Billionaires are necessary because they take money out of circulation, providing some deflationary pressure to the monetary system. If we were to distribute all their wealth, we’d have such high inflation that the entire economy would collapse.
- A Reddit brained economics teacher
Yes, hoarding is deflationary. It’s a leakage of demand. It’s why tax payments by billionaires have less real economic value than tax payments by workers who have higher propensity to consume.
But there is an alternative, remove all the electronic entries held by billionaires by way of tax.
Then spend in a way that doesn’t cause inflation for example, a universal right to employment at minimum wage. Even the inflation part is exaggarted since capitalism esp it’s neoliberal form is a demand constrained system.