Answer to Question #267560 in Economics for Nalyn

Question

Reflection paper about "How the economic machine works" by Ray Dalio

Answer 1

In a 30-minute cartoon, Ray Dalio explains the essence of modern economics. In his book Principles. Life and Work, he notes that governments and international financial institutions do not always make the right economic decisions. From this, he realized that the world needs a simple explanation of how the economic machine works. This will allow politicians and ordinary people to make the right decisions much faster and with less fear of being wrong.

For this, this cartoon was released in 2013. His influence was far greater than Ray Dalio expected. The cartoon was watched by more than 5 million people in 8 languages ​​(including Russian). Several politicians privately confessed to Ray Dalio that the video helped them improve their understanding of economics.

The economy acts as a simple machine. However, many do not understand this - or disagree with it - and this has led to unnecessary economic hardship.