"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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Will is right about HFT, but it's a very small component of the financial markets relying on algorithms that crunch miniscule margins out of tiny market inefficiencies — too small to be taken advantantage of except at massive scale. It's zero-sum; too slow, you die.
Using HFT as an argument against finance broadly is like pointing to the barnacles to dismiss the whale. It's certainly example of rent-seeking in finance. It's not an answer to your question, by any stretch
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To an extent, HFT, day traders etc that seem zero-sum create a positive externality by making markets liquid and enabling others to trade more efficiently, including long-term investors.
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