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Bank deposits aren't removed from the economy. That money is loaned out to other people. That's what banks do.
by harryh 7y ago
Bank deposits aren't removed from the economy. That money is loaned out to other people. That's what banks do.
- coldtea 7y ago>Bank deposits aren't removed from the economy For the ultra rich they go to so many channels, as to be effectively removed (else, they'd also be taxed as income to begin with). A deposit in Switzerland or Turks and Caicos doesn't do much good (if anything) to your local economy... And of course, as a rich person you have all kinds of assets like real estate too...
- harryh 7y agoDo you really think Turks and Caicos banks only loan money to islanders? Not much to invest in there. Capital easily flows across borders to the best investment opportunities. Real estate is a bit tricky since it can be both consumption and investment. While I'd rather see taxes on imputed rent like they have in some countries to cover the consumption part, property taxes do a pretty good job.