AI, ‘the squeeze out’ and Gary’s economics.

Transcript for Why Labour is crushing your living standards

0:00 – okay welcome back to Gary’s economics
0:01 – today we are going to explain why labor
0:04 – is crushing your living
0:07 – standards okay so if you are watching
0:09 – this video on Sunday the 30th of March
0:13 – which is when it’s going to go out or
0:14 – shortly afterwards you will be watching
0:16 – in the immediate aftermath of Labor’s
0:19 – spring statement the news will have been
0:22 – absolutely covered in discussion of
0:25 – things like fiscal rules and uh
0:28 – Government Bond rates and forecasts for
0:32 – growth and you’ll probably be expecting
0:35 – that I will do something on the spring
0:36 – statement but to be honest at times like
0:39 – this when we have these kind of
0:42 – theatrical political set plays I often
0:46 – get frustrated with the way the media
0:49 – has a kind of a fixation with nailing in
0:52 – on a specific details Which tax has he
0:55 – risen uh or Which tax has she risen
0:58 – which which spending has she cut
1:00 – and there’s very often very little
1:02 – discussion of what is actually happening
1:05 – in the big picture why is Labor choosing
1:08 – to do austerity 2.0 what are the reasons
1:12 – driving basically the need for labor to
1:15 – do this why are they being forced to do
1:17 – this um when I was a Trader I one of the
1:21 – first things which I found really
1:22 – interesting was that you very quickly
1:25 – realize as a Trader that the things
1:26 – which are portrayed as important on the
1:28 – news are very often not important for
1:31 – Traders at all and the things which are
1:35 – important for Traders in the markets are
1:36 – very often not shown in the news at all
1:39 – so you have a situation where the news
1:42 – likes these kind of set plays like
1:45 – budgets spring
1:47 – statements but really what matters
1:49 – for Traders the economy for your living
1:52 – standards are what are the big picture
1:54 – long-term changes in the economy so what
1:57 – I want to do today is I want to explain
2:00 – why it is that labor is doing austerity
2:04 – 2.0 why labor is cutting spending
2:08 – cutting benefits raising taxes on
2:10 – workers why is Labor crushing your
2:12 – living standards so I was very
2:16 – pessimistic about Labor before the
2:19 – election um I was very confident that
2:21 – they would basically fail to
2:24 – significantly grow the economy that they
2:26 – would preside over falling living
2:27 – standards um and I thought there was
2:29 – always a sign ific risk that they would
2:30 – basically move into this austerity 2.0
2:33 – space and um the reason for this is
2:37 – because I understood the big picture
2:39 – Trend which has dominated the economy
2:41 – really for the last 20 years really but
2:43 – but especially since for the last 5
2:44 – years since covid which I am calling the
2:48 – squeeze out the squeeze out of the
2:50 – working class the squeeze out of the
2:51 – middle class the squeeze out of the
2:52 – government and in this video we’re going
2:55 – to go through nice and slowly in detail
2:58 – what the squeeze out is and how it
3:00 – affects you okay so the squeeze out
3:03 – really is kind of a new way of framing
3:06 – something that I’ve been speaking about
3:08 – for a long time um but I’ve been really
3:10 – moving towards this kind of framing
3:11 – recently and I think it’s a really
3:13 – powerful way to explain to Ordinary
3:14 – People what’s happening and how it
3:16 – affects them so on this channel I speak
3:19 – a lot about wealth inequality but I
3:21 – think wealth inequality as a concept can
3:24 – sound a little bit academic it can sound
3:27 – a little bit idealistic again
3:30 – itarian um people can kind of think this
3:33 – is politics of Envy how does that affect
3:34 – me and I think the squeeze out is a
3:38 – focus on really the most damaging and
3:42 – most dangerous direct consequence of
3:45 – wealth INE equality for Ordinary People
3:48 – which is that the rich accumulate an
3:50 – enormous amount of money and they use
3:52 – that to outco compete other groups in
3:55 – society such as the working class and
3:57 – the middle class for assets meaning that
3:59 – over time time the working class and the
4:01 – middle class have less and less and less
4:03 – assets and go further and further and
4:04 – further into debt and to be honest it
4:06 – was an understanding of this phenomenon
4:09 – which actually led me to become
4:11 – interested in wealth inequality in the
4:13 – first place when I was a Trader in the
4:15 – aftermath of 2008 everybody was
4:17 – predicting a strong economic recovery
4:19 – but I couldn’t help but notice that
4:22 – ordinary families were getting poorer
4:24 – and poorer year after year generation
4:27 – after generation and so with the
4:29 – government and this was basically what
4:31 – led me to understanding that inequality
4:33 – is important so if we reframe and focus
4:36 – instead of wealth INE equality itself
4:40 – and on the squeezing out of the working
4:42 – class and the middle class I think it
4:43 – makes it a lot more visceral and
4:46 – Powerful for Ordinary People ordinary
4:48 – families like you because you start to
4:50 – see what this means is me and my family
4:53 – are going to lose our wealth we’re going
4:55 – to lose our houses we’re going to get
4:56 – driven into debt um okay so what I’m
4:59 – going to do from now is basically a
5:03 – nice historical lesson of the history of
5:06 – wealth inequality I’m going to focus
5:08 – mainly on this country in the UK and
5:10 – we’re going to talk about how ordinary
5:12 – families got wealth and how they got
5:14 – squeezed out and are being squeezed out
5:16 – okay so first some historical context
5:18 – the period 70 years after World War II
5:21 – is not historically normal and it’s not
5:23 – internationally normal uh during that
5:26 – period of 70 years we saw a lot of
5:28 – Ordinary People a lot of ordinary
5:30 – families people earning average or even
5:32 – less than average incomes being able to
5:35 – own homes without significant debt uh
5:37 – get things like pensions basically own a
5:40 – chunk of the wealth that is not common
5:43 – if you go to most of the world to be
5:46 – honest outside Europe and North America
5:47 – if you go to most countries in Africa in
5:50 – Latin America in Asia what you see is
5:52 – small very wealthy Elites and a a very
5:56 – small middle class below that and then
5:58 – most people live don’t own significant
6:00 – wealth what they own is worth very
6:02 – little and and they live in poverty and
6:04 – that was true in in Europe and in this
6:06 – country the UK and in the United States
6:08 – for most of history as well and that is
6:10 – basically to be honest that is the
6:12 – long-term history of sort of post
6:14 – agricultural human civilizations is you
6:16 – tend to have a small Elite and a lot of
6:18 – poverty around them in the history of
6:20 – this country the UK you do have sort of
6:22 – a couple of historical examples when
6:23 – working people were able to get themsel
6:26 – a little bit more power and a little bit
6:28 – more wealth after the the plague after
6:31 – the Black Death when 50% of the
6:33 – population of Europe died working people
6:35 – were a bit more needed they were able to
6:36 – get a little bit more of a share you
6:37 – were able to see women get a bit more of
6:39 – a share than they did historically at
6:41 – that point in time during the Industrial
6:43 – Revolution in the industrial revolution
6:44 – you had a period where basically all of
6:46 – the world’s production was happening in
6:48 – you know a small part of Northwestern
6:50 – Europe and uh after a lot of fighting um
6:53 – ordinary working people were again able
6:55 – to get a bit of a share but even then
6:57 – realistically these societies lived in
6:59 – very high levels of inequality most of
7:01 – the wealth owned by by super Elite but
7:03 – in the 20th century this all changed
7:05 – basically um people sometimes forget
7:06 – that even at the beginning of the 20th
7:08 – century the 1900s there was still really
7:10 – really widespread poverty and extreme
7:12 – inequality even in this country the UK
7:15 – um my grandmother who was born in the
7:16 – 20s saw I think three or four of her
7:18 – siblings die of tuberculosis which is
7:21 – basically a disease a preventable
7:22 – disease of poverty yeah people lived in
7:24 – in Desperate poverty in the early 20th
7:25 – century but during and immediately after
7:28 – World War II there was really
7:29 – significant change here um and what you
7:31 – see if you compare pre-World War II to
7:34 – postor War II is suddenly a massive
7:36 – increase in wealth holding of the
7:38 – government and some of that wealth being
7:41 – held by the middle class and eventually
7:44 – even significant amounts of workingclass
7:46 – wealth so I often talk about how my dad
7:49 – worked for the Post Office making 20
7:51 – grand a year less than average wage and
7:53 – um he was able to buy property things
7:55 – like that so what you see is suddenly
7:58 – this historic wealth Dynamic of the rich
8:01 – earing Everything Changes in the 20th
8:03 – century and I think the key to that is
8:05 – basically World War II I think World War
8:07 – II sees basically like a big shift in in
8:10 – the ownership of wealth and um to be
8:12 – honest I would like to understand a
8:13 – little bit more about exactly how that
8:16 – wealth shifts during World War II from
8:18 – being owned by the rich uh to being
8:20 – owned by by the government and by by
8:22 – Ordinary People um I’ll be looking into
8:24 – it I’ve got my theories probably will’ll
8:26 – get an expert in to speak about it one
8:28 – one day I think it’s interesting to
8:29 – consider because at the moment when
8:31 – there is a lot of attention on can we
8:33 – tax the rich people sometimes forget
8:35 – that the 20th century is a really good
8:36 – example of the fact that wealth can be
8:39 – redistributed it doesn’t just have to
8:40 – flow one way it can flow back to
8:42 – Ordinary People but what you need to
8:43 – know for now is essentially World War II
8:46 – saw a really historic shift in who owns
8:49 – the wealth and it was no longer owned
8:51 – just by a small Elite and it was
8:53 – suddenly owned in large part by the
8:55 – government and by the middle class and
8:56 – by the working class and in the period
9:00 – 30 40 years after World War II this kind
9:03 – of stayed relatively unchanged and this
9:07 – was largely because in that period we
9:08 – had very very high rates of tax on rich
9:11 – people which essentially prevented the
9:14 – flow of wealth which I talk about a lot
9:15 – on this channel from happening so
9:17 – whenever you have inequality you have
9:19 – this kind of problematic you know
9:21 – Monopoly game style situation which is
9:23 – these guys own the assets these guys
9:25 – don’t you have to pay your salary to
9:26 – them and over time that wealth
9:28 – difference grows and grow and grows but
9:30 – in the 50s 60s 7s we had very high rates
9:33 – of tax on the richest which basically
9:34 – prevented the rich from accumulating
9:36 – money and buying up the assets then in
9:39 – the 80s you have the Thatcher in this
9:42 – country Reagan and the US governments
9:44 – come in and basically totally rewrite
9:46 – the the story around economics lots of
9:49 – people don’t like that and Reagan but I
9:51 – think when you look back at what they
9:52 – did we can kind of view them as a as a
9:54 – hopeful example that tax policies can be
9:57 – changed distributions can be changed the
10:00 – story about economics can be changed and
10:02 – these guys basically Chang the story I
10:04 – would add that’s that’s what we’re
10:05 – trying to do on this channel basically
10:06 – change the story about economics that
10:08 – tran came in they changed the story on
10:10 – economics and they massively massively
10:12 – slashed taxation on the richest people
10:14 – and as soon as you do that that’s when
10:16 – the squeeze out begins and we enter
10:19 – stage one of the squeeze out okay so
10:22 – part one of the squeeze up taxes have
10:24 – been cut on rich people in the ‘ 880s
10:26 – and suddenly rich people start to
10:28 – accumulate a lot of of money now one key
10:31 – feature of rich people which I speak
10:33 – about on the channel is that rich people
10:35 – have what economists call a low marginal
10:38 – propensity to consume what that means is
10:40 – if you give rich people a lot of money
10:42 – they will not increase their consumption
10:43 – significantly what they will do instead
10:45 – is they will start to buy significantly
10:48 – assets so the rich scale lot of money
10:50 – they start buying assets the first thing
10:52 – you see is asset prices rising you start
10:55 – to see stock market you start to see
10:58 – stock markets going up and you start to
10:59 – see house prices going up what’s
11:02 – interesting about this is most people
11:05 – perceive this stage one as a really good
11:08 – thing so you know we’re existing in this
11:10 – postwar economy where lots of people
11:12 – even poor people own assets and they
11:15 – start to see their house price go up or
11:17 – they start to see their stock Holdings
11:19 – go up if you’re in a country where like
11:21 – the us or Germany where people own
11:22 – stocks people are really excited like my
11:24 – house price is going up stock prices is
11:26 – going up like this is really really good
11:28 – and I think what people don’t realize is
11:31 – those Rising stock prices and those
11:33 – Rising house prices are basically a
11:36 – manifestation of the rich starting to
11:39 – squeeze people out of asset holding and
11:43 – um what you will see first is the very
11:45 – poorest people will respond to these
11:48 – increased asset prices by selling their
11:51 – assets and I think the first thing that
11:53 – you saw was in particular older people
11:56 – from poor families using that I suppose
12:00 – asset winful to give themselves more
12:03 – comfortable
12:05 – retirements um I want to point out
12:07 – comfortable retirements are not a
12:09 – historical or an international Norm but
12:12 – this is a thing which we started to get
12:14 – in particular in this first stage of the
12:15 – squeeze out so if you’re if you’re poor
12:17 – you’ve lived a poor life and suddenly
12:19 – you see your house price going up what
12:21 – you are probably going to do is you’re
12:22 – going to say okay this is this is great
12:24 – I’m going to use that increased price to
12:27 – give myself a little bit of luxury and a
12:30 – little bit of comfort in my retirement
12:32 – and what this means is the first stage
12:34 – of the squeeze out it feels great even
12:36 – for the poor especially if you own
12:38 – property you’re like my asset price is
12:39 – going up I’m going to sell the asset and
12:43 – I’m going to to to live a better life so
12:45 – what we see is in the first stage the
12:47 – rich are accumulating money but they are
12:50 – not using that to out compete the poor
12:52 – or the middle class for consumption
12:55 – which means living standards don’t fall
12:57 – for ordinary people
12:59 – what they are doing is they are using it
13:02 – to squeeze the weakest hands which is
13:05 – the historical working class out of
13:07 – ownership of assets out of ownership of
13:10 – property now that goes on and on and
13:13 – eventually you start to see property
13:15 – prices are going up and up and up um
13:17 – poor families eventually over time are
13:21 – owning less and less housing I think a
13:22 – really good example of this is um the
13:24 – right to buy scheme here in the UK which
13:26 – is when the UK government sold off its
13:30 – housing to poor people and those poor
13:33 – people owned their houses for a bit
13:36 – eventually sold them in order to fund
13:38 – decent retirements and ended up owning
13:40 – nothing now the properties are owned by
13:42 – rich people and they buy tect properties
13:44 – and the poor end up with the government
13:46 – having no assets and themselves having
13:48 – no assets this is a really really good
13:50 – example of how in stage one of the
13:53 – squeeze out asset prices get pushed up
13:55 – and up and up and up and up and that
13:56 – squeezes out the weakest hands in
13:59 – Society who are in the first place the
14:00 – working class but the working class
14:03 – often and this is not just the working
14:05 – class the squeezed out class often
14:06 – enjoys it because they are able to
14:08 – consume more while they are dissaving
14:11 – their wealth and they often don’t look
14:12 – down the line and think what’s going to
14:14 – happen when we don’t have any wealth
14:15 – left so what you see here is weaker and
14:19 – weaker
14:20 – hands dissaving their assets getting
14:23 – poorer and poorer in wealth terms but
14:25 – using that to sustain a good quality of
14:27 – life and I think I’ll just make it clear
14:29 – what this saving is this saving is I
14:32 – have some wealth and I’m gonna for a
14:34 – period of time spend more than my income
14:37 – by basically selling the wealth I have
14:40 – to the rich or by taking on debt so this
14:43 – saving is this saving is really a key
14:44 – concept to understanding the squeeze out
14:46 – which is I have some assets over time I
14:48 – sell them to the rich and that enables
14:50 – me to live a good quality of life while
14:52 – I’m being squeezed out um so you kind of
14:55 – have people cheering on their own demise
14:57 – in a sense but over time time less and
14:59 – less and less poor people own homes the
15:02 – asset price goes up and up rich people
15:05 – are accumulating more wealth and
15:06 – accumulating more money and you reach a
15:08 – situation where the only way for
15:10 – especially the working class but also
15:12 – often the middle class to own homes to
15:15 – compete with the rich for ownership of
15:17 – homes is to borrow the money from the
15:19 – rich so you’re seeing less ownership of
15:22 – of property and increasing levels of
15:24 – debt increasing size of mortgages and
15:27 – this keeps happening the rich richer and
15:29 – richer and richer house prices go up and
15:31 – up and up and up levels of debt increase
15:33 – and increase and increase and eventually
15:35 – you reach a point where the rich are
15:38 – looking at the poor and the middle class
15:40 – and they’re saying well you don’t have
15:42 – any assets anymore you are in a massive
15:44 – amount of debt to us we don’t think you
15:47 – are credit worthy anymore and that is
15:49 – when you enter stage two of The Squeeze
15:52 – up so when we get to stage two you have
15:55 – this problem where basically a big junk
15:57 – of society can’t borrow money anymore
15:59 – and this happens in 2008 so up until
16:03 – 2008 um a big chunk of society is
16:05 – getting squeezed out but they’re able to
16:07 – still spend because the rich are lending
16:09 – to them they basically reached the point
16:11 – where the rich says they’re no longer a
16:12 – good credit let’s stop lending to them
16:14 – and that is when you enter an economic
16:16 – crisis suddenly The Lending is not there
16:19 – this means a massive chunk of society
16:21 – can’t afford to spend and you
16:22 – essentially enter an economic depression
16:24 – people can’t spend business is shut down
16:26 – that means even more people can’t spend
16:28 – and that is is for the first point in
16:30 – the squeeze out when the rich are not
16:32 – only taking your assets but they start
16:35 – to basically not allow you to consume
16:39 – and what this of course means is there’s
16:41 – a massive increase in poverty suddenly
16:44 – people lose their job people can’t
16:45 – borrow people can’t spend there’s a
16:46 – massive economic depression and that
16:48 – means that governments have to step in
16:51 – so here in Western Europe we generally
16:53 – live in welfare states where the
16:55 – governments have a kind of theoretical
16:57 – responsibility to make sure that the
16:59 – majority of their populations stay out
17:01 – of poverty um but the majority of the
17:04 – population by the beginning of stage two
17:06 – they’ve got no wealth they’ve got no
17:08 – power they basically have no way to keep
17:10 – themselves out of poverty so government
17:12 – step in but the government has a problem
17:15 – which is the rich are getting richer and
17:16 – richer and richer and richer they have
17:17 – the assets this group of people the
17:19 – working class they’ve got nothing the
17:22 – government needs the assets from the
17:24 – rich to support the working class but
17:26 – unfortunately the government has been
17:27 – very reluctant to tax the rich so they
17:29 – turn around to the rich and they say
17:30 – what do you want in order for you to
17:33 – allow the poor to to live to have a good
17:35 – quality of life and the rich basically
17:37 – say to the government the same thing
17:38 – that they said to the poor which was we
17:40 – want your assets and we we’ll lend you
17:42 – the money and then then you see
17:45 – basically the exact same thing happening
17:46 – to government which happened to the poor
17:49 – in stage one which is the rich the
17:51 – government gradually sells off its
17:52 – assets sales office assets sales office
17:54 – assets government dis saving essentially
17:57 – asset prices start to go go up again
17:59 – because the rich getting richer and
18:00 – richer and richer and I think it’s worth
18:01 – noting that after 2008 even though the
18:04 – initial move was are crashing asset
18:05 – prices there was been a massive increase
18:07 – in asset prices the government are put
18:09 – in the same situation that the working
18:10 – class are in the only way they can
18:12 – support living standards for the working
18:14 – class is to sell their assets and to
18:16 – take debt and the government gets poor
18:18 – and poor and poorer fewer and fewer
18:20 – assets and more and more and more more
18:21 – debt um and I think we’ll try and Flash
18:23 – up a graph of Thomas Pet’s data on um
18:28 – the wealth of government which has
18:29 – massively massively collapsed in the
18:30 – last 20 years so what you see on this
18:32 – graph is a graph by the French Economist
18:34 – Thomas petti looking at the wealth
18:37 – levels total amount of assets versus
18:39 – total amount of debt of all of the
18:42 – world’s biggest governments and what you
18:44 – see here is the US and also European
18:46 – governments basically the wealth has
18:47 – collapsed all the way to zero it’s worth
18:49 – noting that this graph stops before
18:51 – covid and in Co these wealth levels
18:53 – collapsed so what you have now is a
18:55 – situation where basically Western
18:57 – governments are not only zero wealth
19:00 – they’re actually massively in negative
19:02 – wealth and this is a perfect example of
19:04 – the government being squeezed out just
19:06 – like the poor so what you have there is
19:07 – basically stage two and stage three of
19:09 – the squeeze out stage two is the
19:11 – economic depression ordinary people
19:12 – can’t spend suddenly there is a collapse
19:14 – in consumption first collapse in living
19:16 – standards and stage three is the
19:18 – government stepping in the government
19:20 – supporting living standards but the
19:21 – government gradually itself getting
19:23 – squeezed out eventually when the
19:25 – government runs out of wealth and is too
19:26 – far in debt to borrow any further that
19:28 – is when we into stage four so stage four
19:31 – is basically where we are now and I
19:33 – think stage four perfectly explains what
19:35 – is happening now to the UK government
19:38 – what increasingly will happen to the US
19:39 – government what increasingly will happen
19:41 – to European governments which is the
19:43 – government has tried to step in to
19:46 – protect the poor who are having their
19:47 – wealth squeezed out by this rapidly
19:49 – growing wealth of the Rich and as a
19:52 – result of doing that they have had their
19:53 – own wealth squeezed out and now they
19:55 – have no wealth left either and they are
19:57 – left in a situation where there’s
19:59 – basically nothing they can do well there
20:02 – is one thing they could do they could
20:03 – tax the rich but whilst that is off the
20:05 – table they really simply have no choice
20:07 – but to shut down the welfare states
20:10 – because we are moving back to that
20:11 – pre-World War II period where all of the
20:14 – wealth all of the assets all of the
20:15 – Power held by the rich the working class
20:18 – have nothing left the government have
20:20 – nothing left they have no wealth in
20:22 – order to provide you with the things
20:23 – which they are supposed to provide you
20:25 – so what you see and what we have seen in
20:27 – the last 10 15 years and what we will
20:28 – see more aggressively in the next 10
20:30 – years is basically the shutting down of
20:33 – government so you see the closing of
20:35 – local Services you see the aggressive
20:37 – contraction of welfare you see the
20:38 – defunding of the courts and defunding of
20:40 – the police and eventually the defunding
20:42 – of things like education and Healthcare
20:45 – we saw the defunding of social housing a
20:46 – long time ago basically because the
20:48 – government have been squeezed out they
20:50 – have no choice but to basically shut
20:54 – down all of these services and I think I
20:57 – think this is is the part of the
21:00 – discussion which is never really spoken
21:02 – about by economists and never really
21:03 – spoken about on the media I think what
21:05 – you will have seen and we shooting this
21:06 – before the spring statement came out by
21:08 – the way but what you will have seen is
21:10 – the government uh the media talking a
21:12 – lot about fiscal rules without really
21:14 – recognizing the underlying reality which
21:17 – is all of the world has gone
21:19 – increasingly to a small Elite and that
21:21 – means that the government really if they
21:23 – are not willing to tax the elite with
21:24 – that wealth the only option they have is
21:26 – to try and squeeze as much as they can
21:29 – the one remaining section of society
21:31 – which has a bit of wealth and has a bit
21:33 – of power which is the middle class and
21:35 – that is kind of what the government is
21:37 – doing they’re trying to fill this middle
21:39 – gap of we’re going to tax the middle
21:40 – class CU they’re the only guys with
21:41 – wealth we’re going to try to borrow from
21:42 – the rich but really all that does is
21:46 – further squeeze out the next week is
21:47 – hand which is the middle class and
21:49 – further enrich the guys who are doing
21:52 – the squeezing which is the rich and then
21:54 – you end up in a situation which I think
21:56 – increasingly we are coming into and we
21:58 – will come into
21:59 – where basically nobody has any wealth
22:01 – except for the rich and then what you
22:03 – start to see is the physical
22:05 – transformation of society which is we
22:08 – have lived for the last 70 years in
22:11 – middle class workingclass societies and
22:13 – what I mean by that is we have lived in
22:15 – societies which unusually have provided
22:18 – things such as good quality housing and
22:20 – education and health care and goods and
22:22 – services to the middle class and the
22:24 – working class but those guys have no
22:26 – wealth and no power anymore so you need
22:28 – to to change what you produce you need
22:30 – to change the physical shape of your
22:31 – economy and you need to stop producing
22:33 – things for the working class stop
22:35 – producing things for the middle class
22:37 – and start producing only for the rich
22:40 – and I think a couple good historical
22:41 – examples of these are the famous potato
22:44 – family in Ireland where basically food
22:47 – was being grown in Ireland and exported
22:49 – to rich people who while the Irish died
22:52 – because they were poor I think of the
22:54 – famines in India where people were dying
22:57 – in India because the fields were
22:58 – guaranteed that was being sent halfway
22:59 – across the world um I think another
23:01 – great example of that is is Mr Beast Mr
23:04 – Beast goes to Africa he spends $500 to
23:07 – give a kid their eyesight back forever
23:09 – the reason that that kid doesn’t have
23:11 – his eyesight is because he lives in a
23:13 – very unequal country he is a member of
23:15 – the poor class he does not get anything
23:18 – he’s been fully squeezed out the
23:20 – resources that he needs to get his
23:21 – eyesight back are being used by the rich
23:23 – and he can’t compete with them so you
23:25 – need to move into a completely
23:27 – transformed Society which does not
23:29 – produce anything for the poor for the
23:32 – middle class I think the the best
23:33 – example you can see of that especially
23:35 – here where I live is housing so I grew
23:37 – up in ilford uh in East London it was a
23:41 – it was a working-class street we grew up
23:42 – in it was quite working-class town uh
23:45 – lots of small families living in small
23:46 – Terrace houses but it was respectable it
23:49 – was dignified there was a degree of
23:50 – space and if you go back to ilford now
23:52 – you will see that physical
23:54 – transformation which is all of those
23:56 – houses have been expanded up they’ve
23:57 – been expanded back they’re rented out by
23:59 – the room quality of life is very low
24:01 – it’s basically a slum there’s all of
24:03 – these enormous blocks of tiny tiny Flats
24:05 – which have very low stand of living
24:07 – inside them and what you are seeing here
24:09 – is is the building of the slum and if
24:11 – you go into Central London you will see
24:13 – these unbelievably luxurious Flats being
24:15 – built everywhere you will see luxurious
24:17 – restaurants luxurious hotels luxurious
24:19 – bars absolutely full of rich people
24:21 – because rich people have taken all the
24:22 – wealth they’ve squeezed everyone else
24:24 – out and they are taking all the
24:25 – resources so this is it really this is
24:28 – what is dominating the government
24:29 – situation is not getting spoken about
24:31 – much which is weak hands are being
24:34 – progressively squeezed out of our
24:36 – society um I think if you’re from the
24:37 – working class if you’re from a poor
24:39 – family you’ve been able to see that for
24:40 – a while if you’re from a more middle
24:42 – class situation you might not have
24:44 – realized it’s starting coming for you
24:47 – but this is the way that it goes the
24:49 – working class gets squeezed out first
24:51 – then the government gets squeezed out
24:52 – then the middle class gets squeezed out
24:54 – and eventually you move to this kind of
24:56 – South Africa style Brazil style India
24:59 – style economy where everything is owned
25:01 – by the rich and no one else has anything
25:03 – left this is what is dominating our
25:05 – political narrative and unless the
25:08 – government does something about this
25:10 – squeeze out there will
25:12 – be basically nothing that they can do
25:15 – and and this will simply get go further
25:17 – and further it will get worse and worse
25:19 – I think it’s interesting to ask what do
25:21 – the rich do once they’ve squeezed
25:22 – everybody else out because at this point
25:23 – they will have enormous amounts of
25:25 – passive income there’ll be no weak hands
25:27 – to squeeze out of the economy the only
25:29 – thing that they can do with their
25:30 – enormous income their enormous wealth
25:32 – their enormous resources is try to
25:34 – squeeze out each other and historically
25:37 – that basically means war the rich have
25:39 – everything they want more the only
25:41 – people you can take from other rich
25:42 – people and you know this is the history
25:44 – of Europe you know and World War II
25:46 – essentially was the climax of it you
25:48 – know the Holocaust the the nuclear
25:49 – bombing of Japan this basically was The
25:52 – Logical Endo of the continual squeeze
25:54 – out which is the rich take more the rich
25:56 – take more the rich take more the rich
25:57 – takes more and eventually
25:59 – you you have nothing and you’re
26:00 – worthless and you can be used as a porn
26:01 – in a war um but we’re not there yet what
26:04 – I want to talk about right now is how
26:06 – this is relevant to the statement that
26:07 – came out in the week which is the
26:10 – government is essentially rowing a boat
26:13 – with a massive hole in the bottom your
26:16 – wealth is being squeezed out you are
26:18 – losing your power the government is
26:19 – losing wealth and power the rich are
26:21 – getting richer and richer and richer
26:22 – every day and the reality of that is you
26:25 – simply have to get poorer you are losing
26:27 – a relative position in society and until
26:30 – you the working class the middle classes
26:32 – of the UK the US and the government are
26:35 – willing to stop putting that in Reverse
26:37 – there simply is no alternative other
26:39 – than to shut the welfare state down and
26:41 – to basically drive yourself into
26:43 – poverty okay so to recap the squeeze out
26:46 – is why the government is destroying your
26:47 – living standards it’s why you and your
26:49 – family and your kids will be
26:50 – increasingly poor there are five stages
26:51 – of the squeeze out stage one the rich
26:54 – start to accumulate money they drive
26:56 – asset prices up and they out compete the
26:57 – work working class for resources and
26:59 – they drive the working class into debt
27:01 – stage two the working class have a run
27:03 – out of resources they can no longer
27:05 – borrow anymore they can no longer spend
27:06 – anymore you get economic depression and
27:08 – the crisis that’s when the government
27:10 – has to step in stage three the
27:12 – government increasingly runs out of
27:14 – resources as well the government too
27:16 – becomes massively in debt to the rich
27:18 – that’s when we enter stage four the
27:20 – government has no choice but to slowly
27:22 – eviscerate the middle class eventually
27:24 – there is no wealth left other than that
27:25 – held by the rich and the physical
27:27 – structure of your Society changes such
27:30 – that it only supports consumption for
27:32 – rich people at this point almost
27:34 – everybody in the country lives in
27:35 – Desperate poverty stage five there are
27:38 – no weak hands left to be squeezed out
27:40 – the rich earn everything and the only
27:42 – way they can try to grow their wealth is
27:44 – by sending you to fight in their Wars
27:46 – against each other so another uh
27:48 – characteristically depressing video from
27:50 – Gary’s economics um this is I want to
27:52 – make it clear your grandparents fought
27:55 – for a better settlement and they got a
27:56 – better settlement um they lived in a
27:59 – world where there was desperate
28:01 – widespread poverty um and they fought
28:03 – for something better and they got
28:04 – something better they understood the
28:05 – only way to do that was to tax the rich
28:08 – we’re campaigning on this channel to tax
28:09 – wealth not work um we are reaching out
28:12 – to the guys at Labor we would love them
28:13 – to talk to us about policy
28:16 – um this will get
28:18 – worse until the government gets serious
28:21 – about taxing the rich there’s basically
28:23 – nothing they can do um I’m going to try
28:25 – to make them serious about it and your
28:28 – support is the only Power that I have so
28:30 – support the channel share with your
28:32 – friends share with the family send it to
28:33 – your mom send it to Rachel Rees maybe
28:35 – it’s interested if you lose all your
28:38 – wealth you lose all your power and you
28:39 – lose everything else stop the squeeze
28:41 – out take the wealth back tax wealth not
28:43 – work thank you