Gary Stevenson (UK economist and author of the Trading Game) has a good explanation for this. Both his book and YouTube videos.
In short, everyone (governments and ordinary people) are insolvent and in debt to ultra-rich people (especially since Lehman and Covid stimulus programs) and the only way to return asset ownership to governments and ordinary people is to tax the ultra-rich like Western Governments did in the 1950s and 1960s so that ordinary people and governments can actually afford to own things again without extraordinary debt. Tax wealth, not wages is the basic idea.
When you have 700 million dollars earning 5%, the only thing to do with all of that passive income is to buy assets. That's why house prices are so high.
In short, everyone (governments and ordinary people) are insolvent and in debt to ultra-rich people (especially since Lehman and Covid stimulus programs) and the only way to return asset ownership to governments and ordinary people is to tax the ultra-rich like Western Governments did in the 1950s and 1960s so that ordinary people and governments can actually afford to own things again without extraordinary debt. Tax wealth, not wages is the basic idea.
When you have 700 million dollars earning 5%, the only thing to do with all of that passive income is to buy assets. That's why house prices are so high.
https://www.theguardian.com/books/2024/feb/22/the-trading-ga...