“What sustains the American economy is consumption, and the people at the top spend on consumption a smaller fraction than those at the bottom. In fact, those at the bottom have to — to get by — spend about basically 100 percent. So when you move money from the bottom and the middle to the top, overall spending gets constrained, and that weakens the economy,” economist Joseph Stiglitz said on MSNBC's "Up with Chris Hayes" . . .
A note for me to remember some dumb economics: Stiglitz on inequality
This claim is based on the crazy argument that people don't spend all of their money. It is almost as if wealthy people are digging a hole in their back yard and burying the money there. But wealthy people's money doesn't just disappear. If they put it in the bank, it is loaned out to others.