How growing BILLIONAIRE wealth affects YOU - Gary on LBC with Clive Bull
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Gary on LBC with Clive Bull Broadcast on 23/05/2021 @ 00:20 Uploaded with permission from LBC lbc.co.uk SOCIAL MEDIA: WEBSITE - wealtheconomics.org TWITTER - @garyseconomics FACEBOOK - garyseconomics INSTAGRAM - garyseconomics STOCK FROM: Christopher Burns + Henry & Co - Unsplash Spoken by Clive Bull LBC Spoken by Gary Stevenson GARY'S ECONOMICS Uploaded by Simran Mohan MOHAN MEDIA
The discussion centers on the widening gap between the rich and the rest in the UK, prompted by the Times Rich List figures that show a substantial rise in wealth among the top 250 individuals. Gary Stevenson explains that the pandemic response, including central bank money printing and fiscal interventions, has largely boosted asset prices such as housing and stocks, benefiting the super wealthy while ordinary people face affordability challenges. He argues that this dynamic creates a cash flow from the majority to the richest, driving up house prices and leaving wages stagnant, which in turn undermines housing affordability for families. The conversation connects these macro trends to everyday problems, like how access to housing shapes opportunities for the next generation, and links public policy choices to the distribution of wealth. Clive Bull and Gary explore possible remedies, including targeted wealth taxes and international coordination, while noting political obstacles and the lingering question of whether higher taxes on the rich can translate into broader economic benefits. The segment also revisits historical context, noting higher top tax rates in the post-war era coinciding with more affordable housing, and suggests that wealth concentration today may require deliberate policy action to improve living standards for ordinary people.
Topics · economy · public_policy · housing · tax_policy
Questions answered
- What is the proposed mechanism by which wealth concentration affects housing affordability?
- The idea is that when wealth is concentrated among the richest, they buy assets like houses and stocks. This increases asset prices and rents, which makes housing less affordable for ordinary people because the cash flow from the majority goes to the wealthiest owners.
- Why is international tax coordination highlighted as necessary, and what is the barrier in the UK?
- International coordination is seen as necessary because capital can cross borders, allowing the rich to shift assets to lower-tax jurisdictions. The barrier in the UK is the government’s stance, which is described as blocking a coordinated global minimum tax on corporations, hindering efforts to ensure the ultra-wealthy pay a fair share.