The effect of taxation on the equilibrium price and quantity
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less burgers are now being produced because they won't get the minimum price they want. the surplus from those units are going away. producers also need to pay tax. they cant keep it so the surplus is below the orange line.
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.
+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. Khan was class president in his senior year.
Khan also holds a Master of Business Administration from Harvard Business School."
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.
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Why does the knowledgeable earth prevent the experience?
Why does the mysterious business substantiate the impulse?
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.
I don't want to force you into a hard political question, but how should taxation take place, in your opinion? How high should taxes be? Should it be a progressive of flat income tax, or a consumption tax? [...]
Of course, if you don't want to answer such a polemical issue such as these, you are free not to do it....
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.
Good presentation. There is ONE tax that causes no dead weight loss and that is a tax on land/site values as the supply curve is fixed, the landowners can not pass it on. Hence a tax on land has not only no dead weight loss it actually forces owners of vacant and speculative land to either do something with it or leave it to someone who will use it productively.
or chekc out landvaluetax dot org & wealthandwant dot com
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.
Khan, great video although I'd say one thing - I think what the "dead weight loss" means is really important and perhaps glossed over. I think that the conventional view is that a tax is just money that would have gone to the company going to the government instead. But it's worse than that - the dead weight loss is actually wealth that could have been created which is instead just vaporized. So the net wealth of the whole system is deteriorated, not just reallocated... you know what I mean.
@kuzzlenuzzle My point on this being misleading is that simplifies things that are far complex to be just explained with a graph and two almost linear lines. At the eyes of people with bad intentions they will argue that taxation is wrong, because sincerely I don't think the agenda of this video is other that that. Taxes need to exist if you want to have a working government. Where the money is or is not used, that's other story.
@T0B0KKE The only difference is that the gap between the old supply and the new supply gets bigger as you increase the price, rather than running parallel to it. It's not misleading, and for teaching purposes it's perfectly acceptable to suspend reality.
Besides, lots of countries DO have taxes on goods. They may not be sales taxes in name, but in effect to the consumer they are. Tariffs, any kind of fee at all for producing a good is basically the same thing.
Although foreigners may now invest in A-shares, there is a monthly 20 percent limit on repatriation of funds to foreign countries.
Performance of A-shares.
Since its inception in 1990, including a major reform in 2002, the index has seen great fluctuations. Overall, however, it has grown along with the Chinese economy. The years 2015 to 2016 were a particularly difficult period, with a 52-week performance of -21.55 percent as of July 20, 2016.
As China grows from an emerging market to an advanced economy, there is substantial demand for Chinese equity. Stock exchange regulators continue efforts to make A-shares more broadly available to foreign investors and have them recognized by the global investing community.
In June 2017, the MSCI Emerging Markets Index announced a long-awaited decision it would add stocks to its index. According to CNBC, MSCI will add 222 China A Large Cap stocks to its benchmark emerging markets index gradually beginning in 2018. The MSCI website reveals the stocks it will list include the Bank of China, China Merchants Bank, Guotai Junan, Ping An Insurance, according to a document on Tsingtao Brewery, SAIC Motor, Suning Commerce and Spring Airlines.
Current Dividend Preference.
Participating Preferred Stock.
Convertible Preferred Stock.
Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.
Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.
Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends, plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.
Significance to Investors.