6 ms·

That’s a logical fallacy, though...the guy that buys a $20M jet is employing the people that made the jet, advertised it, procured the fuel, built and maintaine

• throw0101a 6y ago
  You're not wrong, but there are diminishing returns. There are only so many people that can buy and maintain jets. One person buying one jet for $20M (plus operating costs), is probably a lot less money velocity that a whole bunch of folks getting $20M in (e.g.) stimulus checks and deciding to buy $20M worth of economy class airline tickets. Or put another in a different transportation sector: only so many folks that can afford Ferraris, and pay to maintain them. Whereas if money were less concentrated / more distributed, more folks could buy Fords (or Fiats). The amount of money stimulating things with 10 (or 100) Ferraris is much less than 1000 or 10'000 Ford/Fiats. More workers, more mechanics, etc. You're right in that the rich person can stimulate the economy, but would a bunch of less well-off folks spending the same quantity have a larger multiplier? I'd hazard to guess that the answer is yes, they would.