| Rath said: @crumas2. In the end consumer spending is far more important to the economy than investment. |
Well... I think that, 'in the end," it's all spent. The money invested in a savings account at a bank, for instance, winds up facilitating loans to people who would buy homes, or start businesses.
Apart from the purchase of the home, or the jobs created by the business, receiving that loan from the bank frees more money for the home owner or small business owner to buy goods and services.
The money of wealthy people contributes just as much to the economy as the money of poor people. We might still argue that taking the money away from the wealthy and using it on other things is a good idea... but we can't pretend like it comes from thin air, or that taking it away like that has no negative reprecussions. In this case, taking it away means that the banks have less money to loan, which means it will be more difficult for the prospective home or business owner to buy their home, start their business, and/or use their other money for other stuff.
