August 19, 2013
Experts are saying that among America’s richest inhabitants, the top one percent have saved 37 cents per dollar this year, however they are not using their savings productively, instead they are hoarding cash. Therefore America’s wealthiest people are taking a larger share of the income. The solution to equalize this intake of money would be to raise taxes on the rich.
“That increased concentration of wealth in the hands of a few, combined with the effects of the Great Recession and the slow recovery, has meant less money in the hands of low- and middle-income Americans — who are more likely to spend it — decreasing demand for goods and services, according to Sam Pizzigati”
The Article goes on to quote more of Pizzigati’s book when concerning how foolish it is to let the wealth stay at the top. The solution of taxing the rich is to encourage them to move their money into less-taxed categories. Michael Linden, the Center for American Progress’ managing director for economic policy say’s:
“If the choice is between putting the money under a rich guy’s super super expensive mattress or giving it to a middle-class family who needs to pay for child care,” Linden said, “I’d rather pay for child care. That’s better for the middle-class family and that’s better for the economy.”