What is this, a CBDC ad?
Its called inflation. And billionaires dont hoard money, they hoard assets. Most of the time inflation just makes them richer, as salaries drain out year over year and their stock prices keep going up.
Pro hoarders never hoard money
For Billionaires+ only
It’s fucking sad you even need the +. Billionaires should not exist, even less so trillionaires.
You mean gift cards?
Please note that Elon Musk doesn’t hoard money in the same way that Scrooge McDuck does
Man, I wish the world’s richest man was just a cheap skate instead of a corrupt sociopathic nazi fraud edgelord.
That’s pretty much always been an apt description of the World’s richest person.
Yes but he does hoard wealth and assets.
Please explain.
It does. It’s called inflation.
Modern millionaires don’t hoard cash, just like ancient millionaires didn’t hoard apples or wheat. Sure, millionaires always had something perishable, but most of the wealth was/is tied in things like land, buildings, companies, ships, cattle, slaves, stocks, bonds, loans etc.
Inflation has little impact on the wealthy. I should have said wealth or assets
It makes them invest their money which puts it to good use. That makes credit cheaper for everyone else.
Inequality is an issue, but that’s what taxes are for. You don’t solve inequality by breaking the economy.
Yeah that’s a good clarification. If land and old paintings had had an expiration date…
I mean the Mexican government makes it so that land can only be owned for 100 years.
That still means that the rich kids can inherit land from their billionaire parents. Generational wealth can still exist.
Yeah, also the leases can be renewed and it just ends up being a way to collect taxes.
And schools should have economics and personal finances as part of the curriculum.
Nobody is hoarding money. Scrooge McDuck is a bad caricature of a rich person - that’s not how any of it works.
And schools should have economics and personal finances as part of the curriculum.
the problem with this “common sense” approach is that it emphasizes and reinforces personal responsibility in a system that’s rigged to take advantage of every human foible.
I call this the “late-fee” fallacy. As in the idea that video store late fees are intended to encourage responsible behavior, not a revenue stream that the business relies on. Overdraft fees are another great example.
Financial responsibility would ruin the economy.
As people said you don’t want to completely stop savings but it would make sense for social benefits. Take snap. You could limit people to not keeping in excess of one months benefits in savings (the reason you might allow a month is so that they can do something special on a holiday or birhtday or such). So 2x times their benefit would be the maximum allowed holding. Now lets say you limit snap to things grown and processed in the US. Now it acts as an economic stimulus as well as a social safety net and you prevent the hoarding thing. You could convert all argricutural type aid to it and it would likely be better for the industry. Now note you stopped hoarding of the currency but that does not stop hoarding. Some folks if they see they have not used the full benefit will buy some treats like ice cream cake or something. Others however will buy canned goods or rice and beans and hoard that. Granted those folke like hoarded anyway. Similarly if money in general had an expiration date then rich people would buy more single family homes and warehoused and precious metals and such.
Whoa whoa whoa, you think people are saving their food stamps and not spending all of them every month? I’d love to actually see the data on that because I would be incredibly surprised. Because food stamps do not cover the monthly cost of food.
Sorry I often propose universal snap and forgot I had not put that in this particular comment.
This has actually been tried. It’s called [https://en.wikipedia.org/wiki/Demurrage_currency](demurrage currency). Basically, every note decreases in value every week: in 1930s Austria, this was accomplished by requiring people to get regular stamps to keep their money good, but every stamp reduced the value of the note.
This encourages people to spend money instead of hoarding it, but the obvious downside is that it makes saving functionally impossible.
very cool thanks :)
It already does, it’s called inflation.
Also are you talking about physical money, or bank accounts, or what…?
inflation has little effect on the wealthy. I should have said wealth or assets.
That would disproportionately affect the poor since the money owned by the wealthy is overwhelmingly tied up in other assets, index funds etc
Your right I should have said wealth or assets
A wealth tax of just 1%/year is sufficient to prevent new billionaires from forming and slowly eliminating existing billionaires without having to bring out the choppy boys. Given current public anger, they would be wise to support such things.
How so? I support the idea of a wealth tax, but I would have expected the billionaires to be getting way above a 1% return on their assets.
Well, what do you think is going to happen to stock prices when billionaires are forced to liquidate over $200B in stocks and bonds a year just to cover their taxes? The only other option is dividends being issued and that would reduce the prices of the stocks as well.
It may bring down the overall numbers, but given the rate of passive growth would still be several times the wealth tax, I see no reason they would disappear or new ones would stop appearing.
Norway as an example has had their wealth tax for over a century. They still have one of the highest rates of billionaires per capita worldwide.
The passive growth for the last 70 years was largely due to governments buying stocks (to prepare for future budget deficits from a population swing) and the population flooding the market trying to get returns and effectively boosting market prices.
If you look over a longer history, you will see that stocks on average did barely better than inflation. And that on average stock prices were close to equal to 4x the annual dividend issued.
Most stocks today have no dividends. It is a game of greater fools.
Yes, only already rich should have an ability to use capital. Peons should be stripped of even theoretical possibility to get any capital-tier sum. Only gas and bread money.
I was thinking more of people having what they can use and not horad wealth and assets.
