The extent of inequality in the US
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  The extent of inequality in the US
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Author Topic: The extent of inequality in the US  (Read 4856 times)
DC Al Fine
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« Reply #50 on: March 16, 2013, 02:53:06 PM »

If Romney was spending all of his income, that would be great! He would be returning the money into the economy, which is how capitalism is supposed to work. What he and most rich people to is sit on the money, which doesn't circulate it, causing inflation and inequality.

Hatman, do you think he built a giant swimming pool for his millions? No, the money is invested and companies make purchases with his capital. Obviously a degree of equality is desirable for social cohesion, but making blatantly false assertions about what happens to rich people's money is just silly.

So, all of his money is "invested" then? I doubt every last cent is.

Hatman, if he's not spending it, and he's not investing it, where do you think his money is? Even if it's in a savings account, the bank can loan out the money for mortgages etc.

So, his money is getting "borrowed". That's not really using his money, because he still gets to keep that money, as the borrowers will be indebted to the bank. I'm talking about using his money by having it spent. That's how you get the economy going. Borrowing just puts people into debt, which leads to the problems we have had the last few years. 

Lending money and having it spent are not mutually exclusive options. Case in point, anyone who has bought anything on credit ever.
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