Re:Our Invisible Rich
by smacktoward on Monday September 29, 2014 @02:20PM
(#8384272)
Oh, all right, I'll bite. Here's two.
1) In a society whose economy is driven by sales of consumer goods, having wealth spread more broadly results in greater sales of consumer goods, which means more economic activity and a higher standard of living for everybody. (Concentrating wealth in a small strata of very wealthy people doesn't have the same effect, because once people get past a certain level of wealth they don't spend money they earn beyond that on consumer goods; they put it in the bank or the stock market.)
Re:Our Invisible Rich
by johnrob on Monday September 29, 2014 @02:29PM
(#8384326)
I think your first point is a pretty good summary of where the US economy is. Plenty of dollars chasing investments, but fewer looking to consume products. High price/earning ratios reflect this.
1) In a society whose economy is driven by sales of consumer goods, having wealth spread more broadly results in greater sales of consumer goods, which means more economic activity and a higher standard of living for everybody. (Concentrating wealth in a small strata of very wealthy people doesn't have the same effect, because once people get past a certain level of wealth they don't spend money they earn beyond that on consumer goods; they put it in the bank or the stock market.)
2) You've heard of the Bastille, I assume?