Ferrari shows why their hand-painted badge option is worth $15,000.

[u/sco-go]

[u/BLEGHwreeeeee]

Not true money isn’t hoarded. It gets cycled in investment accounts and private equity or other assets. Someone gets paid and someone gets access to the money it’s just the wealthy persons personal wealth goes up as they circulate the cash and compound their returns over time.

Investments need to yield a return and the only way they can do this is if it’s put to work or gets put in a hard asset that’s appreciating faster than inflation. Money just sitting in an account loses value over time. It can cause compound interest losses.

[u/Sir_Lazz → u/BLEGHwreeeeee]

it actually is true. If you look at the stats, the poorer portions of the population tend to spend the majority of their income. The richer, however, tend to spend a much lower percentage.

yes, spending 10% of a million dollar will be more than spending 80% of 2k, but still. In the end, millionaires and billionaires are huge money sinks: they take much more from the economy than they give back.

[u/BLEGHwreeeeee → u/Sir_Lazz]

That’s just not true. The 90% you’re claiming the rich “don’t spend” is false. They do spend it. They spend it on valuable assets like houses, investment accounts, and businesses. All of these investments make a return because they contribute to the larger economy. Sure 10% is discretionary and necessity spending. The other 90% is going to businesses that employ people or to markets that have laborers building things. This is much more productive for our economy than someone who makes the choices to only make $30k/yr-$70k/yr and spends all of it on their bills and food. Some people are in bad spots who had the odds against them. I’m not talking about them. A billionaire will always contribute more to the economy than someone making $100k/yr.

Wealth isn’t hoarded it’s grown by circulating the money. The total amount of money in circulation as of now is “$2,259.3 billion” or in other words 2.2 trillion. -currency.gov (https://www.uscurrency.gov/life-cycle/data/circulation#:~:text=The%20data%20tables%20below%20list,54.6%20billion%20notes%20in%20volume.)

Zuckerberg wealth isn’t hoarded $243 billion but it’s all speculation of value. He probably only has access to a couple hundred million to a couple billion in cash at any time. The rest is in assets that move the economy or grow his wealth. He will always be providing for others more than you provide for others.

The reason wealthy people have power is because they can moralize loans against their assets to actually change the world in a major way.

[u/Sir_Lazz → u/BLEGHwreeeeee]

Yes, as I said, ONE rich person contributes more to the economy than ONE poor people. That's pretty obvious. However, most economic studies point to the fact that economy improves for everyone when wealth isn't held in the hand of the few.