2 ms·
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 ope
by 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.