice in theory but in practice they have duty to their shareholders you don't use a hammer to fix a laptop so just don't use corporations to implement ethical regulation there are just better tools for the job now so far these policies have been a bit optimistic but not exactly evil it would probably be difficult to see how people would think this is a plan for world domination if it weren't for one final piece of the puzzle terrible marketing this is a direct extract from the world economic forum's collaboration with time magazine on this issue in which the two organizations paint a picture of a future world where the great reset has been implemented by all governments the year is 2023 the covert 19 pandemic has come to an end and the global economy is on a path to recovery how did we get here the u.s began to change its approach after november 3rd 2020 when joe biden defeated donald trump in the presidential election and the democrats held the majority in both houses of congress following his inauguration in january 2021 biden moved quickly to rebuild frayed ties between america and europe setting up a forum to share collective intelligence that could inform a smarter form of government european governments who are eager to learn from investment strategies used by the us government like those led by defence research agency darpa to spur research and development into high-risk technologies the european leadership used challenge-orientated policies to create 100 carbon-neutral cities across the continent governments used a digital revolution to improve public services from digital health to e-cards and create a citizen-centred welfare state holy partisanship batman the article continues on like this and i will leave a link in the video description for those who want to read it in full now you may personally support everything that has been said here and that's great but you have to realize how blatantly partisan it is it also pushes globalist ideas and advocating for nations to openly share their intellectual property now this in reality is what people are taking issue with the world economic forum sounds like it should be well a forum and one that positions itself above agendas like this one but of course it isn't and understanding what the world economic forum actually is will teach us a lot about what this whole proposal is in reality and why even the most staunch rivals to its policies shouldn't be overly afraid of it the world economic forum is a non-government organization probably best known for their annual meetings held in davos switzerland where thousands of wealthy people descend on a small alpine village to talk about all things economics it makes a majority of its money through membership fees which are steep they range anywhere from sixty seven thousand dollars a year to seven hundred thousand dollars per year depending on the level of engagement with the organization so who are these members well obviously very rich people or influential public figures that get complementary invites so by virtue of the fact that it attracts the type of people who can afford this membership it is influential but it's not like the united nations or the international monetary fund or the world bank as much as it would like you to believe that it is it's for lack of a better way of putting it a book club for woke billionaires where the only thing that they discuss are economics textbooks the great reset may as well be the great gatsby it's not really a genuine proposal it's a hypothetical to stir up conversation and maybe a little bit of controversy that's how they get attention which is how they get membership which is how they maintain influence and relevance and now since i have totally destroyed my chances i've ever been invited to davos as a guest speaker to bring this message to you all go and support the channel on patreon it might not make up for those sweet sweet guest speaker dollar you do's but you will be continuing to make these videos possible just like these awesome people did so thanks guys bye

Channel: Economics Explained

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Keywords: what is the great reset, the economics of the great reset, the great reset explained, the great reset economics explained, economics explained great reset, what is the great reset economics explained, how does the great reset work, winston churchill economics, economics explained the great reset, can the economy be reset, how to reset the economy, great reset economics, how the great reset works, how the great reset works economics explained, economics explained

Id: 0mpsro3s5pI

Length: 16min 55sec (1015 seconds)

Published: Sun Dec 06 2020

Reddit Comments

[u/tothemoonandback01]

🦍🦾🥈🚀🌙

[u/thegreyone3000]

They can have their reset, but it's going to be on our fucking terms, not theirs!

[u/SilverbackViking]

🦍🙂🚀🚀🚀🙂🦍

[u/snowy3x3s]

This useless inbred has been taking the piss since the day he first drew breath. Dumb as a box of rocks too!

[u/tothemoonandback01]

🚀🚀🚀🚀