• Hello_there@kbin.social
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    1 year ago

    My theory is that there’s not enough money at the lower levels - where it gives the most benefit to the most people.
    If someone gave you a few thousand, chances are it would be used sometime soon - a repair, a vacation, a rainy day fund. If that stays at the lower / middle class levels, chances are it gets recirculated soon from there as well.
    Otherwise it sits in a rich person’s bank account, and is used by the bank to do real estate investment - which leads to newer buildings and higher commercial / residential rents.
    Yes, the rich and corporations generally do things with their money - it’s not just sitting in a pool like scrooge mcduck. Unfortunately, what they do with the money tends to have the effect of suppressing the lower classes