I just want my money to keep outgrowing the inflation rate. That’s why I'm looking for companies now to invest my $120k savings. Just don't know strategies to employ to make significant gains

The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?

Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.

Gary, in this vid you mentioned a point I've not seen you use much - that the very rich tend to consume labour which helps them if wage growth is stifled - I think this is a powerful point that should be made more often.

Something that has been worrying me for some time;- Workers are paid so little that the government gives them Universal Credit, so the companies get cheap labour at less than market rate, the companies get tax breaks and then they get massive subsidies as well. As a result they are propped up by public money which enables them to make massive profits and give dividends to shareholders who make money for doing nothing. How do we break this cycle without destroying everything?

I am baffled that you have to state the obvious. It sticks out like a sore thumb even to an uneducated moron like me. Thanks for your work.

The fact housing is classed as an asset in itself is where we’ve got it all so wrong

Gary there’s no other way to put it you’re an absolute legend. Thank you for all your work and keep at it.

20 odd years ago I was always wondering why Gordon Brown would say he was controlling inflation by keeping it at 2% yet house price inflation was in double digits every year! Everyone pays for housing in some form or fashion. Whether it be through rent, through a mortgage or even if your children and your parents are paying for it therefore giving you less pocket money. It baffled me that it was acceptable not to include housing inflation in with the general inflation index. And NO ONE called him on it in the press. And it’s been going on ever since. If you ask most people the difference between standard of living in countries it’s literally the cost of housing. It’s the most important index in the western world esp. in the UK. And no one wants to officially factor it in. It’s Just plain ridiculous.

Gary, l ABSOLUTELY love you! You make economics understandable. ❤ As a 63-year-old mother who has worked hard ( like many others), it all makes sense. I've never been good at the more complex maths or stocks n shares ect; all i know is that i get nowhere. Now, I've turned into a preacher who talks incessantly about Gary's Economics to all my friends ,haha!There's a grey tribe following you, Mr . Your like Robin Hood, except your not robbing from the rich to give to the poor because we all know that morally wrong. The bloody rich have got the AAA* in that one 😉. You are educating us instead, and I thank you for that. 🤓💕

I remember the first time I realized that RPI excludes asset inflation, thinking “wow - what a con”. It is the most absurd omission but, of course, it favours the rich and powerful to use this as the basis for public discourse. Well done for making a noise on this. More people need to understand this stuff.

Brilliant channel love listening to you, cheers mate.

What I’ve seen in my time is as soon as wages go up, The price of goods and services go up. It’s like a catch-22 mate. It seems like the goal of our government is to make sure financial freedom must never be attainable, and they will keep moving the goal posts to make sure of it.

It drives me crazy that no news commentators or politicians talk about this stuff. They're so out of touch with the concerns of anybody under the age of 45.

Excellent stuff Gary keep it going

2009, interest rates went down to 0.5% when we should have taken the pain with a natural house price correction. Kicked the can down the road and here we are. Coulda, shoulda, woulda. I now find my self with a ridiculously valued house, with a very small mortgage. Happy am I? Nope, how are my children ever going to be able to afford a house. Why do we celebrate huge house price rises? Our kids, and then our kids are affected, therefore society.

Inequality doesn’t in itself cause land price inflation (or asset)… But high land prices are inversely related to wages because high housing costs forces people to need to work longer, it’s forces a pseudo increase in the labour supply. If land was cheap wages would be higher because workers could afford not to work… Also, worth considering that economy develops, industry becomes more efficient, goods become better and or cheaper; the central banks then target that (hedonics applied and multiply the effect) and cut rates in response pushing up asset & land prices. Because of the central bank cpi targeting regime any advances in the econmy benefit only the rich as economic surplus is captured in rental values… Only Land Value Tax can stop this…

Gary, you're a hero

Keep spreading the word Gary thank you

This is something I have spoken about for years. The relationship between the essentials, wages and assets is out of balance. Despite recent RPi and CPI inflation this increase in the cost of goods and services has not kept up with asset prices, particularly property prices.This hass resulted in anyone buying property purely as a home have had to spend a greater part of their income on purchasing or renting a home leaving less for other items. This in turn has caused the other parts of the economy to contract resulting in companies going bust and job losses. If those left ask for higher wages then that can only be offset by more being charged for goods and services causing inflation. The additional wealth created flows back to the wealthy and they use it to buy assets which pushes up the cost of these including property.

Its great to hear the economic truth but annoying politicians and media channels ignore your inflation analysis! Certainly more "affordable" homes need to be built using efficient modern construction methods (high quality prefabricated homes) to keep pace with demand.

Great video Gary, I’ve almost finished your audiobook. Thanks for sharing your knowledge

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!

Top man Gary

Thanks Gary. That was very clear.

Keep spreading the truth Gary. As well as a introducing a wealth tax, we need the introduction of an actual real living wage!

Just got your book Gary - keep up the good work

these videos are so much more concise and well written than your older videos, well done mate

Thank you Gary. Thank you for being you: unselfish, knowledgeable and a good human being.

Problem is that those „rich and wealthy” are also decision makers - they don’t want to put wages up and lose cheap labor!

Well done Gary - keep up the good work.

Gary and the comment section. Thank you so much for the content. This is essential discourse! So many of us are just ignorant to what is going on.

I really think you're onto something with this one - specifically the fact that ordinary people create goods and services (and assets), but asset holding essentially creates nothing, yet gives the owner tremendous market power. Adam Smith also recognised the hazard that this posed to the growth of productive wealth.

Another good video dude - thanks

Thank you for making that clear. I'm gonna share this one!

Thank you for your work!

It seems to me people are opting out of work these days in the UK, People are asking themselves what's the point? Who can blame them?

Remember talking to a banker in the late ‘80s about inflation and suggesting that housing prices should be included as they were increasing rapidly. He disagreed but of course the main people to benefit are the banking community that lend the money.

This is crystal clear, thank you. I'm really enjoying your book, too! 👏

PRICE inflation, WAGE inflation, ASSET inflation. Really good and straight-forward explanation. And, indeed, of concern. Thanks, David.

Congratulations on your book! Just finished listening to the audiobook version, and it was riveting. I'm going to recommend it to my book club. We'll done.

Just finished the book Gary on audible - you are a great narrator it brought the book to life fantastic listen. Please do more tv work

CPI and RPI don't measure inflation, they measure changes in price, which is a symptom of inflation.

IMO the inflation numbers are deliberately manipulated to show a lower figure than they should. This obfuscates how the wealthy asset holders are getting richer, whilst also enabling politicians and business to justify minimal wage increases for ordinary people. I don’t see how they can maintain that inflation was below 2% PA for most of the 2010’s, when rents and property prices were going through the roof (pardon the pun) and making accommodation increasing unaffordable for the many.

You’re gifted at explaining and revealing this so clearly. It seems so obvious but even armed with understanding and underpinning knowledge the next steps are opaque. I’m not sure there’s a political party with raising wages as a manifesto pledge, or even redistributing wealth via raises in UC. Lots of carers aren’t unionised. Foster carers and TA’s for example. Coming together collectively seems impossible without clear direction and signposting.

love all your videos. You have opened my eyes on a couple things that I didnt realize, but this is one thing Im sure many young people are aware of. Price to earnings ratio of stock meaning replacing earnings in retirement is more expensive. Same with housing relative to wages. Its crazy that older people tend to deny this fact. Causes plummeting birth rates of course

Fascinating analysis, spot on Gary

Thank you so much for these videos. East London represent 🙌🏼

It's astounding how global this problem is and how relatable this is even in Singapore. Housing prices have soared to astronomical levels here compared to wages and it's really just a hidden salary cut for almost all workers since 2019. Meanwhile our government is gaslighting us with smaller and smaller public housing.

It would be great for you to go further on this. Specifically why the media and general economists think wage growth causes inflation and why they’ve got it wrong. Great video as always. You have a brilliant way of simplifying things that tend to confuse.

Loving the book Gary, really well written.

Unimpeachable insight as always, Gary!

The politicians know the solutions but they're all doing very nicely thank you very much #rentierism #landlords

I'm not surprised you are getting attacked Gary - you are providing straight-forward breakdowns of what the elites would like to keep unnecessarily complex. Keep up the good work.

Love it Gary! A graph or two would go even further to simplify this for the lay :)

Gary, loved the audio book. Touch of the Good Will Hunting going on and classy final paragraph that made me laugh and shout all at the same time. Appreciate you bringing your knowledge, expertise and life experience to bare in this way.

Thanks Gary.

My wages in real terms as a public sector worker have fallen 20% since 2010. ... despite having more responsibility 😅 so they have probably fallen 45% if asset prices arr included...

Excellent stuff - this is a point I've often thought about - basically the cause of the 2008 crash (which is the root of nearly all our problems today). Well said - I shall be exploring your other videos

Really well explained. Thanks

loving the book Gary, first one I've read in years!

Love to hear the truth from you, Gary! Truly the man we need to save our country.

as always, bless you for your work. as always, common sense is an uncommon virtue.

I’ve been sharing the videos with my friends. I’ve been sharing the videos with my mum. Keep up the good work.

Asset inflation is also driven by an ever increasing money supply, which is the central bank's responsibility as they set the Fractional Reserve percentage and they collude with corrupt, grifter politicians to implement QE. The asset class, which now includes most politicians, is closer to the money printers and they use the extra wealth created by the banks to buy assets. They know that holding central bank currency as a store of value will only make them poorer. It's the Cantillon Effect in plain sight.

Spot on👍

Great explanation, thanks!

Thank you Gary.

High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.

Thanks for your work and campaigning against wealth inequality!

Good stuff Gary, great points on separating inflationary measures and the incentives of central banks not to fix the asset problem.

Housing investment also discourages investment into small / creative businesses that make or employ people. After all why invest in a business idea when you can buy and flip a house and guarantee a profit.

Please keep repeating the message, Gary!

Listening to this as I prepare for my economics exams for the MPhil at Oxford

I’m so grateful to be educated about economics in a way that makes sense and explain why and how this inequality of security and wealth happens. Thank you for your learning at LSE and Oxford, making your thesis available and sharing your knowledge. This act is righting wealth inequality which leads to can’t afford to be educated class.

Another amazing video

Great video again. Incredible that the system is so deliberately skewed in favour of the rich

Hi Gary, loving the channel, the book and your journey. I've been following for over a year. Just interested in your take on how much of an impact Airbnb is having on asset (housing) prices. People I listen to tend to mention it as a bit of an afterthought. Do you think it's been a significant contributor to the escalation in house prices over the last few years?

Most sensible economics video I have ever seen on KZfaq. House prices in the U.K. are clearly far too high in comparison to wages. You can only fix that in 2 ways and 1 of those ways bankrupts anyone with a big mortgage…. So let wages inflate!!! Absolutely love your work mate you should do an interview with David McWilliams.

I would love to see you devise a formula for a new measure of inflation, as an alternative to PPI and CPI, that takes into account asset prices, then plot a graph of this over the past few decades! Maybe also with plots of PPI and CPI for comparison

Official measures of inflation have always been relatively useless to the average man on the street and outright misleading at worst. When the current cost of living crisis started kicking off in the UK 3ish years ago. A poverty campaigner was in the news suggesting that there needs to be a separate inflation calculation looking at life's essentials as there are many products in the "basket of goods" used for inflation calculations that no struggling person would ever buy. Sometime later I read an article/press release from one of the statistical agencies saying they'd looked into it and that food wasn't increasing any faster than general inflation. I thought that's all well and good but it's hardly a surprise when we're living through the highest inflationary period in 30+ years. So as whilst bored one day I figured I'd do a bit of self direct research on food inflation in the UK by comparing some records I had from when I was a student in 2005 and late 2023. What I found was that while the Bank of England's official number on inflation since that time was 75% many of the cheaper items that I had lived off as a student have increased by as much 200%. That quite a large margin of error for anyone to take into account when planning their finances but is absolutely crippling for the many people living on low or fixed incomes.

Said clear and simple. thanks for getting the message across to lay people

Excellent explanation, which raises more questions than answers. Within every class of inflation there isn't just one rate of inflation as individual consumption levels differ. The big difference is that CPI effects people on a daily basis and is therefore far more noticeable.

I always thought there should be a limit to the number of properties that can be owned by a person or private company

Can you talk about what causes inflation and why asset inflation occurs? Perhaps a discussion about fiat currency? Something I think is an important talking point is that poor people tend to only hold fiat currency while the wealthy hold assets that outperform the currency in inflationary terms. What about backing the currency with assets to help to level the playing field?

Thank you for raising this important topic Gary. Totally agree. It may also be worth clarifying the basic calculation why asset inflation increases more than price and services. If you look at various fundamental data, you see that the total amount of money has the strongest correlation with house prices. Because the amount of money determines the actual value of money. Not prices of products and services, as our central banks try to make us believe through misleading inflation figures. Then the value of assets is basically constant while the price of assets adjusts according to the total amount of money available in the economy. While prices of products and services are mostly adjusted according to our wages. The winners of this "lie" are, as Gary said, rich people and our government.

This is exactly what has happened in Singapore over the past 15 years. They have policies that encourage wage inflation by incentivising business to pay existing staff more money - worth a look i think.

Gary for a long time I am a proponent of logarithmic real-estate tax. Say you own a flat, you pay real-estate tax, you own two flats you pay 10x the tax, 3 flats 100x tax. This would apply to individuals as well as fonds, and companies. What is your take of this in principal? (Obviously size etc would have to be defined in detail)

Great work Gary. Would love to know your thoughts on the level of tax revenue lost through Private Equity and Family Funds owning so many UK companies and their corporate structures that allow legal tax avoidance. Frequently these are the organisations that own the elderly care services companies.

Super video! One suggestion: never miss the opportunity to clarify what you mean by taxing the wealthy. People's adverse reaction to hearing about higher taxes cannot be overestimated, so it's important to reassure in the same breath almost no one watching this video is the intended target of higher taxes.

Good point Gary. I would say that House Prices have come down around 5% since their peak in November 2022, and wage inflation since then has gone up around 10-15%. That's a real terms house drop of around 20%. Property is relatively now inexpensive to what it was, back to even pre-covid levels. The issue that still remains is interest rates, which clearly don't effect rich cash buyers. I'd advise people looking to buy a house, do it now before interest rates drop or else you'll see silly season again

Thank you for being out in the trenches fighting for a better world.

Gary. I love the work that you are doing including the Trading Game that I am half way through. I feel that your great value to this debate is economic rather than political. I saw you in the KZfaq with the IEA. It was almost comical watching them squirm as they didn’t know what to do with you as you had protection from the neoliberals as you were an extremely successful FX trader. I fear this honeymoon period will not last. For me, for you to continue adding value you need to prevent the Tufton Street mob from labelling you as just another socialist by strenuously avoiding entering into political debates. In my view, if you can do that, you could become central in effecting the root and branch overhaul that the UK economy needs.

Hi Gary....interesting video x

Fantastic content and ideas - my two cents are to include pretty infographics - a picture paints a thousand words

If only the people who could effect this policy would listen and take it on board. Some hope of that happening.

Gary, your argument missed one step: giving more money to the people won’t solve the problem if there’s no cap on how many residential properties people can own. Additionally, companies cannot be allowed to own residential properties as this will mask ownership. The implementation of a cap needs to be introduced gradually in order to prevent a collapse. Eg in year a cap of 20 properties. Year two 19, year three 18, etc or something to this effect.

Great video - really important points well made

Hi Gary. Love your channel, and general approach to this challenge. Good on ya. A minor suggestion - I recommend you flip your video along the vertical in the edit before posting. The reason why, is you talk with your hands. This is great, very useful in conveying your message. However your signalling is reversed which can have a wierd subconscious effect on the point you're trying to land. A good example is when you're mentioning something that is historically low but on the rise. Your hand moves diagonally, but from right to left, opposite to the viewers intuition. Again, this is minor. This whole reversed signalling is something I picked up on a while ago and have taught myself to correct when presenting to an audience. Apparently left handers are very good at this too, and some consider to be a factor in why histocially there has been a higher ratio of American presidents that were left handed compared to the general public - prior to everything being televised and corrected in post, their message would have been delivered via stump speeches around the country. That delivery was everything.

I can't help but feel that Gary's message detracts from the idea that our young people still need to work hard and apply themselves in order to make their way. What I get from Gary is that all hope is lost, and this can't be a good thing for people with aspirations. We need more proactive solutions from such a knowledgeable guy.