Re:The 'glass floor' keeps the children of the rich at the top
by arcticbull on Tuesday October 15, 2019 @06:26PM
(#21264640)
To my knowledge just giving people who need it money doesn’t encourage them to save it, but rather to spend it on what they need, which actually stimulates the economy. This is far more beneficial than leaving it as idle capital or in a savings account.
[ Parent
| on HN ]
Re:The 'glass floor' keeps the children of the rich at the top
by gnicholas on Tuesday October 15, 2019 @07:34PM
(#21265295)
You're right that the propensity to spend is higher among low-earners, so if you're trying to stimulate the economy it makes sense to allocate there (all other things equal). But my point was about the futility of trying to use a wealth tax to cut down on generational transfers of wealth/advantage. If you tax wealth, that encourages people to spend instead of save. And if their concern is keeping their family in the top 5%, 1%, or .1%, there are plenty of ways for them to spend it in order to achieve that end.