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> they would be extremely likely to invest that money in a variety of financial instruments, making that capital available in the market so it can be put to goo
by milcron 9y ago
> they would be extremely likely to invest that money in a variety of financial instruments, making that capital available in the market so it can be put to good use
This improves the supply-side of the economy, but doesn't do anything to stimulate demand for products. Today, lack of demand is a larger problem than increased output. The labor share of GDP has been decreasing since the 70s, and its starting to hit levels where people are having trouble affording as many goods. Although investing is a good use of funds, arguably redistribution (a type of demand-side stimulus) would be more helpful today.