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>usually, wealth is either spent on luxury items (so the money goes back into the economy) or it is invested (funding economic growth). These are things that d
by IntelMiner 8y ago
>usually, wealth is either spent on luxury items (so the money goes back into the economy) or it is invested (funding economic growth).
These are things that don't scale however. A CEO does not eat a thousand meals a day, or buy a thousand cars a year, or do any of the infinite number of things that circulate money into the economy on the scale of an equal number of poor people
- beaconstudios 8y agoyou've missed the second half of the sentence. The rest goes into investment.
- anonuser123456 8y agoA CEO might host a 2K dinner per day. Give 1K people 2$ and they will be able to buy a McBurger. In case A) you have a chef,sous chef, sommolier etc. all making reasonable money. In case B) you have capital investor making 1.95$/ unit and some kid making 7.95/hr. In aggregate, who spends what does not have a clearly predictable path through the economy.