THE RICH DON’T CONSUME RETURNS ON SAVINGS (worth repeating) –“Piketty’s rich-ge

THE RICH DON’T CONSUME RETURNS ON SAVINGS

(worth repeating)

–“Piketty’s rich-get-ever-richer projection can happen only if the rich don’t live like rich people, that is, that they don’t spend their wealth or the income generated by their wealth. All those savings just sit there making the economy more productive and, in the process, raising wages for the proletariat while the top 1% don’t actually consume any of the returns on those savings. Piketty’s scenario is close to Charles Murray’s desire that the rich live a little less ostentatiously.”—Andrew Biggs.

(Except for food -restaurants- I bet I ‘live poorer’ than the middle class today. Almost every cent I’ve made goes into investment in my next business. Furthermore, to build ascentium, I lived on zero to 50K a year for two years, and at half my income for most of the rest, and even at my highest salary, less than 60% of my market value. Everything else was reinvested in the business. This is pretty common. Being rich isn’t a matter of consumption. It’s a matter of using your money to make money, rather than using your time, arms and legs. But then there is the entire state-corporatist-financial-sector that vampires off all of us. But entrepreneurs and private investors are not in that category.)