Giving out money doesn't make us richer
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Description
Money is not food. Money is not energy. Money is not housing. Money is not healthcare, okay? If we give everybody money, we have not increased the amount of actual resources and assets we have in our society, okay? So you don't make society richer by giving people money. You make society richer by creating and having more resources and assets. So if I give everybody more money, all that happens is the prices go up. But if I give you a bit of money and him a lot of money, then he gets richer and you get poorer because you have a bit more money, but the prices have gone up relative to both of your increases in in money so I think this is the thing I want and the reason I'm hammering this down is because they did that in COVID and they got away with it and to be honest the the conservative government lucked out with the Ukraine war because that took the entire blame for the inflation which in my opinion was caused by their massive increase in inequality
The speaker argues that simply giving people money does not make a society wealthier because money is not the same as physical resources like food, energy, housing, or healthcare. He emphasizes that wealth comes from increasing real resources and assets, not from inflating the money supply. If everyone receives more money, prices rise and the relative purchasing power of that money does not improve for the population as a whole. He illustrates the inequality problem by suggesting that distributing money unevenly can make some individuals richer while others become poorer, since prices adjust upward with more money chasing the same limited resources. The speaker also critiques past policy responses, pointing to the COVID era and shifts in government policy as contributors to inflation, and argues that inflation was driven by rising inequality rather than by the distribution itself. He concludes that solutions should focus on increasing real wealth and asset creation rather than merely increasing cash transfers, and he criticizes policies that externalize blame to circumstances like war instead of addressing structural inequality.
Topics · economy · public_policy · inflation · inequality
Questions answered
- Why does giving everybody money not increase society's wealth?
- Because wealth comes from real resources and assets, not merely from cash; increasing money without increasing goods leads to higher prices and inflation, leaving real purchasing power unchanged.
- What should policy focus on instead of distributing money equally?
- Policy should aim to increase real wealth by creating and expanding resources and assets, such as improving access to healthcare, housing, and productive investments, rather than just transferring cash which can raise prices and inequality.