>You have more economic growth if you give 1 million people $100 dollars (since they are more likely to spend it on goods/services) vs giving $100 million to on

>You have more economic growth if you give 1 million people $100 dollars (since they are more likely to spend it on goods/services) vs giving $100 million to one person (who will likely spend the bulk of their money on financial instruments). The US spends the majority of it's Federal Budget on giving small amounts of money to the non-rich, to the order of trillions of dollars per year. Also, when someone puts money into a financial instrument, that money usually flows immediately into productive use. Capital flows are attributed with about 30% of the economic growth over the last century, which is a huge increase in quality of life, especially for the most poor.