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To: elmatador who wrote (115442)1/9/2016 4:18:19 PM
From: louel1 Recommendation

Recommended By
Follies

  Read Replies (1) | Respond to of 219648
 
"Having income concentrated in the small wealthy segment of the population causes a lack of demand as most of that income is saved rather than spent."

This statement is False. These people are wealthy not because they hoarded it into savings. They have wealth because they keep it in revenue generating investments. Their money is reinvested over and over again in the form of loans to grow successful business enterprises. Or in reits or in some of the many other venues.

Seldom does money just sit idle. Financially aware folk realize if money is just sitting in a savings acct. Rather than working it is loosing value to inflation. Working funds create employment.