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I think it is a bit more complicated than that. The bottom 90% keep a big chunk of what little savings they have in cash or cash equivalents. The top 1% invest

I think it is a bit more complicated than that. The bottom 90% keep a big chunk of what little savings they have in cash or cash equivalents. The top 1% invest most of their savings in treasuries (investing in federal spending) or equities (businesses) or other investments (real estate, etc). This is why many believe it is sensible to reduce taxes for the wealthy; perhaps they will continue to invest the savings in private businesses.

lonelappde 7y ago
The counterpoint is that there are critical public infrastructure and welfare projects that could be funded by taxing the wealthy more (possibly in exchange for taxing the poorer less). Cutting taxes on wealthy seems to trigger recessions and depressions due to drying up aggregate demand for goods and services.
Ericson2314 7y ago
Non-rich spending stimulates the economy more than rich investing. The rich are out of ideas to invest. The non rich spending more would give the rich new ideas to better invest the money they already do. There are more complex analyses, but the above one gets the job done.