Gary’s Economics is wrong on Income: Top Economist warns

Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com

(Plus get Ravel™ - my proprietary economic visualization software I used in the videos - as a free bonus, if you get accepted & join.)

Top Economist Steve Keen reacts to Gary Stevenson’s viral “tax the rich” budget model—and shows where it breaks. The real blind spot? Treating government like a household and ignoring how banks, gilts, and central-bank reserves actually work. This isn’t just about taxes—it’s about the plumbing of money.

In this explosive breakdown, you’ll discover:

✅ Where Gary’s spreadsheet goes wrong (government ≠ household)

✅ How gilt auctions & bank reserves really fund deficits

✅ Why government spending creates money (and when debt stabilizes)

✅ Why “tax the rich” matters—but banks must be in the model

✅ How austerity drains the poor’s deposits and backfires

✅ Ravel simulations: debt ratio & interest payments can plateau

KEY INSIGHTS:

• Primary buyers of new government bonds are banks/CB-account holders, not “the rich.”

• Deficits add net financial assets to the private sector; austerity removes them.

• Taxing the rich helps distribution—but ignoring banking mechanics creates false “debt doom.”

• With realistic flows, debt-to-GDP and interest can stabilize rather than explode.

• Policy focus: tax the wealthy, fix banking incentives, fund real services (NHS, schools, transport).

🎓 Want to learn 50 years of real economics in 7 weeks?

Join Steve’s Seven Week Rebel Economist Challenge: https://stevekeen.com

📚 Get Steve’s “Funny Money” book FREE when you apply for the course

💬 Do you agree with Steve’s critique of Gary’s model? Tell us why in the comments.

🔔 SUBSCRIBE for more reality-based economics from the Top Economist who warned about 2008

👍 LIKE if this clarified how government finance actually works

📤 SHARE to help others understand taxes, banks, and deficits

--

Who is Dr. Steve Keen?

Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against conventional economic models. Holding a Ph.D. in economics, Dr. Keen is well-known for his critical analysis and advocacy for more realistic economic approaches. His work emphasizes the importance of accounting for financial instability and incorporates elements of complex systems theory. Engineers, finance professionals, and IT experts will appreciate his methodical breakdown of economic phenomena and his development of the Minsky software, which models financial crises. Dr. Keen's contributions are crucial for anyone seeking a deeper understanding of how economic systems can impact technological and financial environments. His teachings offer valuable insights into the economic forces shaping our world. By following his analysis, professionals can gain a better grasp of economic dynamics that influence their fields.

---

Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com

(Plus get Ravel™ - my proprietary economic visualization software I used in the videos - as a free bonus, if you get accepted & join.)

#HousingBubble #TrumpHousingEmergency #RealEstate #Economics #HousingCrisis #PropertyPrices #BankingSystem