I think we'll do another video on why economists,  mainstream economists have missed this so much  

because it breaks my heart the pathetic idiocy we see from economists so much um but the truth is  

they're rich, they're from rich families, they're  from rich backgrounds, they're getting paid right

they don't give a **** right...

okay so this is going to be the final video in  the series about the 700 billion it's going to  

cover how it ended up with the rich and how that  affects the economy, okay so we've been doing a lot  

of videos on this 700 billion recently I think  it's a really useful way to criticise the  

government and also to understand what's happened  in the economy uh the last video we did explains  

exactly what the 700 billion was; it's the total  government deficit since the beginning of covid  

which is the total amount of money essentially the  government has given out above and beyond taxes so  

when the government taxes it moves around but when  it gives extra out that creates more money in society  

and someone ends up with more money um 700  billion pounds massive massive amount of money  

£14,000 for everyone... every single adult  in the country um it was always going to have  

massive economic effects, now a big part of the  argument of of this channel is that that money  

has largely ended up with the richest um in fact  the reason why we made this channel is because  

right at the beginning of covid it was pretty  clear to me that 250 billion pounds which is  

how much it was then was going to end up with  the rich people in the country it was going to  

transform inequality it was going to have massive  implications for ordinary people so that's why we  

made this channel and we made the very first  video on this channel so the very first video  

on this channel basically explains exactly  that how that money ended up with the richest  

um I'm not going to go through a completely  detailed explanation if you want that then  

go and watch that video we'll put a link in  the description we'll put a little pop-up  

maybe for it so you can see that video but  I'm going to describe very very succinctly  

how that money ended up with the richest people  in society so since we know that £700 billion

was given out we must also know that somebody has  it because it's so much (£14,000 per adult)  

it raises quite a big question as to who because I  suspect that the vast majority of people watching  

will not have accumulated £14,000 cash in  the last few years in fact most people will find  

themselves poorer now than they were 3 years ago um so it's a big question right who has the money 

and it was a question that was puzzling me at the beginning of Covid-19 because  

at the beginning of Covid I think the narrative  was this money is going to furloughed workers  

but if you look at furloughed workers they  didn't get richer right so we... 250 billion  

which is what it was then that's £5,000 per adult in the country you know for every 

furloughed worker it's something like £50,000  right because not everybody was furloughed

or maybe something like £40,000, you know of course every furloughed worker is not  

accumulating £40,000 remember the question here is not 'who gets the money initially?' its 

'who ends up accumulating the money?' you know we're pouring 250 billion, we're pouring 700 billion in  

it's going to swim around and it's going to end up  with some people who ends up with that 700 billion?  

right and it was a bit of a mystery to me at the  beginning of Covid right because the narrative  

was all 'it's the furloughed workers' but the furloughed workers weren't accumulating anything  

in fact they're getting poorer because they're  getting less (80%) so it it raises the question of 

'who actually ends up with the money?' & all you need  to do is follow the money through the system right  

so furloughed workers they get extra money from  the government but they don't get richer because  

they don't get their wages anymore, okay so  who's got the wages? well it's companies that pay  

the wages so but are company's getting richer? well  actually the companies who furloughed their workers  

during Covid generally got poorer during Covid because they were shut down they weren't getting  

their income okay so who gets the income that  normally goes to companies that then gets paid  

to the workers well that's customers and actually  this is where the money accumulates because  

customers massively cut their spending during Covid but crucially not all customers right if you're  

an ordinary family or especially if you're a poor family almost all of your expenses is essentials; 

rent, mortgage, food, bills... these payments did not decrease during Covid, but if you're, well what payments

did decrease during Covid? the answer is non-essential or luxury payments; holidays, bars, restaurants...  

all of the things that were shut down basically  theater this kind of thing and who has the highest  

spending on those luxuries? it's basically  a perfect proxy for how rich you are so  

what happened during Covid & during lockdown  was that the spending specifically of the rich  

collapsed, poor people spending barely fell  at all but the spending of the rich collapsed  

which meant that anybody who worked in the luxury  non-essential sector lost their incomes and the  

government stood in to fill the gap so essentially  systemically what happened during Covid was  

an expenditure of the rich got replaced  by an expenditure of the government  

which meant that the government  printed largely and pumped money in  

that went to ordinary workers they use that to  pay their bills, their rent, their mortgage; that  

goes to that the owners of the assets who are the  rich and the rich simply it was basically illegal  

for them to spend that money so what it meant was  that the rich accumulated that money and this was

so systemically obvious at the beginning  of Covid and so unbelievably unbelievably  

little analysed I think it was I think it's I  think it's the most fantastic indictment of the  

state of Economics today that in the last  three years the government of this country  

has given out seven billion and I looked at the  U.S number and I think it was 3 trillion right

that governments can give out trillions of  pounds and nobody even asked the question  

of 'who is going to accumulate that money?' it's  it's and you know we'll probably do a video on  

this at some point but what that comes down to  is there is a there is a terrible woeful lack  

of analysis of distribution in economics so  that no one even asks the question basically  

um but you know the government gave out £14,000 per adult somebody had to have it  

if you do the analysis which I've just gone  through it's quite obvious that that money  

will end up with the richest because that money  has gone in it's basically as a subsidy for the  

collapsed spending of the rich so so it was it  was unbelievably obvious at the beginning of  

covid that what we would see is the biggest and  fastest increase in inequality in the history  

of the country and if you have an unbelievably  rapid increase in inequality during a period of  

time when the economy is literally closed it is  really obvious that on reopen what you'll see  

is a massive increase in quality of life of the rich & a massive decrease in quality of life in the poor 

what else could you possibly expect if you've increased inequality enormously in a period

when the economy was closed & the... I don't know if you remember but the reporting 

the media reporting during covid was just about the  stupidest thing you have ever heard right they  

were like everybody's accumulating so much money  we're going to have a Roaring Twenties you know  

you don't create Roaring Twenties just by  giving money out right if you give if you  

give a huge amount of money specifically to the  rich what you create is a cost of living crisis  

and this brings us to the next point of the video okay so we're concluding now how the money ended up  

with the richest hopefully it's clear if anybody  wants to understand more go back and watch  

the very first video on this channel we'll put  a link in the description it's called 'how the  

rich got richer from Covid-19' but the next question I think this is a really interesting discussion is  

how does it affect you and how does it affect  the economy so there's lots and lots of ways  

in which wealth inequality can increase in society  the most obvious way is that ordinary families  

lose their assets and those assets start to be  owned by richer families the direct transfer

of assets from the middle class to the rich that's happening you know you can see that  

that tends to happen generationally so what you see is middle class families; the older generation  

own property the younger generation cannot afford its  own property those properties end up being owned  

by the younger generations of richer families so  generationally assets are being transferred from  

middle class to the rich that's one way inequality  can increase another way wealth inequality can  

increase is is debt a big increase in debt from  the middle class to the rich and we're seeing  

that as well in the massive increase in size  of mortgages and also matter increasing size  

of government debt okay that's another way that  inequality can increase I think both of those if  

you do them slowly enough people don't recognise  right like generationally the older generation  

doesn't realise their kids are losing property  younger people are kind of realising I think  

um the increase in debt it happens slowly people  don't really really notice it that much but people  

don't like it people don't like having a lot of  debt and people don't like losing their assets  

but what happened during Covid was a massive  increase in inequality without taking your assets  

and without putting you into  debt and what that was was just  

printing a crap ton of money and giving it to the  rich does that hurt you? and how does it hurt you? 

you know I think it's really worth just sitting  and asking yourself the question and you know  

people watching you might even want to pause the  video and ask yourself the question what do I  

think would happen let's assume that money went to  top 10% so you give the richest 5 million adults in  

the country each £140,000 cash, what do you think  would happen? stop for a minute and think what  

would happen if the government gave the richest 5 million adults in the country each £140,000 cash

well the first thing is they're going to buy  assets so you're going to see assets go up  

because rich people tend to prefer to buy assets  but they already own assets right so that they're  

just buying assets from each other there will  be some net transfer of assets from the middle  

class the rich so some assets will go up but they  can't buy enough assets because they've been given  

so much money so asset prices go up then they feel  even richer and then if then they start increasing  

their spending right they start increasing their  spending that pushes up the prices of everything  

you know one of the big reasons why food became  more expensive even before the Ukraine war was  

because the cost of shipping became more expensive  because the rich were buying so much stuff that it  

was filling up the shipping containers you  know ultimately these guys they spend more  

money it pushes the price of stuff up and people  sometimes turn them out to me and say oh but you  

say the rich have like they prefer to save which  is true it's true the rich prefer to save but they  

don't save everything if you give 5 million people 140 Grand each you're going to push the prices of

stuff up it's such an enormous amount of money such an enormous amount of money & I think

it's interesting because it's a really  interesting way to make people poorer is  

to print money and give it to the rich because  you don't even see it happening right, you know  

it happens behind closed doors you know and in  fact what most people think is the government is  

really good they gave money to furloughed workers  you know but if you actually ask a question of who  

ended up with the money then what you see is a  massive massive transfer of cash to the rich and  

what I think is quite interesting if you  were to ask an economist that question  

five years ago before Covid, what do you think would happen if we gave the richest 5 million  

adults in the country 140 Grand each  they would all say to you - inflation crisis

they would all say that to you they would all say that to you

and yet what happened was we did that  we immediately had an inflation crisis  

and everybody says well because of the war in  Ukraine and you know you will remember it was  

you know when this channel was, the invasion of  Ukraine was when this channel was much smaller  

and I called you up and I was like this is gonna be a [ __ ] disaster you know of course the war itself 

is a disaster right but looking at it just purely from the perspective of Western Economies  

the British Economy; I said what this will do is it will take entirely the blame for the 

inflationary crisis they will blame it all  on Ukraine and people don't remember but the  

inflationary crisis started before the invasion  of Ukraine right um and it was always inevitably  

going to happen in my opinion but as soon as that  all happened I was like this is I cannot tell  

you what a disaster this is for our economy and  for the future of our our society and I I don't  

at all want to undermine what's happened to the  people of Ukraine that it's of course a disaster  

right for I am a British Economist my job is to  analyse the UK economy as soon as that happened  

it was a disaster for Western European economies  and the American economy because if that hadn't  

have happened we would still have seen a mass  inflationary crisis and it would have been very 

difficult to blame it on anything other than this massive accumulation of cash of the rich during  

Covid but as soon as that war happens you have a very easy scapegoat it's because of the war 

it's because of the war and it means that what's happened is the biggest ever transfer of wealth 

from the government to the richest people in the world, in the history of the world, followed by 

the most obvious consequences you would have  predicted; an increase in inequality and increase  

in asset prices, an increase in cost of living,  decreasing quality of life for ordinary people

and no one is even talking about the accumulation  of cash by the rich it is coming in a little bit  

you know you know and we try to raise that up the  profile as much as we can but you know I would  

really encourage anybody watching this video now  if you haven't seen it go back and watch the first  

video on this channel came out in June 2020 right  before the inflation crisis or any of this it was  

in the middle of lockdown um and I said what  you'll see is massive increase in inequality, massive  

increase in inflation, massive increase in asset  prices and ordinary people will be thrown into  

poverty and probably austerity, all of those  things have happened okay and it's you know

the reason I was right then is the same reason  I've been right for ****ing 15 years because I  

understand that the distribution is important  to the economy which is something that most  

economists miss and you know if you massively  increase inequality when the economy is closed  

how can you expect not to cause a decrease  in living standards? where has the increasing  

wealth of the rich come from if not from poverty  for the rest? you know if they become richer they  

will take a larger share of the resources you  know and and I think we'll do another video on  

why economists mainstream economists have missed  this so much because it it breaks my heart the  

pathetic idiocy we see from economists so much  um but the truth is they're rich they're from rich  

families, they're from rich backgrounds, they're  getting paid they don't give a **** right  

um people need to be aware that inequality has  increased massively in the last three years and  

that when inequality increases, broad living  standards fall, not only that but it creates a  

spiral effect because the end result is ordinary  families will sell their assets to support  

themselves which means they get poorer still which  means wealth inequality inequality gets bigger still  

you know another video which people should watch if they're here watching now is the flows of wealth

video which makes it clear once inequality  gets big it starts to spiral out of control  

so the end message here is number  one that money went to the rich  

number two if you give the rich a ton of money it  creates inflation and makes ordinary people poorer  

number three that creates increased  flows of wealth from the middle class  

to the rich which makes the situation  worse still so you know really this  

is a dire emergency situation I can't put I  can't put any finer a point of it on that um

um but unfortunately most economists from rich  families from rich backgrounds getting well paid  

studied for many years not looking at inequality  at all they will not fix this they will not fix this 

honestly they will not fix this and you know the reason I made this channel  

is because I am very aware  if nothing is done about this  

the economy will collapse very  seriously in the coming years so

this is why I go on and on about 700 billion  pounds you know um and it will be 800 and it'll  

be 900 and I will keep the viewers informed with  what it is um but something has to be done but  

I think using this number is is a great  opportunity I've spoken about the channel  

to attack the government and not just in this  country in the U.S I think it's *eight* trillion  

I'll put the exact U.S number in the description  because I know we do have some viewers in the U.S  

um ask them where the money is now because they  cannot answer that question they cannot ask that  

question and if they did answer that question then  it would be unbelievably painfully obvious what we  

have to do to fix this crisis if we were to tax back the rich just enough to make them as rich as  

they were 3 years ago we would have enough to give every single adult in this entire country  

£14,000 each and this crisis would  be over um so go at em and you know  

write to your MP, call into the radio station, go  on the news, put it on your Facebook, tell your  

friends and family, follow us on everything; TikTok, Instagram, Facebook, Twitter of course YouTube  

share these videos um and let's get something  done about it man because if nothing is done  

things get worse and worse but we can make change  if we're willing to, to hold these guys to account  

rich ****ers

money currently is flowing from the government to the rich leaving the

government with big piles of debt and the  rich with big piles of money there's one other  

thing they can do with that mass amount  of income they can buy your mom's house