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The rich are demonstrably less discerning of every marginal dollar. They will pay more for the exact same asset than someone who is only middle class or lower. This means the rich own everything, and therefore just keep getting richer, because the US abandoned any form of redistribution. For example, Kennebunkport is a very fucking wealthy town in Maine, including having a large vacation property for the Bush family. My father's entire business as a half retired contractor is predicated on rich, gay, techbros moving here from California and just throwing money at him until stuff is built. He can literally double a project price overnight, and they give him a bottle of $200 wine for it. The same is true of many businesses in the area. This is one of the reasons nobody builds lower class housing. Profit is usually percentage based. Why would you build ten starter homes, and work your ass off pleasing a bunch of poor people who have to be careful with their money because even getting a loan nowadays is stupidly difficult, when you can just build a couple mcmansions for the same output effort, where a bunch of rich fucks will come in and buy it in cash, for above market price, no questions asked, so you don't even have to build it well because the rich people are buying vibes and dreams, not an actual house, and they will happily eat a much higher profit margin per product. Large income disparity means that people stop serving the lower market, because Wall St won't invest in something that doesn't make line go up as much as just treating rich people as idiots that will pay stupid prices for things. This "makes sense", or at least is obvious when you remember that at a certain point of wealth, you have more money than you know what to do with, and you still cannot buy even a single extra second of time with infinite money, so spending time being discerning with your purchases is explicitly a waste. |