"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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Depends what you mean by invested. If it’s buying equities on an exchange, I can’t see how it produces much real economic output versus consuming. OTOH, angel investment might produce a lot of economic activity in the future.
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This might be a bigger question than what we can effectively talk about over Twitter. I don’t think I’m doing a good job of expressing my thoughts. But do you think that trickle-down is effective? Do you disagree with what people say about it?
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2% to inflation when they can make way more than that without dipping into their entire cash holdings. In this overinflated market I'd take that tiny hit rather than invest all the cash I have taking on unknown risk
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Yes, they reinvest it in other stocks, bonds, options, or futures markets etc. they don’t necessarily open businesses or anything else. Stocks don’t affect how much money a business has unless it’s the primary market, most stocks are secondary markets.
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Do you invest in stocks and bonds?
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