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Originally Posted by ilduclo

the austerity measures that are taken are largely reductions to payments to lower income people. these people spend what they take in, and usually right away, and the money they spend is almost immediately into the economy and providing what is called a "multilplier effect" so that the money is spent over and over again and continues to work to stimulate the economy.

when payments are made to higher income people a lot of time it is not as good for the overall economy, some of it is spent, but a lot goes to investments and for really high income people (rMoney) overseas.

these are not speculations, but established economic facts. however, they are ideas that are not well known because it is not in the interests of the wealthy for these ideas to be well understood.

exactly

though i would say "it is not in the SHORT-TERM interests of the wealthy" because some wealthy people see it better. warren buffett sees it and henry ford saw it when he paid his workers enough so they could afford to buy a car (unheard of at the time).

the koch brothers however sell toilet paper so they don't give a fuck about people being able to afford pricier goods.