Submitted by maria (not verified) on Mon, 2011-10-31 22:22.
Think about it in percentages. A poor person spends ALL of there money on goods and services. That stimulates the economy. A rich person spends a considerably lower percentage of their earnings on goods and services. The rest they invest in stocks, banks, etc. They invest to make MORE money. A poor person cannot do this. It takes money to make money. Thats why the poor get poorer and the rich get richer.
your analogy is wrong
Think about it in percentages. A poor person spends ALL of there money on goods and services. That stimulates the economy. A rich person spends a considerably lower percentage of their earnings on goods and services. The rest they invest in stocks, banks, etc. They invest to make MORE money. A poor person cannot do this. It takes money to make money. Thats why the poor get poorer and the rich get richer.