I’d break my back to get a party run by people like Gary into power. Run on economics that WORK! Our country is really finished if we don’t have 10+ years of great economic policy and amazing governance. We’re 5 bad years from being maybe the 8th or 9th richest country. And our Gini coefficient ( matrices on poverty ) has fallen off a cliff.
Not saying he doesn’t have good points but everyone looks a genius talking from their armchair and never having their ideas tested or questioned. Yeah I know he’s made millions trading but a neurosurgeon is not necessarily also a good heart surgeon. I’d prefer if his video format was a live Q&A. Some things he said imo don’t add up and I would like clarification.
@@jayandgem I mean he walked away from MOAR! There’s few people who only have to stay put and make all the money but they walk away because they know how the money is being made. He has already been tested. He passed.
Love Gary’s breakdowns of what’s “really” going on around us. Refreshing to see an Incredibly sharp guy who hasn’t abandoned his working class heart. Please keep up the great work!
The clever man spends many hours learning how to read books, the wise man spends many hours learning how to read people. #dyslexia #dyslexic #unorthodox #business #howtobeamillionaire #howtobuildwealth
Yes it takes a certain type of person - someone who genuinely explains the topic down to the fundamentals, and who isnt so morallly corrupt to not just take the money and run
I don't know why I only "discovered" you yesterday, but you articulate so well what I and a friend suspected was happening back in 2020. Thank you for your clarity and work!
Bro I’m addicted to your videos! I have always been interested in money / banking / economics but never really understood all of the workings behind the yellow tape. However the way you articulate and break everything down is spot on! Thank you bro 👊🏾👌🏾👏🏾
I’m not sure inflation will be coming down anytime soon. The government is in a ton of debt and is trying to inflate its way out of it. Same for the wealthy elite, inflation is good for them because it means their debt is less. The only thing that could help bring down inflation despite the government is AI, but that will be at the cost of employment, and it’s not yet clear whether the government will allow it.
Charles Eisenstein used a powerful analogy for never enough money in a recent video on his channel called Sacred Economics, The Stand 2023. He likened the current system to a game of musical chairs where you have everything at stake if you can’t find a chair when the music stops. He says, the question is, who decided we need to remove chairs in the first place.
It's not just mortgages that are affected by interest rates, it's every single thing that's bought on credit, from your builder's van to your factory's production line to your neighbour's washing machine, flat screen TV, etc. The more marginal your circumstance the more likely you are to buy goods on credit. And although the intent of interest raises is to restrict the money supply so as to hold prices down, for a large part of the population that effectively increases inflation.
I don’t know about anyone else but I need to watch this 2 or three times to really understand it. But some early constructive criticism… We need to stop saying ‘tax the rich’ It has a stigma to it. People who we need to bring with us switch off when they hear it. Maybe say tax wealth or tax passive income. Thanks for my weekly economics lesson Gary. It’s helps me understand money, class and hierarchy.
When really all we are asking is that they pay the same rate of tax as those of us whose money comes from wages, earned income. How is it fair that Rishi Sunak only pays 22 % tax on the millions that his money makes.
Surely all we are asking is that the rich pay their fair share. Why should they pay less tax than those of us on PAYE. Rishi Sunak only paid 22% tax on his millions. He is happy to raise our taxes, how is it fair that tax laws favour the rich. I just want them to pay their fair share, goodness knows they can afford it, they don’t wind up at food banks because of rising prices. Oh, and Non Dom status must be removed.
hahaha just found your Chanel out today and have been watching a couple of videos, I couldn't help but look when this video was made because you actually predicted what happened with inflation that it would eventually drop,and not only that rishi sunak and Jeremy hunt both came out last month claiming it as a political win for their Conservative party that they had help cause the drop in inflation, you predicted this 7 months ago, please keep up the good work.
@@m_b4 Absolutely. Had House prices been accurately including in the inflation rate and adjusted for things would have been relatively stable over the past 20 years. "The bad news. Food inflation is 20%. The good news (for first time buyers) inflation is under 1% as house prices have dropped 10%.
Very similar situation in Australia, although our cash rate isn't as high as yours, the rate of increase has been much faster. I like this guy - no BS 👏
Would love if Gary did some in-depth analysis of other countries, like Australia because I live here, but also China, India, these massive economic powerhouses that don't seem to get much coverage in the mainstream news.
Everyone should try to get their friends family and MPs to watch this. I know young people who are so grateful that I bang on about this, but it needs all of us to share this! Barb
Thank you Gary, amazing how you explain a complex topic like fiscal and monetary policy to the average Joe, in such a simple way! The Conservative party is going to be HAMMERED in the next election!
You do work where others turn a blind eye, Gary. Sincerity and integrity are the greatest of things, keep it up. Remind me of Paul Mason's influence in the GFC around 2010. I have just started binge watching your channel after the shout on LBC Radio this morning with James O'brien. Greetings from Spain.
Hope this channel becomes more popular , fat chance the main stream media are gonna talk about this . They are never gonna blame the government they work for .
Hi dear Gary, please prepare yourself to become our country’s leader, we need such a person like you for the whole downtrodden human of the world. Show them how the wealth should be distributed. Regards
Great stuff @garyseconomics! I wish this was on TV , this whole channel series. This and Martin Lewis and minds of people woudl start opening up and brains ticking. I wish I understood all this much much earlier in my life. I have introduced this channel to my 17 yo as GAry is so relatable for the younger audiences. Bring thi sto schools
Always enjoy your videos, Gary. I think a large part of the audience is interested to see you unpack the theory behind this with graphs and case studies and what not. Maybe you're worried that sort of video would be too slow or dry but I reckon a good chunk of this audience are massive nerds like me.
No, humble barely educated person here. I just acknowledge the real evidence of destruction and despair I see around me. Ordinary people can't afford a roof over their heads, elderly people not being able to afford the rapacious privatised nursing homes and care companies, degrees becoming unaffordable and the super rich making eye watering amounts of profit not to mention what they have hidden off shore. Also, small businesses being strangled in favour of the trans national mega corporation. I could go on but I think the picture is clear.
A massive collapse in house prices of 50% would bring the average house price in London to 7.5x the average median LONDON salary. Figures per Land Registry and ONS. Absolutely ridiculous and unsustainable system.
That's why London is dead. Where are the artists? Shoreditch was affordable 30 years ago. Nowhere is affordable now. London has lost its characters, they've been priced out or trapped into safe careers by large debts.
Due to govt policy we now have to compete with the poorest people in the world for jobs (driving down wages) and with the richest people in the world for housing (completely unsustainable)..
And that’s before the vulture funds. Investors who throw in a decent chunk of money to a manager who waits & goes to the foreclosure auctions & gets houses dirt cheap then does them up & when the stimulus comes in ( it always has so far ) They get new renters into cheap assets & get richer than ever.
Unfortunately you are preaching to the converted. The people I know who own their own house, even those with a mortgage see increasing house prices as a good thing and those who aspire to own their own property are still desperate to be allowed to take on ever increasing amounts of debt to ‘get on the property ladder’. The majority of people still buy into the rise in interest in rates was due to the war in Ukraine, and increasing house prices and lowering taxes, including for the rich both being a good thing.
I think he feels if he can get this out to as many people as possible hopefully minds may change eventually. It will be a long slog, admittedly, but he has started to appear on MSM.
The super wealthy, the ones he continually wants to be taxed, own mainstream media. There’s no way his message will become widespread. He is not censored because that will make a martyr out of him. Instead, when he goes in media channels, the goons/puppets of the super wealthy will attempt to dilute, distract or even confuse his message. The middle to high income earners watch the media channels and presume he’s going after them when actually he means the people who own the companies these high income earners work at.
You need at least TWO houses to benefit from the rise in house prices, because you will always need a roof over your head. It's not complicated, and means watching a lot of TV and limiting expenditure to pay the first house off early, to then get the loan for the second one. 🎉
Thanks for explaining all of this. I have watched your interview on Insider and since then I have watched many videos on your channel. Eventhough I don't live in the UK, the concepts you explain help me to understand how the world works and to a similar extent the situation here as well.
Another really interesting video, thanks Gary. A quick but if feedback - the audio in your videos is always a bit quiet compared to other channels. This makes listening whilst making dinner or something a bit challenging. If the Audi could be mastered to a higher volume output (without clipping) that would really help listeners like me with noisy kids etc.
Well your taxed more to start with as you have the 2nd home tax, then as you can only claim 20% of your mortgage payment against your tax that’s another cut. I look at it from another perspective, if I own some properties which will keep me comfortable in my old age, I’m still going to paying tax when I’m retired on my properties and private pension, therefore I’m not going to be claiming benefits and taking out of the system, I will still be contributing. Am I wealthy ? No , am in rich? In comparison to some yes in comparison to others no, no way. But it’s so easy to say ‘tax the rich’ I believe there should be ‘tax breaks’ for entrepreneurs who take risks that helps employ a lot of people, which in turn gives these employed people a chance to purchase their own properties and maybe a buy to let or whatever they wish to spend their hard earned money on. Why to people bash someone who has been sensible with their money?
The other lever I expect the gov to try and push through lenders is to increase mortgage terms, to say 40 years, thus making monthly payments more affordable and giving the rich more money on their asset in terms of interest. Maybe more than 40 years, just to keep prices up
I'm sure I remember at some point, BoJo mentioning "multigenerational" mortgage terms at some point, where 50-70 years mortgages could exist and you pass on the debt to your kids. Horrendous for us but amazing for the wealthy.
It’s crazy that the governments answer to a lack of housing and prices beyond the means of average earners is to push prices higher and reduce building. Anything to keep wealth at the top and stamp duty thresholds static. We will be working to 80 to reduce the liability handed down to our middle aged children. I will add I have been lucky enough to make it onto the property ladder thanks to parents help, and it still makes no sense to me
@@Pikey4321 i had comment Where I explained it on one of Gary’s video’s. It makes people able to afford stuff while being paid less. Keeps asset prices from tumbling & gives the rich hard power over families by basically forcing indentured servitude in by the back door. Debtors prisons & the whole infrastructure would come with it. Oh and these would be a valuable asset to be sold when packaged on the market. The rich love that!
Gary, could you make a video on what you would do if you were PM/CotE and address all of the angles the current government and opposition use to not do those things? I'd love it to consider the longer term rather than just a single 5 year period. Thanks and keep up the great work. You're one of the heroes we need right now.
Unreal insight as usual. It would be nice if you could connect rich people giving out mortgates to how we all see mortgages, where you go to the banks like natwest etc and give the right paperwork and get given a rate etc. Like you talk about how rich people use mortgages to get assets like renting, but we normally get mortages from the bank so wheres the connection there? Great video dude I tell everyone I know about you!
Gary you are explaining this perfectly and I thank you for the knowledge you are passing on. I saw you the other day cycling through Algate and wanted to say hi but it was a busy junction 😅
Great explanation... Also note Inflation can be caused by Supply and Demand.... Covid had alot of money and demand for goods as people were being paid to not work....NOW the supply chains are the issue where the demand is still there but supply is in a choke hold.
Hi Gary, superb content as always, thank you, please keep speaking truth to power. I also think your presentation skills, editing and formatting, and ability to be concise and deliver ideas in a calm, diplomatic way is improving... while I also love your more ranting and heated energy in previous videos, I think your recent content and personality presentation is taking on the glossy mainstream 'veneer' that unfortunately seems necessary to get more comfy upper middle class people willing to listen and take you/this information seriously. 😂 When people scrabbling round at the bottom bring any of these ideas up we're inevitably seen as resentful, uneducated, lazy, bitter people coming with guillotines, when mostly we just want more equality and to have a decent life without endless struggle and debt to just stay afloat. So, a wealthy educated person like you advocating for these ideas more and more eloquently is an enormous help for the conversation to progress I think. Would you consider please breaking down the topic of student debt schemes and student debt interest rates etc. - UK and USA. This is another huge financial elephant in the room for my generation who were brainwashed into the myth that "investing" in our education could give us more opportunities, equity, and social mobility, when in fact for most of us it just shoved us further down the food chain before we even fully entered society. Now many are burdened with a form of debt which is a strike against them against other more "productive" forms of borrowing, provides next to nothing in return (depending on the degree paid for), and no assets whatsoever to show for it all at the end of repayment (if they ever reach the end, many probably never will until their 70s). I'm curious how you would break this down... other than please explaining to the next generation why for most people it's not worth the risk to borrow heavily just to go to school! I don't want more young people to have their futures jeopardised by this kind of crushing dread and despair I have to face every day because of a shitty, unqualified, uninformed decision I was encouraged to make in my teens. I am going to spend the rest of my working life arbitrarily owing money to very rich men who own and sell my debt amongst themselves. Decades of useless debt just for being a working class woman daring to get a degree. Please please talk about this. We need to have our dilemna heard and understood just as much as those struggling with a mortgage.
Yep for the majority of people it is far better to do an apprenticeship and go into a trade than to go to uni. I know that's what I'd do if I could do my 20s over again.
I do not understand why when it comes to inflation no one talks about how all supermarkets and British gas and Centrica have increased their profits by many folds, for example Tesco has tripled its profit. The top 4 supermarkets increased their profit by 42%. British gas and Centrica have forecast an eightfold rise in earnings.
Tesco profits have been all over the place. Where did you get 'tripled' from? And since when? Why do people make such pointless comments without facts? As for people not talking about energy companies' profits, yes they have, a lot of talking. Starmer is constantly talking about all that money on the table and windfall taxes were implemented, a bit.
Dear Gary. Thank you from the bottom of our hearts to opening up our eyes to see what is really going on in the financial systems of this world. I have question: When you keep saying during Covid government printed out a lot of money and gave it to very wealthy individuals. Who are these individuals? Why was the money handed out to them instead of the regular people who needed the money as they lost their jobs and income ? How could the economy have been sustaining if the regular folks weren’t given money to spend ? Why is the government afraid to tax the rich ? Is there something fundamentally wrong here which means to say who is exactly in charge of a country - the rich or the government?
a huge percentage of the residential market in the UK is moving to a build-to-rent model. institutional investors (mainly pension funds and insurers) fund developers to deliver them large, purpose-built developments for rent only (generally 300 - 1000 apartments). apartment developments in city centres initially, now broadening into single family housing, ie typical houses, out in the towns and villages. the trend is accelerating massively so there might not be much property to buy in 10 years time.
The reason it’s so depressing is because there’s no way to make it happen. The government, Tory or “Labour” (aka Tory lite), will never ever tax the rich. They’ll let the poor starve before they do that. And as long as there are people worse off than them the middle classes will never vote to change things. They’ll just blame it on the money we spend to help people survive.
The world is going to see some big changes soon. When will all this neoliberal wizardry hit the buffers? Ever since the 1980's they have printed money and thrown it at the problem - boost liquidity. The dollar hegemon is now under threat from an Eastern reserve currency & payment systems. Oil is no longer sold exclusively in dollars. The west is being isolated from the rest of the world. The global south backs Russia & China. Games up for the colonial masters.
Things will change if the middle and working class realise they have more similarity with eachother if much difference at all than the owners, who will eventually own everything i.e. bourgeoisie, capitalists, elite, upper
Gary is rich but wasn’t born into wealth, so he is down to earth and hasn’t lost his morals. If he were Prime Minister, I believe he would push for firmer taxation policies that actually work to tax the rich without leaving loopholes for the rich to exploit. Sadly, Gary, I think your very honesty and the fact that you came from humble beginnings means that you won’t make into the Eaton club and therefore, into Number 10. I say that with great disappointment by the way, as I think you’re exactly what we need to reduce inequality and raise living standards in this country. You’ve got my vote for sure!!
Great video, Gary, and an incredibly important topic. With a "black belt" in inflation economics, I just want to clarify that the wealthy actually benefit both when interest rates are lowered and when they’re raised, but in different ways. The fundamental issue in today’s economy is therefore not the interest rate itself, but rather how inflation is measured. What we call inflation is only a consumption inflation, which reflects just about 25% of the total economy. In fact, 75% of our economy is instead linked to our asset inflation. Furthermore, consumption inflation isn’t driven by interest rates but rather by production costs, which in turn are influenced by global instabilities. Meanwhile, asset inflation is primarily driven by our interest rates. But, as mentioned, that part isn’t included. If the central bank had instead adjusted the policy rate based on the economic cycle, market fluctuations and likely the financial gap would have been smaller. It would be super interesting if you could do an episode diving deeply into this issue. Clear up misunderstandings and demonstrate how the central bank and politicians should actually act.
Also keep in mind that inflation is also hitting poorer families more not just because they were already struggling with the cost of living. But general products used by everyday people have gone up much higher than the 18% inflation figure for example Pepsi Max 2 litre bottle was £1 a year ago now it's 2 that's 100% inflation.
It’s because the cheapest stuff has most demand. More people can almost afford that. So more pull with equal supply. Prices go up faster. Just another thing that makes the poor even poorer.
@@T1tusCr0w demand inelastic giffen goods. They are a) essential b) have a demand pressure because poorer consumers were previously buying them, now those with relatively high income to those have stopped buying the more expensive products. Thus all that demand gets pulled into specific items that are on the lower end of and inferior to alternatives. So for the poorer consumer there is no 'lower alternative' though, to transfer and save money with, they take the hardest brunt of all the concentrated demand.
@@jorriffhdhtrsegg yes exactly. There is no substitute to go to down the scale so demand on the cheapest goods grows. & as more wealthy people suffer the pinch they substitute from better goods to cheaper ones too thus increasing the demand even more.
I‘m impressed how like every word and forecast you made actually happend. They stopped increasing. Now they are cutting rates. I‘m wondering how and why did the money during covid end up on the richs bank accounts?
I think there is another factor that is slowing the rental market down - landlords are not coming into the market, in fact they are exiting the market because the government has taxed this particular part of the economy to death. It's just not worth it financially and also legislation has increased risk to landlords.
Inflation is relative to a person's lifestyle, not constant for all people. If you own your house inflation is a good thing, especially with a fixed rate mortgage. Your fixed rate payment goes down with inflation as you get more dollars in work. For renters inflation is a serious problem. Rents go up with inflation. Housing is 25-30% of the inflation number. After that you have choices. Not every product goes up the same amount. A person can scale back on things that go up, switch to things that haven't. That lowers your personal inflation number (how much inflation affects you).
Am I right in thinking that the government has a choice between rising house prices and a growing economy? You can have one but not both! It's more profitable for banks to lend the credit they create to property speculators (so keeping the house price rising) rather than lend it to small and medium size businesses (which would grow the economy). Many thanks for a very informative clip!
You'll also notice because we live in an upside down crazy country, a lot of everyday items rich people are less likely to buy have had much higher inflation than products richer people are more likely to buy, unless they are investment purchases of course.
This is the first video where i've seen the Wealthy lending the money for the mortgages rather than owning the underlying property. Previously the discussion is the properties transferring to the rich, is this a 2 tier where rich are either buying to let, or lending Landlords some of the funds? Why would the rich not want to benefit from the rising asset prices and instead lend the money at the prevailing interest rate potentially at or under inflation? Thanks for the informative content
Time. Being a landlord and owning the asset yourself takes up time, effort, energy, physical presence and takes up your mental load. Even if you outsource parts of this to a ‘hands off managed service’ estate agents who let it on your behalf, you still have to do admin paperwork for it, deal with tenants not paying, damaging property etc. Its easier to sell the asset via a mortgage to a poorer person, because yes you get back less than if you still owned it, but by selling it, and earning the interest, it’s truly passive income. No work required AT ALL. Even if the interest rate of return is at or below inflation, investors still do it, to manage or balance risk in their portfolio, diversify their assets, in lower yield/lower risk assets like mortgage interest debt.
I don't agree with Gary's view that poor people are just victims but he's spot on with the patterns and mechanics of the financial and political system.
Very interesting video. In terms of inflation, it seems that corporate profiteering is also massively contributing, considering the outsized profits many have been reporting. Just look at the energy sector alone. That obviously does further contribute towards inequality, but taxing corporations with outsized profits also needs to be part of the political agenda.
Yes so many companies use inflation as an excuse to raise prices exorbitantly. Its disgraceful. Supermarkets in Australia are making record profits while families struggle to afford food and rent! And the govt does nothing. It makes my blood boil.
I agree with taxing the rich, but till then we can take a few drastic steps to stop the house prices for going higher: 1. no mortgages should be allowed for second homes (only after you agree to sell the first home). Cash buyers only. 2. no corporation should be allowed to own a living space 3. taxation on income from rent should be increased gradually to the same threshold of taxation for high earners (45%).
Gary, how did the Govt give all this Covid money to the rich? I thought the Govt was giving money to people to pay the rent and run their small businesses. Can you explain please?
@@garyseconomics thank you for that. I did actually find it and it makes sense now. I was trying out explaining all your theories (which have built upon what I started to see 20 years ago in Canada) to a friend. He thought my insights were bang on and that I was ever so smart. Of course I am but you, my friend, are smarter. You are really onto something. I support you 100%. I just hope you do not 'sell out' when your success grows.
It is typically argued that inflation is the rate of increase in prices but should be better explained as a rate at which your work looses value and therefore you need more money for the same amount of work. In other words, you better speed up because the rate at which you accumulate money goes down since each unit of measurement lost value. Because that is what really is happening. And this is particularly difficult for the people paid by hour since their productivity is measured mainly by hours worked for with fixed amount of money but the value created in one hour vent down artificially through inflation. Is it any wonder that despite the massive gains in productivity we are still finding it hard to get ahead when inflation cancels the productivity gains? Who is robbing us? Who benefits? And more importantly what is really happening? Did the value disappear?
My labour has been devalued by 10% and I still haven't worked out where it's going. I'd be up for an episode "what happens if we all default our mortgage at the same time so even the bailiffs end up with Notices on their digs"
It is a zero sum game - the money has/is going somewhere. We hear the usual suspects: Covid, Russia and in the UK, Brexit and Truss but the Greed Hoover is still fully functional taking the dosh away from all to the few. Companies and entire Countries are doing well. For some in short and others in long. They carefully prepare their future horses ready for when they are forced to dismount the old.
I'm loving these Sunday morning videos Gary. Here's a question for you. If the UK's national deficit continues to rise, keeping in mind that it's already 100% of GDP, will we eventually reach a point where the interest on the debt accumulates faster than it can be paid off? If so, what happens then?
Japan's Sovereign debt-to-GDP ratio is 200%. What happened then? Multiple Rounds of QE as Bank Reserves given to Banks designated to make their balance sheets look good, but neutralising their ability to borrow or lend to the Real Economy, because they can't raise capital by taking deposits, nor can they raise capital from the international capital markets. Through QE, the Bank of Japan is the biggest owner of assets in Japan. Why?
I think we have a way to go get as the government can keep inflation high which will artificially raise GDP and devalue the debt. Ideally you also actually raise GDP but it’s pretty hard to do. So what’s going to happen, now that’s a difficult question to answer. We’ve already delinked currency with gold and instead linked it with the dollar under the premise that we can always get a certain quantity of gold for the currency. Then that was gotten rid of in the 70s so now the dollar is worth something because it’s generally accepted as such and it’s backed by nothing. Where do we go from here. There will be some kind of crash at some point and it’ll all change again. Whether that be just write off government debt by the same amount in all countries or china becomes the new main currency. Who knows. All I know is it’ll impact everyone and there’s nothing I can do about it.
@Jon P Thanks Jon. It makes for interesting speculation, doesn't it. I completely agree that governments will do absolutely everything in their power to keep the train on the rails for as long as possible. My worry is that by kicking the can down the road with QE, the deficit has grown to the point where defaulting on it is becoming more and more likely. When you look at the rest of Europe's debt to GDP (Greece - 178%, Italy - 147%, Portugal - 120%, Spain 115%, France - 113%) it would only take one country to default to start a house of cards effect. That's before you start getting into the rumours about a new BRICS currency to rival the dollar and the lengths America would be willing to go to to keep its position as top dog.
It is my view that wealth flows upwards, and it is the job of the govt to make the wealthy spend their money. This could mean through investing in the economy to fuel growth, or through taxation. Unfortunately we have a govt that doesn’t seem interested in either option.
This man was spot on. 10/2024 and government tried to take credit for drop in inflation.
Wow
In the modern world this man should be our Chancellor In a new Political party created for the Young people of Britain
Not just young people, I am in my 70’s and a huge fan.
@@tonychorley4936 Correct
I’d break my back to get a party run by people like Gary into power. Run on economics that WORK! Our country is really finished if we don’t have 10+ years of great economic policy and amazing governance. We’re 5 bad years from being maybe the 8th or 9th richest country. And our Gini coefficient ( matrices on poverty ) has fallen off a cliff.
Not saying he doesn’t have good points but everyone looks a genius talking from their armchair and never having their ideas tested or questioned. Yeah I know he’s made millions trading but a neurosurgeon is not necessarily also a good heart surgeon.
I’d prefer if his video format was a live Q&A. Some things he said imo don’t add up and I would like clarification.
@@jayandgem I mean he walked away from MOAR! There’s few people who only have to stay put and make all the money but they walk away because they know how the money is being made. He has already been tested. He passed.
Love Gary’s breakdowns of what’s “really” going on around us. Refreshing to see an Incredibly sharp guy who hasn’t abandoned his working class heart. Please keep up the great work!
The clever man spends many hours learning how to read books, the wise man spends many hours learning how to read people.
#dyslexia #dyslexic #unorthodox #business #howtobeamillionaire
#howtobuildwealth
Yes it takes a certain type of person - someone who genuinely explains the topic down to the fundamentals, and who isnt so morallly corrupt to not just take the money and run
"What you're seeing here is kind of the death throes of an economy which has given up on taxing the rich." Wow.
I don't know why I only "discovered" you yesterday, but you articulate so well what I and a friend suspected was happening back in 2020. Thank you for your clarity and work!
Confirmation bias?
Bro I’m addicted to your videos! I have always been interested in money / banking / economics but never really understood all of the workings behind the yellow tape. However the way you articulate and break everything down is spot on!
Thank you bro 👊🏾👌🏾👏🏾
This guy is a genius!
Brilliant explanations Gary, this country is so far in the gutter/sewer people can't even begin to picture the mess
This government is so dirty it wouldn't be welcome in the sewer.
I’m not sure inflation will be coming down anytime soon. The government is in a ton of debt and is trying to inflate its way out of it. Same for the wealthy elite, inflation is good for them because it means their debt is less. The only thing that could help bring down inflation despite the government is AI, but that will be at the cost of employment, and it’s not yet clear whether the government will allow it.
I hope we see more of Gary on TV and media to get this message out there, we desperately need taxation reform for the rich
My wife and I have both worked full time (and more) for over 40 years. We have some savings, property and investments. How much of it do you want?
@@lesleywillis6177 You're not rich
You obviously haven’t paid attention. You aren’t the rich he is referring too
Listen & learn
@@break1722 that is an absolutely ridiculous thing to say
Charles Eisenstein used a powerful analogy for never enough money in a recent video on his channel called Sacred Economics, The Stand 2023. He likened the current system to a game of musical chairs where you have everything at stake if you can’t find a chair when the music stops. He says, the question is, who decided we need to remove chairs in the first place.
It's not just mortgages that are affected by interest rates, it's every single thing that's bought on credit, from your builder's van to your factory's production line to your neighbour's washing machine, flat screen TV, etc. The more marginal your circumstance the more likely you are to buy goods on credit. And although the intent of interest raises is to restrict the money supply so as to hold prices down, for a large part of the population that effectively increases inflation.
1 year later.... superb predictions!!!!!!!!!!
This is from 18 months ago actually - I'm good at this!
Dang you should go into banking or something man
I don’t know about anyone else but I need to watch this 2 or three times to really understand it.
But some early constructive criticism…
We need to stop saying ‘tax the rich’
It has a stigma to it. People who we need to bring with us switch off when they hear it.
Maybe say tax wealth or tax passive income.
Thanks for my weekly economics lesson Gary. It’s helps me understand money, class and hierarchy.
Sadly some will still see that as taxing ambition, aspiration and perceived hard work.
When really all we are asking is that they pay the same rate of tax as those of us whose money comes from wages, earned income. How is it fair that Rishi Sunak only pays 22 % tax on the millions that his money makes.
Surely all we are asking is that the rich pay their fair share. Why should they pay less tax than those of us on PAYE. Rishi Sunak only paid 22% tax on his millions. He is happy to raise our taxes, how is it fair that tax laws favour the rich. I just want them to pay their fair share, goodness knows they can afford it, they don’t wind up at food banks because of rising prices. Oh, and Non Dom status must be removed.
@@bluevan12 I agree. That cohort are not who we need to convince in the short term though.
@@tonychorley4936 exactly!
People’s brains are so boiled. If you describe it as ‘taxing the Rich’ it goes over their heads.
We need to get this channel up to 10M+ subs to have any chance changing tax policy. Let's go!
hahaha just found your Chanel out today and have been watching a couple of videos, I couldn't help but look when this video was made because you actually predicted what happened with inflation that it would eventually drop,and not only that rishi sunak and Jeremy hunt both came out last month claiming it as a political win for their Conservative party that they had help cause the drop in inflation, you predicted this 7 months ago, please keep up the good work.
Thanks for all your work Gary, what you’re doing is hugely important. Keep it up !
My mortgage is up by 400 quid per month. Thank you Lizzie.
I think this one is on Rishi because he was chancellor during the pandemic years
You're still being paid to borrow. Unlike a saver without a mortgage who is having their savings devalued by inflation.
@@m_b4 Only being paid to borrow if your wages are rising in line with inflation. Which noone's is.
@@RedmotionGames so when house prices go up (house price inflation) you'll be calling for higher interest rates right?
@@m_b4 Absolutely. Had House prices been accurately including in the inflation rate and adjusted for things would have been relatively stable over the past 20 years. "The bad news. Food inflation is 20%. The good news (for first time buyers) inflation is under 1% as house prices have dropped 10%.
Hit the like button to get youtube to spread this message far and wide
And comment for the algorithm!
Nailed it! Extra wealth Tax on ppl with 10 million and up 🎉🎉🎉🎉🎉🎉
Very similar situation in Australia, although our cash rate isn't as high as yours, the rate of increase has been much faster. I like this guy - no BS 👏
Would love if Gary did some in-depth analysis of other countries, like Australia because I live here, but also China, India, these massive economic powerhouses that don't seem to get much coverage in the mainstream news.
Gary Stevenson…
Financial insight second to none.
Political insight nonexistent.
Which unfortunately means that Gary isn’t able to offer any solutions
Gawd I feel old, this year I've switched to sensible shoes, talk radio and loving finance channels like this one. Thanks Gary!
Everyone should try to get their friends family and MPs to watch this. I know young people who are so grateful that I bang on about this, but it needs all of us to share this! Barb
Thank you Gary, amazing how you explain a complex topic like fiscal and monetary policy to the average Joe, in such a simple way! The Conservative party is going to be HAMMERED in the next election!
You do work where others turn a blind eye, Gary. Sincerity and integrity are the greatest of things, keep it up. Remind me of Paul Mason's influence in the GFC around 2010. I have just started binge watching your channel after the shout on LBC Radio this morning with James O'brien. Greetings from Spain.
Hope this channel becomes more popular , fat chance the main stream media are gonna talk about this . They are never gonna blame the government they work for .
Hi dear Gary, please prepare yourself to become our country’s leader, we need such a person like you for the whole downtrodden human of the world. Show them how the wealth should be distributed. Regards
Great stuff @garyseconomics! I wish this was on TV , this whole channel series. This and Martin Lewis and minds of people woudl start opening up and brains ticking. I wish I understood all this much much earlier in my life. I have introduced this channel to my 17 yo as GAry is so relatable for the younger audiences. Bring thi sto schools
Always enjoy your videos, Gary. I think a large part of the audience is interested to see you unpack the theory behind this with graphs and case studies and what not. Maybe you're worried that sort of video would be too slow or dry but I reckon a good chunk of this audience are massive nerds like me.
A good graph can show in a second concepts that take a while to explain.
No, humble barely educated person here. I just acknowledge the real evidence of destruction and despair I see around me. Ordinary people can't afford a roof over their heads, elderly people not being able to afford the rapacious privatised nursing homes and care companies, degrees becoming unaffordable and the super rich making eye watering amounts of profit not to mention what they have hidden off shore. Also, small businesses being strangled in favour of the trans national mega corporation. I could go on but I think the picture is clear.
Yup, I love visual illustrations and graphs, makes me get concepts just like that.
Yes please!
Absolute hero. Keep it up Gary!
Thank you for your clarity Gary. Your explanations are hugely helpful.
A massive collapse in house prices of 50% would bring the average house price in London to 7.5x the average median LONDON salary. Figures per Land Registry and ONS. Absolutely ridiculous and unsustainable system.
Yup
That's why London is dead. Where are the artists? Shoreditch was affordable 30 years ago. Nowhere is affordable now. London has lost its characters, they've been priced out or trapped into safe careers by large debts.
London property is an investment diversification strategy for the global rich.
Due to govt policy we now have to compete with the poorest people in the world for jobs (driving down wages) and with the richest people in the world for housing (completely unsustainable)..
And what will ulez on top of that do to London
When interests rates go up the rich only benefit ,they never suffer.
And that’s before the vulture funds. Investors who throw in a decent chunk of money to a manager who waits & goes to the foreclosure auctions & gets houses dirt cheap then does them up & when the stimulus comes in ( it always has so far ) They get new renters into cheap assets & get richer than ever.
Bingo, inequality has never been wider as it is now in my lifetime. Great work.
Thank you for the clarity in explaining 12 plus years of Tory policy!!!
Unfortunately you are preaching to the converted. The people I know who own their own house, even those with a mortgage see increasing house prices as a good thing and those who aspire to own their own property are still desperate to be allowed to take on ever increasing amounts of debt to ‘get on the property ladder’. The majority of people still buy into the rise in interest in rates was due to the war in Ukraine, and increasing house prices and lowering taxes, including for the rich both being a good thing.
I look at the house prices & laugh, as it's not worth that in actual reality. Housing is a giant Ponzi scheme in a way
I think he feels if he can get this out to as many people as possible hopefully minds may change eventually. It will be a long slog, admittedly, but he has started to appear on MSM.
@@juliewake4585 Yes, exactly. Also, he is educating the converted. Now, we can speak to others with this information he has provided.
The super wealthy, the ones he continually wants to be taxed, own mainstream media. There’s no way his message will become widespread.
He is not censored because that will make a martyr out of him. Instead, when he goes in media channels, the goons/puppets of the super wealthy will attempt to dilute, distract or even confuse his message. The middle to high income earners watch the media channels and presume he’s going after them when actually he means the people who own the companies these high income earners work at.
You need at least TWO houses to benefit from the rise in house prices, because you will always need a roof over your head. It's not complicated, and means watching a lot of TV and limiting expenditure to pay the first house off early, to then get the loan for the second one. 🎉
Brilliant ! 10 months later and you are 100 pct correct so far 👊 inevitable
Thanks for explaining all of this.
I have watched your interview on Insider and since then I have watched many videos on your channel. Eventhough I don't live in the UK, the concepts you explain help me to understand how the world works and to a similar extent the situation here as well.
We need to see you on the main channels talking about this a lot more. Question Time would be good. I posted this on my Facebook now. 👍🏾
Do you think they'd dare have him on Gammon Time?
You're correct. I don't like it at all, BUT I trust your truths and judgements. So thank you 🙏 for this and all your work.
Another really interesting video, thanks Gary.
A quick but if feedback - the audio in your videos is always a bit quiet compared to other channels. This makes listening whilst making dinner or something a bit challenging. If the Audi could be mastered to a higher volume output (without clipping) that would really help listeners like me with noisy kids etc.
Interest rate should be low for individual buying his own home. But higher if its investment house/apartment.
Need more tax for owning houses that the owner doesn't live in
Well your taxed more to start with as you have the 2nd home tax, then as you can only claim 20% of your mortgage payment against your tax that’s another cut. I look at it from another perspective, if I own some properties which will keep me comfortable in my old age, I’m still going to paying tax when I’m retired on my properties and private pension, therefore I’m not going to be claiming benefits and taking out of the system, I will still be contributing. Am I wealthy ? No , am in rich? In comparison to some yes in comparison to others no, no way. But it’s so easy to say ‘tax the rich’ I believe there should be ‘tax breaks’ for entrepreneurs who take risks that helps employ a lot of people, which in turn gives these employed people a chance to purchase their own properties and maybe a buy to let or whatever they wish to spend their hard earned money on. Why to people bash someone who has been sensible with their money?
Another great video Gary. Really appreciate what you're doing and what you stand for 👍👊
So depressing that his Majesty’s Government won’t tax the rich! Shame on him!
They are a private corporation for profit . Most your tax’s goes to pay central banks . The game is rigged. Coming to an end
Very depressing predictions
This government has been installed by the rich in order to keep their tax burden down.
The other lever I expect the gov to try and push through lenders is to increase mortgage terms, to say 40 years, thus making monthly payments more affordable and giving the rich more money on their asset in terms of interest. Maybe more than 40 years, just to keep prices up
I'm sure I remember at some point, BoJo mentioning "multigenerational" mortgage terms at some point, where 50-70 years mortgages could exist and you pass on the debt to your kids. Horrendous for us but amazing for the wealthy.
It’s crazy that the governments answer to a lack of housing and prices beyond the means of average earners is to push prices higher and reduce building. Anything to keep wealth at the top and stamp duty thresholds static. We will be working to 80 to reduce the liability handed down to our middle aged children. I will add I have been lucky enough to make it onto the property ladder thanks to parents help, and it still makes no sense to me
@@Pikey4321 i had comment Where I explained it on one of Gary’s video’s. It makes people able to afford stuff while being paid less. Keeps asset prices from tumbling & gives the rich hard power over families by basically forcing indentured servitude in by the back door. Debtors prisons & the whole infrastructure would come with it. Oh and these would be a valuable asset to be sold when packaged on the market. The rich love that!
Gary, could you make a video on what you would do if you were PM/CotE and address all of the angles the current government and opposition use to not do those things? I'd love it to consider the longer term rather than just a single 5 year period. Thanks and keep up the great work. You're one of the heroes we need right now.
Unreal insight as usual. It would be nice if you could connect rich people giving out mortgates to how we all see mortgages, where you go to the banks like natwest etc and give the right paperwork and get given a rate etc. Like you talk about how rich people use mortgages to get assets like renting, but we normally get mortages from the bank so wheres the connection there?
Great video dude I tell everyone I know about you!
The fact this channel has got so many followers gives me a little bit of hope
Gary you are explaining this perfectly and I thank you for the knowledge you are passing on. I saw you the other day cycling through Algate and wanted to say hi but it was a busy junction 😅
Great explanation... Also note Inflation can be caused by Supply and Demand.... Covid had alot of money and demand for goods as people were being paid to not work....NOW the supply chains are the issue where the demand is still there but supply is in a choke hold.
Here from Russel. Best thing I've heard for a long time.
I’m on board mate!
Again Gary. Amazing. Explaining in 'normal' terms. Thank you
Hi Gary, superb content as always, thank you, please keep speaking truth to power. I also think your presentation skills, editing and formatting, and ability to be concise and deliver ideas in a calm, diplomatic way is improving... while I also love your more ranting and heated energy in previous videos, I think your recent content and personality presentation is taking on the glossy mainstream 'veneer' that unfortunately seems necessary to get more comfy upper middle class people willing to listen and take you/this information seriously. 😂 When people scrabbling round at the bottom bring any of these ideas up we're inevitably seen as resentful, uneducated, lazy, bitter people coming with guillotines, when mostly we just want more equality and to have a decent life without endless struggle and debt to just stay afloat. So, a wealthy educated person like you advocating for these ideas more and more eloquently is an enormous help for the conversation to progress I think.
Would you consider please breaking down the topic of student debt schemes and student debt interest rates etc. - UK and USA. This is another huge financial elephant in the room for my generation who were brainwashed into the myth that "investing" in our education could give us more opportunities, equity, and social mobility, when in fact for most of us it just shoved us further down the food chain before we even fully entered society. Now many are burdened with a form of debt which is a strike against them against other more "productive" forms of borrowing, provides next to nothing in return (depending on the degree paid for), and no assets whatsoever to show for it all at the end of repayment (if they ever reach the end, many probably never will until their 70s). I'm curious how you would break this down... other than please explaining to the next generation why for most people it's not worth the risk to borrow heavily just to go to school! I don't want more young people to have their futures jeopardised by this kind of crushing dread and despair I have to face every day because of a shitty, unqualified, uninformed decision I was encouraged to make in my teens. I am going to spend the rest of my working life arbitrarily owing money to very rich men who own and sell my debt amongst themselves. Decades of useless debt just for being a working class woman daring to get a degree.
Please please talk about this. We need to have our dilemna heard and understood just as much as those struggling with a mortgage.
Yep for the majority of people it is far better to do an apprenticeship and go into a trade than to go to uni. I know that's what I'd do if I could do my 20s over again.
I do not understand why when it comes to inflation no one talks about how all supermarkets and British gas and Centrica have increased their profits by many folds, for example Tesco has tripled its profit. The top 4 supermarkets increased their profit by 42%. British gas and Centrica have forecast an eightfold rise in earnings.
Much price gouging going on.. too much monopoly
Tesco profits have been all over the place. Where did you get 'tripled' from? And since when? Why do people make such pointless comments without facts? As for people not talking about energy companies' profits, yes they have, a lot of talking. Starmer is constantly talking about all that money on the table and windfall taxes were implemented, a bit.
Tax wealth not work.
Dear Gary. Thank you from the bottom of our hearts to opening up our eyes to see what is really going on in the financial systems of this world. I have question: When you keep saying during Covid government printed out a lot of money and gave it to very wealthy individuals. Who are these individuals? Why was the money handed out to them instead of the regular people who needed the money as they lost their jobs and income ? How could the economy have been sustaining if the regular folks weren’t given money to spend ?
Why is the government afraid to tax the rich ? Is there something fundamentally wrong here which means to say who is exactly in charge of a country - the rich or the government?
Brilliantly detailed podcast. Thanks Gary!
a huge percentage of the residential market in the UK is moving to a build-to-rent model. institutional investors (mainly pension funds and insurers) fund developers to deliver them large, purpose-built developments for rent only (generally 300 - 1000 apartments). apartment developments in city centres initially, now broadening into single family housing, ie typical houses, out in the towns and villages. the trend is accelerating massively so there might not be much property to buy in 10 years time.
I think you're spot on about the coming rise of corporate landlords. Really hope it doesn't happen, but it seems inevitable.
Happening
Debt is an instrument of control. The sooner the majority of Aussies wake up to that the better for them and the country!
Love these discussions. Thanks 👍
The reason it’s so depressing is because there’s no way to make it happen. The government, Tory or “Labour” (aka Tory lite), will never ever tax the rich. They’ll let the poor starve before they do that. And as long as there are people worse off than them the middle classes will never vote to change things. They’ll just blame it on the money we spend to help people survive.
The middle class, a long time ago (always) blames the working class lifestyle.
They want the poor to starve, it's the whole purpose of their existence. Starve the poor and make more people poor.
The world is going to see some big changes soon. When will all this neoliberal wizardry hit the buffers? Ever since the 1980's they have printed money and thrown it at the problem - boost liquidity. The dollar hegemon is now under threat from an Eastern reserve currency & payment systems. Oil is no longer sold exclusively in dollars. The west is being isolated from the rest of the world. The global south backs Russia & China. Games up for the colonial masters.
Things will change if the middle and working class realise they have more similarity with eachother if much difference at all than the owners, who will eventually own everything i.e. bourgeoisie, capitalists, elite, upper
Nonsense, it's comments like this that perpetually keep the tories in. There is a massive difference between them, even if there are similarities
Gary for Prime Minister !
Gary is rich but wasn’t born into wealth, so he is down to earth and hasn’t lost his morals. If he were Prime Minister, I believe he would push for firmer taxation policies that actually work to tax the rich without leaving loopholes for the rich to exploit.
Sadly, Gary, I think your very honesty and the fact that you came from humble beginnings means that you won’t make into the Eaton club and therefore, into Number 10. I say that with great disappointment by the way, as I think you’re exactly what we need to reduce inequality and raise living standards in this country. You’ve got my vote for sure!!
Legend love this ❤❤❤ helping a lot with my estate agency job 🎉🎉🎉
Great video, Gary, and an incredibly important topic. With a "black belt" in inflation economics, I just want to clarify that the wealthy actually benefit both when interest rates are lowered and when they’re raised, but in different ways.
The fundamental issue in today’s economy is therefore not the interest rate itself, but rather how inflation is measured. What we call inflation is only a consumption inflation, which reflects just about 25% of the total economy. In fact, 75% of our economy is instead linked to our asset inflation. Furthermore, consumption inflation isn’t driven by interest rates but rather by production costs, which in turn are influenced by global instabilities. Meanwhile, asset inflation is primarily driven by our interest rates. But, as mentioned, that part isn’t included.
If the central bank had instead adjusted the policy rate based on the economic cycle, market fluctuations and likely the financial gap would have been smaller.
It would be super interesting if you could do an episode diving deeply into this issue. Clear up misunderstandings and demonstrate how the central bank and politicians should actually act.
Great video, straight to the point.
easy to follow and u/stand....as always. excellent project.
Also keep in mind that inflation is also hitting poorer families more not just because they were already struggling with the cost of living. But general products used by everyday people have gone up much higher than the 18% inflation figure for example Pepsi Max 2 litre bottle was £1 a year ago now it's 2 that's 100% inflation.
It’s because the cheapest stuff has most demand. More people can almost afford that. So more pull with equal supply. Prices go up faster. Just another thing that makes the poor even poorer.
@@T1tusCr0w demand inelastic giffen goods.
They are a) essential
b) have a demand pressure because poorer consumers were previously buying them, now those with relatively high income to those have stopped buying the more expensive products. Thus all that demand gets pulled into specific items that are on the lower end of and inferior to alternatives. So for the poorer consumer there is no 'lower alternative' though, to transfer and save money with, they take the hardest brunt of all the concentrated demand.
@@jorriffhdhtrsegg yes exactly. There is no substitute to go to down the scale so demand on the cheapest goods grows. & as more wealthy people suffer the pinch they substitute from better goods to cheaper ones too thus increasing the demand even more.
Well said Gary 👏
Gary can you give us advice on what to do?
As in short term?
Mid term?
Long term?
Im speaking as someone that is in the lowest 10% percentile
John Lewis and Lloyds Bank are both moving into residential property so this is already happening
You are so interesting. Thank you. Keep going
Brilliant analysis. I understand inflation now. Thank you.
I have been watching for a while. It all makes perfect sense, but what can I actually do.
I‘m impressed how like every word and forecast you made actually happend. They stopped increasing. Now they are cutting rates.
I‘m wondering how and why did the money during covid end up on the richs bank accounts?
I think there is another factor that is slowing the rental market down - landlords are not coming into the market, in fact they are exiting the market because the government has taxed this particular part of the economy to death. It's just not worth it financially and also legislation has increased risk to landlords.
Inflation is relative to a person's lifestyle, not constant for all people. If you own your house inflation is a good thing, especially with a fixed rate mortgage. Your fixed rate payment goes down with inflation as you get more dollars in work. For renters inflation is a serious problem. Rents go up with inflation. Housing is 25-30% of the inflation number.
After that you have choices. Not every product goes up the same amount. A person can scale back on things that go up, switch to things that haven't. That lowers your personal inflation number (how much inflation affects you).
Am I right in thinking that the government has a choice between rising house prices and a growing economy? You can have one but not both! It's more profitable for banks to lend the credit they create to property speculators (so keeping the house price rising) rather than lend it to small and medium size businesses (which would grow the economy).
Many thanks for a very informative clip!
Love your channel Gary.
Always giving us new ways to consider our situation. Well done :)
You'll also notice because we live in an upside down crazy country, a lot of everyday items rich people are less likely to buy have had much higher inflation than products richer people are more likely to buy, unless they are investment purchases of course.
This is the first video where i've seen the Wealthy lending the money for the mortgages rather than owning the underlying property. Previously the discussion is the properties transferring to the rich, is this a 2 tier where rich are either buying to let, or lending Landlords some of the funds? Why would the rich not want to benefit from the rising asset prices and instead lend the money at the prevailing interest rate potentially at or under inflation? Thanks for the informative content
Time. Being a landlord and owning the asset yourself takes up time, effort, energy, physical presence and takes up your mental load. Even if you outsource parts of this to a ‘hands off managed service’ estate agents who let it on your behalf, you still have to do admin paperwork for it, deal with tenants not paying, damaging property etc.
Its easier to sell the asset via a mortgage to a poorer person, because yes you get back less than if you still owned it, but by selling it, and earning the interest, it’s truly passive income. No work required AT ALL.
Even if the interest rate of return is at or below inflation, investors still do it, to manage or balance risk in their portfolio, diversify their assets, in lower yield/lower risk assets like mortgage interest debt.
I don't agree with Gary's view that poor people are just victims but he's spot on with the patterns and mechanics of the financial and political system.
thanks so much for this video makes so much sense that I just didn't see
Very interesting video. In terms of inflation, it seems that corporate profiteering is also massively contributing, considering the outsized profits many have been reporting. Just look at the energy sector alone. That obviously does further contribute towards inequality, but taxing corporations with outsized profits also needs to be part of the political agenda.
Yes so many companies use inflation as an excuse to raise prices exorbitantly. Its disgraceful. Supermarkets in Australia are making record profits while families struggle to afford food and rent! And the govt does nothing. It makes my blood boil.
That's more a symptom than a cause.
SPOT ON
I agree with taxing the rich, but till then we can take a few drastic steps to stop the house prices for going higher:
1. no mortgages should be allowed for second homes (only after you agree to sell the first home). Cash buyers only.
2. no corporation should be allowed to own a living space
3. taxation on income from rent should be increased gradually to the same threshold of taxation for high earners (45%).
Thank you, Gary! Great video!
Gary, how did the Govt give all this Covid money to the rich? I thought the Govt was giving money to people to pay the rent and run their small businesses. Can you explain please?
ua-cam.com/video/EiblHqbpXHs/v-deo.htmlsi=O_BUjLok0nD8MI0n
@@garyseconomics thank you for that. I did actually find it and it makes sense now. I was trying out explaining all your theories (which have built upon what I started to see 20 years ago in Canada) to a friend. He thought my insights were bang on and that I was ever so smart. Of course I am but you, my friend, are smarter. You are really onto something. I support you 100%. I just hope you do not 'sell out' when your success grows.
@Gray what’s your opinion on taxing wealth rather than income. Do you think it’s possible to replace one with the other?
Brilliant.
It is typically argued that inflation is the rate of increase in prices but should be better explained as a rate at which your work looses value and therefore you need more money for the same amount of work. In other words, you better speed up because the rate at which you accumulate money goes down since each unit of measurement lost value. Because that is what really is happening. And this is particularly difficult for the people paid by hour since their productivity is measured mainly by hours worked for with fixed amount of money but the value created in one hour vent down artificially through inflation. Is it any wonder that despite the massive gains in productivity we are still finding it hard to get ahead when inflation cancels the productivity gains? Who is robbing us? Who benefits? And more importantly what is really happening? Did the value disappear?
Brilliant......what's the best way that a poor working man can help and bring about a change ? Advice...
The wealth inequality is the elephant in the room. We just need to give out loans to build houses increase the supply side
My labour has been devalued by 10% and I still haven't worked out where it's going. I'd be up for an episode "what happens if we all default our mortgage at the same time so even the bailiffs end up with Notices on their digs"
It is a zero sum game - the money has/is going somewhere. We hear the usual suspects: Covid, Russia and in the UK, Brexit and Truss but the Greed Hoover is still fully functional taking the dosh away from all to the few. Companies and entire Countries are doing well. For some in short and others in long. They carefully prepare their future horses ready for when they are forced to dismount the old.
At least Dracula just wanted our blood, the Greed Hoover just wants it all.
Hi Gary, or anyone else for that matter, I have enough deposit for a mortgage so should I go ahead at this time or wait? Many thanks!
I'm not licensed to give professional financial advice, but I would say move now.
@@garyseconomics Cheers Gary, loved your appearance on Novara Media!
Hello 👋🏽 Gary. I really like your educational videos. Hope you have a great week
I'm loving these Sunday morning videos Gary. Here's a question for you. If the UK's national deficit continues to rise, keeping in mind that it's already 100% of GDP, will we eventually reach a point where the interest on the debt accumulates faster than it can be paid off? If so, what happens then?
Japan's Sovereign debt-to-GDP ratio is 200%. What happened then? Multiple Rounds of QE as Bank Reserves given to Banks designated to make their balance sheets look good, but neutralising their ability to borrow or lend to the Real Economy, because they can't raise capital by taking deposits, nor can they raise capital from the international capital markets. Through QE, the Bank of Japan is the biggest owner of assets in Japan. Why?
I think we have a way to go get as the government can keep inflation high which will artificially raise GDP and devalue the debt. Ideally you also actually raise GDP but it’s pretty hard to do.
So what’s going to happen, now that’s a difficult question to answer. We’ve already delinked currency with gold and instead linked it with the dollar under the premise that we can always get a certain quantity of gold for the currency. Then that was gotten rid of in the 70s so now the dollar is worth something because it’s generally accepted as such and it’s backed by nothing. Where do we go from here. There will be some kind of crash at some point and it’ll all change again. Whether that be just write off government debt by the same amount in all countries or china becomes the new main currency. Who knows. All I know is it’ll impact everyone and there’s nothing I can do about it.
@Jon P Thanks Jon. It makes for interesting speculation, doesn't it. I completely agree that governments will do absolutely everything in their power to keep the train on the rails for as long as possible. My worry is that by kicking the can down the road with QE, the deficit has grown to the point where defaulting on it is becoming more and more likely. When you look at the rest of Europe's debt to GDP (Greece - 178%, Italy - 147%, Portugal - 120%, Spain 115%, France - 113%) it would only take one country to default to start a house of cards effect. That's before you start getting into the rumours about a new BRICS currency to rival the dollar and the lengths America would be willing to go to to keep its position as top dog.
100% is not a magic number. Have you fallen for the "a country is like a household" fallacy?
It is my view that wealth flows upwards, and it is the job of the govt to make the wealthy spend their money.
This could mean through investing in the economy to fuel growth, or through taxation.
Unfortunately we have a govt that doesn’t seem interested in either option.
Spread the word we are listening
Hi Gary. Someone said that oil prices have come down, therefore shouldn’t the energy prices have come down? If not, why didn’t they?