Wealth: what it is & how it differs from Income
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- čas přidán 16. 06. 2024
- "If you were born poor you will die poor
and if you were born rich you will die richer"
Former city trader Gary Stevenson explains the difference between Wealth & Income. He also explains why failing to tax wealth will lead to worsening inequality.
"Houses are not gonna be affordable for working people,
Houses are not gonna be affordable for future generations"
SOCIAL MEDIA:
WEBSITE - www.wealtheconomics.org
TWITTER - @garyseconomics
FACEBOOK - @garyseconomics
INSTAGRAM - @garyseconomics
Performed by Gary Stevenson
GARY'S ECONOMICS
Produced by Simran Mohan
MOHAN MEDIA
My dad paid the final mortgage payment in 1989 on our family 3 bed townhouse on an estate in Hackney, East London. He had a normal job as a painter for Tower Hamlets council, but he could afford to buy that property on his own under right to buy, think it was 75k. When he passed away in 2011, we sold it for 340k and now it's tagged up for 560k. Asset inflation is killing everywhere especially London, I feel for the young. I'm Glad you're making these videos Gary, to spot light WTF is going on out here.
why did you sell it ?
This channel falls under the category of “one of the best parts of the internet”
"The richest man is not the man who has the most, but the man that needs the least"
I like this quote and it's another perspective that helps you stay sane in this unbelievably unfair system.
I am a very blessed Church mouse.,
If you, like me, have found economics baffling Gary explains the subject clearly and simply. I wish I'd discovered his videos years ago but it's never too late.
economics is made to sound baffling so us lot shut up and put up with inequality. All I heard from coworkers (I work with the NHS) was how great that a brown person got to be PM, not how much people like Sunak regardless of colour screw us all over.
Gary, you ARE the people's economist. Keep up the good work mate.
Great video. This should be part of personal finance/citizenship/moral/political education in high school. This needs to be on national television in the UK for those already out of high school too. Excellent. Thank you for your work in helping us understand.
Exactly what I am thinking. In fact Oxford or Cambridge would be ideal...
I agree but don't hold your breath - the government that runs the schools is owned by big business, the media is owned by big business. Big business is not going to rush to tell us they should be paying more tax.
who owns the education system?
Gary - thank you for helping me understand. I'm writing a book " Ignorance; Dysfunctional Education; & Failed Leadership". Hope you are ok with me referencing you in my critical of Oxford PPE degrees. & and the need for a complete overhal of our Leadership ( pitical) system. Cheers Peter Jenkins
Hello Gary. I wonder if you could find the time to look over a paper that my granddaughter is co-writing on inequality with others on her course? She is studying Politics at Erfurt University in Germany. She is bi-lingual, mother English Father German.. I sent her a post of yours and she was impressed..
I studied history at university. I love history and still spend a lot of my time reading about it. One thing which stands out is that many empires or states owe their collapse to the hubris of the rich and powerful running those states, their disconnection with the reality of the mass of the people, their illogical belief that somehow their wealth and power made them invincible. There lies a lesson for today, provided you you are prepared to look and listen.
I've known all this for a long time, I've preached about it but my words almost always fall on deaf ears. Hearing him break it down in such simple terms if so comforting. SHARE this! The largest problem we have is ignorance.
Ignorance is a huuuuuuge problem...worldwide plus the media aides that
Excellent video. If democracy really exists then politicians need to act quickly.
Gary, I am literally on my 2nd run of your book through audible; Your voice inflection and delivery on the audio book that you did is 1 of the greatest I have literally ever purchased. It allows the user to feel like he or she was there. You also opened my mind to thing I never thought about before with your CZcams videos. For instance, whenever people talk about taxing the wealthy or rich I always thought they meant a common person like me trying to get up to making $500,000 per year 1 day in the future; I didn't realize until I found you 3 weeks ago taht wealthy is property asset owners that are worth 100's of millions and they keep buying up all of the property and making it harder for the common person to live and afford housing, etc...
I've lived in several countries and noticed this happening everywhere I've lived. Thanks for explaining
I have too. Totally agree.
what the rich have over all of us around the world is that we buy into BS like nationality and race instead of uniting for our real common goal of forcing them to share.
Gary is a natural orator, is able to explain so clearly. Cannot argue with a single point. Great stuff, more videos please
8:24
He claims "houses in this country" have gone to 20 - 30x income.
If the average income is £27,756 that means the average house price for "houses in this country" should be £555,120 - £832,680
The actual average is under 300k, and starter houses are even less.
House price to earning ratios have sat around the 5 to 7 point for nearly 2 decades. Meaning the average worker would work 5-7 years to pay off the house in full. This varies by region. London is extreme, at 11x, but not even close to the 20-30x ratio this man has mentioned
Is he talking about a highlander buying a Chelsea mansion?
I have shook my head at the lies he is telling in this video.
Wealth is not made by labor but by machinery. Without machines, we would all be dirt poor
Anyone can buy government bonds, not only the rich, so the government is not owned by the rich at all. Many people owe nothing on a mortgage and own outright. No one can force you to sell your home, and the amount of laws people need to follow to rent residential property makes in very unattractive as an investment for most superwealthy. Even the banks, they don't only borrow from wealthy individuals. Most wealthy individuals shun cash in favour of productive assets. Your Nan's savings at the bank is how they get the fractional reserve they use to lend a mortgage. In reality, I believe it is unproductive to leave cash in the bank so I doubt it is a trick of the superwealthy.
He claimed when you buy from the supermarket they get a big chunk of profit. Yet last year, Tesco made just 1.51% profit margin on net sales.
Imagine that. If you spent £50 at Tesco they redistribute over £49 back to the economy in wages and taxes. They make their money, but it's not exactly a goldmine.
When we work, our machines make us more productive. What would a bus driver do if he has no bus? Ride a bicycle? That's a machine too. How about carrying people only by hand with no machinery? Obviously wealth is made by machinery, not human labor. Human labor is essential, but so is oil. So is petrol. So is tyres. Everything goes in and value comes out.
This man is not mistaken (in my view). I believe he is deliberately painting a misleading picture. I'm not dissing his accent, but I'm sure he didn't speak like that when he worked at the bank 🏦
Some statistics can be cherry picked. Others can be made up. I strongly disagree with his conclusions
Those ratios are pretty normal in London. Give it time and they'll be normal in many other parts of the country as well.
@@garyseconomics if those ratios are normal in London then there must be significantly more properties below 11x
For example, if my average is 11x but a fifth of properties are at 20x and a fifth of properties are at 30x, I would need the other 60% to be so drastically below 11x that it starts to look like a bargain.
@@garyseconomics
I get you have an agenda to push, but a little honesty and integrity is needed
Why not mention that if house prices go up, nanna will be passing on an absolute fortune? Is that a good thing? Who knows. Some will win and some will lose
I still don't get why rich people are bad for me. If rich people buy up all the assets, which they certainly do buy the desirable ones, why is life many times wealthier than it was back prior to the first industrial revolution?
Why don't poor nations have wealthy average citizens yet America and Europe have impoverished people due to all the wealth being syphoned off by the billionaires?
Why do we see the opposite of what you are suggesting?
Find a rich country with no billionaires and I'll consider my examples to be fairly questioned. But if all the rich citizens are those living under the tyranny of billionaires then I guess I'll just have to cope with my 2 family cars, one international holiday each year, clean water (hot and cold) and every day dishes from all over the globe available at a fraction of the price they were before industry changed everything
"Damn you billionaires!! Will you not cease oppressing all of us poor!!!"
Please name a place where the average person is wealthy but not due to the existence of billionaires and I'll rethink my viewpoint 😉
Wealth is created. Much of the value in the economy has been created. Not found. And machinery is the true producer of wealth. Not human effort.
@@truth.speaker if you don’t mind me asking what’s your actual background in finance?
That was a real eye opener. My worldview changed in 13mins. That's pretty impressive going Gary. Really glad I've discovered your channel.
Great video. One of your clearest and best. Being 2nd gen Caribbean here, I grew up in the 70s with similar families with 3+ children who owned 3 storey Victorian houses. All the children had their own rooms and rooms to spare. The dads held blue collar jobs and the mums were full time home keepers. The dads had two fairly new cars too. And all achieved with 1st Gen immigrants a decade after arriving here with a suitcase.
Your videos have really made a positive difference in my life and my understanding of income, debt and wealth and I just can’t thank you enough for making this content. We need more superheroes like you out there 🙏❤️.
Thanks Ibz! I'll keep at it!
Thank you for highlighting these issues Gary 🙏🏼. I’m a huge fan of yours. I’m your typical rags to riches story - I earn well and own property. I completely understand and agree with you that the country is turning into a more unequal place. Please consider standing in parliament and educate the existing clowns.
How has this video not been watched by more people. It's bloody brilliant. So we'll explained.
You are doing gods work Gary, hats off to you sir! I learned this about 10 years ago in my 30's and wish I knew it in my 20's but since then I have tried to acquire as many assets as I can. This includes property, stocks, bonds etc. I am currently generating about £40k per year from the liquid assets only (not property) - a far cry from Jess Bezzos but the compound nature of it is crazy! Soon I'll it won't take long to be at £80k per yr and so on. We really need to teach proper economics and personal finance in school. I've now subbed to your channel. cheers mate
Thanks for that Gary! Really well explained. I’d like to add that even when people manage to ‘buy’, even 25% of a flat a flat, they have just bought a piece of paper that says they can only live there for a certain amount of time, this is called a lease. If that time runs out of if they don’t pay their ground rent they are all set to lose their home, and many families have.
Yes thats a good point - thanks for your support Denise
It is extremely important to know and appreciate, the difference between income and wealth!
I would like Gary to tell us, in his opinion, how much wealth you need to have to be considered rich!
Top quality content . Totally on board with your mission to narrow the gap of inequality and demystify wealth versus income, and through such clear and informative videos. So glad I found you in the Guardian this week and look forward to watching more.
Same problem here in the USA. To make matters worse, we have a for profit health care system, which means a person could end up losing their house or going into bankruptcy to pay for medical bills. That was a great presentation by the way.
we here in the west are funked it's falling apart health care homeless more a more people be evictions rent rising more than income. That's why the new world order is here with BRICS dollars are going dead.
Gary son, you are an inspiration. Our society needs to hear your voice.
Thanks Stephen - do share the videos if you can!
Wow Gary I'm a 70 year old man from Woolwich southeast london and what I think makes you enjoyable to watch because of your expertise on this subject but you talk like us and explain it in such a way that resonates with us keep the videos and information coming your doing a great job mate.👍🙂
Superb as always. I stumbled across these videos a week or so ago and have been working my way through them. Gary talks with clarity, insight and urgency about the way in which capitalism works. I cannot wait for the book! I place him alongside Yanis Varoufakis and Richard Wolff as a primary source for understanding the current state of affairs. Every video helps to lift my level of understanding. I'm in my sixties and appreciate very much Gary's videos in educating me. Keep it up!!
Wow. Just wow. My mind is open, clear and blown. I’ve never been able to explain this inequality so clearly and now I can!! Thank you x
Thanks for sharing your insights across the divide . It’s really articulated what I have felt for years ... I’ve given up on the idea of home ownership but hope the right people start listening soon.
The best and clearest video I’ve ever watched on wealth on CZcams
I’ve recently come across your videos and as a keen ‘student’ of economics it’s nice to see someone who can actually explain wealth and inequality to the masses without using words like ‘exogenous shocks’. Also pleased to hear someone referencing Picketty’s excellent book (Capital) which everybody should read.
Never understood economics. Total appreciation and respect for your channel. The more working people understand these subjects the more we can wake up to what is happening.
Thank you
Just discovered your content Gary. My only regret is that I didn't discover it years ago. Thank you for all that you do.
Hey Gary, I am slow to pick up on your channel but am excited by what you say. There is so much inequality that needs addressing and people like you can help to understand what is happening and more importantly what we can do about it.
Please, please ,please help and guide to us to redress this disgusting wealth grab. Everyone should have the chance to own their own home which provides at least the basic needs for all. I'm a boomer and I want my kids to have a life where they are not constantly fighting for survival. We need a just and fair society. Please help!
Keep up the good work 👍....we need more to speak truth to power.
Found your channel through the conversation of money podcast that you were recently on. It's refreshing to hear people like yourself and Peter talk about finance and make it much more understandable. If only you guys were about when I was younger... but it's never too late to relook at your finances!
Thanks boss, glad you like it!
Everyone needs to wake up to Garys messages.
Wow totally speechless incredible breakdown of wealth vs income, genuinely don’t know what to say! Your really holding it down for the people here take care bro and thanks
Keep educating.
Will do boss
As usual concise and clear. Thanks Gary for cutting through all of the bs
Great breakdown of the class struggle that most arent aware of.
You are a breath of fresh air, Gary. I can't express how lucky I feel (and how lucky we should all feel) that you are telling us what's going on out there in the real world (as opposed to what politicians want us to think). You deserve so much more recognition and by golly do you deserve every penny you've earned as a trader for the good you're doing now (and much more). I will be doing my bit to spread the word. Everything really feels different this time - I do think that people have had enough and will demand change. I hope so anyway - perhaps I'm being naive. The alternative is unthinkable.
Btw was it you who used to phone into what was Tom Swarbrick's late night show on LBC last year? A trader used to phone into that show from time to time and I loved it when he did - very plain speaking - I reckon that was you but not sure. Please keep phoning LBC and if I can be brave, I will consider doing the same and encourage others to do so as well.
You Sir, are a gold brick. Bless you.
Straight forward and to the point, great content Gary. I keep getting letters from estate agent wanting to buy my house, but I will never ever sell it the wealth generators. I'm thinking about some sort of arrangement where I'd be investing in the lives of the people (and maybe their children) who would 'lease' the house from me, possibly over several generations. I don't know what exactly that would look like, but I want to take the wealth makers out of the equation.
Really interesting and informative. Worrying signs if the viscious cycle that increases inequality also increases the speed of the growth inequality as well
@Gary - Thank you, Thank you, Thank you!! Not only have you opened my eyes to what is going on in a way that doesn't patronise, talk down to anyone or treat anyone as anything other than an equal, you've actually done something far more profound than that - you've given me some hope, mate. I've not spoken to my Dad in over a year following a daft argument we had. He was frustrated at me not being in a position to buy a house at 38 years old, when he (as an apprentice electrician in the mid 1980's) was able to buy a flat, get married, have a kid (me) and all of that at the age of 21. He didn't get it, but to be honest, neither did I until I saw your videos. Now I'm clued up a bit more with what is going on and I finally feel like I have some answers I can use to make the first step towards getting back on track with my family. So, Gary, THANK YOU - what you're doing is inspiring and is already changing peoples' lives for the better.
The ratio of pay to the value of a house in todays market is crucial to realising why so many people can't afford to get on the housing ladder. We bought our first house in 1982 a 3 bed terraced house for 23,500. we sold it 5 years later for 48,000, it had more than doubled. Where we live now there is house building going on everywhere and pressure to build ever more houses (we are in the South East), the vast majority of these new homes start at £600K and go up to £1.5 million, there are very few public services and our village has just been voted the best village in the country which will probably force up the house prices even more, further reducing the prospects of younger people affording a mortgage !!
Awesome video. Thank you for making
I have so many thoughts I have going on in my head about this stuff. Just a few below.
1. I agree this is definitely a problem but what can I do to change it? Voting isn't going to make a lick of difference as all political parties are funded by the wealthy.
2. What is the end game of the wealthy? Can they not see the impact of the current state of things having on things like birth rate (just one example of so many things!)? I reckon in the next few decades there won't be enough young people who need to rent a house so that housing stock will sit empty and there won't be enough workers, or people to buy stuff companies make. It is crazy shortsighted to me. GDP is a meaningless measurement.
Found you through Damien Talks Money - so glad I did - I am so happy who speaks the language of the wealthy but has the best interests of everyone else at heart.
This is so important… sharing with everyone I know ✨ Thank you Gary for all you share
Subscibed today after seeing Gary on The Owen Jones Show. Really good presenter and good time to discuss wealth. Rishi Sunak's wife is a good example of how wealth works. She owns 1% of Infosys (no doubt given to her by her father) and got a share dividend of £12M last year. Wealth means never having to work, just sit back and wait for money to roll in.
imagine making £12mil a year just by existing - and then Rishi tells us to tighten the belt.
Thanks Gary, well explained.
Thanks, Gary. Your channel will have more and more subscribers, as the info is waking up many others, gradually. All the very best.
I can't believe this video doesn't have more views!
Really good video mate. The super rich should also be paying an environmental tax.
Thanks boss, 100% agree
Thanks for never forgetting you're one of us.
Looks like you've found your purpose in life Gary you're as good a communicator as you are a mathematician
Mind blowing
Great video! Thanks for breaking this down.
Your podcast with Conversation of Money was amazingly insightful recently.
Keep up the great content.
Thanks Naihum! Glad you're enjoying the content! I have another podcast with Peter out next week and we will be doing a CZcams live in September!
Found you through the guardian article! Keep up the great work... tides will change with persistence!
Thanks boss! I'll keep at it!
Not only that it will make a very unpleasant world to live in for most people, increasing crime, poverty....
Great video, your way of explanation is always refreshing and sheds a clear and straightforward light on an issue.
Thank you for your vision and the information!
BIG RESPECT TO YOU GARRY .WE NEED YOU TO EDUCATE PEOPLE LIKE ME 🙂
This is fascinating. I’ve always struggled to understand economics but you make it accessible.
This is such helpful, easily accessible content. Thanks sm 🙏🏻
Top-tier content! You have a real talent for this, glad you're enlightening us with these gems.
You're spot on Gary. The rich do not pay their fair share of tax in the UK because they invariably created the rules. It's the most capitalistic society bar the US. It's also a very unequal society relative to other rich countries like Denmark, Sweden, Norway and even Australia where i'm from.
Truely appreciated to your words. I'm from a family back in the 50~60s where mum and dad had 11 kids on a one income while paying a mortgage and keeping food on the table. Out of the 11 of us, some were lucky like three of six sisters and me and only me and my eldest bro of the five boys. You can work out the numbers but that's not looking good for our children and grandkids outcome.
This is great. I think a visual representation of how the money/assets grow and compound over time for a .5-.1%, would be very impactful. It’s like a contained system where someone has a massive advantage and sucks up the resources.
Gary for president
I'm so glad that you make these vids. People need to be educated about this
As I'm sure you know, Henry Ford said, " if people knew how the money system works, there'd be revolution byorning".
If sure if people were to learn and so how it is , that is very true.
Maybe that's what it will take.
It's only a matter of time!
well done Gary , this sounds just like my canvassing stitch on the doorstep, keep up the important work :)
You smashed it Gary
Thanks for this really clear and well explained video!
Thank you I'm glad you enjoyed!
Just had my eyes opened.
Thank you for sharing yourself with the internet. Real substance and information does exist , thus proving the internets worth it again and not just a platform of advertisement, ego and Untangible aspirations. You’re a fascinating and interesting person , with a great story to tell and I hope all the best with your goals that you are pursuing.
Great explanation Gary. Nice work!
Thanks Sanjeev!
Thank you, I have learned a lot from your videos and my son (18) and daughter (24) are also now so much more the wiser.
I think children should be taught about this at school and the necessity of gaining asset wealth to free themselves of tim/money exchange
Stunning
Keep spreading the word Gary and exposing the truth ❤
Phenomenal, thankS!
Fantastic, well done 👍
I descovered Gary on Russell Brand"s channel.
Thank you Gary, waiting for more videoes.
Great video Man. Keep on enlightening the society
Thank you so much I am very grateful to The Sunday Observer for giving me your details and story . You are a very clever human being with great communication skills and most importantly a wonderful heart . I really hope you fly and reach the masses . Up the revolution !
Ps I’ve sent your details to all friends and family and will tell people as much as I can 😉
I’ve recently found Gary on CZcams and I’ve watched so many of his videos now..this is an awakening within me whilst I’m sitting back and absorbing what’s happening in plain sight, and we don’t see it. How can we change this system? Remove Tories, vote Labour? Campaign for electoral reform, but what parties are out there that are willing to tackle this? Would Labour tackle this or have they become too similar to the Tories?
Love it they won’t want u talking about it
Keep going Gary. Tell it like it is. Because most people won't read Piketty.
This is great. Very well explained
I’ve watched a few of your videos now and my eyes and ears are now fully open to what you’ve pointed out, my only critique is your use of the same individuals as examples. Though I am sure what you are saying is true of them perhaps a broader spectrum of these individuals used in your analysis would stop shouting you down with bias or individual agendas. Keep spreading the word I’ll be following eagerly.
Steve
Love your videos Gary. You have made it so easy to understand and only someone who has come from your background could do this with the sincerity that you obviously have. 🙏❤️
Mate this video is so informative, I'm going to send this around to my friends and get the word out. Thank you for making these
Thanks Nick! That will be great for helping to grow the channel!
Thank you for this video. We must change this situation. We need a new way of governance, and a new way of making all people in society contribute what is fair.
Thank you Gary 😊
Thank you for the way you break down for everyone to understand. Wow I am beginning to understand it. Great video 👍🏿
Good video Gary: succinctly explained.
FACTS OVA FEELINGS). WEALTH is the Ability to Fully Experience LIFE
Thankn you!
God bless you mate you have hit the nail spot on the head, and I don't understand f**k all about economics. But I understood you alright. You are an inspiration to the working class.
Keep the videos coming.
My grandmother was low paid with 5 kids & bought her Right To Buy London house to get on the property ladder. She became a landlord with 3 properties & multimillionaire by retirement. Lived on passive income until RIP.
At every video, someone like you steer up bullshit like that. Mathematically, it is impossible, it was even impossible in the good times in the 50's and 60's.
Great video Gary. Thanks. Looking forward to seeing the next video to understand how you can effectively tax wealth.
One thought... Home ownership as a means to financial security is a very Thatcherite and recent concept. For decades in post war Britain that security came from assured tenancy and rent control. In other EU countries (Germany) it's far more common for professional and skilled workers to rent all their lives and invest their savings in other more appropriate financial instruments.
Second thought... It's not just super rich families that own the nation's wealth, it's pension and savings funds using working people's earned money they've been taxed on already. How can you tax wealth while don't double tax that money?
Looking forward to the next installment.
Nice!
Excellent and interesting
Thanks boss! Do consider subscribing and sharing if you like it!