Eight billionaires 'as rich as world's poorest half'

> The problem comes in actually using that money to capture wealth instead of increasing your expenses elsewhere. The latter of which is very easy to do.

Absolutely. I think this is where the idea of trickle down economics fails. It assumes that mo' money mo' expenses. I guess there's only so much you can buy with 80 Billion before that assumption breaks down.

“Far out in the uncharted backwaters of the unfashionable end of the Western spiral arm of the galaxy lies a small unregarded yellow sun. Orbiting this, at a distance of roughly ninety million miles is an utterly insignificant little blue-green planet, whose ape descended life forms are so amazingly primitive that they still think digital watches are a pretty neat idea. This planet has, or had, a problem, which was this. Most of the people living on it were unhappy for pretty much of the time. Many solutions were suggested for this problem, but most of these were largely concerned with the movements of small, green pieces of paper, which is odd, because on the whole, it wasn't the small, green pieces of paper which were unhappy. And so the problem remained, and lots of the people were mean, and most of them were miserable, even the ones with digital watches. Many were increasingly of the opinion that they'd all made a big mistake coming down from the trees in the first place, and some said that even the trees had been a bad move, and that no-one should ever have left the oceans. And then one day, nearly two thousand years after one man had been nailed to a tree for saying how great it would be to be nice to people for a change, a girl, sitting on her own in a small cafe in Rickmansworth suddenly realised what it was that had been going wrong all this time and she finally knew how the world could be made a good and happy place. This time it was right, it would work, and no-one would have to get nalied to anything. Sadly, however, before she could get to a phone to tell anyone, the Earth was unexpectedly demolished to make way for a new hyperspace bypass and so the idea was lost forever.”

The data doesn't support this[1]. Wages are stagnant, but only with respect to inflation. Wages are increasing at rate of inflation, more or less.

> Absolutely. I think this is where the idea of trickle down economics fails.

For argument's sake, let's say that the 'trickle' has lead to food being $100/month cheaper. Do you put $100/month you have gained into the stock market, with average returns of 7%, or do you go and sign up for a smartphone plan?

If, assuming you are young, you choose the former, you will have an average wealth of ~$250,000 by the time you retire, which will then provide ~$18K per year recurring income to retire on. If you choose the latter, you will have ~$0 of wealth when you retire and no income.

The choice seems fairly obvious, but something tells me that most (myself included) would choose the smartphone phone plan instead. In reality, you are taking the wealth you have gained (~$250K) and are spending it on a service that you wanted to have instead (a smartphone).

So, I agree, that doesn't work. People have shown that they are willing to spend the gains they have made. But if we found a different way to funnel $250K onto the balance sheet, would that actually stop them from spending it? Or would they still find some way to turn that $250K of wealth into a smartphone (or whatever consumable someone wants to enjoy) and be no further ahead?

[1] http://www.tradingeconomics.com/united-states/wages

Sounds like a pretty straight-forward idea to me. How else best to achieve a fairer distribution? "Trickle down"?