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Yes it’s a drop in the bucket. The point is he’s not sitting on the cash and keeping it out of circulation.

You realize the value of an investment, particularly the growth, doesn't really exist, right? Sure, the initial investment went somewhere, but that 10% annual gain doesn't help the company or the economy. Stock growth is the result of a growing company, it doesn't help the company to grow.

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I totally agree. The point I was countering was the rich man was just sitting on the cash and it was “out of circulation”. That’s far from the truth. Rich people don’t get that way, nor stay that way, by just sitting on their cash.

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No, it’s called economics 101. Where do you think the money comes from that businesses use to buy buildings, build factories, buy equipment etc? Do you think the tooth fairy leaves it under the pillow? No, most of it comes from investors putting their money into circulation. I only have a moderate income but I invested money in the company I work for. We in turn use that money to buy machinery and make improvements. If not for those improvements and machinery we could not stay in business and everybody is out of a job. No, we are hiring, and my investment grows in value. I also invest money elsewhere. And it creates jobs and opportunities elsewhere too. And my investments continue to grow. Very soon when I’m unable to work, instead of depending upon $600 handouts, I will live off my investments. Wise people put their money to work. Fools live paycheck to paycheck and hope the lottery, and tooth fairy, pay off.

Much of what you said is correct to a point. People with extra money don't keep it locked away in a vault like scrooge mcduck, they put it to work for them. But you are soooo wrong with the blanket statement "fools live paycheck to paycheck" Poor people live paycheck to paycheck because their pay barely covers rent utilities and food. Yes, they spend some of it "foolishly" but I say having internet service is more of a need than a luxury nowadays. Now, if someone is making good money and living a better than good money lifestyle without saving anything, yeah, they are foolish.

He is wrong, because that's indeed what the richest people do. Most investments nowadays come from banks who invest middle class savings, the rich keep more money tied up in assets like huge properties and yachts. The times that rich people founded other companies assets are long gone. And they expect much more outpay then they invest, sucking more money out zhan they put in. Also, investment isn't circulation, only consum generated circulation of money. So that poor person living paycheck to paycheck does indeed generate the money paying for the assets of the company while the investor still expects two dollars back for one dollar investment. The customer pays the price and the running costs.

When I say fools live paycheck to paycheck I’m speaking mainly of people with good incomes that waste it on big cars, big house etc. Then one day when they can no longer work they have nothing to fall back on. - I realize it’s all some people can do to put food on their back and have a roof over their head, if that’s even possible for some. They need an education as much as they need financial help. Somehow we need to figure out how to give them both.

You're way off on how most investments benefit companies. If you're a venture capitalist, then yeah any money you invest goes to helping the company grow. However, if you're buying stocks in the market, the money you spend to buy the stock goes to the investor who is selling his stock. It doesn't go to the company unless the company is selling new shares. Most investments go to other investors. What really helps companies grow are people buying their products. So that poor person getting $600 and spending it is directly helping those companies to stay in business and grow. Spending money does way more for the economy than saving it (whether in a bank account or a brokerage account).

You better work on it then

Somehow we need to create a very robust middle class. I believe around 80% of the population should have enough income to live comfortably and invest in their future. Right now far too many people are at the poor level, just one minor hit (car repair, appliance replacement, whatever) from severe hunger, shut off utilities or even homelessness. I don't believe give money to any group will fix the core issues, but money to the poor might stave off disaster. I have zero clue how to even begin to fix the core issues, but pitting the haves and the have-nots against each other is not helpful. Unfortunately, that seems to be the plan for many in power.

Adding, the remaining 20% would be at either extreme of wealth.

Bob Wiley: WHO PUTS FOOD ON THEIR BACK??????

Bob... are you aware that there are billionaires out there who insist on paying minimum wage to their warehouse workers and threat them terribly. Some rich people don't give to charity and think everyone can succeed like they did... even though they were born with silver spoon in their mouths. Bob Wiley, are you that kind of person? You continue to add comments that show that you are a callous, insensitive ****.