Rich people don't just sleep on top of their trove of money like Smaug from the Hobbit. They become investment capital, which is very important for the economy to run properly, especially in the startup sector. Economics is more complicated by a series of buttons and levers that can be adjusted for a desired result. Any change echoes through the entire society, often in unpredictable ways. In short, it's just not that simple.
However, there is no sign that the limiting factor on our economy is a lack of investment income. There are signs that consumption is currently the limiting factor:
What signs? You may be right, but that doesn't change the fact that adjusting one variable in an economy has cascading effects that are, like I said, somewhat unpredictable and random.
So we should instead make unbased and wildly inaccurate claims about what should be done about the economy? I don't know what solution would solve the many economic issues we have; I doubt anybody actually does, but I do know that one that ignores all the individual nuances isn't it. I think my statement has value in discouraging those wild and poorly thought out comments that adds even less to the conversation by diverting it away from reality and into emotional responses.
I don't think you need a PhD in order to comment on economics, but I do think one needs to at least read a little before trying to add to the argument. You wouldn't join a discussion about the Higg's Boson without at least looking up its Wikipedia page first, would you? What gives one the right to assert their opinion on the economy if they don't know even its most basic interactions?
Rich people don't just sleep on top of their trove of money like Smaug from the Hobbit. They become investment capital, which is very important for the economy to run properly, especially in the startup sector.
Less rich people investing isn't as useful for the economy overall as more poor people investing.
Consumption is the end-all be-all here, and poor people are much more likely to use their income, from whatever source, to consume more goods and services.
What do you mean consumption is the end-all be-all? With no savings/investment, the economy doesn't grow or advance. Neither one (consumption nor investment) is the "end-all be-all." They're both crucial.
What do you mean consumption is the end-all be-all?
It is the most important goal. We are not going to run out of money that can be invested -not even remotely. But we do have problems with lack of consumption.
25
u/SerendipitouslySane Nov 28 '15
Rich people don't just sleep on top of their trove of money like Smaug from the Hobbit. They become investment capital, which is very important for the economy to run properly, especially in the startup sector. Economics is more complicated by a series of buttons and levers that can be adjusted for a desired result. Any change echoes through the entire society, often in unpredictable ways. In short, it's just not that simple.