EMERGENCY DEBATE: They Lied About The Economy Recovering! Is A Financial Apocalypse Coming?

In a heated discussion, experts Gary Stevenson and Daniel Priestley debate wealth inequality and economic policies affecting the UK and US. Stevenson argues that rising inequality and concentrated wealth among elites are leading to declining living standards, proposing higher taxes on the wealthy to redistribute wealth more fairly. Priestley, emphasizing economic freedom, suggests that reducing government interference and taxes can spur entrepreneurship and economic growth. Both agree on the importance of supporting middle-class prosperity but differ on solutions, with Stevenson advocating for political activism and Priestley promoting entrepreneurial opportunities in the digital economy.

• The podcast begins with a critique of wealthy individuals advising struggling people to be more entrepreneurial, highlighting the disconnect between the advice and the reality for many.
• The discussion emphasizes the challenges faced by those without financial security and the impracticality of simplistic solutions to complex economic issues.

"I'm sick of multi-millionaires telling kids who can't afford to turn the heating on you just need to be more entrepreneurial."

• This quote points to the frustration with oversimplified advice given by wealthy individuals to those facing financial hardship.

• The conversation addresses the growing wealth inequality in the US and UK, attributing it to systemic issues such as government policies and technological changes.
• There is a debate on whether reducing taxes on the working class and increasing them on the wealthy would address these disparities.

"Living standards are falling because of growing wealth inequality if you allow the rich to get richer they squeeze the middle class and the poor class out of things like housing."

• This quote highlights the impact of wealth inequality on living standards, suggesting that the concentration of wealth exacerbates economic challenges for the middle and lower classes.

• Gary Stevenson shares his background, detailing his rise from a modest upbringing to becoming a successful trader at City Bank.
• He discusses his unique perspective on the economy, emphasizing his accurate predictions about interest rates and economic recovery post-2008 crisis.

"I was City bank's most profitable Trader in the world that year and I made them just over $35 million."

• This quote underscores Stevenson's success and credibility in the financial industry, which informs his economic insights.

• The podcast explores the concept of economic freedom, comparing countries with varying levels of government intervention.
• There is a discussion on the effects of increased government debt and regulation on economic freedom and poverty rates.

"Countries that have high degrees of economic freedom have very low poverty they have widespread affluence."

• This quote suggests a correlation between economic freedom and lower poverty rates, advocating for reduced government intervention to foster prosperity.

• The pandemic's economic impact is analyzed, focusing on the wealth transfer from government spending to the wealthy.
• There is a critique of the lack of scrutiny regarding who benefits from government financial interventions during crises.

"At the beginning of Co the very beginning of Co we knew governments across the world were going to be giving out tens of trillions of pounds dollars Euros nobody even thought to ask who's going to get tens of trillions richer."

• This quote criticizes the oversight in questioning the beneficiaries of government spending, highlighting the resultant increase in wealth inequality.

• The discussion covers the role of technology in economic transformation, noting the shift towards digital economies and its impact on traditional job markets.
• The rise of remote work and its implications for global labor markets are also examined.

"The money really has moved from the traditional economy the 2019 High Street economy over to the digital economy."

• This quote illustrates the shift in economic focus from traditional industries to digital platforms, affecting job availability and wealth distribution.

• The podcast addresses the housing market crisis, attributing high property values to government policies and generational wealth disparities.
• There is a discussion on the concentration of housing wealth among older generations and its implications for younger people.

"78% of housing wealth is Baby Boomers."

• This quote highlights the concentration of housing wealth among older generations, contributing to the difficulties younger people face in accessing homeownership.

• The debate on taxation policies focuses on the fairness of current tax systems and the burden placed on different economic classes.
• There is a discussion on the effectiveness of taxing the wealthy more to alleviate economic disparities.

"I paid it was 50% top rate tax 50% top rate tax plus National Insurance 60% million to bring my family out of poverty at the same time the Duke of Westminster inherited 10 billion and paid nothing."

• This quote highlights perceived inequities in the tax system, contrasting the tax burdens of wealthy individuals versus ordinary taxpayers.

• The podcast examines differences in economic growth between the UK and US, attributing the US's success to its focus on technology and innovation.
• The role of government policies in fostering or hindering economic growth is debated.

"US GDP per head stands at $82,000 per head whereas the UK stands at $49,000 per head."

• This quote provides a quantitative comparison of economic performance, suggesting that the US's approach may be more effective in driving growth.

• The podcast concludes with differing opinions on the best path forward to address economic challenges, with contrasting views on government intervention and market freedom.
• There is an acknowledgment of the complexity of economic issues and the need for nuanced solutions.

"I just think we should be honest with them capitalism's finished we won well done Stephen well done Daniel well done Gary it's over now our kids will be rich their kids will be poor they'll pay the tax taxes we won't pay the taxes we'll avoid it I'll make money betting on it year after year why are we lying to them?"

• This quote reflects a cynical view of the current economic system, questioning the sustainability of wealth distribution and the honesty of economic discourse.

• Discussion on the fairness of taxing inheritance versus earned income.
• Concerns about the concentration of wealth among the children of the rich.
• Debate on taxing the rich and the implications for the economy and society.

"If I get given 1 billion, I don't pay any tax, but if I work for 10 billion, I pay 60%."

• Highlights the disparity in taxation between inherited wealth and earned income, questioning the fairness of the tax system.

"If you inherit, this is the tax system that you want, you'll end up in a system where the kids of the rich will own everything."

• Suggests that the current tax system perpetuates wealth concentration among the descendants of wealthy families.

• Wealthy individuals and companies can easily relocate to avoid taxes.
• The challenge of taxing multinational corporations and billionaires due to their global operations.

"The richest people are completely mobile now, so they can be absolutely anywhere in the world."

• Emphasizes the difficulty in taxing wealthy individuals who can relocate to tax-friendly jurisdictions.

"If a tiny proportion of them leave, we're all in trouble."

• Warns of the economic consequences if wealthy individuals and businesses leave a country due to high taxes.

• Debate on whether to tax companies or the wealth of individuals.
• The complexity of implementing effective tax policies on global revenues.

"Do you tax their wealth, which is what they own, or do you tax the companies where they trade?"

• Raises the question of the best approach to taxing wealth, whether through personal wealth taxes or corporate taxes.

"Typically, consumption taxes get passed on to consumers."

• Notes that taxes on companies often result in higher prices for consumers, rather than directly affecting the wealthy.

• Multinational companies use profit shifting to minimize tax liabilities.
• The need for governments to address profit shifting to ensure fair taxation.

"It's disgusting that a British company can take out a Facebook ad to sell to a British consumer, and Facebook pretends to be in Ireland."

• Criticizes the practice of profit shifting, where companies use international structures to reduce tax obligations.

"Are you telling me companies selling to the UK, the US, enormous amounts of profit in the US, and they turn around and say actually our profit is not in the US?"

• Questions the legitimacy of profit shifting practices and the need for regulatory intervention.

• The UK faces a "millionaire exodus" due to changes in tax policies.
• The impact of losing high-net-worth individuals on the economy and tax revenue.

"The UK has set to lose the greatest proportion of millionaires in the world."

• Highlights the trend of wealthy individuals leaving the UK, leading to a loss of significant tax revenue.

"In the UK, 1% of people pay 30% of the taxes; 10% of people pay 60% of the taxes."

• Illustrates the heavy reliance on a small percentage of the population for tax revenue, and the risks if they leave.

• Discussion on the balance between economic freedom and taxation.
• The relationship between economic freedom and poverty levels.

"The most free countries have less than 10% poverty... as soon as you reduce economic freedom, it jumps to 30% poverty."

• Argues that economic freedom is correlated with lower poverty levels, suggesting that higher taxes could increase poverty.

"If the governments of our countries cut taxes on us, the three multimillionaires sitting at this table, that will improve the lives of the ordinary British and American."

• Suggests that reducing taxes on the wealthy could lead to broader economic benefits, though this is debated.

• The difficulty in implementing fair and effective tax policies in a globalized economy.
• The potential for tax policies to drive away wealth and investment.

"If we Britain, for example, and we build a brand which is that we're anti-wealth... every young entrepreneur who comes to me and says, 'Dan, do you think I should start a company here in this country?' I'm going to say, 'Well, if you do, they'll take it.'"

• Warns that aggressive tax policies could deter entrepreneurship and investment in the UK.

"If you allow British people who own 300 million pounds of British assets to technically live in Monaco and not pay tax, then you will get crime and you will have dirty streets and you will have a bad healthcare system."

• Argues that allowing wealth to escape taxation leads to underfunded public services and increased social problems.

• Discussion on the feasibility and fairness of wealth taxes.
• The potential impact of wealth taxes on investment and economic growth.

"It's called economic freedom. The economic freedom index... the countries that get in the way of your economic freedom have more poverty."

• Suggests that wealth taxes could reduce economic freedom and increase poverty.

"If you tax people on, as Gary says, that have more than 10 million, what are your options to avoid... if your objective was to avoid that, what options do you have?"

• Highlights the potential for wealth taxes to drive individuals to relocate to avoid taxes, reducing their effectiveness.

• The importance of creating an environment conducive to entrepreneurship.
• The role of technology and innovation in driving economic growth.

"Why can't we have one here? Can't we start... what conditions do we have to create to have one of those seven tech companies here?"

• Questions why the UK cannot replicate the success of major tech companies in the US and China.

"If you want businesses to thrive, you don't need just a good environment for entrepreneurs; you also need people to have money that they can spend."

• Emphasizes the need for both entrepreneurial support and consumer purchasing power to drive economic growth.

• The changing nature of work and the skills needed for future success.
• The role of education in preparing individuals for a rapidly evolving job market.

"We went through a schooling system that taught us how to get an office job... which is the Industrial Revolution world."

• Critiques the traditional education system for not adequately preparing students for the modern economy.

"The most often the people who do really well financially who are young, they dropped out of school... they take a very alternative path."

• Suggests that unconventional paths, such as entrepreneurship, may offer better opportunities for financial success in today's economy.

• The discussion challenges the notion of meritocracy, suggesting that without a wealthy background, success is significantly harder to achieve.
• Entrepreneurship is presented as a potential path to success even for those from disadvantaged backgrounds, but it is not guaranteed to make everyone a millionaire.
• The feeling of having no control over one's circumstances is linked to mental health issues, emphasizing the importance of agency.

"If it's possible for someone else, it is possible for you."

• This quote stresses the belief in potential and possibility, encouraging individuals to pursue their goals regardless of their background.

"The power of Entrepreneurship is that starting with nothing you can actually make improvements."

• Entrepreneurship is highlighted as a means to improve one's circumstances, even if it doesn't always lead to wealth.

• Hard work is acknowledged as important, but systemic issues and economic structures can limit individual success.
• The narrative that failure is solely due to a lack of effort is critiqued as overly simplistic and potentially harmful.

"I never told people don't work hard. I never once said that."

• The speaker clarifies that hard work is essential, but not the sole determinant of success, acknowledging broader systemic barriers.

"The flip side of your 'if you just work hard enough you can make it' is if you didn't make it, it's because you didn't work hard enough and it's your fault."

• This quote challenges the notion that failure is purely a personal failing, pointing to systemic issues that impact success.

• Technological advancements are transforming and disrupting traditional job markets, leading to job displacement and the need for new skills.
• The education system is criticized for not preparing students for the realities of a tech-driven job market.

"Technology does three things: it makes jobs more simple, which makes them replaceable, it makes jobs global, and then ultimately it automates the job altogether."

• This quote outlines the transformative impact of technology on employment, emphasizing the need for adaptation and new skills.

"The education system isn't really working; it's still pretending that there are office jobs available for people when they graduate."

• The education system is critiqued for being outdated and not aligning with current job market realities.

• Entrepreneurship is seen as crucial for job creation and economic growth, with a small percentage of entrepreneurs driving significant economic benefits.
• The need for a system that encourages entrepreneurship is emphasized, as it leads to job creation and wealth distribution.

"You only need a few people to succeed, and the whole economy starts to improve."

• This quote highlights the disproportionate impact successful entrepreneurs can have on the broader economy.

"All jobs growth comes from entrepreneurs."

• Entrepreneurship is positioned as the primary driver of job creation and economic expansion.

• There is a debate about wealth distribution and the role of government in managing economic inequality.
• Historical periods of wealth redistribution are discussed as means of improving living standards for ordinary people.

"The only time we've ever really been able to provide decent living conditions for ordinary working people was the period after the war where we massively redistributed wealth."

• This quote reflects on historical periods of wealth redistribution as successful in improving living standards.

"If you allow the rich to get richer and richer, they squeeze the middle class and the poor class out of things like housing and space in cities."

• The quote warns of the dangers of unchecked wealth accumulation and its impact on societal inequality.

• The discussion covers the role of government in regulating wealth, with differing views on taxation and economic policy.
• The impact of taxation on entrepreneurial motivation and economic behavior is debated.

"I want higher taxes on the wealth holders so we can tax wealth creators and working people less."

• The speaker advocates for a tax system that alleviates the burden on working people by targeting wealth accumulation.

"If you allow the rich to get richer and richer, they squeeze the middle class and the poor class out of things like housing and space in cities."

• The quote highlights concerns about wealth concentration and its effects on social mobility and equality.

• Personal agency is discussed as a key factor in individual success, but broader societal changes are needed to address systemic issues.
• The importance of community and collective action in driving societal change is emphasized.

"Personal agency is what gets people to feel good about their life to make progress."

• The quote underscores the importance of personal responsibility and initiative in achieving success.

"If we become a society of individuals who think only individually and never consider broader societal problems, we will become a society that becomes unable to fix societal problems."

• The quote warns against excessive individualism and stresses the need for collective action to address societal issues.

• Young people are advised to pursue knowledge and skills in emerging fields, particularly in technology and digital economies.
• The challenges faced by young people from disadvantaged backgrounds are acknowledged, with an emphasis on realistic expectations and hard work.

"Knowledge is really your life raft."

• The quote emphasizes the importance of education and skill development as a means of improving one's circumstances.

"It's very, very difficult for a young man or a young woman from a poor family to become rich."

• The quote acknowledges the challenges faced by individuals from disadvantaged backgrounds in achieving economic success.

• Discussion on the need for taxation reform, targeting wealth distribution more equitably.
• Emphasis on the distinction between social and personal economic strategies.
• Debate on the feasibility of entrepreneurship as a path to wealth for ordinary people.

"Push the politicians to tax working people less and tax extremely wealthy wealth orders more."

• The speaker advocates for a political shift towards taxing the wealthy more heavily to alleviate the tax burden on the working class.

"I'm not a businessman, I'm an economist... I'm a very, very good Economist."

• The speaker distinguishes their expertise in economics, emphasizing their credibility in predicting economic trends.

"I believe that it's going to get worse for me... you have to do it."

• The speaker stresses the importance of personal responsibility and proactive measures in improving individual financial situations.

• Examination of entrepreneurship as a viable path to wealth, supported by statistics on self-made ultra-high-net-worth individuals.
• Discussion on societal changes affecting entrepreneurial opportunities and challenges.

"65% of ultra-high-net-worth individuals are self-made."

• The statistic indicates that a significant portion of wealthy individuals achieved their status through entrepreneurship, suggesting it as a potential path for others.

"Starting a business is a realistic high success probability chance of ordinary poor people becoming rich."

• The discussion explores the potential of entrepreneurship as a means for social mobility and wealth creation.

• Critique of the current education system for not aligning with modern economic realities and opportunities.
• Suggestions for integrating practical skills and knowledge relevant to the current economy into education.

"In school, we don't teach this... there's no YouTube class for YouTube."

• The speaker highlights a gap in the education system, which fails to prepare students for modern economic opportunities such as digital entrepreneurship.

"I believe there needs to be such a radical overhaul of our education system."

• The speaker calls for significant reforms in education to better equip students for contemporary economic challenges and opportunities.

• Concerns about the shrinking middle class and increasing wealth inequality.
• Discussion on the implications of these trends for societal stability and economic growth.

"The percentage of young people who make it is shrinking."

• The speaker warns of a declining middle class, which could lead to broader economic and social issues.

"If you don't fix this problem of the wealth being sucked out of the middle class... 98% of people will be in poverty in this country in 70 years."

• The speaker predicts dire consequences if current trends in wealth distribution are not addressed.

• Debate on the role of government in addressing wealth inequality and supporting economic growth.
• Discussion on potential policy solutions, including taxation and regulatory reforms.

"Slashing the state I don't think is going to work."

• The speaker argues against reducing government size as a solution to economic issues, suggesting alternative approaches.

"We want to tax only high levels of wealth."

• The speaker proposes taxing the wealthy more heavily as a means to redistribute wealth and support the middle class.

• Emphasis on individual actions and societal changes needed to address economic challenges.
• Encouragement for personal financial responsibility and political engagement.

"Prepare yourself for that... it will become increasingly difficult almost impossible to make any serious money."

• The speaker advises individuals to brace for worsening economic conditions and to take proactive steps to secure their financial future.

"Recognize this can be changed... but they won't get it unless they fight for it."

• The speaker encourages political activism and personal effort as means to achieve economic change and improve societal conditions.