Re:The rich world needs higher real wage growth
by snarfybarfy on Tuesday July 03, 2018 @08:06AM
(#17449447)
Consumption != Investment
Imagine a world where everyone put 99% of his income into investments. There would be nothing to invest in, because nobody was consuming.
And by this definition the poor are definitely putting the money to better use because they cause the economy to grow by spending it all.
The rich are currently facing an asset price inflation because there is too much money wanting to be invested and not enough consumption for all those assets to be put to good use.
Imagine a world where everyone put 99% of his income into investments. There would be nothing to invest in, because nobody was consuming.
And by this definition the poor are definitely putting the money to better use because they cause the economy to grow by spending it all.
The rich are currently facing an asset price inflation because there is too much money wanting to be invested and not enough consumption for all those assets to be put to good use.