The money is out there somewhere creating wealth. It’s not in their mattresses.
>>>The money is out there somewhere creating wealth. It’s not in their mattresses.
But one household can only spend so much. The marginal propensity to spend and the wealth effect are smaller for someone with great wealth. As the top 10% move from 55% of total wealth to 65% of wealth and then towards 75% of all wealth, that could create a governor on the growth of the economy.