Re:Some Rich Americans Are Getting Stimulus ‘Checks’ Averagi...
by bawana on Friday April 17, 2020 @10:21PM
(#22904827)
It's not about getting rid of rich people. It's about the relative flow of wealth and the behavior of rich people that makes life miserable for 'the rest of the 99%'. how about housing? The digital divide? These are negative externalities from the increasingly large numbers of extraordinarily wealthy people. Inflation will never happen no ,matter how much money the govt prints. Since when does a lower Fed rate help the common man who cannot even get a loan? Since when does the purchase of massive amounts of Tbills help the guy who doesn't have a job? These ancient economic tools date from the time before derivatives, before financial giants and their complex tools. It goes to financial vehicles which just invest it in more financial vehicles.
And then where does the money go that was spent on the investment?
Consider that a high ROI means the money is used for something useful. For example, investing into a financial vehicle that loans money to people buying a house.
Let's say the rich person buys a yacht. The yacht construction employs a large number of people. The money goes into the pockets of the people who made the yacht.
> Giving money to the rich does not trickle down to people.
For this to be true, it would follow that if all the rich people were made not-rich, it would have no material effect on the rest of the people. But that isn't how historical examples played out. Getting rid of rich people made everyone else worse off. Every time.