Conversation

Aella
@Aella_Girl
"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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Aella
@Aella_Girl
Replying to
@NeskMadran
Rich people have incredible incentive to spend their money are you kidding me? I'd guess they might have even more than poor people, if you assume rich people are more fiscally driven/greedy than poor people on average
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Nesk Madran
@NeskMadran
Replying to
@Aella_Girl
If you're rich, you will keep big amounts of savings for your kids. If you re poor, you dont have that luxury. The money will directly go to the supermarket down the street, or the barber shop across it.
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Balgus82
@Balgus82
Replying to
@Aella_Girl
and
@NeskMadran
The poorest people literally live paycheck to paycheck. They don't HAVE the extra money to save OR invest. Or if they do have the money to save they might not be able to risk it on an investment.
Nesk Madran
@NeskMadran
Replying to
@Aella_Girl
That's nice of you. Many rich people choose instead to shelter their wealth in tax heavens and it has a negative impact on the home economy. It's not my opinion, it's how it works.
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yairdn
@yairdn
Replying to
@Aella_Girl
and
@NeskMadran
What you call "actively" invested does not contribute to much to production. Very few of the shares you bought would be raising new capital. For the most part, you bought second-hand shares, contributed nothing to production and expect a never-ending stream of profits.
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TPRJones
@TPRJones
Replying to
@Aella_Girl
and
@NeskMadran
Do you mean investing in stocks? That money doesn't go directly to the company to spend and churn the economy more, it goes to whomever sold the stock. The price goes up and creates more paper wealth, yes, but what is the real value created that would trickle down and to whom?
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