What is the real impact of increased disparity in income distribution?

A study in the American Sociological Review tells us the (not-so) news that Republican administrations are responsible for the increasing portion of income that goes to the top 1%. It’s scientific proof that Republicans make the rich richer.

Well, we’ve be discussing this for ages, but what does this really mean in our lives as we live them? And what do the rich do with all that extra wealth?

It seems to me that they have to either invest it or spend it. What is the difference between them investing or spending the wealth compared to the 99% investing or spending it? Does their investing and spending create fewer jobs than our investing and spending? Or does it make no difference?

If they invest, don’t they have to build stuff? Don’t they have to hire people to build or make stuff? If they spend, doesn’t that support jobs for people who make the stuff they buy?

What if we save money? Doesn’t that get invested, and we earn a return. Does that lead to more or less job creation that 1% investments? Of course, the 1% get the return on investments and we don’t, if we don’t have money to invest.

Similarly with spending. The 1% benefits from what they buy, and we don’t, if we have no money to buy with. But if they buy and invest, don’t we get jobs, and then we get money to invest or spend?

And if they have more money, don’t they have to invest or spend more? Unless they send it out of the country. Which is probably what is happening these days. Giving more money to the 1% is probably a way of investing overseas, and helping the rest of the world.

Well, what do you think?