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You completely missed my point. If you pay the lower income people more, then things cost more, and they have to pay more to get things. Which makes their inc
by ars 4y ago
You completely missed my point.
If you pay the lower income people more, then things cost more, and they have to pay more to get things.
Which makes their income increase worthless.
You've increased the number in their bank account, but have made zero change in their situation.
And, to answer your question, the reason it doesn't work the other way is that the wealthy don't make anything, so their income doesn't change the cost of goods. (At least not directly - they make money on capital, so their income essentially acts as interest.)