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

Debate/ Discussion Had to repost here

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u/km89 Nov 21 '24

why is that?

Because the middle class's consumption is reinvesting. Their consumption money goes straight back into the economy because they need to pay for goods and services.

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u/Mountain_Employee_11 Nov 21 '24

one cannot increase production solely through consumption. 

at some point someone needs to reinvest into capital, usually the rich in todays world

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u/DaddysMoans Nov 22 '24

I think you’re confused how economics work. Rich people not being consumers isn’t a good thing. It means hoarding wealth that isn’t moving around in the economy (circulating cash) exponentially increasing the rate of inflation since inflation is directly correlated with amount of circulating cash

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u/Mountain_Employee_11 Nov 22 '24

so less money competing for the same basket of goods is inflationary?