4 ms·
That is just math and does not account of what this would cause to the economy. Is the same old discourse, if poor people get more money they will put it back
by Iulioh 3y ago
That is just math and does not account of what this would cause to the economy.
Is the same old discourse, if poor people get more money they will put it back in the economy and consume it generating a bigger economy and better life quality for everyone.
And gdp is kindaaaa useless as wealth pays an important role.
Economic inequality in income grew since the 80' and that's simply a fact
- andruby 3y agoOf course. Afaik there are no numbers we could use to estimate the effect on GDP of such redistribution. We could indeed hypothesize that GDP would increase due to poorer people having more to spend. On the other hand, in this scenario the successful business owners no longer earn outsized reward for their risk, so perhaps entrepreneurship and innovation is stumped. It’s very hard to predict the effect on GDP