When one person has $1 trillion, he's not going to be spending most of that money, and that's $1 trillion taken out of the economy. How is that not dangerous to the economy? That's $1 trillion taken away from everyone else.
Billionaires aren't Scrooge McDuck. They don't make a swimming pool fool of $100 bills. The bulk of the money is invested, which provides capital for businesses.
The value of wealth is marginal, though. A trillionaire can only eat three meals a day.
I'm not against the rich. I'm actually
for the rich, which is why I don't want to see them self destruct. If the wealth gap increases enough to provide for trillionaires, I'm sorry but there's no investment that is going to succeed. The capital will fund businesses that fail because not enough people can afford to purchase its goods or services.
Ten families of four with $100,000 in income have needs that turn into consumer demand:
- 120 meals a day purchased
- 20 vehicles purchased and serviced
- 10 homes purchased and maintained
- 10 Christmas trees purchased and decorated
One family of four with $1,000,000 in annual income?
- 12 meals a day purchased
- 2 vehicles purchased and serviced
- 1 home purchased and maintained
- 1 Christmas trees purchased and decorated
They may buy more, but they might not. They have just as much incentive to hoard that money in a savings account as they do buy a third car or second home. The ten middle class families NEED those 10 homes and 20 vehicles and
will make those purchases
It's not just populist garbage. It's good economics. Most with some spend more than some with most. Capital can only go so far.
Our nation's entrepreneurs won't have any customer base if we continue down this path and all will be destined for failure.
