Conversation between Richard Canfield and another speaker arguing that government deficits, money-printing, tariffs and taxes have eroded purchasing power — described as "the slowest confiscation in history." The speakers claim that since 2015 the purchasing power of $100,000 has fallen about 28%, and give an after-tax example (speaker cites an after-tax figure of $91,000 in their scenario). The video also promotes a book ('Don't Spread Wealth') about keeping family wealth and offers a downloadable 15-page bonus.
Questions this video answers
About 28% (speaker's claim).
Speaker states an after-tax figure of $91,000 in their illustrative scenario.
Chapters
When the governing bodies are spending more than they earn, they're printing to cover shortfalls, layers on trade fiction, all of that's going to make its way through to you. And this is the way that I would phrase it as. It's the slowest confiscation in history.
I call it the triple threat episode with Richard Henry and I. This is part two. We're talking about the money stuff that actually shows up in your life.
These cumulative little cuts add up very, very heavily. You don't feel it, but they add up. You're part of a progressive income tax system. You never really got to choose it because of the erosion of your purchasing power. You will work more, but you actually have to work even harder because there's another tax system that comes in play. If we were to take a step back just 10 years and since 2015, what I'm just going to share on screen, and this has happened globally, it's not just in Canada and the U.S. but we look at in 2015, those impacts, things like deficits, things like tariffs, things like taxes, at least for the Canadian context that I put down. Purchasing power from that $100,000 has gone down to the. Has gone down 28% or that purchasing power. So when the governing bodies are spending more than they earn, they're printing to cover shortfalls, layers on trade fiction. All of that's going to make its way through to you. And it's. This is the way that I would phrase it as. It's the slowest confiscation in history. It's just happening bit by bit by bit by bit. So on an annual basis, you can kind of see your purchasing power where that you maybe have worked a decade, but you're making less than what it is. The value of what you've been spending has been going down onto the arrival compounded 28,000. So it starts with 2,000. Then you know, the 5,000 since compared to the year before, and then three years later, 7,000. And then we keep moving down towards this vantage point. So the, these cumulative little cuts add up very, very heavily. You don't feel it, but they add up. And this is just on the published numbers. Imagine what the actual numbers are.
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And just for, for the reference, when you look at someone's income. So the context for listeners to capture is you're part of a progressive income tax system. You, you never really got to choose it, let's say. But when the purchasing power, when your purchasing power goes down and if you need to work, let's say as an example, you're working overtime so you're going to clock in more hours to cover for that shortfall. So the way that you can measure for that shortfall, no one's going to tell you, but you need to if there's a 28,000, sorry, 28% decrease while it's 28. So if I put that same $120,000 compared to the $100,000 after flushing it through that income tax system, you will see that your after tax income is $91,000. So it's not really 100,000. So why is it not $100,000? Because there's the progressive tax system, the relationship to it, because you're earning, you're not, even though you earned $100,000, you'll lose the amount of money. So you're down 78. But to get to the same hundred thousand, you actually have to make more money. And then when you're moving up and making more money, you're tapping into higher marginal tax rates so that $10,000 to restore back to 100,000. So again, it should be 100,000 if you want to be the same. But you actually have to earn more than that just to break even. So just unpacking these pieces as it relates or dissecting these pieces here, you, you wanted $100,000. You want the same purchasing power of $100,000. But, but because of the erosion of your purchasing power, you will work more to get restore that $100,000. But you actually have to work even harder because there's another tax system that comes in play, the tax system which is now taking an extra 10,000 from you.
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