Is "the rich getting richer" a problem?

[Kasz216]

Aielyn said:

richardhutnik said:
If the wealth increases spread more evenly, then yes that can happen.  If it is in terms of rich getting richer, where the advantages have an exponential effect, and the games are selectively at the top, then that is a problem.  I assume GFC here stands for "Global Financial Crisis".

I should clarify that I'm referring to "the rich getting richer" in isolation - that is, the rich getting richer at the expense of growth for everyone else.

If the economy becomes stronger, making everyone else truly richer, the rich will also benefit from it. But the converse doesn't work.

Which itself is extremely rare.

In general, when the rich get richer, the economy expands and everybody does better... and yes this is backed up by evidence and is one of the most basic economic realities.  It isn't the other way around, because the rich are getting ricehr BY growing the economy.... they're the ones who are doing it... because they're the only ones equipped for mass wealth creation.

 

I do agree that tax cuts are fairly pointless towards the economy outside of a short term boost.  Though tax raises due nothing but cause a short term to medium term slowdown.