Burning Money

You could tax and burn the £700 billion given out in Covid and living standards would improve.

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Performed by Gary Stevenson
@garyseconomics

[stuartwatson]

Money is not a real resource, it is the resource we use to determine the distribution of real resources. ✊🏻👊🏻💚

[Grandude]

Money is like shit, if you spread it around it helps things grow. If you pile it up, it stinks.

[mrparry]

Gary you cover the economic effects of inequality really well - what's missing here is that there is an effect on democracy too as when the rich get richer they become more powerful and democracy will reduce as they move to protect their power and wealth by influencing politics. You see this with the Conservative party and increasingly Labour too which has moved away from being a party funded by the membership and unions under Corbyn. The last two prime ministers were chosen by a few thousand Conservative party members and it is these people who will make political decisions relating to inequality.

[lewisgreen]

Without sounding like a sycophant Gary is one of many cerebral and conscientious people we produce here in East London. I’m from just up the road in South Woodford. Add into the mix a streetwise awareness and you have a very formidable individual.
Long may he prosper and continue his posts..

[stenstenbk]

I am increasingly impressed. Wish more people would watch you. Your clarity and perspicacity is truly impressive.

[levantos]

It's scary how much farm land and homes they're buying up each year in cash usually overpaying as well which drives up prices for everyone. Pension funds are doing this as well. Makes you wonder what's going to be left in 5-10 years time

[CheGuevara]

The people that call this politics of envy are slugs for salt.. they will either realise they’ve been wrong and brainwashed or be king of the ashes.. keep doing what your doing Gary your one of our beacons of hope to one day make change to this country ✊🏼

[MrGavinBoyd]

The problem with Thatcherism is that you eventually run out of assets to sell to overseas investors so that they can rip off British consumers.

[philipharris]

Thank you for another awesome video. We need to talk to our young in this country and teach them this stuff because they're not going to get taught this stuff in school and it will be them and their children that'll be impacted the most by this and by then it'll be too late to reverse the situation. Educate the young now!! 👏🏻 💪🏻👏🏻

[lydiaohlydia]

I have no idea why it took so long for the algorithm to show you to me! But now that it has, I’m so grateful.
I’m sharing your videos with everyone in my life who I think would be willing to watch them lol
I wanted to thank you so much for communicating these messages so clearly and with such obvious expertise, passion, and commitment. Thank you again from Canada and I hope your journey in Japan is a safe and restorative one.
I am assuming you probably won’t be reading this comment, as it’s on an older video. That being as it is, I still wanted to express my profound gratitude for all you do. And if you don’t see this, at least it will give your channel a bump in the algorithm 😉

[renocence]

As an American, I can say that a huge amount of his argument is not only direct applicable to the states but I have personally observed some of it. We appear to be in the same boat; hello neighbors.

[JCHuynh]

I like your idea of burning the money.
What I learnt from during Covid is if you give money to ordinary people, they will feel richer and consume the luxury. All the money will go back to the top like immediately.
But the taxation should be reasonable, otherwise, when there is no incentive to provide services anymore, the economy will also collapse.

[jhoffman]

Another lucid and brilliant video, Gary. Everything you say about the U.K. Directly applies to the U.S. as well. There has been a long standing, bipartisan blob, corporate media, ruling elite, consensus that class and inequality are not discussed or debated. Once enough people wake up and unite, we can not be divided and conquered anymore.

[jugr]

Thanks for your educational work, Gary!
I have a problem understanding this thought experiment, maybe someone can explain it to me:
1. Assumption: The super-rich couldn't invest everything in assets and collect interest from the central bank for the money they just have. This interest would be saved if they used the "money lying around" to pay taxes. But it would be a small part, i.e. the relief will only become apparent over many years and will be small relative to the government's deficit, right? It won't be able to significantly offset the burden on the government and the austerity measures, or would it?
Because 2. Assumption: Most of the Covid-money of Super-Rich is in assets. If these have to be sold, prices will fall so that a buyer (middle class), who can pay for it, can be found. I can understand that.
3. Assumption: If the super-rich paid so much tax, they would spend less. Why? The statement is always: They buy assets because they cannot spend more than they do, even with a luxurious lifestyle. So if they sell assets to pay taxes, they simply have a little less assets. That doesn't have to affect their lifestyle/spending.
Where am I wrong?

[borisj]

Imagine if, instead of Hunt, we had Gary as Chancellor.

[tiddlypom]

7:02 That the main purpose of money is determining distribution of real resources is self-evident if you think about it at all. Because whenever anyone suggests a society without money, the first question asked will be some version of "But how would you manage/determine distribution of stuff?" (e.g. access to the best places to live.)

[abcschoolofenglish]

Taxing the super-rich is incredibly challenging due to their mobility and resources, enabling them to relocate to tax-friendly countries, utilize offshore trusts, and employ top legal and accounting experts. Moreover, they often exploit corruption to obstruct national and global efforts aimed at curbing their wealth, influencing policymakers and manipulating regulations to their advantage. Tackling this issue requires addressing both their mobility and the corruption that enables their evasion tactics.

Furthermore, the intricate, often symbiotic relationships between the corrupt political class and the super-rich further complicate efforts to implement effective taxation measures. These relationships go beyond mere financial influence, extending to social circles, intermarriages, and aspirations for upward mobility. Members of the political elite may seek to align themselves with the super-rich for personal gain, whether through access to wealth, social status, or future career opportunities. This interconnectedness can result in policies that favor the interests of the wealthy over the broader population, perpetuating systemic inequality and hindering meaningful reforms. Addressing this issue requires not only combating corruption within government institutions but also challenging the entrenched power dynamics that reinforce these relationships.

[hafstrat]

Just finished your book. Amazing journey you’re on. Amazing!! A must read. I worked for the construction company who put the steel deck floors into Canary Wharf. 80’s was a boom. With 91 crash the company was sold off by its parent Trafalgar House. I lost my mind and then my job. Man there are many others with similar trajectories but in different scenarios and less “extreme” than yours but with common driving factors. And consequences. The desire for money ( security in my case and the need to pay off a mortgage with double digit interest rates. ) Thanks Maggie. and the fear of loosing everything. Chasing that whale…. .

[thetradingfloorinstituteby]

I'm currently reading your book. It's incredibly fascinating and well written. Well done

[juliansykes]

Absolutely right that it’s all really about distribution. I was once asked for my definition of Politics by a Professor of politics. My definition was (and is) it’s all about the distribution of power and wealth. If you want a definition of economics, just flip it round.