• maplesaga@lemmy.world
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    3 days ago

    The rich arent driving around to all the stores and buying up all the lawn mowers, they arent buying all the food at your local diner, what kind of hoarding are they doing?

    They generally just hold stocks as far as I’m aware, which are then used as collateral and lower borrowing rates, leading to more production and someone else consuming that wealth.

      • maplesaga@lemmy.world
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        3 days ago

        The rich have the most debt, they benefit from the cantillon effect more than they hoard cash. Elon Musk borrows all the money he spends.

        Which is government caused, and they are responding to incentives.

          • maplesaga@lemmy.world
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            2 days ago

            They horde nominal stock value, none of it is ever made liquid otherwise it would be taxed. They also arent buying fixed income since they have enough collateral to weather any storm.