"Are all of the hundreds of thousands of Walmart shareholders stashing billions? What about everyone holding shares in a mutual fund? All sitting on their yacht?"
Ah, clever twist, but let’s not jumble the deck. There's a cosmic chasm between the majority of shareholders and the Waltons of the world. By the way, the Walton family – you know, the ones who still own over 50% of Walmart shares – are worth a whopping $238.2 billion as of August 2021, according to
Forbes. There's no armada of yachts, but they could probably buy a pretty nice one, or a few hundred.
"I'm not spending my dividends locally? Why not?"
Sure, you might spend your dividends locally, but let’s take it to scale. When a low-income person gets an extra dollar, they’re more likely to spend it immediately on goods and services. For a billionaire, that extra dollar might as well join its pals in the savings account or go on a vacation to an offshore account. The
marginal propensity to consume is a nifty term that means the proportion of an additional income that a consumer spends on consumption. Spoiler alert: it's higher for those with lower incomes.
So, it's not that
you are a problem, it’s the system that lets companies pay wages so low that the rest of us have to pitch in for their employees’ basic needs. While we’re funding their worker-bees, the top brass is making honey like there’s no tomorrow.