Tom explaining.. #finance #animation #uk

Why do the poor get poorer while the rich only get richer? Let's look at an average person. They work hard and save their money in a bank account. But the government prints billions of new dollars every year. This creates inflation, groceries cost more, rent goes up. Their saved cash loses value every day, but Tom is clever. He knows that saving cash is a trap. So Tom does the exact opposite. He goes to the bank and borrows a million dollars. He uses this debt to buy a physical asset. Now look at what inflation does for Tom. Because the government prints more money, Tom's building increases in value. He can legally charge his tenants higher rent, but here's the secret. His million dollar bank loan remains exactly the same. Inflation makes the savings of the average person worth less. But it makes Tom's debt cheaper while his assets become more valuable. The poor save with money that loses value. The rich borrow that same money to buy the real world. If you want to be as clever as Tom, subscribe.