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Small-Scale Question Sunday for July 16, 2023

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

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Wealth distribution largely doesn’t matter. Consumption distribution does.

Honestly to deal with your question in some areas would basically be to tell you to read 50-100k of econ text then we can talk.

But for wealth and I’m too lazy to find the better origional posts this applies

https://crookedtimber.org/2021/09/25/the-scrooge-mcduck-theory-of-billionaires/

If you found a person with no desire to spend. They are perfectly happy playing video games in their mothers basement and let’s say ordering $50 of Ubereats a day. There is nothing they would rather do or think about. If Joe Biden printed $20 trillion dollar coin and gave it to this guy then wealth inequality would drastically increase. He would put the coin in his drawer. No other economic variables would be effected.

Of course this perfect example doesn’t entirely exists. Buffet wouldn’t change his consumption but he would control more assets and change a bunch of prices that way. But you still need to understand this model to realize that wealth distribution is less important and people care a lot more about their consumption than their bank account.