Re:Wealth doesn't trickle down – it just floods offshore, re...
by skylan_q on Sunday April 10, 2016 @10:02AM
(#11466115)
Something is wrong and broken with "modern capitalism" if a mere 90,000 people have more wealth than 90% of the planet. All the arguments about investment and job creators falls flat; we have gobs and gobs of excess capital desperately seeing some productive investment. Capitalists don't need any more capital at the moment.
The wealth they have isn't doing nothing. It's in investments.
Secondly, if it was in nothing, that would only reduce the velocity of money, effectively making your money worth more. You could spread that money around, but the likely result of that is less investment and more consumption.
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Re:Wealth doesn't trickle down – it just floods offshore, re...
by vkou on Sunday April 10, 2016 @10:12AM
(#11466155)
Consumption drives investment. Why on earth would you spend 10 million dollars to build a widget factory, when nobody has the money to buy widgets?
Re:Wealth doesn't trickle down – it just floods offshore, re...
by skylan_q on Monday April 11, 2016 @10:54AM
(#11471877)
Consumption drives investment.
There's always demand.
Savings fund investment. The more savings there are, the cheaper it is to find funds for investing in a project. The cheaper the capital expenditure, the easier it is to turn a profit.
Or are you talking about the paradox of thrift?
Re:Wealth doesn't trickle down – it just floods offshore, re...
by vkou on Monday April 11, 2016 @12:43PM
(#11472898)
The first thing you do before investing in a new market is asking the question: "What's the return on this? Will anyone buy the things I'm selling? Are the margins positive?"
Having a lot of money searching for an investment won't do you any good when your widget factories don't have customers. Yes, borrowing money to build the factory will be cheap - but you still expect the factory to produce a return on your investment!