Hearted Youtube comments on Garys Economics (@garyseconomics) channel.
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Hi Gary,
PhD in Economics + Lecturer at a top UK university (which shall remain nameless).
I cannot begin to express how sad and frustrating it is for me (and most of my peers) to not be able to talk about this. Although a lot of research has been done on both, inequality and environmental costs... both continue to be excluded from ALL main economic data. The fact that we keep using GDP in its current format as out main economic indicator is beyond insane... but fact of the matter is universities in the US and the UK have become corporations, and research has become, for many, a launching pad into the private sector. The academic establishment has ZERO ties with real life workers unions or climate experts for example... zero coordination, and zero sense of social responsibility.
I feel ashamed for our profession at this point...
EDIT (I did not expect so many people to engage with my comment... thank you): Just to clarify, In hindsight, my choice of words when I said we are not allowed to talk about these things was poor. There is no conspiracy to silence anyone!!! What I meant is that, just like in every area of academia, there are very clear and structured paths to climbing up the employment ladder and it is to say the least skewed in favour of somewhat derivative research with solid methodology that awards as many points as possible. This inevitably penalises anyone who wants to (for example as many of you have suggested in the comments) pursue collaborative research with environmentalists, sociologists, NGOs etc. Top economic journals will never publish your work meaning you will be at a serious disadvantage when competing for jobs/grants. Also, I want to make it very clear I am in no way suggesting that more mainstream economic research is bad or false!!!!
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I'm a furniture remover, bottom of the market, sole trader. Within 2 weeks, of the Truss/Kwarteng budget everything just stopped! The Country had already been hammered by the cost of energy, markedly reducing business, then that budget was like the final straw! There is loads of money floating around at the top of the market, but the bottom is just flat! 25% of my business used to be moving renters but that all but dried-up with the pandemic - renting is so expensive that they're renting their own truck and doing their own moves. The market is a mess! I recently moved a young couple into a 1 bedroom flat in Bristol. Both were working but they had to pay a years rent in advance, £13,000! The real kicker was it was the ground floor of an ex-council house! The first floor was another flat and the loft had been converted into another flat! To top all off, the Chairman of Natwest, Sir Howard Davies, thinks that it's not difficult to buy a home!!!!! The people at the top are literally clueless and the very worst people to be in the positions they are in!!!! We are stuffed and I am scared!
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Oh Gary this was magnificent. I am 80 now and have known relative poverty for most of my life. But for some reason I never really looked for more. Maths was never my thing, more of an artist, writer, poet, so maybe that's why. You have a brilliant mind, and more than that, a big heart. You care. and that's what is important at times like this, at any time really. The Buddhist concept of "Be Kind" needs to be spread far and wide for, as your Japanese friend said, the rich people have small hearts. Even though you had money, you were not comfortable with it, and that says everything about you. I wish you every success in all you do because you deserve it, though I know that doesn't always follow. Thank you so much for what are doing. I'm crying now as I write this just because your words move me so much. Know that some of us at least, really appreciate you, maybe more than you know.
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I’m sort of uniquely positioned to comment on this video. I am a US trained human rights lawyer who focuses on workers’ human rights and the fight for equality, but with an MSc in economics from LSE and, importantly, a BA in anthropology. Furthermore, I have been married to a finance professor for nearly 30 years. So, I can confirm most of what Gary says is indeed true. I would just add the following:
1. I think the atomized approach where everyone is in their own utility-maximizing bubble is not just a mathematical necessity a la Samuelson, but a political choice that completely insulates policymaking based on theoretical economics from a solidarity approach which seems to have seeped into all policymaking, regardless of the issue.
2. Related to this, the behavior of these utility-maximizing individuals being modeled is that basically all motivations are assumed, and often shoehorned into the mathematical models. I constantly ask why economists don’t speak with actual people to test their assumptions—>blank stares.
3. economists actually believe that their models, and more importantly, their proofs, actually do prove how individuals behave. Since macro is basically just the aggregate of the micro models, they think their macro models also explain how economies work—it is simply the fault of people that they don’t understand how to maximize their utility.
5. Related to point 4, economists believe that economics (especially finance) is a “science” not a lowly “social science”. This “economics as physics” approach also conveniently insulates politicians: “we can’t defy the markets which are a force of nature, our hands are tied” rather than what they really are which is a social construct which can be shaped to meet the needs of society as a whole. the growth of behavioral economics is helping to change this, but baby steps and inevitable backlash.
6. rich people fund economics! The most prestigious Econ departments in the US are all heavily endowed by people who are heavily invested in holding onto atomization, modeling and economics approaches. Furthermore, they want this approach to economics to take over sociology, psychology and other social sciences so that they can be “real” sciences just like economics.
7. Related to endowments, although many econ profs are not paid well, the tenured finance profs are paid quite well for doing what they love, which is publishing papers. My husband makes 1/4 of a million CH per year, and for about 6 years was paid an additional 200,000 from a group of Swiss banks. Many of his colleagues sit on boards, especially for insurance companies, and get paid on average another 1/4 million per seat they hold. So don’t feel sorry for tenured finance profs, at least in Switzerland or the US,
Some hope: the broad popularity of Picketty’s work on inequality and the recent awarding of a recent Nobel prize dedicated to the team of empirical economists documenting inequality are encouraging trends. Sadly/predictably, rich donors are likely to double down on their funding of chairs for theoretical/model-based economists and try to undermine behavioral economics.
Keep up the great work!
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Heya, an old regular viewer here from Mexico.
What you explain today, this happened in my lifetime in my country twice (or 3 times, we discuss still when was the end of one crisis) and we became tied to such a huge debt that no mater how much we increased productivity (with terrible working conditions for the people, people loosing their homes, loans they ended up paying 3 or 4-fold, privatization of from around 500 state companies to having a hand full that over time were left to become shambles (including our national petrol company), massive migration and entry of remittances, exporting everything we possibly can, etc...) we are still just paying the interest on the debt, have not scratched the debt from the 80s and 90s at all. It forced our society to such extreme pain we ended up with at the time the richest man in the world and a country with over 60% poverty and of that 30% in misery (the ultra-poor)... It is baffling to me that 2 decades later, some of rich countries got into the same bondage structure, little by little, it's as if they are not realizing what they have been doing, or, it is on purpose.
I really enjoy your channel! Take care
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Gary drops these videos on Sunday mornings like a sermon from a pastor 😂 I'm a British-Ghanaian, and Ghana is horrendously unequal, poor, and the real estate sector is booming. The apartments being built are small in comparison to traditional Ghanaian homes, and start at $50k. Increasingly, the home owners in Accra are diasporans like my family, renting to local people, who are totally priced out. My relatives went to Ghana to work for think-tanks and paid nothing in Ghanaian income tax. Nothing works in Ghana, nothing. Even with an income of £40-50k, you're struggling for everything, because the infrastructure is awful. No water for days on end, you rely on a poly tank. You need a generator for electricity. My sister was electrocuted because there was a surge in the local grid that is poorly maintained. There's no proper road in many places. British people today have no idea what awaits them if they allow inequality to cannibalise their economy.
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I went to Oxford age 18, from a comprehensive in 1994, and it was the biggest eye-opener of my life when it came to class, power and money. It's a great experience in terms of giving you confidence to stand by your opinions, and I made a few very good friends. But I honestly never realised before going there how the rich elite look down on the rest of us. People would introduce themselves by their schools and would immediately become friends, and do a kind of bemused sneer at the few of us not from that clique. For a couple of years I thought to myself that if I had kids I would definitely send them to public school, so they could be on the 'inside'... but then I realised how corrupt and poisonous the whole system is, and I evolved to thinking that we just need to ban all public/private schools in the UK. It's at the root of so many societal problems. I think Oxford gives you a great academic, critical thinking discipline. But they are in their own academic bubble... for postgrad I am doing my masters with the Center for Alternative Technology in Wales (I am more biology/food focused), which is both academic and politically radical, and a much more enjoyable experience!
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Last five minutes knocked it out of the park. As a student of US economic history, I've been trying to tell all my friends exactly that. Since the 1970s, Republicans AND Democrats have helmed a bipartisan effort to cut taxes on the rich and gut social spending on the rest of us. Your point about Biden's Industrial Policy is really acute. Ultimately, investments in chips and green tech were less about kickstarting mass employment (which many mainstream economists still blame covid inflation on) and more about national security. Even then the investments were not large enough to come close to China's or even, in some cases, the EUs. Biden's IP as well was also very top heavy: even though there was some good stuff in there, mostly it was tax credits for corporations and luxury goods like EVs or solar panels that working people can't afford. Kamala was the epitome of everything wrong with this. All her talk of "opportunity economy" was so out of touch: most people don't want to turn their hobbies into some sort of entrepreneurial business — we want affordable healthcare, housing, education, childcare, & cost of living more broadly. Biden offered an interesting modification of the past 40 years of mainstream economics, but it wasn't enough to really matter to most people. It's gonna take a lot of work to turn the Democrats' economic policy from favoring Wall Street and Silicon Valley back to favoring ordinary, working people. It'll be an uphill fight, but more people are up for it now than ever before.
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I understand his theory on taxing the rich..like he said, if the economy is growing at 1% but the rich are growing at 5%, where are they getting the extra 4% from... The middle and working class, by outbidding them on the price of assets. Some people used to say, stay on benefit, get your rent paid, if you haven't got anything, then they haven't got anything to take from you when you are older. The care home will be paid for by the government instead of selling your house. Ive seen this happen to people. I worked, bought my house, always tried to save but i became sick and rely on pip, now the government are threatening to take it away and I know I will have to sell my house to look after myself😢. The future is frightening 😢
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I'm finishing my undergraduate degree in politics philosophy and economics this year and I literally cannot agree more.
One of the modules I took this year which wasn't one of the main ones, I picked it based on its title "economics of inequality" and God help me, it is the biggest load of bollocks I've ever had to study in my life. For my coursework, we were given a large dataset, around 400,000 individuals had data collected on income number of people in the house hold, number of children, race, education etc etc. And this data was collected over multiple years from 1970's to 2005
We were asked to write a report on the breakdown of inequality within the us with this data set, but there was no information on wealth or assets in the slightest. Instead, we had to write about how families with higher number of children usually earned less and had less disposable income, or that single parent households had less income.
Thats not breaking down inequality! Give me data on wealth, and I'll show you how wealth has accumulated in fewer and fewer hands over the last few decades, and a large driver of economics inequality. But instead, we are asked to use theoretical models to explain why we might be seeing the things shown in the data, never looking for causes, just describing whats in front of you. I can't wait to finish my degree so I can get the fuck out of economics
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Gary, I am happy to stand by your side on this endeavor to support equality. Here in the USA; we are struggling….whilst walking my dog, I’ve seen people on the streets, make shift tents of people living below an underpass of a freeway, people in bushes are found dead or dying of exposure from 120 degree heat, scratching their skin off of their body and face or even passed out with needles still stuck in their arms and the hopelessness is unbearable. Humanity has been dealing with what I call: ‘MSS’ (master and servant syndrome) for ages now…all the way back to kings, queens and peasants or surfs with lords…nothing has changed, it’s now just called business with CEO’s, REIT’s, private equity, corporations and the like…shielded by financial products, bought and paid for politicians and tax havens; the behavior continues…year after year and it’s disgusting. 😞
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Gary Stevenson, the voice of reason yet again. I have tried to deliver your message to people I know, family, friends, colleauges who have bought into this vicious circle of hatred and contempt brought on by our noble mainstream media, and it is truly disheartening to hear almost every response begin with "...but, what about" - (*proceeds to argue and regurgitate the same Reform buzz words and statements*).
I'm in my mid twenties and a hopeful outlook for the future of this country is not something that many of my generation possess, or have ever had. However, your efforts are greatly appreciated and does bring inspiration and a belief that change is possible, so, thank you.
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Gary, I've discovered your work in the last month and I have to say that it is transforming my understanding of economics and the world at large. I'm currently listening to your book because I've just recently become a father and it's hard to find the time to sit down and read these days. I think that ultimately that's been even better than reading it because you're the one reading the book, which has made it much more impactful and endearing, you deliver the book with a palpable passion and insight. You have a way with words and communication, my friend. You're truly a gifted orator. Keep up the good fight, stay safe, stay healthy, take care of yourself, please. The world needs what you have to share more than ever, and you're emerging at exactly the right moment with the right message. From Canada, with love and respect.
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This is so important. As a middle-aged (45) white man on the minimum wage and with nothing, I'm sick of the media not being able to tell the difference (or IMHO probably deliberately obscuring the difference) between two very different propositions: "Most of the rich are older, white males." and "Most older, white males are rich." The first isn't that far from the truth while the second is nonsense. Even for those my age who have achieved a comfortable living (e.g. perhaps they own their own house), that's what we aspire to for young people too, not a problem we're facing. I saw a cartoon where a rich person with a pile of cookies was telling a white worker with one cookie to watch out for an immigrant with none, because the immigrant "wants to take your cookie"- a very old tactic but effective. But, as you seem to be saying, these days they also turn round (whie holding their great pile of cookies) to the immigrant/young person/woman/ other disadvantaged group and say, "Look! Why should they have a cookie and not you? They're the reason you don't have a cookie." That one is new this last 10 years IMO. It's all with the same goal, of course: keep us fighting each other. Anything will do: men and women, white and non-whie, Catholic and Protestant, Christian and Muslim, young and old, North and South... even racists and a certain kind of anti-racists (I'm not equating these morally before I get shredded, just pointing out how the elites use both groups). They've used all of these and more over the years.
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There are some important nuances to consider here. When comparing individual wealth growth (+5%) to economic growth (+1% for the UK, +3% for the US), we need to account for inflation. Typically, individual investment returns are not inflation-adjusted, while GDP growth figures are.
For example, if inflation is 3%, then the US economy’s real GDP growth at +3% actually translates to a nominal growth of around +6%. Meanwhile, the individual's +5% return is still nominal, so actually economy did grow faster in this case. Of course the individual wealth growth depends on investment assets and could be more.
Additionally, investment returns and overall economic growth do not always correlate. There have been cases in the US where stock markets performed well despite weak GDP growth and vice versa.
That said, your broader point remains valid—it's becoming increasingly difficult for the average person to afford property and maintain a comfortable life. Rising asset prices and stagnating wages are making it harder for the middle class to build wealth, further widening inequality.
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Brilliant talk, Gary. It made me cry. Hilarious thing is, I'm from a very similar background to you, lived in a council house, single-parent family, on benefits my entire childhood. Still, somehow, my mum managed to get me an OBOE and, back then, you had free music lessons. I still play it today 40 odd years later, so that part made me laugh. Aside from that, I think the most telling part of your talk was the quote from your Japanese friend who said that the rich have small hearts. That's what we're fighting against and sadly those in charge of making decisions that could make a difference also have small hearts. Hope you come back feeling refreshed from your Japan trip.
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Everything you've said is true. Capitalism rewards those who are rich, while the rest take all the risks with very little gain: job loss, wage decrease, hunger, poverty, illness. There are certain key things human being require that don't work under Capitalism: health is one, energy and water provision is another: these things are a human right not a privilege, yet we seem to be going back to the days of The Citadel when healthcare was "privatised" and our waterways were polluted and therefore disastrous for ordinary people. Another thing: Capitalism requires the making of and increase in profits, so it needs the economy to keep growing ad infinitum, and much of what we need to keep it growing requires constantly sourcing raw materials from the natural world. The problem with that is what ecology economists are now saying: continual growth in a world of finite resources just isn't sustainable in the long term. The longer it takes for governments and corporations to realise this, the more likely we will see economic and social collapse.
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Gary just finished reading the book, good for you, you got out, before they devoured you, took your soul, sucked out your bone marrow, those bastards know what they are doing with you, they trawl the world, looking for rare people like you, knowing full well you're going to be creative and make more money for the bank, they can't do that you see! ....you made them a lot of money, you deserved every penny. And most importantly you got out at the top, and kept you're sanity, well done I salute you mate!
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What I hear you saying is not, "I believe we can", but rather, "I know we can", because everything you just told me about your direct, lived experience informs that first order knowing ... you care, and you refuse to ignore, or explain away that fundamental truth, even when your health and well being suffer for it. Many of the well off abdicate their humanity to save their sanity, most of the impoverished know that the abdication of humanity is a form of insanity. Your commitment to your basic sanity and goodness is a virtue, and virtue seems to be in short supply these days. Deep bow of respect, gratitude, and inspiration 🙏
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"The economic media... it is one of the most comedic spaces I have existed in my entire life"... classic line - and disturbingly true, given the output that I read. Oh so disturbingly, depressing true, and it damages so many conversations because it's... just not even sane to begin with. Thanks Gary, so well put.
I have tried to point this out to people also, based on the fact - the FACT - that the real world so often just does not relate to so much of the output, and they're looking at me like your example of when you asked the academic economist about his predictions: "I don't even know what you mean...?" Where the hell does one go with that, a rational conversation about it is just a non-starter, they can't even conceive there's anything wrong with that.
I like how you recognise there are indeed obviously decent ones - because yes, there are, but make sure to focus on the overarching truth that the system itself, and this is the main issue of course, is ultimately designed so badly to start with that it ends up rewarding some very absurd people, based on the perverse incentives and broader structure it has been built upon. Discussions in the public and among the economics community itself fails, it fails particularly badly in the media, and worryingly of course that's where most people's conversations about it are informed from - and they'll make decisions on this information. This serves absolutely nobody, it just perpetuates the damage to everybody, because we've definitely so many issues we need to get right in this space.
Thanks for your work to improve the conversation we can all have about it.
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Gary, I consider myself someone who is for the most part, wholly-uneducated and at times woefully ignorant about the economy, admittedly because I've been fortunate enough that throughout my life, my family has had enough income to shield us from the worst of the cost-of-living crisis. I want to thank you about the moment of clarity that I gained from you when you mentioned that money is not real assets, but instead defines who has access to the real assets, the houses, the food, the resources etc. Even graduating from Cambridge (though not for anything Econ related), I'm enough of a dumbass that the thought never crossed my mind.
Your presentation is clear and to the point, and it's never been more necessary. Thanks for educating me, and I hope your message eventually reaches the ears that it needs to reach in our government. We're genuinely fucked otherwise.
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There’s so much fiction, especially in movies, depicting extreme wealth inequality that people consume every day. In a film, it seems like a distant, fictional world set far in the future, but few realize we are heading in that direction. How many years until we reach Cyberpunk 2077, The Hunger Games, etc.? We consume these stories and romanticize them, but in reality, living under such conditions would be a nightmare.
Believing that any politician can change the situation in 4–8 years is delusional. It’s a hard pill to swallow, but it’s easier to cling to the hope that someone else will fix things in the next four years than to face the truth: we may never see a fair and functional system again, where people can truly live off their work rather than just survive.
We need to advocate and speak out before it’s too late, and I’m grateful for people like you who are spreading the truth and working toward real change.
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Gary, I hope you realise just how necessary you and your voice are.
I've said before, since scraping a pass at A-level economics many moons ago, but being heavily involved in finance for SMEs most of my working life, has allowed me to understand micro and macro economics.
However, though I've had plenty to say and discuss over the years, re wages, house prices, etc, nobody has ever put it in the relatively simple terms you do in this video.
Your voice and campaign is invaluable. As you've said, nothing will happen overnight, but if we can all spread this education, we might just be able to fight back and future generations might just have a better chance.
With you all the way mate!
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Love your stuff :)
Totally agree. Born into the slums & poverty of a northern England
industrial city in 1950, I was one of the 'fortunates' to live my 73 years
in that 'golden period', having had a beautiful life in Australia for most
of my time. In 1980 I stopped watching TV & reading newspapers as
I increasingly understood what was happening both in the unseen
background of that time and to us working class people. That being
the fact that the availability of 'more work, money & goodies' changed us.
We became conditioned by the advertisers etc to believe 'happiness'
meant having more of everything, just like the rich! But, that pretty much
changed the shared common life values we had been brought up on,
putting us into a world we did not understand nor knew how to navigate.
I believe this period and its experiences, literally destroyed those 'old values'
and therefore the communities & individuals that onced lived by them?
Add in more recent times of the online worlds we now frequent, the high
levels of immigration (that eventually dilute the culture) creates an
environment & sociopolitical atmosphere of division, self interest, hatred,
anger etc, GB in 2024 basically.
There is no solution to this. Today is the outcome of a period of changes
no one could have foreseen and understood the ramifications of. The only
pragmatic and rational solution would be as you say, to limit those
enormous economic disparities from existing, but, it's too late!
Those atop the pyramid now, not only determine how economics
unfolds but they also learned how to corrupt/own/manipulate every
facet of so called democracies (govts, civil service, national infrastructures,
police, education, law, local govt etc etc etc). The pyramid sitters not
only own all the money they own pretty much every facet of contemporary
'civilization'! There needs to be one mother of a global collapse that 'may'
allow for a rebuild that could perhaps, rebuild using those old values
and structures of common sense etc :)
There seems to a serious collapse of the global economic systems
coming, but will it be enough?
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Dude, i heavily agree about the opening of a patreon or similar. Imo, noone can ask of you, the person literally helping to create the movement almost full time, to fund it all yourself. The thing we are trying to create here, (change) HAS to be bigger than just one (even millionaire/billionaire) guy, in everything, the funding obviously included. Even the world's "richest" person, (idk, nor care who that is at the moment, the point stands for now) could put all their might and wealth into solving inequality, and it would not be enough, because there is just so much wealth "up there" with the rest of the 1-5%, that for change to actually come, we HAVE to pool together and just eat those costs of getting there. Great content, great person, regret not finding you sooner, happy i've found you at all, get that much needed rest, and retain those creative juices; We are going to need them, in time. Wish you a great time in Japan, and can't wait for the return and the new ideas. (I am sure they will come.)
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Thank God you're back, Gary! Your niche economics nourish a far bigger gap in The Market than even you might think. It's vital us "ordinary people" are educated in getting our heads around the scale of the crisis and the extent to which we're getting $hafted by 'The System'. You've persuaded me - convincingly - with your accessible arguments, that we're in a downward spiral that defines exactly what un-sustainability looks, smells and feels like. You've drawn my attention to the patterns and why the extrapolation of these economic trends is actually quite terrifying. I voted Labour. What choice did I / we have to kick the "pantomime villains" into touch. But the abject sense of disappointment in Labour's performance is suffocating me.
Give yourself some credit. Yeah, okay, you don't like talking to camera. And the fame thing is hard on your nature. I get that. Frankly, I respect you even more for doing what you're doing in entering the fray. But you're doing an incredible job. I want to thank you for that. I'll be subscribing to your Patreon (if you're absolutely sure it's the right platform and their values align with yours).
I've got one big question though. I'm a member of The Cooperative Party. As I see co-ownership as so much more meritocratic and meaningful than 'state ownership'. Maybe 'middling Marxism'. But they're mired inside Labour and their ideology buried. I'm not exactly sure myself... of where you stand with this important consideration re political spectrum.
Are you??
Because you've a bona fide movement-in-the-making here. Depending on your definition of success, I suspect this stuff's going to count.
Either way, you need to brace yourself, Man. Because in 5 years time, you're either going to be Chancellor, or maybe even the next job up!!
Keep the faith. I, for one, am with you.
✊
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Thanks Emile - it is my mate Simran (AKA Mohan Media) that does all the camera work/editing, so I will pass on your compliment.
I would say that some of the basic things that I learnt in undergrad (which was at LSE, not Oxford) were useful, although it was still quite over-mathematised. The 2 year Oxford masters was almost completely useless in terms of the macroeconoimcs that was taught.
What WAS useful from both degrees was that it taught me what was missing from economics teaching - an understanding of class diversity, an interest in "the economy" as it affects ordinary people. Understanding the total lack of teaching about inequality definitely helped me to understand why the market predictions were so bad post 2008, and that helped me to be confident in betting against those predictions. So ultimately, the education WAS useful, but more because it taught me what economists were NOT looking at, rather than teaching me that much about the actual economy.
If you want to read more about economic theory, and you haven't already read it, check my website www.wealtheconomics.org
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"Good luck, and thank you."
Something about that ending sent chills down my spine. From what it looks like, even if we fight to prevent it, a "collapse" is inevitable.
To be human is to fight against it, regardless, and give your all to avoid an outcome that may be beyond your own individual ability. To remain sane is to hold on to the hope that with your efforts, others will remain sane as well-- inspired to do the same as you.
To remain a David, having faith and confidence in what is good, righteous, and just, against a Goliath that would otherwise surely defeat you.
What would you do? This is what you should do, less what seems inevitable become absolute and all encompassing.
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@garyseconomics They really are keen to get people's houses; perhaps you will recall the spate of TV adverts from various companies selling 'equity release' - did you know you might have loads of money trapped (trapped! the horror!) in your home? - with images of smiling OAPs, and cartoon houses being upended and shaken and gold coins and banknotes falling out the chimney.
Of course, 'equity release' (sounds nice, right? who doesn't like equity? or release, for that matter) is actually an utterly opaque way to refer to a loan secured on your home for which, since you're an old codger, they will generously eschew seeking repayment seeing as they'll get the house in short order (or alternatively, if you're old enough(!), to selling your house with the proviso you get to live in it until you peg out).
And all that advertising didn't come cheap, I can tell you, so someone's doing well out of it...
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Gary, if you look at the literature from Arno Gruen, you will find another layer below the greed for wealth and power. It's all about a broken relationship between parents and their children. We all want to believe that our parents always love us unconditionally and they will never fail. But they do, around 30% of all parents, harm their kids in their emotional growth without knowing, because they learnt it from their parents. The pain caused by that, feels like dying, so they have no other choice than to split off that pain. This is a quote from Arno Gruen describing the consequences:
"But if pain is excluded from consciousness, then that pain becomes the foundation of a revenge against pain itself, which finds its expression in the destruction of man and nature. Therein lies the root cause of our illness, and not in the economic, political, and religious ideologies that we use as a pretext for our destruction."
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I agree with every word. I got PhD in econ, ”no distortion at the top” and all that. Early on into my PhD tried to ask questions about corruption or inequality, and considered to do some research on the topic, but profs looked at me like i was a nut and advised to stick to conventional topics, e.g. health or labor econ or mechanism design, ”otherwise it might be hard…” and yeah they are very vested in their own research and the theories its based on, and as a junior, u cannot argue with them, u can try, but u tend to get destroyed one way or another and Yeah they rich, some extremely esp. in US… there was a paper on how most well established economists come from priviledged backgrounds and its hard for outsider to stick with this career. So, naturally, im out.
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@garyseconomics Been dipping in-and-out of your videos since the first one last year Gary, and yeah, pretty surprised you're not up in to the 10s of thousands per video yet, which you should be at least!
A few of suggestions about scaling up (which might be useless, but still).
1st - People like pop culture. It's a good pull in for what could be seen as a boring/complicated subject (economics) to frame it around something people already know & like.
A few EGs on this
- The Big Short: What it Got Right & Wrong and What it Says about Society.
- Hollywood Accounting: How a Billion Dollar Film Actually Made a Loss.
Both of those might be a bit out of date and overly covered now, but stuff like that with the right SEO generally does pull people in. And, this sort of thing obviously isn't what you want to do, but it's the means to the end sort of thing.
2nd - Interviews. Can't comment on who you know or what circles you circle in, in terms of the public figure talkers on economics, but if you could get a high(ish) profile person to agree to a 10 minute conversation around the content of your current videos, that would help. Making it a regular thing more so!
I'm shit at networking myself, but just today Owen Jones (yes, people have strong feeling for & against him!) retweeted your newest video out. Maybe send him a message that you'd be free to talk about economics. Being on the BBC and other radio is one thing, but people our age and younger only engage with the online world more so. They won't be subscribed to these historic establishment outputs so won't hear you to begin with.
3rd - Like you've got a friend doing the video side, see if you can find someone who knows what they are doing on YouTube to help with the SEO side. Personally don't like the existence of unpaid interns, so asking a friend to spare a couple hours is preferable, as they know you and it's less a job and more just helping out a friend.
I suggest this as the majority of 100,000+ subscribed channels on here have someone onboard either just specialising in this, or it's apart of their job along with something else. Even those in the 1-10 million sub accounts have to hire people in this role as YouTube, and the internet, is ever evolving.
Had a couple others but this is long enough!
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Hey Gary just got done with your audiobook and man, I couldn't put it down! The concept you talk about, with the ultra-rich squeezing out the middle class by shrinking assets, it's a real eye-opener. We've gotta figure out a way to stop that train wreck!
For us regular folks, maybe the best bet is to try and find cheap rental properties, toss our cash into index trackers, and cross our fingers for that sweet compound interest magic to kick in. Hopefully, down the line, we'll have enough assets to break free from the grip of the wealthy elite.
In terms of house prices what if we shook things up with a massive housing building programme ? Could that help stabilise housing prices, at the very least?
It's kinda crazy how in British media and society, if food or fuel prices spike, it's bad, but when housing costs soar, it's somehow celebrated. Housing is a primary need. You only have to look at the French Revolution to see what happens when appress the poor for long enough..
Anyway thanks for writing what is fantastic book and making great content on here.
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To those of you asking what specific actions could be taken- I gotchu fam. Ive been trying to answer the same question based on deep dive research I've been doing since 2020. Im US based so some terms may not translate to the UK but hopefully its still understandable. I think calls to action range from the major, like being educated in the US financial system and macroeconomics, to the minor details like which brands to buy from and how specific tax policies work. Also keep in mind there is a difference between action while playing the game by their rules, and action playing a new game by new rules. Also, I am not a financial advisor and this is not financial advice. Here's a starting list, although I’ll admit these points run the gamut between very general and very granular:
As Gary pointed out toward the end of the video DO NOT ENGAGE WITH POLITICIZING THESE ISSUES. Every family thanksgiving that ends in a political argument is a loss to the ultimate mission and exactly what the ultra rich want and need more than anything: DIVISION. Treat others with respect and learn how to disagree constructively. No infighting.
-The current financial system takes great interest in securing your debt as an asset. Insane credit card rates, “house poor” mortgages, the rise of subscription-based payments, are all designed to keep you paying and increasing your debts. Thus, the first thing to do to secure your financial future is to eliminate all personal debt.
-Be extremely weary of what you hear. Every day that new awareness around the ultra rich is created, they will also create new narratives to spin, disrupt, target, slander, discredit, and subvert our strongest voices and dialogue. Not to seem conspiratorial, but the mainstream media is owned by the ultra wealthy, because they know its influence (Jeff Bezos owing The Washington Post is just one example of this).
-As Gary also said, follow the money. Someone in congress changed their tune overnight? Who’s lobbying behind them? Is it odd that someone would stay in office well after typically retirement age? What boards are they on that fuels their insider information for profitable stock market trades? Does a promising young political activist seem to lose press coverage and airtime? Maybe they’re saying something the ultra rich don’t want you to hear… The ability to be skeptical and think critical can give you x-ray vision here.
-Become a defensive consumer: most everyday products you buy are brands that are owned by larger conglomerates that are publicly traded and therefore owned by the super rich. I know people aren’t making organic local toilet paper, but by buying local goods and services from local small businesses in your community, you greatly enrich local economies and at least delay the siphoning of money upwards in the system. Ian Carrol (he’s a little controversial but ill still give him some credit) has done some incredible videos on who owns the products you see in every aisle and the products you can support instead.
Resist succumbing to narratives that using triggering keywords such as “socialism” to discredit an idea. Bernie Sanders is often cited as a socialist, but I think more accurately is anti-oligarchy. Also, for the American reading this part of enlisting in the US armed forces is a guarantee for housing, education, and employment- what’s more socialist than that?
-A few years ago I would’ve said max out your 401k/Roth IRA if possible but there have already been data breaches and King Elon is interested in your information as well. As the great comedian George Carlin once said “and you know what? They’re coming after your social security money,” and “its a big club, and you ain’t in it.” Still, if you can find safe vehicles for investment and compound interest, consider it.
-If you have brokerage accounts, you may want to opt out of any stock lending programs as it is suspected that the US stock market is riddled with IOUs and “locates” (meaning fake shares) under the claim of “liquidity” which is really just financial crime.
-The ultra rich will not only break rules but change the rules. This may require some savvy research, but contact your local congresspeople and demand clarity and explanation for sudden rule changes.
-I will not begin to promote or criticize cryptocurrencies as I feel I do not wholly understand them. Be cautious of any entity that promotes a specific coin, as many are destined for personal profit: Trump Coin, Melania Coin, President of Argentina Coin, Huak Tuah Coin, and other less obvious traps. The only related concept that I can agree with is the decentralization of banks and removing power from the federal reserve (which in the US is privately co-owned by the largest banks believe it or not). To drive the point home, the federal reserve has the ability to create money and increase the money supply at will (which is a primary source of inflation like Gary has mentioned). If this ability to create money out of thin air is true, then why would the government need to tax its individuals at all?…. Meaning, taxes for the common people are merely for appearances and to make you believe that taxation is necessary for the system to function.
-Know the platform you’re communicating on. Think you’re commenting on a YouTube video? Just know that they’re owned by Google, and google is owned by the ultra rich. I dont know what the status behind other forums and “grassroots” platforms are such as discord, or telegram, but Reddit was just recently publicly listed on the stock exchange, which means that they are know beholden to their board of directors and investors in order to, you guessed it, “maximize shareholder value.”
This list is not perfect by any means but hopefully it can incite others to pause and reflect on how their actions plug into the greater economy, how the current financial system in the US currently works, or how they can start to have actionable steps to head towards the greater good. Above all, I truly believe that treating eachother well is the bedrock of meaningful change. To echo Gary, there is no blue or red, no left or right, only the ultra-rich versus EVERYONE ELSE.
Also, to Gary and his team: while I agree with Gary’s points I realize he may not agree with mine- please reach out if you would like to discuss this comment for any reason.
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Gary, just discovered this channel, it's sick.
One thing that I don't quite understand, maybe you can touch upon. Most money creation is privatised. That is, most money (97% according to BofE) in our economy is created by banks in the forms of loans ("credit creation"). Does this money creation devalue money? Or, as the money is "destroyed" when it's paid back, is it non-inflationary?
Or, does it depend on where the loans are going. So, if the credit creation goes towards productive investment - a new mine, building houses, a new technology in a factory etc. - it is non-inflationary. But, if it goes to consumer purchases or asset purchases, it is inflationary?
One thing I noticed during the pandemic was that the super rich were borrowing loads to leverage their stock purchases. That's insane!
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@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.
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Hi from Italy Gary. Fortunately for us Italians, things are quite different. People tend to prefer to live in small towns and, as you probably know, Italy is mainly formed of small historic cities such as Siena, Ravenna, Arezzo, Viterbo etc.etc.
I live in Rome, which is quite a large city (nowhere near London or Paris), however, strangely enough, it's still a livable city and prices of houses are still affordable and not only for the very rich, such as London.
BTW, I remember reading an article (about 40 years ago) by former Prince Charles, in which he was predicting what would eventually happen to London. Although he was strongly criticised, he was right.
London has been stripped of it's soul and it has become the playground of the incredibly rich. Skyscrapers being built for foreign investments and then, remaining empty, whilst the "real people" have no choice then to move out.
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Big Up Gary thanks for what you're doing, behind you all the way. Love the clarity and simplicity of the message, think that's crucial. I think for your well-being and the well-being of your movement, link up with others who are making revolutionary moves, and join up the dots on economic collapse and the collapse of the natural world! You surely know about it but it needs saying - we can't be healthy or wealthy on a dying planet, even if we tax the rich, what will we inherit, ashes, dust, rising seas. I think the government also knows about economic inequality, you say they don't see it, but I think they do, they are just bought up puppets, they belong to the rich. What about this - We the people, the land, the animals, the air, the water, must unite and turn away from their power games, and step into our own power, the power of the earth : we need to take the land back! Water and food is power and will be more and more in the years to come. We tell them, tax the rich, and give the land back, or you will have revolution on your hands. We increasingly have nothing to lose.
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Pushback is to be expected from those interested in keeping people ignoring the inevitable effects of not distributing wealth fairly enough to keep those mostly producing it just surviving, nevermind thriving.
What people don't really understand is that this is nothing new.
I was reading a piece by Gore Vidal from July 1961 about the willingness of the "Conservatives" in the USA to embrace the ideas of Ayn Rand, who argued that altruism and justice were immoral, and that the Cult of "I" should replace Christianity, and other religions, and values.
Then I watched Philiosphy Tube's latest video that described how the powerful encourage those they need to keep compliant and cooperative in keeping their gravy train running, to see those harmed by their hoarding and exploitation as not worthy of being cared about. The people, lives, and livelihoods ruined and being cut short by wealth inequality are to be ignored. Or not grieved over.
In that, Boris' Johnson's attitudes towards the deaths in Covid were not an aberration. His response to the real damage done by Brexit to business and people's, was not the ramblings of a functional alcoholic - the only personal characteristic he shared with Churchill - but his real belief.
They want us to stop feeling that injustice is wrong.
That wealth inequality to that extent means that the damaged caused is swept under the carpet, devalued, or seen as not worthy of being grieved at it is destroying the capacity of people and their families to survive, is not inevitable, natural, or virtuous, but a deliberate and calculated harvesting and hoarding of asset wealth to benefit the few. It is the world of "Soylent Green". (Google it.) Where those worthy of consideration as determined by the needs of the powerful are treated are seen as worthy of our consideration, and are granted privilege, whilst those who aren't, are marginalised, seen as inconvenient problems, and their suffering is ignored.
This is nothing new. Class and Caste define who gets looked after. And who ends up rioting. And who is blamed and scapegoated.
The current form comes from the failure of Neoliberal economics to maintain the postwar economic settlement in the West, and to ignore the social, cultural, economic, and political dislocations and insecurities caused by it, occurring everywhere, and all at once in this present time. People everywhere, except the winners in this rigged game, are pissed at the outcome, and rightfully so. But the wealthy winners, are largely are using their profits to prevent the pitchforks coming for them. They know their fantasy has crashed to earth, to the extent it has created more instability and more frictions. To the extent the fallout is capable of damaging the earth. But, like any addict, they're not ready to give up. So they will not admit their failure, but instead, will double down. Hence, there's more political polarisation, because when people are busy hating each other, they don't notice their pockets being picked.
It doesn't have to be that way. Capitalism can work in ways that focus on efficient and effective distribution of asset wealth and resources, instead of beggar thy neighbour. It can work in ways that are safer, cleaner, and that can keep the planet in habitable for humans. But we have to do capitalism differently.
Capitalism has to prioritise the basic needs of people and communities before profit. Simply, profit returns to being the means rather than the ends.
Capitalism has to pay its way. Simply, the costs of doing business have to be borne by those doing business. Socialism for the rich, and unmitigated capitalism for everyone else is no longer acceptable or desirable. The rich should clean up their own messes, such as pollution, and societal and cultural impacts of their activities.
If Capitalism did only those two things, wealth inequality would eventually disappear. Wealth would not disappear. On the contrary, it might even grow in size, with more people being able to access the means of building it. It just would be hoarded by a minority.
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First, thank you Gary! Amazing videos, amazing work! Keep it up!
The situation is similar in Sweden, where I live. For something like 20-30 years we've had a slow transfer of wealth from the state to the rich, speeding up during covid. For most of that time we've actually had social democrats in power, our Labour Party. They slowed the trickle, but it didn't stop. And what has happened? We now have basically fascists practically in the government, being the puppet masters for a conservative government – the first really conservative government for something like 90 years. And of course this election a month back was one of frustration. The fascist party, the so called Sweden democrats (who hate when you call them fascists), are saying things have not improved, it has even gotten worse – and it has, for many people! They say we've lost something – and maybe we have! It's just that they say that's because of immigration and lack of national unity, which is bollocks. It's because of what Gary says! The wealth slipping through our fingers. We live in one of the richest countries on the planet, yet many of us feel poor. I'm a historian, I know a wee bit of history, and like Gary I'm terrified of what might happen in the future if we can't turn this around. The Sweden democrats got 20-something percent now. What happens if they get 40? Or even a majority? We're talking about peoples' lives here.
Long winding comment, sorry about that. Anyway, thanks again, Gary! Keep them coming!
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Thanks for your videos Gary. It is indeed strange times, especially comparing ourselves to our parents.
Living near London, after working there for over a decade, and with a 2 year old, we are just about to do the mortgage jump. For us, we have no family connections here, no roots, and frankly we started from ground zero during covid times in terms of our own ltd company. Our main goal is to leave something for our little one for her future. Hence we are about to take this massive debt (probably a 30 year mortgage)
I can understand what you mean by actually using that money to make more money, but perhaps it is our narrow mind, or perhaps it is our lack of wanting to take risks that we are going down this path. Regardless, I am worried every night about the future =)
Keep up the good work, there is a need for videos like these. Love your style.
S
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Studied at the LSE - not economics, but it kind of seeps into everything there, irrespective of what you study - and it was pretty eye opening; would have been 2004-2008 so maybe a similar time to Gary. What I remember the most was having one of my best friends who was doing maths and econ, describe to me what he was studying in his intro to econ course - core principles, parteo efficiency etc etc, hearing some of what was being described, and literally thinking to myself 'why is that your starting position, why do you think that?'. It was basically presented as 'this' is how the economy works - these are the models and the maths, memorise it. But as someone from a non-maths or econ background looking in from the outside, it sure seemed like (a) there were actually quite a few value judgments and assumptions underpinning a lot of the structure - which weren't even being identified as judgments and assumptions, never mind questioned as such, and (b) there just didn't seem to be very much critical engagement with what was being taught - you were basically memorising the 'how' and not really challenging the 'why'. So to Gary's point - there were certain aspects that just seemed mental to me, like 'what do you mean it doesn't matter how wealth is distributed in the economy?'. I mean if you think back to classical political economists like Adam Smith, David Ricardo, or economists/philosophers like Marx - at least as I understood it, basically ZERO engagement critically with that kind of thought or debate. Exactly like Gary said - there just seemed to be no curiosity as an undergrad as to WHY what was being taught was true (in a subjective sense), what the impact was on real people, leading real lives, and whether the way the economy was currently set up was a good thing, or a bad think, and what a 'good' economy should probably look like. Even more intersting of course graduating in 2008 when the house of cards came crashing down, and so I'm told by some of my friends who graduated econ or maths and econ at the same time, some of what they'd be taught as near immutable 'truths' just a year or two earlier, were completely discredited and subsequently killed off of future courses. Sad but true...
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What I love about your presentation is how down to earth you are, it makes me proud of you, you're one of ours... What you say is corroborated by Nomi Prins, who worked for Goldman Sachs and is now an author.
In 2009 Bernie Sanders interviewed Nomi Prins. He told her that as a member of the Budget Committee he spoke to a guy called Hank Paulson, a banker who was also in government; he said to Paulson: people were really struggling, losing their jobs, income decreasing and a growing gap between the rich and everyone else. He asked Paulson how he thought the economy was doing. Paulson said it was doing really good. Year after year he heard from the Bush administration that from their point of view the economy was doing fine.
He asked Nomi Prins to explain how they could think that, when people were struggling amid a looming financial crisis.
She replied, "Because for them it was great, and that's the problem."
Here's the link to the clip, check it -
https://youtube.com/clip/UgkxUwet-rLOkf3NFaJE4uk7ANAFeDniO-nz
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You're not wrong. While I think there's flaws in their logic, I think for most graduates they generally want a happy and comfortable life, so they want opportunity and a well paying job, which brings them to London. For those of us who grew up in or near London, we're keenly aware of the millions of professional jobs in central London. Sure, there are good jobs elsewhere but there isn't the same opportunity, or the impression of it at least. And there is something to [that impression]. That said, I'm not fully convinced by this vision of London people have. With increased living costs in London (I'm looking at you, mortgages, in particular), I don't think salaries often compensate proportionally for that. I hope though, that with the rise of remote working that this can change. One day I might be able to afford to live comfortably in London, but in the near future it's not viable. I don't have £100k stuck between my couch cushions for a mortgage. So I'll look to buy a flat in the East Midlands at least in the shorter term. I think living outside of London, and even its commuter belt, is underrated and more people should consider it
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Gary, Gary, Gary, I've been devouring your podcast, because you speak with such clarity, experience and knowledge... But one thing I was unclear about was this whole notion of oligarchy and the mass accrument of wealth and assesses... NO I GET IT!
Looking at America an Elon musk, I get it... It is truely, frightening, devastating and clear... That what you have been highlighting in your podcast is being enacted in broad day light.... You, unfortunately are spot on, you are like a modern day sage who see the future in economic and social inequality... Now I understand why you were the trader you were/are!
Thank you for the time and effort you put into the work you do on social media, it is indeed, in my opinion, one of the most important information outlets there is.
I hope you and everyone that knows you have a peaceful and happy yule time and new year.
Your a good man
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In America, in TX, I've always understood the Psyops' political hate/immigration plays this emotion. It's even more disturbing that the ones paying for this initiative are the ones abusing the immigrants. Study after study shows the evolution of what "we," will do - job, as opposed to what someone else will. Immigrants here legally for the season are disturbingly abused, then those that aren't even more so. This covers agriculture, construction, hotel, landscaping, home services and much more - all, that the current generation chooses not to consider. This is a global issue, China included. But every election cycle, those that use it the most sound the alarm, a buzz word, for the right, or? Thanks again.
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A week ago I'd never heard of you,just happened to click on one of your 'shorts' as it seemed to align with some of my own thoughts,which then led to finding your channel,and then subscribing,followed by a few hours of going through your videos,then ordering your book. It arrived Tuesday and i finished it yesterday. The message you are delivering,the education you are providing, your message,is way too important not to be heard. We need to ramp up your subs so more people can have access to the knowledge you are freely sharing. How something this important has a little over 150k subs when you see some of the garbage that attracts millions of viewers is beyond me. So,ive decided to take your message and spread as wide as i can,if i can tell 10 people and hopefully direct just 2 of those here,and they can do the same,then (and correct me if I'm wrong cuz you're the math wiz 😂) then with that 20% strike rate,compounded, then my original 2 will generate 62?
Now,62 doesn't sound a lot,but.....if 20% of your subs,call it 30000 people,all managed to do the same with the same outcome, then we're talking aboit over 1.8M!!! Anyway, it may well be an optimistic outlook,but,I'm gonna do my bit,why not join in and see where it goes 😊
Gary,love the channel,love the book (think I'm gonna read it again very soon) keep up the good work,what you do is way more important than at least 90% of the crap on YouTube, keep spreading the message and I'll make sure i do my bit. Cheers 👍
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@haydnlawrence8167 You gotta remember that money isn't real assets. If I give you £5, and I give a rich guy £100, and the price goes up by £20, you got poorer even though your bank balance went up. It's the difference between nominal pay and real terms pay.
Scale that up to the super rich - when they get more money what do they do with it? They buy assets - like houses, buildings, cars, jewelery. That pushes up the price of those things, because they're happy to pay more for them.
You got a few quid more, but the price of everything went up above what you got paid. So even though your bank balance is a bigger number, the rich got richer, prices went up, and you still got poorer because you can buy fewer assets.
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Hi Gary, amazing content!
I love how leftist ideas are made more accessible to the average Joe. In the past 50 years socialism and communism have been demonized by capitalist society without really been given any other reason apart from "there is no freedom of speech", but people forget that Scandinavian countries are also ran, quite successfully on a socialist model with proportionate taxes and fines - if you get caught speeding in your Mazda you pay off times less than the guy reving his Lambo.
Being a foreigner in the UK who moved here in their mid 20s (currently in the late) , I also come from a poor background and have an economic education from a post-communist state - Bulgaria. The early 90s there were a period of privatization and the exact thing you are talking about happened - wealth concentrated in the hands of a few individuals who bought government-owned factories, buildings, facilities for pocket change and are currently trying to buy out normal people out of their residential properties through actively advertising "hassle free" property sales below fair market value.
The reason why people in Bulgaria manage to survive with a minimum income of about 400 GBP monthly is that the rate of homeownership in Bulgaria is very high (normal characteristic of Eastern European countries) - Upwards of 85%, about 20% higher than the UK. Owning multiple properties as well as farm land or forests is not uncommon for average people there including myself. The tricky part is very little of that property is lucrative and can generate any passive income - but it creates the most important aspect of wealth - a mortgage-free / debt free life.
Although practically impossible to build a massive wealth now, there are still ways of becoming wealthy for average people, so I hope whoever takes the time to read this doesn't lose hope :) Eliminate debt (paying into someone elses wealth) and compound returns (generate your own wealth). Takes a while - but eventually works, and works quicker for people that can get creative with acquiring money.
Best of luck everyone!
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I have followed Gary for a year now, and I have learned so much. I want to thank Gary for bringing education, wisdom, and most of all is knowledge, experience, and un conditional caring for our people, our country, and our society. He is a hero for the under lass,working classes, the middle classes, and he has done amazing spreading the word of inequality, uneven distribution of wealth. We need to keep going, keep supporting him to support our country to make a change in society that is fair to all of us. He has no hidden agenda. He is a rich man he made his money from hard graft. His passion to change things so we are all better off is incredulous. A genuine man who deeply cares for our people and country , I want to personally congratulate him and ask if we can have more conferences in person around the country. I missed the manchester one but would love to attend and bring my friends to his talk shows. Thankyou Gary an inspirational man of the 21 last century. Modest and inspirational one of a kind ❤
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So, Trickle Down Economics is behaviourally and economically naive, because the dominance of financialisation - the growth in private assets vs public assets because of privatisation - means tbe wealthy will just hoover up more low risk assets - like stocks and shares or houses - instead of higher risk assets such as investments in industry. And that increases costs for ordinary consumers, and deprives them of the basics low risk assets they need for survival. Combine that with policies that myopically focus on preventing wage spiral inflation, Trickle Down Economics 1) effectively kills the goose that lays the Golden Egg - the purchasing power of wage earners - that drives economic growth; 2) disincentivises both the wealthy and corporations from investing in their businesses, or innovation to increase productivity, thereby encouraging chronic low productivity, relative to other countries; 3) Divests the State of the ability to intervene and i) maintain the infrastructure needed for economic growth, such as education and healthcare; and ii) neuters their ability to use tax policies to incentivise investment in higher risk assets needed to grow the economy.
So this is impoverishing middle class and working class consumers to benefit the already wealthy.
Welcome to the New Precarity, in the chase to the bottom. If consumers can't buy, there will be no real growth. And reducing their wages is killing off their ability to buy consumer goods, either outright, or on credit, which accounts for the fall off in consumer spending, and the closures of businesses dependent on consumer spending. Trickle Down Economics is the Agent Orange of real economic growth, because it kills off the bulk of consumer spending in the long run. It's a form of economic colonisation, that will enslave and impoverish the people who have no wealth.
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I totally agree about unity!!! Everyday I see more and more division of the people over an array of subjects.. like rogue princes, racism, sexism, immigration, transgenderism, television presenter fallouts, so much bs I didn’t choose to be subjected to.. I’ve been following your channel for months and months, but you’re content never pops up.. instead, I end up getting distracted by these topics of ‘public interest’ .. alongside the make-up videos, met gala outfits, and hollowood plastic surgery gossip. Aaaahhhhh! I confess, I fall down the hole, and I don’t even want to! The algorithm is peddling polarisation and dumbing downness. Good old divide and conquer is the outcome.. I’m glad I can see it for what it is- basically distracting me from really using my brain! but whilst blindly floating along the mainstream, I’m inevitably part of the problem. I’m going to make a point of liking all of your videos, and hitting the notification bell! I totally agree about unity, I think you’re great! Nice one.. respect! 😎
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I Love your honesty and Wisdom. Yes, you are Correct. My father came from a working class background, very clever and went into futures. trading.... yep.... guess the outcome. He died in his early 60's (super fit, no smoking drinking) from cancer which I believe was triggered by the massive stress of losing a huge amount of money during the late 80's / early 90's crashes. My mother then attempted suicide and myself and my 2 sisters were homeless due to bailiffs taking our house and belongings, all of us on meds for depression, the loss from my fathers trading was catastrophic.. Capitalism is EVIL. But, that's how it is and has been for millennia. If you are not a rich kid, Either be grateful for what you have, relationships, nature, clean water blah blah (but this is a reality, if you live in a first world country, you are already in the top 2% wealthiest... crazy yeah...) and all the other things that make a simple life beautiful. OR. put your ideas into action via taking massive calculated risks, or, win the fcking lottery.
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Thank you Gary. Thank you. I am sharing your videos with people I know. We will keep spreading the word. I have been pondering our economics and my place in it (but not from your places high or as low) for 40 years. I still wonder about my next steps. IF I have something to leave my kids/grandkids, what would that be? Land? Crypto? Other? If things fall apart, what would make a difference? How does it work? How is it changing? What is my role, here and now? I've lived modestly, aware of my human footprint, and trying to be conscious and responsible of our planet and resources. That feels right to me. I do meaningful work that contributes to people and a better world. But in my 3rd trimester of life, I still ponder on many aspects of money (energy?) and social contracts and economy, meeting my needs for the rest of my life, will I have enough and IF there is something to leave how do I do it in a way that is empowering not enabling, in a way that makes a positive difference and better people. I wonder.... And, I thank you!
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The message/video was heartfelt, your concern and involvement as well. I share with my wife several times daily/weekly how fortunate we are, a meal, a home and more, then expressing the disparity/hardship people are experiencing ...globally. We are retired, work hard still, but care. I/we have always helped others. without being asked for a reward. We have been belittled for simplicity, don't care - but not waiting for collapse. If that happens, we may be lost, unlike those with $$ or their churches(which we quietly, not a weapon) support. Excellent video, wonder though. Austin TX
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Something very powerful about this message is that it brings together people. It doesn't matter whether you're a part of the Zeitgeist or conspiracy mindsets, it transcends that, so it also trandscends attempts at control and misinformation. It's just maths.
It doesn't matter what face there is. It focuses on the issue, offers an easy to comprehend way to solve it, and has a good model for making predictions that will undoubtedly be proven, the only way this will be beaten is by silencing the voices - Which may have hindered, but never halted provable models, just ask Copernicus.
Expect resistance, the louder we get the harder it will become.
But I think you're right. In the end, we will win... Ecxpet, no ifs from me.
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I wasn't going to watch, as the Prisoner's Dilemma is tired and flawed, but knew Gary would have an interesting take.
My irritation with game theory a la Nash came partly after discovering it through sociolinguistics and Grice, Searle, Quine et al. The conversational, and social, aspects are more complex and a lot richer. So the Prisoner's Dilemma feels static, crude, badly designed, and has internal correlation problems. It is no more a study of economic behaviour than sitting on a train facing backwards looking at a clock as the train pulls away at the speed of light is a study of the theory of relativity. It's stylized, figurative, and partial. It's also pointless. Literally it has no point, and no utility. A better take is Roger Myerson's work on multi-stage games with communication, which he uses for auction design - seems simple, but is fiendishly complex to design ab initio. Through stages and information, players adapt and adjust - does everyone know the same thing, are our incentives aligned, is everyone working alone, is cooperation possible, is there deception, under what circumstances is a result acceptable rather than the best outcome? And so on.
Myerson won a Nobel prize for that work. Not that anyone seems to remember it!
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Like having Jeremiah come out of the wilderness, this; or Isaiah, "Is this not the fast that I choose: to loose the bonds of injustice, to undo the thongs of the yoke, to let the oppressed go free, and to break every yoke? Is it not to share your bread with the hungry, and to bring the homeless poor into your house?" 58: 6-7.
I heard this voice, here, and am moved to tears, and a quiet, deep anger and sorrow. And winter is coming. Thanks for your insight. Tim Long, just up the hill from Lock and Dam 15.
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At the point when the word 'Rishi Sunak "worked hard"' I had to pause the video and type this comment. To think that is to blindly follow the cultural ideology that not only are people rich because they deserved it, but that they worked hard for it. How hard is it to be born into wealth and priviledge? Answer: it is as hard as being born into poverty. There has been no epoch in human history where the "hardest working" were ever given an equal recompense for their efforts. Those who struggle the most are those historically are awarded the least. Did the coal miners see their fare share of reward for their hard work? No, they saw a comical, hearltess destruction of their communities and their efforts, and they were dirt poor whilst doing so.
Gary is a pivotal, much needed media figure because he can go in front of these priviledged people and shine a light of their delusions. The reason why their is so much sustained inequality and poverty is because of the comfort and ignorance that class priviledge brings. Garys economics are not just wishful thinking, they are objective, undisputable conclusions from the study and understanding of the illusory and destructive system of economics that presides over and controls every single person on this planet. If you do not want to see the end of poverty, not even global but nationally, then how can you claim to have anyones interest at heart than your own? Better still, how can you even claim to have humanities interests at heart? That is why I sternly believe not in the "should" but "must" of Gary's efforts to enlighten and change these oppressive systems. How can you disagree with Gary here and claim to be kind, or better yet, human?
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Thank you for this! I have found myself wondering about the finances of the UK from time to time, what the future holds and the fact there does not seem to be enough money to pay decent wages, fix potholes, build houses, sustain services etc often has me thinking we are not as wealthy as a country as we think we are. Then I wonder about the wealth of some countries and the poverty of others. I suppose at some level it is all about the way money is shared across the world. But is this the main/only reason? Then more recently, the way politics across the world is so divided has caught my focus. How can things be fixed when around 50% want one thing and the other 50% another; the various attitudes to immigration, policing, education, those in caring roles, the elderly etc. If you were the Prime Minister, what are the main things you would do to change things for the better? Can a Prime Minister make a real difference anymore? Thank you again! Enjoy your deserved break in Japan and come back super duper strong! X
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holy smokes, i think i first came across your internet presence in the insider video of the interest rate trader. Didn't give it much thought even though it was interesting, never had interest in Forex and interest rates, but mostly myself having an obsession dabbing in stocks, options, and futures and still not successful over a decade. It wasn't until by some coincidence came across you again in some video mentioning your book and audible. Wow after listening to the book, it blew my mind, I was always curious how bank traders and large fund traded, but didn't expect the scale and immensity allowed by even junior traders and loss limits. The recklessness and cautiousness, but ultimately the eat what you kill mentality etc. being through it all. I can imagine we almost relate. Seeing how flashy and materialistic people can be when coming in to money, but also there are those that can live the mundane life just wanting to accumulate enough wealth to live thru life without the fear of the experience of poverty again. The disgust and the absurdity of people flaunting the rich lifestyle and doing non sense things to win favors. I can also see the dilemma of being a trader for a large institution, people putting on mask, and the games being played. In one end you are ambitious and eager to work hard to be rich by making larges profits for the banks and hope to get a sizeable bonus, however on the other end, because large companies are structured with management, ultimately you are to answer to your superior. Irony is the trader taking the maximum risk, while management can influence/ interfere with your outcome without a single ounce of thought to your risk and health. Mix with a volatile combination of winning/losing traders in the firm, the awkwardness of your peers and bosses who are in the red, while you are green. The worse is the politics, banks trying to get away with not providing the bonus or stretching it out multiple years. Anyway I had some eureka moments when reading your contents, and will look to apply them.
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Gary, I'm 36 now, and I can't tell you how much these videos are putting into words all the issues I've been contemplating over the last few years, especially when considering the massive inequalities that are at the heart of our society, and even when daring to consider (somewhat selfishly, it often feels) getting on the property ladder myself. As part of my career, I've done research in some of the world's poorest countries, including Nepal and Timor-Leste, and was really humbled by the people I met there. Although on a material level, they had nothing, they approached life in such a different way. Not to romanticise it, but people there help each other out and issues like homelessness barely exist. Shame on the UK, a supposedly 'developed' country and how this sick system is leading many people to live from pay cheque to pay cheque, and basically to lose all their empathy... I honestly don't have much hope with the current Labour government. It'll be more of the same I'd say; a bit more focus on concerns that relate to ordinary people. But really, we need a much more radical change, and I am with you on taxing the ultra rich. Please do keep all your good work up. It inspires me to believe there might be another way if we come together and fight for it.
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This channel is very important. As a US Citizen, virtually everything you speak about is evident in more and more cities each year. The biggest change here recently is that even in extremely low cost towns, we are seeing retirees dependent upon social security having to eat cat food to stay alive. We've failed our young and old (and middle class) and the future feels awfully bleak but the hope you are spreading is something that needs to catch on in the US. I fear we, as a country, have dipped our toes too far into the dream/delusion of "well I'm not poor, so it's not my problem" when in reality, most folks making near six figures are barely able to hold on unless they got ahead via buying a house pre-pandemic. Also, the lack of support for vital jobs in the US is going to rear its ugly head sooner than later. What happens when government workers, mechanics, sanitarians, (the list goes on) can't afford to live? It's already like that in a large amount of cities and I personally believe it's the reason why we are seeing such a rise in grifting ie everyone sells life insurance now, everyone is into crypto, etc. It's a mass delusion that is going to take a lot of unpacking and long conversations in this country. Hopefully your message spreads here.
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This is the best video so far. For me, I love capitalism, but I also love socialism. I would like to see a society where both are represented in equal measure. For example, a business needs educated, healthy workers who can focus on whatever the business requires. Well, then we need the worker to be housed, fed, educated and kept healthy. We don't want the worker stressed out and focused in getting a meal on their table. We need a worker who has time to relax and think - maybe bringing new and productive ideas into the business, or creating a new business, or creating some art in their spare time. A worker who can spend quality time with their families. A business needs a worker to produce children - so the business needs to 'collectively' provide for those children because they are the next tax-payers and workers. If workers can't afford children, then the business will search for workers from other countries. There is the immigration problem that is build into capitalism. However, the workers will eventually see that their low salaries do not provide for even a low-level standard of living. Solution? Look around the world and you'll see it - have as many children as possible. Hopefully enough will survive to bring enough money into the household to take care of the parents when they are old and sustain the family - concept being: a lot of a little is enough to survive. The UK is transitioning to this '3rd world' system right now.
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A year on. this convo still so relevant. Sunak multi-millionaire PM still in office , Jeremy H*nt chancellor has given away ~350 billion in hidden tax cuts (NI). Levelling up? Poverty, rickets, cold homes, hunger , foodbanks, inflation, extortionate energy prices, still rising, and polluting, ecocide in our rivers and sees, to save money for the Water corps. Levelling up is and has been a cruel joke. At least the Tory are finished, at least for a generation. We need local democracy: Citizen's assemblies now, to make local decisions that affecct us, our streets, our parishes, our villages, towns and cities.
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This guy is full of s hit, his message is dangerous, one of the ways you know that is because you don't have to bend your mind around what he's trying to say, he's presented it as clear to understand, a couple of glaring things, the housing market is in terrible shape, the media and people like right move have skewed the stats but trust me if you're trying to sell a house right now it's gonna go unless you price way way under what it would have went for 2 years ago, the other thing he mentions is the "redistribution of wealth" and refers often to "the rich" (whatever that means), like they're a breed who all make the same moves, they're all gonna pile into the housing market and buy up the floor at the right time!??! Hahaha they're all sitting on piles of cash and making 5% whilst real inflation is 10%+ etc... what a load of codswallop, he's. hinting that we should aim for even more state control to try and control financial markets which is the exact reason we keep falling into more and more terrible positions, he's trying to conflate people who believe in free market capitalism with racists, personally I want complete freedom of travel/work location for every human on the planet but I also want to do away with trying to take the fruits of the publics labor and redistribute it, I don't wanna pay for other peoples health care and schooling, I want them to take care of themselves
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I just wanted to say, if you ever see this, that it makes a difference; every time you have to repeat the phrase "money is not a resource" it makes a difference, every time you have to say again "look at the distribution" it makes a difference, you are not shouting into a void, it is working, if slowly, but it is working. Every time i watch a video of yours I swallow up a hundred questions that I have no one around to answer me, I am transferring to try to study something in economics, dreading finding out that you are right and that nobody there will care to know or tell me about the world I am living in. You are an incredible resource and it is a shame for you and for us that it has fallen on your back to teach millions of people what should have been taught at every school in this country: From the bottom of my heart, Thank you.
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Gary, deep thanks for your courage, your honesty, integrity & perseverance. Sone men are born to greatness, some men achieve greatness, some have greatness thrust upon them. You fit the last two categories. You represent us all, including with your vulnerability and your honesty about "not quite knowing what to do, but knowing something has to be done, knowing that if we each don't do it, it will never happen ". I'm a 69-year-old Irish born emigre who lives in the United States. i'm a theatre artist and a communicator & this topic and the topic of economic justice, wealth inequality, and indeed how "economics" actually represent our individual life energies and how we share them together in a thing called a marketplace… Have always been profoundly interesting to me. You've reinspired me in my own work. i'll be sending whatever I can. I believe it's not an accident how the channel has been successful… You don't pretend it's about you, we know it's not about you, it's about all of us together, and you're in the sometimes uncomfortable seat of having to be a leader. But there's phalanx behind you Gary.
sending love. Loraine in the United States
Where there is no vision, the people perish!
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Gary you’re voice is really needed in society today. Your economic analysis is spot on, 100%. The way you explain things is so clear and digestible. However, I don’t think your political forecasting will be accurate. Hopefully it won’t be.
Yes Starmer will win (probably with a minority government/coalition with Lib Dem’s) and there will be no change or improvement under Labour.
However, people, especially those under 45, won’t be distracted by the ‘boats’, as the older Tory generation are. They will want real change and won’t be fooled by ring wing parties. An all ‘white’ country won’t help Britons pay their bills and mortgages. But real housing policy will. My prediction is that in decades to come, as the old die off, we will become more socialist as a country. I as a life long Labour supporter, have stopped voting for them. I now vote for the Green Party. This is reflected in a YouGov poll. Our generation Gary, is bucking the trend and getting more left wing as we age. To me the Greens are the only party left that are truly left and would help tackle the wealth gap.
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Thank you, again, Gary. This is your best work, gently iconoclastic and all the more compelling for it. I'm forwarding it to everyone I can think of. Economics can transform from mathematical phantasmagoria into an empirically accessible window onto the human condition if we triangulate on it from the teachings of Buddha and Christ and their like, as you are here.
The child's understanding is that economic activity is due to self-interest. The adult understanding is that it is about trust. To be able to do your work, you have to trust that most everyone else will do theirs.
The child's understanding of economic virtue is that it is greed. The adult understanding is that virtuous economic activity is the assumption and shouldering of risk. You say that you will get something done that needs to be done and you do it.
The child's understanding of economic rewards is bling. The adult understanding of economic rewards is trade, the transaction sustained. You don't transact to extract as much as you can, you transact to create the opportunity for more transactions.
Thank you Gary, for being the most compelling exemplar for these ideas and so many more. We need to tax the hyperrich, you articulate this with a clarity that leaves me thunderstruck. It is not impossible, there precedent all throughout human history (the jubilee in the Old Testament, a forgiveness of debts every 50 years is one) To get there, we have to change people's minds.
We can change minds, it happens all the time, like a sea change. The funny thing about humans is that as cultures we really only remember a lesson for 3 generations. That seems like our species limit, you see it in things like "super debt cycles." With your work Gary, I dare hope, and with my children at precisely the wrong age, it is my keenest hope, that we may achieve the transition to more Gaussian* wealth distributions without the cataclysmic violence of a total war.
*Gaussian, not power law, because power law behaviors devolve to species like hymenoptera, of hives. They are nowhere near as powerful at surviving in nature as species that cross genetic material in non-clonal ways. Those species equilibrate towards Gaussian distributions of phenotype for complex traits. This creates vastly larger capacity to adapt per unit population.
I hope your cycling in Japan is restorative, I'm not sure there are many people doing work more important than what you are doing. If enough hear you, understand closer to the depth you do, both sides of the trade of self/altruism, our species may yet find a better way forward from poverty without losing our humanity.
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Many of the Rich people bought Government subsidised heating systems for their businesses and country mansions, the scheme was called the Renewable Heat incentive which basically paid for their heating bills for 25 years, which was later reduced to 20 years, the heating system usually ran on wood pellets/wood logs or wood chip, some installations used electric via a ground source heat pump system and also a few included biogas systems. The non Domestic RHI scheme was opened in 2011 and closed 10 years later in 2021, the payments are budgeted until 2041, the RHI payments are also inflation adjusted. The scheme cost UK tax payers over so far since 2011 about £2.5 billion up until 2020 and covers 20,000 installations, with approx 17,000 of them being biomass boilers. Just another example of the Rich being bailed out of their heating costs by the Government on the back of 'green' energy incentives, the poor UK tax payers are paying to heat the Rich peoples homes and businesses essentially for free, as the RHI payments often exceeded the fuel costs.
It is odd that the RHI scheme became a scandal in Northern Ireland, see below, but in the UK the same RHI scheme and similar fraudulent activities and abuses were going on in the UK, but it was hushed up and swept under the carpet here and never became a scandal here in the UK. It has quietly been forgotten about, but the RHI payments will continue to be paid by the UK tax payers to the Rich until 2041.
https://en.wikipedia.org/wiki/Renewable_Heat_Incentive_scandal#:~:text=The%20Renewable%20Heat%20Incentive%20scandal,purse%20almost%20%C2%A3500%20million.
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Gary, you absolutely should ask for donations. I would happily chuck you a one off of a fiver out of my benefits 😂
The thing about you being a millionair. Its a common discussion amongst some of my friends that goes along the lines of "if I won a million on the lottery I'd give some to my friends and never work again'. After a time I decided to actually do some basic maths and see how much a million would be devided by the years I, at most likley best, will live. I'm 35, so another 55 years would bring me to 90. Thats good innings. Let me get my calculator cause I'm rubbish at mental arythmatic. One million devided by 55 leaves...
A little under 18200 a year. Thats not much. And it will go less and less far each year.
Even if you, as seems likely to me, have multiple millions, I think people over estimate the spending power of large sums and how quickly it can disapear if you're not (arguably very) savvy.
Hence, despite your probably multiple millions, I, a man struggling to get by on benefits, will happily chuck you that fiver. Asides from the fact I think this is one of the most important political discussions of our time.
Enjoy your holiday mate and look after your own mental health. Even if that means abandoning the channel. You've done some great work. If what have done so far is all you manage to do, I'm still very grateful for that. Ideally though, I'd love to see more of you going forward!
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