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This is what I don't understand, and I would appreciate if anyone explained it to me. The money went to "the top 1%", whatever. Where do they keep it? Probably

This is what I don't understand, and I would appreciate if anyone explained it to me. The money went to "the top 1%", whatever. Where do they keep it? Probably either in a bank, which invests it back into the economy, or in other form of investments. Definitely not under a pillow. So entering back into the free market economy, the money, pretty much in its entirety, gets distributed into the hands of the millions of "regular people" in form of investment. They buy a McLaren or a mansion? Great, that money goes to the people who make those things. All in all, because the entire "1%" money is circulating in the economy anyway, what does it matter who it actually belongs to? What am I missing here?

metaphorm 10y ago
> The money went to "the top 1%", whatever. Where do they keep it? That's a complex puzzle but the answer is some combination of all of the following: financial assets (this is a big one, stocks and bonds soak up a lot of money), real estate, luxury goods, re-investment, off-shore tax havens, and under a pillow (gold or other commodities that have low utility but high scarcity). > All in all, because the entire "1%" money is circulating in the economy anyway, what does it matter who it actually belongs to? this is the theory behind the now discredited and disproved "trickle down economics" theory. the money doesn't really circulate very well, actually. it is far less liquid in the possession of the wealthy than it is in the possession of the working class. wealth stockpiles in the form of longterm held financial assets sucks a huge amount of money out of the economy.