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> when wealthy people get money they do not spend it on goods and services that employ people and drive the economy That’s such a naïve statement. Those financ
by briandear 7y ago
> when wealthy people get money they do not spend it on goods and services that employ people and drive the economy
That’s such a naïve statement. Those financial vehicles actually do things: provide capital for other businesses. Provide market liquidity so that capital can flow to the areas that are in demand. Grandma saving money under the mattress does a lot less than a “rich” person investing in REITs.
- bawana 7y agoThere are no grandmas that can save money anymore. The wealthy can afford to pay so much for housing that real working people can even afford it. The wealthy consume so much simply because they can. And there are a LOT more of them thanks to financial engineering.