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Originally Posted by PeterG
Maxum--an excellent question and a great point. I agree that it's all about retail sales.
As BiggD points out, the rich save much more than others as a percent of income. There's plenty of data on this, and it all points in the same direction.
As you can see in the link below, the middle quintile saves 11% of their income and the top 1% saves 51% of their income. So if a trillion dollar tax cut goes to the middle class, $890 billion gets spent, driving retail sales. But if we give a trillion dollar break to the top 1%, only $490 billion gets spent retail. So the best way to drive retail is to give the tax break to those still struggling financially.
http://www.businessinsider.com/chart...e-level-2013-3 |
No what I said is it is NOT all about retail sales. If it were there would be no need for venture capitol firms and the stock market for that matter.
Investment is the lifeblood of all business.
However I'm a bit shocked that you would favor big business. Odd all things considered. Think about it if you give money to those that are going to go out and immediately spend it who does that favor? Ah the already established "big businesses" that your political philosophy regularly chastises. What about the small guy, maybe the startup that is working on something new and innovative who may not be operating on a profit and strictly on investment capitol. Guess those companies and all their employees don't matter! Who do you think funds these? Not the guy living paycheck to paycheck.
Dividing wealth doesn't create more, and when it's all gone then what?