@@chrisnuk It will do no such thing! They're always threatening that, which is why they remain untaxed. That said, international co-operation is needed and long overdue.
@@sichambers9011 As long as we understand that countries that control their own currency like the UK have much more power over the markets, things could change. The notion that states need to go to markets in order to borrow their own currency is absurd and very convenient for those who love austerity
"How can wealth persuade poverty to use its political power to keep wealth in power? This is the whole art of Conservative politics in the 20th century." Aneurin Bevan.
@John Wright yes! And ‘trickle down economics’, ‘taxation will cause capital flight’ and my favourite lie ‘social welfare handouts cause inflation’ - governments are a lesson in brainwashing.
Im 60 years. Divorced. Close to retirement . I own 2 houses. Was thinking of selling one to enjoy my retirement abroad. Now, I’m thinking about my 2 kids who are just finishing uni. I will not sell my properties. Will pass them on to my kids. I will ask my kids to give me £500 each a month to live in a cheaper Mediterranean country.
You probably want to speak to a professional, you may find that if you give the houses to your kids now and survive another decade then there won't be so much tax.
Dude, you are blowing my mind with how much this resonates with how the economy 'feels' rather than how we were told it works. I was feeling smug about my huge mortgage being inflated away, but this makes me think that my 'sell the house' retirement plan might not work out so well for our daughter. The truth hurts. All of the government interventions that have enriched the already rich: 'Never let a good crisis go to waste' - Winston Churchill
Glad to hear that the videos are helping! I think this is a huge problem with our political/economic system at the moment. Ordinary people are being kind of seduced by rising property values, without realising the damage that it will do to their children's and grandchildren generations. Then it's no surprise we are this huge bifurcation by age in voting patterns. I think a big part of what we need to do here, is explain really clearly to older generations what a terrible situation is being created for their kids and grandkids. If we can achieve that we'll have taken a big step towards positive change
Gary - you have misunderstood one thing.. the tax revenues collected and the wealth tax does not benefit the citizenry.. if it did then id be happy to pay more taxes to help everyone. The tax money goes towards funding wars and into the pockets of the politicians. Our politicians decide where the money gets spent. If we send $5B to Ukraine for defense for example, that’s actually $5B in purchase orders going to Raytheon and Northrop Grumman, companies which our beloved politicians have already loaded up on shares for so they can collect the dividends. It doesn’t work when our politicians are allowed to invest in companies and they also get to decide which companies to give the money to
I've been collecting and reading books about inequality since around 2014, but I am poor and have lived in public housing most of my life. No-one around me ever seems interested in engaging in these issues, and I guess because of my position in life not many people listen to what I have to say. Although I get a lot of personal satisfaction studying these issues, I feel like I have been investigating this stuff in a vacuum. It is so refreshing to hear this information coming from someone people might actually listen to. It's also been helpful to consolidate some of my own knowledge. You put things in a way that is easy to understand and relate to. When I saw you on that BBC panel I felt represented. Thank you.
@@last_samurai6690 you're right, but it's difficult to know where to start. I do my best to inform people but I'm far from the type of person people would turn to for information about the economy. The best I have managed in the last few years is to talk to people face-to-face and circulate a few books around. I have spoken to a few local and federal politicians about it. I've thought a lot about what I can really do and the conclusion I came to was just keep talking about it, keep educating myself and wait. I figure it's only a matter of time before people start looking around for solutions, but in my experience, people aren't interested until it affects their bottom line. So if things are going to get worse it's only a matter of time before people come looking for answers. I'm just doing my best to educate myself until that day comes.
@Nathaniel Roach My advice was...stop talking about it, doesn't change the course of history. Stop waiting for something to change for the better. I'd anything it might get worse. These ideologies and talks of a better world have been the focus of all politicians both local and international since the end of Ww2. But the reality is, on the grand scheme of things nothing changes, for the better, at least collectively. However individually there are things you can do to improve your lot I life, using maybe the knowledge you have accumulated. Maybe from there you can help other people around you and eventually more people later. Do not expect a world where things will be smoother, despite what these ideologues on YT, in the media, academia etc want you to believe. This is as good as it gets, especially in the West. Speaking from someone who grew up in small poor country at war, now in the West.
I suspect you are more powerful than you realise. You are able to introduce ideas to people who would otherwise have no access tho them. This is a huge achievement. Teaching by example is the greatest of achievements, find one small thing you can do and do it, grow food, swap something, share something, build your community, keep talking
Dude seriously, type David Fogerty in the TH-cam search he is a genz. He is a self made multimillionaire who was one of the new trend of people to start a business with $500. He made the Oodie. The secret to getting out of your situation is to create things people value, thus why doctors are paid so much as people value not being dead.
This resonates massive with me, especially the comments on mental health. My wife and I grew up within working class families but were told if you study hard at school and work, you can have a better life. You fast forward to us now in our late 20's, two people STEM PhD educated and both earning double the national average salary and we're lightyears from ever achieving assets. I slowly came to your realisation about the asset economy throughout the pandemic and I became a very moody, bitter and cynical person because I thought I was sold a lie. Slowing working through this as I know it's just the cards we were dealt unfortunately. I don't know if things will change in our life time, but hopefully when we have kids that get to our age, they might be in a better position. Thanks again Gary
It's crazy and very understandable that you got cynical.. I have also been noticing the latest trend of highly successful/educated people in age range of 50+ raging against young people even studying/achieving PhD/similar level... I believe that is because they know they don't need more educated poor people, they would much rather exploit the rentable services of non-asset holding (lower)working class people who all have 'traditional trades' that are of use to the asset-holding class to a) help build their house b) clean their house c) service their various assets d) work in the various shops, bars and restaurants that they like to visit ... not hard to see where such a system leads.
the ONLY meaningful thing you can do is become politically active. Somehow it's the last thing anyone thinks of. It's like it's uncool. But this is the ONLY WAY forward. The rest of your post assumes change will come without your personal involvement, as if it will happen somehow independently of you. No. You, I. All of us. We MUST agitate for Tax change and don't waste your time with the Conservatives. Obviously. Change must come from within. We must agitate and keep the pressure up. They WANT you to fall into a heap. It's part of the reason they make it almost impossible to survive. Nobody has got excess energy but we must find it.
Your post really helps me. My wife and I recently entered our 40's, degree educated (wife studying for a masters). We were always told by our parents "study hard, go to Uni, work hard, buy a house" but it hasn't worked out that way. This video (and your post) makes it clear why.
Politics exists to protect and enhance the prospects of the rich. Chiefly corporations but increasingly the personal wealth of the elites (the billionaires club). A lot of people believe that under the historical "ancien regime" aka feudalistic kleptocracy the way that (the large generational asset owning and passive income class aka the Sunaks et al) wealth and power was obtained and protected was somehow different from "democratic society". In truth the only difference is they replaced a monarchy, which was inherently unstable, with a house of *their* representatives. So, if we look at the British civil war, the asset owning class (who had always had their interests entwined with monarchy which was itself based on clan and family ties) simply rose up and replaced that now defunct monarchy, who no longer had clan or family ties with their asset owning class, with what they termed parliamentary democracy. To protect their interests and ring fence their interests generationally. The asset owning classes through the pantomime of elected representation now have complete control over the economy and by proxy "society". The rise of global corporatism has since merely added a new top tier in the form of corporations (and all the appendant systems and services e.g. banking and trading of equities). The corporations control the asset owning class with whom they are in many ways indistinguishable and by proxy politics and "government" and by extension of government they control you. Specifically they can and do now limit your prospects, your children's prospects and generationally your children's prospects. TL;DR Politics is not something you choose to go in to. It is something you either own a stake in or work for as an employee. It is not a vehicle for changing your or your children's prospects.
It’s sad to see that even the rich developed countries are becoming more and more like Brazil, where I’m from, the most unequal country in the world. And It’s all due to politics, also because politicians are the ultimate “assets” of the super-rich. Your channel is great, keep it up! 👊🏼
Key message: young people, it's not in your head. ITS NOT IN YOUR HEAD. You should be kicking off politically (as should we all, on your behalf) before you have to kick off physically.
I am kicking off. But this has been the case since 2014. No cared then, that why young people are silent quitting. My house mate doesn't bother registering to vote, despite my best efforts. We shouldn't be fighting for this, those in their 40's, 50s and 69's who sir in power should be doing more. The short sightedness of the current political generation is outstanding and is killing the UK. The youth voted to remain, despite it being our future no one stopped to consider that. Get mad at the current in power generations and not us!!! You forgot us.
Brilliant. I’m not an economist but I’ve come to similar conclusions over the past 60 years, especially past 20, that we are returning to a form of feudalism, in many ways not just economic. My daughter is graduating in Engineering this year, good salary, and we have nothing to offer by way of assets. She will be watching your videos as she starts her career once her exams are over. Thank you!!! Keep up your work. You deserve a Nobel Prize in Economics for what you are doing. Not sure if the brave new world will recognize you for it, but I do.
Gary is the best. Every time I hear him speak I feel validated and learn a little more about the current state of the economy/world order. Cheers from the USA!
I love that he hasn't abandoned his own people. He could have sold out totally and become like the toffs but he has a conscience. He can see the solution and is calling it out. We have to do our bit now and become politically active. It's our responsibility to try. Painful as it is to sit through meetings of political parties, it's utterly necessary. Just demonstrating won't do anything. Demos rarely get reported accurately and they aren't en masse anymore. No, we have to go grass roots and develop a movement that overwhelms the powers that be. Already people aren't buying the Coronation.
That’s the purpose of TH-cam and user directed social media feeds. It’s to validate our inbuilt prejudices to confirm our own opinions. Confirmation bias. Too much knowledge is a bad thing. Google gives a multitude of information to which we apply our bias. Who knows what the right answer is when algorithms feed user search clicks into what’s deemed by user preference to be the right answer. If that’s how AI is learning we’re really doomed to intellectual oblivion.
It is incredible that most people don’t realize that “asset gains” are inflationary - it’s always more expensive for the next person to get in. Yes an argument can be made for stocks not being inflationary, but rather productive gains, but not when debt is used to fuel stock repurchases
All of what you say is so true. We are near retirement age and sold our larger, family home last year, using the proceeds to help our 2 daughters get a leg up towards assets of their own. It was possible because we downsized. An asset like a home means security and possibly can even help generate more income besides the usual job. We still live modestly and will hopefully be able to help them some more if times get worse. I wish this could be the case for many more people in your age group. It's important to help each other any way we can.
gary your rhetoric is so on point dude, you give me hope, can't wait to see your message continue to grow to the point of restoring balance to taxation systems, thanks for your work dude
Gary is speaking truth to power- we all need to listen and take steps to help ourselves, our families, our communities OWN their assets and protect our wealth. I’ve shared Gary’s videos with several friends- and young members of my family as they start their careers… it’s life changing advice.
Gary, I’m going to continue to spread your message for the future of my son. I’m a HCA for the NHS and I’m going to do my very best to hold on to my mortgaged house for him!
You have hit the nail on the head, however are your kids prepared to care for you in old age? Yes Boomer parents have got to give up on Cruises and sheltered housing etc, but the kids and their spouses are going to have to do the caring etc if assets or their value is to be retained.
My neighbour teaches economics at a university and he was explaining this to me one evening after a few beers and to be honest I didn’t really know what to make of it and definitely didn’t fully understand. I’ve been searching for the discourse on this topic in the months since and now that I’ve found this channel it’s like a light bulb moment. The penny has 100% dropped now. Thank you mate for this amazing content - clear and accessible. I want to know what we can do to make a difference
Hi Gary, heard about you listening to the James O'Brien show this morning when one of his callers gave you a mention. You explain things very clearly and I'm suddenly seeing the light! What you say makes so much sense and doesn't bode well for the future. Many young people growing up today may never own a home (asset) unless they get help from the bank of mum and dad. Things look grim.
Millions of people need to see this and hear the message from Gary. Not only in the UK but all over the world. We need to stand up to the elite who are bleeding us dry and killing us as they do so. There Is strength in numbers. More people need to collectively believe that. Im struggling mentally in my late 20s with a bachelors degree and working a min wage job with no hope for the future. I'm at the point over the past few months asking myself why I'm even alive if I have no vision for the future to enjoy but Gary is keeping the flame alive. Honestly thank you Gary for helping to pull me back from an increasing dark place. 🙏🏽
Dude, it’s not all about money. If you believe money makes you happy you have bought the lie. The sun still shines. Many uber rich are emotionally stunted and starved individuals living miserable lives. It is literally incredible that you were born and you have 80 years to view the universe.
My family and I hugely support you Gary - thank you for being part of the solution and not part of the problem. I hope to join you on this journey of inspiring collective healing one day!
An important point Gary emphasizes is that each individual is behaving in a rational manner. If you have assets of course you would accumulate more assets. He’s not vilifying rich people. He’s explaining how the system incentivizes their behavior and how in aggregate that behavior everyone including the rich. Of course the poor stuff the most. Clear eyed analysis. Keep up the good work. Loved your book. Getting copies for my friends and family.
Gary, marvelous! I have been watching you for quite a while and I am so impressed and pleased with your continuous development and the growth in the standard of your presentations! Such hard work and so well done! Please keep it up! You are changing lives and I am sure your message is hitting home with more and more people all the time. One day, when you are old (like me) you can look back and think: I did'nt just sit there, I made a difference to hundreds of peoples' lives. Thank you for that.
@@garyseconomics I can't echo the above enough mate, fantastic vids just keep getting better! I know you're probably mad busy and in demand but I don't suppose you've had time to see my email from the Climate Justice Coalition?
Another way that inheritance is taken away from the next generation is old pensioner care- if your parents go into care their house is sold and that asset is quickly liquidated by the care system.
Which is an insentive for the superrich to lobby to privatise the care system, buy the care system up and to secure that wealth transfer to themselves..
@@randomdebris right now there is not enough margin. Because there can’t be. The people paying for it don’t have enough to actually pay for it. Once they normalise multi generational debt legality ( legal slavery ) they will put the margins up.
Yes, a big reason why middle class families are falling out of the asset class and the divide between the super rich and everyone else is getting bigger. Full residential care can now be as much as around £70k/yr and all assets, savings and pension will be used to fund this until the OAP has £20k left to their name. When people have utterly lost their minds, we should be adult enough to have a care system that enables them to be put to sleep, and what they did in their life be celebrated. That is not cruelty, it is humane.
That’s whats happening in NL as well. My wife’s mother is starting to get very forgetful. I am already thinking that my wife can kiss her inheritance goodbye.
That was really well explained, thank you. Anyone who has experienced Scotland's circus of a property market will understand, there are a lot of people with big inheritances hiding in the shadows. The normal working 30 year old cannot possibly compete with wages alone.
The idea of almost a neo-feudalism is something I’ve seen bouncing round on the the internet around this topic. Seems to be a coming together of interpretations from multiple commentators. This modelling makes the most sense intuitively, from a young persons perspective such as myself who was born into upper working/lower middle class family. Always put it so succinctly Gary. I’d love to hear more about your interpretation of how history shapes this phenomenon.
Bang on, can see this coming and it's been in the works ever since we came off the gold standard. Makes inheritance tax look even more insidious. Forcing you to sell your families asset to be bought by the rich., When the rich hold enough assets to make it financially viable to put them into PLCs and avoid the tax. We really are watching ourselves get robbed in broad daylight, and it's our own government doing it. No wonder we have so many enemies around the world!
Every idea imaginable is bouncing around the Internet. That’s it’s fundamental fault. It validates everything rather than something. But that’s great for commentators who’ve never had the access to such polarised audience participation. Economics is in basic terms a social science which acts on society to give the illusion of its predictive capacity. It’s not a physical science with laws that are universal across time. Economics has different schools. His is just one school. Academia is about pushing your school into the forefront beyond its competitors. Just like any TH-cam content. These interpretative commentators are simply forming a school of thought for a growing audience. The business economics of any TH-cam commentator. Whether it’s a credible school is down to your critical analysis of its fundamental points compared to competing schools of thought.
I’m aware this is a perspective, and my comment was based upon my judgment of his analysis. My comment acknowledges this as a perspective and not that of truth. It’s a model, and certain models have better predictive capacity than others - as you’ve pointed out. My observation is that this is a commonality amongst multiple commentators, which suggests to me a theme, and therefore catches my attention. Thanks for sharing your perspective. It’s certainly a hygienic one.
You must Keep emphasising that doctors entrepreneurs etc are not the enemy, keep the focus on the super rich. All the resistance I come across during such conversations is people in professional jobs thinking they are the target. You win these minds and you will have a majority on your side.
I agree. Tax the rich should be tax the super rich ie those with millions not 1 or 2 million in assets which is very common in London due to house price inflation. The people in those houses can be earning an average wage. I know because I am one of them and there is no way we could afford a wealth tax.
I just stumbled across your video and was overjoyed to see someone speaking the truth about economics. Thanks so much Gary, and I hope someone in Australia will do the same for us Aussies.💖
There are people already agitating here just not from the same background. The Australia Institute is a start. The Fabian Society. The economist Steve Keen is another. Search them out. Inflitrate political organisations and agitate like HELL.
Economics is a social science not a physical science. To attribute truth to any social science flies in the face of the philosophy of science. Society is a construct, it’s constituent elements formed through policy based on economics, meaning it defines the truth at any moment but isn’t the truth. Let another economic school define the construct and we’d moan about its consequences too. Nothing is perfect, other than nature. But it’s the nature of mans ego to think otherwise.
I'm one of those middle class people who has moved down the class ladder. I have seen my earnings oscillate over my lifetime but no real net gain, probably even a loss if adjusted by inflation. Having paid rent all my life and had children I have never been able to save enough to put down a deposit on a property in the UK. For a while I had a well-paid job but because of debts and the impossibility of saving enough to buy a house I simply gave up trying and decided to enjoy my wage by buying and enjoying a few luxuries in the moment but not saving for the future. I will now be waiting for my dear old father to die before I can have a chance of buying a home of my own. It makes me sad and ashamed to admit it but it's the unfortunate truth. What makes things worse is the constant attack on my power in wage negotiations by a mixture of technology replacing or changing the skills required to do my job and competition from globalization. It's like being attacked from three sides at once. I feel like I have been on defensive mode all my working life. I have had to upskill and gain new expensive qualifications to remain competitive at ever turn. It seems to me the whole system is stacked against the worker and his ability to sell his labour from a position of strength.
Another great insight Gary. The worst con was that Austerity (taking money from the less-rich) and Trickle Down Economics (giving taxpayers money to the super-rich) is actually Suck-Up Economics (Rich buying Assets to make themselves richer so buying more assets making them richer....) real problem is that this is exponential which is why it almost always leads to huge social unrest and the serious long-term collapse of that country economically. That's the path we're currently on - not so Great Britain....😕
@Mark So where does "public money" come from? it's either from taxes or printed out of thin air (which causes inflation as we are seeing). The government does not generate money they only take from an economy and use it significantly less efficiently than private businesses.
I'm a writer. I'm inspired to write a screenplay. A drama...the more creatives can storytell to the masses, the narrative will stick. So glad i've found your channel. 😊
Agree 100% with everything Gary is saying. Unfortunately that's the world we are living in. I'm not betting on global revolution anytime soon so that means we have to play the game. Bust your ass to buy assets. I still believe this is possible, at least in the USA.
After listening go Hunt speak of shoving parents I to work who can't afford childcare, forcing the sick into work and claiming the tax burden is low. I am sickened by him and his party. This is now punishing the poor vulnerable and sick on steroids!!! Thank you Gary for all you do to enlighten people to the reality of what's happening ✌
Thank God I got my fixer! My house belonged to an old man that had not payed his taxes since 2008 & the borough sold it from under him. I purchased my home for 215k dollar. In the suburbs of New Jersey United States. Big huge garden / yard with a basement. 3 bedrooms 2 bathrooms. The only big expense is my tax bill which is 7k a year! But it is a fixer. We just put in new plumbing, new electrical updates & still needs work. But love my new home nice very quiet neighborhood.
"The Asset Economy" Wow.... this is a massive eye-opener. it reminds me of the middle ages you were either rich or in poverty there was no middle ground
Not only is Gary, smart and effective in his videos, but also very humble and down to earth off-screen as well, I can't say the same about a lot of people
Muchas gracias por decirnos la verdad económica. Thank you for telling as the economical truth. Voy a comprar tu libro. I am going to buy your book. Que Dios te bendiga! God bless you
Perfectly put as always. There's a very popular narrative being pushed by influencers etc on social media (because it gets views) that ordinary, non-wealthy people can achieve financial independence and become wealthy simply by saving and regularly investing in stocks and passive income. I think a video debunking this idea - that it's something that's actually achievable for most people - could be really effective in waking people up a bit. Funnily enough the people sharing their portfolio breakdowns on youtube never seem to explain where the large lump sums they start off with come from...
Buying low cost index funds and ETFs is the best way for the average man or woman to get wealthy over time and investing over time consistently isn’t unrealistic at all.
@@lewjg2933 I'm not saying it isn't good advice, just that for the majority of people it's never realistically going to get them to a place where they are able to live off interest or dividends and become truly wealthy - it won't set up their family or children. For most people not on a very high income, if they spend 30 years saving up and reinvesting maybe they can buy a bit of property or end up with a better pension at the end. And inflation + cost of living will undermine a significant amount of that. But that's assuming the last few decades of growth in equities continues - there are plenty of reasons why that might not be the case.
@@bobzilla211 i think the average person can be financially comfortable over time maybe not wealthy for example let’s you make $32k after tax and you invest 20% of your income per month which is around $530 assuming a very reasonable 9% return over the course of a 30 year career it would be worth $900k. I know 900k 30 years from now won’t have the same buying power but you will be comfortable.
Property isn't the only asset you can buy and it's not true that poorer people can't buy assets that increase in value. Something as simple as investing an affordable amount into index funds can have a good impact on your wealth over a number of years. I only learned this a few years ago, near the age of 50.
Brilliant Gary. My fear is that when a Government be it red or blue comes for the assets, it’ll be the assets of the middle class to the benefit of the very poor and the Super rich. Who always remain untouched because they but Governments. The system.
This is the first time ever I am posting a comment in TH-cam. But I really want to thank you for explaining this and trying to get this information out to the people who really need to understand this. It’s opened my eyes to what is happening around me and the incredible inequality which will increase if we don’t try and change something. THANK YOU! Please keep doing this.
I understand this, have been in favour of wealth taxes for years - but no politicians support this. Good luck Gary in making this an issue, and educating people.
It sure is paralyzing to think about house prices. To me one of the solutions is to think about the next best thing - about tools, things that help generate wealth. A good tool that is used well - is like a small asset. Also, we absolutely need to take our friendships and social connections seriously, keep in touch with friends and family, be a good neighbor. If everyone in a circle of friends has a small asset, but can safely share it with others, it can increase the quality of life, create opportunities for everyone.
I've been mainlining these videos since I found them, and it's so excited to see this analysis being made publicly and in plain language. I think there are a few more reasons that we moved towards an asset economy: one being deregulation of the financial sector. Until Thatcher/Raegan, for example, share buybacks were illegal. Now over 90% of corporate profits are used on buybacks and dividends: which means 90% of the productive gain in a really significant part of the economy (as so much of what we do is done by corporations, especially since privatisation) goes to investors and asset holders, rather than going to wages, or research and development, or not pumping shit into rivers. That's not an exageration, the data for the 2010s was like 91% across the S&P top 500. I assume it will be worse now. No wonder we all feel like we're getting exhausted for nowt, we're basically running on 10% capacity and the rest is getting siphoned off to make the rich richer. Where is the money going? Over half the shares of the 300 richest corporations in the world--which are richer than most states--are owned or controlled by just 30 companies. THIRTY. ACROSS THE WHOLE WORLD. The contemporary global economy is insane and yet no one is talking about it.
This is such a good explainer video, thank you! The fact that family homes can be acquired, and accumulated and in some countries like where I am (Australia) is even encouraged via tax incentives (negative gearing, capital gains) is absolutely bonkers. Trading a human need such as housing like any other investment will always screw over those that just need a place to live. I hope more people share and see this video, it really is a great explainer of the situation we all find ourselves in.
An excellent video you hit the nail on the head. I don't see the system changing any time soon unfortunately. For that reason the best strategy as an individual is to accumulate any assets you can (stocks, funds, crypto if not real estate). Even a small amount is better than nothing, because the rate of asset price growth constantly exceeds wage growth. I think if it gets bad enough I'd consider moving abroad to somewhere with lower cost of living and lower income taxes, that way there is some chance to even get on the asset ladder at all. But agree that it has dire implications for the UK long run if this continues.
Totally needed to hear this. We've been going back and forth on selling our house which has increased massively in value over the last few years. Decision made. My kids and grandkids will thank you.
Marry. Live on 3/4 of one wage. Save 25% of that wage. Also save 100% of the other wage. Live frugally. Do it for a decade. Buy two houses in whatever area allows you (and your tenants) to service those two mortgages for 5-10 years. house prices double. Sell one and completely pay the mortgage off on your own home. Now that the bottom of the bucket has been fully sealed up - saving is way, way easier. Save aggressively. Buy another home and rent it. Repeat. Thats what my wife and I did on very, very modest (blue collar) wages. Now the extra assets (houses) have doubled in value ... voila. Blue collar millionaires. Just takes time. Best of luck to any who care to listen.
If we were to leave the economic situation to get that bad before trying to fight it then it could get very ugly. I'm very hopeful that, because much of this is built on ignorance, once a sufficiently widespread understanding is achieved then change will naturally follow. I don't imagine the free world returning to feudalism is particular good for anyone in it. Thank you for standing up and sharing your insights.
Not sure how much of the world is, really, "free", any more. The neoliberalism foisted on us by Reagan/Thatcher -- privatising public services, while the state continues to subsidise the corporations/shareholders that own them, has resulted in lower standards. Ditto the selling-off of council homes (with a ban on councils using the income to build more homes) allowed the buy-to-let scam, whereby renters pay landlords' mortgages. Tories who profit from this scam voted against a bill which would have made landlords legally responsible for ensuring that their properties were hygienic, safe and secure. As I see it, asset-owning politicians have done their best to ensure that non-asset-owners ever will be asset owners.
This is the most interesting - and important - lesson in economy I ever have heard. As a father and a grandfather I'll think very hard about the message of this lesson
You are doing some good shit here man, this is what we need more of. What's really depressing is that you cannot be the only person who sees this so I leave people to draw their own conclusions as to why we rarely see these kinds of analysis on news/other media.
Money is the blood of a society. It needs to flow freely through the system. Allowing super rich to accumulate is like encouraging blood clots, and our collective body ends up with multiple strokes.
100% truth! My parents are landowners and already own a house. After I did my engineering degree i got into my first job expecting I can at least do the same as they did and live a good live. Reality kicked in and I had to realize the same house nowadays is around a million even if I already own the land. To be able to reasonably afford this I would need to become a top manager that can easily spend at least 5k€ on the credit...
Love the channel. Is it worth talking about how one of the biggest remaining government assets in the country, the NHS is a prime target for the wealthy to get hold of. The way this is playing out it seems inevitable that privatisation will happen in some form.
It's already started...asset stripping of the NHS has been surreptitiously going on for decades under the guise of 'streamlining' and 'efficiency'...as with public transport and the energy sectors, only the parts that return large dividends are properly maintained, hence the decline in services. Purely profit-driven businesses are a cancer to the host society...and eventually kill the host.
A lot of the profitable parts of the NHS are already going private, and if you want your non life threatening issues dealing with any time this decade a lot of patients are too.
it has already started. My Father's recent cancer PET CT scan was undertaken by a private company providing services to our NHS. My own recent nerve conduction test after a wrist injury was also undertaken by a private company providing services to our NHS. But it is not just services being outsourced. The PFI [private finance initiative] where a private company finances the up-front costs for building infrastructure [hospitals, schools, prisons etc..] instead of the government effectively gifts those infrastructure assets to private companies for generating shareholder profits. It also saddles our government with spending significantly more on these projects than they were worth. All to the benefit of the private firms [and their shareholders] running them and to the taxpayers’ [our] detriment.
Demoralising to realise how we are conditioned into thinking if we work hard we can "get on". I sometimes watch property programmes on TV like Escape to the Country and think "how the hell does a couple in their 20s have a £700k budget?"😮
inheritence is the biggest wealth earner.. cash from the bank of mum and dad. thats not to discount that as ok.. its just it makes the oportunities of your life specific to how much family wealth you have already.
Well said, this topic should be front centre of politics right now before it boils over. I was born in 1982, this bad trend for society is something I’ve witnessed ticking along getting worse for years.
Great video mate. I would like to add a point to the challenges facing young people that the older need to realise. This is that the costs of doing anything is higher for them than it was for the previous generation. Unlike their parents, they dont get free university education or low cosr access to resources like sport, transport or reasonable rent. These are things the previous generation had, but have been taken away mainky by the State. So not only are assets now out of reach, but they are unable to save to even have a chance of biuing anything without being crippled by massive debt. So assets are not the only imortant thing, but also access to reasonable costs of inputs whether that be living costs, education or transport and housing. That is an equal threat to the super rich making assets unaffordable.
Yes these are good points. One big way in which inequality has increased, which I have not mentioned in the video, has been the loss of state assets (ultimately, in the end, to the rich), and the huge increase in government debt (again, to the rich). This makes it more difficult for the state to provide good public services, of course, especially without any serious political will to tax the richest.
@@garyseconomics I see you're on Stay Free tomorrow... Good man. I shared a lot of your stuff with Russell, I believe minds like yours coming together can help educate and create the necessary change required to help the average Joe gain the skills and knowledge to help them succeed...
@@garyseconomics Scary question, butwhat is the end game when all the middle class and poor assets are owned by the rich. Only thing left for the middle class and poor is to revolt, strike and riot.
You’re excellent at explaining something I can feel every day, but struggle to unthread and life the veil on. I feel less stressed knowing that my gut feeling isn’t wrong, and more focused on finding a way for my family and my employees to find a way out of this without crapping on our customers. How we do that though - I currently have no idea.
Excellent insight and points!! Middle class is dying because the government is protecting the rich and taxing the middle class. The poor gets poorer and middle class is getting poor. So only the rich gets richer.
Currently the super rich, corporations and governments are putting the middle and working class against each other, "taxing the rich" means taxing high income workers... But they aren't the super rich who have millions in passive income.
Seriously, Gary is a breath of fresh air and really grasps the effect of decision made by the elected on the electorate. It's pretty obvious he has made a few bib out of doing exactly this, and it's rather humbling that he's using his knowledge to try to improve the UK, when I expect he could crack on earning millions in the city. Labour need to offer him a job as a special advisor, the senior the better. And if they don't do it, it's time for a new party that's willing to try something different to the status quo. Tax wealth and not just salaries. Redistributing wealth will have a bigger impact than redistributing salaries
I it funny, that your channel got recommended to me only after spending more or less two weeks on TH-cam searching for podcasts about Leonard's "Lords of easy money" and Piketty's "Capital". And I ended up with these two books only after I decided, that my sense of disappointment with the world can not be only a famous millennial anxiety, that there must be something more to it. So here I am, basically realizing that there may be a really big problem in how the economy is working right now (assuming you, Piketty, Leonard etc are right) and it is a non existent problem in the media. No one talks about it, no one discuss it - it literally requires for an average citizen, to already be on the topic for quite some time, to be directed to these information.
You’re doing God’s work here Gary. I’ve been trying to articulate what I mean when I say we’re not far from corporate feudalism and you even done it perfectly.
Another issue is that even if your parents don't sell their houses and take the money out to enjoy a retirement, if they have to go into care for any length of time their house will be taken to fund this. We loose either way!
I've also noticed the parallels between current state and desired outcomes for certain few and Feudal societies. I think it's crazy more reporters don't see it but I guess you have to be interested in that particular lens of history
Cheers for another great video, Gary. I'm trying to resist going down a rabbit hole, looking into techno-feudalism and U.B.I, but no doubt will fall in soon enough. Thanks for inspiring my descent. 🤪
![[MV] A leap of faith...ความเชื่อใจครั้งสุดท้าย (From "Petrichor the series")](http://i.ytimg.com/vi/U1piZH2CNXA/mqdefault.jpg)
This is sounding very much like a polite incitement to revolution. As a parent, I very much approve.
The sooner the better for us all. But this is a global problem. Even communist China.
I don't think it'd help as the capital will just leave the country. That said, a poorer fairer society might not be a bad thing.
@@chrisnuk It will do no such thing! They're always threatening that, which is why they remain untaxed. That said, international co-operation is needed and long overdue.
@@chrisnuk money would leave. Houses, stocks, factories wont
@@sichambers9011 As long as we understand that countries that control their own currency like the UK have much more power over the markets, things could change.
The notion that states need to go to markets in order to borrow their own currency is absurd and very convenient for those who love austerity
"How can wealth persuade poverty to use its political power to keep wealth in power? This is the whole art of Conservative politics in the 20th century." Aneurin Bevan.
It's called propaganda and has a 10,000-year history of working. Historically, we only hear from the "winners".
amazing quote
Own the media and start culture wars and keep the poor uneducated so they'll punch down😧
@John Wright yes! And ‘trickle down economics’, ‘taxation will cause capital flight’ and my favourite lie ‘social welfare handouts cause inflation’ - governments are a lesson in brainwashing.
Conservatism - A million ways to tell you tax is bad
Im 60 years. Divorced. Close to retirement . I own 2 houses. Was thinking of selling one to enjoy my retirement abroad. Now, I’m thinking about my 2 kids who are just finishing uni. I will not sell my properties. Will pass them on to my kids. I will ask my kids to give me £500 each a month to live in a cheaper Mediterranean country.
You probably want to speak to a professional, you may find that if you give the houses to your kids now and survive another decade then there won't be so much tax.
That's a very good idea. We were thinking of selling property too but would rather do what you have suggested.
@@adamlasry5225 God bless you! I will be the first generation millionaire and will live my family with assets! 💙
@@RichardEnglander "there won't be so much tax" is an obscure phrase.
There are many different types of tax that exist.
Look after your health & fitness too - you don't want to be forced to sell your houses to pay for care when you're old!
Dude, you are blowing my mind with how much this resonates with how the economy 'feels' rather than how we were told it works. I was feeling smug about my huge mortgage being inflated away, but this makes me think that my 'sell the house' retirement plan might not work out so well for our daughter. The truth hurts. All of the government interventions that have enriched the already rich: 'Never let a good crisis go to waste' - Winston Churchill
Glad to hear that the videos are helping! I think this is a huge problem with our political/economic system at the moment. Ordinary people are being kind of seduced by rising property values, without realising the damage that it will do to their children's and grandchildren generations. Then it's no surprise we are this huge bifurcation by age in voting patterns. I think a big part of what we need to do here, is explain really clearly to older generations what a terrible situation is being created for their kids and grandkids. If we can achieve that we'll have taken a big step towards positive change
@@garyseconomics ...
Do. Not. Friggin. Sell. Omg
If anything, keep the mortgage. If particularly generous, gift any remainder of mortgage + home to your children
Gary - you have misunderstood one thing.. the tax revenues collected and the wealth tax does not benefit the citizenry.. if it did then id be happy to pay more taxes to help everyone. The tax money goes towards funding wars and into the pockets of the politicians. Our politicians decide where the money gets spent. If we send $5B to Ukraine for defense for example, that’s actually $5B in purchase orders going to Raytheon and Northrop Grumman, companies which our beloved politicians have already loaded up on shares for so they can collect the dividends. It doesn’t work when our politicians are allowed to invest in companies and they also get to decide which companies to give the money to
I have been struggling for years to find an economics perspective that rings true. Yours is it Gary. Thank you so much.
Finally a take on economy from the standpoint of working and dispossessed people. Thank you for creating this content
I've been collecting and reading books about inequality since around 2014, but I am poor and have lived in public housing most of my life. No-one around me ever seems interested in engaging in these issues, and I guess because of my position in life not many people listen to what I have to say. Although I get a lot of personal satisfaction studying these issues, I feel like I have been investigating this stuff in a vacuum. It is so refreshing to hear this information coming from someone people might actually listen to. It's also been helpful to consolidate some of my own knowledge. You put things in a way that is easy to understand and relate to. When I saw you on that BBC panel I felt represented. Thank you.
You now need to move from information to action. 😅
@@last_samurai6690 you're right, but it's difficult to know where to start. I do my best to inform people but I'm far from the type of person people would turn to for information about the economy. The best I have managed in the last few years is to talk to people face-to-face and circulate a few books around. I have spoken to a few local and federal politicians about it. I've thought a lot about what I can really do and the conclusion I came to was just keep talking about it, keep educating myself and wait. I figure it's only a matter of time before people start looking around for solutions, but in my experience, people aren't interested until it affects their bottom line. So if things are going to get worse it's only a matter of time before people come looking for answers. I'm just doing my best to educate myself until that day comes.
@Nathaniel Roach My advice was...stop talking about it, doesn't change the course of history. Stop waiting for something to change for the better. I'd anything it might get worse. These ideologies and talks of a better world have been the focus of all politicians both local and international since the end of Ww2. But the reality is, on the grand scheme of things nothing changes, for the better, at least collectively. However individually there are things you can do to improve your lot I life, using maybe the knowledge you have accumulated. Maybe from there you can help other people around you and eventually more people later. Do not expect a world where things will be smoother, despite what these ideologues on YT, in the media, academia etc want you to believe. This is as good as it gets, especially in the West. Speaking from someone who grew up in small poor country at war, now in the West.
I suspect you are more powerful than you realise. You are able to introduce ideas to people who would otherwise have no access tho them. This is a huge achievement. Teaching by example is the greatest of achievements, find one small thing you can do and do it, grow food, swap something, share something, build your community, keep talking
Dude seriously, type David Fogerty in the TH-cam search he is a genz. He is a self made multimillionaire who was one of the new trend of people to start a business with $500. He made the Oodie. The secret to getting out of your situation is to create things people value, thus why doctors are paid so much as people value not being dead.
This resonates massive with me, especially the comments on mental health. My wife and I grew up within working class families but were told if you study hard at school and work, you can have a better life. You fast forward to us now in our late 20's, two people STEM PhD educated and both earning double the national average salary and we're lightyears from ever achieving assets. I slowly came to your realisation about the asset economy throughout the pandemic and I became a very moody, bitter and cynical person because I thought I was sold a lie. Slowing working through this as I know it's just the cards we were dealt unfortunately. I don't know if things will change in our life time, but hopefully when we have kids that get to our age, they might be in a better position. Thanks again Gary
*Cynical
It's crazy and very understandable that you got cynical.. I have also been noticing the latest trend of highly successful/educated people in age range of 50+ raging against young people even studying/achieving PhD/similar level... I believe that is because they know they don't need more educated poor people, they would much rather exploit the rentable services of non-asset holding (lower)working class people who all have 'traditional trades' that are of use to the asset-holding class to a) help build their house b) clean their house c) service their various assets d) work in the various shops, bars and restaurants that they like to visit ... not hard to see where such a system leads.
the ONLY meaningful thing you can do is become politically active.
Somehow it's the last thing anyone thinks of. It's like it's uncool.
But this is the ONLY WAY forward.
The rest of your post assumes change will come without your personal involvement, as if it will happen somehow independently of you.
No. You, I. All of us. We MUST agitate for Tax change and don't waste your time with the Conservatives. Obviously.
Change must come from within. We must agitate and keep the pressure up.
They WANT you to fall into a heap. It's part of the reason they make it almost impossible to survive. Nobody has got excess energy but we must find it.
Your post really helps me. My wife and I recently entered our 40's, degree educated (wife studying for a masters). We were always told by our parents "study hard, go to Uni, work hard, buy a house" but it hasn't worked out that way.
This video (and your post) makes it clear why.
@left_blank You've clearly not read my comment properly or have not properly understood Gary's video. I'm inclined to think it's likely both
Imagine how much better things would be if we had people like Gary in our politics
We have to speak up and act for ourselves
Politics exists to protect and enhance the prospects of the rich. Chiefly corporations but increasingly the personal wealth of the elites (the billionaires club). A lot of people believe that under the historical "ancien regime" aka feudalistic kleptocracy the way that (the large generational asset owning and passive income class aka the Sunaks et al) wealth and power was obtained and protected was somehow different from "democratic society". In truth the only difference is they replaced a monarchy, which was inherently unstable, with a house of *their* representatives. So, if we look at the British civil war, the asset owning class (who had always had their interests entwined with monarchy which was itself based on clan and family ties) simply rose up and replaced that now defunct monarchy, who no longer had clan or family ties with their asset owning class, with what they termed parliamentary democracy. To protect their interests and ring fence their interests generationally. The asset owning classes through the pantomime of elected representation now have complete control over the economy and by proxy "society". The rise of global corporatism has since merely added a new top tier in the form of corporations (and all the appendant systems and services e.g. banking and trading of equities). The corporations control the asset owning class with whom they are in many ways indistinguishable and by proxy politics and "government" and by extension of government they control you. Specifically they can and do now limit your prospects, your children's prospects and generationally your children's prospects. TL;DR Politics is not something you choose to go in to. It is something you either own a stake in or work for as an employee. It is not a vehicle for changing your or your children's prospects.
@@jamescoe764 we have to do that, and stick together when we are singled out, like Gary Lineker right now.
#GaryLineker
I want to see If a Zara Sultana government with Gary as Chancellor and Akala as Secretary for Culture, Media and Sport
They get blocked because everyone around them has been bought by the elites a thousand times over
It’s sad to see that even the rich developed countries are becoming more and more like Brazil, where I’m from, the most unequal country in the world. And It’s all due to politics, also because politicians are the ultimate “assets” of the super-rich. Your channel is great, keep it up! 👊🏼
It's the same here in Nigeria. The politician are the ultra-wealthy
@@agulumanit’s changing
What happens in Brazil today happens in the uk in 5 years … unfortunately Brazil is the unequal future
The Elite Rich own the government. Nothing will change in this system. Gary is a Hero of Humanity. Gary has my UTMOST RESPECT.
Key message: young people, it's not in your head. ITS NOT IN YOUR HEAD.
You should be kicking off politically (as should we all, on your behalf) before you have to kick off physically.
I am kicking off. But this has been the case since 2014. No cared then, that why young people are silent quitting. My house mate doesn't bother registering to vote, despite my best efforts. We shouldn't be fighting for this, those in their 40's, 50s and 69's who sir in power should be doing more. The short sightedness of the current political generation is outstanding and is killing the UK. The youth voted to remain, despite it being our future no one stopped to consider that. Get mad at the current in power generations and not us!!! You forgot us.
Brilliant. I’m not an economist but I’ve come to similar conclusions over the past 60 years, especially past 20, that we are returning to a form of feudalism, in many ways not just economic.
My daughter is graduating in Engineering this year, good salary, and we have nothing to offer by way of assets. She will be watching your videos as she starts her career once her exams are over.
Thank you!!!
Keep up your work. You deserve a Nobel Prize in Economics for what you are doing. Not sure if the brave new world will recognize you for it, but I do.
What a super intelligent person. He also has the gift of making a very dry subject extremely interesting. I’m so pleased I found this channel 😊
Glad you enjoyed it!
Gary is the best. Every time I hear him speak I feel validated and learn a little more about the current state of the economy/world order. Cheers from the USA!
I love that he hasn't abandoned his own people. He could have sold out totally and become like the toffs but he has a conscience. He can see the solution and is calling it out. We have to do our bit now and become politically active. It's our responsibility to try. Painful as it is to sit through meetings of political parties, it's utterly necessary. Just demonstrating won't do anything. Demos rarely get reported accurately and they aren't en masse anymore. No, we have to go grass roots and develop a movement that overwhelms the powers that be.
Already people aren't buying the Coronation.
That’s the purpose of TH-cam and user directed social media feeds. It’s to validate our inbuilt prejudices to confirm our own opinions. Confirmation bias. Too much knowledge is a bad thing. Google gives a multitude of information to which we apply our bias. Who knows what the right answer is when algorithms feed user search clicks into what’s deemed by user preference to be the right answer. If that’s how AI is learning we’re really doomed to intellectual oblivion.
It is incredible that most people don’t realize that “asset gains” are inflationary - it’s always more expensive for the next person to get in.
Yes an argument can be made for stocks not being inflationary, but rather productive gains, but not when debt is used to fuel stock repurchases
All of what you say is so true. We are near retirement age and sold our larger, family home last year, using the proceeds to help our 2 daughters get a leg up towards assets of their own. It was possible because we downsized. An asset like a home means security and possibly can even help generate more income besides the usual job. We still live modestly and will hopefully be able to help them some more if times get worse. I wish this could be the case for many more people in your age group. It's important to help each other any way we can.
gary your rhetoric is so on point dude, you give me hope, can't wait to see your message continue to grow to the point of restoring balance to taxation systems, thanks for your work dude
Gary is speaking truth to power- we all need to listen and take steps to help ourselves, our families, our communities OWN their assets and protect our wealth. I’ve shared Gary’s videos with several friends- and young members of my family as they start their careers… it’s life changing advice.
Gary, I’m going to continue to spread your message for the future of my son. I’m a HCA for the NHS and I’m going to do my very best to hold on to my mortgaged house for him!
Great idea.
W zoe
That will be next to impossible as they are talking about changing the inheritance tax rules again
You have hit the nail on the head, however are your kids prepared to care for you in old age? Yes Boomer parents have got to give up on Cruises and sheltered housing etc, but the kids and their spouses are going to have to do the caring etc if assets or their value is to be retained.
My neighbour teaches economics at a university and he was explaining this to me one evening after a few beers and to be honest I didn’t really know what to make of it and definitely didn’t fully understand. I’ve been searching for the discourse on this topic in the months since and now that I’ve found this channel it’s like a light bulb moment. The penny has 100% dropped now. Thank you mate for this amazing content - clear and accessible. I want to know what we can do to make a difference
Hi Gary, heard about you listening to the James O'Brien show this morning when one of his callers gave you a mention. You explain things very clearly and I'm suddenly seeing the light! What you say makes so much sense and doesn't bode well for the future. Many young people growing up today may never own a home (asset) unless they get help from the bank of mum and dad. Things look grim.
Millions of people need to see this and hear the message from Gary. Not only in the UK but all over the world. We need to stand up to the elite who are bleeding us dry and killing us as they do so. There Is strength in numbers. More people need to collectively believe that.
Im struggling mentally in my late 20s with a bachelors degree and working a min wage job with no hope for the future. I'm at the point over the past few months asking myself why I'm even alive if I have no vision for the future to enjoy but Gary is keeping the flame alive. Honestly thank you Gary for helping to pull me back from an increasing dark place. 🙏🏽
I want to help. Message me
Your not alone friend
Dude, it’s not all about money. If you believe money makes you happy you have bought the lie. The sun still shines. Many uber rich are emotionally stunted and starved individuals living miserable lives. It is literally incredible that you were born and you have 80 years to view the universe.
My family and I hugely support you Gary - thank you for being part of the solution and not part of the problem. I hope to join you on this journey of inspiring collective healing one day!
An important point Gary emphasizes is that each individual is behaving in a rational manner. If you have assets of course you would accumulate more assets. He’s not vilifying rich people. He’s explaining how the system incentivizes their behavior and how in aggregate that behavior everyone including the rich. Of course the poor stuff the most. Clear eyed analysis. Keep up the good work. Loved your book. Getting copies for my friends and family.
Gary, marvelous! I have been watching you for quite a while and I am so impressed and pleased with your continuous development and the growth in the standard of your presentations! Such hard work and so well done! Please keep it up! You are changing lives and I am sure your message is hitting home with more and more people all the time.
One day, when you are old (like me) you can look back and think: I did'nt just sit there, I made a difference to hundreds of peoples' lives. Thank you for that.
Thanks Hanne, appreciate that
@@garyseconomics I can't echo the above enough mate, fantastic vids just keep getting better! I know you're probably mad busy and in demand but I don't suppose you've had time to see my email from the Climate Justice Coalition?
Another way that inheritance is taken away from the next generation is old pensioner care- if your parents go into care their house is sold and that asset is quickly liquidated by the care system.
Yeah those reverse mortgage hucksters too.
Which is an insentive for the superrich to lobby to privatise the care system, buy the care system up and to secure that wealth transfer to themselves..
@@randomdebris right now there is not enough margin. Because there can’t be. The people paying for it don’t have enough to actually pay for it. Once they normalise multi generational debt legality ( legal slavery ) they will put the margins up.
Yes, a big reason why middle class families are falling out of the asset class and the divide between the super rich and everyone else is getting bigger. Full residential care can now be as much as around £70k/yr and all assets, savings and pension will be used to fund this until the OAP has £20k left to their name. When people have utterly lost their minds, we should be adult enough to have a care system that enables them to be put to sleep, and what they did in their life be celebrated. That is not cruelty, it is humane.
That’s whats happening in NL as well. My wife’s mother is starting to get very forgetful. I am already thinking that my wife can kiss her inheritance goodbye.
That was really well explained, thank you. Anyone who has experienced Scotland's circus of a property market will understand, there are a lot of people with big inheritances hiding in the shadows. The normal working 30 year old cannot possibly compete with wages alone.
The idea of almost a neo-feudalism is something I’ve seen bouncing round on the the internet around this topic. Seems to be a coming together of interpretations from multiple commentators. This modelling makes the most sense intuitively, from a young persons perspective such as myself who was born into upper working/lower middle class family. Always put it so succinctly Gary.
I’d love to hear more about your interpretation of how history shapes this phenomenon.
Bang on, can see this coming and it's been in the works ever since we came off the gold standard. Makes inheritance tax look even more insidious. Forcing you to sell your families asset to be bought by the rich., When the rich hold enough assets to make it financially viable to put them into PLCs and avoid the tax. We really are watching ourselves get robbed in broad daylight, and it's our own government doing it. No wonder we have so many enemies around the world!
You've bounced on yanis varoufakis 😉
Every idea imaginable is bouncing around the Internet. That’s it’s fundamental fault. It validates everything rather than something. But that’s great for commentators who’ve never had the access to such polarised audience participation. Economics is in basic terms a social science which acts on society to give the illusion of its predictive capacity. It’s not a physical science with laws that are universal across time. Economics has different schools. His is just one school. Academia is about pushing your school into the forefront beyond its competitors. Just like any TH-cam content. These interpretative commentators are simply forming a school of thought for a growing audience. The business economics of any TH-cam commentator. Whether it’s a credible school is down to your critical analysis of its fundamental points compared to competing schools of thought.
I’m aware this is a perspective, and my comment was based upon my judgment of his analysis. My comment acknowledges this as a perspective and not that of truth. It’s a model, and certain models have better predictive capacity than others - as you’ve pointed out. My observation is that this is a commonality amongst multiple commentators, which suggests to me a theme, and therefore catches my attention.
Thanks for sharing your perspective. It’s certainly a hygienic one.
There is nothing that speaks more truthfully than your statement: "only thing that matters is how many assets your family has."
The simplicity of what he's saying is as devastating as it is inspiring as far as the arrow of our highest longing kinda vibe goes.
You must Keep emphasising that doctors entrepreneurs etc are not the enemy, keep the focus on the super rich. All the resistance I come across during such conversations is people in professional jobs thinking they are the target. You win these minds and you will have a majority on your side.
I agree. Tax the rich should be tax the super rich ie those with millions not 1 or 2 million in assets which is very common in London due to house price inflation. The people in those houses can be earning an average wage. I know because I am one of them and there is no way we could afford a wealth tax.
Brilliant explainer. Love it. Wealth tax is not after YOUR money. Unless you are Rishi and the Murdochs of course.
I just stumbled across your video and was overjoyed to see someone speaking the truth about economics.
Thanks so much Gary, and I hope someone in Australia will do the same for us Aussies.💖
There are people already agitating here just not from the same background. The Australia Institute is a start. The Fabian Society. The economist Steve Keen is another. Search them out. Inflitrate political organisations and agitate like HELL.
Economics is a social science not a physical science. To attribute truth to any social science flies in the face of the philosophy of science. Society is a construct, it’s constituent elements formed through policy based on economics, meaning it defines the truth at any moment but isn’t the truth. Let another economic school define the construct and we’d moan about its consequences too. Nothing is perfect, other than nature. But it’s the nature of mans ego to think otherwise.
@@deborahcurtis1385 Thanks for letting me know.
I'm one of those middle class people who has moved down the class ladder. I have seen my earnings oscillate over my lifetime but no real net gain, probably even a loss if adjusted by inflation. Having paid rent all my life and had children I have never been able to save enough to put down a deposit on a property in the UK. For a while I had a well-paid job but because of debts and the impossibility of saving enough to buy a house I simply gave up trying and decided to enjoy my wage by buying and enjoying a few luxuries in the moment but not saving for the future. I will now be waiting for my dear old father to die before I can have a chance of buying a home of my own. It makes me sad and ashamed to admit it but it's the unfortunate truth. What makes things worse is the constant attack on my power in wage negotiations by a mixture of technology replacing or changing the skills required to do my job and competition from globalization. It's like being attacked from three sides at once. I feel like I have been on defensive mode all my working life. I have had to upskill and gain new expensive qualifications to remain competitive at ever turn. It seems to me the whole system is stacked against the worker and his ability to sell his labour from a position of strength.
Your videos just get better and better Gary. Keep them coming - the message needs spreading far and wide!
I really enjoy your explanation of the Asset Economy. Looks as though you're basically explaining the concept of Classism.
Another great insight Gary. The worst con was that Austerity (taking money from the less-rich) and Trickle Down Economics (giving taxpayers money to the super-rich) is actually Suck-Up Economics (Rich buying Assets to make themselves richer so buying more assets making them richer....) real problem is that this is exponential which is why it almost always leads to huge social unrest and the serious long-term collapse of that country economically. That's the path we're currently on - not so Great Britain....😕
@Mark So where does "public money" come from? it's either from taxes or printed out of thin air (which causes inflation as we are seeing). The government does not generate money they only take from an economy and use it significantly less efficiently than private businesses.
I'm a writer. I'm inspired to write a screenplay. A drama...the more creatives can storytell to the masses, the narrative will stick.
So glad i've found your channel. 😊
Agree 100% with everything Gary is saying. Unfortunately that's the world we are living in. I'm not betting on global revolution anytime soon so that means we have to play the game. Bust your ass to buy assets. I still believe this is possible, at least in the USA.
After listening go Hunt speak of shoving parents I to work who can't afford childcare, forcing the sick into work and claiming the tax burden is low. I am sickened by him and his party. This is now punishing the poor vulnerable and sick on steroids!!! Thank you Gary for all you do to enlighten people to the reality of what's happening ✌
Thank God I got my fixer! My house belonged to an old man that had not payed his taxes since 2008 & the borough sold it from under him. I purchased my home for 215k dollar. In the suburbs of New Jersey United States. Big huge garden / yard with a basement. 3 bedrooms 2 bathrooms. The only big expense is my tax bill which is 7k a year! But it is a fixer. We just put in new plumbing, new electrical updates & still needs work. But love my new home nice very quiet neighborhood.
"The Asset Economy" Wow.... this is a massive eye-opener. it reminds me of the middle ages you were either rich or in poverty there was no middle ground
That's quickly where we're heading
yes thats what gary meant with a feudal system
Love your work,my man.
Please keep it up
Your words are totally needed for these times.
Big love and respect.
Bravo, mate, soo much respect for you. I’m on a Gary’s economics binge atm
I now understand it completely 100% - Thanks to you - Keep the knowledge flowing to us all.
Not only is Gary, smart and effective in his videos, but also very humble and down to earth off-screen as well, I can't say the same about a lot of people
Muchas gracias por decirnos la verdad económica.
Thank you for telling as the economical truth.
Voy a comprar tu libro.
I am going to buy your book.
Que Dios te bendiga!
God bless you
Perfectly put as always. There's a very popular narrative being pushed by influencers etc on social media (because it gets views) that ordinary, non-wealthy people can achieve financial independence and become wealthy simply by saving and regularly investing in stocks and passive income. I think a video debunking this idea - that it's something that's actually achievable for most people - could be really effective in waking people up a bit.
Funnily enough the people sharing their portfolio breakdowns on youtube never seem to explain where the large lump sums they start off with come from...
Buying low cost index funds and ETFs is the best way for the average man or woman to get wealthy over time and investing over time consistently isn’t unrealistic at all.
@@lewjg2933 I'm not saying it isn't good advice, just that for the majority of people it's never realistically going to get them to a place where they are able to live off interest or dividends and become truly wealthy - it won't set up their family or children.
For most people not on a very high income, if they spend 30 years saving up and reinvesting maybe they can buy a bit of property or end up with a better pension at the end. And inflation + cost of living will undermine a significant amount of that.
But that's assuming the last few decades of growth in equities continues - there are plenty of reasons why that might not be the case.
@@bobzilla211 i think the average person can be financially comfortable over time maybe not wealthy for example let’s you make $32k after tax and you invest 20% of your income per month which is around $530 assuming a very reasonable 9% return over the course of a 30 year career it would be worth $900k. I know 900k 30 years from now won’t have the same buying power but you will be comfortable.
@@lewjg2933 And after rent, childcare, health insurance ???
@@KatieScarlett2353 yes it’s called budgeting and taking accountability for your financial future.
Property isn't the only asset you can buy and it's not true that poorer people can't buy assets that increase in value. Something as simple as investing an affordable amount into index funds can have a good impact on your wealth over a number of years. I only learned this a few years ago, near the age of 50.
Brilliant Gary. My fear is that when a Government be it red or blue comes for the assets, it’ll be the assets of the middle class to the benefit of the very poor and the Super rich. Who always remain untouched because they but Governments. The system.
This is the first time ever I am posting a comment in TH-cam. But I really want to thank you for explaining this and trying to get this information out to the people who really need to understand this. It’s opened my eyes to what is happening around me and the incredible inequality which will increase if we don’t try and change something. THANK YOU! Please keep doing this.
This is one of the best videos in the channel so far imo. Really well articulated.
I understand this, have been in favour of wealth taxes for years - but no politicians support this. Good luck Gary in making this an issue, and educating people.
It sure is paralyzing to think about house prices. To me one of the solutions is to think about the next best thing - about tools, things that help generate wealth. A good tool that is used well - is like a small asset.
Also, we absolutely need to take our friendships and social connections seriously, keep in touch with friends and family, be a good neighbor. If everyone in a circle of friends has a small asset, but can safely share it with others, it can increase the quality of life, create opportunities for everyone.
I've been mainlining these videos since I found them, and it's so excited to see this analysis being made publicly and in plain language. I think there are a few more reasons that we moved towards an asset economy: one being deregulation of the financial sector. Until Thatcher/Raegan, for example, share buybacks were illegal. Now over 90% of corporate profits are used on buybacks and dividends: which means 90% of the productive gain in a really significant part of the economy (as so much of what we do is done by corporations, especially since privatisation) goes to investors and asset holders, rather than going to wages, or research and development, or not pumping shit into rivers. That's not an exageration, the data for the 2010s was like 91% across the S&P top 500. I assume it will be worse now. No wonder we all feel like we're getting exhausted for nowt, we're basically running on 10% capacity and the rest is getting siphoned off to make the rich richer. Where is the money going? Over half the shares of the 300 richest corporations in the world--which are richer than most states--are owned or controlled by just 30 companies. THIRTY. ACROSS THE WHOLE WORLD. The contemporary global economy is insane and yet no one is talking about it.
Wonderful explanation Gary. I hope you get to a billion subscribers because we really need more people to understand this.
This is such a good explainer video, thank you! The fact that family homes can be acquired, and accumulated and in some countries like where I am (Australia) is even encouraged via tax incentives (negative gearing, capital gains) is absolutely bonkers. Trading a human need such as housing like any other investment will always screw over those that just need a place to live. I hope more people share and see this video, it really is a great explainer of the situation we all find ourselves in.
An excellent video you hit the nail on the head. I don't see the system changing any time soon unfortunately. For that reason the best strategy as an individual is to accumulate any assets you can (stocks, funds, crypto if not real estate). Even a small amount is better than nothing, because the rate of asset price growth constantly exceeds wage growth. I think if it gets bad enough I'd consider moving abroad to somewhere with lower cost of living and lower income taxes, that way there is some chance to even get on the asset ladder at all. But agree that it has dire implications for the UK long run if this continues.
Very well explained. Thank you Gary for educating me & keeping me informed.❤
Totally needed to hear this. We've been going back and forth on selling our house which has increased massively in value over the last few years. Decision made. My kids and grandkids will thank you.
Excellent work Gary good analysis we are regressing to feudalism , I.E a system where labour cannot change your station
Marry. Live on 3/4 of one wage. Save 25% of that wage. Also save 100% of the other wage. Live frugally. Do it for a decade. Buy two houses in whatever area allows you (and your tenants) to service those two mortgages for 5-10 years. house prices double. Sell one and completely pay the mortgage off on your own home. Now that the bottom of the bucket has been fully sealed up - saving is way, way easier. Save aggressively. Buy another home and rent it. Repeat. Thats what my wife and I did on very, very modest (blue collar) wages. Now the extra assets (houses) have doubled in value ... voila. Blue collar millionaires. Just takes time. Best of luck to any who care to listen.
If we were to leave the economic situation to get that bad before trying to fight it then it could get very ugly. I'm very hopeful that, because much of this is built on ignorance, once a sufficiently widespread understanding is achieved then change will naturally follow. I don't imagine the free world returning to feudalism is particular good for anyone in it. Thank you for standing up and sharing your insights.
Not sure how much of the world is, really, "free", any more. The neoliberalism foisted on us by Reagan/Thatcher -- privatising public services, while the state continues to subsidise the corporations/shareholders that own them, has resulted in lower standards.
Ditto the selling-off of council homes (with a ban on councils using the income to build more homes) allowed the buy-to-let scam, whereby renters pay landlords' mortgages. Tories who profit from this scam voted against a bill which would have made landlords legally responsible for ensuring that their properties were hygienic, safe and secure.
As I see it, asset-owning politicians have done their best to ensure that non-asset-owners ever will be asset owners.
This is the most interesting - and important - lesson in economy I ever have heard. As a father and a grandfather I'll think very hard about the message of this lesson
Great talk as usual.
Should be used as lectures in the education system.
You are doing some good shit here man, this is what we need more of. What's really depressing is that you cannot be the only person who sees this so I leave people to draw their own conclusions as to why we rarely see these kinds of analysis on news/other media.
this is one of the core arguments in Thomas Piketty's revolutionary 'Capital'
This was eyes opening!
This is one of the reasons why I decided to go into politics. Standing in the next election as a Lib Dem. 👍
You are a complete breath of fresh air, I love the fact that this message will educate many both now and the future
Good video. Let's do this. Viva la revolution!
Money is the blood of a society. It needs to flow freely through the system. Allowing super rich to accumulate is like encouraging blood clots, and our collective body ends up with multiple strokes.
Man’s speaking truth. Came to this realization a while back.
100% truth! My parents are landowners and already own a house. After I did my engineering degree i got into my first job expecting I can at least do the same as they did and live a good live. Reality kicked in and I had to realize the same house nowadays is around a million even if I already own the land. To be able to reasonably afford this I would need to become a top manager that can easily spend at least 5k€ on the credit...
Love the channel. Is it worth talking about how one of the biggest remaining government assets in the country, the NHS is a prime target for the wealthy to get hold of. The way this is playing out it seems inevitable that privatisation will happen in some form.
It's already started...asset stripping of the NHS has been surreptitiously going on for decades under the guise of 'streamlining' and 'efficiency'...as with public transport and the energy sectors, only the parts that return large dividends are properly maintained, hence the decline in services. Purely profit-driven businesses are a cancer to the host society...and eventually kill the host.
A lot of the profitable parts of the NHS are already going private, and if you want your non life threatening issues dealing with any time this decade a lot of patients are too.
it has already started. My Father's recent cancer PET CT scan was undertaken by a private company providing services to our NHS. My own recent nerve conduction test after a wrist injury was also undertaken by a private company providing services to our NHS.
But it is not just services being outsourced. The PFI [private finance initiative] where a private company finances the up-front costs for building infrastructure [hospitals, schools, prisons etc..] instead of the government effectively gifts those infrastructure assets to private companies for generating shareholder profits. It also saddles our government with spending significantly more on these projects than they were worth. All to the benefit of the private firms [and their shareholders] running them and to the taxpayers’ [our] detriment.
Everyone, everywhere must watch this video. Gary, please continue informing the public.
Thank you for sharing Gary :) This is why the "Super Rich" keeps blocking reparations for all.
Feel like I’m hearing someone finally articulate things I’ve sort of noticed and understood in a vague way. Fantastic stuff, subscribed!
Demoralising to realise how we are conditioned into thinking if we work hard we can "get on". I sometimes watch property programmes on TV like Escape to the Country and think "how the hell does a couple in their 20s have a £700k budget?"😮
The wife sells homemade pottery and the husband gives guitar lessons. Budget: 1.2 million.
@@utubedude2842 😂😂😂
inheritence is the biggest wealth earner.. cash from the bank of mum and dad. thats not to discount that as ok.. its just it makes the oportunities of your life specific to how much family wealth you have already.
Well said, this topic should be front centre of politics right now before it boils over. I was born in 1982, this bad trend for society is something I’ve witnessed ticking along getting worse for years.
It’s heart breaking. I. Wondering if we will actually do anything or just sit and take it?
Sometimes problems go deeper than change…
It’s the blind leading the blind here
You are blinded by alternative news.
@@ollydix I think you may have misspelled _"IknowyouarebutwhatamI"_
but I really can't be sure
I am afraid so many of us will sit and take it. I am not sure why so many people in the west refuse to act
@@SweetDulces We need to Be More France!
I worked this out some time ago. I just couldn't put it into words. Your very good at explaining these things
Great video mate. I would like to add a point to the challenges facing young people that the older need to realise. This is that the costs of doing anything is higher for them than it was for the previous generation. Unlike their parents, they dont get free university education or low cosr access to resources like sport, transport or reasonable rent. These are things the previous generation had, but have been taken away mainky by the State. So not only are assets now out of reach, but they are unable to save to even have a chance of biuing anything without being crippled by massive debt. So assets are not the only imortant thing, but also access to reasonable costs of inputs whether that be living costs, education or transport and housing. That is an equal threat to the super rich making assets unaffordable.
Yes these are good points. One big way in which inequality has increased, which I have not mentioned in the video, has been the loss of state assets (ultimately, in the end, to the rich), and the huge increase in government debt (again, to the rich). This makes it more difficult for the state to provide good public services, of course, especially without any serious political will to tax the richest.
@@garyseconomics I see you're on Stay Free tomorrow... Good man. I shared a lot of your stuff with Russell, I believe minds like yours coming together can help educate and create the necessary change required to help the average Joe gain the skills and knowledge to help them succeed...
@@garyseconomics Scary question, butwhat is the end game when all the middle class and poor assets are owned by the rich. Only thing left for the middle class and poor is to revolt, strike and riot.
Such a huge skill you have to inform the masses. Full support. Youmake a difference
You’re excellent at explaining something I can feel every day, but struggle to unthread and life the veil on. I feel less stressed knowing that my gut feeling isn’t wrong, and more focused on finding a way for my family and my employees to find a way out of this without crapping on our customers. How we do that though - I currently have no idea.
Excellent insight and points!! Middle class is dying because the government is protecting the rich and taxing the middle class. The poor gets poorer and middle class is getting poor. So only the rich gets richer.
Keep up the amazing work, Gary.
this video is pure gold, nice and easy explanation, this feels like gold mine tbh.
Currently the super rich, corporations and governments are putting the middle and working class against each other, "taxing the rich" means taxing high income workers... But they aren't the super rich who have millions in passive income.
Seriously, Gary is a breath of fresh air and really grasps the effect of decision made by the elected on the electorate.
It's pretty obvious he has made a few bib out of doing exactly this, and it's rather humbling that he's using his knowledge to try to improve the UK, when I expect he could crack on earning millions in the city.
Labour need to offer him a job as a special advisor, the senior the better. And if they don't do it, it's time for a new party that's willing to try something different to the status quo. Tax wealth and not just salaries. Redistributing wealth will have a bigger impact than redistributing salaries
I it funny, that your channel got recommended to me only after spending more or less two weeks on TH-cam searching for podcasts about Leonard's "Lords of easy money" and Piketty's "Capital". And I ended up with these two books only after I decided, that my sense of disappointment with the world can not be only a famous millennial anxiety, that there must be something more to it. So here I am, basically realizing that there may be a really big problem in how the economy is working right now (assuming you, Piketty, Leonard etc are right) and it is a non existent problem in the media. No one talks about it, no one discuss it - it literally requires for an average citizen, to already be on the topic for quite some time, to be directed to these information.
This is probably your best video yet!
Here's a comment for the algorithm. Thanks for what you're doing
You’re doing God’s work here Gary. I’ve been trying to articulate what I mean when I say we’re not far from corporate feudalism and you even done it perfectly.
Gary you are a breath of fresh air - thank you.
Incredibly intelligent guy. And he's so correct in this analysis - you can witness it for yourself.
Another issue is that even if your parents don't sell their houses and take the money out to enjoy a retirement, if they have to go into care for any length of time their house will be taken to fund this. We loose either way!
when the only winning move . . .
it's getting darker and darker to think about anything at all
That’s why they need to sign their house across to the next generation before they need to go into care
I've also noticed the parallels between current state and desired outcomes for certain few and Feudal societies. I think it's crazy more reporters don't see it but I guess you have to be interested in that particular lens of history
Cheers for another great video, Gary. I'm trying to resist going down a rabbit hole, looking into techno-feudalism and U.B.I, but no doubt will fall in soon enough. Thanks for inspiring my descent. 🤪