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Richard Stallman's Political Notes

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Trickle-up economics

mercredi 2 juin 2021 à 02:00

Trickle-up economics: economic modeling including the "velocity of wealth" predicts that giving a larger share of economic growth to the non-wealthy increases economic growth, and this benefits everyone including the wealthy — while decreasing the gap between them.

The result is to increase the total level of consumption. That would be good if it benefited mainly the non-wealthy, except for one problem: nowadays it is not clear that we can sustain more consumption in the US.