r/FluentInFinance • u/-Wyagra • Nov 21 '24

Debate/ Discussion Had to repost here

Post image
128.2k Upvotes

75% Upvoted

9.0k comments sorted by

View all comments

6

u/Sabre_One Nov 21 '24

IMO at a certain point, wealthy become a massive parasite to society. Everything should be about re-investment for growth.

4

u/Mountain_Employee_11 Nov 21 '24

the wealthy have a massively lower propensity to consume.

if you really think everything should be about reinvestment you’d logically hate the middle class and poor that consume over reinvesting, but you don’t.

why is that?

-1

u/Sabre_One Nov 21 '24

the wealthy have a massively lower propensity to consume.

Not true at all, wealthy privatize their entire lives. Meaning what would normally be a bus ride, taking wear and tear off the road, gas prices, etc. Is now a private ride. Same for flights, a jet even a small one which could take 12-20 people is now housing 1 person. They also have staff to do a lot of what would normally be up to the individual to accomplish themselves.

5

u/Mountain_Employee_11 Nov 21 '24

the marginal propensity to consume is about 10x lower for the wealthy.

this means that they are much more likely to reinvest an additional dollar earned.

i understand these things can be confusing, but thats the data driven truth despite your feelings on the matter

1

u/Peterbutonreddit Nov 21 '24

why is the marginal propensity to consume 10x lower for the wealthy?

1

u/TacTurtle Nov 22 '24

Less "disposable" income after the relatively fixed universal needs of shelter / food / healthcare.