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Comment · Thu, April 19, 2012

" Obama took a not-too-subtle swipe at his Republican opponent, Mitt Romney, declaring: “I wasn’t born with a silver spoon in my mouth.” There remains a role for government to give everybody a “fair shot,” Obama said — not just the wealthy."

What they were answering

LukaCola · 3 points

Okay let me break down simply why higher taxation on the rich is good.

The rich are rich because they have expendable income, and a lot of it. When they want to do something that requires money, they are not held back. When they get more money, they save it, because they already have bought what they need or want.

The middle and lower class have much less expendable income and many expenses they cannot pay. When they have money, they spend it. They will keep buying their wants and needs because those expenses surpass their income.

Now the economy does best when the money is flowing. The fastest flow is the best economy, everyone spending means that everyone's earning.

This is why it is dangerous to save during a recession. I know it sounds counterintuitive but as has been proven time and again it's when spending is up that the economy booms. And as stated, the rich are the ones who save, much more than they spend.

We need rich of course, but not now. Right now we need a strong middle class.

u/MisterYouAreSoDumb

The only way we can have a strong middle class is to curb the rampant devaluation of our currency! Taxes are not the most detrimental issue we are facing, it's the loss of spending power we have from the fact that our dollar buys less and less each year! We need to address that now!

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