<story><title>Research suggests that when the rich bank, the rest borrow</title><url>https://review.chicagobooth.edu/economics/2021/article/how-1-percent-s-savings-buried-middle-class-debt</url></story><parent_chain></parent_chain><comment><author>vinhboy</author><text>&amp;gt; Say a corporation issues equity to the wealthy, but instead of spending the proceeds on research or equipment, puts that money into a time deposit at a bank, which in turn uses it to fund a mortgage for a less-affluent household.&lt;p&gt;Am I understanding this correctly? They are saying that because corporations are saving more, the savings become money that can be loaned to people, and because there is more money to loan, the price of everything goes up, therefore hurting the poor unintentionally? That&amp;#x27;s pretty interesting.</text></comment>
<story><title>Research suggests that when the rich bank, the rest borrow</title><url>https://review.chicagobooth.edu/economics/2021/article/how-1-percent-s-savings-buried-middle-class-debt</url></story><parent_chain></parent_chain><comment><author>pmoriarty</author><text>&lt;i&gt;&amp;quot;Ideally, all those savings would be channeled into productive investments such as research and development, or practical equipment, or new roads, or even new
yachts--investments that would promote growth in the economy.&amp;quot;&lt;/i&gt;&lt;p&gt;It&amp;#x27;s important to keep in mind that even when that money is spent, there&amp;#x27;s no guarantee it&amp;#x27;ll be spent domestically.&lt;p&gt;Just as an example, Jeff Bezos bought his $500 million superyacht from Oceanco, a Dutch yachtmaker.&lt;p&gt;Increasingly, the ultra-rich are, like many of the companies they control, multinational.</text></comment>