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Who do you think has more debt in absolute terms, the lower class or the upper class? Whose debt is primarily leveraged into income producing assets opposed to
by VirusNewbie 5y ago
Who do you think has more debt in absolute terms, the lower class or the upper class? Whose debt is primarily leveraged into income producing assets opposed to simply debt?
It doesn't matter if every single person in the US has debt and inflation makes that cheaper, if it disproportionally wipes out upper class debt you're doing wealth transfer indirectly to the upper class.
- xapata 5y agoGood point. However, we care more about marginal value for an individual. A dollar given to a poor person is more valuable than a dollar given to a wealthy person. Giving $10 to Elon Musk accompanied by $1 to, well, just about anyone else, would increase equity, because we would value the $1 more than ten-fold what Musk would. Those particular numbers might be incorrect for the example, but the principle holds. That's why we have progressive tax brackets.
- VirusNewbie 5y ago> Giving $10 to Elon Musk accompanied by $1 to, well, just about anyone else, would increase equity, It literally would do the opposite, literally. Do you know what the word equity means? You might say it's the right thing to do ethically, that it's a trade off you might make, and we can get into all sorts of pros and cons of it, but it is the opposite of increasing equity.