[xingped]

You know what, that's a great idea! Surely nothing bad will ever come from increasing wealth disparity by letting wealthy people hoard all the money, right? If we let them hoard all the money, then surely some will spill back down to the poor. A trickle perhaps. Actually that's a good name. Let's call it "trickle down economics". Bam! That's a winner right there! Surely no one else has tried this idea yet, right? I bet we'll only see amazing things from this new economy!

[ecshafer]

The issue with trickle down economics is that there are: 1. Taxes on labor, lower taxes on wealth. 2. A lack of taxes on land and rent. 3. Strict controls on developing land.

This turns housing into an asset class, punishes productive labor, and incentivizes parking capital in rent seeking operations (land, patents, monopolies).