Garys Economics My first video: How Covid makes the rich richer (and you poorer)
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Jul 14, 2020 The podcast dives into the unsettling impact of COVID-19 on wealth distribution. It reveals how the rich are becoming richer while the poor are left struggling with declining incomes. Discussions around money printing clarify how central banks influence economic flows, exacerbating inequality. Additionally, the show debates the consequences of increased government debt on housing and wages. Finally, there's a compelling argument for wealth taxation to address these disparities and ensure a fairer economic future.
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Trader's Perspective On Crisis Speed
- Gary Stevenson contrasts the speed of current monetary changes with his experience in 2008 as a money trader.
- He says today's events will dominate the economy for years or decades.
Central Bank Creates Money For Government
- The Bank of England created £300 billion of electronic money and lent it to the government.
- This new money increases government debt and enters the economy via government spending.
Furloughs Don't Make Workers Wealthier
- Furloughed workers receive government payments but often less than prior wages so they are not net richer.
- The missing wages instead remain in the hands of customers who have cut non-essential spending.