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Wealthy people don't "sit on piles of money". That money is either held in a bank or invested. If it's in a bank, it is able to be loaned out to others looking
by skibob1027 14y ago
Wealthy people don't "sit on piles of money". That money is either held in a bank or invested. If it's in a bank, it is able to be loaned out to others looking for access to capital now. If its invested, it's being used as capital in a business (assuming it's and equity investment).
- ams6110 14y agoNone of these things happen if the government takes it instead.
- rdl 14y agoBanks don't really loan out money these days, either -- they generally have been keeping it on deposit with the fed, or in government securities, rather than making commercial loans. And, banks are a lot less efficient at deploying capital than enterprises internally, or private investors, even in good times.