How Covid £700bn Is Killing the Economy
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The £700 billion refers to the total government deficit since the beginning of Covid-19 as of February 2023. Here is our video on how this money ended up with the rich: youtube.com The total size of the government debt (and thus the total deficit since covid) can be found here: tradingeconomics.com The total US deficit since the beginning of the covid is actually $8 TRILLION! (I said 3 trillion in the video), this is about $25,000 for every man woman and child in the US. For a deeper understanding of the concept of money and what it is, watch our "What is Money Video" here: youtube.com SUBSCRIBE, SHARE & START A CONVERSATION SOCIAL MEDIA: WEBSITE - wealtheconomics.org TWITTER - @garyseconomics FACEBOOK - @garyseconomics INSTAGRAM - @garyseconomics TIKTOK - @garyseconomics Spoken by Gary Stevenson GARYSECONOMICS Uploaded by Simran Mohan MOHAN MEDIA
The video presents a polemic analysis of how Covid-19 relief spending, totaling around £700 billion, disproportionately accumulated among the wealthiest individuals and how this distribution has driven a sharp increase in inequality. The speaker argues that the initial outlay, intended as support for furloughed workers and households, effectively acted as a subsidy that flowed through the economy until it wound up with the rich, who then used the money to bolster asset prices while ordinary people faced higher living costs. A core claim is that non-essential and luxury spending by the wealthy collapsed during lockdown, while essential spending by ordinary families remained, causing a redistribution of spending power through the economy. The narrative traces the mechanism by which government deficits translated into asset and price inflation, with the rich converting the new money into higher asset values and the middle class bearing the burden of rising costs. The presenter then connects these dynamics to broader macroeconomic outcomes, including inflationary pressure attributed to money creation rather than purely to external shocks, and predicts ongoing negative impacts on living standards for ordinary households if such wealth transfers continue unchecked. Finally, the video calls for policy remedies, including wealth taxation targeted at the richest, and urges civic action to pressure policymakers to address these distributional imbalances.
Topics · economy · inequality · public_policy · inflation · debt · wealth_distribution
Questions answered
- What is the £700 billion figure supposed to represent in this analysis?
- It represents the total government deficit since the start of Covid 19, i.e., money the government spent beyond tax revenue.
- According to the video, who ended up with the Covid 19 relief money?
- The speaker argues the money predominantly ended up with the richest individuals through increased asset prices and ongoing wealth accumulation.
- How does the video link wealth concentration to inflation?
- By inflating asset prices and consumer costs through large-scale money creation and distribution to the wealthy, which shifts wealth and raises living costs for others.
- What policy solution does the presenter advocate?
- Tax back the wealthiest to fund direct cash transfers to every adult, effectively distributing resources more broadly.