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That would encourage spending, resulting in higher circulation of wealth. I think this could actually have a very positive effect on societies.
by distances 10y ago
That would encourage spending, resulting in higher circulation of wealth. I think this could actually have a very positive effect on societies.
- conanbatt 10y agoClassic keynesian vs classical economics. Not all spending is good, and savings and investments can increase productivity. As I mentioned, the expiring bill would increase consumption but it would also be "wasteful". Someone unable to leave a business to a son might be tempted to build a huge gold statue in the middle of nowhere. Luxury goods would become a much more tempting market, even though the experiences they provide are of very limited value to society as a whole. Also, figure all the big companies that couldnt exist because there is no legacy, every business owner would sell his business in life and frivolously spend all that money. That is, if you were able to prevent people effectively from leaving money to their kids, which I assure you, its impossible.
- splintercell 10y agoSpending or 'circulation' of wealth does not create wealth. Spending is a goal, not means towards an end. Contrary to how people believe, you can't really 'hoard' money, when you hoard money, you merely invest in money itself, and like every investment, it gives society huge benefits (including, and especially the investor).