this post was submitted on 25 Nov 2025
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If they spent every available dollar they had on yachts, then trickle-down economics would work. But, obviously they don't.
On the other hand, if you hand a poor person $1000, it's going to be spent almost immediately. Debts will be paid off, essential repairs will be done, groceries will be purchased, family members in need will be helped. That money won't "trickle down" because there's no "down" from there, but it will quickly spread across the economy.
There is some value in giving a rich person, or a rich company money. Poor people aren't able to make investments in the future because they have so many pressing immediate needs. A person or company might put some money towards something that won't pay off for years or maybe decades. So, there's some value in that. With too much money, investments are no longer smart because it doesn't matter anymore.