"They work harder than the cash in the hands of the poor. The rich just don't stuff their mattresses, which as we know is an activility highly detrimental to economy."
well, while chasing high yield junk bonds was arguably good for the companies at risk, its hard for me to immediately swallow that all of the activities of hedge funds, commodities speculation, nikkei, china, tech, whatever, is the best use for that cash.
why, specifically, is stimulating investment more efficient than simulating consumption? i think we all can agree that the latter (1) gives a quicker and stronger short-term boost, and (2) is probably the "nicer" thing to do but (3) why is it better in the long run? it seems like it just brings about a permanent redistribution of wealth. which i suppose can be good in some eyes ...
