I'm not saying a wealthy person is hoarding money, I'm saying that 1. they reintroduce that money for the purpose of further profit generation (meaing that over time the goal is to accumulate more ownership of productive goods or businesses) rather than exchange that money for goods and services directly.
This means you favor 1. non risky ventures and 2. likely growth centers. If in an entire economy you only have this one way wealth ciphon effect, that means that money can be caught in an independent economic loop (especially after legislative manipulation makes some markets no-risk, like mortgages in the early 2000s, or military contracts, or telecom monopolies) of the majority of the population.
The wealthy aren't buying your small town trinkets from the general store, or even hiring anyone living in most rural areas. They interact with a small subset of society directly, and in most cases the money they exchange won't end up at your mom and pop shop, it is much more likely to end up back at walmart peppering the rich guys pocket again.
It is more about recogition of the game of economics we are all enveloped in. Most wealthy people actively engage and play the game to make a profit. Most people are ignorant to their participation and don't understand that every purchase they make is a power transfer from themselves to someone else. On topic, advertising helps manipulate that exchange in the marketers favor because most ads attempt to illicit an emotional response drive to purchase.
This means you favor 1. non risky ventures and 2. likely growth centers. If in an entire economy you only have this one way wealth ciphon effect, that means that money can be caught in an independent economic loop (especially after legislative manipulation makes some markets no-risk, like mortgages in the early 2000s, or military contracts, or telecom monopolies) of the majority of the population.
The wealthy aren't buying your small town trinkets from the general store, or even hiring anyone living in most rural areas. They interact with a small subset of society directly, and in most cases the money they exchange won't end up at your mom and pop shop, it is much more likely to end up back at walmart peppering the rich guys pocket again.
It is more about recogition of the game of economics we are all enveloped in. Most wealthy people actively engage and play the game to make a profit. Most people are ignorant to their participation and don't understand that every purchase they make is a power transfer from themselves to someone else. On topic, advertising helps manipulate that exchange in the marketers favor because most ads attempt to illicit an emotional response drive to purchase.