Sunday, July 22, 2012

It's more like Trickle Out...

I've always strongly believe "trickle down" never made any sense. More recently the rhetoric is about the wealth as the "job creators". I'm not sure this is any more justified. For me it seems much more likely the money spent by the wealthy mostly just circulates amongst the wealthy.

If you had a sudden windfall of over $10M what would you do with it? Start a risky new venture where you could very easily lose it all (job creation)? Spend it all right away on your friends and family within the local economy (trickle down)? Or would you buy a nice mansion and luxury car, hire an expensive accountant/lawyer/estate planner and park your money in investments and tax havens?

It seems the reality is very much the latter.

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