That Guy said:
yeah where's the poor guy getting money? Probably from his JOB working for the rich guy. If the rich guy had less money, maybe he wouldnt' be living it up in Hawaii and the poor guy would thus be unemployed. And thank you for bringing up the multiplier effect. Yes, in turn, after the poor guy gets a 20 dollar tip from the rich guy, the poor guy can turn around and buy milk and diapers for his kids, and the grocery store gets money, which in turn pays off the grocery store workers and etc. etc. |
Where is the rich guy getting his money? Selling stuff to poor people.
The logic of your argument is that rich people use money to boost the economy and poor people dont help the economy because they put money in a black hole somewhere.
Please understand this. Rich and poor people spend money alike. They both buy goods and services that increased the demand for jobs through the job multiplier effect. Rich people spend money and poor people spend money, and the free market does not care who spends that money. Wether it is rich people with money or poor people with money DOES NOT effect the supply and demand of jobs, it only effects what types goods and services are in demand.
The multiplier effect has nothing to do with who has more money. Again, the only difference between a rich person with $100,000 and ten poor people wtih $10,000 is what goods they buy with it and what industry gains from those purchases.
