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Ah so you still believe in the trickle down economy. The problem with that is that anyone making 500k is not going to be able to spend fast enough to keep peopl
by Temporary_31337 4y ago
Ah so you still believe in the trickle down economy. The problem with that is that anyone making 500k is not going to be able to spend fast enough to keep people around them equally wealthy and it gets worse the higher you go - you physically can’t spend 10M+ on groceries and haircuts near you so the higher proportion goes to financial instruments and assets which does not trickle down to neighbours
- giantg2 4y agoThey're not talking about trickle down. They're talking about market pricing (COL) affecting pay. This is clearly evident looking at non-tech jobs in someplace like SV vs Philly.
- embeng4096 4y agoI think trickle down would actually go against GP's point. Their point seems to be that even as richer SWEs make more money, they price out middle class workers on housing -- then as workers pay more for housing, they have less money to buy things from the companies that pay the SWEs, with a result of putting downward pressure on SWE salaries. Believing in trickle down would actually undermine GP's point. If trickle down was true, SWEs' spending would offset the housing cost increases caused by SWEs, so middle class workers would have more disposable income to buy things from companies that pay the SWEs -- and that would be the opposite of what GP is describing.