For one thing what we call Economics today was called Political Economy, because it looked at how societies create political and economic systems, and how all interrelate and develop. It wasn't until the world took a leap in computational technology, did economic scientistism develop. Whilst the latter could be helpful in modelling and managing economies, it became less useful in teasing out causes and effects IMO. Moreover, as the status of physical sciences and technology became more socially, culturally, and economically important, the human dimension was deemed less important. Indeed, the political dimension became neglected and obscured. Consequently, these causational factors were downplayed because they involved questioning the status quo. This is why you had that impression. People forget that politics and economics are codependent. So all political perspectives include assumptions about economics, and vice versa. It's time we acknowledged that, and studied the basic premises of societies in that they are formed because of the need to manage resources in pursuit of specific goals, and collectively they decide, what those goals are, who gets what, and how they get it, and those rules are actively maintained in culture. So the best economists understand how societies work, and how they develop their political and economic assumptions over time. And we have to accept that the interests of the powerful may not serve the interests of others. So, leftist critiques can be couched in the politics of envy, but that is more about political rhetoric than reality. And there are critiques of capitalism that seek reform as well as removal. But that's part of the process. Nature herself is full of failed experiments, but also successful ones And in my mind, political Economy tells us why an experiment is failing, and how we might harness our collective energies to modify an experiment, or take a new direction. Its the political economists that have forged new perspectives for reform and modification of capitalism, and and they include leftist realism that acknowledges that simply overthrowing capitalism is neither desirable or effective in ensuring a fairer distribution of resources and meeting economic developmental goals for the planet as a whole. Neither are they in love with the idea of just swapping a neoliberal capitalist oligarchical model for another oligarchy with a splash of red, as the Soviet Union became, before it got raided by neoliberalism in the 1990s in the early Russian Federation days. Simply, it is the dysfunction of the dominant neoliberal model of capitalism is failing in the most basic ways, when it is possible not to. And an exploration of how that should be changed before we suffer permanent damage is necessary. We have to challenge the status quo because simply because in all metrics, it is wasteful and dangerous as is. So solutions to that are needed. If thinking that is leftist, then that's OK.
The problem with 'the politics of envy' is it depends on a simplistic and false idea of human motivations. It also proposes the idea that complex systems have emotions. And it treats complex social relationships as if they were interpersonal relationships. Finally, it suggests the problem with an exploitative relationship is which side you are on, rather than the nature of the relationship. For the record, Left wing politics is entirely about class war. In contrast, Right wing politics is entirely about class war. That's why we have expressions like, 'politics of envy.' British politics is 100% class war. The 99.9% are losing
Many forget the origins of Labour were born out of a unionised workforce when distrubution of wealth was essentially so bad there was no alternative. At their heart, a Union is simply trying to redistribute wealth and improve quality of life and work.
Gary, I am surprised that you don't have more exposure yet. Your logic and presentation are incredibly clear and easy to understand. Thank you very much.
The UK's shortest serving PM, yeah her lol, once said something along the lines of "we should stop concentrating on redistribution of wealth and that's it's talked about too much" in one of her car crash interviews. Must be living in a different planet 😂
It should but why would it? The MSM helped NOT ask the questions that would have pointed to how unequal society was becoming, never mind how corrupt. 🤷🏻♂️
We can't afford to have an "I'm alright Jack" attitude. I've added a famous poem below written by Martin Niemöller during World War 2. Instead of Socialists we could read Rail Workers, instead of Trade Union's read Nurses, instead of Jews Postal Workers. The point is that we are all affected by Wealth Inequality and need to support each other. United we stand, divided we fall (get poorer). First they came for the socialists, and I did not speak out-because I was not a socialist. Then they came for the trade unionists, and I did not speak out-because I was not a trade unionist. Then they came for the Jews, and I did not speak out-because I was not a Jew. Then they came for me-and there was no one left to speak for me.
Hey Gary are you able to chat about the wage price spiral theory at some stage please? I feel that the media are using it to convince us to think we shouldn't have decent wages
Yes, this is a particularly infuriating lie. After all, wages are chasing inflation, not the other way around. An argument that above inflation pay rises will drive prices up may have merit, that of course has not happened.
Agreed would be a good video topic. It is a real thing. If I were a business owner and I suddenly had one of my significant costs go up (wage bill), I would raise prices to maintain my profits.... And there is the third variable that is never mentioned. There is the option to make less profit which is rarely mentioned.
Former USA treasury secretary, Larry Summers, called for 10% unemployment to squash inflation. He was literally on a tropical island, with palm trees in the background, when he did this. Calling for working people to be financially ruined from paradise to deal with a problem the wealthy have caused.
@@spatchcockdaniels1479 yes profit is an option. What about if there was policy in place to deal with the profits that are being made from the assets that the business owner is paying for which was the subject of the video. Imagine if there was a wealth freeze for a year so rents, energy just suddenly costs less. That would impact those costs directly but also the cost of materials as the manufacturer suddenly had lower overheads. All of a sudden there’s a lot more money for wage rises. So, being practical, if a bit of both profit reducing and reduced overheads through policy is done, pay rises can then happen. If people then have more money though that’s supposed to increase demand which increases prices thus more inflation. That’s where I would love a video to explain what can be done about that as the only way I can think to stop that is to do it slowly so the increased demand can be matched by increased production so that prices don’t rise.
At the beginning of the video, Gary mentioned that Wealth in the UK is "physical", and he's right. But there are also non-physical examples of wealth that poor people/people without capital can create, such as music, or art, or cultural contributions. They then have the potential to generate higher incomes or the "rights/ownership" can be sold to generate an income, which can (as Gary described it) be DIVERSIFIED into other forms of (physical) wealth.
@Sonney O'Brien problem with most of those more intangible assets is they are unpredictable and high risk. For every megastar, there are hundreds, maybe thousands who don't make it Whereas you buy a house, especially under a government that is biased heavily to benefit property owners, that's predictable and low risk That's why rich people buy houses rather than sponsor artists and musicians!
It's getting close to the time the wealthy throw us a bone to make soup from and tell us how lucky we are to have more than we had before... Keep on making the content Gary. Redistribution is now the only way forward to a happier and healthier world...
@@theoddone887 This guy's full of himself and I will probably get a strike from commenting on his videos. But he says things that are agreeable but this whole thing looks to me like a pr stunt. His whole demeanour and he acts as if he's relatable when in reality he was at some point definitely, but now he's just another sell off trying to push his ideas. Pay attention to his scenarios, he's always filming with very simple relatable backgrounds, wearing a simple clothes, the way he speaks, it's his brand, but his ideas revolves around the old adage "One for thee, not for me" he talks about wealth taxation while he excludes himself of the wealthy and says he's not, but if he's such a great trader his net worth must be around the 100s of millions unless he's just another dog that barks too much but never bit anyone. So in all the fairness the tax burden is always going to end up in the middle class because the wealthy will find a way around it, also he loves talking about how you can't make your way to wealth trading but forgets to mention that trading is never about making money, it's all about capital preservation and not losing money. There's a bunch of nonsense and it just strikes me as a brand he uses to get more views. Anyway he's got good economics understanding and if you can filter out the bullshit there's a lot of value on what he talks, but also a lot of rubbish.
Thankyou for doing these videos my daughter is at Exeter doing economics and I share your videos with her. I'm a classic working class financially struggling guy who's only recently woke up. Thanks again
This is my first video I have seen from you and I just wanted to say that you are the first person I have seen who has adressed our economic system as it is with graceful and percise articulation about our economic issues Thank you for that, Genuinely
I'm not the most confident writer, so I used Chat GPT to write letters to my local MPs this morning. Been watching Gary for years and this video inspired me to get up and do something. Maybe a mass contacting of government will have them see that lots of people are cottoning on to this now.
I'm a writer. I'll write it for you if you want? Just gimme the bulletpoints you want me to cover and the tone. I used to get people out of unfair parking tickets all the time at my old job with a bit of formal speech.
@@earthman6700 Absolutely and another message would be to vote the Tories out in the next general election and give Labour a chance to rebalance the economy.
Brilliantly put. My main concern is that as soon as redistribution of wealth is even hinted at, the tabloid press go rogue and convince the struggling public that there is no alternative unless you want to become soviet Russia. As we know that the most influential forms of media are also forms of wealth. When I say tabloid press I don't necessarily mean literally newspapers as these companies have evolved into many different areas of influence.
Soviet Russia might be a better option if the wealthy don't listen. Of course, such an economic-political system will fail. It creates elites who then dominate and extract wealth from the people. Humanity needs another political-economic system. Quite what is the question? People need to be rewarded for innovation, and hard work but not to the point of billionaire status.
That is why todays generation is ditching the "tabloids" and CNN/FOX for TH-cam to get real non BS information. Its why the Govt wants social media to have control of you, so they can try to control everything.
@@vortexfx420 the tabloids own much more than just newspapers. They have fingers in all sorts of disinformation and much of it will be on every platform. TH-cam also has its fair share of bull****.
Hi Gary, I would like to thank you for everything you are doing. The way you explain complex subjects in easy to understand language is fantastic. Please keep making videos like this. I find these topic’s fascinating and I love tuning in every Sunday to listen to you. My best regards.
As well as taxing the rich, look at where your money goes. Support the 2nd hand market, use less where possible, support local growers direct for food and participate in the gift/sharing economy.
I wrote to my MP last week to ask her to question why one of Rishi Sunak's 5-priorities wasn't addressing Wealth Inequality. We all know the answer to that. I also asked why Labour aren't campaigning to reduce Wealth Inequality. I await a reply. We should all be challenging our MPs to act on our behalf, that is their job as our elected representatives. Unfortunately, more and more they seem to consider their own interests before ours. I have cut right back on spending, including turning the heating down to 17c. That isn't great, but I am determined not to lose my house. I work in the Public Sector. We received a 2% payrise, or actually a 9% real term pay cut. Hopefully people like Gary will help wake people up as to what they can expect if things carry on as they are. There is too much apathy and ignorance at the moment. The Industrial Action across numerous business areas shows that there is a will to fight these policies that are taking wealth from the majority give it to the minority. That will needs to be supported, and it needs to grow. Some of these people have no empathy, integrity, compassion. Those who can afford to should pay more to support Public Services. We need a Fair Tax System, no Loopholes.
Absolutely agree with the words you wrote........with the exception of, ".....We should all be challenging our MPs to act on our behalf, that is their job as our elected representatives..." Contrary to popular belief - 'we actually work for them' [imo] - as all they are doing is [blatantly] syphoning off public money into their pocket. It's despicable really. Maybe the apathy, from us all, stems from [imo] that we are just too divded nowadays, nobody seems to care about one another - - 'dog eat dog world', and all that!?! Look after yourself out there citizen :)
Look up what your dear MPs in the UK did just now. Rishi Sunak approved 5.5% salary increase for the MPs 😂😂 apparently it was done to keep MP motivated despite inflation but I think he's just buying favours from them Your leaders dont give a sh- about you lot and yet you serve them like the good little boys you are
I applaud you. I would call this a basic explanation of real world economics. An economics that is actually interested in ordinary citizens, their wellbeing as well as the functioning of civilised society as a whole, rather than the compounding enrichment of a tiny class of ever more wealthy elites. I recently watched your one on one debate with Mark Littlewood from the IEA and have to say I was extremely impressed. I've met him through work a few times and have to say he always seemed quite unpleasant but your unique personal story as well as your competence simply disarmed him, they had no comebacks at all really.
Joseph Stiglitz, nobel prize winner for economics, says that rent-seeking is corrosive to a country as it creates an inequality trap. High inequality sets up forces to create even higher inequality = the inequality trap.
One of your best yet Gary. Helping people to truly understand the difference between Wealth and Money and how Money flows towards to Wealth to compound it. Great stuff :)
I see the economy as a game of monopoly. 1 player owns 53% of the board and is lending money to the other players to perpetuate the game. Gradually that 1 player is increasing the % of the board they own. The rich/poor divide is only going to get bigger, because the system is rigged to make that happen. Time we started talking about congratulating the winners of this game and play another game where the economy rewards hard work and not just those who know how to rig the system.
Gary is the walking embodiment of someone who worked hard to achieve success. And yet he seems peculiarly reluctant to help anyone else achieve success. His TH-cam channel is exactly what he proclaims to despise: an asset owned by a rich person. How about we redistribute your subscriber and ad revenue to everyone who comments on a video? Share the wealth Gary. 😊
This is quite literally what the creator of the Monopoly board game was trying to teach, but somehow the message got lost. The $200 you get from going around the board is like your salary in that game, and you quickly realise it won't save you if you don't invest it well. People shouldn't feel dirty about investing - it's the system we have and it can be one of the only ways to keep up - but more need to have the courage to put the fruits of their investments towards building a fairer society. Unfortunately, many of the beneficiaries of this system have little to no interest in helping the people who don't understand it.
Really brilliant to see you on 'Politics Live' today Gary. Thank you for your Voice! You can clearly see that the BBC and the wealthy, do not want to give the ordinary people a fair opportunity in discussing the options and ways of Taxing The Super Rich!!
This is possibly the best and most effective Vid youve made since you opened this channel. well prepared, professionally produced.. well scripted, fluent and direct. Had been afraid for a while, you'd lost your way. with book etc. But 100% well done here. a valuable simple words ideas .. holds attention..politically neutral in factual analysis.sense A bit long? maybe. But youve done great job compressing lot of complexity even into 20 mins. Great Job Mate.
The clarity this has given me is unbelievable. I am aware however that i wouldn’t have understood this if I hadn’t been watching your videos for nearly a year and trying to understand the economy through other sources. Gary, if you can, please work on a short simple video series, high production value, with visual explanations of everything you have taught me over last year to now so that someone new can grasp what is happening quickly. If ordinary people understand what is happening we have more chance that they will get on board with your message and when the time comes to show the government that there is support behind a wealth tax and closing the loopholes and it is a vote winner (their words) there will be an army of people who understand why lots of government spending can be funded in this way. Imagine if taxes on working people went down and the government had more money because they were taxing wealth efficiently and the reason for that is that ordinary people were just spending more which went to the wealthy who were then being taxed more simply because the economy was doing well. That’s the rich happy paying tax and ordinary people happy paying less tax and hopefully accumulating some wealth. How mad is that.
It's made worse because rich families protect their assets whereas ordinary people can't which means ordinary people pay tax on assets they pass on, whereas the rich don't, which is why the system is broken.
Hi Gary, another brilliant video. I love the passion you deliver these videos. This video was so descriptive and provided such a high level of detail which keeps things simple (simpler) to understand. I have a 7 year old and it worries me she will not be able to afford her own home. My wife and I save all we can to not let this happen. Without you and your videos I would not have been as knowledgeable about the current situation and wouldn’t be saving as hard to protect her future x
Your best video yet @GarysEconomics. Just 3% of Rishi Sunak’s £700 million would be £21 million per year. I guess this might be closer to the mark than the £2-3 million you mention. Much of this wealth is his wife’s assets but the point still stands.
Ya I think Gary just made a mistake here because he has mentioned the amount you refer to in the past. I think he meant £20-30 million. I look forward to a coffee and Gary's economics on a sunday morning these days
Thank you for your work!! It's socialism or barbarism - This is why I am a communist, it might seem radical or even ridiculous. As far as I see it, Capitalism as you so eloquently explain, inevitably leads to this wealth stratification. I am not saying that forcing our nation's governments to tax the rich is a bad thing, no, it's the correct and completely necessary thing to pursue, no matter the difficulties. Though my sense, from my own life, is that any gains made today, will be siphoned off over time and the cycle of the rich accumulating more and more wealth will keep repeating, as the wealthy will eventually (as now) gain majority influence/control of our governments. This is a struggle for the survival of our nations, our children and even ourselves. If anyone reads this, please keep an open mind to a socialist solution as the alternative is wealth and government in total allegiance, which is by definition fascist.
Hello Gary. First of all, I want to say thank you for explaining things clearly. I have seen many of your videos. I understand you are really putting yourself out there for real equity. You have a very deep understanding of economics. Tax the rich for all that income and roll it back into the economy. Otherwise, there will be no economic system left - except for the very wealthy. The rest of us will be eating bugs and grass.
This is the best explanation of capitalism I've come across. That it's delivered by a millionaire without any shoes and socks on is just the icing on the cake.
Well said. My tip: next time there is a stock market crash, buy buy buy good quality shares. Buy anything good! The market always recovers. The trick is to save as much as you can and patience.
Omg it just clicked! This is why we're seeing a big drop in productivity (in the UK). They blame it on the working class, but it's the wealthy hoarding assets and not investing that's causing the drop. Cheers Gary your video's are great 👌
@chrisb3189 not if you tax wealth properly l. That doesn't stop governments being shite with the money though. We have to find a way to stop wealth inequality spiraling out of control.
Hi Gary, I am going to buy your book when it comes out to support you. I watch all your videos and you make so much sense. We have such a corrupt government. You are so right about us looking long term and working together to fight back. I am sharing your message.😊
We've mastered canals in the UK so we should be able to master 'wealth flows' and to understand what Gary is saying. At the moment the wealth is flowing one way only, from the bulk of the population to the rich, from the rivers to the rich sea, a sea that has very few rich fishes. We need to build canals into the assets that the rich have fortuitously accumulated at the expense of the bulk of the UK population. Gary is educating the masses on wealth flow, we the masses have to re re-invent the canal and build financial canals which distribute the opportunities to own assets all over the UK. Afraid the opposition doesn't seem to be up to that type of thinking. They need to receive a wake up call from the people that siding with the asset owners is a zero sum game in an election.
Thanks Gary! One thing I've not heard mentioned so far is that a collapse of the middle class also causes consumer demand to hugely drop worldwide/nationally, harming almost all types of businesses along with it.
Otherwise called a 'rentier', i.e, tollbooth, neo-feudal/capitalist economic system. Essentially, this is a simplified version of economist Michael Hudson's very valuable works (See for instance: 'Killing the Host')....and, of course, that fine fellow, Karl Marx.
A very interesting, depressing but also, a very important message you are sending out. I could see the writing on the wall many years ago, when I failed to ever be able to buy the property that my late father was able to purchase in his life. Times are tough and getting tougher. Good luck everyone, let’s hope we manage to reverse the trend one day?
Thanks Gary! The rich clearly avoid a lot of tax and wealth is hardly taxed, yet we are we told the tax burden is as high at the 70’s? Is this beacuse the burden has moved to ordinary people more?
As someone who also came from a working class background and became financiallly independent by acquiring income producing assets I totally agree with what Gary is saying. However I'm not sure how working and middle class individuals can change the system even if they are aware of it.
I've understood this concept for some time now. Speaking to friends and family, I make the analogy of the inheritance tax that middle class families have to pay, from generation to generation our wealth is slowly getting bled dry while for example the extremely rich can afford to offshore and hide assets or in the case of the royal family don't have to pay inheritance tax on billions of pounds worth of inheritance like King Charles inherented from Queen Elizabeth's death.
if you're privileged enough to inherit assets why not establish a trust fund and put the wealth in a trust to make it immune from inheritance tax? It costs around 4k to create a trust which is a small price to pay compared to a 40% inheritance tax on your property being passed down. emulate the rich's behaviour. the information and knowledge is out there and freely available
Thank you. The information you are sharing is exactly what is needed to help reset the balance. If the people know & truly understand the system, I’m convinced the system would have to change accordingly. Thank you, please keep educating - please start going into colleges & universities even schools..(if you are not already)..
The problem with this is each generation *is* richer than the last, in spite of everything. This is because the rich need to invest in *something *. Assets fund things. They have to invest to make money to sweat assets. I'm not sating it's the optimal system, far from it. But the narrative its all disastrous is nonsense. Life is getting better. It has every decade. It gets better because work happens to make it so. The debate should be around who gets the right share of the proceeds of that work. Not whether work makes life better or not. Because it makes life better. It's just who benefits the most from it.
This issue of generational wealth drain is pretty obvious to every person under 30, its just the ocean we swim in. Whereas it's basically unintelligible to those generations currently with wealth.
Land Value Tax fixes this. You can't just raise taxes on the rich yet again, as yet again they will evade it leaving us with the bill. All taxes need to be replaced with the Single Tax - LVT. LVT rather than actually being a tax is a reliable revenue for community expenditure, it prevents land speculation and land can not be shipped off-shore.
Well done Gary! Keep up the good work! This is a good exposé of the polarisation of wealth for the benefit of those who own the wealth, and to the detriment of those who create the wealth. It’s an absurd situation in which young people graduate from university with so much debt that they can’t begin to accrue a functional level of wealth, nor barely engage with the economy other than in the form of a wealth-creating drone.
We are world beaters at both creative accounting and food banks. The rich make the laws with loopholes for creative accounting. NB. Why are land assets non taxable on death and yet attract land grants throughout ownership? It is because most is owned by those who make the taxation laws of this country ….I could go on….
Brilliant, Gary. Makes complicated things sound so simple, this should be taught in schools. The system is stacked against those who have little but, with knowledge, people may be able to overturn this system by working together.
This is a good idea. I know a few teachers and, unsurprisingly, they are disgusted with the way the Education sector is going, so I'd imagine schools - at least the ones that aren't run by profit-making private trusts - would welcome an initiative to educate the kids about this
The richest 1% have pocketed $26 trillion (£21 trillion) in new wealth since 2020, nearly twice as much as the other 99 per cent of the world’s population, an Oxfam report has revealed.
Gary, you have brought this issue to the forefront of your subscribers minds along with all those with whom we interact. Now you know that every successful venture should show growth and that happens when we set and reach goals and targets. This means that your troops have to work with these principles rather than wait for generic action to take place. One of our targets should be escalating a demand that any political party we support should have as part of its manifesto a clear declaration that it will set out a tax of at least 1 pence on the pound for every wealthy person above a discussed level (say Ten million pounds or dollar equivalent). This is the most leveraged approach to get the disparity level reduced since that group cannot avoid the effect their ownership and cannot defend this massive drain on the economics of the middle and working class. Your message is clear so action steps have to be presented going forward ,We know that politicians act only in respect of votes.
his is my first video on your channel, and although I haven't watched it yet, I have already subscribed. Please don't let me down like the other guys. I have watched your interviews, and you seem like a genuinely good person, so I'm going to give it a fair chance.
Gary, I stumbled across your channel and am so pleased I did. It’s refreshing to hear a knowledgeable individual with an accent. The class system in this country really does prejudge regional accents. Keep doing what you do, love how palatable you deliver.
That you Gary for your clear concise explanation of how the rich continue to get richer while regular folks is transferring their money to folks who has tons of money and wealth....thank you for this...a lot of people don't really think about this . I am gonna do a video myself about this....very,very thought provoking...how wealth flows..great explanation!!!!
you should have discussed the solution! i.e if uneven wealth distribution is a problem then what would the change look like, and then what problems could come from this. The end of this was anti-climactic.
Hi Gary, I appreciate your focus on housing, but in your peice on wealth and assets I think you missed out an important type of wealth. National infrastructure and the social safety net is a huge form of wealth collectively owned by everyone. One thing we see in these hard times is austerity, which strips back on spending to maintain these things - most topically in the NHS. The ultra rich are unaffected but allowing infrastructure to crumble is a huge loss of quality of life for the rest of us.
Thank you you again Gary Stevenson. Liked and posted to X. This is a real blind spot. You spell it out so well. So actually, buying food pays a sort of tax to wealth owners, even though food is not taxed directly to support local services. I want you to know I check the closed captioning on many programs. This one is really accurate. Very important for people with hearing disabilities or have different ways of speaking English (accents and usage differences). Oh, and it uses British English spellings (for instance, realisation: in American English it is realization). Thank you again.
The Medici always talked of a ‘river of wealth’ ie it was not money in itself that made you wealthy but where and when you invested in assets and when you then divested to capture your gains (and move it to the next asset to generate additional wealth)
It’s refreshing to see a person who’s made it from nothing to something and remember where he came from. I’m not rich but live fairly comfortably and I remember and still hang with friends which will never understand why they are were they are. It’s very discouraging speaking to them because most of them believe in taxing the poor and allowing the rich to pay very little as a percentage of their income in taxes. They can’t seem to understand the difference between making 1,000,000/year and and paying 100,000 in taxes and making 100,000/year and paying 30,000 in taxes. All they see is that the person making 1,000,000/year paid more than 3 times the amount of tax. It seems to me like most poor people do not understand how they are poor and think that taxing the rich to redistribute in the economy is somehow going to leave them jobless. How do we change the narrative for these people when everything they hear from small business owners to the media tells them the opposite? It drives me nuts.
encourage education as means to escape poverty. leverage said education to attain skilled or professional work (from studying in STEM). work in your higher paying field of expertise for some years, accumulating as much cash and experience in your industry as possible while simultaneously not succumbing to lifestyle inflation). With a cash reserve of 100-200k, saved over 5-10 years, deploy capital in major investments such as businesses or real estate. Seek investors from networking to fund your business. UK is a service based economy rather than a product based economy like the USA. Create a business offering a service, this can be as specialised as creating your law firm if you studied law, or it could be as simple as owning a car wash which can generate £250-600k revenue per year depending on your location and how busy you are. These opportunities are still available for me, someone who grew up in the UK poor in an immigrant family that made bad financial decisions and fell for interest only mortgage scams. I believe that if you are hungry enough, you can attain it. If you're an easy going guy who goes to the pub and watches love island and doesn't do much else beyond that outside of work, i'd bet that you will die poor and your children will suffer from the inequality that you did nothing to counter against for the sake of their future. But maybe my plans will fail and I could easily share this fate too, we shall see. I fear mortgages due to the usury amortization scam that they implement in their 30 year payment plans, but im not sure how else to acquire a property without taking the hit. Perhaps buy property in cash with 25% down payment as an LLC so I dont take the hit. then rent it out and let tenants pay the mortgage over time while i get paid dividends through teh LLC. not sure what tax implications are but i intend to pay as little as legally possible. if theres legal loop holes i will take it. fuck tax and fuck wealth redistribution by the hands of the government to put into the pockets of the financially irresponsible
Great work Gary! That is an excellent way to explain it. However, taxing the rich is not a solution. The rich will not merely stand by and let you take from them. It's more likely that the economy will shrink as money leaves the country, avoiding higher taxes targeting the rich - assuming you have a concise definition of what "rich" is. Some jurisdictions offer incredible tax reliefs; the rich would simply move there and become citizens, while most people would still get taxed on their wages with less hope of an optimistic future in a country that's on the decline that they can't leave since they aren't rich.
Surly the best way to limit equality and transfer of wealth is for the state to own as many of the essential things we have to spend money on as possible. That can then be used to lower taxes for ordinary people and put back into the system to be re-spent rather then being locked away. Privatisation was the start of all our problems.
State management of anything is a shortcut to stagnation and corruption (see communism for a century of data)...what used to be called civil contingency (the basic services needed to run the country in time of crisis)should all be state run (at the cost of the above mentioned stagruption) this is simply the base cost of maintaining freedom and free market economics.. however housings is not civil contingency and the basic problem with that is that the profits from inflation are not taxed..this creates speculation and money going into accommodation that should be invested in buisnesses to power growth.
He has put something in simple terms that many people do not have a grip on - well done. This can also be well illustrated graphically using balance sheets and income accounts
Thankyou gary you're a legend! It's good to see someone working class and british talk about these things, it's about time we had equal representation in parliment too! I'm sick of being told what to do by the super elite and rich that do not represent 99% of us but the 1%!
I am learning loads from Gary and this channel but bloody hell im bricking it a bit. Swear I’m just gonna buy things that don’t go out of date and things I can hold. Gold coins, canned food, im not even joking, that is my investment strategy. Kitted my whole house out from charity and dump shops, simply because they were cheap assets. Know it sounds mad but wood tables and chairs are gonna cost bucks soon, and if needs be I can sell them. Hopefully I won’t be sitting on my backside eating my tin of beans too soon
I think the bit that Gary doesn't cover is global population growth. UK population growth, immigration and it's effect on asset/house prices. Also quantitative easing how that sured up the banks at the expense of ordinary people. The COVID response also went via employers and saved business first ordinary people second.
Gary has really made me think - I was edging right trying to get some growth into the economy but this all totally makes sense. It is very hard to understand how assets just keep going up without this info. It is also now clear that this will not correct itself in the way we expected it to in the 'old days'.
Thanks Gary, as you say, bleak. But given that we have a political system that is unlikely to change, irrespective of the party in power, the prospect of the implementation of a fairer fiscal system is frankly negligible. How do you think we can realistically alter mainstream economic thinking to embrace the taxation of wealth?
Thank you for making this video free and accessible! ❤ I really wish the people that need this knowledge would find your TH-cam channel… even the algorithm is against us :(
In a way, Garry isn't telling us anything that we couldn't already know for ourselves. But the shame of it is that no one thinks about this stuff, except for people like Garry or rich people.
I hope Keir Starmer is subscribed to this Vlogger. Keep it up Gary, the message will get through, but must be handed on by each of us that understands your message.
To change the system for everyone’s benefit - not just the rich - then more people like yourself Gary - need to get into positions of power - whilst the rich continue to dominate those positions (& get donations of £millions as a thank you from their rich friends for maintaining the system) obviously nothing will change
This was my first video I’ve watched of your and I’ve got to say you’ve made an excellent case for taxing the rich. I believe you’ve changed my opinion on this subject. Like you said it’s all very bleak. I’m about to turn 35, single male, living in the Midwest USA, earning between 80k & 100k per yr as a chemical tanker truck driver. I live on the road nearly full time sleeping in my semi which is owned by my employer. I live way below my means, drive a 15yr old Honda civic, don’t wear fancy clothes or go on expensive vacations. I save & invest 50k per year. I’ve hit 100k between a Roth IRA & a traditional brokerage accounts 6 months ago. I own a single family home in Cleveland Ohio which I rent out as a short term rental & recently bought a 2nd duplex 35 miles outside Cleveland as long term rental. I’m certain I’ll be get to a million dollars. I want to be more than a tiny minnow in the sea. My question is how do I try to profit with the cards I am dealt?
@gary - Can you do a video on the reasons why the FTSE is at all time highs yet the economy is tanking, house prices are weakening, construction is slowing down, exports are less month on month, inflation is still rising… etc
Phenomenal explanation ... if you keep pumping out content like this, I'm very confident your channel will reach massive numbers. Thank you for lending your insights and analysis to the world conversation. For a great many, economics as a field of knowledge seems a bit arcane, to have it explained plainly by a regular guy, very well versed, is enormously helpful. Thank you, Gary!
Great video thanks Gary. The term "Raising the Tax on the Rich". I understand can be interpreted in different ways. What we should be focusing on and saying is "Stopping individuals AND companies from exercising tax loop holes". I hope this rephrase may get some people to see the situation differently and in the right way. My personal opinion is that there should be a flat rate tax on all earners regardless of wealth. "Raising the tax on the rich" to many people implies increasing the tax rate of the rich based on declared PAYE earnings, this solves nothing.
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Gary is one of the few people who persuaded me left wing economics isn’t purely the politics of envy . Well done Gary.
Sound money knows no sides, it just is.
@@genb4374 what is sound money?
For one thing what we call Economics today was called Political Economy, because it looked at how societies create political and economic systems, and how all interrelate and develop. It wasn't until the world took a leap in computational technology, did economic scientistism develop. Whilst the latter could be helpful in modelling and managing economies, it became less useful in teasing out causes and effects IMO. Moreover, as the status of physical sciences and technology became more socially, culturally, and economically important, the human dimension was deemed less important. Indeed, the political dimension became neglected and obscured. Consequently, these causational factors were downplayed because they involved questioning the status quo. This is why you had that impression. People forget that politics and economics are codependent. So all political perspectives include assumptions about economics, and vice versa. It's time we acknowledged that, and studied the basic premises of societies in that they are formed because of the need to manage resources in pursuit of specific goals, and collectively they decide, what those goals are, who gets what, and how they get it, and those rules are actively maintained in culture. So the best economists understand how societies work, and how they develop their political and economic assumptions over time. And we have to accept that the interests of the powerful may not serve the interests of others. So, leftist critiques can be couched in the politics of envy, but that is more about political rhetoric than reality. And there are critiques of capitalism that seek reform as well as removal. But that's part of the process. Nature herself is full of failed experiments, but also successful ones
And in my mind, political Economy tells us why an experiment is failing, and how we might harness our collective energies to modify an experiment, or take a new direction.
Its the political economists that have forged new perspectives for reform and modification of capitalism, and and they include leftist realism that acknowledges that simply overthrowing capitalism is neither desirable or effective in ensuring a fairer distribution of resources and meeting economic developmental goals for the planet as a whole. Neither are they in love with the idea of just swapping a neoliberal capitalist oligarchical model for another oligarchy with a splash of red, as the Soviet Union became, before it got raided by neoliberalism in the 1990s in the early Russian Federation days. Simply, it is the dysfunction of the dominant neoliberal model of capitalism is failing in the most basic ways, when it is possible not to. And an exploration of how that should be changed before we suffer permanent damage is necessary. We have to challenge the status quo because simply because in all metrics, it is wasteful and dangerous as is. So solutions to that are needed. If thinking that is leftist, then that's OK.
The problem with 'the politics of envy' is it depends on a simplistic and false idea of human motivations. It also proposes the idea that complex systems have emotions. And it treats complex social relationships as if they were interpersonal relationships. Finally, it suggests the problem with an exploitative relationship is which side you are on, rather than the nature of the relationship. For the record, Left wing politics is entirely about class war. In contrast, Right wing politics is entirely about class war. That's why we have expressions like, 'politics of envy.' British politics is 100% class war. The 99.9% are losing
Many forget the origins of Labour were born out of a unionised workforce when distrubution of wealth was essentially so bad there was no alternative. At their heart, a Union is simply trying to redistribute wealth and improve quality of life and work.
Gary, I am surprised that you don't have more exposure yet.
Your logic and presentation are incredibly clear and easy to understand. Thank you very much.
Nobody is talking about this .. I agree not enough people are talking about this ..
I'm not surprised. Think about it a bit more.
Thank you Gary 👍🏻 Inequality should be being discussed much more in the media and within politics, it’s becoming a huge problem for society.
Totally agree, the current system is creating a society of indentured servants.
The UK's shortest serving PM, yeah her lol, once said something along the lines of "we should stop concentrating on redistribution of wealth and that's it's talked about too much" in one of her car crash interviews. Must be living in a different planet 😂
Then we might actually stop blaming each other for our troubles, then stop blaming ourselves, and then who knows…
Inequality is created by those in politics and the media, they are controlled by the wealthy.
It should but why would it? The MSM helped NOT ask the questions that would have pointed to how unequal society was becoming, never mind how corrupt. 🤷🏻♂️
We can't afford to have an "I'm alright Jack" attitude. I've added a famous poem below written by Martin Niemöller during World War 2. Instead of Socialists we could read Rail Workers, instead of Trade Union's read Nurses, instead of Jews Postal Workers. The point is that we are all affected by Wealth Inequality and need to support each other. United we stand, divided we fall (get poorer).
First they came for the socialists, and I did not speak out-because I was not a socialist.
Then they came for the trade unionists, and I did not speak out-because I was not a trade unionist.
Then they came for the Jews, and I did not speak out-because I was not a Jew.
Then they came for me-and there was no one left to speak for me.
Hey Gary are you able to chat about the wage price spiral theory at some stage please? I feel that the media are using it to convince us to think we shouldn't have decent wages
Yes, this is a particularly infuriating lie. After all, wages are chasing inflation, not the other way around. An argument that above inflation pay rises will drive prices up may have merit, that of course has not happened.
Agreed would be a good video topic. It is a real thing. If I were a business owner and I suddenly had one of my significant costs go up (wage bill), I would raise prices to maintain my profits.... And there is the third variable that is never mentioned. There is the option to make less profit which is rarely mentioned.
Former USA treasury secretary, Larry Summers, called for 10% unemployment to squash inflation. He was literally on a tropical island, with palm trees in the background, when he did this. Calling for working people to be financially ruined from paradise to deal with a problem the wealthy have caused.
@@spatchcockdaniels1479 yes profit is an option. What about if there was policy in place to deal with the profits that are being made from the assets that the business owner is paying for which was the subject of the video.
Imagine if there was a wealth freeze for a year so rents, energy just suddenly costs less. That would impact those costs directly but also the cost of materials as the manufacturer suddenly had lower overheads. All of a sudden there’s a lot more money for wage rises. So, being practical, if a bit of both profit reducing and reduced overheads through policy is done, pay rises can then happen.
If people then have more money though that’s supposed to increase demand which increases prices thus more inflation. That’s where I would love a video to explain what can be done about that as the only way I can think to stop that is to do it slowly so the increased demand can be matched by increased production so that prices don’t rise.
@@Grandude77 Thanks for asking this. I think that would be a really great topic to explore!
Or doesn't flow, if you own almost nothing. Or flows away from you if you have to work for a living. Etc. Brilliant exposition.
At the beginning of the video, Gary mentioned that Wealth in the UK is "physical", and he's right.
But there are also non-physical examples of wealth that poor people/people without capital can create, such as music, or art, or cultural contributions. They then have the potential to generate higher incomes or the "rights/ownership" can be sold to generate an income, which can (as Gary described it) be DIVERSIFIED into other forms of (physical) wealth.
@Sonney O'Brien problem with most of those more intangible assets is they are unpredictable and high risk. For every megastar, there are hundreds, maybe thousands who don't make it
Whereas you buy a house, especially under a government that is biased heavily to benefit property owners, that's predictable and low risk
That's why rich people buy houses rather than sponsor artists and musicians!
It's getting close to the time the wealthy throw us a bone to make soup from and tell us how lucky we are to have more than we had before...
Keep on making the content Gary.
Redistribution is now the only way forward to a happier and healthier world...
Happend in 1997. Obvious the Tory’s we’re done. So instead of a real left wing govt we got Nu labour.
redistribution is a form of tyranny and this is coming from an immigrant with low income background
@@theoddone887 This guy's full of himself and I will probably get a strike from commenting on his videos. But he says things that are agreeable but this whole thing looks to me like a pr stunt. His whole demeanour and he acts as if he's relatable when in reality he was at some point definitely, but now he's just another sell off trying to push his ideas. Pay attention to his scenarios, he's always filming with very simple relatable backgrounds, wearing a simple clothes, the way he speaks, it's his brand, but his ideas revolves around the old adage "One for thee, not for me" he talks about wealth taxation while he excludes himself of the wealthy and says he's not, but if he's such a great trader his net worth must be around the 100s of millions unless he's just another dog that barks too much but never bit anyone. So in all the fairness the tax burden is always going to end up in the middle class because the wealthy will find a way around it, also he loves talking about how you can't make your way to wealth trading but forgets to mention that trading is never about making money, it's all about capital preservation and not losing money. There's a bunch of nonsense and it just strikes me as a brand he uses to get more views. Anyway he's got good economics understanding and if you can filter out the bullshit there's a lot of value on what he talks, but also a lot of rubbish.
@@theoddone887 Redistribution from whom to whom? When my expenses for basic services double, is that redistribution?
So well put, I work in tax policy and its so hard sometimes to convey this message as succinctly as you have. Thanks!
What do you do?
Thankyou for doing these videos my daughter is at Exeter doing economics and I share your videos with her. I'm a classic working class financially struggling guy who's only recently woke up. Thanks again
Thanks for sharing!!
This is my first video I have seen from you and I just wanted to say that you are the first person I have seen who has adressed our economic system as it is with graceful and percise articulation about our economic issues
Thank you for that, Genuinely
Thanks boss!
Very concise and well said, as a young person this is great to see this kind of educational material, please keep it up!
I'm not the most confident writer, so I used Chat GPT to write letters to my local MPs this morning. Been watching Gary for years and this video inspired me to get up and do something. Maybe a mass contacting of government will have them see that lots of people are cottoning on to this now.
fantastic use of ChatGPT... hope others follow your lead..
You should write to every MP.
I'm a writer. I'll write it for you if you want?
Just gimme the bulletpoints you want me to cover and the tone.
I used to get people out of unfair parking tickets all the time at my old job with a bit of formal speech.
@@Palemagpie Chat GPT is taking over mate
@@earthman6700 Absolutely and another message would be to vote the Tories out in the next general election and give Labour a chance to rebalance the economy.
Brilliantly put. My main concern is that as soon as redistribution of wealth is even hinted at, the tabloid press go rogue and convince the struggling public that there is no alternative unless you want to become soviet Russia. As we know that the most influential forms of media are also forms of wealth. When I say tabloid press I don't necessarily mean literally newspapers as these companies have evolved into many different areas of influence.
Soviet Russia might be a better option if the wealthy don't listen. Of course, such an economic-political system will fail. It creates elites who then dominate and extract wealth from the people. Humanity needs another political-economic system. Quite what is the question? People need to be rewarded for innovation, and hard work but not to the point of billionaire status.
That is why todays generation is ditching the "tabloids" and CNN/FOX for TH-cam to get real non BS information. Its why the Govt wants social media to have control of you, so they can try to control everything.
@@vortexfx420 the tabloids own much more than just newspapers. They have fingers in all sorts of disinformation and much of it will be on every platform. TH-cam also has its fair share of bull****.
Truth indeed
because they are owned by rich old men like Rupert...
Brilliantly explained again Gary. It's true that most people don't know or think about wealth.
We need to get Gary’s knowledge and expertise out to all generations. Excellent content and very insightful and inspiring ❤
Hi Gary, I would like to thank you for everything you are doing. The way you explain complex subjects in easy to understand language is fantastic. Please keep making videos like this. I find these topic’s fascinating and I love tuning in every Sunday to listen to you. My best regards.
As well as taxing the rich, look at where your money goes. Support the 2nd hand market, use less where possible, support local growers direct for food and participate in the gift/sharing economy.
I wrote to my MP last week to ask her to question why one of Rishi Sunak's 5-priorities wasn't addressing Wealth Inequality. We all know the answer to that. I also asked why Labour aren't campaigning to reduce Wealth Inequality. I await a reply. We should all be challenging our MPs to act on our behalf, that is their job as our elected representatives. Unfortunately, more and more they seem to consider their own interests before ours. I have cut right back on spending, including turning the heating down to 17c. That isn't great, but I am determined not to lose my house. I work in the Public Sector. We received a 2% payrise, or actually a 9% real term pay cut. Hopefully people like Gary will help wake people up as to what they can expect if things carry on as they are. There is too much apathy and ignorance at the moment. The Industrial Action across numerous business areas shows that there is a will to fight these policies that are taking wealth from the majority give it to the minority. That will needs to be supported, and it needs to grow. Some of these people have no empathy, integrity, compassion. Those who can afford to should pay more to support Public Services. We need a Fair Tax System, no Loopholes.
Absolutely agree with the words you wrote........with the exception of, ".....We should all be challenging our MPs to act on our behalf, that is their job as our elected representatives..."
Contrary to popular belief - 'we actually work for them' [imo] - as all they are doing is [blatantly] syphoning off public money into their pocket. It's despicable really.
Maybe the apathy, from us all, stems from [imo] that we are just too divded nowadays, nobody seems to care about one another - - 'dog eat dog world', and all that!?!
Look after yourself out there citizen
:)
Look up what your dear MPs in the UK did just now. Rishi Sunak approved 5.5% salary increase for the MPs 😂😂 apparently it was done to keep MP motivated despite inflation but I think he's just buying favours from them
Your leaders dont give a sh- about you lot and yet you serve them like the good little boys you are
I applaud you. I would call this a basic explanation of real world economics. An economics that is actually interested in ordinary citizens, their wellbeing as well as the functioning of civilised society as a whole, rather than the compounding enrichment of a tiny class of ever more wealthy elites.
I recently watched your one on one debate with Mark Littlewood from the IEA and have to say I was extremely impressed. I've met him through work a few times and have to say he always seemed quite unpleasant but your unique personal story as well as your competence simply disarmed him, they had no comebacks at all really.
Joseph Stiglitz, nobel prize winner for economics, says that rent-seeking is corrosive to a country as it creates an inequality trap. High inequality sets up forces to create even higher inequality = the inequality trap.
One of your best yet Gary. Helping people to truly understand the difference between Wealth and Money and how Money flows towards to Wealth to compound it. Great stuff :)
Heck dude. That was your best economic summary yet. Package that down to a 10min TED talk and please get it to ordinary people!!
Great to see you on the BBC Gary! Hope you get lots more bookings.
I see the economy as a game of monopoly.
1 player owns 53% of the board and is lending money to the other players to perpetuate the game.
Gradually that 1 player is increasing the % of the board they own.
The rich/poor divide is only going to get bigger, because the system is rigged to make that happen.
Time we started talking about congratulating the winners of this game and play another game where the economy rewards hard work and not just those who know how to rig the system.
That’s why Monopoly is such a shit board game, because it’s such a good analogy for capitalism
@@alfiecdyson the original game was the opposite Aim of how people could work together and beat the landlords and banks !
Monopoly & fishing with Cormorants 😄
Gary is the walking embodiment of someone who worked hard to achieve success. And yet he seems peculiarly reluctant to help anyone else achieve success.
His TH-cam channel is exactly what he proclaims to despise: an asset owned by a rich person.
How about we redistribute your subscriber and ad revenue to everyone who comments on a video? Share the wealth Gary. 😊
@@thejuicydollopRead his book. He describes how he's not just worked very hard - he's had some outstanding luck
This is quite literally what the creator of the Monopoly board game was trying to teach, but somehow the message got lost. The $200 you get from going around the board is like your salary in that game, and you quickly realise it won't save you if you don't invest it well. People shouldn't feel dirty about investing - it's the system we have and it can be one of the only ways to keep up - but more need to have the courage to put the fruits of their investments towards building a fairer society. Unfortunately, many of the beneficiaries of this system have little to no interest in helping the people who don't understand it.
This is one the few people on TH-cam telling the truth unlike most of these scammer gurus
Really brilliant to see you on 'Politics Live' today Gary. Thank you for your Voice!
You can clearly see that the BBC and the wealthy, do not want to give the ordinary people a fair opportunity in discussing the options and ways of Taxing The Super Rich!!
That Tory woman in the white turtleneck really felt the metaphorical noose tightening as she listened to Gary tell the public about her crimes.
This is possibly the best and most effective Vid youve made since you opened this channel.
well prepared, professionally produced.. well scripted, fluent and direct.
Had been afraid for a while, you'd lost your way. with book etc.
But 100% well done here. a valuable simple words ideas .. holds attention..politically neutral in factual analysis.sense
A bit long? maybe. But youve done great job compressing lot of complexity even into 20 mins.
Great Job Mate.
The clarity this has given me is unbelievable. I am aware however that i wouldn’t have understood this if I hadn’t been watching your videos for nearly a year and trying to understand the economy through other sources.
Gary, if you can, please work on a short simple video series, high production value, with visual explanations of everything you have taught me over last year to now so that someone new can grasp what is happening quickly. If ordinary people understand what is happening we have more chance that they will get on board with your message and when the time comes to show the government that there is support behind a wealth tax and closing the loopholes and it is a vote winner (their words) there will be an army of people who understand why lots of government spending can be funded in this way.
Imagine if taxes on working people went down and the government had more money because they were taxing wealth efficiently and the reason for that is that ordinary people were just spending more which went to the wealthy who were then being taxed more simply because the economy was doing well. That’s the rich happy paying tax and ordinary people happy paying less tax and hopefully accumulating some wealth. How mad is that.
Not mad! You got my vote 💪
@@alfiecdyson 😆
I'm not sure the rich will ever be happy paying tax, regardless of the outcome 😂
@@George_Montagu I prefer to think of it as paying more tax is a good problem to have. I don’t think anyone likes paying tax though 😅
It's made worse because rich families protect their assets whereas ordinary people can't which means ordinary people pay tax on assets they pass on, whereas the rich don't, which is why the system is broken.
Hi Gary, another brilliant video. I love the passion you deliver these videos. This video was so descriptive and provided such a high level of detail which keeps things simple (simpler) to understand. I have a 7 year old and it worries me she will not be able to afford her own home. My wife and I save all we can to not let this happen. Without you and your videos I would not have been as knowledgeable about the current situation and wouldn’t be saving as hard to protect her future x
Your best video yet @GarysEconomics.
Just 3% of Rishi Sunak’s £700 million would be £21 million per year. I guess this might be closer to the mark than the £2-3 million you mention. Much of this wealth is his wife’s assets but the point still stands.
Ya I think Gary just made a mistake here because he has mentioned the amount you refer to in the past. I think he meant £20-30 million. I look forward to a coffee and Gary's economics on a sunday morning these days
Thank you for your work!!
It's socialism or barbarism - This is why I am a communist, it might seem radical or even ridiculous. As far as I see it, Capitalism as you so eloquently explain, inevitably leads to this wealth stratification.
I am not saying that forcing our nation's governments to tax the rich is a bad thing, no, it's the correct and completely necessary thing to pursue, no matter the difficulties.
Though my sense, from my own life, is that any gains made today, will be siphoned off over time and the cycle of the rich accumulating more and more wealth will keep repeating, as the wealthy will eventually (as now) gain majority influence/control of our governments.
This is a struggle for the survival of our nations, our children and even ourselves.
If anyone reads this, please keep an open mind to a socialist solution as the alternative is wealth and government in total allegiance, which is by definition fascist.
Hello Gary. First of all, I want to say thank you for explaining things clearly. I have seen many of your videos. I understand you are really putting yourself out there for real equity. You have a very deep understanding of economics. Tax the rich for all that income and roll it back into the economy. Otherwise, there will be no economic system left - except for the very wealthy. The rest of us will be eating bugs and grass.
This is the best explanation of capitalism I've come across. That it's delivered by a millionaire without any shoes and socks on is just the icing on the cake.
I give 'thumb up' to GarysEc's' b4 I even watched vid. That's how excellent I rate Gary!
Well said. My tip: next time there is a stock market crash, buy buy buy good quality shares. Buy anything good! The market always recovers. The trick is to save as much as you can and patience.
Omg it just clicked!
This is why we're seeing a big drop in productivity (in the UK). They blame it on the working class, but it's the wealthy hoarding assets and not investing that's causing the drop.
Cheers Gary your video's are great 👌
“Hoarding” isn’t really the issue, so much as it is financialization and asset-collateralized lending.
If you remove the wealth and redistribute it, it will just end up in the same pockets again...
@chrisb3189 not if you tax wealth properly l. That doesn't stop governments being shite with the money though. We have to find a way to stop wealth inequality spiraling out of control.
@@seanwieland9763more of it in fewer hands is absolutely the problem.
Consumers are the true job creators
I have long understood this on an instinctual basis but until now have never heard it vocalised so succinctly.
Hi Gary, I am going to buy your book when it comes out to support you. I watch all your videos and you make so much sense. We have such a corrupt government. You are so right about us looking long term and working together to fight back. I am sharing your message.😊
We've mastered canals in the UK so we should be able to master 'wealth flows' and to understand what Gary is saying. At the moment the wealth is flowing one way only, from the bulk of the population to the rich, from the rivers to the rich sea, a sea that has very few rich fishes. We need to build canals into the assets that the rich have fortuitously accumulated at the expense of the bulk of the UK population. Gary is educating the masses on wealth flow, we the masses have to re re-invent the canal and build financial canals which distribute the opportunities to own assets all over the UK. Afraid the opposition doesn't seem to be up to that type of thinking. They need to receive a wake up call from the people that siding with the asset owners is a zero sum game in an election.
Thanks again Gary. I am trying to push the message at every opportunity.
Thanks Gary! One thing I've not heard mentioned so far is that a collapse of the middle class also causes consumer demand to hugely drop worldwide/nationally, harming almost all types of businesses along with it.
Otherwise called a 'rentier', i.e, tollbooth, neo-feudal/capitalist economic system. Essentially, this is a simplified version of economist Michael Hudson's very valuable works (See for instance: 'Killing the Host')....and, of course, that fine fellow, Karl Marx.
A very interesting, depressing but also, a very important message you are sending out.
I could see the writing on the wall many years ago, when I failed to ever be able to buy the property that my late father was able to purchase in his life. Times are tough and getting tougher.
Good luck everyone, let’s hope we manage to reverse the trend one day?
Thanks Gary! The rich clearly avoid a lot of tax and wealth is hardly taxed, yet we are we told the tax burden is as high at the 70’s? Is this beacuse the burden has moved to ordinary people more?
As someone who also came from a working class background and became financiallly independent by acquiring income producing assets I totally agree with what Gary is saying. However I'm not sure how working and middle class individuals can change the system even if they are aware of it.
Thank you for the breakdown. I wish I understood these golden nuggets of knowledge years ago.
At the time of writing, one in 8 people are liking the video. That's a really good response rate. Cheers for the video, nice and informative.
I've understood this concept for some time now. Speaking to friends and family, I make the analogy of the inheritance tax that middle class families have to pay, from generation to generation our wealth is slowly getting bled dry while for example the extremely rich can afford to offshore and hide assets or in the case of the royal family don't have to pay inheritance tax on billions of pounds worth of inheritance like King Charles inherented from Queen Elizabeth's death.
if you're privileged enough to inherit assets why not establish a trust fund and put the wealth in a trust to make it immune from inheritance tax? It costs around 4k to create a trust which is a small price to pay compared to a 40% inheritance tax on your property being passed down. emulate the rich's behaviour. the information and knowledge is out there and freely available
The assets belong to the Crown (the institution) not the individual people. That's why things like inheritance tax don't apply to them.
Thank you. The information you are sharing is exactly what is needed to help reset the balance. If the people know & truly understand the system, I’m convinced the system would have to change accordingly. Thank you, please keep educating - please start going into colleges & universities even schools..(if you are not already)..
The problem with this is each generation *is* richer than the last, in spite of everything. This is because the rich need to invest in *something *. Assets fund things. They have to invest to make money to sweat assets.
I'm not sating it's the optimal system, far from it. But the narrative its all disastrous is nonsense.
Life is getting better. It has every decade. It gets better because work happens to make it so.
The debate should be around who gets the right share of the proceeds of that work. Not whether work makes life better or not. Because it makes life better. It's just who benefits the most from it.
This issue of generational wealth drain is pretty obvious to every person under 30, its just the ocean we swim in. Whereas it's basically unintelligible to those generations currently with wealth.
Land Value Tax fixes this.
You can't just raise taxes on the rich yet again, as yet again they will evade it leaving us with the bill. All taxes need to be replaced with the Single Tax - LVT. LVT rather than actually being a tax is a reliable revenue for community expenditure, it prevents land speculation and land can not be shipped off-shore.
Well done Gary! Keep up the good work!
This is a good exposé of the polarisation of wealth for the benefit of those who own the wealth, and to the detriment of those who create the wealth. It’s an absurd situation in which young people graduate from university with so much debt that they can’t begin to accrue a functional level of wealth, nor barely engage with the economy other than in the form of a wealth-creating drone.
We are world beaters at both creative accounting and food banks. The rich make the laws with loopholes for creative accounting. NB. Why are land assets non taxable on death and yet attract land grants throughout ownership? It is because most is owned by those who make the taxation laws of this country ….I could go on….
Brilliant, Gary. Makes complicated things sound so simple, this should be taught in schools. The system is stacked against those who have little but, with knowledge, people may be able to overturn this system by working together.
This is a good idea. I know a few teachers and, unsurprisingly, they are disgusted with the way the Education sector is going, so I'd imagine schools - at least the ones that aren't run by profit-making private trusts - would welcome an initiative to educate the kids about this
The richest 1% have pocketed $26 trillion (£21 trillion) in new wealth since 2020, nearly twice as much as the other 99 per cent of the world’s population, an Oxfam report has revealed.
Gary, you have brought this issue to the forefront of your subscribers minds along with all those with whom we interact. Now you know that every successful venture should show growth and that happens when we set and reach goals and targets. This means that your troops have to work with these principles rather than wait for generic action to take place. One of our targets should be escalating a demand that any political party we support should have as part of its manifesto a clear declaration that it will set out a tax of at least 1 pence on the pound for every wealthy person above a discussed level (say Ten million pounds or dollar equivalent). This is the most leveraged approach to get the disparity level reduced since that group cannot avoid the effect their ownership and cannot defend this massive drain on the economics of the middle and working class. Your message is clear so action steps have to be presented going forward ,We know that politicians act only in respect of votes.
his is my first video on your channel, and although I haven't watched it yet, I have already subscribed. Please don't let me down like the other guys. I have watched your interviews, and you seem like a genuinely good person, so I'm going to give it a fair chance.
Gary, I stumbled across your channel and am so pleased I did. It’s refreshing to hear a knowledgeable individual with an accent. The class system in this country really does prejudge regional accents. Keep doing what you do, love how palatable you deliver.
That you Gary for your clear concise explanation of how the rich continue to get richer while regular folks is transferring their money to folks who has tons of money and wealth....thank you for this...a lot of people don't really think about this . I am gonna do a video myself about this....very,very thought provoking...how wealth flows..great explanation!!!!
Thank you so much, Gary. Still banging the drum 🥁 for the masses / hoi polloi / ordinary people . 😉 you really are passionate about inequality.
you should have discussed the solution! i.e if uneven wealth distribution is a problem then what would the change look like, and then what problems could come from this. The end of this was anti-climactic.
Hi Gary, I appreciate your focus on housing, but in your peice on wealth and assets I think you missed out an important type of wealth. National infrastructure and the social safety net is a huge form of wealth collectively owned by everyone. One thing we see in these hard times is austerity, which strips back on spending to maintain these things - most topically in the NHS. The ultra rich are unaffected but allowing infrastructure to crumble is a huge loss of quality of life for the rest of us.
Thank you you again Gary Stevenson. Liked and posted to X. This is a real blind spot. You spell it out so well. So actually, buying food pays a sort of tax to wealth owners, even though food is not taxed directly to support local services. I want you to know I check the closed captioning on many programs. This one is really accurate. Very important for people with hearing disabilities or have different ways of speaking English (accents and usage differences). Oh, and it uses British English spellings (for instance, realisation: in American English it is realization). Thank you again.
The Medici always talked of a ‘river of wealth’ ie it was not money in itself that made you wealthy but where and when you invested in assets and when you then divested to capture your gains (and move it to the next asset to generate additional wealth)
Brilliant video Gary. You explain these ideas and concepts extremely well.
It’s refreshing to see a person who’s made it from nothing to something and remember where he came from. I’m not rich but live fairly comfortably and I remember and still hang with friends which will never understand why they are were they are. It’s very discouraging speaking to them because most of them believe in taxing the poor and allowing the rich to pay very little as a percentage of their income in taxes. They can’t seem to understand the difference between making 1,000,000/year and and paying 100,000 in taxes and making 100,000/year and paying 30,000 in taxes. All they see is that the person making 1,000,000/year paid more than 3 times the amount of tax.
It seems to me like most poor people do not understand how they are poor and think that taxing the rich to redistribute in the economy is somehow going to leave them jobless. How do we change the narrative for these people when everything they hear from small business owners to the media tells them the opposite? It drives me nuts.
encourage education as means to escape poverty. leverage said education to attain skilled or professional work (from studying in STEM). work in your higher paying field of expertise for some years, accumulating as much cash and experience in your industry as possible while simultaneously not succumbing to lifestyle inflation).
With a cash reserve of 100-200k, saved over 5-10 years, deploy capital in major investments such as businesses or real estate.
Seek investors from networking to fund your business. UK is a service based economy rather than a product based economy like the USA. Create a business offering a service, this can be as specialised as creating your law firm if you studied law, or it could be as simple as owning a car wash which can generate £250-600k revenue per year depending on your location and how busy you are.
These opportunities are still available for me, someone who grew up in the UK poor in an immigrant family that made bad financial decisions and fell for interest only mortgage scams.
I believe that if you are hungry enough, you can attain it. If you're an easy going guy who goes to the pub and watches love island and doesn't do much else beyond that outside of work, i'd bet that you will die poor and your children will suffer from the inequality that you did nothing to counter against for the sake of their future.
But maybe my plans will fail and I could easily share this fate too, we shall see. I fear mortgages due to the usury amortization scam that they implement in their 30 year payment plans, but im not sure how else to acquire a property without taking the hit. Perhaps buy property in cash with 25% down payment as an LLC so I dont take the hit. then rent it out and let tenants pay the mortgage over time while i get paid dividends through teh LLC. not sure what tax implications are but i intend to pay as little as legally possible. if theres legal loop holes i will take it. fuck tax and fuck wealth redistribution by the hands of the government to put into the pockets of the financially irresponsible
Great work Gary! That is an excellent way to explain it. However, taxing the rich is not a solution. The rich will not merely stand by and let you take from them. It's more likely that the economy will shrink as money leaves the country, avoiding higher taxes targeting the rich - assuming you have a concise definition of what "rich" is. Some jurisdictions offer incredible tax reliefs; the rich would simply move there and become citizens, while most people would still get taxed on their wages with less hope of an optimistic future in a country that's on the decline that they can't leave since they aren't rich.
13:30 Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.
Very interesting and undeniably true. Wish I'd known that back in 2010, then I'd be sipping cocktails in the sun now!
Surly the best way to limit equality and transfer of wealth is for the state to own as many of the essential things we have to spend money on as possible. That can then be used to lower taxes for ordinary people and put back into the system to be re-spent rather then being locked away. Privatisation was the start of all our problems.
State management of anything is a shortcut to stagnation and corruption (see communism for a century of data)...what used to be called civil contingency (the basic services needed to run the country in time of crisis)should all be state run (at the cost of the above mentioned stagruption) this is simply the base cost of maintaining freedom and free market economics.. however housings is not civil contingency and the basic problem with that is that the profits from inflation are not taxed..this creates speculation and money going into accommodation that should be invested in buisnesses to power growth.
He has put something in simple terms that many people do not have a grip on - well done. This can also be well illustrated graphically using balance sheets and income accounts
Thankyou gary you're a legend! It's good to see someone working class and british talk about these things, it's about time we had equal representation in parliment too! I'm sick of being told what to do by the super elite and rich that do not represent 99% of us but the 1%!
I am learning loads from Gary and this channel but bloody hell im bricking it a bit.
Swear I’m just gonna buy things that don’t go out of date and things I can hold. Gold coins, canned food, im not even joking, that is my investment strategy.
Kitted my whole house out from charity and dump shops, simply because they were cheap assets. Know it sounds mad but wood tables and chairs are gonna cost bucks soon, and if needs be I can sell them. Hopefully I won’t be sitting on my backside eating my tin of beans too soon
I think the bit that Gary doesn't cover is global population growth. UK population growth, immigration and it's effect on asset/house prices.
Also quantitative easing how that sured up the banks at the expense of ordinary people.
The COVID response also went via employers and saved business first ordinary people second.
Thank you, Gary! Your work matters!
very nicely explained i have same thought about this trap
I think this is your best video yet mate. Great stuff
Gary for P.M. Sp well informed…sooooo brilliant.
Recently found out about you. Keep up with the great work
Gary has really made me think - I was edging right trying to get some growth into the economy but this all totally makes sense. It is very hard to understand how assets just keep going up without this info. It is also now clear that this will not correct itself in the way we expected it to in the 'old days'.
Thanks Gary, as you say, bleak. But given that we have a political system that is unlikely to change, irrespective of the party in power, the prospect of the implementation of a fairer fiscal system is frankly negligible. How do you think we can realistically alter mainstream economic thinking to embrace the taxation of wealth?
You are very good at putting things into simple terms. Thanks for making this video.
Skills is wealth, knowledge is wealth, corruption is wealth. Real wealth has utilitarianism and can be easily leveraged for income.
Thank you for making this video free and accessible! ❤
I really wish the people that need this knowledge would find your TH-cam channel… even the algorithm is against us :(
What’s your opinion on Bitcoin please.
In a way, Garry isn't telling us anything that we couldn't already know for ourselves. But the shame of it is that no one thinks about this stuff, except for people like Garry or rich people.
Well done Gary! Sell that to Kier Starmer, Labour & the Lib Dems. The greens already have the message.
I hope Keir Starmer is subscribed to this Vlogger. Keep it up Gary, the message will get through, but must be handed on by each of us that understands your message.
I think the example of the PM making 3M per year is miscalculated. 5 apr of 700m is 35M, not 3M. Which sounds 10 times worse actually @GarysEconomics
Yeah it's 30, ur right. There was an error in this vid
To change the system for everyone’s benefit - not just the rich - then more people like yourself Gary - need to get into positions of power - whilst the rich continue to dominate those positions (& get donations of £millions as a thank you from their rich friends for maintaining the system) obviously nothing will change
Great video Gary. Impressive, the way you're able to share your knowledge in such an understanding way.
This was my first video I’ve watched of your and I’ve got to say you’ve made an excellent case for taxing the rich. I believe you’ve changed my opinion on this subject.
Like you said it’s all very bleak.
I’m about to turn 35, single male, living in the Midwest USA, earning between 80k & 100k per yr as a chemical tanker truck driver. I live on the road nearly full time sleeping in my semi which is owned by my employer. I live way below my means, drive a 15yr old Honda civic, don’t wear fancy clothes or go on expensive vacations.
I save & invest 50k per year. I’ve hit 100k between a Roth IRA & a traditional brokerage accounts 6 months ago. I own a single family home in Cleveland Ohio which I rent out as a short term rental & recently bought a 2nd duplex 35 miles outside Cleveland as long term rental. I’m certain I’ll be get to a million dollars. I want to be more than a tiny minnow in the sea.
My question is how do I try to profit with the cards I am dealt?
@gary - Can you do a video on the reasons why the FTSE is at all time highs yet the economy is tanking, house prices are weakening, construction is slowing down, exports are less month on month, inflation is still rising… etc
Outstanding. Send this to teenagers today! And their parents and grandparents, toay!
Phenomenal explanation ... if you keep pumping out content like this, I'm very confident your channel will reach massive numbers. Thank you for lending your insights and analysis to the world conversation. For a great many, economics as a field of knowledge seems a bit arcane, to have it explained plainly by a regular guy, very well versed, is enormously helpful. Thank you, Gary!
Great video thanks Gary. The term "Raising the Tax on the Rich". I understand can be interpreted in different ways. What we should be focusing on and saying is "Stopping individuals AND companies from exercising tax loop holes". I hope this rephrase may get some people to see the situation differently and in the right way.
My personal opinion is that there should be a flat rate tax on all earners regardless of wealth. "Raising the tax on the rich" to many people implies increasing the tax rate of the rich based on declared PAYE earnings, this solves nothing.
Excellent. Simple effective communication ✊🏼