Quote:
Originally Posted by you&me
I had written a long post that I scrapped earlier that said something similar...
Essentially, there seems to be a misunderstanding of wealth and what wealthy people do with their money. It's not being "hoarded" in the sense of Scrooge McDuck and a swimming pool of gold... The wealth is "in" the economy, whether through investments, foundations, grants or other philanthropic activities. A very small percentage of high-level wealth is inactive or unused... I'm not sure handing any of it over to the government would achieve a higher and better use of the funds.
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Don’t lowand even negative bond yields suggest that there is too much money available in the market. That banks can borrow money at below the rate of inflation to me seems like there is too much money being invested and not enough money consuming. Or the level of consumption currently in the world (as insane as it is) isn’t enough to support the amount of capital available to the world.
So if all this wealth is just competing with itself for investments wouldn’t redistribution to the consumer side Allow it to be spent spurring more demand.