Henry159 Wrote:
Nov 27, 2012 12:29 PM
Good point, Mountain Rose. I would love to see a detailed example of this. It would make a good blog. It's Economics 101. The rich do not just horde money like fictional Uncle Scrooge McDuck. Money "sitting around" in a bank earns interest because the bank uses that money to earn more interest by loaning it out. And then, more money is poured into businesses as capital (stocks) which earns dividends only if the businesses succeed. And finally, even the extravagant purchases "redistribute" the wealth down the "food chain" from retailer to supplier to manufacturer.