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What do you think happens to the money that gets saved? People aren't stuffing it into a mattress. It still circulates.
by WillPostForFood 9y ago
What do you think happens to the money that gets saved? People aren't stuffing it into a mattress. It still circulates.
- munk-a 9y agoIt circulates but it doesn't circulate locally and it doesn't circulate quickly. The earnings of people with lower incomes tends to get reinvested directly into their local community. Higher income earners will pass their money off to a bank which may reinvest it into a local business but is as likely to invest it overseas.
- WillPostForFood 9y agoEven if that's true, does it matter? Whether a dollar saved is spent locally, or saved in the bank and loaned locally, or saved in the bank and loaned to some other community, or wire transferred to family in Mexico ,or invested in a factory in Indonesia, some local community benefits.