What should society do with the economic surplus?

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Joe Leote

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Apr 22, 2024, 7:09:14 PMApr 22

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This is a philosophical talk about neo-feudalism that discusses what wealthy families do with their money:

Demonetization is the idea that rich families are taking money out of the economy. Economists would argue that saving equals investment so money is not taken out of economic circulation. It is spent for investment or consumption or government services or net imports. But the banking sector does not only create savings for investment in new homes or new factories or new capital. The banking sector now creates money to speculate and/or purchase real estate and capital assets that already exist on the secondary market. The money that is created by society for these secondary investment purposes distorts the traditional political-economic analysis. I do not think economists have developed models to understand and explain the financialized world we live in.