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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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You're missing that they are literally sitting on it about 80% of the time. Deep dive into the Panama Papers.

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But that just seems retarded to me. Sitting on money is so dumb I have trouble believing rich people with access to the best financial advisors would do that. Unless the tax burden is discouraging them from reinvesting into the economy?

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If anyone has ever given a good explanation of why I would definitely be intrested. All I know is that, yeah, most of it is hoarded. The "why" would be much more interesting to know than the "what" and the "how."

Aella

@Aella_Girl

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@CoryStoker

I absolutely don't think most of it is hoarded. That sounds like an insane myth to me. I'm not even rich and I have my savings invested because if I didn't id be losing money to inflation. No way rich people are just letting their money get eaten by inflation

12:02 AM · Dec 28, 2019

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and

Isn't the question, then, "how do the investments NOT trickle down?" I don't think anyone is suggesting the money isn't invested, just that the investments aren't ultimately turning into money in the pockets of the 99%.

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and

If rich people do not invest, they would be paying the invisible tax call inflation. Which comes mainly from government issuing new currency to pay for stuff. During inflation process government gains money, you lose money. Isn't that a tax?

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and

For most people is hard to picture, since the government is not debiting money from your account but instead decreasing the purchasing power of your account balance, and increasing theirs by issuing new currency.

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and

The taxation on financial investments is low: no trickle down. A lot gets invested in real estate: house prices rise, rents increase. Lawyers offer tax evasion schemes: No trickle down. No level playing field. Sorry.

Griff Green (

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and

It's probably not hoarded... but it doesn't trickle down, it trickles sideways. They invest in financial assets & start ups which support the upper class... middle class "main street" businesses don't have the same return potential & how could it ever hit lower class laborers?

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