Trickle-Down Economics Debate
The cluster debates the effectiveness of trickle-down economics versus redistributing wealth to lower-income people, arguing that poor individuals spend more to stimulate growth while the rich hoard or invest less productively.
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"it's good for the economy"How could we keep funneling all the money to the top if there's no scarcity?
Poor people spend a larger share of their income (and therefore put it to productive use stimulating the economy, hiring people, etc). Rich people tend to hoard their pile, and spend a smaller portion of it.
Well, it stands to reason if you make the rich wealthier and everyone else poorer, there is no one to buy goods and stimulate the economy.
It's not wealth. It's just money. Trickling it down would just cause inflation. Just take a look what money trickling down through IT companies did to SF housing market.
Seems like basic economic theory, the more capital you have flowing through the economy at a lower level, the more opportunities there are. Whereas these 8 people are siloing their wealth in investments, that same money divided up among people of low income would be spent upwards of 3x, and given to the middle class iirc it was something around a 2x factor. Both are much better for our economy than having that wealth sit siloed as an investment.
Wouldn't trickle up economics work better? Poor people have more unmet needs and more likely to spend any extra they get into the economy.
What we’ve done is change who makes the decision for how to spend a certain amount of money from wealthy investors to fast food workers, right? The thing is, we know that fast food workers are generally not doing too well financially. A surprisingly large portion even need to draw on government assistance like food stamps to get by. Like most poor Americans, we can also expect them to be in a degree of debt. If you give these people a bit more money, you reduce strain on taxpayer-funded assistan
Yes, that is a good thing. The bad part is that they aren't using the other 99.99..% of their wealth, essentially taking everyone else's labor and ending the cycle of trade that would otherwise help keep an economy going.And that's not to mention broader macroeconomic issues which are more worthy of essays than HN comments.
Trickle down effect doesn't work.
seems like giving people money drives up prices more than giving money to big co's