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"trickle down theory" seems obviously correct to me. Like, if a person has lots of money, it's stupid to sit on it - they invest it, found businesses, hire people, buy things - all of which are putting money back into lower tiers of the economy to me. Am I missing something big?

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look up: rent-seeking

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Rent seeking doesn't seem to have much to do with this imo, could you connect it more explicitly?

11:59 PM · Dec 27, 2019

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Rich people will often collect "rents" on capital. Simple example, own property, charge rent. This is not producing anything and therefore doesn't "trickle down". Stays at top, making rich people richer. Another example, yields on bonds. And so on.

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I was looking into buying a house and re renting it out, and the idea of this being no value creation seems weird. I have to maintain it, I have responsibility for damage, as well as taking on greater financial risk. Trading that to a tenant seems like an increase in value.

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