flipocrite:

beowulf22121:

biggest-gaudiest-patronuses:

Put $100 in the pocket of a low-income person, and it will circle through the local economy a dozen times in a week.

Put $100 in the pocket of bankers and hedge fund owners, and it gets hoarded away in an offshore bank account.

So tell me what type of “stimulus package” actually stimulates the economy

an extra $20 in someones pocket becomes a trip to the coffee shop before work and they leave a generous tip. Then $20 comes out of the tip jar to buy everyone behind the counter something from the taco truck. Taco guy spends $20 on a ride home at the end of taco time. Cab driver spends $20 on a late dinner on the eay home. Food worker misses the last bus and hires an Uber instead of walking home, spending about $20.

Any economist worth their degree will tell you that 5 people spending the same $20 in a day is $100 worth of economic stimulation.

Meanwhile the rich persons $20 is just another $20 in a fund somewhere and they change nothing about their day, effectively turning that $20 into $0 worth of functional economy.

Info from: accountant friend, whom I speak of rather often.

The mattress CEO interviewed in Robert Reich’s documentary Inequality for All described it as something like “I own pretty much the best bed money can buy. If I double my money, am I going to buy another one? If I eat exactly what I want every day, will doubling my money make me eat twice as much? Of course not, the money ends up stashed away by people I pay to manage it. I literally make more money than I can spend. I used to believe in trickle-down economics, but I can see now that the money isn’t going anywhere. The 1% does not power the economy, it’s the middle-class that does. And it’s shrinking.”