The Hidden Cost of Money with Sebastian Bunney (WiM472)
The "What is Money?" Show
Impact of Money Printing on Wealth Distribution and Asset Use
Money printing contributes to the rich getting richer and the poor getting poorer by depreciating wages and pushing people to invest in other asset classes like real estate and equities. This leads to an increase in homelessness as people use properties as stores of value rather than for housing. Rich individuals often own multiple properties that remain empty solely for the purpose of storing value. The trend of using assets for value storage, instead of productivity, negatively impacts society's overall productive capacity. With money losing its value as a store of value, people turn to other assets for wealth preservation. This shift to asset accumulation is evident in the rising real estate prices as a result of inflation and low-interest rates, driving up home prices compared to income levels.
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