Is "the rich getting richer" a problem?

[Chark]

drakesfortune said:

Chark said:
There exists a diminishing return on the benefits one rich individual can have on society. 

 

NONSENSE!  Says who?  You?  Your liberal professors?  Nonsense.  That's a statement with nothing but wind behind it.  That's like me saying all butterflies are orange, because that's what I think.  Or all teachers are bad.

Bull!  Some rich people get to a point where adding money to their pool doesn't help anyone.  MOST rich people aren't idiots throwing their dollars under the mattress though!  Most rich people have almost ALL of their wealth invested in stocks or bonds (funding our ridiculous deficit).  How many rich people do you know that just sit on a big pile of cash under their mattress?  NONE do that.  Even if they have it sitting in a bank account, are you so clueless about economics that you think that the money is really sitting in the bank in a vault somewhere?  What does the bank do with the money they take in?  They loan it to MAROONS like you to buy things like houses, or to small businesses to finance the creation of new wealth.  If the rich guy invests it in stocks, as most do, then that money is being put to use by companies to create wealth and grow jobs.

The idea that the rich getting richer is bad for you is so incredibly stupid.  It's the drivel that comes out of leftist universities today, and it's the reason so many people are clueless about economics.  Wealth redistribution is the WORST way to manage a nation's wealth.  It flushes it down the toiled, subtracting from the wealth of ALL people.  Whereas a rich guy investing his money, or sitting on it in a bank, is benefiting the wealth CREATORS in our society.   

Aye carumba.  This is what we get for not teaching economics in schools.  We have a nation of economically retarded individuals.

 

Thank you for all the kind words. Notice in your first sentance after you say "Bull!" you are supporting my statment of diminishing returns based on the individual involved. I never stated that the returns were static across the board and as a diminishing value there will always exist some benefit. The concept is that higher returns can sometimes be acheived from other individuals who aren't rich. Acheiving those returns is often addressed through a system of loans, as stated.

I stated that the rich getting richer effect is good, not bad. Also, isn't it a tad unfair to generalize the education system as leftist? My univesity happens to be vastly conservative and I was taught traditonal economics and non-keynsian modern economics, after the fed essentially. 

Progressive taxes are not the same as wealth redistribution and I never claimed that was what I felt should be done economically. The United States federal income tax has always been progressive.