What do the wealthy spend their money on? It wasn't entirely what I expected

[lewisnotmiller]

I'm in favor of a gross revenue tax with no loopholes. Take all the money that came in, apply and percentage and pay that. No special tax rates. No expenses. Nothing outside of a percentage that to me should be progressive but would be a lot lower percentage than today because of no loopholes or expenses.

I prefer progressive also.
Flat tax gets tricky unless you have high minimum wages. Basic foodstuffs cost money, and poor people need to eat.

The advantage of reducing loopholes, or otherwise simplifying the system is in reduced cost of administering the system, also.

 

[Nakosis]

Somehow, I think we’ll all get by Juuuuust fine with the billionaires being simply multi-millionaires.

And ya know what else? I’m betting the multi-millionaires will be fine too.

Why should someone else being a billionaire effect you? Unless they are someone like Soros or the Koch brothers who like to pull on the strings of nations.

 

[Daemon Sophic]

It does seem like most success stories nowadays come from people who had the advantage of an affluent background rather than the celebrated "rags to riches" trope.

But....but....but Trump only got “small” million dollar 0% “loan” from his dad.
https://phys.org/news/2017-04-upward-mobility-fallen-sharply.html

The U.S. Does Poorly On Yet Another Metric of Economic Mobility

 

[Nakosis]

Let’s look at your final 2/3. You have to admit that 1 rich dude, no matter how flamboyant, cannot spend and therefore support local business and provide local taxes, more than 400 middle income people living in the same town. Period. Even the extravagant guy with 4 cars in his garage, isn’t coming anywhere close to the 400-600 cars those middle level families are driving around. So there’s your jobs too. All those items, all that food all that heating and electricity, all that healthcare, that the masses Demand overwhelms BY FAR, any amount of extravagant spending by the rare super-rich dude.

And the masses demand jobs, which require folks with capital to invest.

As for the investment bit at the beginning of your post? You don’t think that if middle income people get some spare money, they won’t invest it? They won’t put it toward their kids’ futures?

If they have jobs.

You know what they won’t do? They won’t sock it away in Cayman Island or Swiss bank accounts, to the tune of hundreds of billions or even trillions of dollars $$$$$$$. They won’t waste it on yachts and Lamborghinis. Oh No! Won’t anybody think of those poor Italian car assembly guys.

Nobody get rich socking their capital away.

 

[Daemon Sophic]

Why should someone else being a billionaire effect you? Unless they are someone like Soros or the Koch brothers who like to pull on the strings of nations.

Exactly why you shouldn’t object to making America great again, by returning the billionaire’s gold back to the US people.

Unless you’re stating here and now that you are one of the 0.1%.

 

[Daemon Sophic]

QUOTE="Nakosis, post: 5961593, member: 34180"]And the masses demand jobs, which require folks with capital to invest.

—- Yeah. Middle class people with capital. Job growth, investments, employment, job satisfaction, the economy as a whole is much more driven by “the velocity of money” than by investments by the aristocracy.


If they have jobs.
—- That’s my point.



Nobody get rich socking their capital away. /QUOTE]But when you’re earning billions with almost no (15%) taxes then humans will stash some of it away (i.e. billions and billions) for a rainy day.

Furthermore the billions that you’re “earning” at your privileged aristocratic tax rate is not spent 100% back into the economy. Not even close to the rate that gets spent back into the economy when the working class have it to spend.

 

[Nakosis]

It's those of limited means who keep the economy going because the majority need to buy food, clothing and pay for shelter. The wealthy can spend their money on estates in other nations as well as hording their cash.

Nobody gets wealthy by hoarding cash. It's just a dumb idea. Hoarded cash has exactly zero value. It only has value when it's used in a economy. The investments and business enterprises support the government, which supports the poor. The middles class through jobs and investment in small business. Communities want wealthy folks to move into the neighborhood. Cities fall all over themselves just to get one of these wealthy folks to open up a business in their area. It's a great thing for any local economy.

 

[Audie]

Better idea: tax the **** out of the 1%.

Meanie

 

[Twilight Hue]

I'm in favor of a gross revenue tax with no loopholes. Take all the money that came in, apply and percentage and pay that. No special tax rates. No expenses. Nothing outside of a percentage that to me should be progressive but would be a lot lower percentage than today because of no loopholes or expenses.

If only it could be that way.

I forgot which politician said it, but taxes can become as simple and uncomplicated as filling it out on a postcard, yet the artificial complexity that has been created with loopholes, exemptions, and such has robbed so many people over the centuries in this country and has allowed income inequality to get to the levels that they are now.

If I remember basic economics 101 properly, the more you hoard your money and not spend it, the worst the country and the economy will get, and if you can stimulate spending, all the better. The only way I see that happening is if people are not financially overburdened across the board from the poorest to the most wealthy which I'm definitely for and wish that could happen.

 

[Revoltingest]

Nobody gets wealthy by hoarding cash. It's just a dumb idea. Hoarded cash has exactly zero value. It only has value when it's used in a economy. The investments and business enterprises support the government, which supports the poor. The middles class through jobs and investment in small business. Communities want wealthy folks to move into the neighborhood. Cities fall all over themselves just to get one of these wealthy folks to open up a business in their area. It's a great thing for any local economy.

We don't even know what is meant by "hoarding cash".
Money sitting in a bank is lent to borrowers, so it is not idle by any means.

 

[Nakosis]

Exactly why you shouldn’t object to making America great again, by returning the billionaire’s gold back to the US people.

Unless you’re stating here and now that you are one of the 0.1%.

That's exactly what happens. But honestly sure, give the money to the government so the government can decide who gets to be wealthy. The government is just one big multi-billionaire. Same difference. You'll make my brother in law happy. Maybe he needs a bigger house.

 

[Shadow Wolf]

Just in case you've forgotten, somebody else built their business for them.


Oh, come on....
Someone had to say it.

Some one else did show up to work to lay bricks, pipes, wires, hang and paint walls, install electric outlets, move in equipment and inventory, and all the other details and different jobs and certified personnel needed to build a building and business (individual mileage may vary and all that).

 

[Shadow Wolf]

That's exactly what happens. But honestly sure, give the money to the government so the government can decide who gets to be wealthy. The government is just one big multi-billionaire. Same difference. You'll make my brother in law happy. Maybe he needs a bigger house.

Promoting the general welfare of the public implies lifting everyone, not just a few. How many brilliant minds have been lost to society's collective for no other reason than the means for bettering themselves were unavailable? We help with school, sure, but we don't help find jobs to use that schooling with, and don't help people to get where those jobs are. We also tend to help people who contribute little, of their own volition, more than we help those in a purgatory of still needing some help but making too much to get it.

 

[Nakosis]

We don't even know what is meant by "hoarding cash".
Money sitting in a bank is lent to borrowers, so it is not idle by any means.

I'm assuming folks realize that money kept in a bank is invested by the bank. Maybe they think the rich stick money in a vault in their basement. They go visit once a week so they can bask in the glory of a symbol of wealth.

 

[Twilight Hue]

Nobody gets wealthy by hoarding cash. It's just a dumb idea. Hoarded cash has exactly zero value. It only has value when it's used in a economy. The investments and business enterprises support the government, which supports the poor. The middles class through jobs and investment in small business. Communities want wealthy folks to move into the neighborhood. Cities fall all over themselves just to get one of these wealthy folks to open up a business in their area. It's a great thing for any local economy.

I could never figure out any real legitimate reason as to why the rich hoard so much money and let it stagnate to the extent that they do.

It's as if they play a game with each other. Like who can make the most and claim bragging rights and influence with their peers, seemingly oblivious to the damage and rot they are causing to all the underlings that put them there in the first place.

 

[Revoltingest]

Some one else did show up to work to lay bricks, pipes, wires, hang and paint walls, install electric outlets, move in equipment and inventory, and all the other details and different jobs and certified personnel needed to build a building and business (individual mileage may vary and all that).

And the business owner paid wages for that help.
But they invested no money, & took no risks.
If they want to share in the profits, they should buy stock.

 

[Cooky]

 

[Twilight Hue]

We don't even know what is meant by "hoarding cash".
Money sitting in a bank is lent to borrowers, so it is not idle by any means.

I'm not under the impression that borrowing is the same as spending, given that it needs to be paid back with interest on top of it, which to me is not stimulation of the economy.

 

[Revoltingest]

I'm assuming folks realize that money kept in a bank is invested by the bank. Maybe they think the rich stick money in a vault in their basement. They go visit once a week so they can bask in the glory of a symbol of wealth.

Even if money were sitting in a vault or mattress, being out
of circulation would increase the value of money in circulation.
This is the flip side of government printing fiat currency, in which
case diluting the money supply decreases money's value.

 

[Nakosis]

I could never figure out any real legitimate reason as to why the rich hoard so much money and let it stagnate to the extent that they do.

It's as if they play a game with each other. Like who can make the most and claim bragging rights and influence with their peers, seemingly oblivious to the damage and rot they are causing to all the underlings that put them there in the first place.

Sure, money has no value until it's spent.