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Then why not try to structure our economy so that the lower and middle classes have more money to spend? It seems like that would be a pretty good way to get th
by TheAdamAndChe 9y ago
Then why not try to structure our economy so that the lower and middle classes have more money to spend? It seems like that would be a pretty good way to get the economy moving more since giving poorer people money increases the velocity of money considerably[1].
[1] https://en.wikipedia.org/wiki/Velocity_of_money https://en.wikipedia.org/wiki/Velocity_of_money
- toomuchtodo 9y agoI agree entirely.
- danudey 9y agoThat's definitely the case, but the goal of modern politics and the top 1% is to accrue wealth, not generate it. Giving the middle classes more money to spend is great for the economy but it only accomplishes their goals if all that money ends up in their portfolios or assets, which means that eventually it all has to trickle up to the top.
- prostoalex 9y agoBecause that concept only works in an idyllic small town dominated by sole proprietors. The example they provide > Farmer spends $50 on tractor repair from mechanic. Mechanic buys $40 of corn from farmer. Mechanic spends $10 on barn cats from farmer. does not involve stuff made abroad, massive corporations with economies of scale eliminating the middleman, or foreign-owned entities. Most of that velocity will end up in China invested into another skyscraper ghost town, a massive infrastructure project or a cryptocurrency mining farm.
- TheAdamAndChe 9y agoThen what do you recommend should be done? Because it should be obvious to most that increasing inequality, record-breaking corporate profits combined with a decreasing quality of life for most Americans outside of large cities is leading to a destabilization of our political system.