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Comment by Kaiyou | Hacker News Reader

Not really, individuals may make mistakes, but it's nothing to the insanity a mass of people is capable of. (Source: Mass Psychology, by Gustave LeBon)

Distributing wealth is self-destructive behavior. Generally, you want wealth in capable hands, who can use this wealth to create more wealth. You don't just want to piss it away.

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The idea that wealth inequality is just due to it going to "capable hands" is a hell of an unsupported assertion.

"Pissing it away" is also known as buying things, which drives economic growth. The poor spend every penny they make, and this is generally considered good for the economy.

Investment drives growth, not consumption.

And small investments tend to have better returns.

Buying booze and drinking it isn't an investment.

No, but starting a small business is.

Everyone can start a small business right now, what's your point?

Investment requires returns, which mean people have to consume the resulting product, be it goods or services.

Yes, one can't exist without the other, but economically speaking, it's impossible to consume your way to prosperity. You must increase productivity, and this is done through investment.

We tried consuming our way to prosperity during the housing bubble in the early 2000s. That turned out how you might expect.

Buying stuff doesn't facilitate growth. Look at all the toilet paper people buy recently. Where's your growth?

I'm sure toilet paper manufacturers are doing OK right now.

The growth in that sector is swallowed up by the overall hard-stop of the entire economy.

They were doing okay before, but they cannot grow, since the increase in demand will not be sustained.

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