Tuesday, June 4, 2013

Should rich spend more?

Just recently the news came out that Sean Parker spend 9 million on his wedding. People were going crazy over this saying why he had to spend so much money. That it is rediculous. Is it?

Lets say he only spent 100k, than whay will happen to the rest 8.9 million. It will be in his bank or stock. Now either the bank or himselfy will make more money out of it. None of that is going to the poor. But, if he spends 9 million, then at least that money is being distributed among the people that bring the wedding together. Meaning, at least some of him money is going back to the people which would otherwise just sit on his account.

Everyone gets excited to hear that Warren Buffet still lives on his 35k dollar house. But, think what would happen if he were to build 100 million dollar house, which he obviously can afford to. That 100 million dollar would be able to employ 2000 people for a full year with average salary of 50k/year. About 50k/year being average house hold income in US, that is enough to sustain 2000 families for whole year.

Now, is it good that the rich spend extravagantly or rather keep the money in the bank?