I posted this video on YouTube this morning:
The transcript is:
I’m deeply offended by welfare for rich folks.
Now I do not significantly just like the time period welfare as a result of I feel that ‘social safety’ or ‘advantages’ are a lot better phrases than welfare, however it occurs to work fairly properly within the context of creating funds to the rich that they do not deserve.
What funds am I speaking about? Nicely, since 2021, the Financial institution of England has elevated its base fee of curiosity from 0.1 per cent to five.25 per cent. And as a consequence, as everyone knows, huge quantities of additional curiosity has been charged within the UK on those that have needed to borrow.
Mortgage holders are paying extra.
Individuals who pay lease pay extra as a result of their landlords, by and enormous, have mortgages.
And we’re additionally paying extra for a lot of merchandise which have curiosity implicit inside them. Automotive loans, for instance.
On the opposite facet of the equation – and there may be all the time one other facet of the equation in economics – anyone is benefiting palms down. Who’s benefiting? Nicely, the house owners of the wealth on which curiosity is paid are benefiting.
The rate of interest went up from 0.1 per cent to five. 25 per cent. It is uncommon for anyone to have earned 5.25 per cent on their deposits, after all, over that interval. However actual rates of interest have risen from effectively below 1 % in 2021 to over 4 % nonetheless in case you search round. In different phrases, the rich have benefited enormously from the welfare that has been offered to them by the Financial institution of England’s benevolence, which is biased of their favour.
Which means they’ve vastly extra revenue out there to them at current, while those that have needed to borrow to reside and people on decrease revenue – those that are youthful by and enormous – have had a lot much less. This has had a critical financial influence. The rich are, in impact, after all, capable of spend extra proper now and have nonetheless been fueling inflation, regardless of the Financial institution of England’s efforts to extend rates of interest to suppress inflation.
Counterintuitively, they’ve, the truth is, much more money to spend and, subsequently, have essentially the most influence upon inflation – the consequence being that inflation has not gone away as quick as was anticipated.
It is weird. We have now actually created a system the place inflation management would not work, rates of interest do not obtain the specified final result, however the wealthy get richer.
What an incredible shock. And what a information story that’s. A information story that is not being mentioned on any of the mass media, which is why I assumed I might point out it right here.
