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There was also an explanation of velocity of money on tumblr that went viral: > Let’s say you get paid $10, you use that $10 to buy lunch from a street vendor,

There was also an explanation of velocity of money on tumblr that went viral: > Let’s say you get paid $10, you use that $10 to buy lunch from a street vendor, then the street vendor uses that $10 to take a taxi home, then the taxi driver used that $10 to pay his babysitter, next the babysitter uses that $10 to buy groceries, etc. That one $10 bill produced $50 of economic value. This is really good for the economy and why it’s bad to give rich people more and more money because all rich people do is horde it. They don’t stimulate the economy multiple times over with it. https://www.truthorfiction.com/velocity-of-money-tumblr-post/ https://www.truthorfiction.com/velocity-of-money-tumblr-post...

Gibbon1 7y ago
> That one $10 bill produced $50 of economic value. This is an error. The $10 bill mediated $50 worth of transactions.
chrismcb 7y ago
Unless they are Scrooge McDuck and storing their money in a pool to swim in it, the rich do stimulate the economy. How did the first person get paid? Perhaps because they work in a company the rich person invested in...
- xbmcuser 7y ago
  Most do behave like Scrooge McDuck they park the money in real estate, bonds, stock and gold. If the billions of dollars tax breaks the very rich get were spend on the poor it would stimulate the economy and would create jobs a lot more. The way the economies of most countries work these days is 90%-10% is the take of rich and poor. But as poor have to spend all they have and rich don't. The wealth keeps shifting towards the rich if it is 90%-10% today it will be 95%-5% 5-10 years from now.
  - Turing_Machine 7y ago
    > Most do behave like Scrooge McDuck they park the money in real estate, Which, besides providing places for people to live, also generates property taxes every single year. Forever. > bonds, Which fund our roads, schools, public utilities, libraries, hospitals... > stock(s) Which fund the companies that produce all the essential (and luxury) goods and services we need for a modern lifestyle, and provide the vast majority of jobs. > and gold. Very few large investors put their assets in precious metals. The prices are quite volatile, and precious metals don't generate interest, dividends, or rents (like the aforementioned bonds, stocks, and real estate).
shalmanese 7y ago
But the rich use that $10 to invest in a taxi-as-a-service company who then use that money to invest in a restaurant-as-a-service company who then use that money to invest in a groceries-as-a-service company who then use that money to invest in a babysitter-as-a-service company who then use that money to invest in a street-vendor-as-a-service company and they generate $500 worth of economic value from it while everyone else becomes a gig economy worker.

Gibbon1 7y ago

> That one $10 bill produced $50 of economic value. This is an error. The $10 bill mediated $50 worth of transactions.

chrismcb 7y ago

Unless they are Scrooge McDuck and storing their money in a pool to swim in it, the rich do stimulate the economy. How did the first person get paid? Perhaps because they work in a company the rich person invested in...

xbmcuser 7y ago
Most do behave like Scrooge McDuck they park the money in real estate, bonds, stock and gold. If the billions of dollars tax breaks the very rich get were spend on the poor it would stimulate the economy and would create jobs a lot more. The way the economies of most countries work these days is 90%-10% is the take of rich and poor. But as poor have to spend all they have and rich don't. The wealth keeps shifting towards the rich if it is 90%-10% today it will be 95%-5% 5-10 years from now.
- Turing_Machine 7y ago
  > Most do behave like Scrooge McDuck they park the money in real estate, Which, besides providing places for people to live, also generates property taxes every single year. Forever. > bonds, Which fund our roads, schools, public utilities, libraries, hospitals... > stock(s) Which fund the companies that produce all the essential (and luxury) goods and services we need for a modern lifestyle, and provide the vast majority of jobs. > and gold. Very few large investors put their assets in precious metals. The prices are quite volatile, and precious metals don't generate interest, dividends, or rents (like the aforementioned bonds, stocks, and real estate).

shalmanese 7y ago

But the rich use that $10 to invest in a taxi-as-a-service company who then use that money to invest in a restaurant-as-a-service company who then use that money to invest in a groceries-as-a-service company who then use that money to invest in a babysitter-as-a-service company who then use that money to invest in a street-vendor-as-a-service company and they generate $500 worth of economic value from it while everyone else becomes a gig economy worker.