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"It obviously doesn't work because the wealthy don't have to invest into domestic jobs. They can also use their money abroad." They can also just hoard most of
by pmoriarty 6y ago
"It obviously doesn't work because the wealthy don't have to invest into domestic jobs. They can also use their money abroad."
They can also just hoard most of it and pass it on to their descendants -- this is how you get dynasties. Tax havens and creatively constructed foundations are another way of making sure the government never gets ahold of their money.
- 0x6862 6y agoSure the rich hold some gold & BTC but most of their wealth is in investments (stocks, bonds, infrastructure etc.) to generate positive real returns - given inflation. This is far from hoarding
- jacques_chester 6y agoWhat the paper shows is that the increment in potential investments by the wealthiest don't seem to improve growth, but does worsen inequality. The individually wealthy are not required for the aggregation and allocation of capital. Governments and financial systems are typically more capable at achieving this requirement in a welfare-maximising manner.