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Comment by FranzFerdiNaN | Hacker News Reader

Everyone should earn more. The best thing you can do for the economy is giving ordinary people more money.

Why? Aside from the fact that if you give everybody more money you're just raising the supply of money in the market so people essentially have the same purchasing power as before, except now their integer in a database is bigger.

This isn't how the economy works. If thst was the case nobody would ever earn more, which of course isn't true.

Wages are only a small part of a products price, and there also is enough evidence that for example raising the minimum wage does actually help people.

For why it works, its simple: non-rich people spend any extra money, rich people don't do anything useful with their extra money. Which is also why trickle-down economics is a scam when its being presented as a way to help poor or average people. It does work of course as a way to transfer wealth from the poor to the rich.

This is exactly how the economy works. If you raise the supply of money, prices are going to rise. Does not matter whether you print it or you just extract it from someone's bank account and redistribute it. That's Econ101. You're equating SOME people getting to earn more, with your original statement that EVERYBODY should be earning more. Well that doesn't work.

Also, rich people don't do anything with their extra money? The exact opposite is true. Most of rich people's wealth is not in cash, it's in investments - while the average folk's extra money is "invested" in products that they can't afford, like the latest iPhone or a fancy house/car. No rich person that didn't just inherit their wealth lets their money sit in a bank except for a small percentage of their wealth, because they know it's a bad deal. How does trickle down economics transfer wealth from the poor to the rich? The poor should have wealth to begin with, in order for it to be transferred.

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