re: #427 MandyManners

Well, Joe Biden says “wealthy” people don’t spend money.

They don’t spend *as high a percentage* of their available money. And what they do spend, isn’t always spent here.

If people just scraping by get some extra cash, they’ll pour every last penny back into the economy. They’ll get their kid that new pair of shoes they’d been putting off, from a shoestore whose proprieter will now buy a dress from a seamstress who spends half the money on fabric and the other half at a local restaurant where the server uses her tip to get her hair done by a beautician who’ll pick up some produce from the local farmers’ market on her way home. That money counts 5 times towards GDP because it keeps moving.

If upper middle-class people get some extra cash maybe they’ll put it in their 401k, or make an extra mortgage payment, or take that trip to Paris and buy things in some other country’s economy.

If the awesomely wealthy get some extra cash, maybe they’ll bid up the price of a Rembrandt, which adds only the auction house’s commission to anybody’s economy.

The biggest stimulative effect of tax cuts is at the bottom.