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"Rich people invest all of their money back into the economy" - if it really worked like that we wouldn't be discussing inequality.
by mathiasben 9y ago
"Rich people invest all of their money back into the economy" - if it really worked like that we wouldn't be discussing inequality.
- WalterBright 9y agoI'm curious where you think their money is.
- mathiasben 9y agoinvested in siloed low risk fixed income vehicles ensuring that the funds don't circulate through the broader economy.
- WalterBright 9y agoThe reason fixed income vehicles pay out income is because those funds are spent on productive investments. So, they do circulate through the broader economy. There's no silo of cash sitting somewhere paying dividends.
- ericd 9y agoLow risk fixed income doesn't currently keep up with inflation.
- pcrh 9y agoI suspect a lot of it has been invested in overseas locations, including manufacturing operations globally. It may be that the money did indeed "trickle down", but not into the US.
- sokoloff 9y agoI agree. If the US makes it even less attractive to invest capital here, do we think we'll get more or less capital investment and job creation here?
- WalterBright 9y agoYup. Investment flows to where the most returns are, and taxes loom large in such calculations. But that isn't the point here, which is it is invested, not stuffed in a mattress.
- ChemicalWarfare 9y agonot following your logic here. "investing" != "giving it out". "growing economy" != "less inequality".