I mean, on the housing front (in the US at least), it has far more to do with the government backed 30 year mortgage (cheap money drives prices up) and zoning regulations (which constrain supply and also drive prices up).
For example the amount of money in circulation has grown massivelly ever since the 70s, because digitalization means that most money is just numbers in databases and most payments are just bits and bytes rather than actually issued paper currency. In the modern era most money is created by private banks as loans, not issued by central banks (here’s a Bank Of England paper on that to show I’m not bullshitting) to the point that over 90% of all money in circulation wasn’t issued by a Central Bank.
Then within that context, there’s the fall in interest rates which were supposedly temporary reduced by Central Banks after the 2007 Crash to help with the recover but never really went back to the historical average - lower interest rates mean people can take bigger long term loans and still pay the same per-month, which is especially relevant for things like housing because it meant higher house prices that would otherwise be unaffordable were affordable with those lower interest rates. This also affected things like corporate bonds prices - companies could easilly do things like get ultra cheap money buy issuing bonds with very low interest rates or directly from the Money Markets and use that money to buy back their own shares (thus increasing share prices) which large numbers of publicly traded companies did helping push up the Stockmarket.
And then, of course, there’s how the concentration of wealth in fewer hands (largelly due “the rich not being taxed properly”) meant way more money in the hands of people that don’t spend almost any of it in Consumption (because it’s way more than what’s needed for that) but instead Invest it, so they bid the prices of any and all Investment Assets, including stupid shit that would never otherwise be treated as worthy of investing in (such as Crypto).
It’s a big, ultra distorted Economic system, very much purposefully made so to put lots of wealth in a small number of hands (Finance - and hence those who own it - has captured A LOT of wealth way beyond the value they bring to Society) and we’re shamelessly lied about all of it.
It points to assets being inflated, due to the rich not being taxed properly any longer.
I mean, on the housing front (in the US at least), it has far more to do with the government backed 30 year mortgage (cheap money drives prices up) and zoning regulations (which constrain supply and also drive prices up).
There are in fact more reasons that that.
For example the amount of money in circulation has grown massivelly ever since the 70s, because digitalization means that most money is just numbers in databases and most payments are just bits and bytes rather than actually issued paper currency. In the modern era most money is created by private banks as loans, not issued by central banks (here’s a Bank Of England paper on that to show I’m not bullshitting) to the point that over 90% of all money in circulation wasn’t issued by a Central Bank.
Then within that context, there’s the fall in interest rates which were supposedly temporary reduced by Central Banks after the 2007 Crash to help with the recover but never really went back to the historical average - lower interest rates mean people can take bigger long term loans and still pay the same per-month, which is especially relevant for things like housing because it meant higher house prices that would otherwise be unaffordable were affordable with those lower interest rates. This also affected things like corporate bonds prices - companies could easilly do things like get ultra cheap money buy issuing bonds with very low interest rates or directly from the Money Markets and use that money to buy back their own shares (thus increasing share prices) which large numbers of publicly traded companies did helping push up the Stockmarket.
And then, of course, there’s how the concentration of wealth in fewer hands (largelly due “the rich not being taxed properly”) meant way more money in the hands of people that don’t spend almost any of it in Consumption (because it’s way more than what’s needed for that) but instead Invest it, so they bid the prices of any and all Investment Assets, including stupid shit that would never otherwise be treated as worthy of investing in (such as Crypto).
It’s a big, ultra distorted Economic system, very much purposefully made so to put lots of wealth in a small number of hands (Finance - and hence those who own it - has captured A LOT of wealth way beyond the value they bring to Society) and we’re shamelessly lied about all of it.
Are you saying that people possess the same absolute amount on a grown piece?