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There is only so much the super rich spend, what's left is either sitting somewhere collecting interest or being exchanged between other super rich and never tr
by gldalmaso 8y ago
There is only so much the super rich spend, what's left is either sitting somewhere collecting interest or being exchanged between other super rich and never trickles down again as tax or paychecks.
Money is a zero sum game and the super rich are hoarding it, which widens the social gap.
- ed312 8y agoMoney is absolutely not a zero sum game. More is created e.g. by loans all the time. Wealthy people provide a lot of stability by either 1) putting money in banks, which provides capital for loans and 2) investing in long-term ventures (which create "jobs").
- DATACOMMANDER 8y agoValue isn’t a zero-sum game. Disregarding inflation, money is. Fractional-reserve banking can only increase the money supply by a finite amount. I’m also puzzled by the notion that loans create new money.
- fwip 8y agoAgreed. I guess you can argue that loans put money back into circulation, but the obvious corollary is that rich people hoarding money effectively destroys it.
- monkeynotes 8y agoLoans just put debt into the economy, while the rich monopolize the credit.
- imtringued 8y agoThere is no limit in how many loans a central bank can give to regular banks because the central bank doesn't have to be backed by deposits, gold or any other scarce resource.