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1/ Thought experiment:
Say we zeroed out half the wealth of the top X%, which holds $20T. $10T, gone. (Total U.S. household wealth, btw, is about $110T.)
Say we zeroed out half the wealth of the top X%, which holds $20T. $10T, gone. (Total U.S. household wealth, btw, is about $110T.)
2/ Those people turn over, spend, less than 5% of their wealth each year. So there'd be ~$500B less spending, out of $20T total GDP. A 2.5% decline. Eeek.
3/ But producers would use less of their efforts to produce the low-utility-per-dollar goods and services that very rich people buy. (Cuz incentives matter. IOW, spending causes production.)
4/ Those production resources (mainly people's hours, efforts, skills, abilities) would be freed up to produce higher-utility goods and services.
Just a thought experiment. NOT a policy proposal.
Just a thought experiment. NOT a policy proposal.
