Many people are confused about how the US economy works. While they may have taken an economics class in high school or college, it wasn’t much fun or practical. When they listen to politicians and pundits talk about the economy, it only adds to their confusion.
I was happy to discover recently a terrific video that clearly and concisely explains how borrowing creates cycles in economic activity. The video was created by Ray Dalio, the founder and CEO of Bridgewater Associates. While most people have heard of Warren Buffett, there are two titans in the world of investing: Ray Dalio and Warren Buffett. They each came from humble backgrounds and went on to create extraordinarily successful investment management companies.
Dalio created the video to share his views with as large an audience as possible about how the economy works. Nothing as important as the economy can be explained in a typical 90 second YouTube video. But Dalio’s 30-minute animated video is worth the investment of time.
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