Business columns: Yes, the rich save. That’s a good thing
Liberals, if they’re paying attention, will hate The Social Network, the new movie about the creation of Facebook, said John Tamny in Forbes.
Liberals, if they’re paying attention, will hate The Social Network, the new movie about the creation of Facebook, said John Tamny. The movie convincingly disproves liberal dogma that tax cuts for the rich do little to stimulate the economy (on the theory that the rich simply save the extra money). Profligate spenders, in the liberals’ topsy-turvy worldview, are more virtuous, because their consumption injects money into the economy, creating jobs and fresh demand. But The Social Network shows that “Facebook’s existence is the certain result of rich individuals who chose to delay their consumption, as opposed to spending current income on fancy cars and mansions.” One character in the film is a billionaire hedge-fund manager, Peter Thiel, who in 2004 invested $500,000 in Facebook to get it off the ground. Thanks to his “delayed consumption,” Facebook is creating “billions of dollars of wealth” in the economy. Remember that the next time a liberal condemns “the hoarding ways of the rich.”