The Rich are Hoarding Cash at Record Level


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The rich are saving their money at a record level. From CNBC:

According to research from American Express Publishing and Harrison Group, the savings rate of the wealthiest 1 percent soared to 37 percent in the second quarter. That’s up from 34 percent in the second quarter of 2012—and more than three times their savings rate in 2007. A separate study from Bank of America recently found that 56 percent of millionaires have a “substantial” amount of cash. Only 16 percent of them plan to invest that cash in the next couple of months. And only 40 percent plan to invest it over the next two years.

It’s perfectly fine for people to save their own money, but for years politicians have promised that the key to a healthy economy is ensuring rich people make more money – the more the “Job Creators” make, the more they’ll spend, the more people they hire, the prettier butterflies become, the better food will taste, the happier babies will be – basically the world will be awesome-sauce. So how does trickle-down policy square with reality that money doesn’t trickle down, doesn’t go to investment, doesn’t go to hiring, higher wages, or even go back into the system at all? It doesn’t. It’s bullshit.

More money saved means less going back into the economy. Policies that depend on rewards trickling down from the top 1% to the other 99% make the economy worse. There is no other way around it. 40 years of this crap exacerbated income inequality, and one only need to look at the post-recession “recovery” to see how the top 1% – and only the top 1% – are better off now than before 2008.

I’m certainly not advocating any type of socialism, but definitely saying that when it comes to economic policy-making, NEVER listen to the asshole that uses “Job Creators” in their argument.

Read: The rich are saving cash at a record pace.