3 ms·
Yep, even if the top quintile (top 20%) eventually invest they spend very slowly compared to the other economic quintiles. The supposed "investments" are often
by Projectiboga 3y ago
Yep, even if the top quintile (top 20%) eventually invest they spend very slowly compared to the other economic quintiles. The supposed "investments" are often just shuffling things between themselves, financial instruments, but also art, luxury goods and other items that don't truly drive economic activity. The bottom quintile's money multiplier was almost 11 times over the next twelves months in the 1980s. The top cohort then had a spending multiplier of only 0.4 times over the twelve months after they get it. They don't spend or 'invest' all their money even once in the year. The way the economy and especially the distribution of wealth and income since the Regan and later tax cuts has shown clearly those tax cuts haven't helped anyone beyond a small donor class.