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we've all heard about trickle-down economics trade the idea that if the
rich have more money
then it'll all just magically trickle down like a cinnamon waterfall of sorts
and the rained down money on people who are in the lower
middle-class et cetera well there's a new article from CNBC
and outlines a study from the spectrum group which
asked a bunch of wealthy enrich investors what do you wish you had done
differently
with your money during the economic crisis just about everybody in
who who was considered a top earner right seven hundred and fifty thousand
dollars a year or more
the number one answer was saved more
saved more and then second was done more research
about finances on my own the
regrets that they have with not having saved enough have been
turned into action because now since the financial crisis
the wealthy have become the nation's top hoarders I've
cash according to research from American Express publishing and the Harrison
group the savings rate of the wealthiest one percent
soared to 37 percent
in the second quarter that's up from 34 percent in the second quarter of 2012
and more than three times three times the savings rate
in 2007 another study from bankamerica found that 56 percent of millionaires
have a substantial amount of cash only 16 percent of them plan to invest that
cash
and the next couple of months only 40 percent plan to invest in the next
couple
love years we've got its start realizing
that what we kind of have known in circles that are not blinded by the
a talking points of trickle-down economics have known for a long time
we can disagree about the right amount of taxes
the fair amount of taxes we can have those discussions
to say that giving rich people tax cuts
so that they can save more money is going to stimulate the economy
is absolutely bogus and bears no
connection to reality whatsoever the spending of these 1 percenters
would not change almost at all
if their tax rate were to be a little bit higher
or lower in other words that's money that they're saving anyway if you're
saving
thirty-seven percent of your money if you've got three percentage points plus
or minus in your tax rate does that make a difference in the amount of money
you're putting
into the economy spending on stuff opening businesses hiring more people as
we like to hear about
absolutely not the money sitting it is not stimulating the economy
economy the velocity have money which is an important
economic measure if you kinda believe traditional
love you know to a but not even conservative economics which is kind of
like but neo-classical or or
modern economics I the velocity of money
for money that is just being saved is very very low
it simply doesn't stimulate the economy and here is more evidence that that is
the case