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Exactly. The money these billionaires have doesn't magically disappear from circulation (perhaps they keep it under their bed?). They spend and invest it. And,
by stephen 13y ago
Exactly. The money these billionaires have doesn't magically disappear from circulation (perhaps they keep it under their bed?). They spend and invest it.
And, give it a generation or three or four, and their kids will have blown it all, having grown up thinking $90M apartments are their expected standard of living, and be back to working at McDonalds.
- EGreg 13y agoYou can apply the same argument to redistributing wealth to the poor. They don't keep it under their bed but spend it. Except the money multiplier is way bigger in the case of the poor, because they: 1) Spend more of their money on what they really NEED, sending price signals into the economy for basics the majority of people need, vs say golden toilets 2) Spend faster and more of their money on themselves PERIOD because their basic needs take up a greater proportion of their money than for rich people But anyway we need to balance the wealth transfer one way of the other. This is accomplished with safety nets and progressive taxation.