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Kasz216 on 10 September 2013
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Fayceless said:
killerzX said:
Fayceless said:
killerzX said:
 

and still none of that negates the fact that putting you money anywhere (other than your mattress) benefits everyone..


This is the worst argument.  How does rich people having money help everyone?  Wouldn't that same money, in the hands of MORE people, do MORE good?  The answer is, of course, YES!  It would better for businesses by creating more opportunites for expansion, for individuals who can support themselves and their families and work harder(as they feel more rewarded for their efforts!), for entrepreneurs and inventors and creators!

Income inequality benefits nobody but those at very top.  And even that is limited, because sooner or later the economic foundation that they have been systematically weakening is going to fail and it's all going to come crashing down.  Those at the top only have the furthest to fall.


lets see how being rich benefits everyone.

they put into into a bank. that bank now has more money that, they can use to expand their business, hire more people, they now have money to lend (this is how lending works). that money that rich person put in the bank is now loaned to you, so you can buy a house, car, start a business, etc.

the evil rich person puts his money in the stock market. The company he just invested in now has more capital, they can now do more research and development, expanding their business, which requires more employees.

that rich person uses his money to buy a cheeseburger, a flatscreen, a car or whatever. that money now goes to the campany that made the product, the company that sold the product, the company that distributed the product. those companies now stay in business and thrive because they have a product that is demanded, inorder to keep up wit demand, they hire people, they inovate, they sell more goods, putting more money in the economy.

the evil rich guys buys a McMansion. the builder has to hire construction workers, plumbers, floorers, drywall guys, painters, landscapers, etc

this is like economics 101 stuff. really basic. like I said in virtually every scenario other than stashing money hidden away in your home benefits everyone.


I understand that.  I understand all of that.  In the past I have made every conservative economic argument in the book!  I fully grasp these basic concepts.  And I've grown to see that it's not the best way of doing things.

I'm not saying rich people are bad.  I'm not saying their spending doesn't create economic activity.

What I'm saying is that wide income gaps are a detriment to society, and to the economy.

Exhibit A:  Corporations are making record profits but they are not expanding and hiring like all the conservatives said they would.  The problem: Companies expand and hire NOT because of the money they make, but because of the money the CAN make.  They will not expand or hire if the opportunity for growth is not there.  This is where income inequality comes into play.  As a portion of Americans see their expendable income shrinking from rising costs and flat wages, they don't have money to spend on non-necessities. Thus, economic growth opportunities are limited as a business's customer base spends less money.  A company doesn't open a store because they CAN, but because it's profitable.  And when the money is only the hands of a small portion of people, those opportunities simply aren't there.

Actually conservatives were saying companies WOULDN'T expand because stimulus boosted economies don't expand, because the boost is fake and companies are smart enough to know that.