killerzX on 10 June 2012
| Andrespetmonkey said: Well I guess rich people don't just sit on their money, and their spending will naturally create jobs, which is beneficial for society as a whole. Or I have no idea what I'm talking about when it comes to economics and should get the hell out of this thread |
sitting on their money also creates jobs (unless they are litterally sitting on their money, like keeping it under their bed) but having it in banks and other accounts, makes the reserve ration higher. meaning banks have more money reserves, meaning they have more to loan out. Meaning, someone wanting to start up a business can have the money to do so by borrowing from the bank. that frees up capital, and creates jobs
