4 ms·

They invest their money though. It's not just cash in a vault somewhere. So it does benefit the economy.

• maxxxxx 9y ago
  Or it drives up asset prices. See housing.
  • chii 9y ago
    Which should have a corresponding increase in quantity of housing. Why that doesn't happen in some places is hard to discern, but the investments by the rich does make the economy grow.
    • maxxxxx 9y ago
      If you already own housing it makes a lot of sense to block new development.
• neilwilson 9y ago
  Actually it is somewhere. After the portfolio adjustments are made somebody ends up with cash in a vault somewhere (or more likely bank money). Very often on the asset side of a foreign central bank which they then use to discount into their own currency (hi China)