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What gives a dollar bill its value? - Doug Levinson

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View full lesson: http://ed.ted.com/lessons/what-gives-a-dollar-bill-its-value-doug-levinson The value of money is determined by how much (or how little) of it is in circulation. But who makes that decision, and how does their choice affect the economy at large? Doug Levinson takes a trip into the United States Federal Reserve, examining how the people who work there aim to balance the value of the dollar to prevent inflation or deflation. Lesson by Doug Levinson, animation by Qa'ed Mai.
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Text Comments (2210)
Hung Vu (3 days ago)
*problems solved*
Xx[Beat It]xX (10 days ago)
money : oxidizes the us government : "wait, that's illegal"
Omega Ultra (10 days ago)
Ella Fishman (10 days ago)
Right but if or time things get more and more expensive little by little, isnt thatbjust slow but constant inflation?
M Harvey (12 days ago)
Backed by Gold (15 days ago)
The United States needs to restart, firstly the American need to dissolve AIPAC. The federal reserve has to under the control of USA government & not under those private bankers who just issue IOU and loan it to the government instead. The USD need to be back on the Bretton Woods agreement, backed by the Gold standard and not backed by oil that does not belongs to them. Most importantly for creation of real wealth the petrodollars system needs to be dropped.
snic104049 (18 days ago)
30 seconds in, first lie. "Money is printed by the government."
Diestro M. (18 days ago)
Better be studying at Youtube than going to class and listen to Instructors that doesn't understand what they are teaching.
loke arias (18 days ago)
so money is based on trust? stop
Mickiii P (19 days ago)
Bla blah blah ... JEWS .
DooM DooMerson (19 days ago)
An entire video of lies
0:38 pi hiding in the corner
Ben B (24 days ago)
That's also why there's no wall, no barrier to Chinese goods and Trump isn't signing a "Shoot on sight" pardon to allow vigilante action against illegal. The reptoids and globalist bankers would assassinate him. Really, all Trump would need to do to ensure at least a 70s economy is barricade from Chinese imports and sign a pardon for a 'shoot on sight' against illegal aliens. Well, on the latter hopefully he'd announce it 5 weeks ahead so they'd leave first... But, nope, Globalists got him - IF he was ever on the average American's side. Oh, and any Bubba wants to rant? Prove. Me. Wrong. Write a letter. Snail mail. Polite and concise. Tell the Trump campaign you ain't votin unless you get a pardon letting you shoot illegals and those that employ them. You might not vote Democrat, but you sure won't vote Republican. Oh, how was your TAX return? But, nope, don't think you'll even write that letter. Or he'd do anything. You know, we pay TAX to European countries for the "Right" to make types of Cheese in the USA... Serious. You'd think he'd do that at least - "NO taxes to Europe on Cheese. What's next, TEA taxes to the United Kingdom?" Prove me wrong. Write that letter.
سياق و أسواق (26 days ago)
M2/ world oil production is what give the value in terms of real -monetary factors, and the rest is debt + entity securities. That's an answer to it realistically ( how US dollar works now in real life). Before that it was linking the dollar by pricing commodity and mining especially; gold and oil ( trustees) and USA appeared to have been rich using its power of a huge market and natural resources on the means of the manufacturing industry on value added and huge productivity per capital , but today even it is still strong, but not enough it is losing its power forever and the raising powers must take over it not by dividing the shareholders of the world wealth and who is atop gets the most. US had rebuilt Europe and Uk to give them a bite not to be raising power and That is not the case with China and the rest of the world either. They will seek for military power in terms of Russia and China not the one in term of Europe and US ( uk +Canada and other Anglo).
Hitesh Lalwani (1 month ago)
Faith. Like God
Gopal Roy (1 month ago)
USA cheated most countries after ww2 to deposit the gold in its vault and pegged the value of dollar equal to gold ounce, gold standard. Later nixon cheater everybody by removing gold standard and scamming all European counties gold.
Flip flops (1 month ago)
Reserva fracionada, independente é piada kkk
GamerChris167 (1 month ago)
I got to say this is the best stickfigures I ever seen
Shalahuddin Al Ayyubi (1 month ago)
so we don't account for how much gold does a country have?
Pongpol Anuntasilpa (1 month ago)
The best way so far to explain what the inflation and deflation are rather than start by throwing the terminology to a student.
man bitcoin is just superior.
Paul Read (1 month ago)
Zee guy is on money
Paul Read (1 month ago)
I always wondered why is money 💰 so important?
The Thizzmaster (2 months ago)
Humans give it value .
harder face (2 months ago)
I wish you could exchange game currencyes in real money
These stuffs should be taught in schools
LostCaliber (2 months ago)
What happens to the price of a product when demand for it outpaces it's supply ?... It's value increases! So it's the 'Supply v/s Demand' equation that dictates the value of everything. Same holds true for shares in the stock market and the same holds true for currency in the Foreign Exchange (or Forex) market. The more demand a currency has from outside it's parent nation - it increases in value; the more that nation prints it's own currency for local distribution - it decreases in value. Ask any Forex trader about the mechanics of currency if you don't believe me. Also ask yourself 'Which currency is oil traded globally in?'. Soldiers are nothing but cannon fodder and the people in the middle east are nothing but collateral damage. Both are considered by the Rothchild's as easily expendable to maintain USD Hegemony. They will lay waste to entire nations to protect their hegemony. Research on 'Free Energy' or cheap and green sustainable energy sources and also research on what happened to their inventors and why isn't anyone pursuing these technologies amidst a 'Global-Warming' hysteria.?!?!
This would all be a wonderful system if the FED was indeed independent and only committed to serve the common prosperity and the well-being of all people. Instead the FED is primarily interested in the welfare of a small power elite that operates in a tight network. It matters what structures are used to regulate the money supply. As it is, almost all the new money pumped in the economy goes to the top players in the casino. And most money withdrawn from the economy is from the bottom up to the same players. It’s because of this structure, which works beautifully for the upper 5-10 percent, that there is such strong propaganda against the quite reasonable idea of universal basic income and government initiated public works projects. Instead of QE we need UBI.
hyou zan ren (3 months ago)
Is This mean in Fiat money world its a crime to hording too many money since its only lock in banks and not out in circulation?.... No wonder tax in EU is so high!
Alisha Thompson Steel (3 months ago)
Wtf so its useless
Does it depend upon populatio I mean in more population so we need more money to be circulated
szmörf TV (3 months ago)
more goods & services => dollar s value go up
Justin Dean (3 months ago)
The only thing that makes dollars valuable is that if you don’t pay your taxes in with dollars of course you’ll going to prison
Arksy (3 months ago)
when u think inflation is as worse as an atomic bomb 3:26
Gilang Pangestu (3 months ago)
I prefer uses of Gold or Silver or other meaningful resource
A B (3 months ago)
End the Fed
equalism 42 (4 months ago)
I think it is a little more complicated given the level of the US government debt, since money is no longer backed by gold and oil is on the decline....what is keeping value in money today is an illusion of value by the general population, like a house of cards if the value is ever drawn into question with trading partners it could all come tumbling down....that's why China and the middle east are buying up gold like never before.
Game Hacker (4 months ago)
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khor kienjoo (4 months ago)
1:43 Are those lightsabers?
Million Dollar Rabies (4 months ago)
Currency has value because of both taxes and the benefits of paying taxes. If you pay U.S. taxes, you can fluidly move around and do business in The United States without risking government wrath. That is a very valuable state of being to be in, because being able to freely move and acquire large values of goods and services in The United States can be a very pleasant experience.
cd5ssmffan (4 months ago)
chun yan gong (4 months ago)
The money linked to gold is called the gold standard.
Malacki 655 (4 months ago)
The US dollar is counterfeit,the federal reserve create money out of thin air and put interest on it then loan it to the government,if you and i did that we would be arrested for fraud but somehow the fed can get away with it.
Fabián Garavito (4 months ago)
¿What gives gold its value?
adwait naravane (4 months ago)
Burning it isn't illegal
BORATOBIWAN (4 months ago)
Get that us flag off the FED if you know anything you would know it does not belong there
S QQ (4 months ago)
Dollar bills are paper
S QQ (4 months ago)
Sorry is plastic
M Tahir (4 months ago)
Ekrem Selim (4 months ago)
Jordan Bakke (5 months ago)
A dollar bill has value because everyone believes that everyone else believes that it has value. You're willing to work for dollars because you believe that the next person you want to buy food from will value your dollars. They're willing to give you their food for your dollars because they believe the next employee they want to hire will value their dollars. Etc.
SAVAGE308SNIPER (5 months ago)
My balls itch.
y y (5 months ago)
Through this video, I learned that the value of money plays an important role in the economy. I also learned about the correlation between the value of money and inflation and how inflation and deflation would affect the economy. I thought inflation was not good at all, but I found that a small, consistent amount of inflation is necessary to encourage economic growth.
Bar Aviv (5 months ago)
Peter Schiff was right again!
PREMCHAND BEHERA (5 months ago)
Money is valuable not only because of its acceptance as a valuable but also due to clear legislation
Dj Exo (5 months ago)
I thought us cash dollar was worthless because a piece of paper was given to someone for his work that’s like the fed just printing 10 dollars here now pay me this plus interest
OrnGGn Orz (5 months ago)
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SegaMega (5 months ago)
this is nice https://currencyconverter.world/
Art TV (5 months ago)
This video is bull$hit. The government does not print money because the Fed is a privately owned banking cartel no more federal than Federal Express.
Dirty Wash (5 months ago)
The whole video=money is worthless
DDERDEJAN (6 months ago)
How to Create Local Currency: https://drive.google.com/file/d/1kXWDjKJ8Bjd9Fa3UAgmGfCRAqgSKxaV0/view?usp=sharing
Henry Gustav (6 months ago)
Taxes give dollar bill its value.
Henry Gustav (4 months ago)
its what drives the demand for it.
cd5ssmffan (4 months ago)
Observer (6 months ago)
1:30 so banks control our money 😒 Plus how do we know the board of governors aren’t also bankers...
Kagaz Ki (6 months ago)
I'm so *FED* up with this.
B.J. Hubbard (6 months ago)
3:24 lolol
Falling Crane (6 months ago)
_where is trumpet man_
on eman (6 months ago)
This vid is bullocks! This vid , however, will enlighten https://youtu.be/CyWH8NJGRsA
Napp Tyme News (7 months ago)
The Government doesn’t print the dollar bill, they borrow it from the Crooks who Print it. They call themselves the “Federal Reserves” ... they are not Federal and they have no Reserves for the people!
Zes (7 months ago)
wrong, idts. no such thing as value about it.
Zlatan Ibrahimovic (7 months ago)
WOOOOOOOOOOAAAHHHHH just read this. it's debt that gives money its value because when money is created so is an equal amount of debt to the persons name, so the person is obligated to work after they spend that money because they need that money back to pay the debt so it makes that money a valuable thing because people need it and will be punished by the law if they don't get it back in time. money is about slavery
Foxwood Robins (7 months ago)
Not until we run out of food will we realise that we can't eat money.
antwalk 777 (8 months ago)
We are the value it is obvious in order to sell someone has to at the same time be buying. This is why I sell digital products now debtfree trying not to be lazy.
candy girlll (8 months ago)
In other words, without poor people the country would collapse. Problem solved
Louie Maranan (8 months ago)
who realizes at 0:40 the identification number is the first 12 digits of pi PS: the last number, which is 9 isn't the 13th digit of pi so i'm not counting it as the 13th
00rphb (8 months ago)
No the value of the dollar is not dependent on how many of them there is around. It is all about faith, or rather confidence. See fiat currencies are a so called *confidence scheme* it tricks people into accepting things of no value for lots of value. And it is a long scheme, because it started with real money, gold and silver, and then these were gradually removed in favour of the pure ponzi that is fiat.
Sharmella Krishnasamy (8 months ago)
Once i was told, it depends on how much gold the reserve bank owns. That's how british pounds value is always high.
Harry Pitter (8 months ago)
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xxSourWingxx (8 months ago)
if every grows their own food, money would be alot less valuable.
Stick Fighter (8 months ago)
aswini dutt (8 months ago)
Unbelievably simple explanation. Just awestruck ✌️☺️
panser yesthatisall (8 months ago)
So is that why the US needs to keep going to war with countries that questions the dollar's value? If people decided not to care about American goods and services and $, but instead chose to focus on what they deem valuable, why then the dollar wouldn't be worth the paper its printed on would it. Interesting....
Qwerty123 (8 months ago)
Printed by the government??? Uh, wrong.
cd5ssmffan (4 months ago)
+Doug Levinson it's printed mostly by the fed which is a private corporation
Doug Levinson (8 months ago)
Respectfully, you ain't just wrong, you're LOUD wrong. https://en.wikipedia.org/wiki/Bureau_of_Engraving_and_Printing
TESTube (8 months ago)
The power of the dollar is due to US laws promoting freedom and liberty, and the right to not to be robbed by anyone. This is why russian money worth nothing
Canaan Noah (8 months ago)
You all know that the petro dollar is about to crash , there is a dozen or more countries right now that stopped using the petro dollar in oil deals or other forms of trade . China , Russia , Iran , Syria , Venezuela , Brazil , Turkey , North Korea , India agreed to pay for Iranian oil in Iranian currency . etc . The trend to walk away from the petro dollar is unstoppable , therefore , a crash of the us economy is unavoidable .
cd5ssmffan (4 months ago)
what of ukraine? not entirely sure though
TerminallyUnique95 (9 months ago)
Article 1 Section 10 of The Constitution was written because the founders knew that all paper money eventually becomes worthless. The Chinese first used paper currency in the Tang Dynasty and ran into hyperinflation. The Constitution is a guidebook we can't afford to ignore.
SXHMXT (9 months ago)
buyuk oyunu gorduk yiğen
Dontell Benjamin (9 months ago)
Money has value because humans give it value.
Gilang Pangestu (9 months ago)
I hate Fiat Money Gold is the best currency They will always be precious even the government fall out
Bharath Reddy (9 months ago)
I hate this video! It conflates fiat currency with actual money.
GoodGuy Good (9 months ago)
The moment countries stop buying oil using dollar. Dollar = paper
John Burns (9 months ago)
The Fed is a *private* bank.
Hector Riquelme (9 months ago)
Its military capabilities.
Rani Hasan (9 months ago)
My head hurts. Good vid tho.
Khalabib bhat (9 months ago)
So the poor country gets poorer....... A masterminds US
Christopher Boos (9 months ago)
A.) The American Government does not print money, That would be the banks, The American Government only BORROWS money from banks, B.) The Gold Standard wasn't used in the 40s,50s,and 60s,we stopped using it around the great depression
Patrick Seabird (9 months ago)
Not all of the FED's profits are going to the government. 6% are going to the member banks and therefore to private banks!
Hej Principles (9 months ago)
Money is a good for trade primarily. Its value derives from the expectation that it can be exchanged for other goods/services. Therefore it also needs to be a store of value. https://youtu.be/35KwmIq-q8g
Javier L (9 months ago)
I dind't understand deflation. It the dollar is worthier, then you are supposed to buy more things for the same amount of money. So you don't save the money as the video says.
JT Phillips (9 months ago)
I’ve always had this question
Necro Boomer (9 months ago)
Do you know how the “paper” bill is more special than other paper, it isn’t paper
Dylan Wedel (10 months ago)
Why don’t we just print a bunch of money and make everyone rich?!
Facepalm Jesus (10 months ago)
no need for paper money or commodities. ENERGY matters and ENERGY we all consume. Just convert solar/wind to energy and let watts be the new currency

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