I am a liberal and I'm proud

[akuma587]

crumas2 said:

akuma587 said:
You guys know that economies are generally more stable with progressive taxation than with flat taxes or regressive taxes right? There are plenty of reasons to justify progressive taxes from an economic standpoint.

Another is the amount of people's income that is disposable based on their income. Poor people have less overall money to spend. So they tend to save less money and spend a higher percentage of that income in the economy. The reverse is true for the rich. So in essence, a flat tax or regressive taxes would in many ways hurt the economy as much or more than it would help it.

Rich people tend to spend less of their money?  Depends on what you mean by "spend".  Spend less on necessities like food, utilities, clothing, etc., yes.  They tend to invest most of their money in real-estate, stocks, start-ups, etc., which fuels the economy at least as much as paying for necessities.

I just love it when "poor" people try to claim that rich people are getting away with something, when the job they have was most likely created by a "rich" person.

 

But spending money in a store as opposed to investing it in the stock market typically has a greater multiplier effect.  For instance, I go and buy something at the store, and then whoever ends up getting that money can then invest it in the stock market.  Money that is invested in the stock market doesn't tend to have as much liquidity and recirculate as money out there being spent on consumer goods, etc.

Rich people get rich by people poorer than them spending their money.  The more overall spending in an economy the more everyone benefits (unless the spending rises to unsustainable levels obviously).