"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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Yes, but marginal so "trickle" is tiny relative to capital and one or two hops only - and that's the point. Most of the benefit accrues to one side (in theory). Productive capital builds houses, business, etc. Build vs "Rent".
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And then step up - if I buy $1B with of bonds? I give government money, they give me yield. Where does that money go? Sits in government doing nothing productive. Loads of examples that lead to Great Recession. Sub-prime, classic example.
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