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If rich people sold the assets they wouldn’t have them anymore. The mechanism is more that rich have access to lower interest rates. The proportional difference
by duaoebg 6y ago
If rich people sold the assets they wouldn’t have them anymore. The mechanism is more that rich have access to lower interest rates. The proportional difference of interest rates between the rich and poor increases as the risk free interest rate decrease.
- jamesboehmer 6y ago> If rich people sold the assets they wouldn’t have them anymore. But they’d have more money, presumably more than what they paid for the assets. Not that money and goods are exactly fungible, but buying assets from the wealthy makes them wealthier, not poorer or status quo.