Quote:
Originally Posted by crucifissio
heres the thing about money flowing down...most of it does not...
when a rich guy buys a $10 million house, those 10mil are locked there for the next 100 years for example...
a rich guy can buy a shirt...he can buy 100 shirts...but he will not buy 1.000.000 shirts...he will buy a car or 10 cars but not 1000 cars like 1000 people would...so what does he do with the bulk of his money?
invest...long term mostly...long term investments do not trickle down...
most of the money the rich make is not spent but invested...this money trickles up not down in some tax heaven...
I love how they coined the term "horse and sparrow"  if you feed the horse enough oats he will shit some out so the sparrow can eat
this is literally the boldest name for a theory made by a rich guy that I have ever heard, "the poor can eat our shit" LOL |
Consider the following 2 scenarios, which show the difference between "investing" and "spending":
some sophisticated person gets a $100k tax refund... figures: "oh cool, lets build a nice house with it".... takes $100k, borrows $400k... spends $500k to build a house... so with a $100k tax refund.... $500k is getting injected into the US economy + 100s of jobs get created along with it... US now has a nice house built, which will be enjoyed by someone in the US for generations...
vs
some less sophisticated person gets a $100 refund... he buys some bullshit widget made in China... benefit to US economy = practically zero... US jobs created = practically zero... widget breaks in 3 months, he throws it away... China is $100 richer, US has nothing to show for it...
which scenario sounds more appealing to you?