It’s time for another episode of Get Rich Slowly Theater, boys and girls! This week, we’re going to enjoy a thirty-minute YouTube video exploring how the economy works. Think of it as Economics 101, but instead of a semester spent sitting in a classroom, you get all of the info in the time it would take you to watch an episode of Big Bang Theory.
Here’s the video:
This animated presentation, written and narrated by billionaire investor Ray Dalio, breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work, and why economic cycles occur.
Basically, Dalio says, economic cycles are a combintation of productivity growth, short-term debt cycles, and the long-term debt cycle. It sounds boring, but it’s not.
This is the model Dalio uses to view the world and make big bucks. He thinks it can be helpful to other people.
If, like me, you’re not a huge fan of watching videos, I’ve paraphrased Dalio’s presentation below. [Read more…]