Gary's Economics (Actually explained)

Stevenson. The Traders, economists, traders/economists out there. So I thought I'd read through his 76-page uni thesis for fun. It did take me a few hours, but I'm gonna explain it in a few minutes. Let's start off with the 2008 financial crash, where interest rates fell across every developed economy and basically never recovered. And while interest rates were low, asset prices from houses to stocks went up. But since banks predicted that interest rates would go back up and then asset prices would calm down. And every single time, experts were getting it wrong. Which is where Gary comes in. He was trading at the time, and he thought that mainstream economics was missing something. Alongside all of this, inequality is rising dramatically. And people in these circles were debating, why has it risen? That Gary, instead of looking at inequality as an effect of all this, was thinking, what is inequality causing? He circled back to saying that actually, extreme concentration of wealth at the top is the thing that drives asset prices up and interest rates down. Before this, it was never properly modeled on. Why wealth concentrates at the top because rich people spend differently to poor people. Once you've achieved a good lifestyle, people tend to buy more assets instead of consuming more stuff. So they'll keep buying and owning a rather limited assets, that capital in the economy is owned by a disproportionately small group of people. Now, I don't have an issue with people buying whatever assets they want. It is true that a small are limited supply of assets, then demand, prices go up, keeps the rich richer and poorer poorer. Most Gary's points that he makes in this dynamic, from disadvantaged backgrounds will no longer be able to buy an asset for retirement and give an inheritance. Causes feudalism. Your position socially is not determined by how hard you work, but inheritance with. Basically, inequality, high asset prices, interest rates are all big, rather than one cause. I'd be optimistic than him. Changes in technology and culture, I think we will discover new ways to break the cycle. The more you tell yourself that you are doomed, then you are going to be doomed. Naive, you know, you tell yourself that you are doomed, then you are going to be doomed. Naive, you know.