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From: rpk@mit-eddie.UUCP (Robert Krajewski)
Newsgroups: net.politics
Subject: The idle money of the rich
Message-ID: <1595@mit-eddie.UUCP>
Date: Tue, 10-Apr-84 22:27:56 EST
Article-I.D.: mit-eddi.1595
Posted: Tue Apr 10 22:27:56 1984
Date-Received: Thu, 12-Apr-84 04:46:06 EST
References: <302@iuvax.UUCP>
Organization: MIT, Cambridge, MA
Lines: 15

While the holdings of the rich may not themselves increase demand,
such holdings are usually not hidden under the bed, but put into
banks, invested in companies, or invested in more sophisticated ways
(like mutual funds and bonds).  This increases the pool of capital needed for
creation and expansion of businesses  -- and *that* results in a higher
demand.

I'm not saying that all the investment may be socially useful (or its
contrary), but the money has to go somewhere !
-- 
``Bob'' (Robert P. Krajewski)
ARPA:		RpK@MC
MIT Local:	RpK@OZ
UUCP:		genradbo!miteddie!rpk
	or	genradbo!miteddie!mitvax!rpk