huey_m

I’m not going to find them now, but if you’re interested, there are a lot of studies that look at how money moves through the economy and which dollars are more impactful. While dollars saved do get reinvested in a roundabout way, their economic impact is pennies on the dollar compared to direct spending or investment into business. It’s just far better for any market economy to prevent dollars from pooling into savings beyond simple prudence and is far better to put them directly to work via spending.

Even from a capitalist perspective this makes sense. Money pooling at the top is money not moving through the economy; 100% taxes encourage reinvestment and philanthropy to avoid the tax.