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Why Inequality Starts Becoming a Problem Now

Economics Explained 628 views

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Comment from : @EconomicsExplained

The problem is what the wealthy are buying - the essentials for survival - homes, land, utilities, assets in education and healthcare They have commodified the things everybody needs at a basic level Even upper middle class and middle class people have turned housing, an essential item, into an investment item Once you commodify these things there are incentives to maintain a level of scarcity Thus pain
Comment from : @joelhenry5489

I don't see it as being that bad for the economy to funnel resources into satisfying the consumption habits of the wealthy is not as clear as described It was proposed that the resources are better put into stocks to fund industries and generate production capability that lasts into the future However, just investing in stocks could drive asset bubbles unless there is actual increase in demand for the outputs to spur on expansion of production Looping back to my opening statement, having industry respond to the consumption habits of the wealth bcan/b lay the groundwork for improved future products for the nonwealthy, eg, smartphones Admittedly, there are other forces in play, such as offshoring (Samsung, Apple, HuaWei), but there was a time when Motorola was in the game
Comment from : @andrewhancock2451

I wish this were focused on the US, which I think is in a much more problematic state now than most (or all) of the rest of the world
Comment from : @ethanadams8165

7:40 !! It is important to choose metrics I'd rather focus on absolute worth rather than relative
Comment from : @AndyTheodorko

What about all the debt owned by companies like banks?
Comment from : @Lamalas

Karl Marx was rightbrThis is capitalism and that’s why US elites hate his ideabrJesus Christ was first Communist in human history
Comment from : @dohminkonoha3200

Amazing ! I didn't know it was possible to sound insufferable in an Australian accent
Comment from : @rsmith4339

"starts to be a problem now"???!!! That's a new level of naiveté
Comment from : @niccoloricardi4827

people that are poor cannot innovate if they spend all its time working to survive
Comment from : @JesusAlfonso-k9f

That ain't it
Comment from : @ElMattador89

The 95 of households that own other side of the global debt are mostly the wealthy, right? So, net net if the proletariat decided to default en masse the people it would hurt the most would be the same people that they want to tax Strain the system and get austerity 🤷🏼‍♂
Comment from : @JonathanPoland

What's sad is that the human race is obsessed with numbers Sustainable living will be at a tipping point soon Some sense of balance must be found Basics like shelter, food, clean water, healthcare are in trouble
Comment from : @twhelostl61

Harris Elizabeth Clark Daniel Hernandez Daniel
Comment from : @DorianVegas-e6e

READ TOBIs comment brThe video is ignorant politically and socially brbrTHE RICH HAVE YOUR MONEY brand they're getting more every day brM
Comment from : @marksandsmith6778

It never came to the point Why Inequality Starts Becoming a Problem Now
Comment from : @walterdennisclark

Read Rao's Solution available at Book Baby Fictional book but good read with a practical first step solution to solving this problem
Comment from : @davidlentz1946

13:07 Epic typing skills
Comment from : @Merkaba85

And why "improving output", "increasing output", is so important? Seems like an overconsumption scenario kind of idea output should meet a demand, especially a healthy, useful one Increasing output always doesn't make sense, it could have to decrease even sometimes The best answer in some cases is to decrease, if, for example, the population is decreasing, no? Or is it "no, we create an artificially higher demand with marketing and continue increasing demand and output"? Seems like an oversimplified and superficial statement being repeated over and over "Increase output", "improve output", " to generate more wealth", "to improve the economomy"
Comment from : @danvisk33

time to eat the rich Literally
Comment from : @HexaDecimus

This is why hosting a channel exclusively about economics isnt going to be ideal when talking about healthy economies Economics doesnt have a reliable language to deal with one of the most important facets of healthy nations - Trust Capital used to be linguistically synonymous with trust back in the day, but it has become so far seperated from it in some of the most advanced modern economies you can have alot of capital in a country with little to no trust in its institutions brbrTake america for instance - Trust is at an all time low and its debatable whether or not the majority of Americans still beleive their country is a democracy The impact this has on everything economically related is very poorly communicated in this video, and by the sounds of it was relegated to a footnote about consumer confidencebrbrIts not farfetched to see spending money as ok, while also having zero trust in the institutions or major orgnizations that control those systems
Comment from : @ryanwporter

0:50 ^
Comment from : @androidtv8114

poclie pay me 110k a year navy 80k a eyar
Comment from : @jarrodyuki7081

Can you do a dive into a book called "neo-eco-liberalism"? I'm curious about it and what it has to say from an economic perspective
Comment from : @ParadoxHorde

Until 5:40 i did not know how serious CR7 solarium burnt skin is :o
Comment from : @mirkovicaleksandar9071

Why do you assume that industrialisation gave better opportunities for everyone? Can you explain what you mean with this Did it give better opportunities for artisans to make a loving and being their own boss?
Comment from : @glennrasmussen56

This is such a bullshit statistic that' I'm shocked you're taking it seriously Didn't know you were a dirty commie
Comment from : @Bigjunk9999

I get the feeling that I got bamboozled by the title of this video brbrIt does not address real state concentration on the wealthy, spendings on financial market rather than producing labor/valeu and it ultimately only endorses trickle-down economicsbrbrNot gonna lie kinda disappointed with this content
Comment from : @matheuscardoso1

I have equal opportunities Some people are better, others are worse Other than socialist industries like aerospace, I have an equal opportunity to beat the best billionaires Practice and very hard work do pay off when you're strategic about it
Comment from : @brentsrx7

The real issue is the lack of purchasing power of currency That means the average worker can no longer own their own home or car Guess who can: billionaires The super rich are a symptom of the underlying problem The real focus should be on governments inflating and devaluing currency
Comment from : @Idris-ku9xm

EE will always defend the right wing economics Thanks, bud!
Comment from : @TheAvtrey

Ok, you can tell if you are poor, only by realizing others have more than you😅
Comment from : @dannalin4937

It's been a problem for 40 years
Comment from : @ConanDuke

why is equality a good thing? besides it is god who decides which currency he will upvalue and which not
Comment from : @divineantiwokewarrior

So we’re worth 19 million What does that put us in world wealth percentile
Comment from : @robertmeyers3640

You work 60 hour weeks to barely afford rent to the landlord who spends the money you made on the luxury car you built What a time to be alive
Comment from : @TheLeafyo

Its so sad that you are so intelligent that sometimes you make me envious, but at the same time you are blindbrConsider getting out of technocracy for once
Comment from : @alan199360

Investment by the rich mostly only benefits the rich The ones that can afford to buy stocks and bonds benefit the most The rest will only get a job, if they are lucky Capital gains tax is much less than taxes on wages as well That only increases the wealth concentration towards the top
Comment from : @bipl8989

Equality is the greatest problem that always leads to genocide and depopulation Braindead libs never learn The problem is, they won't learn, and their screeches will cause EVERYONE to suffer
Comment from : @gregorygan2077

Thanks
Comment from : @frenchcreekvalley

Extreme inequality leads to the end of a civilization the rich stop working because its easy to stay rich while the poor give up knowing they have no chance
Comment from : @MrDoktorAndrey

It is a zero sum game actually Check your facts next time!
Comment from : @VelhaGuardaTricolor

the factory example is only true if the rich person builds a NEW factory if they are just buying a factory already built thats already producing things than it doesnt add anything to the economy in fact i would say they are buying a already up and running factory so that they can consolidate a competitor into their business, that usually means less choices in products for consumers to choose from which drives prices up and quality down which is bad for the economy
Comment from : @alexnorth757

Yup wealth inequality paralizes the economy
Comment from : @MrMikeymontemayor

As it always seems, the world is still a giant pyramid that is only getting higher and more narrow This is what happens with greed and limited resource Get it all, whoever is at the top Get it all and run, because everyone underneath you runs similarly when reality sets in and there is no longer enough
Comment from : @blisk7571

3:56 - "The Asian Pacific region specifically" Fantastic pronunciation skills dog, kudos
Comment from : @raymondgreen7584

Do not believe in equality, as we are born different in capacity,there will b the weak the strong the good the bad n worse the most evil n the greedy,even from the same family rarely willingly to share , we r born equal only thereafter n hereafter differences begun,!
Comment from : @Pockipockipocki

how in the name of god the "world" is in debt? kkkkk to whom?
Comment from : @MsRafaelRGO

It was not the pandemic, it was our politicians who shut down the world Not covid, but demagogues
Comment from : @SnakeQQeyeS

Inequality creates revolutionary tendencies Need to be careful
Comment from : @Finance101official

It's almost like money creates all of our problems or somethingweird
Comment from : @Bam_1776

Inequality has been a problem for a while now It's just that it is getting to the point that it can't be ignored that ordinary people cannot live decent lives any longer, and that struggle soons turns to resentment, intolerance and discussion
Comment from : @spaghettiking7312

You are missing out a very important tipping point: Peak Baby! brSince a few years, the global number of births is declining brThat has big implication on demographics, mainly afing society and a shift of producer economy towards consumer economy With less people to produce, either AI has to take over or we will see massive inflation (that we already see on a global scale) brI'm sure, we won't recognize the world we living in, 20 years ahead of us brbrPS: will you do a video on the Peak Baby phenomenon?
Comment from : @chriswondyrland73

Taxation is theft
Comment from : @luiscanamarvega

The slaves will revolt
Comment from : @tomlane8826

There is nothing wrong with inequality We are NOT all equal Some are smarter or more ambitious; some are more laid back and easy-going; some work diligently in their formative years to attain a worthwhile education and a foundation for wealth-building while some prefer to party and enjoy themselves insteadbrbrPretending that we all deserve the same results in life is childish and irrational In today's world, the gap between productive people and minions is understandably wider than at any time in history Technology is making basic manual labor almost obsolete If you don't have a useful skill by the time you are in your mid-twenties, it's too late
Comment from : @johnnynick3621

6:36 yes in the west but communism industrialised the east
Comment from : @uggali

0:46 the most naive retatarded statement to come out of capitalist brainwashing What happened to equality and democracy? Thank you millionaire for the opportunity to labour for you and increase your wealth so you can pay me at market rate regardless of the actual cost of living
Comment from : @uggali

confusingwhat were u trying to say overall
Comment from : @counterpoint9260

haha that's my hometown on 2:07 ! Odessa, Ukraine
Comment from : @max_ch3

Higher debt, higher taxes Seems obvious there is a limit There is no point being richer in the future if you are broke now
Comment from : @user-zf1yz9us1r

I love reading the comments and seeing how the kind of rosy-tinted glasses aproach to inequality that was exposed in the video does not cut it anymore Having a higher concentration of wealth has never been good for any society, and our robber barons are destroying our societies It's time to back the economy and the political power
Comment from : @josecipriano3048

You lost me at the ludicrous claim that humans have unlimited desires There's plenty of research to demonstrate that this simply isn't true
Comment from : @lachlanhines7644

These videos are great, but why do I always feel like they end right before I think they're finally gonna give me an explanation my smooth brain can understand?
Comment from : @ryanstocks4298

Impressive how you've made a 14-minutes long argument to try to prove that we shouldn't revolt agaisnt blatant inequality "because it's actually good for the economy, guys, just trust me" Heck, some of your graphs even contradict your statements "We were going in the right direction until recently" That's why Global Inequality rose from 35 on the Gini Index in 1980 to 41 in 2015, before it's decline ?
Comment from : @melvinjones6862

Keynes
Comment from : @Morlyst

The rich get richer and the poor get richer?
Comment from : @ramuk1933

Global wealth disparity doesn't explain on a Country level the inequality It can mostly be explained by looking at the housing market When the middle class cannot afford to have their own land it is bad Economists cannot predict economies or even fix them or a crisis would never happen All they do is treat the symptoms instead of fixing the root problem Like giving someone advice they don't need and agree with xD
Comment from : @davidlehnhardt3245

Bruh the stadium you show at 5:29 is incomplete, talk about inequity They can't even complete a century old stadium hahahahaha
Comment from : @juanjoseph

Is government debt not just a mechanism for poor citizens to pay rich citizens? Example: I'm not certain, but I believe bonds are held mostly by institutions and the very rich Even better example: when interest rates go up, normal people have to pay more to their mortgages and credit cards, while rich people collect more from their financial assets Am I wrong? I don't claim to understand such things, so someone please correct me
Comment from : @freeideas

How much inequality is healthy for the society? Is there any formula showcasing this
Comment from : @amin8202

Greed Still capitalism is necessary
Comment from : @no-mz1ie

Colonies on average were a net drain There are a few exceptions to this rule but over a long time span the vast majority cost empires money, it did not make them rich, rather they subsidized their colonies This also checks out with reality with more heavily or lengthily colonized countries having better GDP per capitabrbrPerpetuating the lie of exploitative colonization is quite literally the domain of ideologues pretending to be economists
Comment from : @Pattern_Noticer

Surprised there was no mention of the effect of increasing wealth by leveraging wealth and bypassing the goods and services production has on an economy Sometimes called 'rent seeking'brbrWhat happens when there is a monopoly on wealth in the Capitalist society? Have we reverted to effective Mercantilism?
Comment from : @wandre_canada

7:56 Excellent point There are plenty of billionaires who deserve their wealth because they actually added value and brought about innovations that improved life for everyone, so they rightfully deserve their wealth
Comment from : @Leanzazzy

That was a lot of information on IOU’sbrYou said- you would discuss what the consequences were if it was NOT paid back brAnd how could it be paid back?brThat is a mountain of STUFF in this world that has made the planet sick !brPlastic/ landfill/ trash and we don’t need it
Comment from : @AnitaCorbett

I really don't see the difference between consumption and investment brHow beneficial for the economy it is only depends on what this cashflow is being allocated towards by the recepient
Comment from : @IIIIIawesIIIII

Concentration of wealth also affects other stuffgovernment policies and laws via "interest groups" Lol
Comment from : @social3ngin33rin

The bigger problem with economic inequality isn't the economic side, it's the social side The evidence is overwhelming that the greater the economic inequality is in a society, the worse the social outcomes are for those at the bottom, particularly in criminal justice systems It doesn't matter much if everyone gets richer, if that increase in wealth leads to worse outcomes for those at the bottom
Comment from : @darthrainbows

thanks for the informations ❤❤❤
Comment from : @Hamza-dx5hz

please stop the sound effects
Comment from : @chrisrenteria2042

the way he talks is just so distracting I dont know why
Comment from : @Rain-pg2zc

great video! just my 2 cents but on the part of the wealthy investing to "create jobs", isnt most of the wealth retained by the shareholders/corporate themselves? eg google and many other big companies hitting record breaking profits but retrenching their employees?
Comment from : @shayne6138