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Classic keynesian vs classical economics. Not all spending is good, and savings and investments can increase productivity. As I mentioned, the expiring bill wo
by conanbatt 10y ago
Classic 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.