Name: Why the Economy Hasn't Crashed Yet
Uploaded: 2026-02-15T18:22:20.000Z
Duration: 13 min 43 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Last year was a complete catastrophe for the US Economy.

Sentences with advanced comparative

Nobody has shaken the US Economy as much as Donald Trump did last year.

He introduced one of the largest tariffs in the history of the United States.

allies or largest trading partners have moved away from the United States and signed multitrillion dollar deals with India, China and other US all adversaries.

Almost every economist predicted that the US Economy is going to get into a recession last year.

And if that recession is going to last, then it can easily turn into a depression.

In fact, the US GDP last year has actually grown.

Unemployment rate is one of the most important indicators to measure the health of the economy, and

And the US economy has seen unemployment rates way below 4.3%.

In the historical context, 4.3% is actually really great.

Even right before the 2008 financial crisis, at the peak of the real estate bubble, unemployment was 4.6%.

The only other times that it has been lower than 4.3% is right after Covid and right before COVID Other than that, unemployment has been around 4.3%.

For the economy to fall into a recession or a depression, worst case scenario, we have to see unemployment rate that is about 10%.

And as you can see that the US economy is not even close to that.

The real GDP after factoring in inflation, has actually grown last year by 2%.

Yes, 2% is not 5% or 7% as Donald Trump has claimed is going to be.

But overall, if you take that 2% and you put it in the historical context, you will see that it's actually not bad.

The US economy over the last 20 years has been growing by about 2%.

The only two years where the economy has actually collapsed and had a negative GDP growth was either during the Great Recession or during COVID back in 2020.

Other than that, the economy grows anything between 1 to 3%.

And it's really difficult to grow the US economy by more than 3% given how big the US economy is and how advanced it is.

If you very poor economy just by building the basic infrastructure, your GDP is going to grow really fast.

But when you're looking at the US economy, that is the most advanced economy in the world and the largest economy humanity has ever seen, it is very difficult to grow it by anything more than 3%.

So a 2% growth rate when there has been so much tariffs and so many crisises, last year is actually really great inflation.

But recent data that came out for January suggests that inflation has been 2.4%.

S&P 500 last year has grown by almost 12%.

12% is of course not great because over the last three to four years we have seen the stock market grow by 20%.

But you have to take the 12% and you have to compare it to the historical context.

Overall, over the last hundred years, the S&P 500 has been growing by 8 to 10%.

So any number that is higher than 8%, we would consider that a really great year for the S&P 500.

And if you actually been investing at the bottom of the market, because last year has been very catastrophic.

In April, when Donald Trump announced the tariffs, the stock market crashed by about 20%.

But going back to April and May of last year, you can see that the market quickly recovered.

And overall it has been a very positive year for the economy.

So the real question right now is that most people are complaining about the quality of life, most people are complaining about prices, most people are actually thinking or seeing how their lives is getting a lot more difficult.

Well, if you look at the data, the economy is growing.

And that's because the most important way that we measure the economy today is called gdp, Gross Domestic Products.

And the main driver of the GDP is spending.

If there is a lot of spending in the economy, the GDP grows.

If there is very little spending in the economy, the GDP doesn't grows at all.

So if you want to narrow it down to a single word, it is spending.

And the biggest spender in the economy is obviously the U.S. government.

Nobody spends as much as the U.S. government.

And the government last year has spent about $7 trillion.

The real question is that where does government takes the money to spend?

The government raises money from the people like you.

And it has to maintain the world's largest military.

It has to build the basic infrastructure, and it has to pay the social securities.

But if you look at the US Government, the government over the last seven, eight years has been spending way more than its earning.

The government is earning about $5 trillion and is spending about $7 trillion.

And last year the deficit has been $1.8 trillion.

Over the last 10 years, that number has been consistently rising.

The deficit in 2016 has been half a trillion dollars.

So the government is literally just borrowing money and dumping into the economy to see the GDP growth.

So as long as the government keeps spending trillions of dollars, especially when that money is borrowed, the GDP will continue.

Not necessarily means that a better quality life for you.

The second biggest spender in the economy are the businesses.

Businesses are spending because they're building factories, they're hiring more people, they're doing whatever they're doing.

And all of those investments are actually driving spending, which means that they're driving the gdp.

And since AI came out, companies are racing spending astronomical amounts of money to be the first who are going to dominate AI.

And last year, these companies spend the kind of money that you cannot possibly even comprehend.

Microsoft $105 billion, and so on and so forth.

And if you check all of their investments over the last year, it has been probably over a trillion dollars.

And these are just the investments that they have made on AI.

We are not taking into account all other investments throughout the entire economy.

And because there is so much investment without actual real returns, because we don't know how much these AI are going to earn.

Yes, there are theories that AI is going to be the most profitable thing in history and these companies could make a lot of money, but

we don't know what is going to be the return on investment.

But regardless, these companies are taking the bets.

And they have invested over a trillion dollars last year.

In fact, they will continue spending this year as well.

$200 billion by Amazon, $180 billion by Alphabet, and hundreds of billions of dollars by other companies.

And as long as these spendings are happening in the economy, the GDP is certainly going to increase.

The third largest spender in the economy are the consumers.

This is me, this is anybody else who is in the economy is making money and spending that money.

And as long as that money is being spent, it is going to contribute to a GDP growth.

And the society is being divided now into two categories.

The top 20% are seeing their wealth astronomically rise because they're getting wealthier as a result of inflation.

When there is inflation, are prices are rising before prices rise in the grocery store.

And you complain about how prices are rising so fast.

Do you know what prices rise prior to them?

The stock market reacts way faster than the grocery prices in the grocery store.

And that's why the stock market is growing tremendously fast.

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Why the Economy Hasn't Crashed Yet

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