Increased poverty in the UK is inevitable – and here’s why, according to economist Gary Stevenson.

In his latest video, he explains why wages have stagnated, and the money you have isn’t buying as much as it once did:

Who would have thought it would be about the amount of wealth we own – by which Gary means assets that generate passive income?

If this wealth is spread widely, then the economy flows freely because more people have spending power.

But if it is concentrated on very few people – perhaps one per cent of the population – then those who don’t have any cash have a huge incentive to work, but only the one per cent can afford to pay for anything.

And the ordinary people have to spend the money they make.

The rich people don’t – not on the necessities of life. Instead, they buy assets – the stuff that accumulates passive income for them.

They don’t want to spend much money on people because they want to buy assets with their cash instead. That’s likely to lead to a disaster of low wages – because they can dictate the amount they pay to others.

At the same time, money has lost value.

This also pushes asset prices up.

Put the increase in asset prices and the fall in the value of money together and they make wages flatline, while prices skyrocket.

So a wage collapse is disguised as a bubble in asset prices – like house prices, for example.

This tilts the balance of power towards the rich, in a cycle that does not include a shift towards helping the poor.

The economy then concentrates on specific things, like luxuries and finances.

And people are forced to move close to the small number of rich people – leading to overcrowding and higher rents.

If this cycle isn’t reversed, poverty will escalate continually and living standards will plummet.

Your life, and those of your children and grandchildren, will become desperately poor.

Is that what you want?

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