3 ms·

Honestly answer this, would an average person with more money in their account spend it or leave it there?

• mschuster91 6y ago
  That depends if your average person is poor or not. Poor people will spend their money (and thus increase consumption) while wealthy people will hoard it. This is incidentally also why "trickle down economics" do not work - there is no incentive for rich people to spend more money than they need, but (thanks to interest) there is the incentive of hoarding it for (virtual) growth.
  • whb07 6y ago
    Most people would spend more. Here’s the best part, are you ready? Assuming people don’t bury the money or keep it under a mattress, that money gets pooled up in some sort of custodian account. Then that money gets loaned out and invested. So you do want to get a cheaper service and it does benefit society.