Take 1 person that earns a million dollars a year in after tax dollars. Let’s assume that A dollars per year goes to lifestyle expenses and debt service, B dollars go to investments.
Compare that to 10 people that earn a hundred thousand dollars per year where X dollars go to lifestyle expenses and debt, and Y dollars go to investments.
Which has a greater economic effect? Presumably the single person making a millino dollars will have more of his income going to investments, and collectively, the 10 people making around 100k of after tax income will have more going towards consumption
But for the larger economy, what provides a larger overall economic boost and multiplier to the economy?
What is every dollar of consumption worth to an economy?
What is every dollar of investment worth?
Are those too broad and do we need to dive deeper, or can some general average number be used as a sort of center of mass and useful guide and metric for relative worth?