Re:20 year study of global wealth demolishes the myth of ‘tr...
by eqth on Wednesday December 08, 2021 @11:20AM
(#29486627)
If the US didn't have their weird death laws with inheritance and 0% loans trickle-down would work.
It's very simple. A billionaire can do 3 things with their money:
1)spend it reinserting it into the economy- this 'trickles the money down'.
2)invest it- this funds projects and/or decreases yield ratios (thus making capital cheaper) which in the longer-term reinsterts the money into the economy.
3)burn it - this creates disinflation which increases the value of every other dollar thus reinserting money into the economy.
It's very simple. A billionaire can do 3 things with their money:
1)spend it reinserting it into the economy- this 'trickles the money down'.
2)invest it- this funds projects and/or decreases yield ratios (thus making capital cheaper) which in the longer-term reinsterts the money into the economy.
3)burn it - this creates disinflation which increases the value of every other dollar thus reinserting money into the economy.