@@fawfulBeans Pay politicians societal median wage fix expenses to reflect minimum wage for one assistant, provide board and lodgings in Houses Of Parliament. Wealth inequality would decrease inexorably.
Complicit doesn't begin to scratch the surface. It's borderline corruption. Rarely are the 90 % citizens of the UK informed about how stacked the system is against them. It always "your jealous" or "politics of envy". Dam right I'm envious of the various ways to minimise tax on millions! I pay 40% on anything over 50k. Good wage but the super rich max of 28% for capital gains is criminal by comparison.
Property - much of the under taxed wealth of Sunak et al, buys up property which is then rented to those who will never be able to save a mortgage deposit. This is a financial time bomb - larger and larger proportions of our population trying to survive retirement while renting. This problem will not be solved by 'just building more homes', because many of the affordable properties have low taxed wealth waiting to buy them up.
I've often thought that without some sort of resistance to multiple home ownership surely we are just creating a greater housing portfolio for the rich?
Companies no longer have final salary pensions and interest rates on savings have been low for years. The age that private pensions could be cashed came down to 55. Therefore a lot of people just like me have cashed their private pensions at 55 and invested in ŕental properties. How else are older people supposed to be able to retire and make space for younger people to be promoted into their vacant positions?
@@philyewin4880just think of the generations behind you, they won’t be able to retire at all! And it’s not particularly the people who own a second home who are the problem (although it contributes) but those who buy up multiple properties taking away resources and driving up prices.
@@philyewin4880 Sadly, unintended consequences - these changes helped you preserve your ‘final salary pension’ expectations but with no regulation or limit, current and future generations will never be able to own a property, or have affordable rent. As I said, this is a societal time bomb - that has to be de-fused now, because the ‘property portfolio’ owning Tories will never do it if/when they get back into power. To your question, ‘how else are older people supposed to be able to retire…?’ It sounds like you had a significant private pension sum, as you were able to buy more than one property to rent out. You could have put that money into a stock market portfolio that would grow at around 5% PA. Then draw that down to supplement your state pension. Then take a little of your capital and put solar panels on the roof (you own) with storage battery - giving you very low utility costs insulated from future shocks. These are things our property owning generation(s) is able to do - that are not available to the generations that are following - we have to change this.
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You, Laim Byrne Sir are the type of politician I would vote for and I don't say that lightly. I'm 56 and voted once and refused to vote again until something changes. You might be the change that's needed. I truly hope you gain traction with your thoughts and desires. God Speed.
I would love a series with Liam Byrne, Gary Stephenson, Richard Murphy and Torsten Bell. Two are Labour MPs but they can't be happy with the orthodoxy of this government.
@@stumac869 You think there is no rich minority in North Korea? Dream on. Just because the overwhelming majority subsist doesn't mean they all do. We will end up like that if nothing changes as the rich have seen their wealth grow hugely while the ordinary people have seen their wealth decrease steadily.
@@Hiram8866One in seven people in the UK are now considered as being in poverty. In December 2023 UNICEF - The United Nations Children's Fund, ranked the UK as rhe worst amongst the the world's richest countries in child poverty levels. So, Britain is poor, you just have to walk down any high street or towns. It's your rich, privileged few politicians who and their friends in large corporations that aren't poor.
@Hiram8866 One in seven people in the UK are now considered as being in poverty. In December 2023 UNICEF - The United Nations Children's Fund, ranked the UK as rhe worst amongst the the world's richest countries in child poverty levels. So, Britain is poor, you just have to walk down any high street or towns. It's your rich, privileged few politicians and their friends in large corporations that aren't poor.
@@Jenks1 He has not been hiding this is a new version of himself i have not seen yet, the older version of himself when he was shadow minster for the department of work and pensions under Ed Miliband. Then he wanted to help the Tories roll out Universal credit faster so more people could be sanctioned and starved into work, he was also the person who left a note to the incoming Tory government there is no money left. I do not recognise this version of himself he was previously a Tory Blairite on the right of the Labour party, perhaps he has changed i do not know. I do think if he was offered a post in Kier Starmers government as a minister he would change again and go back to being a Blairite.
@PeterLewis21 oh okay thank you. That explains why I have never noticed him before. The fact that he thinks "money can run out" tells me he doesn't understand what money is. Lol.
It has been said in many places and on many occasions that Liam Byrne's note that he left was a joke that the incoming tories and subsequent right wing media have turned into something seriously meant. The jury is out as far as I'm concerned. I don't know if he has had a lightbulb moment or if he's just jumped on the "inequality" bandwagon to suit his own agenda. I suppose wisdom does (sometimes) come with age.🤷
I think you nailed it Liam. You explained it so clearly. What is upsetting that a labour government so far as done nothing to redress the balance which is why everyone is disillusioned with this government. The other issue is the average saver in this country seems to earn a pittance in interest and so I think the banks have a lot to answer for in maintaining this inequality whilst lining their own pockets.
Happy new year You work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires
Major then Blair outsourced UK tech jobs via ICT visas. That killed off the UK based tech training depts and UK Gov. tech training courses. People who cross-trained into IT in the 1980s were made redundant by PLCs crying that they had tech skills shortages. Since Y2K, UK workers have been consistently undercut. If Labour had their way, we would all work in Supermarkets and rent out our spare room to a foreign worker here on an ICT visa!! Under Thatcher, the UK Gov. ran IT cross-training courses advertising to Teachers, Plumbers and Electricians - much better for UK workers.
Wealthiest buy assets that the non wealthy need. Like housing. If you're not them , you're getting out competed for limited resources. And then forced to rent from the wealthiest.
The wealthy aren't generally invested in property, and when they are it's golf courses, hotels, resorts, stadiums etc....not little 2 bed semi's in your fantasy oppression strawman.
As you are a Labour MP in a Labour government why aren't you implementing your solutions to inequality? At the moment we have a Labour government taking away Winter fuel payments from pensioners, and is now looking at Welfare cuts, this is taking money from the poorest in society the last thing a Labour government should be doing. The simple question is why isn't this Labour government taxing investment in line with normal tax rates? Why is this so called Labour government taking away winter fuel payments and talking about cuts for the disabled when you could just raise tax on investment? In your own video you have explained why this Labour government is so unpopular. Blair was the most unpopular Labour Prime Minister Keir Starmer is now going to be the most unpopular Prime Mjnister ever.
Labour are a neoliberal party now, their ideology is fundamentally drawn from the same well as Thatcher, and the Tories. This guy seems to be an outlier. Politics is all about alliances, deals, and power, one guy can only do so much. Party labels are now worthless, if you have a selection of candidates for your local MP, ignore the colour of their rosette, and find out what their policies are.
We are the new Labour government, how can we demonstrate we are going to be tough on economic spending? I know lets take away the Winter fuel payment from pensioners that will show i am a tough chancellor says Rachel Reeves. Rachel Reeves and Keir Starmer now need more money, lets show we are tough again, lets take away money from the disabled.
If you don't physically go out and earn your money and it come to you while your sleeping, then it makes sense to pay an increased rate of tax. I also think if you work extra hours like overtime, you should pay less tax on that. But that never going to happen. What about a VAT break at Christmas. That will get the economy moving . Again, it's never going to happen. The deck is not stacked in our favour.
I appreciate this video Liam. Please do a video on how our Government, your party, will implement the changes needed to end inequality and poverty in our country. 🙏🏻
A very good description of the problems Liam, but may I elaborate The overall problem though is neoliberalism and the economic model which has been dominant since the 80's That a working person is surplus to requirements and all that matters is shareholder value, loyalty and development goes out of the window To gain that value there has been no investment whatsoever in training for the lower end of the job market, just cheap labour to achieve quarterly targets Combine that now with a massive graduate glut of young people who are very well educated but cannot even get a foot in the job market and you can understand why so many youngsters are p**ed off and I don't blame them Housing is (and Will be) the main factor for anybody wanting to build a life and that has been utterly destroyed in the past 30 years for the average person Liam purely due to the absolutely ridiculous costs whether renting or saving for a mortgage It's insane and unsustainable in the long term, but of course successive governments have only embraced short termism
Almost none of that is 'neo Liberalism'. If we had zero regulations on building and Hyde park, St James park etc... had housing thrown up on it....I'd take your point. That would be a deregulate Neo-lib fail. The F*CKING OPPSITE has happened. I can only conclude you've been coached to cite 'Neo-liberalism' as a boogie man.
QT was a MUST happen after QE in 2008 onwards. Or do you think the Germans in the 1920's were having a great time loading wheelbarrows with trillion mark notes to buy a loaf of bread ? Achieving equality via poverty isn't a very bright idea.
Raise the tax threshold so that people on lower incomes are not paying tax. It's absolutely ridiculous to start paying income tax on £12500. Excessive taxation is what keeps people down.
@paulgibbons2320 no right fix. It's pointless earning more just for the taxman to take it. What if the profits of the company you work for decrease ? Would you want your wage to decrease also ?
This is a very effective job at boiling down the complex economic situation we face into under 10 minutes. Maybe this chap would do a better job than Reeves.
Great video, but you missed a very important point. The 2008 banking crisis, also known as the global financial crisis (GFC) started the widening gap in wealth inequality globally. It was a severe economic crisis that began in 2007 and lasted into 2009, caused by several factors, including risky lending, a housing bubble, and a lack of regulation. The UK government intervened financially to support the UK banking sector, and four UK banks in particular. At its peak, the cash cost of these interventions was £137 billion, paid to the banks in the form of loans and new capital. Despite this, a worldwide 'great depression' started which led to a massive transfer of wealth from the poor to the very wealthy. The banking elite started investing in property at rock-bottom prices during the depression, which drove up housing prices post-recovery due to reduced availability. Increased house prices are a fantastic return if you are wealthy, however, for the other 90% trying to buy their first home or find a long-term rental property within their budget, it is very bad news indeed.
@@GalacticRadioNoise The present Labour government is looking to repeat the 2008 banking crisis, all its plans point that way, deregulting the banks again, building houses for another housing boom. The bank crisis started before 2007 the Labour government at the time kept a housing boom and credit boom going, which they want to do again now.
He mentioned it as ‘the great financial crash’ with regard to the income of average workers not having grown in real terms since then. When he talked about Quantitative Easing too, that happened because of the financial crash. It’s a short video covering four main themes of wealth inequality, so not particularly in depth.
Except most of the house price gains haven’t been on Mansions in the country. They have been in poor people housing in trendy gentrifying areas bought by affluent professionals. So if by wealthy, you mean Doctors, Lawyers and Boomers who bought inside the M25 in the 70s... ok. But if you mean millionaires, Billionaires. No. There has been an asset bubble but it's most pronounced in collectables. Cars that were rotting in barns now go for auction at 1m+ That's the asset bubble. Yesterday a load of Guitars owned by Hendrix and Bowie went for over a 1m, some only were valued at 30K. High rents/values are simply 2 incomes where there used to be 1 (women in work), Low interest rates and in certain area's like London, 'scene chasers' spending what they should be saving bidding up properties.
Dear Liam, if you were Chancellor what would you do to reduce wealth inequality? We all know the problem but what would your colleagues, business and the press allow you to do?
Give us more opportunities to save money by scrapping Net Zero for starters. Our electricity is so expensive both consumers and business are hit very hard in the pocket.
You are doing a good job at your Committee, asking business leaders difficult questions, why dont you ask the same questions to Starmer and Reeves.? This Labour government led by Starmer is an absolute disaster. I was a Labour supporter who voted Labour and canvassed for them, but will not do anything all the time Starmer is leader of the Labour party.
Thanks, Liam. 👍 An extra thing I see is that when public assets are sold off and international business has usurped our own, the buyers and owners aren't even British, so the wealth earned doesn't even stay in this country. We have French electricity (EDF), Italian railways (Avanti), Indian steel (Tata), German supermarkets (Lidl and Aldi), Spanish and Dutch vegetables, Brazilian beef, American sweets, Chinese plastic everything, and now a Czech 'Royal' Mail etc etc etc. It's diabolical. We need to rebuild the commonwealth in this country and build up British business again. We need to be interdependent with other countries, not dependent on them.
The real cause of inequality in the UK is an outdated mindset of some people who think only a few should be well off, skewing the economy to be London centric instead of spread out across the country which would benefit the treasury. I'm not bashing London i just think the economic load could be better spread out. Bring in Universal income at a sum of £2,000 for each adult regardless of circumstance without any strings attached. That would make a massive difference to so many people. It doesn't mean people wouldn't work but they'd work more to suit their circumstances i.e. a mother could afford to work part time around her children's needs. We all saw how the economy tanked during the 1st lockdown, at present that's where we're heading with this government. What needs to.change is getting old people out of politics. Too set in their ways to change and bring in new ideas. Oh, and before anyone says UBI is pie in the sky I'd remind them that Starmer has just committed to spending more money in the next 100 years to fund a war that's none of his or anyone else's business. In effect he's admitted to money laundering which is a criminal offence. Our taxes are better spent by the people who contribute to the tax receipts not by politicians
Ever since 2002, when I experienced living in a sea side town like Eastbourne in East Sussex, I learned so much about the root cause of wealth inequality. But non of our voices ever get heard. If we speak up we are targeted not only with intimidation but with a very malicious strategy to drain out our already little capacity of saving. Inexplicable and mostly unjustified Road fines that can’t be challenged. Enforced ULEZ charges even though the decision making of such mandate was rushed, mediocre and irresponsible. The disproportionate charges don’t apply to most of the motorist targeted. Transport fares increased, vehicles (primary necessity item) unaffordable. The taxes on everything we consume including fuel, energy, it’s just insane! Honestly!!! It all comes down to the polarity charge of the intentions set by those who govern us. Is it selfishness? Carelessness? Some form of self gratification when abusing power? Bullying and discriminating because of a false sense of superiority? There’s a lot to dig when it comes to the root cause of wealth inequality.
Have a look at Garys Economics, Liam. You & he appear to have very similar analysis and aims. Great to hear another voice focusing on detailing the issues and working toward solutions 👍
Thank you Liam for producing a very clear video highlighting income inequality in the uk- a driver for a lot of social ills and resentments that are stoking many people into the arms of populist parties- my issue is with ‘progressive’ political thinking that IMHO has got us to this place and you are in a danger of repeating. In the video you contrast CEO pay / wealth against average and workers , indeed shocking but the solution you will seek ( time and again by both major parties) is to soak the middle class with tax- I am a professional with an overall tax rate of 39.5%- we are easy to target and play politics with- the generation of politicians ( new labour onwards) have played this card endlessly as a distraction from the fact that they allowed wages for the lower paid to stagnate as good jobs were exported and poor quality jobs ( Barristia / delivery driver/ barbers etc) were encouraged ( subsidised by low interest rates and working tax credits) making these businesses viable- yes you kept inflation at a historic low but there was little to no value added in the economy- New Labours greatest failing ( and no not just the Iraq war) was not supercharging real skills and investment in our industrial heartlands- New labour was wealth redistribution via the benefits system- the Scandinavian model that progressive politicians love so much involve many people paying more tax revenues as they ALL earn better wages, a far broader tax base. Dealing with CEO pay will involve dealing with off shore and global capital flows that was unleashed by all politicians over the last 40 years, again harder to fix than soak the middle class- thank you.
What causes the inequality of wealth? A major contributor is government. Politicians are supposed to govern for the good of the people and the country, but instead, they are in government for their own personal wealth.
The current government's ideology is making the whole country poorer - i.e. claim there is a 22billion black hole, yet give away billions in foreign aid, put migrants in hotels and pursue Net Zero despite it making our energy prices ridiculously high for no real change on the environment.
- Income is based on how much power one has over others in order to grab a share of the ambient wealth. - Laws have been developed to protect the personal wealth which produces such power. - With those laws it is inevitable that wealth inequality will increase.
Ideological garbage. People seize on opportunities to make wealth. No one gifts them 'power'. Rich people often become poor, too, if they make bad decisions.
5. Mindset 6. Values 7. Networking/boys club Edit: Mindset is probably most important. There's documentary programs watching millionaires go to a new town with no money and no contacts and see how fast they get back to creating a million dollar business. Whereas a person without the right attitude, beliefs and knowledge will find it harder in the first place. Valuing great wealth first, which then motivates your behaviour.
Recently a shift boss where I work sat down and worked it all out. He found out he would be just as well off sitting at home and claiming what he knows he could claim than working an average 42 hours a week on shifts. This is man of lower management so imagine what it's like for those on the workshop floor. The minimum and living wages are a joke and have no link to the actual cost of living. The trouble is if you put them up on large amounts it causes inflation and companies to shed jobs. So the solutions is those on the lowest wages should be exempt from income tax or at least the tax threshold at which low wage workers start paying income tax should be raised.
So, I think what you're saying is; 'earn more (maybe by having a high value skill, service or business), save way more than you spend (junk is junk), ensure you get the highest rates of return on those savings (invest in the US and other high growth countries through tax-efficient means), give up your very highly taxed job, and concentrate on maximising your tax effecient investments. Thanks Liam, great advice! How did I do? Of course, if you want to become poor, stay poor and cripple yours and your family's life chances, then do exactly the opposite! Oh! And complain that it's the rich that is impoverishing you! Last time I checked, everyone had the same 24 hours in a day. Level up, not down!
People are not equal, we have different strengths and weaknesses, so why should pay be equal? You should be paid on merit and successful and hard working should be rewarded not punished.
Liam was doing really well up to the point he was unable to distinguish between income and capital gains. Capital Gains is, and always has been, a voluntary tax in the sense that you only pay CGT when you sell up and you decide when or if to sell. Strangely, Liam forgot to mention which party change CGT rates so that they were significantly lower than income tax rates - that would be Labour. He also forgot to mention that Labour had an opportunity in Rachel Reeves first budget to recharacterise carried income which venture capital managers receive as income rather than as currently, capital gains, but she declined do so. I would change our tax system so that income and capital gains were taxed at whatever your marginal income tax rate was, there was a common tax free allowance that could be applied to income, gains or a bit of both that way it would make no difference whether you receive cash in the form of income, capital gains or a bit of both, the amount you would owe HMRC would be the same
Nice one Liam, totally agree with you on this video, unfortunately you are totally at odds with your parties leadership who are neocons giving us austerity, a broken failed version of capitalism. Starmer needs to go for everyone's benefit.
The richest in society do not share the burden equally with the masses relatively speaking. But 99% of working class people if in the same boat would act in the same way. Capitalism is just competitive.
Not true. But Capitalism without government intervention to control it encourages dog eat dog until only the strongest dog survives. It's a zero sum game and many countries in the West are now in a race to the bottom.
I agree with everything you stated here but the Labour party also has wealthy donors does it not? BUT its's great to see a Labour MP who still holds Labour values and for that, I've joined your channel and it should be a channel that will gain 1million plus subscriber's because of your values!
The major cause of inequity in wealth, is that those who are born into comfort financially, generally have enough money to give them the freedom to make advantageous financial decisions.
Why do you think that Thatcher de-industrialised the economy? Mediation between businesses and the workers which was the role of politicians and the trade unions ended. It isn't just about wealth but power. Power is around the ability to make or not make things happen. When this is in hands of a minority what else would you expect? The power of collective labour was eradicated and now we have advanced technology. Who will own the technology? The same minority or the collective?
Thank you for explaining that Liam, you presented that in a straightforward way, do you think it’s possible in the world in which we live to apply any of that thinking?👍
Labour has never run a budget surplus; they have always spent more than they collected. To cover this gap, the government borrows money, often by issuing bonds that financial institutions or the central bank buy, increasing the money supply. This extra money in circulation leads to inflation, where prices rise because more money is chasing the same goods and services. Inflation also pushes up asset prices (stocks, real estate, etc.), benefiting the wealthy who own these assets. Meanwhile, lower-income workers, who rely on wages, see their real incomes stagnate while living costs rise-worsening inequality, despite Labour claiming to support them.
I suggest you have a chat with Professor Steve Keen and Stephanie Kelton of MMT fame. The narrative of UK government being like a household is not only wrong it is purposefully disinforming the population with regard to the way money is created in the first place. How is UK society expected to reduce inequality without first having a proper understanding of how private bank money creation also adds to the assets/ liabilities of the BofE etc? I think a mature conversation with the British Public about the real reason we need to tax and work is way past due. Indeed that chat could benefit Rachel Reeves. Her hell for leather, bending over backwards for Shadow banks like BlackRock is precisely the behaviour we should avoid; given the eternally costly mistakes of both the Thatcher and Blair/ Brown administrations.
One million upticks! If you work hard at your own betterment, you'll find things eventually start going your way. Concentrate on climbing your own ladder instead of throwing jealous or resentful looks at all the others around you, or trying to chop down their ladders with taxes! Government just wastes tax money. We've seen it again and again.
@@HDSPKSRecords-gi1ob Absolutely Could not have said it better myself, Far too many want to take the easy route, to blame others instead of taking action
It's funny how there's always an opinion piece on how to improve the situation in the UK by MP's over a youtube video, yet the economy slides into an absolute depression over multiple decades. Its almost like they know what needs to done but can't or won't make the changes... I think you would be better off promoting this internally to your party Sir, and make the 'change' your party is touting so frequently. My understanding is that, what you are advising here is in stark contrast to what your party is actually doing... Let me me ask you a quick question; What changes are Labour making to address the issues you have highlighted in this video? I am neither an MP or an Economist, and yet, I have had that clarity for over a decade... One final point, If I may. Homes, housing, shelter should not be speculative assets used by the wealthy. A place to live, reside and have security is a fundamental right. This is something you need to address. Using housing for speculative wealth generation should be capped to no more that 10% of the market to ensure that there is enough afforable housing for the people to 'live'.
How about those who live off loans that were taken against their assets? They do not even include that in any calculation, because that is not taxable! People with assets can completely avoid tax.
This is so distressing I don't know where to begin. Corporations don't need to care about us, obviously, but who is protecting us from their exploitation. Our institutions have abandoned us. We can't look to Government any more as parliament is deferential to the interests of the rich - the tax system and employment laws favour the rich and disempower the working class. The banks and banking system have reached an ascendency of power and influence that should never have been allowed to happen - our old system of working and saving has been transformed to living off credit, making us all slaves to the bankers. The Unions are a shadow of their former power and sadly the working class are split by faction building and petty disputes over ideology. And what of Democracy? - us the people voting for corrupt politicians and falling for the lying rhetoric of Brexit to make out lives even worse. I have no strategy only tactics. Learn marketable skills - money makes you safe. Own your own property if you can. Avoid the gig economy and be salaried if you can. Save if you can. Avoid credit wherever possible. Try to buy local. Avoid the trap of consumerism. Buy second hand and upcycle - there's so much stuff out there. Also, remember your worth as nobody else will.
Inequality isn't "caused" like some sort of freak weather event, it is the deliberate result of government policies. And it has been the policy of every UK government since 1979.
It's more self inflicted. Than it is government. Given laws are universal. So what is stopping you from saving? Opening an investment isa, avoiding debt?
@MinkieWinkle you clearly do not have any understanding how economic and social policies have created the current situation. What is to stop yourself investing in that knowledge?
@@Orlok1970 Stop seeing everyone as victims. We have agency, we can improve our positions with effort and smart choices. Better than trying to tax the rich, it never works. Yet it's all the left ever offer as solutions. Tax, tax, tax. How much more money do you want to give to government to waste?
@ nothing, just like the knowledge oh how to live within ones means, to no get into debt, how to use an ISA and pension. the irony is, if you looked those up, it makes your entire statement mute, since you would have just found the way to avoid self induced financial hardships
@MinkieWinkle except blaming the poor for a lack of thrift is the absurd narrative peddled by the ignorant and stupid and preduiced, and which is easily debunked by facts. You don't seem to understand the very concept of wealth inequality, let alone the economic structures that deliver it. The UK is the most unequal country in Europe, and the least socially mobile. Why is this? It isn't because of ISAs. You utter fool. The government could eliminate child poverty tomorrow by simply redistributing wealth from those who have far too much money to those parents who have too little.
You now have a chance to ensure capital flow through to underserved sectors which could boost growth and wealth equality. The time is now, dont miss the opportunity. For too many years, the 🇬🇧 was basically a rentier economy. It can be changed, the reason why not as bothered by exodus of wealthy.
@@HDSPKSRecords-gi1ob . Rich people can also employ people to troll economics channels to sow disinformation, and suggest that the situation is the natural order of things, and to just suck it up. This comment thread seems to have attracted the attention a quite few. I noticed that Gary Stephenson's channel has a number of the same trolls on his videos. Their talking points are predictable and easy to spot: Examples: 'uncontrolled immigration is the problem', 'the rich are jobs and wealth creators', 'billionaires will leave and take their money with them if you try to tax them fairly', 'crack down on benefit scroungers', etc. lol
They are aloud Jimmy up prices but complain when you ask to Jimmy up wages. It's really very simple. The same people control both parts of that dynamic. Push prices up 3 times a year. Begrudgingly increase wages once every 5 years. Because of the saturation of workers. People are too scared to ask for more wages. In case they get moved on or get fewer hours on the rota. The whole of capitalism is designed for businessmen to slowly depress the working wage. Time the dynamics was changed permanently. Be brave Liam. Ask for wage increases to be linked to profits. You would cure inflation overnight. 😂 I it would take one hall of a richeous person.
Inequalities of wealth are much less important that inequalities of consumption. Inequalities of consumption are also much less than of wealth. To have a better, fairer society, what we really want is to discourage excessive, luxurious, wasteful consumption and pollution. Beyond that, citizens at all levels of income and wealth can contribute to a great economy. Good economic citizens occur at all levels of income and wealth.
There no such thing as average worker, different skills demand greater reward. Invest in your skills and live within your means and invest the excess into index funds and youll be OK. We need to educate kids in finance and not just prepare them to be good workers. Most people do not know how money works.
@@liambyrnemp Fair play, however, I still struggle to find you credible when your party fails to tax the rich under reeves, opting instead to open a diplomatic mission with china and double down on being a so called "AI superpower" (if that generated animal person tiktok is anything to go by, that will never happen) . I fail to see how a labour party can believe financial interests like blackrock can have solutions in a world broken by those same financial interests.
Dear Liam, student loans are not really a debt for most students, more like a tax which will never amount to as much as the loan taken out for their university education because it is income contingent. I wrote about this in the Times Higher Education (Sept 2024). It is not wise to call it a debt as this deters people from certain backgrounds who are not financially savvy - Muslims, the working class and lower middle classes.
I'm sick of student loans. I didn't complete my degree, which is maybe my fault, and I'm not working in a job at all in the field I studied. But it's essentially an extra 9% tax over £27k or whatever the threshold is. I will never pay off the debt.
It's nothing to with growth. It's land. There is a fixed supply of land. Look at the correlation between land pri 1:48 ces and house prices.The rise in house prices pretty much exactly matches the rise in land prices. So you won't do anything about house prices by increasing the supply of houses, because you haven't broken that link. Why have land prices increased so much ? Because of hoarding is extremes of wealth. What do you do when you have so much money you don't know what to do with it ? You buy land. What has happened is that effectively the super rich have bought up land, effectively taking out of supply. So is less land per head available for everyone else. So house prices go up because land prices go up.
UK state pension is not great compared to the rest of Europe. We have pension credit to top it up for poorer people, then we have £10 Christmas bonus introduced many years ago, barely worth the admin costs now and then we have the winter fuel allowance and the £25 cold weather payments. Instead of tinkering around the edges how about just paying a really decent flat rate pension and scrap all the add on's 🤔 Will save all the admin costs for government with it's inadequate I.T infrastructure and free up processing times.
You've missed out perhaps the most important factor, which makes growing wealth inequality INEVITABLE - and that is COMPOUNDING. Even if the wealthiest earned the same income, had the same savings rate and paid the same tax rate, WEALTH inequality would still grow - it's just pure maths of compounding a big number vs a small number.
Unfortunately I know what the structural issues that the uk economy and tax system face, I listen to economists like Richard J Murphy and Gary Stevenson. It's what Labour intend to do about it I'm interested in hearing. When are Labour going to grasp the priorities like press reform to stem the flow of lies ans propaganda, reversing the catastrophic brexit which destroyed the engineerig business I owned and taxing wealth at thecsame level as we ordinarily people pay. Without recovering the money the tories pumped intobthe economy which was instantly siphoned off into assets owned by the ultra rich the economy will continue to stagnate. The change in inheritance tax for 'farmers' was a small step in the right direction but Labour must go much further while helping real small businesses to cope with the disaster the tories created.
Wealth inequality - the prime minister is a multi millionaire, and has received tens of thousands in gifts from rich people, as have other Labour MP's.
Mass immigration undermines support for arguments like this type of wealth redistribution. Inequality didn’t start at the financial crisis or pre lockdown, there are many reasons for it. Investment, productivity and aspiration are far more pressing concerns and offer better solutions for the UK.
Unfortunately, both you and James Meade completely ignored the REAL cause of increasing inequality of wealth and income: the rich being legally entitled to steal from everyone else. First you have to understand what PRIVILEGE is: a legal entitlement to benefit from the abrogation of others' rights without making just compensation -- effectively, a legal entitlement to steal (albeit indirectly, which is enough to deceive 99.9% of people). The rich own (and own the great majority of the companies that own) most of the PRIVILEGES such as land titles, IP monopolies, bank licenses, oil and mineral rights, corporate limited liability, etc. The owners of such PRIVILEGES are legally entitled to take wealth from the community -- called economic rent -- without making any contribution to wealth production. The more PRIVILEGE you own, the more economic rent income you pocket, and the more PRIVILEGE you can afford to buy up, thus getting even more unearned income, etc. Positive feedback. The fact that the economic rent incomes the rich get by legalized stealing are taxed at a lower rate than the wages working people get for contributing to production of goods and services strengthens this effect. Moreover, PRIVILEGES get their value from government and the community, not their owners, so they should be taxed enough to reduce their value to near zero, rather than taxing working people's wages, which measure what they are contributing to production. That is self-evident justice. But don't hold your breath waiting for Labour to take any interest in justice.
Paying rent to a landlord without even beginning to make a profit ,, if your business dosent succeed or pick up ,, it's always the landlord that profited from the arrangement
We do not need billionaires, tax havens, mega yachts, private jets, mansions, poverty, homelessness, or hopelessness. Greed is why regulated societies need implementable laws and a fair tax system. Wealth is good; greed and selfishness are bad.
Tax is too high on wagies. They havent increased the thresholds enough on the 0, 20 and 40% brackets. Also inflation has made savings pointless combined with low interest rates.
People who are cleverer, work harder and have better ideas tend to be richer than the rest of us. Good luck to them and you can quit with your politics of envy.
Success causes inequality. There's little or no wealth inequality in poor countries such as North Korea whereas in the US it's rife. Which country do people want to live, it ain't North Korea.
So a big chunk of wealth inequality is determined by weak democracy? (Where areas including tax are not overseen by a constitution enforcing political equality) Yes - political parties that maintain corrupt electoral processes so that they can enforce arbitrary rule based on nothing more than preferred ideology & guesswork leads to advantages for special interest; no surprise there. I imagine that the follow-up videos will suggest even more authoritarianism as the solution - rather than addressing the root cause... Wealth inequality is not a fundamental problem - it's just a problem when imposed by politicians.
inequality is baked into life from cells all the way up and is a fact of life. life consumes the dead diseased and dying. there is no reason to consider ourselves any better
very encouraging to see an actual MP talking about this kind of thing.
Yes but all tall no action
@@shus5787 Ok, what do you suggest?
@@fawfulBeans Pay politicians societal median wage fix expenses to reflect minimum wage for one assistant, provide board and lodgings in Houses Of Parliament. Wealth inequality would decrease inexorably.
Every government is complicit in the system. Privatisation of all utilities in the 80s had a domino effect on everything else.
Complicit doesn't begin to scratch the surface. It's borderline corruption. Rarely are the 90 % citizens of the UK informed about how stacked the system is against them. It always "your jealous" or "politics of envy". Dam right I'm envious of the various ways to minimise tax on millions! I pay 40% on anything over 50k. Good wage but the super rich max of 28% for capital gains is criminal by comparison.
That was Thatcherism I think you're referring too?
We are all Thatcher's children. It fundamentally damaged our country.
And she sold off half our housing stock cheaply.
Neoliberalism, the same thing as Blair , brown, Cameron and now starmer.@@Shepz-123
Property - much of the under taxed wealth of Sunak et al, buys up property which is then rented to those who will never be able to save a mortgage deposit. This is a financial time bomb - larger and larger proportions of our population trying to survive retirement while renting. This problem will not be solved by 'just building more homes', because many of the affordable properties have low taxed wealth waiting to buy them up.
I've often thought that without some sort of resistance to multiple home ownership surely we are just creating a greater housing portfolio for the rich?
Companies no longer have final salary pensions and interest rates on savings have been low for years. The age that private pensions could be cashed came down to 55. Therefore a lot of people just like me have cashed their private pensions at 55 and invested in ŕental properties. How else are older people supposed to be able to retire and make space for younger people to be promoted into their vacant positions?
@@Shepz-123doesn't that just incentivise you to focus on your career & grow your own wealth?
@@philyewin4880just think of the generations behind you, they won’t be able to retire at all! And it’s not particularly the people who own a second home who are the problem (although it contributes) but those who buy up multiple properties taking away resources and driving up prices.
@@philyewin4880 Sadly, unintended consequences - these changes helped you preserve your ‘final salary pension’ expectations but with no regulation or limit, current and future generations will never be able to own a property, or have affordable rent. As I said, this is a societal time bomb - that has to be de-fused now, because the ‘property portfolio’ owning Tories will never do it if/when they get back into power.
To your question, ‘how else are older people supposed to be able to retire…?’
It sounds like you had a significant private pension sum, as you were able to buy more than one property to rent out. You could have put that money into a stock market portfolio that would grow at around 5% PA. Then draw that down to supplement your state pension. Then take a little of your capital and put solar panels on the roof (you own) with storage battery - giving you very low utility costs insulated from future shocks. These are things our property owning generation(s) is able to do - that are not available to the generations that are following - we have to change this.
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You, Laim Byrne Sir are the type of politician I would vote for and I don't say that lightly. I'm 56 and voted once and refused to vote again until something changes. You might be the change that's needed. I truly hope you gain traction with your thoughts and desires. God Speed.
The man is a hypocrite. He's in the governing party!
Good video. You need to talk to Gary Stephenson.
I would love a series with Liam Byrne, Gary Stephenson, Richard Murphy and Torsten Bell.
Two are Labour MPs but they can't be happy with the orthodoxy of this government.
He has. Sound appalling on the video! Watched though.
@@robinjones5169And Danny Dorling.👍
@PeppermintPatties thanks, just seen that
I'm glad someone is talking about inequality. If you want growth, one thing you'll have to do is end inequality.
There's little wealth inequality in North Korea or most poor countries. How does that work regarding your theory on growth?
@stumac869 The UK isn't a poor country and you can't really compare it to one that is.
@@stumac869 You think there is no rich minority in North Korea? Dream on. Just because the overwhelming majority subsist doesn't mean they all do. We will end up like that if nothing changes as the rich have seen their wealth grow hugely while the ordinary people have seen their wealth decrease steadily.
@@Hiram8866One in seven people in the UK are now considered as being in poverty.
In December 2023 UNICEF - The United Nations Children's Fund, ranked the UK as rhe worst amongst the the world's richest countries in child poverty levels.
So, Britain is poor, you just have to walk down any high street or towns.
It's your rich, privileged few politicians who and their friends in large corporations that aren't poor.
@Hiram8866 One in seven people in the UK are now considered as being in poverty.
In December 2023 UNICEF - The United Nations Children's Fund, ranked the UK as rhe worst amongst the the world's richest countries in child poverty levels.
So, Britain is poor, you just have to walk down any high street or towns.
It's your rich, privileged few politicians and their friends in large corporations that aren't poor.
Where has this guy been hiding? Hes absolutely brilliant. Hes got 10 times the brain of most MPs
I agree, also a recent fan. Read his book on Inequality, it's hugely insightful.
That's kind of damning with faint praise....
@@Jenks1 He has not been hiding this is a new version of himself i have not seen yet, the older version of himself when he was shadow minster for the department of work and pensions under Ed Miliband.
Then he wanted to help the Tories roll out Universal credit faster so more people could be sanctioned and starved into work, he was also the person who left a note to the incoming Tory government there is no money left.
I do not recognise this version of himself he was previously a Tory Blairite on the right of the Labour party, perhaps he has changed i do not know.
I do think if he was offered a post in Kier Starmers government as a minister he would change again and go back to being a Blairite.
@PeterLewis21 oh okay thank you. That explains why I have never noticed him before. The fact that he thinks "money can run out" tells me he doesn't understand what money is. Lol.
It has been said in many places and on many occasions that Liam Byrne's note that he left was a joke that the incoming tories and subsequent right wing media have turned into something seriously meant. The jury is out as far as I'm concerned. I don't know if he has had a lightbulb moment or if he's just jumped on the "inequality" bandwagon to suit his own agenda. I suppose wisdom does (sometimes) come with age.🤷
I think you nailed it Liam. You explained it so clearly. What is upsetting that a labour government so far as done nothing to redress the balance which is why everyone is disillusioned with this government. The other issue is the average saver in this country seems to earn a pittance in interest and so I think the banks have a lot to answer for in maintaining this inequality whilst lining their own pockets.
The labour party aren't here to help the british working class, they are here to replace us with brown people
Happy new year You work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires
As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
Investing in crypto/forex is a good idea,
a good trading system would put you
through many days of success.
Investing $15,000 and received $174,000
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Major then Blair outsourced UK tech jobs via ICT visas. That killed off the UK based tech training depts and UK Gov. tech training courses. People who cross-trained into IT in the 1980s were made redundant by PLCs crying that they had tech skills shortages. Since Y2K, UK workers have been consistently undercut. If Labour had their way, we would all work in Supermarkets and rent out our spare room to a foreign worker here on an ICT visa!! Under Thatcher, the UK Gov. ran IT cross-training courses advertising to Teachers, Plumbers and Electricians - much better for UK workers.
Wealthiest buy assets that the non wealthy need. Like housing. If you're not them , you're getting out competed for limited resources. And then forced to rent from the wealthiest.
The wealthy aren't generally invested in property, and when they are it's golf courses, hotels, resorts, stadiums etc....not little 2 bed semi's in your fantasy oppression strawman.
As you are a Labour MP in a Labour government why aren't you implementing your solutions to inequality?
At the moment we have a Labour government taking away Winter fuel payments from pensioners, and is now looking at Welfare cuts, this is taking money from the poorest in society the last thing a Labour government should be doing.
The simple question is why isn't this Labour government taxing investment in line with normal tax rates?
Why is this so called Labour government taking away winter fuel payments and talking about cuts for the disabled when you could just raise tax on investment?
In your own video you have explained why this Labour government is so unpopular.
Blair was the most unpopular Labour Prime Minister Keir Starmer is now going to be the most unpopular Prime Mjnister ever.
Labour are a neoliberal party now, their ideology is fundamentally drawn from the same well as Thatcher, and the Tories.
This guy seems to be an outlier. Politics is all about alliances, deals, and power, one guy can only do so much.
Party labels are now worthless, if you have a selection of candidates for your local MP, ignore the colour of their rosette, and find out what their policies are.
Agree 100% Labour are now a neoliberal party indistinguishable from the Tories.
This is why i no longer vote for them, canvas for or support them.
We are the new Labour government, how can we demonstrate we are going to be tough on economic spending?
I know lets take away the Winter fuel payment from pensioners that will show i am a tough chancellor says Rachel Reeves.
Rachel Reeves and Keir Starmer now need more money, lets show we are tough again, lets take away money from the disabled.
@@tombrown407💯
If you don't physically go out and earn your money and it come to you while your sleeping, then it makes sense to pay an increased rate of tax. I also think if you work extra hours like overtime, you should pay less tax on that. But that never going to happen.
What about a VAT break at Christmas. That will get the economy moving . Again, it's never going to happen. The deck is not stacked in our favour.
I appreciate this video Liam. Please do a video on how our Government, your party, will implement the changes needed to end inequality and poverty in our country. 🙏🏻
A very good description of the problems Liam, but may I elaborate
The overall problem though is neoliberalism and the economic model which has been dominant since the 80's
That a working person is surplus to requirements and all that matters is shareholder value, loyalty and development goes out of the window
To gain that value there has been no investment whatsoever in training for the lower end of the job market, just cheap labour to achieve quarterly targets
Combine that now with a massive graduate glut of young people who are very well educated but cannot even get a foot in the job market and you can understand why so many youngsters are p**ed off and I don't blame them
Housing is (and Will be) the main factor for anybody wanting to build a life and that has been utterly destroyed in the past 30 years for the average person Liam purely due to the absolutely ridiculous costs whether renting or saving for a mortgage
It's insane and unsustainable in the long term, but of course successive governments have only embraced short termism
Almost none of that is 'neo Liberalism'. If we had zero regulations on building and Hyde park, St James park etc... had housing thrown up on it....I'd take your point. That would be a deregulate Neo-lib fail. The F*CKING OPPSITE has happened.
I can only conclude you've been coached to cite 'Neo-liberalism' as a boogie man.
Thank you - especially for mentioning quantitative easing (and cost of 'quantitative tightening'; related to recent Bank of England bond selling).
QT is not recent, it's been going on since 2022.
@@billB101 Fair, but is recent relative to the introduction of quantitative easing (2008?)
QT was a MUST happen after QE in 2008 onwards. Or do you think the Germans in the 1920's were having a great time loading wheelbarrows with trillion mark notes to buy a loaf of bread ? Achieving equality via poverty isn't a very bright idea.
Raise the tax threshold so that people on lower incomes are not paying tax. It's absolutely ridiculous to start paying income tax on £12500. Excessive taxation is what keeps people down.
100%
No wrong fix. Wages must be linked to profits so employers are no longer in control of rate of pay. It should increase organically.
@paulgibbons2320 no right fix. It's pointless earning more just for the taxman to take it. What if the profits of the company you work for decrease ? Would you want your wage to decrease also ?
@@Mark-ef2ly The only fix they want is to gaffer tape our mouths so we can't complain.
Correct. Personal Allowance should be £18,000 minimum.
So glad to see an MP discussing in depth serious issues in our country.
I haven't seen any other MPs seriously discuss this issue.
This is a very effective job at boiling down the complex economic situation we face into under 10 minutes. Maybe this chap would do a better job than Reeves.
Great video, but you missed a very important point. The 2008 banking crisis, also known as the global financial crisis (GFC) started the widening gap in wealth inequality globally. It was a severe economic crisis that began in 2007 and lasted into 2009, caused by several factors, including risky lending, a housing bubble, and a lack of regulation. The UK government intervened financially to support the UK banking sector, and four UK banks in particular. At its peak, the cash cost of these interventions was £137 billion, paid to the banks in the form of loans and new capital. Despite this, a worldwide 'great depression' started which led to a massive transfer of wealth from the poor to the very wealthy. The banking elite started investing in property at rock-bottom prices during the depression, which drove up housing prices post-recovery due to reduced availability. Increased house prices are a fantastic return if you are wealthy, however, for the other 90% trying to buy their first home or find a long-term rental property within their budget, it is very bad news indeed.
well said
@@kevinwells768 Thank you :)
@@GalacticRadioNoise The present Labour government is looking to repeat the 2008 banking crisis, all its plans point that way, deregulting the banks again, building houses for another housing boom.
The bank crisis started before 2007 the Labour government at the time kept a housing boom and credit boom going, which they want to do again now.
He mentioned it as ‘the great financial crash’ with regard to the income of average workers not having grown in real terms since then. When he talked about Quantitative Easing too, that happened because of the financial crash. It’s a short video covering four main themes of wealth inequality, so not particularly in depth.
Except most of the house price gains haven’t been on Mansions in the country. They have been in poor people housing in trendy gentrifying areas bought by affluent professionals. So if by wealthy, you mean Doctors, Lawyers and Boomers who bought inside the M25 in the 70s... ok. But if you mean millionaires, Billionaires. No.
There has been an asset bubble but it's most pronounced in collectables. Cars that were rotting in barns now go for auction at 1m+ That's the asset bubble. Yesterday a load of Guitars owned by Hendrix and Bowie went for over a 1m, some only were valued at 30K.
High rents/values are simply 2 incomes where there used to be 1 (women in work), Low interest rates and in certain area's like London, 'scene chasers' spending what they should be saving bidding up properties.
Dear Liam, if you were Chancellor what would you do to reduce wealth inequality? We all know the problem but what would your colleagues, business and the press allow you to do?
Give us more opportunities to save money by scrapping Net Zero for starters. Our electricity is so expensive both consumers and business are hit very hard in the pocket.
Did the link between risk and return break when we bailed out the banks at public cost and still paid their bonuses?
Inequality of wealth is caused by a Government reluctance to regulate.
Wealth is overrepresented in parliament, sadly. This is a major problem, and it means wealth is protected for the privileged minority!
You are doing a good job at your Committee, asking business leaders difficult questions, why dont you ask the same questions to Starmer and Reeves.?
This Labour government led by Starmer is an absolute disaster.
I was a Labour supporter who voted Labour and canvassed for them, but will not do anything all the time Starmer is leader of the Labour party.
Gary economics is to be our new leader
Thanks, Liam. 👍
An extra thing I see is that when public assets are sold off and international business has usurped our own, the buyers and owners aren't even British, so the wealth earned doesn't even stay in this country.
We have French electricity (EDF), Italian railways (Avanti), Indian steel (Tata), German supermarkets (Lidl and Aldi), Spanish and Dutch vegetables, Brazilian beef, American sweets, Chinese plastic everything, and now a Czech 'Royal' Mail etc etc etc. It's diabolical.
We need to rebuild the commonwealth in this country and build up British business again. We need to be interdependent with other countries, not dependent on them.
The real cause of inequality in the UK is an outdated mindset of some people who think only a few should be well off, skewing the economy to be London centric instead of spread out across the country which would benefit the treasury. I'm not bashing London i just think the economic load could be better spread out.
Bring in Universal income at a sum of £2,000 for each adult regardless of circumstance without any strings attached. That would make a massive difference to so many people. It doesn't mean people wouldn't work but they'd work more to suit their circumstances i.e. a mother could afford to work part time around her children's needs. We all saw how the economy tanked during the 1st lockdown, at present that's where we're heading with this government. What needs to.change is getting old people out of politics. Too set in their ways to change and bring in new ideas.
Oh, and before anyone says UBI is pie in the sky I'd remind them that Starmer has just committed to spending more money in the next 100 years to fund a war that's none of his or anyone else's business. In effect he's admitted to money laundering which is a criminal offence. Our taxes are better spent by the people who contribute to the tax receipts not by politicians
Ever since 2002, when I experienced living in a sea side town like Eastbourne in East Sussex, I learned so much about the root cause of wealth inequality. But non of our voices ever get heard. If we speak up we are targeted not only with intimidation but with a very malicious strategy to drain out our already little capacity of saving.
Inexplicable and mostly unjustified Road fines that can’t be challenged.
Enforced ULEZ charges even though the decision making of such mandate was rushed, mediocre and irresponsible. The disproportionate charges don’t apply to most of the motorist targeted.
Transport fares increased, vehicles (primary necessity item) unaffordable. The taxes on everything we consume including fuel, energy, it’s just insane! Honestly!!!
It all comes down to the polarity charge of the intentions set by those who govern us. Is it selfishness? Carelessness? Some form of self gratification when abusing power? Bullying and discriminating because of a false sense of superiority?
There’s a lot to dig when it comes to the root cause of wealth inequality.
If you know this, why doesn't your government do anything about it?
Have a look at Garys Economics, Liam. You & he appear to have very similar analysis and aims. Great to hear another voice focusing on detailing the issues and working toward solutions 👍
Thank you Liam for producing a very clear video highlighting income inequality in the uk- a driver for a lot of social ills and resentments that are stoking many people into the arms of populist parties- my issue is with ‘progressive’ political thinking that IMHO has got us to this place and you are in a danger of repeating. In the video you contrast CEO pay / wealth against average and workers , indeed shocking but the solution you will seek ( time and again by both major parties) is to soak the middle class with tax- I am a professional with an overall tax rate of 39.5%- we are easy to target and play politics with- the generation of politicians ( new labour onwards) have played this card endlessly as a distraction from the fact that they allowed wages for the lower paid to stagnate as good jobs were exported and poor quality jobs ( Barristia / delivery driver/ barbers etc) were encouraged ( subsidised by low interest rates and working tax credits) making these businesses viable- yes you kept inflation at a historic low but there was little to no value added in the economy- New Labours greatest failing ( and no not just the Iraq war) was not supercharging real skills and investment in our industrial heartlands- New labour was wealth redistribution via the benefits system- the Scandinavian model that progressive politicians love so much involve many people paying more tax revenues as they ALL earn better wages, a far broader tax base. Dealing with CEO pay will involve dealing with off shore and global capital flows that was unleashed by all politicians over the last 40 years, again harder to fix than soak the middle class- thank you.
One of THE best you tube videos I've seen for a long time - and from an MP! fair play.
Brilliantly explained. Now let's do something about it 😊😊😊
What causes the inequality of wealth?
A major contributor is government.
Politicians are supposed to govern for the good of the people and the country, but instead, they are in government for their own personal wealth.
The current government's ideology is making the whole country poorer - i.e. claim there is a 22billion black hole, yet give away billions in foreign aid, put migrants in hotels and pursue Net Zero despite it making our energy prices ridiculously high for no real change on the environment.
- Income is based on how much power one has over others in order to grab a share of the ambient wealth.
- Laws have been developed to protect the personal wealth which produces such power.
- With those laws it is inevitable that wealth inequality will increase.
Ideological garbage. People seize on opportunities to make wealth. No one gifts them 'power'. Rich people often become poor, too, if they make bad decisions.
Totally agree, if only someone was in a position to do something about it 😖
Another great and informative video 😎
Interesting advice from the man who left a note saying "there no money left" After labour had been in power many years.
5. Mindset
6. Values
7. Networking/boys club
Edit: Mindset is probably most important.
There's documentary programs watching millionaires go to a new town with no money and no contacts and see how fast they get back to creating a million dollar business.
Whereas a person without the right attitude, beliefs and knowledge will find it harder in the first place. Valuing great wealth first, which then motivates your behaviour.
Recently a shift boss where I work sat down and worked it all out. He found out he would be just as well off sitting at home and claiming what he knows he could claim than working an average 42 hours a week on shifts. This is man of lower management so imagine what it's like for those on the workshop floor.
The minimum and living wages are a joke and have no link to the actual cost of living. The trouble is if you put them up on large amounts it causes inflation and companies to shed jobs.
So the solutions is those on the lowest wages should be exempt from income tax or at least the tax threshold at which low wage workers start paying income tax should be raised.
Tell us summat we don't know...."Trickle Down Economics"....somewhat indistinguishable from being pissed on!
So, I think what you're saying is; 'earn more (maybe by having a high value skill, service or business), save way more than you spend (junk is junk), ensure you get the highest rates of return on those savings (invest in the US and other high growth countries through tax-efficient means), give up your very highly taxed job, and concentrate on maximising your tax effecient investments. Thanks Liam, great advice! How did I do?
Of course, if you want to become poor, stay poor and cripple yours and your family's life chances, then do exactly the opposite! Oh! And complain that it's the rich that is impoverishing you! Last time I checked, everyone had the same 24 hours in a day. Level up, not down!
People are not equal, we have different strengths and weaknesses, so why should pay be equal? You should be paid on merit and successful and hard working should be rewarded not punished.
Agreed 💯
Im a brit living in belgium, the same is happening here too, its like its a global effort!
More pls, Mr Byrne, that was a very informative video, thank you. It's a pity I can't be shown on main stream T.V.
Liam was doing really well up to the point he was unable to distinguish between income and capital gains. Capital Gains is, and always has been, a voluntary tax in the sense that you only pay CGT when you sell up and you decide when or if to sell.
Strangely, Liam forgot to mention which party change CGT rates so that they were significantly lower than income tax rates - that would be Labour. He also forgot to mention that Labour had an opportunity in Rachel Reeves first budget to recharacterise carried income which venture capital managers receive as income rather than as currently, capital gains, but she declined do so.
I would change our tax system so that income and capital gains were taxed at whatever your marginal income tax rate was, there was a common tax free allowance that could be applied to income, gains or a bit of both that way it would make no difference whether you receive cash in the form of income, capital gains or a bit of both, the amount you would owe HMRC would be the same
Nice one Liam, totally agree with you on this video, unfortunately you are totally at odds with your parties leadership who are neocons giving us austerity, a broken failed version of capitalism. Starmer needs to go for everyone's benefit.
The richest in society do not share the burden equally with the masses relatively speaking. But 99% of working class people if in the same boat would act in the same way. Capitalism is just competitive.
Not true. But Capitalism without government intervention to control it encourages dog eat dog until only the strongest dog survives. It's a zero sum game and many countries in the West are now in a race to the bottom.
I agree with everything you stated here but the Labour party also has wealthy donors does it not?
BUT its's great to see a Labour MP who still holds Labour values and for that, I've joined your channel and it should be a channel that will gain 1million plus subscriber's because of your values!
....so what are you going to do about it?
The major cause of inequity in wealth, is that those who are born into comfort financially, generally have enough money to give them the freedom to make advantageous financial decisions.
Why do you think that Thatcher de-industrialised the economy? Mediation between businesses and the workers which was the role of politicians and the trade unions ended. It isn't just about wealth but power. Power is around the ability to make or not make things happen. When this is in hands of a minority what else would you expect? The power of collective labour was eradicated and now we have advanced technology. Who will own the technology? The same minority or the collective?
Gary Stevenson
Do see: The Inequality of Wealth with Gary Stevenson
th-cam.com/video/SKRNvHUT1Cg/w-d-xo.html
Thank you for explaining that Liam, you presented that in a straightforward way, do you think it’s possible in the world in which we live to apply any of that thinking?👍
Labour has never run a budget surplus; they have always spent more than they collected. To cover this gap, the government borrows money, often by issuing bonds that financial institutions or the central bank buy, increasing the money supply. This extra money in circulation leads to inflation, where prices rise because more money is chasing the same goods and services. Inflation also pushes up asset prices (stocks, real estate, etc.), benefiting the wealthy who own these assets. Meanwhile, lower-income workers, who rely on wages, see their real incomes stagnate while living costs rise-worsening inequality, despite Labour claiming to support them.
I suggest you have a chat with Professor Steve Keen and Stephanie Kelton of MMT fame. The narrative of UK government being like a household is not only wrong it is purposefully disinforming the population with regard to the way money is created in the first place. How is UK society expected to reduce inequality without first having a proper understanding of how private bank money creation also adds to the assets/ liabilities of the BofE etc? I think a mature conversation with the British Public about the real reason we need to tax and work is way past due. Indeed that chat could benefit Rachel Reeves. Her hell for leather, bending over backwards for Shadow banks like BlackRock is precisely the behaviour we should avoid; given the eternally costly mistakes of both the Thatcher and Blair/ Brown administrations.
Too many people focus on what other have, instead of focusing on better themselves
One million upticks! If you work hard at your own betterment, you'll find things eventually start going your way. Concentrate on climbing your own ladder instead of throwing jealous or resentful looks at all the others around you, or trying to chop down their ladders with taxes!
Government just wastes tax money. We've seen it again and again.
@@HDSPKSRecords-gi1ob Absolutely
Could not have said it better myself, Far too many want to take the easy route, to blame others instead of taking action
The difference is Risk. Some take it and some don't. In America, the attitude is, Yes you can, In Britain, it's no you can't.
Nice informative video. But Starmer won't like it. I am a lifelong Labour voter. Green or spoil the ballot paper from now on I'm afraid 😢😢
It's funny how there's always an opinion piece on how to improve the situation in the UK by MP's over a youtube video, yet the economy slides into an absolute depression over multiple decades. Its almost like they know what needs to done but can't or won't make the changes...
I think you would be better off promoting this internally to your party Sir, and make the 'change' your party is touting so frequently. My understanding is that, what you are advising here is in stark contrast to what your party is actually doing... Let me me ask you a quick question; What changes are Labour making to address the issues you have highlighted in this video? I am neither an MP or an Economist, and yet, I have had that clarity for over a decade...
One final point, If I may. Homes, housing, shelter should not be speculative assets used by the wealthy. A place to live, reside and have security is a fundamental right. This is something you need to address. Using housing for speculative wealth generation should be capped to no more that 10% of the market to ensure that there is enough afforable housing for the people to 'live'.
Interest and fiat money are the main drivers of wealth inequality
How about those who live off loans that were taken against their assets? They do not even include that in any calculation, because that is not taxable! People with assets can completely avoid tax.
This is so distressing I don't know where to begin. Corporations don't need to care about us, obviously, but who is protecting us from their exploitation. Our institutions have abandoned us. We can't look to Government any more as parliament is deferential to the interests of the rich - the tax system and employment laws favour the rich and disempower the working class. The banks and banking system have reached an ascendency of power and influence that should never have been allowed to happen - our old system of working and saving has been transformed to living off credit, making us all slaves to the bankers. The Unions are a shadow of their former power and sadly the working class are split by faction building and petty disputes over ideology. And what of Democracy? - us the people voting for corrupt politicians and falling for the lying rhetoric of Brexit to make out lives even worse. I have no strategy only tactics. Learn marketable skills - money makes you safe. Own your own property if you can. Avoid the gig economy and be salaried if you can. Save if you can. Avoid credit wherever possible. Try to buy local. Avoid the trap of consumerism. Buy second hand and upcycle - there's so much stuff out there. Also, remember your worth as nobody else will.
How do we reduce inequality. If it continues the uk is goibg to get worse.
Inequality isn't "caused" like some sort of freak weather event, it is the deliberate result of government policies. And it has been the policy of every UK government since 1979.
It's more self inflicted.
Than it is government. Given laws are universal. So what is stopping you from saving? Opening an investment isa, avoiding debt?
@MinkieWinkle you clearly do not have any understanding how economic and social policies have created the current situation. What is to stop yourself investing in that knowledge?
@@Orlok1970 Stop seeing everyone as victims. We have agency, we can improve our positions with effort and smart choices. Better than trying to tax the rich, it never works. Yet it's all the left ever offer as solutions. Tax, tax, tax. How much more money do you want to give to government to waste?
@ nothing, just like the knowledge oh how to live within ones means, to no get into debt, how to use an ISA and pension.
the irony is, if you looked those up, it makes your entire statement mute, since you would have just found the way to avoid self induced financial hardships
@MinkieWinkle except blaming the poor for a lack of thrift is the absurd narrative peddled by the ignorant and stupid and preduiced, and which is easily debunked by facts. You don't seem to understand the very concept of wealth inequality, let alone the economic structures that deliver it.
The UK is the most unequal country in Europe, and the least socially mobile. Why is this? It isn't because of ISAs. You utter fool.
The government could eliminate child poverty tomorrow by simply redistributing wealth from those who have far too much money to those parents who have too little.
You now have a chance to ensure capital flow through to underserved sectors which could boost growth and wealth equality. The time is now, dont miss the opportunity. For too many years, the 🇬🇧 was basically a rentier economy. It can be changed, the reason why not as bothered by exodus of wealthy.
MPs getting heating allowance while they voted to stop hitting allowance for pensioners is perverse and shows up inequality in the society
Great points made
You’ve just made a list of overwhelming reasons to introduce a wealth tax. So why isn’t RR & Labour doing exactly that????
Government wastes tax money. Rich people have lawyers who can help them avoid such taxes etc etc head out of sand, mate.
@@HDSPKSRecords-gi1ob . Rich people can also employ people to troll economics channels to sow disinformation, and suggest that the situation is the natural order of things, and to just suck it up. This comment thread seems to have attracted the attention a quite few. I noticed that Gary Stephenson's channel has a number of the same trolls on his videos.
Their talking points are predictable and easy to spot:
Examples: 'uncontrolled immigration is the problem', 'the rich are jobs and wealth creators', 'billionaires will leave and take their money with them if you try to tax them fairly', 'crack down on benefit scroungers', etc. lol
They are aloud Jimmy up prices but complain when you ask to Jimmy up wages. It's really very simple.
The same people control both parts of that dynamic.
Push prices up 3 times a year.
Begrudgingly increase wages once every 5 years.
Because of the saturation of workers. People are too scared to ask for more wages. In case they get moved on or get fewer hours on the rota.
The whole of capitalism is designed for businessmen to slowly depress the working wage.
Time the dynamics was changed permanently.
Be brave Liam.
Ask for wage increases to be linked to profits. You would cure inflation overnight. 😂
I it would take one hall of a richeous person.
Inequalities of wealth are much less important that inequalities of consumption. Inequalities of consumption are also much less than of wealth. To have a better, fairer society, what we really want is to discourage excessive, luxurious, wasteful consumption and pollution. Beyond that, citizens at all levels of income and wealth can contribute to a great economy. Good economic citizens occur at all levels of income and wealth.
There no such thing as average worker, different skills demand greater reward. Invest in your skills and live within your means and invest the excess into index funds and youll be OK. We need to educate kids in finance and not just prepare them to be good workers. Most people do not know how money works.
Say one thing, do another. Don't watch this channel, go watch garys economics instead. He won't piss on you and tell you it's raining.
Do see: The Inequality of Wealth with Gary Stevenson
th-cam.com/video/SKRNvHUT1Cg/w-d-xo.html
@@liambyrnemp Fair play, however, I still struggle to find you credible when your party fails to tax the rich under reeves, opting instead to open a diplomatic mission with china and double down on being a so called "AI superpower" (if that generated animal person tiktok is anything to go by, that will never happen) . I fail to see how a labour party can believe financial interests like blackrock can have solutions in a world broken by those same financial interests.
Dear Liam, student loans are not really a debt for most students, more like a tax which will never amount to as much as the loan taken out for their university education because it is income contingent. I wrote about this in the Times Higher Education (Sept 2024). It is not wise to call it a debt as this deters people from certain backgrounds who are not financially savvy - Muslims, the working class and lower middle classes.
I'm sick of student loans. I didn't complete my degree, which is maybe my fault, and I'm not working in a job at all in the field I studied. But it's essentially an extra 9% tax over £27k or whatever the threshold is. I will never pay off the debt.
It's nothing to with growth. It's land. There is a fixed supply of land. Look at the correlation between land pri 1:48 ces and house prices.The rise in house prices pretty much exactly matches the rise in land prices. So you won't do anything about house prices by increasing the supply of houses, because you haven't broken that link. Why have land prices increased so much ? Because of hoarding is extremes of wealth. What do you do when you have so much money you don't know what to do with it ? You buy land. What has happened is that effectively the super rich have bought up land, effectively taking out of supply. So is less land per head available for everyone else. So house prices go up because land prices go up.
UK state pension is not great compared to the rest of Europe.
We have pension credit to top it up for poorer people, then we have £10 Christmas bonus introduced many years ago, barely worth the admin costs now and then we have the winter fuel allowance and the £25 cold weather payments.
Instead of tinkering around the edges how about just paying a really decent flat rate pension and scrap all the add on's 🤔
Will save all the admin costs for government with it's inadequate I.T infrastructure and free up processing times.
Great video. How about a discussion with Gary Stephenson.
You've missed out perhaps the most important factor, which makes growing wealth inequality INEVITABLE - and that is COMPOUNDING. Even if the wealthiest earned the same income, had the same savings rate and paid the same tax rate, WEALTH inequality would still grow - it's just pure maths of compounding a big number vs a small number.
Unfortunately I know what the structural issues that the uk economy and tax system face, I listen to economists like Richard J Murphy and Gary Stevenson. It's what Labour intend to do about it I'm interested in hearing.
When are Labour going to grasp the priorities like press reform to stem the flow of lies ans propaganda, reversing the catastrophic brexit which destroyed the engineerig business I owned and taxing wealth at thecsame level as we ordinarily people pay. Without recovering the money the tories pumped intobthe economy which was instantly siphoned off into assets owned by the ultra rich the economy will continue to stagnate. The change in inheritance tax for 'farmers' was a small step in the right direction but Labour must go much further while helping real small businesses to cope with the disaster the tories created.
Wealth inequality - the prime minister is a multi millionaire, and has received tens of thousands in gifts from rich people, as have other Labour MP's.
Mass immigration undermines support for arguments like this type of wealth redistribution. Inequality didn’t start at the financial crisis or pre lockdown, there are many reasons for it. Investment, productivity and aspiration are far more pressing concerns and offer better solutions for the UK.
Unfortunately, both you and James Meade completely ignored the REAL cause of increasing inequality of wealth and income: the rich being legally entitled to steal from everyone else. First you have to understand what PRIVILEGE is: a legal entitlement to benefit from the abrogation of others' rights without making just compensation -- effectively, a legal entitlement to steal (albeit indirectly, which is enough to deceive 99.9% of people). The rich own (and own the great majority of the companies that own) most of the PRIVILEGES such as land titles, IP monopolies, bank licenses, oil and mineral rights, corporate limited liability, etc. The owners of such PRIVILEGES are legally entitled to take wealth from the community -- called economic rent -- without making any contribution to wealth production. The more PRIVILEGE you own, the more economic rent income you pocket, and the more PRIVILEGE you can afford to buy up, thus getting even more unearned income, etc. Positive feedback. The fact that the economic rent incomes the rich get by legalized stealing are taxed at a lower rate than the wages working people get for contributing to production of goods and services strengthens this effect. Moreover, PRIVILEGES get their value from government and the community, not their owners, so they should be taxed enough to reduce their value to near zero, rather than taxing working people's wages, which measure what they are contributing to production. That is self-evident justice. But don't hold your breath waiting for Labour to take any interest in justice.
Paying rent to a landlord without even beginning to make a profit ,, if your business dosent succeed or pick up ,, it's always the landlord that profited from the arrangement
talk to gary stevenson
We do not need billionaires, tax havens, mega yachts, private jets, mansions, poverty, homelessness, or hopelessness. Greed is why regulated societies need implementable laws and a fair tax system. Wealth is good; greed and selfishness are bad.
Tax is too high on wagies. They havent increased the thresholds enough on the 0, 20 and 40% brackets. Also inflation has made savings pointless combined with low interest rates.
As long as we are all distracted by billionaires doing dodgy waves, we're not discussing this stuff...
Pay politicians median wage, then you'd see wealth inequality decrease steadily and inexorably.
People who are cleverer, work harder and have better ideas tend to be richer than the rest of us. Good luck to them and you can quit with your politics of envy.
You and Gary at Gary’s Economics have become two of my favorite channels. I look forward to your future videos.
So you can be indulged that nothing is/was the public fault and preciesly what they have been voting for (nimbyism, high taxes etc...)
“The State Pension isn’t worth what it used to be” Presumably that comparison is with _before_ the triple lock?
👏👏👏👏
Success causes inequality. There's little or no wealth inequality in poor countries such as North Korea whereas in the US it's rife. Which country do people want to live, it ain't North Korea.
Can you please pass on your politics to my Labour MP, Mark Furgeson? He has none himself. Thank you.
The income of the richest became stable as the laws were created for this to happen.
So a big chunk of wealth inequality is determined by weak democracy? (Where areas including tax are not overseen by a constitution enforcing political equality) Yes - political parties that maintain corrupt electoral processes so that they can enforce arbitrary rule based on nothing more than preferred ideology & guesswork leads to advantages for special interest; no surprise there. I imagine that the follow-up videos will suggest even more authoritarianism as the solution - rather than addressing the root cause... Wealth inequality is not a fundamental problem - it's just a problem when imposed by politicians.
Bring back clause 4.
Inequality is good and shouldn't be fixed.
inequality is baked into life from cells all the way up and is a fact of life. life consumes the dead diseased and dying. there is no reason to consider ourselves any better