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Here is one explanation. https://youtube.com/watch?v=BTlUyS-T-_4 https://youtube.com/watch?v=BTlUyS-T-_4

• gruez 1y ago
  is there a tl;dw? Based on a quick skim of the transcript it seems to be "pandemic stimulus/quantatative easing went to rich people and they bought houses with it", which seems to demonstrate a massive misunderstanding of how quantitative easing works, and ignores how housing prices crept up pre-pandemic, before any money printing happened.
  • valkmit 1y ago
    It's not a great video. It's basically outrage bait for people who don't understand economics, by someone who also doesn't understand economics but uses words that sound like an economist uses them.
  • teamonkey 1y ago
    It’s basically Piketty’s thesis. His argument isn’t about QE directly, but wealth inequality. Rich people have much more money than they need to live and therefore must spend their money on assets and other such things to avoid depreciation. They don’t just buy a massive house to live in, they buy properties, which drives up house prices and rent. They also finance mortgages, which enable poorer people to afford more expensive properties by putting themselves in more debt to the rich. Extreme wealth of a few therefore has a direct impact on the price of essentials for those with less money. QE isn’t directly responsible for house prices increasing, but the pandemic measures effectively transferred a vast amount of wealth to companies, shareholders and banks, rapidly making inequality worse. He claims that the most equal time in British history - with the most affordable housing - was post-war 20thC, pre ‘80s neoliberalism and prices of assets have been creeping up since.